E-rate for California Intermediate/Advanced Applicants

Intermediate/Advanced Presentation I 2012 California Department of Education 1

TOM TORLAKSONState Superintendent of Public Instruction

E-rate for CaliforniaIntermediate/Advanced

Applicants



Agenda1. Role of CDE and State Library2. E-rate Technology Planning 3. Discount Calculations4. Eligible Services (interconnected VOIP)5. FCC Form 4706. Competitive Bidding7. FCC Form 4718. Myths & Misconceptions- CIPA9. Gifting Rules10. Form 50011. Audits12. CALNET 313. Appendices

A. California Teleconnect Fund (CTF)B. Discount CalculationsC. Eligible ServicesD. Invoice Reconciliation



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

The role of CA Dept of Ed and State Library

General Information about E-rate



Intermediate/Advanced Presentation

E-rate Technology Planning



E-rate Process

FCC Forms 472 (BEAR) & 474 (SPI)

FCC Form 486

Application Review & FCDL

FCC Form 471 & RAL

Competitive Bidding

FCC Form 470 & RNL

Technology Planning



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 E-rate 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

Technology Plan Review

http://www.cde.ca.gov/ls/et/rs/ap/county.asp

http://www.sl.universalservice.org/reference/tech/default.asp

http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp



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

4. Evaluation process to monitor progress towards goals and allows for mid-course corrections in response to new developments as they arise

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.

4 Required Elements of a Technology Plan Used for E-rate



• 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

EETT Tech Plan Cycle Dates

Technology Planning



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)

“Must Do” RemindersTechnology Planning

http://www.sl.universalservice.org/reference/tech/default.asp




• 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

Additional reminders

Technology Planning



• CDE/E-rate: Larry Hiuga, [email protected], 916-327-4629

• 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

HelpTechnology Planning

mailto:[email protected]



http://myctap.org/index.php/techplan/tpb




Questions?



Intermediate/AdvancedPresentation

Discounts



• 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

General information

Discounts



Discount Matrix

Discounts



CNIPSDiscounts – sample report



CARS

Discounts – sample report



• 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

Schools/School Districts

Calculating Your Discount



• 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

Individual Libraries


• 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

Library Systems



• 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

Non-Instructional Facilities (NIFs)Calculating Your Discount



• 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

New School Construction




• 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

Provisions 1, 2, and 3

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

Head Start

National School Lunch Program



• 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.

If USAC’s PIA Reviewer Questions Entity and/or Discount %, Request Validation Letter from CDE

Validation Letter Process

http://www.k12hsn.org/files/erate/training_material/2012/Entity_and_Discount_Validation_Template.doc

http://www.k12hsn.org/files/erate/training_material/2012/Entity_and_Discount_Validation_Template.doc

http://www.k12hsn.org/programs/erate/training_materials.php




Questions?



Intermediate/Advanced

Eligible Services List (ESL)



• 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

Categories of Service

Eligible Services



• 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

Areas of ReviewEligible Services

clanders



• 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

Overview

Eligible Services List Order



• 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

FY 2012 ESL - Consolidated List of P1 Services




• 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

ESL Order – Other highlights




• 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

ESL Order – Other highlights




Eligible Services

Priority One



– 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

Telecommunications Services

Priority One




• 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

Not Eligible as Telecom Services

Priority One



• 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

Internet Access (IA)

Priority One



• 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

Not Eligible as Internet Access

Priority One



Eligible Services

Priority Two



• 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

Internal Connections

Priority Two



Internal Connections

Priority Two



• Support for basic maintenance of eligible internal connections

• Such as:– Repair and upkeep of hardware– Wire and cable maintenance– Basic tech support– Configuration changes

Basic Maintenance of Internal Connections (BMIC)

Priority Two



• Agreements or contracts must state the eligible components covered, make, model, and location

• Service must be delivered between July 1-June 30

• Two-in-Five Rule does not apply to BMIC

Basic Maintenance of Internal Connections

Priority Two



• 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

BMIC Updated Guidance

Priority Two



• 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


Priority Two



• 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


Priority Two



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

Open Items for USAC/FCCEligible Services



• 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

Open Items for USAC/FCC

Eligible Services



• -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).

Eligible Services




FCC Form 470



• 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.

Form Summary

FCC Form 470



• 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.

Request for Proposal (RFP)

FCC Form 470



• 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.

FCC Form 470 and RFP issues

FCC Form 470



• 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.

Beware of KILLER GOTCHA’S

FCC Form 470




Competitive Bidding



• 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.

Basics

Competitive Bidding



• 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!!!

Basics

Competitive Bidding

http://www.cde.ca.gov/fg/ac/co/bidthreshold2011.asp



– 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.

NEW REQUIREMENT FOR FY2013

Competitive Bidding



• 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

Applicants Cannot

Competitive Bidding



• 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 cost-

effective solutions are available

Applicants CAN

Competitive Bidding



• 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.

Service Providers cannot

Competitive Bidding



• 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

Service Providers CAN

Competitive Bidding



• 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

Bid Evaluation

Competitive Bidding



Sample Evaluation Matrix

Competitive Bidding



• “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

AVOID Sham Bidding

Competitive Bidding



• 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.

Reminders

Competitive Bidding



• 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

Choosing a service provider

Competitive Bidding



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)

Choosing a service provider

Competitive Bidding


State Master Contracts and E-rate

• 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 (28-days, 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

• 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)

• 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• 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




Requesting FundingFCC Form 471



• 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

Purpose

FCC Form 471



• Must be filed every funding year• This is your actual request for funding• This is where you specify…Who, What,

Where, When, & How– WHO: Service providers

chosen– WHAT: Services being requested– WHERE: Service Delivery locations – WHEN: Dates for services– HOW: Costs for services and

terms

General Information

FCC Form 471



• 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)

Reminders

FCC Form 471



• 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.

Filing Strategies

FCC Form 471



– 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

Item 21 Attachments

FCC Form 471





• 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)

Item 21 Attachments

FCC Form 471



• 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

DEADLY ERRORSFCC Form 471



FCC Form 471

Receipt Acknowledgement

Letter (RAL)



– 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

Receipt Acknowledgement Letter (RAL)

FCC Form 471

http://www.usac.org/sl/applicants/step02/clerical-errors.aspx




Application Review and FCDL



E-Rate Process

FCC Forms 472 (BEAR) & 474 (SPI)

FCC Form 486

Application Review & FCDL

FCC Form 471 & RAL

Competitive Bidding

FCC Form 470 & RNL

Technology Planning



Application Review• 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!



Application Review

• 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.



FCDL• 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.



The E-rate Program

Myths and Misconceptions Debunked



• 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

Overview

Myths and Misconceptions




Technology Planning

Misconceptions



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

Technology Plan Timing

Technology Planning Misconceptions



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

Technology Plan Timing

Technology Planning Misconceptions




Eligible Services Myths



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

Internet Access – Off-campus Use




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

Understanding the Two-in-Five Rule




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

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 third-year request for violating the Two-in-Five Rule

Understanding the Two-in-Five Rule (continued)




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

Service Provider Identification Numbers


http://www.usac.org/sl/applicants/beforeyoubegin/eligible-services-list.aspx




FCC Forms 470 and 471 Misconceptions



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)

FCC Form 470 Timing




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 multi-year 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

Filing Multiple Forms




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)

Filing Multiple Forms




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

Discount Calculations


http://www.usac.org/sl/applicants/step04/alternative-discounts.aspx

http://www.usac.org/sl/applicants/step04/urban-rural.aspx

http://www.usac.org/_res/documents/sl/pdf/samples/Discount-Matrix.pdf

http://www.usac.org/_res/documents/sl/pdf/samples/Discount-Matrix.pdf



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.

Transitional Errors


http://www.usac.org/sl/applicants/beforeyoubegin/eligible-services-list.aspx



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.

Transitional Errors (PINs)





Competitive Bidding and Contracts

Misconceptions



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.

State Master Contracts

Competitive Bidding and Contracts Misconceptions

http://www.usac.org/sl/applicants/step03/evaluation.aspx



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

Choosing a Service Provider

Competitive Bidding and Contracts Misconceptions

http://www.usac.org/sl/applicants/step02/waiting-period.aspx




PIA Myths and Misconceptions



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

PIA Correspondence




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

PIA Correspondence




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

Item 21 Attachments




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.

Funding Commitment Decision Letters (FCDL)




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.

FCC Form 471 Application Status








FCC Form 486 & Invoicing

Misconceptions



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

Requirements Before Invoicing USAC

FCC Form 486 & Invoicing Misconceptions



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

Certifying CIPA Compliance on FCC Form 486


http://www.usac.org/sl/applicants/step06/cipa.aspx



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.

Understanding Invoicing Reductions and Denials


http://www.slforms.universalservice.org/EMailResponse/EMail_Intro.aspx

http://www.slforms.universalservice.org/EMailResponse/EMail_Intro.aspx




Post-Commitment Misconceptions



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

FCC Form 500


http://www.usac.org/_res/documents/sl/pdf/forms/500.PDF



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

Document Retention




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)

Operational SPIN Change RemindersPost-Commitment

Misconceptions



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

Extensions




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

AppealsPost-Commitment

Misconceptions



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

Appeals




Questions?



Intermediate/AdvancedPresentation

Children’s Internet Protection Act

(CIPA)



• SCHOOLS – By July 1, 2012, amend your 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.

New requirements under CIPA

New for Funding Year 2012



• 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

Additional Information on New Requirements

CIPA - FCC Report and Order



• “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=7022052425







• 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.





• 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:


Resolutions to the current rules detailed in the Order

CIPA – Rule Revisions





E-rate Gift Rules



• 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

Rules codified in FY 2011 in 6th Report & Order

E-rate Gift Rules



• “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.

Gift Rule Exceptions

E-rate Gift Rules



• 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

Questionable Charitable ContributionsCharitable Donations



• 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

Prizes

Conferences and Training Sessions



• “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.

Widely Attended Events

Conferences and Training Sessions




Form 500



• 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.

To request adjustment to Funding Commitment $ and/or modify Receipt of Service Confirmation:

Form 500




Service Substitutions



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-youre-done/service-substitutions.aspx

To request change in products and/or services specified in Form 471

Service Substitutions

http://www.usac.org/sl/applicants/before-youre-done/service-substitutions.aspx

http://www.usac.org/sl/applicants/before-youre-done/service-substitutions.aspx




SPIN Changes



• Pre-commitment SPIN changes: – 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-youre-done/spin-changes/default.aspx

SPIN changes: Operational vs. CorrectiveSPIN Changes

http://www.usac.org/sl/applicants/before-youre-done/spin-changes/default.aspx

http://www.usac.org/sl/applicants/before-youre-done/spin-changes/default.aspx




Audits



• 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.

Purpose of E-rate audits

Audits



• 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

EXPECT TO BE AUDITED Audits



• 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.

PREPARING FOR AUDITSAudits



1. Plan ahead for an audit or review by documenting every step of the process as the work is done.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 auditsBCAP: http://www.usac.org/sl/about/program-integrity/bcap.aspxPQA:http://www.usac.org/_res/documents/sl/pdf/audit/SL-Documents.pdf

PREPARING FOR AUDITSAudits

http://www.usac.org/sl/about/program-integrity/bcap.aspx

http://www.usac.org/sl/about/program-integrity/bcap.aspx

http://www.usac.org/_res/documents/sl/pdf/audit/SL-Documents.pdf

http://www.usac.org/_res/documents/sl/pdf/audit/SL-Documents.pdf



•H.A.T.S Visits•Helping Applicants To Succeed

• 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

Other Levels of ScrutinyAudits



• Keep for 5 years after last date of service– 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 E-rate monies they already received)

Document Retention RequirementsAlways Be Prepared for Audits




State Master Contract



• A contract that is competitively bid and put in place by a state government entity for use by others.

What is it?




• 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.

If the State files a Form 470




• 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.

Multiple Awards Schedule




• 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

If the state DID NOT file a Form 470





CALNET 2



CALNET 2 – Is your School or Library currently on CALNET 2 contract?

– 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.



CALNET 2 – If your School or Library is currently on CALNET 2 contract, then:• 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



If you are on CALNET 2, then what else can you do to prepare for Yr 2013/14? • 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.




Potential CALNET 2 Example #1:

• 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.



Potential CALNET 2 Example #2:• “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



Potential CALNET 2 Example #3:

• “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.



E-Rate for CaliforniaCALNET 3 Status



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)

CALNET 2 expires January 29, 2014

CALNET 2 Expiration



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

CALNET 3 will not be awarded before close of E-rate Form 471 application window

CALNET 3 Status



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

Applicants may use SMC SPIN for period between January 30 – June 30, 2014

Option 1: CALNET 3 State Master Contract Replacement (“SMC”)



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

Applicants may use SMC SPIN for period between January 30 – June 30, 2014

Option 1: CALNET 3 State Master Contract Replacement (“SMC”)



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

Applicants must file Form 470 for services January 30 – June 30, 2014

Option 2: Applicant Conducts its Own Form 470/Bidding Process


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

• 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.




Gotcha’s/Reminders



E-rate Applicants Reminders1. 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



More E-rate Applicants Reminders1. 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.

2. 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 E-rate funding for.

3. 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

4. Fail to anticipate & request contract changes that need to be accomplished before you submit your Form 471 for upcoming funding year.




California Teleconnect Fund

(CTF)



California Teleconnect Fund Overview

• 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/

http://www.cpuc.ca.gov/PUC/Telco/Public+Programs/CTF/



Who is Eligible for CTF?

• 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.



Who is Eligible for CTF (continued)– 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



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 Switchingo 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.



Internet Services eligible for CTF, Effective 12/1/2008:

• 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.

http://fjallfoss.fcc.gov/edocs_public/attachmatch/FCC-08-265A2.pdf



SB1102 IMPACT ON PARTICIPATING SCHOOLS AND LIBRARIES• 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



Services that are Ineligible for E-rate, but eligible for CTF

• 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 E-rate 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 PresentationAppendices








Alternative Discount Mechanisms



• 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





• Programs that meet the IEG threshold for the NSLP:– 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

Acceptable MechanismsAlternative Discount Mechanisms

• Programs that do not meet the IEG threshold for the NSLP:– Temporary Aid to Needy Families (TANF)– Title 1– Scholarship programs

Unacceptable Mechanisms



• 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 .

Sibling Match




• 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

Surveys

Alternative Discount Methods



• 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

Survey Extrapolation




• 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

Combining Alternative Discount Methods




• 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

Ineligible Discount Calculation Methods





Dark Fiber



• 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

Leased Dark Fiber as Priority OneDark Fiber



• 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

Leased Dark Fiber as Priority One

Dark Fiber



Leased Dark Fiber as Priority One

Dark Fiber

• Installation costs to hook up the dark fiber is eligible from the eligible entity to the property line



• Special Construction charges to build out connections from applicants’ facilities to an off-premise fiber network are NOT eligible

Dark Fiber as Priority One

Dark Fiber



Dark Fiber as Priority Two

Dark Fiber

• Installation and Fiber costs between two eligible buildings, not crossing a public right of way are considered Internal Connections




Interconnected VoIP(Hosted; Priority 1)



• 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.

Interconnected VoIP



200

Interconnected VoIP (aka Hosted VoIP)

• 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.



201

• Leased VoIP or PBX equipment are NOT eligible for Priority One funding.

• By removing the VoIP or PBX equipment, the local voice network will cease to function. This equipment is eligible ONLY as Internal Connections.

Interconnected VoIP



• A gateway may be leased with eligible Priority One VoIP service.

• A gateway is considered a single basic terminating device.

202

Interconnected VoIP



• 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.

203

Interconnected VoIP



204

Information to provide VOIP Vendors

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?




Equipment Transfers, Disposal

and Trade-in



• 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

Equipment Transfer Rules

Equipment Transfers



• 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

Equipment transfers less than 3 years

Equipment Transfers



• 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

Disposal of Equipment Rules

Disposal of Equipment Rules



• 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

Trade-ins and Exchanges

Trade-ins and Exchanges




Miscellaneous



• 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

Miscellaneous Charges

Miscellaneous



• 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


Miscellaneous



• 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


Miscellaneous



Who to Contact?• State Library: Rushton Brandis,

(916) 653-5471 [email protected]

• CDE/E-rate: Larry Hiuga, (916) [email protected]

• CDE/EETT: Tech Plans: Doris Stephen, 916-324-9943 [email protected]

• K-12 HSN/Butte COE: Russ [email protected]







• 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] you would like to unsubscribe from the E-rate listserv, send a "blank" message to [email protected].

How to join the CDE E-rate listserv



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