§ 54.636   Eligible participant-constructed and owned network facilities for
consortium applicants.

   (a) Subject to the funding limitations under § § 54.675 and 54.638 and
   the following restrictions, consortium applicants may receive support
   for network facilities that will be constructed and owned by the
   consortium (if the consortium is an eligible health care provider) or
   eligible health care providers within the consortium.

   (1) Consortia seeking support to construct and own network facilities
   are required to solicit bids for both:

   (i) Services provided over third-party networks; and

   (ii) Construction of participant-owned network facilities, in the same
   request for proposals. Requests for proposals must provide sufficient
   detail so that cost-effectiveness can be evaluated over the useful life
   of the proposed network facility to be constructed.

   (2) Support for participant-constructed and owned network facilities is
   only available where the consortium demonstrates that constructing its
   own network facilities is the most cost-effective option after
   competitive bidding, pursuant to § 54.642.

   (b) [Reserved]

   [ 78 FR 13987 , Mar. 1, 2013]

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