E-Rate 101: Overview of the Program

Training for Success Schools and Libraries Division Washington, DC • Orlando • Boston • New Orleans • Cleveland • San Francisco • Phoenix September/October 2007 www.usac.org

Overview

         Eligibility Eligible services Technology planning Requesting services (Form 470) Discounts Ordering services (Form 471) PIA Review and commitments Confirming services (Form 486) Invoicing (Form 472 or Form 474) 2 www.usac.org

Funding Timetable

 Funding commitments are made by funding year (July 1 – June 30) – Recurring services received July 1 – June 30 (12 months) – Non-recurring services delivered and installed July 1 – September 30 (15 months)  The Window: Form 471 filing window (mid November to early February before the start of the funding year)  We encourage you to file online 3 www.usac.org

Applicant Eligibility

 To be eligible, a school: – Must meet the statutory definition of an elementary or a secondary school in the No Child Left Behind Act of 2001 – Must not be operating as a for-profit business – Must not have an endowment exceeding $50 million 4 www.usac.org

Applicant Eligibility

 To be eligible, a library: – Must be eligible for assistance from a State library administrative agency under the Library Services and Technology Act – Must not be operating as a for-profit business – Budget must be completely separate from any schools 5 www.usac.org

Applicant Eligibility

 Consortia – Can include both eligible and ineligible entities – Only eligible entities can receive discounts – Consortium leader has record-keeping and administrative responsibilities 6 www.usac.org

Service Provider Eligibility

 Form 498 (contact information) – Request a Service Provider Identification Number (SPIN) – Provide/update contact information  Form 473 (annual certification) – Must be filed for each funding year before USAC will pay invoices 7 www.usac.org

Service Provider Eligibility

Telecommunications Carriers  Must provide telecommunications services on a common carriage basis  Must file Form 499A every year and may be required to contribute to the Universal Service Fund 8 www.usac.org

Eligible Services

Four categories of eligible services  Priority 1 (funded first) – Telecommunications Services – Internet Access  Priority 2 (funded beginning with neediest applicants first) – Internal Connections – Basic Maintenance of Internal Connections 9 www.usac.org

Eligible Services

 Priority 1 – Telecommunications Services • Local and long distance, wireline and wireless, voice/data/video – Internet Access • Basic conduit access to the Internet 10 www.usac.org

Eligible Services

 Priority 2 – Internal Connections (switches, hubs, routers, wiring, cabling) • Internal Connections funded

only 2 in 5 funding years

– Basic Maintenance of Internal Connections

NOTE:

End user equipment - such as computers, monitors, or phone sets - is NOT eligible 11 www.usac.org

Technology Plan

 Applicants must develop a technology plan – Use telecommunications services and information technology to achieve educational goals and/or library improvements  A plan

IS

required for discounts on any products or services other than “Basic Telephone Service” and voice mail.

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Technology Planning

 Must contain five elements: – Goals/Strategies for using technology – Professional development – Needs assessment – Evaluation process – Sufficient budget Make sure your technology plan is written at the time the Form 470 is filed 13 www.usac.org

Technology Planning

     Must be written before Form 470 is filed Must cover all 12 months of the funding year Should not cover more than 3 years Must be approved by a USAC-certified Technology Plan Approver (TPA) by the start of services or the filing of Form 486, whichever is earlier Service providers should not be involved in the creation of the technology plan and should not act as the technology plan approver 14 www.usac.org

Form 470

Form 470 – Services Requested  Filed by applicants to define desired services and open the competitive bidding process  Must be posted on the USAC website for at least 28 days before selecting service provider and/or signing a contract  Form 470 request must be based on the technology plan  Applicants can also issue a Request For Proposal (RFP), which must also be available for at least 28 days 15 www.usac.org

Form 470

Multi-year or annual posting  Can be filed once for multi-year contracts or contracts with voluntary extensions, but Form 470 and RFP must indicate intent  Tariffed or month-to-month services must post Form 470 annually  Service providers are prohibited from filing and signing Form 470 or representing applicant in bidding process 16 www.usac.org

Form 470

 Competitive Bidding – The applicant must conduct a fair and open bidding process • All bidders are treated the same • All bidders have equal access to information • All bidders know what is required of them – The applicant must choose the most cost effective offering with the price of eligible products and services being primary 17 www.usac.org

Receipt Notification Letter

Receipt Notification Letter (RNL)  Issued by USAC after Form 470 is posted  Provides important information – Allowable Vendor Selection/Contract Date (28 days after posting)  Offers opportunity to make allowable corrections 18 www.usac.org

Discounts

 Schools and libraries can receive discounts on eligible services.  Discounts range from 20% - 90% on eligible products and services  Discounts are based on: – Percentage of students eligible for the National School Lunch Program (NSLP) – Urban or rural location of school or library 19 www.usac.org

Discounts

Discount Matrix Percent of Eligible Students Less than 1% 1% - 19% 20% - 34% 35% - 49% 50% -74% 75% -100% Urban 20 20% 40% 50% 60% 80% 90% Rural 25% 50% 60% 70% 80% 90% www.usac.org

Discounts

  Calculating Discount Methods – Primary measure: NSLP – Alternative discount mechanisms Shared Discounts – School districts use the weighted average of the discounts of individual schools in the school district – Libraries use the simple average discount of the school district in which they are located – Consortia use the simple average of the consortium members 21 www.usac.org

Contracts

 Applicants must

sign and date

the Form 471 is certified – Date can be written in contract contracts before  Contracts can cover more than one year or contain extensions, but these options must be indicated in the establishing Form 470  Tariffed and month-to-month services do not require a contract, but they are considered contracted services if a contract is signed 22 www.usac.org

Form 471

Form 471 – Services Ordered  Contains specific information on services ordered, quantities, from whom, at what price  Shows discount rate calculation and lists entities receiving services  Applicant certifies compliance with rules and verifies that it has the necessary resources to make effective use of the discounted services  Must be filed each year within the filing window 23 www.usac.org

Form 471

   Service providers are encouraged to: – Provide guidance to the applicant on its services and functionality – Assist with providing information for the Item 21 attachment and other information Service provider should always provide correct SPIN and contact information Service providers should avoid any involvement in the bidding process except as bidders and should not answer any questions regarding the bidding process.

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Receipt Acknowledgment Letter (RAL)

 Issued by USAC to applicants and service providers after Form 471 is certified  Confirms the filing of the Form 471 and provides the details of the funding requests  Offers an opportunity to make allowable corrections 25 www.usac.org

PIA Review

 Program Integrity Assurance (PIA) checks for compliance with program rules, eligibility of entities and services, verification of service types/costs – Provide complete and prompt responses to PIA’s questions – Ask for clarification if you don’t understand – Service providers can assist applicants in responding to PIA questions about the products and services they are providing but not about other areas.

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Funding Commitments

   USAC issues Funding Commitment Decision Letter (FCDL) to applicants and service providers when PIA review is complete Funding status by Funding Request Number (FRN): – Funded (includes modifications) – Not funded – As yet unfunded (applicant FCDL only) – Canceled Funds approved for specific services from specific service providers at the applicant’s approved discount rate 27 www.usac.org

Form 486

Form 486 – Services Confirmed  Notifies USAC that services have started and invoices can be paid  Applicant certifies that its technology plan meets program requirements  Applicant certifies its status under Children’s Internet Protection Act (CIPA) 28 www.usac.org

Form 486 Form 486

 Filed online or postmarked no later than – 120 days after the Service Start Date or – 120 days after the date of the FCDL, whichever is later   There may be a penalty for filing late Service Start Date – Cannot be before July 1 of the funding year 29 www.usac.org

Invoicing

Form 472 or 474 – Services Invoiced  Requests reimbursement from USAC for discount on cost of services delivered  Filed online or postmarked no later than – 120 days after the last date to receive service or – 120 days after the date of the Form 486 Notification Letter, whichever is later  Two options for requesting reimbursement 30 www.usac.org

Invoicing

Form 472 Billed Entity Applicant Reimbursement (BEAR) Form – Filed if applicant PAID for services in full – Reimbursement handled through service provider – Cash or credit reimbursement – Service provider must reimburse applicant within 20 days of receipt of funds 31 www.usac.org

Invoicing

Form 474 Service Provider Invoice (SPI) Form – Filed by service provider – Applicant gets discounted bills – Submitted AFTER applicant has received service and been billed by service provider 32 www.usac.org