US:PA-4: The Black Hole: Existing Contracts
The Black Hole: Existing Contracts
Debra Kriete (dkriete@epix.net)
Fri, 10 Oct 1997 10:40:38 -0700
The discussion on the issue of the treatment of pre-existing contracts
is accurate; the issue is under active consideration pursuant to
Petitions for Reconsideration filed at the FCC.
This is what I know and understand about the issue:
1. If a contract is signed prior to November 8, 1996, there is no
question or doubt that the services are eligible for discount (assuming
that the contract addresses covered services under the FCC rules).
there is no restriction on the qualification of these contracts for
discounts.
2. If the contract was signed after November 8, but prior to when the
program becomes operational, then according to the FCC's July 10, 1997
Order on Reconsideration, the FCC stated that the contract would be
eligible for discounts only if the contract expired on December 31,
1998. The FCC subsequently clarified that even if the contract was
executed after November 8, 1996 and expires after December 31, 1998,
then the services for the period January 1, 1998 through December 31,
1998 would nevertheless be eligible for discounts.
The questions that have arisen are numerous: what if a school or
library executed the multi year contract prior to July 10, 1997 when the
FCC's order on reconsideration was issued? Why should there be a
limitation at all (12/31/98 limitation) on "pre-existing contracts"?
These are issues that the FCC is trying to resolve as we speak.
3. If the contract is executed after July 18, 1998 and prior to the time
that the program becomes operational (a date which will be publicly
announced by the FCC on its website), then the competitive bid
requirements do not yet apply.