Transcript PowerPoint Template - Forms (CDE Intranet)

TOM TORLAKSON
State Superintendent
of Public Instruction
E-rate for California
Intermediate/Advanced
Applicants
Intermediate/Advanced Presentation I 2012 California Department of Education
1
Agenda
TOM TORLAKSON
State Superintendent
of Public Instruction
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Role of CDE and State Library
E-rate Technology Planning
Discount Calculations
Eligible Services (interconnected VOIP)
FCC Form 470
Competitive Bidding
FCC Form 471
Myths & Misconceptions- CIPA
Gifting Rules
Form 500
Audits
CALNET 3
Appendices
A. California Teleconnect Fund (CTF)
B. Discount Calculations
C. Eligible Services
D. Invoice Reconciliation
Intermediate/Advanced Presentation I 2012 California Department of Education
2
General Information about E-rate
The role of CA Dept of Ed and State Library
TOM TORLAKSON
State Superintendent
of Public Instruction
 CDE & State Library have no statutory authority
to administer the federal E-rate program
 CDE & State Library only provide general
information about the E-rate program including:
training and outreach, reference materials, and
other publicly available SLD/USAC resources
Intermediate/Advanced Presentation I 2012 California Department of Education
3
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
E-rate Technology
Planning
Intermediate/Advanced Presentation I 2012 California Department of Education
4
E-rate Process
Technology Planning
TOM TORLAKSON
State Superintendent
of Public Instruction
FCC Form 470 & RNL
Competitive Bidding
FCC Form 471 & RAL
Application Review & FCDL
FCC Form 486
FCC Forms 472 (BEAR) & 474 (SPI)
Intermediate/Advanced Presentation I 2012 California Department of Education
5
Technology Plan Review
1.
FCC rules require an “approved” technology plan when receiving E-rate discounts
for priority 2 services.
2.
Find your public charter, district or COE Tech Plan status at:
http://www.cde.ca.gov/ls/et/rs/ap/county.asp
3.
Tech Plan must be “written” prior to posting Form 470.
4.
DOCUMENT the existence of this “Written Plan” – i.e., Letter/E-mail from Cabinet,
screen print of file name and date, and physical copy of plan.
5.
Must cover all 12 months of the funding year (July 1 – June 30).
6.
E-rate only plans should not cover more than 3 years; EETT tech plans that meet Erate requirements can cover 5 years with progress review during 3 rd year.
7.
Tech plans must include all services (both current and future) for which E-rate
discounts are sought.
8.
Must be approved by a “Certified Technology Plan Approver”
See the Technology Plan approver locator tool on the USAC website:
http://www.sl.universalservice.org/reference/tech/default.asp
10.
Leverage the technology expertise of your CTAP regional assistance: CTAP:
http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
6
4 Required Elements of a
Technology Plan Used for E-rate
1.
Clear statement of goals and realistic strategy for using
telecommunications and information technology to improve
education or library services.
2.
Professional Development strategy to ensure staff understands
how to use technologies to improve education or library services
3.
Needs Assessment of telecommunication services, hardware,
software, and other services that will be needed to improve
education/library services
Evaluation process to monitor progress towards goals and allows
for mid-course corrections in response to new developments as they
arise
TOM TORLAKSON
State Superintendent
of Public Instruction
4.
Budget: No longer required in the tech plan but USAC will likely request
this information during PIA or other application reviews. Best practice
would be to put a budget with appropriate fund sources highlighted in
your E-rate related documentation files.
Intermediate/Advanced Presentation I 2012 California Department of Education
7
Technology Planning
EETT Tech Plan Cycle Dates
TOM TORLAKSON
State Superintendent
of Public Instruction
•
The technology plans may be submitted for
approval anytime but no later than:
1. Cycle A: November 30, 2012
2. Cycle B: May 31, 2013
Intermediate/Advanced Presentation I 2012 California Department of Education
8
Technology Planning
“Must Do” Reminders
1.
Must be “Written” prior to posting Form 470:
– It must be documented that it is written before the posting of the form 470!
(Applicant must document the existence of this plan, i.e., e-mail with plan
attached, memo from cabinet level about the plan being written, including
the date. “DATE STAMP.” )
2.
Must include a sufficient level of detail and cover all services (priority 2) for
which E-rate discounts are being sought on the Form 470(s) and subsequent
Form 471(s).
3.
Must be approved by the start of services (July 1) or the filing of Form 486,
whichever is earlier
4.
E-rate only plans must be approved by a “USAC Certified Technology Plan
Approver” see USAC link:
http://www.sl.universalservice.org/reference/tech/default.asp
5.
Tech plans must be submitted to your CTAP region for approval:
http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp
6.
Must include all four required elements (as noted previously) regardless of the
type of plan being used (E-rate only or Long Form tech plan)
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
9
Technology Planning
Additional reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• Service Providers may not act as technology
plan approvers, write/create, or assist in the tech
plan in any capacity
• Remember to include in your tech plan all the
services that you apply for on Form 470/471,
required for priority 2 - internal connections, and
basic maintenance
Intermediate/Advanced Presentation I 2012 California Department of Education
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Technology Planning
Help
TOM TORLAKSON
• CDE/E-rate: Larry Hiuga,
[email protected], 916-327-4629
State Superintendent
of Public Instruction
• CDE/Tech Plans: Doris Stephen,
[email protected], 916-324-9943
• CTAP:
http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp
• CTAP Tech Plan Builder:
http://myctap.org/index.php/techplan/tpb
• Libraries: Rushton Brandis,
[email protected] , 916-653-5471
Intermediate/Advanced Presentation I 2012 California Department of Education
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Questions?
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
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TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
Discounts
Intermediate/Advanced Presentation I 2012 California Department of Education
13
Discounts
General information
TOM TORLAKSON
State Superintendent
of Public Instruction
• How large are the discounts on eligible
products and services?
– Discounts are 20-90 percent of eligible costs
– Discount level for a school or library depends on:
•
Percentage of students who are eligible for
National School Lunch Program (NSLP) in
– (for a school) the school
– (for a library) the school district in which the library
is located
•
Urban or rural location of the school or library
Intermediate/Advanced Presentation I 2012 California Department of Education
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Discounts
Discount Matrix
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
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Discounts – sample report
CNIPS
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
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Discounts – sample report
CARS
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
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Calculating Your Discount
Schools/School Districts
TOM TORLAKSON
State Superintendent
of Public Instruction
• Calculate the discount rate for each individual
school
• School District average = weighted average of
the schools
• Multiply E-rate discount by total student population
of the school to get weighted product
• Add all weighted products and divide by total
students in school district
• Raw data files located at:
– http://www.cde.ca.gov/ds/sh/cw/filesafdc.asp
Intermediate/Advanced Presentation I 2012 California Department of Education
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Calculating Your Discount
Individual Libraries
TOM TORLAKSON
State Superintendent
of Public Instruction
• Calculate the total percentage of students
eligible for NSLP in the school district in which
the building is located
• Use the urban/rural status of the county or
census tract in which the library outlet is located
Library Systems
• Calculate the E-rate discount for each library
outlet
• Calculate the simple average of the library outlets
– Add discounts for each outlet and divide by
total number of outlets
Intermediate/Advanced Presentation I 2012 California Department of Education
19
Calculating Your Discount
Non-Instructional Facilities (NIFs)
TOM TORLAKSON
State Superintendent
of Public Instruction
• NIFs on the campus of single school/library and that
serve only that entity, get the discount of that
school/library Separate entity number necessary only
if public right-of-way is crossed
• NIFs that serve multiple schools/libraries, and
without classrooms or public areas, get shared
discount (aka weighted average) for the school
district/library system
• NIFs that serve multiple schools and with classrooms
use the snapshot method to get discount
– Snapshot method: Choose a specific day and determine
the NSLP eligibility of the student population that is in
class on that day
Intermediate/Advanced Presentation I 2012 California Department of Education
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Calculating Your Discount
New School Construction
TOM TORLAKSON
State Superintendent
of Public Instruction
• School under construction
– Population is known = use that data
– Population is unknown = use district shared
discount
• Library under construction
– Same as regular individual library outlet
• Private/Charter Schools
– Population is known: use that data
– Population is unknown: apply for 20% but can
amend with actual figures if obtained later
Intermediate/Advanced Presentation I 2012 California Department of Education
21
National School Lunch Program
Provisions 1, 2, and 3
TOM TORLAKSON
State Superintendent
of Public Instruction
• Allow for socio-economic survey to be used
to establish reimbursement rate and reduce
paperwork for schools
• Applicant uses approved NSLP eligibility
percentage to calculate discount rate
• Schools submit base-year documentation to
support discount rate
• If extension is granted, applicants can
submit extension approval letter to support
discount rate
Intermediate/Advanced Presentation I 2012 California Department of Education
22
Head Start
TOM TORLAKSON
State Superintendent
of Public Instruction
National School Lunch
Program
• All Head Start students meet free lunch
guidelines under NSLP
• Head Start entities automatically qualify for
90% discount
– Home based Head Start is not eligible
– Early Head Start (EHS) is not eligible
• If facility is shared with Head Start
students and Early Head Start students a
cost allocation must be done to account
for the ineligible students
Intermediate/Advanced Presentation I 2012 California Department of Education
23
Validation Letter Process
TOM TORLAKSON
State Superintendent
of Public Instruction
If USAC’s PIA Reviewer Questions Entity
and/or Discount %, Request Validation
Letter from CDE
• Follow instructions for the creation of certification letter
from entity
(http://www.k12hsn.org/files/erate/training_material/2012/Entity_and
_Discount_Validation_Template.doc
• http://www.k12hsn.org/programs/erate/training_materials.php
• Send E-mail certification letter(using template with
completed information from the above web link) and USAC
PIA review e-mail to [email protected] for validation
• Validation e-mail from CDE will be created and sent to
USAC within 48 hours if not sooner.
Intermediate/Advanced Presentation I 2012 California Department of Education
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Questions?
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
25
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Eligible Services
List (ESL)
Intermediate/Advanced Presentation I 2012 California Department of Education
26
Eligible Services
Categories of Service
TOM TORLAKSON
State Superintendent
of Public Instruction
• Priority 1 (P1): funded first
– Telecommunications Services
– Internet Access
– Telecommunications
• Priority 2 (P2): funding starts with neediest
applicants
– Internal Connections
– Basic Maintenance of Internal Connections
Intermediate/Advanced Presentation I 2012 California Department of Education
27
Eligible Services
Areas of Review
TOM TORLAKSON
State Superintendent
of Public Instruction
• Eligible Services List (ESL) Order
– Format changes for Priority One services
– Reduced burdens for the FCC Form 470
• Priority One (P1)
• Priority Two (P2)
• Miscellaneous
• Dark fiber
• Equipment transfers, disposals, and trade-ins
Intermediate/Advanced Presentation I 2012 California Department of Education
28
Eligible Services List Order
Overview
TOM TORLAKSON
State Superintendent
of Public Instruction
• No changes to overall eligibility of products
and services
• Format changes to the ESL
– Priority One services are consolidated into
one list
– New information about service category
selection for Priority One services on FCC
Form 470
Intermediate/Advanced Presentation I 2012 California Department of Education
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Eligible Services List Order
TOM TORLAKSON
FY 2012 ESL - Consolidated List of P1
Services
State Superintendent
of Public Instruction
•
Priority One services are no longer separated by
regulatory category (Telecommunications Services,
Telecommunications, and Internet Access)
– Consolidation is to make ESL more user-friendly
•
There are no changes to FCC rules and
requirements
– Consolidated list includes services that can be
requested as Telecom Services or Internet Access on
the FCC Form 471 (e.g., voice mail, interconnected
VoIP, fiber) depending on the type of service provider
Intermediate/Advanced Presentation I 2012 California Department of Education
30
Eligible Services List Order
ESL Order – Other highlights
TOM TORLAKSON
State Superintendent
of Public Instruction
• FCC Form 470 Guidance
– Sufficient for applicants to check off one
Priority One service category (Telecom
Services or Internet Access)
• Description of the services requested or
RFP must contain enough detail for
service providers to identify services and
formulate bids (no change from current
requirement)
• Service providers should review entire
Priority One section
Intermediate/Advanced Presentation I 2012 California Department of Education
31
Eligible Services List Order
ESL Order – Other highlights
TOM TORLAKSON
State Superintendent
of Public Instruction
• FCC Form 471 Guidance
– Applicants must continue to select the correct
category of service on the FCC Form 471 for
regulatory purposes such as:
• Telecom Services must be provided by eligible
telecom carriers
• Requests for Internet Access must be CIPA
compliant
– Once an applicant has selected a vendor, they
may consult with the vendor to determine which
service category to check in Block 5 of the FCC
Form 471
Intermediate/Advanced Presentation I 2012 California Department of Education
32
Eligible Services
TOM TORLAKSON
State Superintendent
of Public Instruction
Priority One
Intermediate/Advanced Presentation I 2012 California Department of Education
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Priority One
Telecommunications Services
TOM TORLAKSON
State Superintendent
of Public Instruction
– Local and long distance service
– Cellular
– Digital Transmission Services
•
•
•
•
DSL
T1, DS1, DS3
Satellite
PRI
– For more details refer to Beginners Presentation at
http://www.k12hsn.org/programs/erate/training_materials.php
Intermediate/Advanced Presentation I 2012 California Department of Education
34
Priority One
Not Eligible as Telecom Services
TOM TORLAKSON
State Superintendent
of Public Instruction
• Broadcast “Blast” messaging
• Monitoring services for 911, E911 or alarm
telephone lines
• Services to ineligible locations
• End-user devices
– Cell phones, tablet devices, netbooks
and computers
Intermediate/Advanced Presentation I 2012 California Department of Education
35
Priority One
Internet Access (IA)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Support for IA includes charges to access the
Internet and costs for the conduit to the Internet
• For wireless IA make the distinction if this is
cellular (i.e. mobile) or not and if it is on campus
only.
• Other eligible Internet Access services include:
– E-mail service
– Wireless Internet access
– Interconnected VoIP
– Web hosting
Intermediate/Advanced Presentation I 2012 California Department of Education
36
Priority One
Not Eligible as Internet Access
TOM TORLAKSON
State Superintendent
of Public Instruction
• Costs for Internet content
– Subscription services such as monthly
charges for on-line magazine
subscriptions
• Internet2 membership dues
• Website creation fees
• Web-based curriculum software
• Software, services or systems used to
create or edit Internet content
• Off campus use of wireless IA is not eligible
Intermediate/Advanced Presentation I 2012 California Department of Education
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Eligible Services
TOM TORLAKSON
State Superintendent
of Public Instruction
Priority Two
Intermediate/Advanced Presentation I 2012 California Department of Education
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Priority Two
Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
• Support for equipment and cabling onsite that
transport info to classrooms or public rooms of
a library
• Subject to the Two-in-Five Rule
– Entities can only receive funding every two
out of five years
Intermediate/Advanced Presentation I 2012 California Department of Education
39
Priority Two
Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
40
Priority Two
TOM TORLAKSON
State Superintendent
of Public Instruction
Basic Maintenance of Internal Connections
(BMIC)
• Support for basic maintenance of eligible
internal connections
• Such as:
– Repair and upkeep of hardware
– Wire and cable maintenance
– Basic tech support
– Configuration changes
Intermediate/Advanced Presentation I 2012 California Department of Education
41
Priority Two
Basic Maintenance of Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
• Agreements or contracts must state the
eligible components covered, make, model,
and location
• Service must be delivered between July 1June 30
• Two-in-Five Rule does not apply to BMIC
Intermediate/Advanced Presentation I 2012 California Department of Education
42
Priority Two
BMIC Updated Guidance
TOM TORLAKSON
State Superintendent
of Public Instruction
• Standard manufacturer warranties of no
more than three years remain eligible
– If there is a cost associated with the
warranty, then the warranty is not
eligible
• Support for BMIC is limited to actual work
performed under the contract
Intermediate/Advanced Presentation I 2012 California Department of Education
43
Priority Two
BMIC Updated Guidance
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicants may make estimates based on:
– Hours per year of maintenance
– History of needed repairs and upkeep
and
– Age of eligible internal connections
• Applicants using the factors listed above
must submit a bona fide request
• It is not reasonable to estimate an amount
that would cover the full cost of every piece
of eligible equipment
Intermediate/Advanced Presentation I 2012 California Department of Education
44
Priority Two
BMIC Updated Guidance
TOM TORLAKSON
State Superintendent
of Public Instruction
• Flat rate contracts may be eligible however,
applicants may only invoice for services
actually delivered/work performed
• Exceptions that will not require
demonstration that work was performed are:
– Software upgrades and patches
– Bug fixes and security patches and
– Online and telephone based technical
support
Intermediate/Advanced Presentation I 2012 California Department of Education
45
Eligible Services
Open Items for USAC/FCC
TOM TORLAKSON
State Superintendent
of Public Instruction
Are free VoIP handsets permissible if provided to all
customers?
• –DA 10-2355 states, “For example, many cell phones are
free or available to the general public at a discounted
price with the purchase of a two-year service contract.
Schools and libraries are free to take advantage of these
deals, without cost allocation, but cannot accept other
equipment with service arrangements that are not
otherwise available to some segment of the public or
class of users.”
•
FCC still determining eligibility of handsets.
– Case by case basis
Intermediate/Advanced Presentation I 2012 California Department of Education
46
Eligible Services
Open Items for USAC/FCC
TOM TORLAKSON
State Superintendent
of Public Instruction
•
Cloud Services:
– You may see CLOUD type services being offered as
part of a web hosting (bundled internet), etc. At USAC
training in LA, CLOUD services was stated as being
ineligible in general. There was no specific official
guidance at this point. USAC will work with FCC for
an official position
Intermediate/Advanced Presentation I 2012 California Department of Education
47
Eligible Services
•
•
TOM TORLAKSON
State Superintendent
of Public Instruction
•
•
•
•
•
-Ineligible charges related to web hosting
Costs attributable to the creation or modification of information, or
design such as a web site creation fee or content maintenance fees.
Content supplied as part of a web hosting service created by third-party
vendors or the web hosting service provider itself and any features or
software involving data input or
Retrieval other than the provision of applicant-created content for an
educational purpose (e.g. teacher web pages or blogs).
The parts of a web hosting service including, but not limited to, any
portion of tools, capabilities or integration with other systems such as:
Student Information Systems (SIS);
Databases; student attendance or grades or grade management;
course scheduling; tests or testing systems; on-line/interactive
education systems; and learning/education
Management systems. (An eligible web hosting service will also not
include support for the applications necessary to run online classes or
collaborative meetings).
Intermediate/Advanced Presentation I 2012 California Department of Education
48
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
FCC Form 470
Intermediate/Advanced Presentation I 2012 California Department of Education
49
FCC Form 470
Form Summary
TOM TORLAKSON
State Superintendent
of Public Instruction
• Indicates the services and categories of
service which entities are seeking.
• Must be based on tech plan for Priority 2
services.
• Must be posted for at least 28 days.
• Indicates if you are planning/have issued an
RFP.
• Indicates any special requirements and/or
disqualification factors.
• Indicates who will be receiving the services.
Intermediate/Advanced Presentation I 2012 California Department of Education
50
FCC Form 470
Request for Proposal (RFP)
TOM TORLAKSON
State Superintendent
of Public Instruction
• FCC rules refer to RFPs generically, but they may
have a variety of names (Request for Quotes, Scope,
or Statement of Work).
• FCC rules do not require RFPs, but state and local
procurement rules may.
• Must be based on entities’ tech plan (if Priority 2
services).
• Must be available to bidders for at least 28 days
– Applicants must count 28 calendar days from whichever
document (FCC Form 470 or RFP) was posted or
available last
• Example: RFP posted on December 1, Form FCC 470
posted on December 15, December 15 starts the 28-day
clock.
Intermediate/Advanced Presentation I 2012 California Department of Education
51
FCC Form 470
FCC Form 470 and RFP issues
TOM TORLAKSON
State Superintendent
of Public Instruction
• Provide sufficient detail on FCC Form 470
for the desired products/services.
– Cannot provide generic descriptions (e.g., all
eligible telecom services, Digital Transmission
Services).
– Cannot provide laundry lists of products and
services.
• Significant change(s) made to RFP after its release
may require the 28 day bidding period to re-start.
Intermediate/Advanced Presentation I 2012 California Department of Education
52
FCC Form 470
Beware of KILLER GOTCHA’S
TOM TORLAKSON
State Superintendent
of Public Instruction
• Indicated you would not have an RFP and
yet you released one, or the reverse.
• Forgot to add one or more services on the
Form 470.
• Did not allow sufficient time for Form 470
and/or RFP to be posted for 28 days.
– Added detail to RFP that caused 28 day
period to re-start.
Intermediate/Advanced Presentation I 2012 California Department of Education
53
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Competitive Bidding
Intermediate/Advanced Presentation I 2012 California Department of Education
54
Competitive Bidding
Basics
TOM TORLAKSON
State Superintendent
of Public Instruction
• You must ensure that the competitive
bidding process is open and fair.
– You must keep all incoming
bids/correspondence with bidders and
– Evaluate bids equally
– All potential bidders have access to the
information from your FCC Form 470 and
RFP (if you filed one), and they can respond
to your requests.
Intermediate/Advanced Presentation I 2012 California Department of Education
55
Competitive Bidding
Basics
TOM TORLAKSON
State Superintendent
of Public Instruction
• Avoid conflicts of interests
• Independent Consultant vs. Service Provider
• Applicant vs. Service Provider
• Follow and UNDERSTAND the rules – FCC,
State and local
• Board Policy
• California Public Contract Code
• Bid Limits/Thresholds:
http://www.cde.ca.gov/fg/ac/co/bidthreshold2011.asp
• Master Contracts
• Document the process!!!
Intermediate/Advanced Presentation I 2012 California Department of Education
56
Competitive Bidding
NEW REQUIREMENT FOR FY2013
TOM TORLAKSON
State Superintendent
of Public Instruction
– Commission’s competitive bidding rules
prohibit applicants from including a
particular manufacturer’s name, brand,
product or service in an FCC Form 470
or request for proposals (RFPs) unless
they also use the words “or equivalent” in
such a description.
• “XYZ manufacturer's high-speed router
model 345J or equivalent” meets new
requirement.
Intermediate/Advanced Presentation I 2012 California Department of Education
57
Competitive Bidding
Applicants Cannot
TOM TORLAKSON
State Superintendent
of Public Instruction
• Have a relationship with service providers
that would unfairly influence the outcome of
the competition
• Furnish service providers with inside
competitive information
• Have ownership interest in a service
provider’s company competing for services
• Violate gifts rules
Intermediate/Advanced Presentation I 2012 California Department of Education
58
Competitive Bidding
Applicants CAN
TOM TORLAKSON
State Superintendent
of Public Instruction
• Have pre-bidding discussions with potential
bidders as long as that doesn’t lead to one
bidder having “inside” information
• Attend product demonstrations
• Encourage and seek vendors to bid
• Do research to determine what costeffective solutions are available
Intermediate/Advanced Presentation I 2012 California Department of Education
59
Competitive Bidding
Service Providers cannot
TOM TORLAKSON
State Superintendent
of Public Instruction
• Determine the types of service the applicant
will seek on a FCC Form 470/RFP
• Prepare, assist applicants with filling out the
FCC Form 470/RFP
• Sign, certify and/or submit FCC Form 470
• Assist or run the competitive bidding
process for the applicant, which includes
preparing or conducting the bid evaluation
and selection process.
Intermediate/Advanced Presentation I 2012 California Department of Education
60
Competitive Bidding
Service Providers CAN
TOM TORLAKSON
State Superintendent
of Public Instruction
• Ask clarifying questions when bids or
descriptions are vague or generic or if more
information is needed in order for the
service provider to effectively respond to
Form 470 and/or RFP
Intermediate/Advanced Presentation I 2012 California Department of Education
61
Competitive Bidding
Bid Evaluation
TOM TORLAKSON
State Superintendent
of Public Instruction
• Vendor selection criteria should be posted with
the RFP
• Vendor evaluation begins after 28 day waiting
period
• Follow your vendor selection criteria
• Price of the eligible goods and services must be
primary factor overall (the most cost-effective)
• Other factors, including other price factors, can
be considered as well but they cannot be
weighted equally or higher than cost of the
eligible goods and services
Intermediate/Advanced Presentation I 2012 California Department of Education
62
Competitive Bidding
Sample Evaluation Matrix
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
63
Competitive Bidding
AVOID Sham Bidding
TOM TORLAKSON
State Superintendent
of Public Instruction
• “I want to stay with my incumbent”
• Must respond to all legitimate inquiries
– Bidders can’t just send spam, but you have to talk to
bidders, too
– Providers that are being stonewalled may contact
USAC for assistance
• Cost to transfer to another provider alone is not by
itself a good enough reason to stay with incumbent
• Avoid appearances of a “done deal”
• Don’t post for something you don’t want
• If plans change, have a plan to communicate with
potential bidders
Intermediate/Advanced Presentation I 2012 California Department of Education
64
Competitive Bidding
Reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• Solution must be cost-effective
• An existing contract can be used as a bid
response to your posted FCC Form 470
– Post 470, evaluate all bids & existing contract,
memorialize your decision if existing contract is
selected
• No bids or one bid (email yourself noting the
fact)
• Retain all vendor selection documentation
– Winning and losing bids, correspondences,
memos, bid evaluation documents, etc.
Intermediate/Advanced Presentation I 2012 California Department of Education
65
Competitive Bidding
Choosing a service provider
TOM TORLAKSON
State Superintendent
of Public Instruction
• After you close the competitive bidding
process for your services (on or after the
ACD), you can:
– Evaluate bids received
– Choose your service provider(s)
– Sign a contract
– Submit an FCC Form 471
Intermediate/Advanced Presentation I 2012 California Department of Education
66
Competitive Bidding
Choosing a service provider
TOM TORLAKSON
State Superintendent
of Public Instruction
1. Must be signed AFTER 28 days have elapsed
but BEFORE you file your Form 471
2. READ AND UNDERSTAND THE FINE
PRINT!
3. Allow enough time to take contracts to Board
for approval (if required by Board policy)
Intermediate/Advanced Presentation I 2012 California Department of Education
67
State Master Contracts
and E-rate
TOM TORLAKSON
State Superintendent
of Public Instruction
• Master Contracts, Multiple Awards Schedules,
and Piggyback Contracts may be used but do
not preclude FCC bidding requirements
• Make sure Board policy is followed when using
master contracts
• Applicant must still post a Form 470 and
conduct a 28-day competitive bidding process
• Form 470 must indicate that vendors must be
master contract holders in order to respond
• All other federal requirements must be met (28days, most cost effective bid, etc…)
• If one vendor holding a master contract is
encouraged to bid, ALL vendors holding the
master contract must be contacted
Competitive Bidding
Gotchas
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicant did not follow requirements of
Public Contract Code (“CPCC”)
• Did not conduct formal bid for services over the
annual bid limit, and did not advertise in the
newspaper
• Did not follow the CPCC bidding requirements
for public works projects
• Applicant did not conduct a bona fide
competitive bidding process when
purchasing off a master contract,
piggyback contract, or multiple awards
schedule
• Applicant awarded contract before the
required 28-day window was completed
Competitive Bidding
Gotchas (continued)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicant did not run a fair and open
process and did not respond to all
vendors equally
– Bid Protests
– Whistleblower Hotline
• Applicant did not adequately identify
disqualifying factors in competitive
bidding documents
• Applicant did not adequately describe
services sought on Form 470
• Inappropriate vendor involvement in
preparation of bidding documents
Bidding/Contracting Tips
TOM TORLAKSON
State Superintendent
of Public Instruction
• Plan for growth of or decrease of services
over the term of awarded contracts
– Increased Demand for Bandwidth
– School openings/closures
– Form 470 and/or RFP must account for such
contingencies
• One-year contract with voluntary
extensions versus multi-year contracts
– Contract language must allow for extensions
• Read the fine print
• Contracts contingent on receipt of funding
approval both through E-rate and locally
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Requesting Funding
FCC Form 471
Intermediate/Advanced Presentation I 2012 California Department of Education
72
FCC Form 471
Purpose
TOM TORLAKSON
State Superintendent
of Public Instruction
• Identify the service providers and eligible
services you have chosen
• Identify the eligible schools and libraries that
will receive services
• Calculate how much support you seek for the
year
• Include your discount calculation information
• Certify your compliance with program rules
Intermediate/Advanced Presentation I 2012 California Department of Education
73
FCC Form 471
General Information
TOM TORLAKSON
State Superintendent
of Public Instruction
• Must be filed every funding year
• This is your actual request for funding
• This is where you specify…Who, What,
Where, When, & How
–
–
–
–
–
WHO:
WHAT:
WHERE:
WHEN:
HOW:
Service providers chosen
Services being requested
Service Delivery locations
Dates for services
Costs for services and terms
Intermediate/Advanced Presentation I 2012 California Department of Education
74
FCC Form 471
Reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• Include ALL NIFS on the Block 4 that will be
receiving discounted services
• Separate Priority 1 and Priority 2 services on
two different Forms 471
• Separate Recurring from Non-Recurring
charges
– Contract expiration date for non-recurring
services - September 30 (coincides with
deadline for delivery of services for non-recurring
charges)
Intermediate/Advanced Presentation I 2012 California Department of Education
75
FCC Form 471
Filing Strategies
TOM TORLAKSON
State Superintendent
of Public Instruction
• Priority One Filing Strategies
– File questionable services on a separate Form
471.
• Priority Two Filing Strategies
– Create multiple Block 4s to identify different
groups of sites.
Intermediate/Advanced Presentation I 2012 California Department of Education
76
FCC Form 471
Item 21 Attachments
TOM TORLAKSON
State Superintendent
of Public Instruction
– The description of services (including price)
associated with a funding request
• Avoid TMI Syndrome (Too Much Information)
– Can be submitted online, by fax, e-mail, or
on paper
– Attachment(s) are part of the FCC Form 471
and they should be submitted by the close of
the application filing window to ensure that
the FCC Form 471 is treated as on time
http://www.usac.org/sl/applicants/step04/item-21.aspx
Intermediate/Advanced Presentation I 2012 California Department of Education
77
FCC Form 471
Item 21 Attachments
TOM TORLAKSON
State Superintendent
of Public Instruction
• Remove ineligible costs – be careful
– 30% rule –30% or more of funding request
dollar value cannot be for ineligible products
and services. the entire request may be
denied unless…
– Can be rectified during your PIA process:
Remove it-Split it up- separate FRN
• Work with service provider(s) to create
your Item 21 attachment(s)
Intermediate/Advanced Presentation I 2012 California Department of Education
78
FCC Form 471
DEADLY ERRORS
TOM TORLAKSON
State Superintendent
of Public Instruction
• DON’T file Priority One and Priority Two funding
requests on the same Form 471
• DON’T forget to wait at least 29 days after any
mandatory processes associated with your
competitive bidding before selecting a service
provider or signing any contracts
• DON’T submit your Form 471 BEFORE signing all
related contracts
• DON’T forget to CERTIFY your submitted
application (whether electronic or paper
certification)
• Item 21 must be submitted by close of Form
471 filing window
Intermediate/Advanced Presentation I 2012 California Department of Education
79
TOM TORLAKSON
State Superintendent
of Public Instruction
FCC Form 471
Receipt
Acknowledgement
Letter (RAL)
Intermediate/Advanced Presentation I 2012 California Department of Education
80
FCC Form 471
Receipt Acknowledgement Letter (RAL)
TOM TORLAKSON
State Superintendent
of Public Instruction
– A letter issued by USAC to the applicant and
the service provider that summarizes the
information provided in the FCC Form 471
– Many of the entries on the form can be
corrected after submission by using the RAL
– Ministerial and clerical errors can be
corrected until USAC issues the letter
containing USAC’s decisions on your
funding requests (FCDL)
– http://www.usac.org/sl/applicants/step02/clerical-errors.aspx
Intermediate/Advanced Presentation I 2012 California Department of Education
81
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Application Review
and FCDL
Intermediate/Advanced Presentation I 2012 California Department of Education
82
E-Rate Process
Technology Planning
TOM TORLAKSON
State Superintendent
of Public Instruction
FCC Form 470 & RNL
Competitive Bidding
FCC Form 471 & RAL
Application Review & FCDL
FCC Form 486
FCC Forms 472 (BEAR) & 474 (SPI)
Intermediate/Advanced Presentation I 2012 California Department of Education
83
Application Review
TOM TORLAKSON
State Superintendent
of Public Instruction
• You must answer all PIA reviewer questions;
• Ask for reviewer assistance/clarification if you
don’t understand what they are requesting from
you.
• Share PIA reviewer letter with anyone/everyone
(your “assistants”) who can help/contribute to
your responses.
• Send PIA letter to your “assistants” as soon as
you receive it, to give them adequate time to
gather data/information in support of what you
need to respond
• Be responsive; establish a working relationship
with PIA reviewer
• Request additional time from PIA if you need it!
Intermediate/Advanced Presentation I 2012 California Department of Education
84
Application Review
TOM TORLAKSON
State Superintendent
of Public Instruction
• If you cannot answer PIA reviewer’s
questions by deadline or you fail to respond
to all of the PIA reviewer’s questions:
– Your funding request amounts will be reduced
or Worst case:
– your funding requests will be denied.
Intermediate/Advanced Presentation I 2012 California Department of Education
85
FCDL
TOM TORLAKSON
State Superintendent
of Public Instruction
• Upon receipt of your FCDL, review for
details on approved or denied requests and
your next steps.
• FCDL is your “trigger” to file subsequent
forms both for USAC and Service Providers
• You have 60 days from FCDL date to
submit an appeal if you do not agree with
USAC’s funding decision(s).
• If you miss the 60 day window to appeal,
then SLD determination is final.
Intermediate/Advanced Presentation I 2012 California Department of Education
86
TOM TORLAKSON
State Superintendent
of Public Instruction
The E-rate Program
Myths and Misconceptions
Debunked
Intermediate/Advanced Presentation I 2012 California Department of Education
87
Myths and Misconceptions
Overview
TOM TORLAKSON
State Superintendent
of Public Instruction
• Technology planning misconceptions
• Eligible services myths
• FCC Forms 470 and 471 misconceptions
• Competitive bidding and contracts
misconceptions
• PIA myths and misconceptions
• FCC Form 486 and Invoicing misconceptions
• Post-commitment misconceptions
Intermediate/Advanced Presentation I 2012 California Department of Education
88
TOM TORLAKSON
State Superintendent
of Public Instruction
Myths and Misconceptions
Debunked
Technology
Planning
Misconceptions
Intermediate/Advanced Presentation I 2012 California Department of Education
89
Technology Planning
Misconceptions
Technology Plan Timing
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I need to draft my tech plan each funding year
before I file my FCC Form 470 for all services
• Fact: Tech plans are no longer required for Priority One
(Telecom and Internet Access) but are still required for
Priority Two (Internal Connections and Basic Maintenance)
• Fact: Tech plans can be approved for more than one year,
so your services may still be covered by your approved
plan
• Fact: If P2 services are all included in a current tech plan,
and the plan covers at least part of the upcoming funding
year, then a new draft tech plan is not needed prior to
posting an FCC Form 470
Intermediate/Advanced Presentation I 2012 California Department of Education
90
Technology Planning
Misconceptions
Technology Plan Timing
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: Technology plan approvals are always due
July 1st
• Not necessarily. Applicants requesting Priority 2
services must have an approved plan that covers at
least part of the upcoming funding year prior to the start
of service or the filing of the FCC Form 486,
whichever comes first
• If P2 services starting after July 1 are not covered by an
existing tech plan, the new tech plan must be approved
before the start of service or the filing of the FCC
Form 486, whichever comes first
Intermediate/Advanced Presentation I 2012 California Department of Education
91
TOM TORLAKSON
State Superintendent
of Public Instruction
Myths and Misconceptions
Debunked
Eligible Services
Myths
Intermediate/Advanced Presentation I 2012 California Department of Education
92
Eligible Services Myths
Internet Access – Off-campus Use
TOM TORLAKSON
State Superintendent
of Public Instruction
Myth: I can provide Internet access to my students and staff at
home (for educational purposes – of course)
•
Not true. Off-campus Internet access is not an E-rate
eligible service
•
The FCC’s “Learning on the Go” is a pilot program, which
allowed up to $10M to support interactive off-premise
(home) wireless device connectivity for the 20 schools and
libraries chosen to participate
– Pilot program is not accepting any new applicants
Intermediate/Advanced Presentation I 2012 California Department of Education
93
Eligible Services Myths
Understanding the Two-in-Five Rule
TOM TORLAKSON
State Superintendent
of Public Instruction
Myth: If a school in my district or branch in my system uses a
year under the Two-in-Five Rule, it counts for the district/system
as a whole
• Wrong. The Two-in-Five Rule applies to the entities listed on
the Block 4 worksheet cited on the Internal Connections
funding request (i.e., the individual schools, libraries, and/or
non-instructional facilities listed on the worksheet). Entities
can use two years within any five-year period, looking back
and looking forward from that year
• If the entity is a NIF, then the schools or libraries on the Block
4 worksheet have used a year under Two-in-Five
Intermediate/Advanced Presentation I 2012 California Department of Education
94
Eligible Services Myths
TOM TORLAKSON
State Superintendent
of Public Instruction
Understanding the Two-in-Five Rule
(continued)
Myth: I received a commitment for Internal
Connections, but I will get this year back if I don’t
invoice for any equipment.
• Partially correct but missing a crucial step: USAC
considers you to have used a year of Two-in-Five if
you have an Internal Connections commitment
• When no disbursements have been made on
Internal Connections funding requests, you can get
a year back if (and only if) you file an FCC Form
500 to cancel the unused FRN
Intermediate/Advanced Presentation I 2012 California Department of Education
95
Eligible Services Myths
TOM TORLAKSON
State Superintendent
of Public Instruction
Understanding the Two-in-Five Rule
(continued)
Myth: I can receive discounts on a PBX this year
and switches for each of the following two years
because they are different types of Internal
Connections
• Not true. The Two-in-Five Rule applies
regardless of the type of Internal Connections
services received
• If the first-year PBX and the second-year switch
requests are funded, USAC would deny the thirdyear request for violating the Two-in-Five Rule
Intermediate/Advanced Presentation I 2012 California Department of Education
96
Eligible Services Myths
Service Provider Identification Numbers
TOM TORLAKSON
State Superintendent
of Public Instruction
Myth: USAC issued a SPIN to my service provider,
so the service provider is certified by USAC and all
their services are eligible for discounts
• False. The Service Provider Identification
Number (SPIN) is a unique number assigned by
USAC for identification and tracking purposes
only
• USAC does not provide blanket approvals for a
service provider’s offerings, but reviews
requests based on that year’s Eligible Services
List and other factors
Intermediate/Advanced Presentation I 2012 California Department of Education
97
TOM TORLAKSON
Myths and Misconceptions
Debunked
State Superintendent
of Public Instruction
FCC Forms 470 and
471 Misconceptions
Intermediate/Advanced Presentation I 2012 California Department of Education
98
FCC Forms 470 and 471
Misconceptions
FCC Form 470 Timing
TOM TORLAKSON
State Superintendent
of Public Instruction
Myth: I should wait for the FCC Form 471 filing
window to open before filing my FCC Form 470
•
False. You can file the FCC Form 470 for a
funding year as soon as that funding year
becomes available online
– Generally this occurs about a year before
the start of the funding year (e.g., FY2013
starts July 1, 2013, and the FY2013 FCC
Form 470 became available online in July
2012)
Intermediate/Advanced Presentation I 2012 California Department of Education
99
FCC Forms 470 and 471
Misconceptions
Filing Multiple Forms
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I need to file an FCC Form 470 every
year.
• YES… If you intend to purchase services under a
tariffed or month-to-month basis, you must post a
new FCC Form 470 each year
*However*
• NO…If you have purchased services under a multiyear contract or a contract with voluntary
extensions, you do not have to file a new FCC Form
470 for the life of the contract.
• Remember: You MUST file an FCC Form 471 every
year – even if you have a multi-year contract
Intermediate/Advanced Presentation I 2012 California Department of Education
100
FCC Forms 470 and 471
Misconceptions
Filing Multiple Forms
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I can apply for P1 and P2 services
on one FCC Form 471
• We recommend that you don’t. If P1 and P2
services are combined on the same FCC Form
471, USAC cannot issue commitments on the
P1 services until a funding decision can be
made on the P2 services
• However, you don’t have to file P1 services
from different providers on separate FCC
Forms 471 – you can put them all on the same
form, just on separate FRNs (same for P2)
Intermediate/Advanced Presentation I 2012 California Department of Education
101
FCC Forms 470 and 471
Misconceptions
Discount Calculations
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconceptions: All my students or patrons at my entity
are impoverished so I can claim a 90% discount level,
and I’m rural because I can see cows from my office
window
• Wrong and wrong.
• Use National School Lunch Program numbers or
an alternate discount mechanism to determine
your discount, and retain your documentation
• Use the urban/rural status to determine your status
• Use the discount matrix to determine your discount
Intermediate/Advanced Presentation I 2012 California Department of Education
102
FCC Forms 470 and 471
Misconceptions
Transitional Errors
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I’m new to E-rate and don’t understand
the forms, so I can just copy information from the FCC
Forms 470 and 471 my entity filed last year that USAC
approved.
• Don’t do this without making sure the information is
accurate. Copying information from a past year’s
forms could result in inaccurate or dated information.
• Eligible services, entities, costs, discount levels, and
other data entered on program forms should be
carefully reviewed each funding year.
Intermediate/Advanced Presentation I 2012 California Department of Education
103
FCC Forms 470 and 471
Misconceptions
Transitional Errors (PINs)
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I’m new to E-rate and I don’t have a PIN, so I’ll
call the Client Service Bureau and request one; or I’ll just use
the PIN from my former boss’s PIN mailer.
• Wrong. PINs cannot be requested. An authorized person
who does not have a PIN must file an FCC Form 470, 471,
or 486 on paper – or file online and submit a paper
certification page – before USAC can issue a PIN to that
authorized person.
• Even more wrong. PINs are considered equivalent to a
handwritten signature and are specific both to an authorized
person and to a Billed Entity. Don’t use them
interchangeably between authorized persons or Billed
Entities.
Intermediate/Advanced Presentation I 2012 California Department of Education
104
TOM TORLAKSON
State Superintendent
of Public Instruction
Myths and Misconceptions
Debunked
Competitive Bidding
and Contracts
Misconceptions
Intermediate/Advanced Presentation I 2012 California Department of Education
105
Competitive Bidding and
Contracts Misconceptions
State Master Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
Myth: My state posted an FCC Form 470 and
signed contracts with three service providers as
a result. I can just pick any one of the three to
complete my FCC Form 471.
• Wrong. You must conduct a bid evaluation for
all three service providers able to provide
services under these contracts (a “mini-bid”)
and choose the most cost-effective solution.
• However, you don’t need to post an FCC
Form 470 just to conduct this mini-bid.
Intermediate/Advanced Presentation I 2012 California Department of Education
106
Competitive Bidding and
Contracts Misconceptions
TOM TORLAKSON
State Superintendent
of Public Instruction
Choosing a Service Provider
Myth: There is only one service provider who
serves my region, so I can just claim sole source
and not bother with a competitive bidding process.
• Wrong. The 28-day waiting period, competitive
bidding, and other applicable rules must always
be followed
Intermediate/Advanced Presentation I 2012 California Department of Education
107
TOM TORLAKSON
State Superintendent
of Public Instruction
Myths and Misconceptions
Debunked
PIA Myths and
Misconceptions
Intermediate/Advanced Presentation I 2012 California Department of Education
108
PIA Myths and Misconceptions
PIA Correspondence
TOM TORLAKSON
State Superintendent
of Public Instruction
Myth: I put my Billed Entity Number on everything I sent to PIA
during review – that should be enough for them to figure out
who I am and match my documents with my application
• Wrong: The more identifying information you provide, the
better:
– FCC Form 471 application number(s)
– Funding Request Numbers
– Item 21 attachment number(s)
– Contact information, especially phone and email
• We may have trouble identifying individual pages if they get
separated
Intermediate/Advanced Presentation I 2012 California Department of Education
109
PIA Myths and Misconceptions
PIA Correspondence
TOM TORLAKSON
State Superintendent
of Public Instruction
Myth: PIA asked me for documentation, so I’ll
keep working on it and tell my reviewer when I’m
ready to send it
• Wrong: Don’t hope that PIA can read your
mind - communicate with your PIA reviewer
• PIA asks for the information within 15 days –
be sure to request an extension if you need it
by notifying your PIA Reviewer and receiving
a confirmation
Intermediate/Advanced Presentation I 2012 California Department of Education
110
PIA Myths and Misconceptions
Item 21 Attachments
TOM TORLAKSON
State Superintendent
of Public Instruction
Myth: The Item 21 is not really due until PIA
asks for it.
• False. Beginning with FY2011, Item 21
attachments must be filed by the deadline
– FRNs without timely filed Item 21
attachments will not be funded
Intermediate/Advanced Presentation I 2012 California Department of Education
111
PIA Myths and Misconceptions
TOM TORLAKSON
Funding Commitment Decision Letters
(FCDL)
State Superintendent
of Public Instruction
Misconception: My FCDL states that my FRN is
‘As Yet Unfunded.’ Since it hasn’t been denied,
where is my funding?
• “As Yet Unfunded” indicate that your FRN is
approved for funding when funding becomes
available, which has not yet occurred for your
discount level.
Intermediate/Advanced Presentation I 2012 California Department of Education
112
PIA Myths and Misconceptions
FCC Form 471 Application Status
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: The application status tool
shows that my Form 471 has 16 different
statuses.
• Look again. The first gray grid on the
application status display lists each of the
FCC Forms 471 you filed and its status.
The second gray grid on the display is a
“key,” which explains what each status
means.
Intermediate/Advanced Presentation I 2012 California Department of Education
113
PIA Myths and Misconceptions
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2012 California Department of Education
114
TOM TORLAKSON
State Superintendent
of Public Instruction
Myths and Misconceptions
Debunked
FCC Form 486 &
Invoicing
Misconceptions
Intermediate/Advanced Presentation I 2012 California Department of Education
115
FCC Form 486 & Invoicing
Misconceptions
TOM TORLAKSON
State Superintendent
of Public Instruction
Requirements Before Invoicing USAC
Misconception: I received my FCDL, so my grant
check is in the mail as well
• Wrong: E-rate is not a grant program
• After USAC issues an FCDL, services must
start, applicants must file an FCC Form 486,
and service providers must file an FCC Form
473
• Applicants must then either pay for services in
full and file an FCC Form 472 (BEAR) or ask
the service provider to provide discounted bills
Intermediate/Advanced Presentation I 2012 California Department of Education
116
FCC Form 486 & Invoicing
Misconceptions
Certifying CIPA Compliance on FCC Form 486
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I filter all my computers and wrote an
Internet safety policy, therefore I am CIPA compliant
• Not quite – there are other components to CIPA, for
example:
• Public hearing or meeting about the Internet safety
policy for which reasonable public notice was
provided
• SCHOOLS – You should have already amended
your Internet safety policy to provide for the
education of minors about appropriate online
behavior
– Be sure to review the CIPA guidance on the USAC
website
Intermediate/Advanced Presentation I 2012 California Department of Education
117
FCC Form 486 & Invoicing Misconceptions
Understanding Invoicing Reductions and
Denials
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: Once my BEAR has been denied I
will have to appeal the decision to get my funding
• No, if you correct the problem identified on
the BEAR Notification Letter, you can simply
resubmit the BEAR Form.
• If you don’t understand why your BEAR Form
was denied or reduced, submit a question or
call the Client Service Bureau.
Intermediate/Advanced Presentation I 2012 California Department of Education
118
TOM TORLAKSON
State Superintendent
of Public Instruction
Myths and Misconceptions
Debunked
Post-Commitment
Misconceptions
Intermediate/Advanced Presentation I 2012 California Department of Education
119
Post-Commitment Misconceptions
FCC Form 500
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: When I have unused funds
from my commitment, I should leave the
money where it is in case I need it later for
something else
• No, unused commitment funds cannot be
transferred to other years or FRNs
• PLEASE file an FCC Form 500 to return
any unused funds to USAC so that they can
be used for other commitments
Intermediate/Advanced Presentation I 2012 California Department of Education
120
Post-Commitment Misconceptions
Document Retention
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I must keep hard copies of all my
documentation
• Applicants and service providers are required to
keep documentation (hard copies or electronic)
for a period of at least five (5) years from last
date of service
• If you have a multi-year contract, keep copies of
relevant documents (including the contract) for
five years after the last date of service
delivery covered by that contract
Intermediate/Advanced Presentation I 2012 California Department of Education
121
Post-Commitment Misconceptions
TOM TORLAKSON
State Superintendent
of Public Instruction
Operational SPIN Change Reminders
Misconception: I found a new service provider
who is cheaper, so I did a SPIN change. Now
USAC and I both spend less, so everybody
wins.
• You can’t do a SPIN change just to get a
cheaper price – there must be a legitimate
reason to change providers (e.g., breach of
contract, unable to perform)
• Moreover, the new service provider must have
received the next highest point value in the
original bid evaluation (unless only one or no
bids were received)
Intermediate/Advanced Presentation I 2012 California Department of Education
122
Post-Commitment Misconceptions
Extensions
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I need to extend my contract, service
delivery deadline and invoice deadline, so I’ll just
file an FCC Form 500 for all three.
• 33 1/3 percent correct (best case scenario)
– If you can extend your contract (*hint: read
your contract*) and you do so, filing an FCC
Form 500 reports the new expiration date to
USAC
– You must, however, file separate extension
requests for the other two deadlines, totaling
three submissions to USAC
Intermediate/Advanced Presentation I 2012 California Department of Education
123
Post-Commitment Misconceptions
Appeals
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I just had my FCC appeal approved, so
where is my check? Are you out of money for that
funding year?
• First, read the remand order carefully – USAC may
have been directed to do additional work before
taking an action
• Second, you are responsible for following the
remainder of the application process, e.g., timely
filing an FCC Form 486 and 472
• Third, if the appeal is old, verify the contact
information USAC has on file by calling CSB
*Note: You can still receive funding for an older funding
year
Intermediate/Advanced Presentation I 2012 California Department of Education
124
Post-Commitment Misconceptions
Appeals
TOM TORLAKSON
State Superintendent
of Public Instruction
Misconception: I was audited; I don’t agree
with the audit findings, so I plan to appeal
them.
• Audit findings are not appealable, because
no determination (e.g., a necessity to recover
funds) has been made by USAC
• If USAC issues a COMAD or RIDF letter
following an audit, that is the appealable
event
Intermediate/Advanced Presentation I 2012 California Department of Education
125
TOM TORLAKSON
State Superintendent
of Public Instruction
Questions?
Intermediate/Advanced Presentation I 2012 California Department of Education
126
TOM TORLAKSON
Intermediate/Advanced
Presentation
State Superintendent
of Public Instruction
Children’s Internet
Protection Act
(CIPA)
Intermediate/Advanced Presentation I 2012 California Department of Education
127
New for Funding Year 2012
New requirements under CIPA
• SCHOOLS – By July 1, 2012, amend your
TOM TORLAKSON
State Superintendent
of Public Instruction
existing Internet safety policy (if you have not
already done so) to provide for the education of
minors about appropriate online behavior,
including interacting with other individuals on
social networking sites and in chat rooms, and
cyberbullying awareness and response.
• LIBRARIES – No new requirements. The above
July 1, 2012 requirement does not apply to
Libraries
• Overall - several existing statutory requirements
have been codified and others have been clarified.
Intermediate/Advanced Presentation I 2012 California Department of Education
128
CIPA - FCC Report and Order
Additional Information on New Requirements
TOM TORLAKSON
State Superintendent
of Public Instruction
• New requirements come from the Protecting
Children in the 21st Century Act, which updated
the Children’s Internet Protection Act.
• Internet safety policies for schools must be
updated on or before July 1, 2012 to provide for:
– The education of minors about appropriate
online behavior, including interacting with other
individuals on social networking sites and in
chat rooms
– Cyberbullying awareness and response
Intermediate/Advanced Presentation I 2012 California Department of Education
129
CIPA - FCC Report and Order
Additional Information on New Requirements
TOM TORLAKSON
State Superintendent
of Public Instruction
• “Social networking” and “cyberbullying” are not
defined, nor are specific procedures or curricula
detailed for schools to use in educating students
– Congress’ intent is that local authorities should
make decisions in this area.
– Resources are available to assist in this
process if needed – e.g., OnGuard Online.gov
– For more guidance, go to:
http://apps.fcc.gov/ecfs/document/view?id=702
2052425
Intermediate/Advanced Presentation I 2012 California Department of Education
130
CIPA - FCC Report and Order
Additional Information on New Requirements
TOM TORLAKSON
State Superintendent
of Public Instruction
• Schools do not need to hold a new public meeting
or hearing about amendments adopted to meet
the new requirements unless required to do so by
state or local rules.
• Forms 486 and 479 will not be amended because
the existing language includes a certification of
compliance with all statutory requirements.
• Instructions for these forms will be revised to list
the new requirement from the Protecting Children
in the 21st Century Act.
Intermediate/Advanced Presentation I 2012 California Department of Education
131
CIPA – Rule Revisions
Resolutions to the current rules detailed in
the Order
TOM TORLAKSON
State Superintendent
of Public Instruction
• Do not impose additional obligations but codify
existing statutory requirements.
• Simplify the application process by including
important definitions.
• Will not require re-filing forms.
• For More CIPA Information:
http://www.k12hsn.org/programs/erate/training_materials.php
Intermediate/Advanced Presentation I 2012 California Department of Education
132
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
E-rate Gift Rules
Intermediate/Advanced Presentation I 2012 California Department of Education
133
E-rate Gift Rules
Rules codified in FY 2011 in 6th Report &
Order
TOM TORLAKSON
State Superintendent
of Public Instruction
• Receipt or solicitation of gifts by applicants from
service providers and potential service providers
and vice versa is a competitive bidding violation.
• Rules apply to everyone participating in E-rate.
• Gift prohibitions are applicable year-round, not
just during the competitive bidding process.
• Must always follow FCC rules. May also need to
comply with additional state/local requirements.
If those provisions are more stringent than
federal requirements, failure to comply with them
will be a violation of FCC rules.
• Counted per funding year
Intermediate/Advanced Presentation I 2012 California Department of Education
134
E-rate Gift Rules
Gift Rule Exceptions
TOM TORLAKSON
State Superintendent
of Public Instruction
• “Modest refreshments not offered as part of a
meal, items with little intrinsic value intended for
presentation, and items worth $20 or less,
including meals, may be offered or provided ,
and accepted by any individuals or entities
subject to this rule, if the value of these items
received by any individual does not exceed $50
from one service provider per funding year.”
See 47 C.F.R. § 54.503(d)(1).
• Single source = all employees, officers,
representatives, agents, contractors, or
directors of the service provider.
Intermediate/Advanced Presentation I 2012 California Department of Education
135
Charitable Donations
Questionable Charitable Contributions
TOM TORLAKSON
State Superintendent
of Public Instruction
• Equipment, including laptops and cell phones,
may be permissible if it benefits the school or
library as a whole and broadly serves an
educational purpose.
– Gifts of equipment that increase demand for
a donor’s services, and thus cause the
applicant to purchase more of a provider’s
services, are prohibited.
• Example: Service provider donates
computers, causing a need for more Internet
Access, which the provider sells to the
library
Intermediate/Advanced Presentation I 2012 California Department of Education
136
Prizes
TOM TORLAKSON
State Superintendent
of Public Instruction
Conferences and Training
Sessions
• Raffle tickets, prizes, or door prizes that
have a retail value of over $20 violate the
gift rules unless the event is open to the
public.
– “Open to the Public” means the event is
free of charge and that members of the
public at large typically attend such a
gathering.
• State Fair would qualify
• State District IT Directors meeting would
not qualify
Intermediate/Advanced Presentation I 2012 California Department of Education
137
Conferences and Training
Sessions
Widely Attended Events
TOM TORLAKSON
State Superintendent
of Public Instruction
• “Widely attended events” are exempt from gift
rules. See 5 C.F.R. § 2635.203(g)
– Gathering is widely attended if:
• Employee’s attendance must be in the interest of the
agency (i.e. school or library) and further its programs
and operations, and
• It is expected that a large number of persons will
attend, and
• Persons with a diversity of views or interests will be
present.
– Event is open to members from throughout the
interested industry or professional or those in
attendance represent a range of persons interested
in a given matter.
Intermediate/Advanced Presentation I 2012 California Department of Education
138
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Form 500
Intermediate/Advanced Presentation I 2012 California Department of Education
139
Form 500
TOM TORLAKSON
State Superintendent
of Public Instruction
To request adjustment to Funding
Commitment $ and/or modify Receipt of
Service Confirmation:
• To request one or more of the following
changes to a Funding Request Number
(FRN) to:
–
–
–
–
Change service start date on the FRN;
Change contract expiration date on the FRN;
Reduce funding amount on the FRN;
Cancel the FRN
• NOTE: Once you submit a Form 500 to
reduce or cancel the funding amount, it is
irreversible.
Intermediate/Advanced Presentation I 2012 California Department of Education
140
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Service
Substitutions
Intermediate/Advanced Presentation I 2012 California Department of Education
141
Service Substitutions
To request change in products and/or
services specified in Form 471
TOM TORLAKSON
State Superintendent
of Public Instruction
Substitution of a service or product must meet the
following conditions:
• Substituted services or products have same functionality
as services or products contained in original proposal.
• Substitution does not violate any contract provisions or
state or local procurement laws.
• Substitution does not result in an increase in percentage
of ineligible services or functions.
• Requested change is within the scope of controlling FCC
Form 470, including any Requests for Proposal, for the
original service.
For details: http://www.usac.org/sl/applicants/before-youredone/service-substitutions.aspx
Intermediate/Advanced Presentation I 2012 California Department of Education
142
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
SPIN Changes
Intermediate/Advanced Presentation I 2012 California Department of Education
143
SPIN Changes
SPIN changes: Operational vs. Corrective
• Pre-commitment SPIN changes:
TOM TORLAKSON
State Superintendent
of Public Instruction
– Corrective SPIN changes only (i.e., data entry
errors).
• Post-commitment SPIN changes: (as referenced
previously in this presentation) 6th Report & Order
restricted Operational SPIN changes as follows:
– Operational SPIN changes must have legitimate
reason to change, such as breach of contract or
provider unable to perform, and
– must select provider with the next highest point
value in evaluation.
For more details:
http://www.usac.org/sl/applicants/before-youredone/spin-changes/default.aspx
Intermediate/Advanced Presentation I 2012 California Department of Education
144
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Audits
Intermediate/Advanced Presentation I 2012 California Department of Education
145
Audits
Purpose of E-rate audits
TOM TORLAKSON
State Superintendent
of Public Instruction
• Primary purposes of audits: to ensure
compliance with FCC rules and program
requirements and to assist in prevention
and detection of waste, fraud, & abuse
• If you cannot prove that you followed the
rules, then it will be assumed that you DID
NOT follow the rules.
• The consequences of negative findings
by an auditor can mean payback by the
School/District/Library of E-rate
monies… or worse.
Intermediate/Advanced Presentation I 2012 California Department of Education
146
Audits
TOM TORLAKSON
State Superintendent
of Public Instruction
EXPECT TO BE AUDITED
• Various types of E-Rate Audits:
– BCAP- conducted to determine
compliance with FCC & program rules,
such as Eligibility, Competitive bidding,
CIPA, etc.
• Audit takes several weeks, site visits
typically last 3-5 days
– PQA – Payment Quality Assessment
assesses the rate of improper E-rate
disbursements
• Assessment, not an audit. Similar to a
condensed desk audit with no site visits
Intermediate/Advanced Presentation I 2012 California Department of Education
147
Audits
PREPARING FOR AUDITS
TOM TORLAKSON
State Superintendent
of Public Instruction
• The best way to prepare for an audit is to:
– Understand and follow the program rules
– DOCUMENT EVERYTHING and SAVE
DOCUMENTATION IN ORGANIZED WAY
• You can’t prove that the School, District,
and/or Library abided by the rules if you don’t
document your processes and retain all
supporting documents.
• Organize your supporting documentation so
that ….auditors and/or your successor(s)…
can trace what you did to demonstrate that
you followed all E-rate program rules.
Intermediate/Advanced Presentation I 2012 California Department of Education
148
PREPARING FOR AUDITS
Audits
1. Plan ahead for an audit or review by
documenting every step of the process as the
work is done.
TOM TORLAKSON
State Superintendent
of Public Instruction
e.g., document how you conducted competitive bidding;
save copies of any RFPs issued in conjunction with
any Form 470s, save copies of your bid evaluation
matrix and scoring of bidders, etc.
2. Create and maintain ORGANIZED E-Rate binders
for EACH funding year
• Retain ALL E-rate related documents
• Contact service providers for assistance when
appropriate
• USAC Documentation Checklists for PQA’s and
BCAP audits
BCAP: http://www.usac.org/sl/about/programintegrity/bcap.aspx
PQA:http://www.usac.org/_res/documents/sl/pdf/aud
it/SL-Documents.pdf
Intermediate/Advanced Presentation I 2012 California Department of Education
149
Other Levels of Scrutiny
•H.A.T.S Visits
Audits
•Helping Applicants To Succeed
TOM TORLAKSON
State Superintendent
of Public Instruction
• Primarily for applicants that have had
funding issues in the past
• Welcome the help…do not be afraid
• Special Compliance Reviews
• Typically during PIA
• Item 25 Selective Review
• Cost Effectiveness Review
• CIPA Compliance and Competitive
Bidding Selective Reviews
Intermediate/Advanced Presentation I 2012 California Department of Education
150
Always Be Prepared for Audits
Document Retention Requirements
• Keep for 5 years after last date of service
TOM TORLAKSON
State Superintendent
of Public Instruction
– Be aware of contract dates and extensions
– All USAC correspondence, including Quarterly
Disbursement Reports
• Make sure all departments understand
document retention requirements for E-rate
– E.g., food services data, surveys, etc., in
support of NSLP participation
• Align Board policies with E-rate requirements
• Per 5th Report and Order: if applicant can’t
prove compliance with rules through
documentation, they must assume that you
didn’t follow the rules
• No documentation = Recovery of Funds
(Applicant may have to pay back USAC for Erate monies they already received)
Intermediate/Advanced Presentation I 2012 California Department of Education
151
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
State Master
Contract
Intermediate/Advanced Presentation I 2012 California Department of Education
152
State Master Contract
What is it?
TOM TORLAKSON
State Superintendent
of Public Instruction
• A contract that is competitively bid and put
in place by a state government entity for
use by others.
Intermediate/Advanced Presentation I 2012 California Department of Education
153
State Master Contract
If the State files a Form 470
TOM TORLAKSON
State Superintendent
of Public Instruction
• The applicant may cite the state's Form 470 on its Form
471. The state must follow a competitive bidding process
pursuant to FCC requirements and state procurement
law.
• The applicant is required to follow the applicable
provisions of the state master contract and state and local
procurement laws. No separate bidding documents or
contracts are required by the applicant citing the state's
Form 470, other than what is required by the state master
contract and state and local procurement laws. The
signed state master contract between the state and the
service provider meets the FCC signed contract
requirement.
Intermediate/Advanced Presentation I 2012 California Department of Education
154
State Master Contract
Multiple Awards Schedule
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicant must conduct a “mini-bid” process for all
venders able to provider services under the
contract.
– Determine factors to be used in evaluation
– Score venders appropriately
– Select most cost effective
• The applicant does not need to post an FCC Form
470 to conduct a mini-bid.
• The applicant does not need to conduct a mini-bid if
only one vendor is able to provide service.
Intermediate/Advanced Presentation I 2012 California Department of Education
155
State Master Contract
If the state DID NOT file a Form 470
TOM TORLAKSON
State Superintendent
of Public Instruction
• The applicant must follow a competitive bidding process
pursuant to FCC requirements and state and local
procurement law.
• If the applicant selects the state master contract as the
most cost-effective alternative, the applicant is required to
follow the applicable provisions of the state master
contract, state contract law, and state and local
procurement laws. The signed state master contract
between the state and the service provider meets the
FCC signed contract requirement.
• The applicant cites its own FCC Form 470 on its FCC
Form 471
Intermediate/Advanced Presentation I 2012 California Department of Education
156
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
CALNET 2
Intermediate/Advanced Presentation I 2012 California Department of Education
157
CALNET 2 – Is your School or
Library currently on CALNET 2
contract?
TOM TORLAKSON
State Superintendent
of Public Instruction
– Did you reference CALNET 2 as your contract on any of
your current year Forms 471?
– Did you enter 1/29/2014 as your contract expiration date
on any of your current Year Forms 471?
– Did you cite Form 470 # 267290000544188 as your
originating Form 470 on any of your current year Forms
471?
– Does your AT&T/Verizon bill display “CALNET 2” on any
of your bills?
• If you answer yes to any of the above, you are
most certainly on CALNET 2 for some or all of your
services. Even if you don’t answer yes to all of the
above, you could still be receiving services via
CALNET 2 contract.
Intermediate/Advanced Presentation I 2012 California Department of Education
158
CALNET 2 – If your School or Library
is currently on CALNET 2 contract, then:
TOM TORLAKSON
State Superintendent
of Public Instruction
• Follow CDE guidance provided via email dated
9/18/2012, excerpted here:
• “….two possible strategies to consider:
– …Each district and library posts its own Form
470 and conducts a competitive bidding
process compliant with state and federal
rules….
– Use the state Form 470 that will be posted and
follow the guidelines set forth by USAC for a
State Replacement Contract…”
• Additional guidance to be provided by
CDE in the coming weeks
Intermediate/Advanced Presentation I 2012 California Department of Education
159
TOM TORLAKSON
If you are on CALNET 2, then
what else can you do to prepare
for Yr 2013/14?
State Superintendent
of Public Instruction
• Subscribe to CDE LIST SERV by submitting a
blank e-mail to [email protected]
• Read and understand additional guidance to be
provided by CDE in the coming weeks
• Sign up for CDE training webinar(s) to be held on
this subject in January/February.
Intermediate/Advanced Presentation I 2012 California Department of Education
160
Potential CALNET 2 Example
#1:
TOM TORLAKSON
State Superintendent
of Public Instruction
• First one is very straightforward and all the
“clues” are in place:
– “ABC” SCH DIST, Form 471 #XXX, cites State
Form 470 # 267290000544188, customer cites
CALNET 2 in the contract # and the applicant
cites contract expiration date as 1/29/2014.
– All the indicators are for this applicant that they
are on CALNET 2 contract just by what was
entered on the current Year Form 471.
Intermediate/Advanced Presentation I 2012 California Department of Education
161
Potential CALNET 2 Example
#2:
TOM TORLAKSON
State Superintendent
of Public Instruction
• “CDE” SCH DIST, Form 471 #XXX, shows
1/29/2014 as the contract expiration date,
but there’s no specific reference to it being
for CALNET 2.
• Also, this applicant did not reference the
State Form 470; they referenced their own
Form 470.
• More than likely this applicant is on
CALNET 2 contract, just by what was
entered as the Contract Expiration Date
Intermediate/Advanced Presentation I 2012 California Department of Education
162
Potential CALNET 2 Example
#3:
TOM TORLAKSON
State Superintendent
of Public Instruction
• “FGH” UNIFIED SCHOOL DIST, Form 471
# XXX, cites their own Form 470 (not the
State), they cite CALNET 2 as their
contract in Question #15B, but they
indicate that their contract expires
09/29/2014.
• Somewhat likely this applicant is on
CALNET 2 contract, since CALNET 2 was
entered in the contract # in Question #15B.
Intermediate/Advanced Presentation I 2012 California Department of Education
163
TOM TORLAKSON
State Superintendent
of Public Instruction
E-Rate for California
CALNET 3 Status
Intermediate/Advanced Presentation I 2012 California Department of Education
164
CALNET 2 Expiration
TOM TORLAKSON
State Superintendent
of Public Instruction
CALNET 2 expires January 29, 2014
 Expiration falls mid-way through E-rate Funding
Year 2013
 No extensions will occur
 Applicants need to plan for services from
January 30, 2014 – June 30, 2014 (at a
minimum)
 MSAs 1 and 2 AT&T services (landline services
and long distance)
 MSAs 3 and 4 Verizon services (VoIP)
Intermediate/Advanced Presentation I 2012 California Department of Education
165
CALNET 3 Status
CALNET 3 will not be awarded before close
of E-rate Form 471 application window
TOM TORLAKSON
State Superintendent
of Public Instruction
 California Office of Technology Services (OTech)
will post a State Form 470 prior to close of window,
but contract(s) will be awarded AFTER the close of
the Yr 2013/14 E-rate Form 471 filing deadline.
 Applicants may use two strategies for FY 2013
Form 471 filing
 Option 1: Use State Master Contract
Replacement SPIN as a placeholder and use
State Form 470
 Option 2: Conduct their own Form 470/bidding
processes
Intermediate/Advanced Presentation I 2012 California Department of Education
166
Option 1: CALNET 3 State Master
Contract Replacement (“SMC”)
TOM TORLAKSON
State Superintendent
of Public Instruction
Applicants may use SMC SPIN for period
between January 30 – June 30, 2014
 Applicant will file two funding requests on Form 471 in FY
2013
 Applicant will file a funding request under CALNET 2 from
July 1, 2013 through January 29, 2014
 Applicant will file a placeholder funding request on Form
471 to cover January 30 – June 30, 2014, referencing
State Form 470
– SMC SPIN 143999999 will be referenced for this
period – only available 1 week before window closes
– Applicant must accept services from the awarded
service provider(s) under CALNET 3
Intermediate/Advanced Presentation I 2012 California Department of Education
167
Option 1: CALNET 3 State Master
Contract Replacement (“SMC”)
TOM TORLAKSON
State Superintendent
of Public Instruction
Applicants may use SMC SPIN for period
between January 30 – June 30, 2014
 Depending on number of service provider(s)
awarded under CALNET 3 for each type of service,
a mini bid may be required
 One service provider = One contract signed and
SMC SPIN changed to awarded service provider
SPIN during PIA or via RAL
 Multiple service providers = a mini bid would be
required, compliant with FCC rules. SMC SPIN
changed to awarded service provider SPIN
during PIA or via RAL
Intermediate/Advanced Presentation I 2012 California Department of Education
168
Option 2: Applicant Conducts its
Own Form 470/Bidding Process
TOM TORLAKSON
State Superintendent
of Public Instruction
Applicants must file Form 470 for services
January 30 – June 30, 2014
 Applicant will file two funding requests on Form 471 in
FY 2013
 Applicant will file a funding request under C 2 from July
1, 2013 through January 29, 2014
 Applicant posts its own Form 470 and conducts a
competitive bidding process compliant with state and
federal rules for Telecommunications Services and
Internet Access for services between January and June
2014 (at a minimum)
 Second funding request will be based upon awarded
service provider resulting from this process
Intermediate/Advanced Presentation I 2012 California Department of Education
169
If you are on CALNET 2 now (& most CA
Education applicants are), then YOU MUST
DECIDE for upcoming funding year what you will
do for all YOUR services on CALNET 2 contract
TOM TORLAKSON
State Superintendent
of Public Instruction
•Alternative 1…OR
•Alternative 2
•BY NO LATER THAN:
•December 1, 2012 (BEST PRACTICE)
Or (worst case)…
•LAST DAY TO POST Form 470 (Yr
2013/2014 Form 470 filing deadline)
Otherwise, you will not be eligible to receive
E-rate for 5 months of upcoming YR
2013/2014.
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Gotcha’s/Reminders
Intermediate/Advanced Presentation I 2012 California Department of Education
171
E-rate Applicants Reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
1. Post Form 470(s) by February 8, 2013 (at the very
latest!)* If you wait until after this date, you will
have to do everything that needs to be done at the
last minute, if you can even get all E-rate related
tasks accomplished so close to the application
deadline.
2. Submit Form 471 application(s) by March 8,
2013!** If you wait until this date or later, you run
the risk of not getting all E-rate related tasks
accomplished in time.
3. Make sure you submit all Item 21 Attachments by
the Form 471 deadline date!
*Form 470 filing deadline is Feb 14, 2013
**Form 471/Item 21s filing deadline is March 14, 2013
Intermediate/Advanced Presentation I 2012 California Department of Education
172
More E-rate Applicants Reminders
1.
TOM TORLAKSON
State Superintendent
of Public Instruction
2.
3.
4.
Be sure to include all services that your District or
Library system will need to competitively bid on a
Form 470 that you post for upcoming E-rate year
before the Form 470 filing deadline.
Make sure you plan for any facilities that are going to
be opening up by your District or Library System
during the upcoming E-rate year that you will want Erate funding for.
Make certain that you anticipate, request from your
SP, as needed) and sign contract modifications that
need to be made for upcoming year, especially if it
will require your District/Library system to issue a
Form 470 to accomplish those changes
Fail to anticipate & request contract changes that
need to be accomplished before you submit your
Form 471 for upcoming funding year.
Intermediate/Advanced Presentation I 2012 California Department of Education
173
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
California
Teleconnect Fund
(CTF)
Intermediate/Advanced Presentation I 2012 California Department of Education
174
California Teleconnect Fund
Overview
TOM TORLAKSON
State Superintendent
of Public Instruction
• The California Public Utilities Commission (CPUC)
established the California Teleconnect Fund (CTF) in
1996 and is solely funded through an all end-user
surcharge placed on all intrastate telecommunications
services in California.
• The CTF program 50% discount on selected
telecommunications services to qualifying K-12 schools,
community colleges, libraries, government-owned and
operated hospitals and health clinics, non-profit
community based organizations, California Telehealth
Network Consortium.
• Program website:
http://www.cpuc.ca.gov/PUC/Telco/Public+Programs/CTF/
Intermediate/Advanced Presentation I 2012 California Department of Education
175
Who is Eligible for CTF?
TOM TORLAKSON
State Superintendent
of Public Instruction
• Schools: Public or nonprofit private schools
that provide elementary or secondary
education and that have endowments under
$50 million.
• Libraries: Libraries eligible to participate in
state-based plans for funds under Title III of
the Library Services and Technology Act.
Intermediate/Advanced Presentation I 2012 California Department of Education
176
Who is Eligible for CTF (continued)
TOM TORLAKSON
State Superintendent
of Public Instruction
– Hospitals and health clinics that are owned and
operated by a municipal, county government, or a
hospital district.
• Community based organizations (CBOs):
o must be a tax-exempt organization as described
in Section 501 (c)(3) or 501 (d) of the Internal
Revenue Code, Title 26 of the United States
Code and must also have a Form 990.
o Second, they must offer health care, job training,
job placement, 2-1-1 referral services and
information (approved by the Commission),
educational instruction, or a community
technology program offering access to and
training in the Internet and other technologies.
• California Community Colleges
• California Telehealth Network Consortium
Intermediate/Advanced Presentation I 2012 California Department of Education
177
TOM TORLAKSON
State Superintendent
of Public Instruction
Qualified organizations may receive 50% discount
on the following telecommunications services
• Measured Business service
• Centrex, PBX Trunks
• ISDN service
• DS1 service
• DS3 service
• Up to and including OC-192 services, or their
functional equivalents
• Internet access services, with certain exceptions,
as defined under the FCC’s website
• Multi-Protocol Label Switching
o Service Providers may use different terminology to “name” their
CTF-eligible services. Contact the applicable Service Provider for
more details which billing components and named services are
eligible for CTF discounts.
o Not all billing elements associated with the above named services
may be eligible for CTF discounts, e.g., usage is not eligible, federal
taxes and surcharges not eligible, etc.
Intermediate/Advanced Presentation I 2012 California Department of Education
178
Internet Services eligible for CTF, Effective
12/1/2008:
TOM TORLAKSON
State Superintendent
of Public Instruction
• The definition of Internet Access is the same as
that used by the FCC.
• Internet definition can be found @
http://fjallfoss.fcc.gov/edocs_public/attachmatch/FCC-08-265A2.pdf
• Eligible Internet Services include:
o landline; and
o satellite/wireless Internet access, including cellular
data plans and laptop cards
o Service Providers may use different terminology to “name” their
CTF-eligible services. Contact the applicable Service Provider for
more details which billing components and named services are
eligible for CTF discounts.
o Not all billing elements associated with the above named services
may be eligible for CTF discounts.
Intermediate/Advanced Presentation I 2012 California Department of Education
179
SB1102 IMPACT ON PARTICIPATING SCHOOLS
AND LIBRARIES
TOM TORLAKSON
State Superintendent
of Public Instruction
• CTF service providers are required to apply
the California statewide average E-rate
percentage before calculating the CTF
discount (this calculation only reduces
customer’s eligible dollar amount
considered for CTF discounts; it does not
provide the customer an E-rate discount)
on eligible services, where applicable.
• “NEW “ (effective 7/1/12)….Community
based organizations (CBOs) that offer Head
Start programs will see CTF discounts
stacked, just as with schools and libraries
Intermediate/Advanced Presentation I 2012 California Department of Education
180
Services that are Ineligible for E-rate, but eligible
for CTF
TOM TORLAKSON
State Superintendent
of Public Instruction
• If an applicant is a public or private school or public library,
eligible to receive E-rate discounts, but subscribe to
telecommunications services that are ineligible E-rate
discounts, those services will not be affected by SB1102.
• CTF applicant is required to provide documentation to their
carrier identifying each CTF service/circuit ID and the reason
why they are ineligible for E-rate discounts.
• Contact your carrier to inquire what paperwork they require to
accommodate for these situations.
• E.g., currently, data plans for wireless are only eligible for Erate if used on campus. Off campus usage is not currently
eligible. If school or library is not applying for E-rate for the
data plans or is cost allocating only for a portion of the off
campus usage & is applying for CTF for the card, customer
must submit CTF Eligible/E-rate Ineligible Services form
(annually) to receive 50% discount CTF discounts without
stacking.
Intermediate/Advanced Presentation I 2012 California Department of Education
181
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
Appendices
Intermediate/Advanced Presentation I 2012 California Department of Education
182
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
Calculating Your
Discount
Intermediate/Advanced Presentation I 2012 California Department of Education
183
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
Alternative Discount
Mechanisms
Intermediate/Advanced Presentation I 2012 California Department of Education
184
Alternative Discount Mechanisms
Alternative Discount Mechanisms
TOM TORLAKSON
State Superintendent
of Public Instruction
• NSLP eligibility based on student’s family
being at or below 185% of federal poverty
levels
• Income Eligibility Guidelines (IEG)
published annually by U.S. Department of
Agriculture
• Other alternative discount methodologies
seek to determine if a student meets the
NSLP IEG threshold
Intermediate/Advanced Presentation I 2012 California Department of Education
185
Alternative Discount Mechanisms
Acceptable Mechanisms
• Programs that meet the IEG threshold for the NSLP:
TOM TORLAKSON
State Superintendent
of Public Instruction
–
–
–
–
–
–
Medicaid
Food stamps (SNAP)
Supplementary Security Income (SSI)
Section 8 Housing Assistance
Low Income Home Energy Assistance Program (LIHEAP)
Food Distribution Program on Indian Reservations
Unacceptable Mechanisms
• Programs that do not meet the IEG threshold for the NSLP:
– Temporary Aid to Needy Families (TANF)
– Title 1
– Scholarship programs
Intermediate/Advanced Presentation I 2012 California Department of Education
186
Alternative Discount
Mechanisms
Sibling Match
TOM TORLAKSON
State Superintendent
of Public Instruction
• If school can establish that one sibling in a
family is eligible for NSLP, then it can count
the other siblings in the same family as
eligible for NSLP even if the other siblings
do not participate .
Intermediate/Advanced Presentation I 2012 California Department of Education
187
Alternative Discount Methods
Surveys
TOM TORLAKSON
State Superintendent
of Public Instruction
• Must be sent to all families whose children
attend the school
• Surveys must contain at least student and
family name, size of family, income level of
family or acceptable alternative mechanism
• Surveys are valid for two years
• NSLP application forms are never an
acceptable survey instrument
Intermediate/Advanced Presentation I 2012 California Department of Education
188
Alternative Discount Methods
Survey Extrapolation
TOM TORLAKSON
State Superintendent
of Public Instruction
• If a survey is sent to all households of its students,
and
• If at least 50% of surveys are returned
• School may extrapolate the data to 100% of its
students
• Example:
– 100 families received the survey; 75 returned
them
– 25 of the 75 families are eligible for NSLP
– 25/75 = 0.33
– School can report 33% of all students are eligible
Intermediate/Advanced Presentation I 2012 California Department of Education
189
Alternative Discount Methods
Combining Alternative Discount Methods
TOM TORLAKSON
State Superintendent
of Public Instruction
• Ensure that the same students are not
double counted.
• Surveys cannot be combined with other
alternative discount methods if you have
extrapolated
• Provisions 1-4 cannot be combined with
other alternative discount methods since
they include extrapolation
• Keep detailed records to show that the
same students were not double counted
Intermediate/Advanced Presentation I 2012 California Department of Education
190
Alternative Discount Methods
Ineligible Discount Calculation Methods
TOM TORLAKSON
State Superintendent
of Public Instruction
• Feeder School Method
– Extrapolating from elementary to
secondary schools
• Principal’s Survey/Estimate
– Based on administrators’ knowledge of
some of their students
• Title I eligibility
• Neighborhood poverty measurements
Intermediate/Advanced Presentation I 2012 California Department of Education
191
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Dark Fiber
Intermediate/Advanced Presentation I 2012 California Department of Education
192
Dark Fiber
Leased Dark Fiber as Priority One
TOM TORLAKSON
State Superintendent
of Public Instruction
• Leased dark fiber added as
Telecommunications starting with the FY2011
Eligible Services List
• Allows for the lease of dark fiber as a Priority
One service, from any entity
• On the FCC Form 470, file for either Telecom or
Internet Access (per the ESL Order)
• On the FCC Form 471, select the Telecom box
if the dark fiber is provided by a telecom carrier
– In all other cases, select the Internet Access
box
Intermediate/Advanced Presentation I 2012 California Department of Education
193
Dark Fiber
Leased Dark Fiber as Priority One
TOM TORLAKSON
State Superintendent
of Public Instruction
• Dark fiber must be lit immediately
• Does NOT allow for unneeded capacity or
warehouse dark fiber for future use
• Maintenance costs of dark fiber and
installation costs to hook up the dark fiber
are eligible
– This includes charges for installation
within the property line
• Modulating electronics for leased dark fiber
are not eligible
Intermediate/Advanced Presentation I 2012 California Department of Education
194
Dark Fiber
Leased Dark Fiber as Priority One
TOM TORLAKSON
State Superintendent
of Public Instruction
• Installation costs to hook up the dark
fiber is eligible from the eligible entity
to the property line
Intermediate/Advanced Presentation I 2012 California Department of Education
195
Dark Fiber
Dark Fiber as Priority One
TOM TORLAKSON
State Superintendent
of Public Instruction
• Special Construction charges to build out
connections from applicants’ facilities to an
off-premise fiber network are NOT eligible
Intermediate/Advanced Presentation I 2012 California Department of Education
196
Dark Fiber
Dark Fiber as Priority Two
TOM TORLAKSON
State Superintendent
of Public Instruction
• Installation and Fiber costs between two
eligible buildings, not crossing a public right
of way are considered Internal Connections
Intermediate/Advanced Presentation I 2012 California Department of Education
197
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Interconnected VoIP
(Hosted; Priority 1)
Intermediate/Advanced Presentation I 2012 California Department of Education
198
Interconnected VoIP
TOM TORLAKSON
State Superintendent
of Public Instruction
• Priority One Services
– May be applied for in either
Telecommunications or Internet
Access on Form 470.
– USAC highly recommends posting in
both Telecom and Internet Access.
Intermediate/Advanced Presentation I 2012 California Department of Education
199
Interconnected VoIP
(aka Hosted VoIP)
TOM TORLAKSON
State Superintendent
of Public Instruction
200
•
Defined as a service that
1. Enables real-time, two-way voice
communications.
2. Requires a broadband connection from the
user’s location.
3. Requires Internet protocol-compatible
customer premises equipment (CPE).
4. Permits users generally to receive calls that
originate on the public switched telephone
network and to terminate calls to the public
switched telephone network.
Intermediate/Advanced Presentation I 2012 California Department of Education
200
Interconnected VoIP
• Leased VoIP or PBX equipment are NOT eligible for Priority
One funding.
TOM TORLAKSON
State Superintendent
of Public Instruction
201
• By removing the VoIP or PBX equipment, the local voice
network will cease to function. This equipment is eligible
ONLY as Internal Connections.
Intermediate/Advanced Presentation I 2012 California Department of Education
201
Interconnected VoIP
TOM TORLAKSON
• A gateway may be leased with eligible Priority One VoIP
service.
• A gateway is considered a single basic terminating device.
State Superintendent
of Public Instruction
202
Intermediate/Advanced Presentation I 2012 California Department of Education
202
Interconnected VoIP
TOM TORLAKSON
State Superintendent
of Public Instruction
203
• A multipurpose leased router may be eligible for
Priority One funding if, as seen in this example,
the internal data and voice network functions
without dependence on the leased router.
Intermediate/Advanced Presentation I 2012 California Department of Education
203
Information to provide
VOIP Vendors
TOM TORLAKSON
State Superintendent
of Public Instruction
204
1. What telephone/PBX solution is currently in place?
2. How many total VoIP or phone set users?
3. Any additional Voicemail Boxes for those that will not have a phone?
4. Do you need additional cabling drops to connect the phones to? Or,
do you already have network drops everywhere you want a phone?
5. Is a telephone number required for every handset?
6. Do you need to integrate with an existing paging system?
7. What does your current switching infrastructure look like?
a. Are they POE? b. Do they support VLAN?
8. What does your current WAN look like? (Total Sites and
Connectivity)
9. What is your current Internet Bandwidth?
10. Are you required to purchase your voice, video, distance learning
solution through an existing state or local contract? If so, what is the
name of the contract you are required to use?
Intermediate/Advanced Presentation I 2012 California Department of Education
204
Intermediate/Advanced
TOM TORLAKSON
State Superintendent
of Public Instruction
Equipment
Transfers, Disposal
and Trade-in
Intermediate/Advanced Presentation I 2012 California Department of Education
205
Equipment Transfers
Equipment Transfer Rules
TOM TORLAKSON
State Superintendent
of Public Instruction
• In general, equipment may not be
transferred for money or any other thing of
value
• A no-cost transfer may occur three years or
more after the purchase of the equipment to
other eligible entities
• No equipment transfer may occur prior to
three years from the date of purchase,
unless the eligible entity is permanently or
temporarily closing
Intermediate/Advanced Presentation I 2012 California Department of Education
206
Equipment Transfers
Equipment transfers less than 3 years
TOM TORLAKSON
State Superintendent
of Public Instruction
• Notify USAC
• Both the closing entity and the recipient
must retain records of the transaction
– Include the reason for the transfer
• Records must be kept for five years after
the date of the transfer
• Records for equipment >3 years follow the
traditional document retention requirements
Intermediate/Advanced Presentation I 2012 California Department of Education
207
Disposal of Equipment Rules
Disposal of Equipment Rules
TOM TORLAKSON
State Superintendent
of Public Instruction
• As of January 3, 2011, applicants can
dispose of obsolete equipment, but no
sooner than five years after the date the
equipment is installed
• Resale for payment or other consideration
is allowable no sooner than five years after
the equipment is installed
• Resale or disposal is prohibited before the
five years have passed
Intermediate/Advanced Presentation I 2012 California Department of Education
208
Trade-ins and Exchanges
Trade-ins and Exchanges
TOM TORLAKSON
State Superintendent
of Public Instruction
• Trade-ins of equipment may be permitted if
the E-rate funded equipment to be traded in
has been installed for five years
– This limitation does not apply for
equipment not funded through E-rate
Intermediate/Advanced Presentation I 2012 California Department of Education
209
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Miscellaneous
Intermediate/Advanced Presentation I 2012 California Department of Education
210
Miscellaneous
Miscellaneous Charges
TOM TORLAKSON
State Superintendent
of Public Instruction
• Miscellaneous charges can apply to all
service categories and are funded in the
same category of the service they are
supporting
• Training is eligible when included as part of
the contract and performed coincidently with
the installation of the new service/product or
in a reasonable time thereafter
– Training for end-users or professional
development is not eligible
Intermediate/Advanced Presentation I 2012 California Department of Education
211
Miscellaneous
Miscellaneous Charges
TOM TORLAKSON
State Superintendent
of Public Instruction
• Taxes, surcharges and other similar
reasonable charges are eligible for
discount. This includes but is not limited to :
– Universal service fund
– Excise Tax
– 911
– Local Number Portability and
– Telephone relay service
Intermediate/Advanced Presentation I 2012 California Department of Education
212
Miscellaneous
Miscellaneous Charges
TOM TORLAKSON
State Superintendent
of Public Instruction
• Other charges that are not eligible include
but are not limited to:
– Universal service administration fee
– Interest or finance charges
– Late payment fees and
– Termination fees
– See Appendix for additional Eligible
Service Items
Intermediate/Advanced Presentation I 2012 California Department of Education
213
Who to Contact?
TOM TORLAKSON
State Superintendent
of Public Instruction
• State Library: Rushton Brandis,
(916) 653-5471
[email protected]
• CDE/E-rate: Larry Hiuga,
(916) 327-4629
[email protected]
• CDE/EETT: Tech Plans: Doris Stephen,
916-324-9943
[email protected]
• K-12 HSN/Butte COE: Russ Selken
530-532-5678
[email protected]
Intermediate/Advanced Presentation I 2012 California Department of Education
214
How to join the CDE E-rate listserv
TOM TORLAKSON
State Superintendent
of Public Instruction
• Join the E-rate e-mail list to receive
updates about E-rate and the CTF
programs.
Subscribe to the E-rate listserv by sending
a "blank" message to
• [email protected].
If you would like to unsubscribe from the
E-rate listserv, send a "blank" message to
[email protected].
Intermediate/Advanced Presentation I 2012 California Department of Education
215