E-Rate 101: Overview of the Program

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E-Rate 101Overview of the Program

• Back to the New Basics
• Schools and Libraries Division

Washington, DC Orlando Boston New Orleans
Cleveland San Francisco Phoenix September/Octo
ber 2007
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A Guide to the Application Process
1. Create Technology Plan
2. File Form 470
3. Wait 28 days
4. File Form 471
5. PIA review and FCDL
6. File Form 486

1. Submit invoices to USAC

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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)

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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

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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

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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

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Applicant Eligibility

• Consortia
• Can include both eligible and ineligible entities
• Only eligible entities can receive discounts
• Consortium leader has record-keeping and
  administrative responsibilities

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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

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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

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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

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Eligible Services

• Priority 1
• Telecommunications Services
• Local and long distance, wireline and wireless,
  voice/data/video
• Internet Access
• Basic conduit access to the Internet

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Eligible Services

• Priority 2
• Internal Connections(switches, hubs,routers,
  wiring, cabling)
• Internal Connections fundedonly 2 times in 5
  funding years
• Basic Maintenance of Internal Connections
• NOTE End user equipment - such as
• computers, monitors, or phone sets - is NOT
• eligible

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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
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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
  writing of the technology plan and should not act
  as the technology plan approver

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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 Proposals
  (RFP), which must also be available for at least
  28 days before making a vendor selection

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Form 470
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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

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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 writing and
  signing Form 470 or representing applicant in
  bidding process

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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

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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

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Discounts

• Discount Matrix

Percent of Eligible Students Urban Rural
Less than 1 20 25
1 - 19 40 50
20 - 34 50 60
35 - 49 60 70
50 -74 80 80
75 -100 90 90
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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

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Contracts

• Applicants must sign and date contracts before
  the Form 471 is submitted
• Date can be written in contract
• Contracts can cover more than one year or contain
  voluntary 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

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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

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Form 471
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Form 471

• Once the applicant has selected a service
  provider and signed a contract (if applicable),
  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

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Receipt Acknowledgment Letter (RAL)

• 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

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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 PIAs
  questions
• Ask for clarification if you dont understand
• Service providers can assist applicants in
  responding to PIA questions about the products
  and services they are providing but not about
  other areas, such as the competitive bidding
  process and budget

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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 applicants
  approved discount rate

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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 Childrens
  Internet Protection Act (CIPA)

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Form 486
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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
• Service Start Date
• Cannot be before July 1 of the funding year

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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

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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

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Form 472
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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

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Form 474
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Questions?