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                                                           Before the
               Federal Communications Commission
                     Washington, DC  20554

In the Matter of                   )
                                   )
Federal-State Joint Board on       )    CC Docket No.  96-45
Universal Service                  )

                             order 

Adopted:  December 26, 2000             Released: December 27, 2000

By the Deputy Chief, Common Carrier Bureau:

1.     On November 1, 2000, the Bureau issued an Order which extended the September 30,
2000 deadline for implementation of non-recurring services by applicants for universal service
support for eligible schools and libraries who were unable, through no fault of their own, to
complete installation of non-recurring services by the deadline.  Specifically, we extended the
deadline to September 30, 2001 for those applicants: (1) whose Year Two funding commitment
letters were issued by the Universal Service Administrative Company (USAC or the
Administrator) on or after April 4, 2000; (2) who received service provider change authorizations
or service substitution authorizations from USAC on or after April 4, 2000; (3) whose service
providers were unable to complete implementation for reasons beyond the service provider's
control; or (4) who have had their funding disbursements delayed while USAC investigates their
application for program compliance.
2.     In prior Orders extending the deadline for implementation of non-recurring services
by eligible schools and libraries, the Bureau has also granted a limited waiver of the
Commission's competitive bidding requirements for the universal service support mechanism for
eligible schools and libraries, with respect to existing contracts for nonrecurring services.  We
clarify in this Order that the limited waiver of the Commission's competitive bidding rules that
we granted for Year 2 applicants in the May 2000 Extension Order shall also be extended to
applicants that meet the criteria of the November 2000 Extension Order, and are eligible for an
extension of the Year 2 deadline to September 30, 2001.  Applicants eligible for the extension,
therefore, may extend their existing contracts for non-recurring services voluntarily until
September 30, 2001, without having to comply with the Commission's competitive bidding
process. 
3.     ACCORDINGLY, IT IS ORDERED that, pursuant to section 4(i) of the
Communications Act of 1934, as amended, 47 U.S.C.  154(i) and sections 0.91, 0.291, and 1.3
of the Commission's rules, 47 C.F.R.  0.91, 0.291, and 1.3, this Order is ADOPTED.

                              FEDERAL COMMUNICATIONS COMMISSION
                              
                              
                              
                              Carol E. Mattey
                              Deputy Chief, Common Carrier Bureau