E-Rate 101: Overview of the Program

1. 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

2. 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)

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

4. 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

5. 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

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

7. 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

8. 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

9. 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

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

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

12. 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.

13. 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

14. 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

15. 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

16. 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

17. Form 470 • Competitive Bidding • The applicant must conduct a fair and open bidding process • All bidders are treated the same • All bidders have equal access to information • All bidders know what is required of them • The applicant must choose the most cost-effective offering with the price of eligible products and services being primary

18. 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

19. 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

20. Discounts Discount Matrix

21. 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

22. Contracts • Applicants must sign and datecontracts 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

23. 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

24. 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.

25. 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

26. 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.

27. 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

28. 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)

29. 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

30. 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

31. 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

32. 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