Introduction to E-rate I 2013 Schools and Libraries Fall Applicant Trainings 1

E-Rate Overview Minnesota Fall 2013 Applicant Trainings

Mary Mehsikomer

E-rate Program

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• Commitments are made by funding year (FY), which runs from July 1 through the following June 30.

• USAC refers to the funding year as the year in which most services will begin, e.g., FY2013 is July 1, 2013 to June 30, 2014.

• Minnesota Fiscal Year FY2013 would be July 1, 2012 – June 30, 2013.

Timeline

General Information

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• The FCC capped program funding at $2.25 billion per year, until 2010 when the FCC began to adjust the cap annually for inflation

• Once a year, the FCC is required to roll over all funds that are collected and are unused from prior funding years to the next full funding year

Budget

General Information

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FY2013 Demand Estimate

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• Who is eligible for funding?– Elementary and secondary schools and school

districts

• Non-traditional facilities (conditionally by state)

– Libraries and library systems– Consortia – groups of eligible entities that band

together to aggregate demand and negotiate lower prices

Eligibility

General Information

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• 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.

Discounts

General Information

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Discount Matrix

General Information

INCOME % of students eligible for NSLP

URBAN LOCATION Discount

RURAL LOCATION Discount

If the % eligible is... ...and you’re in an URBAN area, your discount will be...

...and you’re in a RURAL area, your discount will be...

Less than 1% 20% 25%

1% to 19% 40% 50%

20% to 34% 50% 60%

35% to 49% 60% 70%

50% to 74% 80% 80%

75% to 100% 90% 90%

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• Priority 1 (P1): funded first– Telecommunications Services – Internet Access – Telecommunications

• Priority 2 (P2): funded second and starts with neediest applicants– Internal Connections – Basic Maintenance of Internal Connections

Categories of Service

General Information

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Letters

General Information

Each time applicants file a program form, USAC sends you a notification or acknowledgement letter.

• Letters are color-coded by funding year

– 2013

– 2014

– 2015

• Note: When storing documents, USAC encourages you to separate your program forms and letters by funding year to better organize them.

PinkBlue

Canary

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Introduction to E-rate

Technology Planning

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• A technology plan must contain the following 4 elements:– Goals and strategies for using technology to improve

education or library services– Needs assessment– Staff training– Evaluation plan

• Technology plans must be approved by a USAC-certified Technology Plan Approver (TPA).

Technology Plans (P2 Services Only)

Technology Planning

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• In Minnesota, the state Telecommunications/Internet Access Equity Aid program requires a technology plan be on file with the Minnesota Department of Education.

• Minnesota Statutes 125B.26

• Criteria on MDE Website

• MDE Program Finance does check for tech plans

Minnesota

Technology Planning

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• Update Technology Plan

• Form 470 – File anytime after July 1

– Must be posted for 28 days or longer

• Form 471 – File within window

– January 9, 2014 – March 26, 2014

• Program Integrity Assurance Review (PIA)

• Funding Commitment Decision Letter (FCDL)

Steps and Deadlines

E-Rate Process Start to Finish

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• Form 486

– 120 days after FDCL or Service Start Date (whichever is LATER)

• File for Reimbursement (BEAR) or receive discounts directly from provider (SPI)

– BEARS are due 120 days after the last date of service

– Recommend quarterly filing

• File Form 500 for commitment amount changes

Steps and Deadlines (Continued)

E-Rate Process from Start to Finish

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• File for Reimbursement (BEAR) or receive discounts directly from provider (SPI)

– BEARS are due 120 days after the last date of service

– Recommend quarterly filing

• File Form 500 for commitment amount changes

Steps and Deadlines (Continued)

E-Rate Process Start to Finish

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• Opens your competitive bidding process• Notifies potential bidders of the types and quantities of

services that you need• Must be posted on the USAC website at least 28 days before

filing the FCC Form 471

Note: Request for Proposals (RFPs) or other supplemental documents may be issued in addition to describe specific needs and circumstances. If you issue an RFP (or provide supplemental documents), both the RFP/supplemental documents and FCC Form 470 must be available for at least 28 days, and bidding cannot close until the latter of the two end dates.

FCC Form 470 Purpose

Requesting Services

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• No one other than the applicant or an authorized representative of the applicant should prepare, sign or submit the FCC Form 470 or certification.

• The FCC Form 470 must describe the desired products and services with sufficient specificity to enable interested parties to submit bid responses.

• All potential bidders must have access to your FCC Form 470, RFP (or other supplemental documents describing the procurement, if you have them).

• You must evaluate the incoming bids fairly and equally.

Competitive Bidding Requirements

Competitive Bidding

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• RFPs are not required for E-rate

• Minnesota requires school districts to do formal competitive bidding for any purchase over $100,000

• State and local procurement policies must be followed

• See Minnesota Statutes 471.345

• Check with your Business Manager

Minnesota

Competitive Bidding

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Competitive Bidding

Factor Points Available Vendor 1 Vendor 2 Vendor 3Price of the ELIGIBLE

products and services 30 15 30 25

Prior experience w/vendor 20 20 0 20Prices for ineligible services,

products and fees 25 20 15 25Flexible Invoicing: FCC Forms

472 or 474 15 0 15 15

Local or in-state vendor 10 10 8 7

Total 100 65 68 92

The price of the eligible products and services must be the most heavily weighted factor in your evaluation of bids

Sample Matrix

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After the 28-day waiting period closes, you can:

1.Evaluate bids received

2.Choose your service provider(s)

3.Sign a contract (if applicable)

4.Submit an FCC Form 471.

Competitive Bidding Process

Competitive Bidding

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• Identifies the service providers and eligible services you have chosen on funding requests

• Identifies the eligible schools and libraries that will receive services

• Calculates how much support you seek for the funding year using your discount calculation information

FCC Form 471 Purpose

Ordering Services

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• Notifies USAC that your eligible services have started or been delivered and invoices for those services can be processed and paid

• Provides the name of the TPA that approved your technology plan (if applicable)

• Reports your status of compliance with Children’s Internet Protection Act (CIPA)—a law with specific requirements on Internet safety policies.

FCC Form 486 Purpose

Begin Receiving Services

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• Applicants and service providers receive an FCDL from USAC for the services being invoiced.

• Applicants must file an FCC Form 486 and receive an FCC Form 486 Notification Letter.

• Service providers must file a Service Provider Annual Certification (SPAC) FCC Form 473 each funding year.

Requirements Before Invoicing USAC

Invoicing USAC

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1) Billed Entity Applicant Reimbursement (BEAR) FCC Form 472: filed by applicant after services have been paid in full OR

2) Service Provider Invoice (SPI) FCC Form 474: filed by service provider after the applicant has been billed for the non-discount portion of eligible services.

Note: Applicants can choose their method of invoicing; service providers cannot force applicants to use a particular method.

Two Methods of Invoicing

Invoicing USAC

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•Consolidated telecommunications and Internet access services into one field for Priority One services in Block 2

•Clarifying text in Block 2 regarding Request For Proposal (RFP) services

•Additional text in the certification regarding document retention in Block 5 – certifies you will keep documentation at least five years

Form 470

Changes for Funding Year 2014

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•Removed Block 2 – Impact of Services on schools and libraries

•Request for additional information regarding broadband connectivity on an FRN level

•Additional text in the certification regarding document retention in Block 6

Form 471

Changes for Funding Year 2014

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Additional Block 5 reporting requirements:

•For Broadband and other connectivity services only

– T-1, fiber, DSL, cable, cellular wireless hotspots, satellite

•Does not apply to non-broadband or other connectivity services

– Cellular service, web hosting and email service

•Complete information for every applicable funding request

Form 471

Changes for Funding Year 2014

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• Wireless questions – percentage of rooms with access

Item 25 c - For consortia and statewide applications, do the connections in this FRN include the last mile connection to the school or library? Yes No

• If no, are these connections only for backbone connections? Yes No

• Documentation certification – certifies you keep documentation for at least five years

Form 471

Changes for Funding Year 2014

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• Document retention certification updated (at least five years)

• Item 6e, CIPA Waiver for Libraries in FY2004, consolidated with Item 6d, the general checkbox for CIPA waivers

• Minor text edits

Form 479 – CIPA Certification - Consortia

Changes for Funding Year 2014

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• Name changed to Receipt of Service Confirmation and Children’s Internet Protection Act and Technology Plan Certification Form

• Item 6C, CIPA Waiver for Libraries in FY2004, consolidated with Item 6B, the general checkbox for CIPA waivers

• Item 8, technology plan certification, updated• Item 10, document retention certification updated• Minor text edits

Form 486

Changes for Fund Year 2014

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Text added to Item 6B to inform libraries that need to make this waiver request to do so using the CIPA waiver in Item 6B

References to FCC Form 479 Item 6e (CIPA waiver for libraries in FY2004) removed from FCC Form 486 Item 11f and 11g CIPA certifications

• Document retention period updated to provide flexibility in the event the documentation retention period is changed in the FCC rules

• Minor text edits – adding FCC before form names

Form 486 – Continued

Changes for Funding Year 2014

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Changes for Funding Year 2014

Form 500•Name changed to Funding Commitment Adjustment Request Form•Blocks added for:– Services adjustment – service start date, contract

expiration date, and service delivery extension requests

– FRN cancellation or reduction– Equipment transfer notifications

•Document retention certification updated

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Changes for Funding Year 2014

Block 2: Services Adjustment

•Request service delivery extension

NOTE: Applicants – not service providers – must request this extension (see Report and Order FCC 01-195 and 47 C.F.R. Section 54.507)

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Changes for Funding Year 2014

Form 472 (BEAR)

•“Reimbursement Form Number” moved to top and renamed “Applicant Form Identifier”•“Reimbursement Date to USAC” moved to Block 3•Discount column added to Block 2•Some form items renumbered due to the above changes•Extraneous or confusing text removed•Certification language added (perjury)

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E-Rate Website

• Use tools on SLD website to find information– Billed Entity Numbers– Data on your applications– Form 471 and Form 470 numbers– Funding Commitment Status – Online copies of Form 470 and Form 471 – More – http://www.usac.org

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Phone: (888) 203-8100

Fax: (888) 276-8736

Website: www.usac.org/sl

In Minnesota, you can also contact Mary Mehsikomer at mary.mehsikomer@ties.k12.mn.us or by 651-999-6510 or your regional telecommunications access coordinator

With questions, please contact USAC

Contacts

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Questions?