ATTACHMENT C - Round 8 - Required Information for Special Construction v1.1.docx

Attachment C Required Information for Special Construction for USAC Program Integrity Review This Attachment C illustrates the typical information that must be submitted to USAC for all E-rate funding requests for special construction. DoIT understands that proposers may feel that the information requested is confidential and proprietary. USAC has established procedures for submission of confidential information and DoIT will cooperatively alert successful proposers when USAC outreach has occurred, the content of the outreach, and mechanism to submit confidential information. Failure by the successful proposer to provide complete information to USAC and/or fully respond to USAC’s questions may lead to denial of funding and the cancellation of the associated contract for service.

The FCC’s Eligible Services List (https://www.usac.org/wp-content/uploads/e-rate/documents/resources/DA-25-1069A1.pdf) defines eligible special construction as “construction of network facilities, design and engineering, and project management.” Therefore, any non-recurring costs outside of this definition should be identified as other eligible non-recurring charges and not as special construction.

Checklist of Information to be Provided to USAC (Upon Request) – not all items will be universally applicable

1) Total Project Plant Route Feet

2) Average Cost per Foot of Outside Plant

3) Total Strands

4) Number of E-rate Eligible Strands

5) Detailed breakdown for the Special Construction Charges (see also Special Construction Cost Allocation Requirements at the end of this document)

a. Provide a Bill of Materials.

b. Identify and explain in detail the most expensive items on the construction invoice/bill of materials.

i. For example, if labor is the most expensive line item provide details such as the size of the labor crew, the number of hours of estimated work

ii. Was there a minimum number of hours for which the crew had to be hired that exceeded the labor hours required for the build

iii. Were there unique construction issues (e.g., a directional bore requirement because of rocky soil or a surface that could not be plowed; expensive make ready for pole attachments; bridge crossings; waterway crossings; railroad crossings; historic preservation issues or environmental issues) that caused the cost per foot to be inflated? If so, please provide a detailed explanation of these issues.

6) Fiber Route Maps Please provide a map file of the route being constructed. That mapped out route should be available in either a .kmz or .json file.

7) Latitude and Longitude of Fiber Route Start Points and Fiber Route End Points Please provide all of the details requested below of each route's endpoint within your fiber network that is being constructed.

Route Start Point

Route Endpoint

8) Plant Type and Plant Mix Percentages and Costs Please provide the information requested below for the whole project:

Plant Mix:

9) Plant Type and Plant Mix Details

a. Please indicate the cost per foot for the Aerial portion of the fiber build.

i. Please provide a further breakout of this cost:

ii. What is the average cost per foot for the Fiber Material? (E.g,. cost per foot of only the fiber cable.)

iii. What is the average cost per foot for the Fiber Placement? (E.g. cost of attaching only the fiber cables on to the poles.)

iv. What is the average cost per foot for the Structure Material (all outside plant materials except fiber cable this could include anchors, j-hooks or guywires)?

v. What is the average cost per foot of the Structure Placement (E.g., adding of new poles, anchor or guywires that will be owned by applicant)?

vi. What is the average cost per foot for the Pole Make Ready? (E.g., on carrier owned poles, any enhancement that needs to be done to accept new fiber such as addition of guy or anchor, or clearing of attachment points for new cable. This also includes the cost of placing new poles that will be owned by the pole owner.)

b. Please indicate the cost per foot for the Direct Buried portion of the fiber build.

i. Please provide a further breakout of this cost:

ii. What is the average cost per foot of the Fiber Material? (E.g., cost per foot of the fiber cable that will be directly placed into the ground (no conduit).

iii. What is the average cost per foot of the Fiber Cable Placement? (E.g., labor cost per foot of placing the fiber cables in to the ground.)

iv. What is the average cost per foot for the Buried Conduit (e.g., in direct bury installations conduit that is necessary for special portions of the builds such as railroad crossings, road crossings or in bores under waterways (rivers, creeks, streams, ponds))?

v. What is the average cost per foot of the Trenching (e.g., cost of digging trench, cost of machinery needed for trenching and any permitting cost to lay new fiber)?

c. Please indicate the cost per foot for the Buried with Conduit (Underground) portion of the fiber build.

i. Please provide a further breakout of this cost:

ii. What is the average cost per foot for the Fiber Material? (E.g., cost of the actual fiber cables that will be pulled through the conduit.)

iii. What is the average cost per foot for the Fiber Placement? (E.g., cost placing or pulling the fiber through the conduit.)

iv. What is the average cost per foot for the Structure Material (E.g., Cost of conduit, handholes, vaults, markers, etc.)?

v. What is the average cost per foot of the Structure Placement (E.g., labor and permitting for placement of all structure materials)?

10) Electronics Cost Detail (for lit fiber or managed solutions only)

Electronics Cost Detail

Please provide the cost of Material and Labor for Customer Premise Equipment (CPE) needed to light the fiber being built.

Please provide the cost of Material and Labor for Core Equipment needed to light the fiber being built.

If you are not seeking any E-rate funding for CPE or Core Equipment needed to light the fiber, please explain why.

11) Count of Remote Nodes

Count of Remote Nodes by Speed

In your network, how many facilities/service location will be provided a 1gbps or less circuit to your hub/demarc?

In your network, how many facilities/service locations will be provided at greater than 1gbps circuit to your hub/dermarc?

Node Count

12) Core/Host Node Detail

Core/Host Node Detail

At the network Hub, there is generally either a router or a switch to which the circuits from service locations/facilities connect.

Active Ports

On the equipment located at the Hub, how many ports are connecting a service location at the speed of 1gbps or less ?

On the equipment located at the Hub, how many ports are connecting a service location at the speed of greater than 1gbps but less than or equal to 10gbps?

13) Alternative Route Questions

a. Did you explore any alternative routes for the fiber build requested?

b. If yes, please provide the cost estimates and route specifics for these alternative routes explored.

c. If no alternatives were explored, please explain how the chosen route was identified as the most cost effective route.

14) Additional Eligibility Question(s)

Please answer all of the following questions and/or provide the documentation requested. For all documentation attached please identify which question it corresponds to.

Note 1: By “total number of fiber strands,” we mean the total number of strands installed as part of the special construction build, irrespective of whether the strands: (a) will be lit for the applicant’s use or a potential other purpose; (b) will be lit this funding year or a future funding year; (c) have been cost-allocated out of the funding request; or (d) were not included in the one-time charges quoted to the applicant for the special construction project in the first instance.

Note: Please state whether multiple recipients of service are located in one building and will be served by the same set of fiber strands.

If the lit date is currently unknown, please state “unknown,” and proceed to Question 3. Note that you will be asked to demonstrate compliance with the obligation to light the fiber by the end of the funding year (i.e., June 30), when invoices for this FRN are submitted to USAC for reimbursement.

· If the date entered above is on or before June 30, 2028, proceed to Question 3.

· If the date entered above is after June 30, 2028, proceed to Question 2(c).

If yes, proceed to Question 2(d).

If no, proceed to Question 3.

|_| Yes

|_| No

|_| N/A (lit date on or before June 30, 2028).

Please provide an explanation of the unavoidable delay that is preventing special construction from being completed in time to light the fiber by the end of the funding year (i.e., June 30). Please include a description of any intervening events (e.g., an unusual weather events), relevant facts about the complexity of the fiber build, and any other factors you would like USAC to consider.

Then proceed to Question 3.

If the response to this question is zero (0), you may disregard the remaining questions in this document. Otherwise, proceed to Question 4.

If yes, proceed to Question 4(a).

If no, proceed to Question 6.

|_| Yes |_| No

If yes, proceed to Question 4(b).

If no, proceed to Question 7.

|_| Yes |_| No

If yes, proceed to Question 4(c).

If no, proceed to Question 5.

|_| Yes |_| No

After doing so, you may disregard the remaining questions in this document. You may be contacted in a separate communication regarding your responses to these questions.

Because the above-referenced cost-allocation was not included in your funding request, the amount of the funding request will need to be adjusted. Please provide the information requested by Questions 5(a)-(c). If you do not have the information requested in Questions 5(a)-(c), contact the service provider to obtain it.

After providing the requested information, you may disregard the remaining questions in this document. You may be contacted in a separate communication regarding your responses to these questions.

Will the Excess Fiber Strands be installed as part of the special construction project solely because using a cable with a higher strand count than what will be lit for the applicant’s use within this funding year has been deemed to be more cost effective than installing just the number of strands that will be lit for the applicant’s use within this funding year?

If yes, proceed to Question 6(a).

If no, proceed to Question 7.

|_| Yes |_| No

Proceed to Question 6(b).

If yes, you may disregard the remaining questions in this document. You may be contacted in a separate communication regarding your responses to these questions.

If no, proceed to Question 7.

Note: Please answer Question 6(b) irrespective of whether the Excess Fiber Strands: (a) would be lit this funding year or a future year by the applicant or any entity other than the applicant; (b) have been cost-allocated out of the funding request; or (c) were not included in the one-time charges quoted to the applicant for the special construction project and stated in the FRN.

|_| Yes |_| No

· The Excess Fiber Strands will not be installed for the applicant’s exclusive future use;

· The Excess Fiber Strands will be installed for the applicant’s exclusive future use, but will not remain dormant (dark) until the fiber is used by the applicant in a future year;

· The Excess Fiber Strands will not be installed solely because installation of a higher strand count than what will be lit for the applicant’s use this funding year has been deemed to be the most cost-effective option; or

· The Excess Fiber Strands will be installed solely because installation of a higher strand count than what will be lit for the applicant’s use this funding year has been deemed to be the most cost-effective option, but the Excess Fiber Strands will not remain dormant (dark) until they are used by the applicant in a future year.

Please provide the information requested by Questions 7(a)-(d).

Note: Answers to these questions are required irrespective of whether the Excess Fiber Strands: (a) would be lit this funding year or a future year; (b) have been cost-allocated out of the funding request; or (c) were not included in the one-time charges quoted to the applicant for the special construction project and stated in the FRN.

Note: This question does not seek information about the ultimate end-users of fiber strands. For example, if a leased lit fiber or leased dark fiber provider intends to use the Excess Fiber Strands to serve other customers, the answer to this question would be the name of the service provider. If a municipality plans to use Excess Fiber Strands installed as part of a self-provisioned network to serve other community institutions, the answer to this question would be the name of the municipal entity.

If the lit date for the Excess Fiber Strands is unknown, please state “unknown.”

If so, please describe the compensation that the applicant will receive.

Proceed to Question 8.

Then proceed to Question 9.

Then proceed to Question 9.

Special Construction Cost Allocation Requirements Special Construction responses are subject to the following provisions:

If the provider wishes to place extra strands in the build (strands beyond those that will be for the applicant’s current or future use), the applicant is required to cost allocate all incremental costs associated with the extra strands from the special construction request for E-Rate support. It is not a pro-rata share but an incremental cost calculation that must be backed by detailed documentation.

The provider proposing a solution that includes any variation of the special construction conditions noted below will be responsible for 100% of the identified incremental costs.

For example.

A service provider wins a bid to provide a leased lit fiber WAN or Last Mile solution to the applicant Consortium Member that includes Special Construction. The provider decides to install a fiber with more strands than what is necessary to provide the bandwidth requested.

In order to maintain compliance with the very strict FCC rules and USAC’s review procedures, the applicant must make certain the following costs are identified and cost allocated (using a presumption that the proposed bandwidth only requires 2 strands of fiber):

· The cost difference between a 2-strand cable (what is necessary for the applicant’s solution) and what the provider is actually installing.

· If a larger conduit is required to encase the fiber containing the additional strands, the incremental cost per foot of the conduit must be cost allocated.

· If incremental labor is required to pull and terminate the additional strands (if all are brought to a patch panel at the applicant location) that cost must be cost allocated.

· If a larger patch panel is required - the incremental cost between a patch panel needed to terminate the number of strands necessary for the applicant’s solution per location and one to terminate the additional strands per location must be cost allocated.

· If extra splicing work is done along the path for the additional strands this cost must be identified and cost allocated.

· Any other incremental cost must be identified and cost allocated.

· This includes cost related to project management, engineering, and design that are added to the project because of the added strand count.