E-Rate 101 Overview of the Program

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 (midNovember 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. 12 www.usac.org 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 costeffective 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% 40% 50% 60% 80% 90% 20 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 contracts before the Form 471 is certified – Date can be written in contract  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. 24 www.usac.org 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. 26 www.usac.org 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