Transcript E-rate Update and Refresher

E-rate Update
for Veteran Applicants
Funding Year 2014
Presented by Julie Tritt Schell
PA E-rate Coordinator
For the Pennsylvania Department of Education
Fall 2013
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How to Ask Questions
• Ask questions 2 ways:
– Text questions using tool on left side of the
window.
– Raise hand using the tool next to your name and I
will call on you to use the mic.
• Also, if you did not list your full name and
school/library as your user id, please provide that
information in the chat box now.
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Before We Begin...
 If you’re not a member of the PA E-rate Listserve, e-mail Julie
at [email protected]
 If you need beginners’ training, register at:
http://www.e-ratepa.org/training_outreach.htm
last workshop on Nov. 8 – Harrisburg Area (IU 15)
 Or a 2-hour beginners’ webinar will be presented on
December 4 from 1 - 3
 No registration required
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Agenda
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What’s new for FY 2014
Important reminders
Funding predictions for FY 2014
E-rate 2.0 Reform update
FY 2012, 2013, 2014 filing information
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Changes for FY 2014
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Window Dates
Eligible Services List
New Forms 470 and 471
PEPPM Eligibility
New RFP Definition
Multiple Award Contracts
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Funding Year 2014 Window Dates
• Form 471 Filing Window is expected to open
on or about January 8 and close on or around
March 18
• Form 470’s can and should be posted now
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Eligible Services List 2014
 Eligible Services List for FY 2014 has been
approved by the FCC. The following minor
change was included:
– Applicants may seek web hosting services from a
single provider and may not request funding for
multiple web hosting providers (i.e., there can be
only one host of a school’s basic website)
– Interactive webhosting features, such as blogging,
are not eligible as stand-alone services
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Changes to Form 470
• Use old form until new one comes online
(expected to be the end of November)
• New form will consolidate
Telecommunications and Internet into a single
“Priority 1 Services” category on the Form 470
– Must continue to distinguish between
Telecom/Internet on the Form 471
– If you select the wrong category on the 471, PIA
will not deny, but will reach out to you and ask
you to change
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New 471 Coming, Too
• New 471 will be available when window opens
in January
• Biggest Block 2 removed in lieu of other
questions in Block 5
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Form 471, Block 5 Additions
• If your Block 5 funding requests broadband or other
types of connectivity, you must complete the datagathering chart and questions b and c
– This includes mobile broadband/data services
• If your Block 5 is NOT for broadband services, you
should check the box and then skip the page
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Form 471, Block 5, 24 a
Type of Connection
Number of Lines
Fiber
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Download Speed
Per Line (in mbps)
1000 mbps
Cable Modem
T-1 Line
2
1
10 mbps
1.5 mbps
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Form 471, Block 5, 24 b
1. If the Internet access is provided by WIRED
connections, what percentage of the
classrooms or library’s public areas will have
access? ______ %
2. If the Internet access is provided by Wi-Fi
connections, what percentage of the
classrooms or library’s public areas will have
access to the Wi-Fi signal? ______ %
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Form 471, Block 5, 24c
• For consortia applications, do the connections
in this FRN include the last mile connection to
the school or library? Yes or No
• If the answer is NO, are the connections in this
FRN only for backbone connections? Yes or No
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PEPPM Not Eligible for FY 2014
• For several reasons directly related to new E-rate rules and
interpretations, the PEPPM contract will not be eligible for use
beginning in Funding Year 2014
• Therefore, schools and libraries must:
– Post their own Form 470s for P2 equipment
– Simultaneously bid in local newspapers
– Evaluate all vendor proposals received
– Obtain board approval (pending E-rate funding)
– Sign a contract with the awarded vendor
• Be sure to build-in extra time to complete these tasks
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New RFP Definition
• At the USAC training this year, it was stressed that if
an applicant posts a 470 and then provides
additional written instructions or information to
bidders, this would constitute an RFP for E-rate
purposes and therefore the box indicating you have
an RFP should be used on the 470
– Providing building addresses is ok
– Answering written questions from vendors is ok
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Awarding Contracts to 2 Vendors
• Applicants cannot request funding for the same
service from multiple service providers
– FCC believes that in the same procurement there can
only be one most cost effective bid
• Service from different vendors from different
procurements should be fine
• USAC may deny if you select 2 cellular providers
under the same procurement where they had
different pricing
– Service territory/quality issues would be valid reason
– Dual Internet access FRNs issued under different
procurements also should be a valid reason
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Important Reminders...
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Bid Disqualification Reasons
• Must specify bid disqualification reasons in
Item 13 of Form 470
– Must be yes/no and cannot be scored
• Examples:
– Bid submitted after Allowable Contract Date
– Service provider must be willing to provide discounted bills
– Proposals must be able to provide service to all district
buildings
– Proposals must guarantee that district can retain existing
phone numbers
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Bid Equivalent Products
• 470s/RFPs cannot be manufacturer-specific
– known as ‘Queen of Peace Decision’
• Must use the words “or equivalent” or “or
compatible”.
For example:
NOT OK: ‘Cisco 3750 Switch’
OK: Cisco 3750 Switch or equivalent
• Must evaluate “equivalent” bids received
– In bid evaluation, may consider other factors, such as the
amount of staff training required to support alternate
manufacturer equipment
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Technology Plan Approvals
 Technology plans ONLY required for entities applying
for Priority 2 funding
 Public schools – PDE approves
 PDE requires usage of Comprehensive Planning Process for
tech plan approval
 Submission by November 30 for plans expiring June 30,
2014 or for CPP Phase 2 schools
 CPP/Technology Plan webinar held last October and PP is
posted on the PA E-rate website under ‘Trainings and
Outreach’
 Only pertains to public school entities
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Off-Campus Internet/Data Usage
Please remember:
No off-campus usage of E-rate-funded data or Internet service
is permitted,
even if it’s being used for educational purposes
– Includes 3g/4g service, aircard service
– Cellular service usage (only) is eligible for off-campus
usage, and only if used for educational purposes
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Bundled VOIP Handsets
• The eligible services list states:
“The following charges are NOT ELIGIBLE for E-rate support:
End User Equipment. Support is not available for end-user
equipment.”
• Be wary of vendors trying to bundle phone
handsets with VOIP service, calling the phones,
“free”
– Leased gateway or router is eligible
• FCC going to issue more formal guidance in the
next few months on this issue
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Allowable SPIN Changes
 Can no longer switch vendors because of lower price
 Some vendors were abusing lax SPIN change rules and not
bothering to participate in 470 bidding process
 Legitimate reasons include:
 Breach of contract
 Service provider is unable to perform
 Bankruptcy
 Delayed provision of new service
 Must select vendor that received the next highest point value in
the original bid evaluation, assuming there was more than one
bidder
 USAC will require you to submit bid evaluation as proof
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Questions Thus Far?
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Should You Apply for P2 Funding?
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Year 1 -- funded to 70%
Year 2 – all funded
Year 3 – down to 82%
Year 4 – down to 87%
Year 5 – down to 81%
Year 6 – down to 70% - significant rollover funds
Year 7 – down to 81%
Year 8 – down to 80%
Year 9 – down to 86%
Year 10 – down to 81% - $650M rollover
Year 11 – down to 87% - $600M rollover
FY 2009 – down to 77% - $900M rollover
FY 2010 -- all funded - $1.15B rollover + inflation
FY 2011 – down to 88% - $850M rollover + inflation
FY 2012 – down to 90% - $1.05B rollover + inflation
FY 2013 – no funding for P2 (but no formal decision to deny at 90% either)
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Funding Predictions for FY 2014
Let’s look at FY 2013
• $2.38 billion available
• Demand for Priority 1 (telecom and Internet) is $2.709 billion
– an increase of 10.8% from last year
– FCC rolled over $450M in unused funds from prior years to be
able to fund all eligible Priority 1 requests
• Demand for Priority 2 (internal connections) at 90% discount level
is $1.76 billion
• If P1 grows again by 10%, P1 demand will be almost $3 billion
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Funding Predictions for FY 2014
• P1: Doubtful that FCC would not find funding
to cover all P1 requests
• P2: There is very little chance that any P2
funding will be available for P2 in FY 2014
unless the FCC institutes major reforms
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E-rate 2.0 NPRM
 In July 2013, FCC released E-rate 2.0 Notice of Proposed
Rulemaking (NPRM)
 Initial comments due September 16; Reply comments due
November 8
• None of the proposals/topics is final.
 FCC is seeking feedback from the applicant/vendor community
whether they are on the right track and why/why not.
• Some of the topics are actual proposals; others are issues for
which they are seeking comments.
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NPRM Resources Page
• http://e-ratepa.org/erate_2oh.htm
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E-rate 2.0 Reform
• Change priorities so that high-capacity
broadband and the associated equipment
needed to disseminate that broadband to and
within those buildings becomes the top priority
– All schools should be eligible for networking
equipment, not just the 90% schools
• All other services, including voice, and all
voice/video equipment would become Priority 2
or phased out altogether
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E-rate 2.0 Reform
• Allow fiber to be ‘purchased’ with E-rate funds
if it’s the most cost effective
• Consider whether the following services
should be eliminated:
– aircards/3G/4G service
– basic maintenance
– webhosting and hosted e-mail service
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E-rate 2.0 Reform
• Change funding distribution model
• Options:
– Revise discount matrix to adjust discounts
downward at all levels
– Move to a per-pupil formula
– Move to an upfront grant formula
• District-wide discount calculations
• Change definition of rural
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E-rate 2.0 Reform
• Should CIPA requirements be expanded to
include personal-owned devices used on
school campus and school owned devices
used off campus?
• Should smartphones and eReaders be
considered computers and subject to CIPA?
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E-rate 2.0 Reform
• Increase the size of the fund
• Establish connectivity goals
 INTERNET connectivity goal of 100 Mb per 1000 users by
2014 (increasing to 1 Gb per 1000 users by 2017).
 WAN connectivity goal of 10 Gb per 1000 users by 2017.
• Streamline the program
• Direct BEAR payments to applicants
• Expand document retention requirements
• Permit multi-year 471s
• Create incentives for consortia purchasing
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Filing Comments w/the FCC
• Deadline to submit comments is September 16, with
reply comments due November 8
• Comments should:
 Include your organization’s name and date on each page.
 Use a table of contents, regardless of the length of the
submission.
 Track the organization set forth in the NPRM in order to
facilitate or internal review process (i.e., refer to paragraph
numbers from the NPRM).
 Begin with a short and concise summary of your argument.
 Be submitted in .PDF format.
 Helpful filing guide available at:
http://e-ratepa.org/erate_2oh.htm
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Funding Years
2012, 2013, 2014...
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FY 2012 (E-rate Year 15)
Funding Year 2012 ended June 30, 2013 for recurring services
 Deadline for submitting BEARs (Form 472) was Monday,
October 28, 2013, but everyone has been granted an
extension through October 28, 2014
 List of affected entities sent to listserve
▪ If you’re on this list and you already submitted your
BEAR, you’re likely listed because either USAC hasn’t yet
mailed your BEAR check, your vendor hasn’t certified
your online BEAR, or USAC is going to $0-fund it
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Reminder about Online BEARs
How do you know if your vendor has certified your Online
BEAR?
 After you submit an online BEAR, you will receive 2 e-mails:
 Immediately after you submit
 After the vendor certifies the BEAR
 If you haven’t received the second e-mail, contact your vendor to remind
them to certify by deadline (and make sure the can certify online BEARs)
 To track your BEARs (paper or online) using the Online System, go back to
the Online BEAR page and click on Track Form
 After submitted by applicant to vendor: Pending Validation
 After certified by vendor: Passed Validation
 After paid by USAC: Completed
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$0.00-funded BEARs
• When you receive the white BEAR notification letter, be sure
to open ASAP
• If the amount on the first page says $0.00-funded, it does not
mean ‘denial’
• Create a new BEAR, correct the mistake and resubmit
• Most common reason for $0.00-funded BEARs is listing that
the service started 7/1/2013, instead of 7/1/2012
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Calculating BEAR Amounts
 When determining the amount to list in Column 14 on your
BEAR, be sure to subtract ineligible charges, such as:
 Varies by vendor, but these are known to be ineligible:
 Property Tax Fees
 Universal Service Administrative Fee
 USF fees themselves ARE eligible
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Late payment or finance charges
USF Cost Recovery Fees
Paper statement fees
Equipment charges (on P1 bills), such as cell phones
Equipment insurance fees
Directory listing fees
Non-published phone number fees
Payphone service
Personal usage
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FY 2013 (Year 16) Details
 For services rendered 7/1/2013 - 6/30/2014
 FY 2013 is PINK
 53% of PA Priority 1 FRNs funded as of 10/10/2013
 USAC very behind other years
 File the 486 after FCDL arrives
 Request discounted bills from vendors, if desired
 Watch PA E-rate Listserve closely
Is your Form 486 due? Check the list!
Haven’t been funded? E-mail the USAC Ombudsman
 [email protected]
 BEN and 471 #
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FY 2014 (Year 17) Details
For services rendered 7/1/2014 - 6/30/2015
 FY 2014 is BLUE
471 application window will likely open on or about
January 8 and will close on or around March 18
 Form 470’s being accepted now!
 Don’t wait until Jan to file, especially if you need
to take contracts to your board
 File by Thanksgiving!
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Don’t forget:
 You must post a 470 for every service, every year,
unless.....
You are in a multi-year contract that was originally
competitively bid using a Form 470
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E-Certification/PINs*
 E-rate PINs can be used to file E-rate forms online
 PIN assigned to a person and is specific to that entity while
employed at that entity
 Not given to an entity
 No way to request a PIN
 Must sign a paper certification of a 470, 471 or 486
 SLD will mail them a PIN in a small white mailer
 Can still submit these forms online, but cert page must be signed and
mailed to USAC
 PIN then may be used to 470, 471, 486, and BEAR Forms
HINT: Don’t make the BEAR Form the first one you sign as USAC
will issue a BEAR-only PIN
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Where Can I Look For Information?
• www.eratecentral.com/us/stateInformation.asp?state=PA
• Enter your E-rate Billed Entity Number in upper left corner
• Website shows
–All FRNs
–Every Funding Year
–What Has Been Filed
–What Has Been Committed and Disbursed
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E-rate Help
 SLD
 Client Service Bureau (CSB)
 E-rate “Help Desk” where applicant & service providers
can get answers to questions
 Accessed via 888-203-8100
 ‘Submit a Question’ on SLD website
 PA E-rate Coordinator
 E-mail [email protected]
 www.e-ratepa.org
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Questions?
The end!
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