§  1.21001   Participation in competitive bidding for support.

   Link to an amendment published at  85 FR 75814 , Nov. 25, 2020.

   (a) Public Notice of the Application Process. The dates and procedures
   for submitting applications to participate in competitive bidding
   pursuant to this subpart shall be announced by public notice.

   (b) Application contents. Unless otherwise established by public
   notice, an applicant to participate in competitive bidding pursuant to
   this subpart shall provide the following information in an acceptable
   form:

   (1) The identity of the applicant, i.e., the party that seeks support,
   and the ownership information as set forth in § 1.2112(a);

   (2) The identities of up to three individuals authorized to make or
   withdraw a bid on behalf of the applicant. No person may serve as an
   authorized bidder for more than one auction applicant;

   (3) The identities of all real parties in interest to, and a brief
   description of, any agreements relating to the participation of the
   applicant in the competitive bidding;

   (4) Certification that the applicant has provided in its application a
   brief description of, and identified each party to, any partnerships,
   joint ventures, consortia or other agreements, arrangements or
   understandings of any kind relating to the applicant's participation in
   the competitive bidding and the support being sought, including any
   agreements that address or communicate directly or indirectly bids
   (including specific prices), bidding strategies (including the specific
   areas on which to bid or not to bid), or the post-auction market
   structure, to which the applicant, or any party that controls as
   defined in paragraph (d)(1) of this section or is controlled by the
   applicant, is a party;

   (5) Certification that the applicant (or any party that controls as
   defined in paragraph (d)(1) of this section or is controlled by the
   applicant) has not entered and will not enter into any partnerships,
   joint ventures, consortia or other agreements, arrangements, or
   understandings of any kind relating to the support to be sought that
   address or communicate, directly or indirectly, bidding at auction
   (including specific prices to be bid) or bidding strategies (including
   the specific areas on which to bid or not to bid for support), or
   post-auction market structure with any other applicant (or any party
   that controls or is controlled by another applicant);

   (6) Certification that if the applicant has ownership or other interest
   disclosed pursuant to paragraph (b)(1) of this section with respect to
   more than one application in a given auction, it will implement
   internal controls that preclude any individual acting on behalf of the
   applicant as defined in § 1.21002(a) from possessing information about
   the bids or bidding strategies (including post-auction market
   structure), of more than one party submitting an application for the
   auction or communicating such information with respect to a party
   submitting an application for the auction to anyone possessing such
   information regarding another party submitting an application for the
   auction;

   (7) Certification that the applicant has sole responsibility for
   investigating and evaluating all technical and marketplace factors that
   may have a bearing on the level of support it submits as a bid, and
   that if the applicant wins support, it will be able to build and
   operate facilities in accordance with the obligations applicable to the
   type of support it wins and the Commission's rules generally;

   (8) Certification that the applicant and all applicable parties have
   complied with and will continue to comply with § 1.21002;

   (9) Certification that the applicant is in compliance with all
   statutory and regulatory requirements for receiving the universal
   service support that the applicant seeks, or, if expressly allowed by
   the rules specific to a high-cost support mechanism, a certification
   that the applicant acknowledges that it must be in compliance with such
   requirements before being authorized to receive support;

   (10) Certification that the applicant will be subject to a default
   payment or a forfeiture in the event of an auction default and that the
   applicant will make any payment that may be required pursuant to
   § 1.21004;

   (11) Certification that the applicant is not delinquent on any debt
   owed to the Commission and that it is not delinquent on any non-tax
   debt owed to any Federal agency as of the deadline for submitting
   applications to participate in competitive bidding pursuant to this
   subpart, or that it will cure any such delinquency prior to the end of
   the application resubmission period established by public notice.

   (12) Certification that the individual submitting the application is
   authorized to do so on behalf of the applicant; and

   (13) Such additional information as may be required.

   (c) Limit on filing applications. In any auction, no individual or
   entity may file more than one application to participate in competitive
   bidding or have a controlling interest (as defined in paragraph (d)(1)
   of this section) in more than one application to participate in
   competitive bidding. In the case of a consortium, each member of the
   consortium shall be considered to have a controlling interest in the
   consortium. In the event that applications for an auction are filed by
   applicants with overlapping controlling interests, pursuant to
   paragraph (f)(3) of this section, both applications will be deemed
   incomplete and only one such applicant may be deemed qualified to bid.

   (d) Definitions. For purposes of the certifications required under
   paragraph (b) of this section and the limit on filing applications in
   paragraph (c) of this section:

   (1) The term controlling interest includes individuals or entities with
   positive or negative de jure or de facto control of the applicant. De
   jure control includes holding 50 percent or more of the voting stock of
   a corporation or holding a general partnership interest in a
   partnership. Ownership interests that are held indirectly by any party
   through one or more intervening corporations may be determined by
   successive multiplication of the ownership percentages for each link in
   the vertical ownership chain and application of the relevant
   attribution benchmark to the resulting product, except that if the
   ownership percentage for an interest in any link in the chain meets or
   exceeds 50 percent or represents actual control, it may be treated as
   if it were a 100 percent interest. De facto control is determined on a
   case-by-case basis. Examples of de facto control include constituting
   or appointing 50 percent or more of the board of directors or
   management committee; having authority to appoint, promote, demote, and
   fire senior executives that control the day-to-day activities of the
   support recipient; or playing an integral role in management decisions.
   In the case of a consortium, each member of the consortium shall be
   considered to have a controlling interest in the consortium.

   (2) The term consortium means an entity formed to apply as a single
   applicant to bid at auction pursuant to an agreement by two or more
   separate and distinct legal entities.

   (3) The term joint venture means a legally cognizable entity formed to
   apply as a single applicant to bid at auction pursuant to an agreement
   by two or more separate and distinct legal entities.

   (e) Financial Requirements for Participation. As a prerequisite to
   participating in competitive bidding, an applicant may be required to
   post a bond or place funds on deposit with the Commission in an amount
   based on the default payment or forfeiture that may be required
   pursuant to § 1.21004. The details of and deadline for posting such a
   bond or making such a deposit will be announced by public notice. No
   interest will be paid on any funds placed on deposit.

   (f) Application Processing. (1) Any timely submitted application will
   be reviewed by Commission staff for completeness and compliance with
   the Commission's rules. No untimely applications will be reviewed or
   considered.

   (2) Any application to participate in competitive bidding that does not
   identify the applicant or does not include all of the certifications
   required pursuant to this section is unacceptable for filing and cannot
   be corrected subsequent to the applicable deadline for submitting
   applications. The application will be deemed incomplete and the
   applicant will not be found qualified to bid.

   (3) If an individual or entity submits multiple applications in a
   single auction, or if entities that are commonly controlled by the same
   individual or same set of individuals submit more than one application
   in a single auction, then at most only one of such applications may be
   deemed complete, and the other such application(s) will be deemed
   incomplete, and such applicants will not be found qualified to bid.

   (4) An applicant will not be permitted to participate in competitive
   bidding if the applicant has not provided any bond or deposit of funds
   required pursuant to paragraph (e) of this section, as of the
   applicable deadline.

   (5) The Commission will provide applicants a limited opportunity to
   cure defects (except for failure to sign the application and to make
   all required certifications) during a resubmission period established
   by public notice and to resubmit a corrected application. During the
   resubmission period for curing defects, an application may be amended
   or modified to cure defects identified by the Commission or to make
   minor amendments or modifications. After the resubmission period has
   ended, an application may be amended or modified to make minor changes
   or correct minor errors in the application. An applicant may not make
   major modifications to its application after the initial filing
   deadline. An applicant will not be permitted to participate in
   competitive bidding if Commission staff determines that the application
   requires major modifications to be made after that deadline. Major
   modifications include, but are not limited to, any changes in the
   ownership of the applicant that constitute an assignment or transfer of
   control, or any changes in the identity of the applicant, or any
   changes in the required certifications. Minor amendments include, but
   are not limited to, the correction of typographical errors and other
   minor defects not identified as major. Minor modifications may be
   subject to a deadline established by public notice. An application will
   be considered to be newly filed if it is amended by a major amendment
   and may not be resubmitted after applicable filing deadlines.

   (6) An applicant that fails to cure the defects in their applications
   in a timely manner during the resubmission period as specified by
   public notice will have its application dismissed with no further
   opportunity for resubmission.

   (7) An applicant that is found qualified to participate in competitive
   bidding shall be identified in a public notice.

   (8) Applicants shall have a continuing obligation to make any
   amendments or modifications that are necessary to maintain the accuracy
   and completeness of information furnished in pending applications. Such
   amendments or modifications shall be made as promptly as possible, and
   in no case more than five business days after applicants become aware
   of the need to make any amendment or modification, or five business
   days after the reportable event occurs, whichever is later. An
   applicant's obligation to make such amendments or modifications to a
   pending application continues until they are made.

   [ 76 FR 73851 , Nov. 29, 2011, as amended at  81 FR 44448 , July 7, 2016;
    85 FR 75814 , Nov. 25, 2020]