Florida E-Rate Training and Workshop FY 2012 Alford McKenzie Sylvia Norton

1. Florida E-Rate Training and Workshop FY 2012 Alford McKenzie Sylvia Norton Tallahassee January 10, 2012

2. Agenda • Division of Telecommunications Overview • Broadband Grant Overview • Introductions • Overview of E-rate • Basic application and funding cycle • State Master Contracts • Updates and changes • Meet with DMS/DOE/DOS • Questions (anytime)

3. Portfolio of Services Florida Information Resource Network (FIRN) Hosted Fax Service Remote Virtual Private Network Hosted Voice over IP Premise Switches (STEPS) Voice Conference Data Center Local Area Network Remote Broadband Service Wireless Smart Phone Toll-Free Hosted Interactive Voice Response Video Conference Broadband MyFloridaNet Wireless Air-Card Local Phone Service Long Distance Web Conference Telecom. Infrastructure Services (TIPS) Data Center Wide Area Network Data Network Services Wireless Data Services Voice/Video Services Infrastructure Data Center & Offices

4. Broadband Grant Program $8.8M Grant National Telecommunications Administration To increase Florida’s Participation in the Digital Economy • Increase Useful Knowledge • Increase Collaboration • Increase Effective Use of Resources • Increase Funding for Technology • Grants Assistance resources to Anchor Institutions • Library Technology Assessments for 180 Libraries • Local Regional Broadband Planning • Broadband Data Collection and Mapping • E-Rate Assistance resources

5. Who Are We? Introductions • Department of Management Services (DMS) • Division of Telecommunications (DIVTEL) • Department of Education (DOE) • Office of Technology and Information Services • Department of State (DOS) • Division of Library & Information Services • School and Library Applicants

6. FY 2010 Florida E-Rate Funding* • 3,740 Funding Requests • Average Statewide Discount:77.9% $179,675,073 (Requested Amount) $85,876,592 (Funded Amount) $90,257,222 (Unfunded Amount) $3,541,259 (Amount Pending USAC Decision) $58,089,178 (Disbursed Amount to Date) $27,787,414 (Amount Approved but Not Yet Disbursed) * As of 1/4/12 FY 2012 FUNDING = MAXIMIZE $$$

7. Why Are We Here? • To help Florida schools and libraries understand E-Rate rules and procedures in order to maximize funding • To assist Florida schools and libraries in analyzing their existing utilization and application strategies to ensure optimal results • To represent Florida’s interests in E-Rate policymaking proceedings & forums

8. How We Can Help… We Provide Support at No Cost to You! Types of Assistance We Offer: • Guidance, Updates and Reminders • Individual Assistance • Training • Workshops • Webinars • Communication • Facebook • Listserv • Twitter • Website • eratehelp@my.dmsservices.com

9. Overview of the E-Rate Program • Federal program established by 1996 Telecommunications Act • Discounts: 20% - 90% on eligible products and services • $2.25 billion annually (adjusted for inflation) funded through USF fees • The Schools and Libraries Program of the Universal Service Fund, which is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC). • Funding Year (FY) runs from July 1 through the following June 30 • USAC refers to the funding year as the year in which services will begin (i.e. FY2012 is July 1, 2012 – June 30, 2013)

10. Simple Overview of E-Rate for Applicants • Create Technology Plan • File Form 470 (RFP) • Wait 28 days • File Form 471 • PIA Review and FCDL • File Form 486 • Submit invoices to USAC • Funds disbursed

11. Annual Process for Funding Year

12. What’s Eligible? • Eligible Entities • Eligible Purpose • Eligible Services

13. Eligible Entities • Schools: Must meet statutory definition of elementary or secondary school in No Child Left Behind Act of 2001, must not operate as for-profit business, and must not have an endowment exceeding $50 million. • “Elementary school” means a nonprofit institutional day or residential school, including a public elementary charter school, that provides elementary education, as determined under state law. • “Secondary school” means a nonprofit institutional day or residential school, including a public secondary charter school, that provides secondary education, as determined under state law, except that such term does not include any education beyond grade 12. • Libraries: Must meet statutory definition of library or library consortium in the 1996 Library Services and Technology Act (LSTA) and must be eligible for assistance from a state library administrative agency under that Act.

14. Eligible Purpose • Defined in the FCC Second Order and Amended in FCC rules: • “For purposes of this subpart, activities that are integral, immediate and proximate to the education of students, or in the case of libraries, integral, immediate and proximate to the provision of library service to library patrons, qualify as “educational purposes.” Activities that occur on library or school property are presumed to be integral, immediate and proximate to the education of students or the provision of library services to library patrons.”

15. Eligible Services Five categories of eligible E-rate services: • Priority 1 (P1) • Telecommunications Services • Telecommunications • Internet Access • Priority 2 (P2) • Internal Connections • Basic Maintenance of Internal Connections

16. Eligible Services – P1 Funded first • Telecommunications Service: “Used to communicate electronically between sites.” Includes local and long distance, digital transmission services, wireline and wireless • Telecommunications:“Non-telecommunications carriers may provide telecommunications via lit or dark fiber in whole or in part.” • Internet Access: Basic conduit access to the Internet, including e-mail

17. Eligible Services – P2 Funding starts with the neediest applicants • Internal Connections: wiring and components that expand data access within school or library (ex. switches, hubs, routers, wiring, cabling) • Subject to the Two-in-Five Rule • End user equipment is NOT eligible (ex. computers, monitors, phones, and content software/applications) • Basic Maintenance of Internal Connections: basic maintenance of eligible internal connections (i.e. repair and upkeep of hardware, wire and cable maintenance, basic technical support, and configuration changes)

18. Web Hosting Before 6th Report & Order, eligibility restricted to: • Domain name registration necessary for creation of school or library website • Provision of website traffic (bandwidth) • Provision of disk space for storing applicant provided content • Provision of File Transfer Protocol (FTP) transfer or a Web interface to upload files

19. Web Hosting After 6th Report & Order, eligibility open to: • Allow additional functionality of discussion boards, instant messaging and chat • However content remains ineligible, including searching of databases such as grade books, encyclopedias, etc. • Also support for applications necessary to run online classes or collaborative meetings is still ineligible

20. Leased Dark Fiber • Lease of existing fiber, lit or dark, that crosses a right of way, is eligible in Priority 1 Telecommunications or Internet Access categories from any provider (telecom & non-telecom) • On-premise leased fiber between or within school or library buildings is Priority 2 • Non-telecom providers include: local, state, regional fiber networks (ex. municipal networks), and private networks (ex. electric utilities) • Can compete with telecom carriers for provision of telecom & Internet services (over fiber) • Post in both categories to maximize # of bidders

21. Leased Dark Fiber – 6th Report & Order • Construction charges from an eligible school or library to the property line eligible as Priority 1 • Installation charges from eligible entity to property line ARE eligible; Installation charges from eligible entity to fiber network outside of property line ARE NOT eligible • Modulating equipment IS NOT eligible • Dark fiber must be lit immediately • Cannot purchase excess capacity for future growth

22. Eligible Services List Provides guidance on eligibility of products and services • FCC solicits public comments prior to approving • Funding window cannot open until new ESL issued for following FY • Format: five funding categories as established by FCC + miscellaneous • Telecommunications Service • Telecommunications • Internet Access • Internal Connections • Basic Maintenance • Miscellaneous

23. FY2012

24. Technology Plans • Develop Your Tech Plan • Must be prepared (written) before filing Form 470 for P2 services • Four Elements • Goals and Realistic Strategy • Professional Development • Needs Assessment • Evaluation Process • Approved by Certified Technology Plan Approvers

25. FORM 470 • Description of Services Requested and Certification Form • Defines desired services • Opens the competitive bidding process • Wait 28 days after Form 470 and/or RFP is posted, whichever is later, before selecting a vendor or signing a contract • Filed each funding year for requests for tariffed or month-to-month services and for new contractual services • USAC Issues Receipt Notification Letter (RNL)

26. Competitive Bidding Process • Fair and open • All potential bidders must have access to the same information and must be treated in the same manner throughout the procurement process • Additions or modifications to the Form 470/RFP must be made available at the same time and in a uniform manner to all potential bidders • Price of eligible products and services must be the most heavily weighted evaluation factor • Rule violations (not limited to these) • relationship with the service provider that unfairly influences the outcome of the competition or provides them with “inside” information • do not describe the desired products and services with sufficient specificity to enable interested parties to bid

27. Bid Evaluation Matrix

28. State Master Contracts (SMC) • Is competitively bid and put in place by a state government for use by multiple entities in that state • Must be on behalf of whole state – not just a consortium – and must be bid by a state agency • Applicant can cite SMC Form 470 on their Form 471 or post their own Form 470 and evaluate SMC as a bid response

29. State Master Contracts cont’d • Single winner contracts: applicant does not have to justify vendor selection and cites SMC Form 470 on Form 471 • Multi-vendor contracts: applicant must conduct a mini-bid between the winners with price of eligible goods and services being the primary factor AND document their vendor selection process • Contract Award Date = Date applicant decides to purchase off State Master Contract • Memorialize decision to purchase off SMC in email to self or the file

30. State Replacement Contracts • Utilized when SMC expires before the funding year starts or during a funding year • Follow State Replacement Contract procedures when filing Form 471 to get full year of funding • USAC can make commitments using the SRC SPIN, but cannot pay invoices until a SPIN change to “real” provider has been processed • Check DMS Contract End Dates before filing Form 471

31. DMS State Master Contracts

32. DMS State Master Contracts

33. Form 471 • Services Ordered and Certification Form • Must be filed each year within a specified filing window (i.e. FY 2012: Jan 9 at noon – March 20 @ 11:59pm) • Impact of Services Ordered (Block 2) • Discount Calculation (Block 4) • Funding Request Calculation (Block 5) • Certifies compliance (Block 6)

34. What’s My Discount? • 20% - 90% of eligible costs • Percentage of students eligible for National School Lunch Program (NSLP) • Urban or rural location of the school or library • School districts: weighted average of schools • FY 2012 worksheets on Florida DOE • Alternative Discount Mechanism • Libraries: discount of the school district • FY 2012 discounts Florida DOS • Consortia: simple average of member’s discounts

35. Discount Matrix

36. Item 21 Attachment • Describes type of service for which you are requesting funding, pricing of items, associated installation costs • Note intended use of the product or service • Location where to be installed or service received • Break down, if any, eligible and ineligible functionality • Used to determine eligibility of services • Service providers encouraged to be involved • Submit before end of 471 window

37. Form 471 Certifications Applicants certify that: • They have secured access to necessary resources • They have complied with all FCC, state and local competitive bidding and procurement regulations • The non-discount portion of the costs for eligible services will not be paid by the service provider • No kickbacks were paid to anyone • Failure to comply with rules could result in prosecution • Persons who have been convicted of criminal violations or held civilly liable for certain acts arising from their participation in the program are subject to suspension and debarment

38. After You Submit Form 471 • USAC Issues Receipt Acknowledgement Letter (RAL) after Form 471 certified • Confirms filing and provides summary • Read and review the RAL! • Provides opportunity to make allowable corrections

39. Ministerial & Clerical Error Corrections • Can correct ministerial and clerical errors: • Mark up RAL and RNL and re-submit until FCDL is issued • PIA will ask if something is M&C • 15 day response still applies • Allowable • Ex. Incorrect discount, contract number, billing account • Conditional • Ex. Contract award/expiration date, Corrective SPIN change • Not allowable • Ex. Operational SPIN change, adding service category

40. Why haven’t I heard anything? Program Integrity Assurance Review (PIA) • Verify rules compliance as to eligible entity, purpose, and/or service • Verify discount calculation • Reviews Competitive Bidding Process, contracts, Form 470, etc. • Confirms Letter of Agency for consortium

41. What do I do during a PIA Review? • Have documentation ready • Respond to inquiries and provide information promptly, by deadline • Ask for clarification if unsure • Ask early for an extension, if you need it • Put response in writing • Document all responses and keep a log

42. How Do I Know if I Got Funded? • USAC issues Funding Commitment Decision Letter (FCDL) to applicant and service provider when PIA review is complete • Approves, modifies or denies funds for specific services from specific provider by Funding Request Number (FRN) • Funding status • Funded • Not Funded • As Yet Unfunded • Canceled • May also modify discount percentage or service eligibility

43. SPIN Changes Corrective or Operational – depends on timing in relation to funding commitment • Pre-Commitment • Corrective SPIN changes only (i.e. data entry errors) • Post Commitment • Operational SPIN changes • Must have legitimate reason to change, such as Breach of Contract or provider unable to perform and • Must select provider with next highest point value in evaluation

44. What do I do after funding is approved? File Form 486 • Confirms services and start date (not before July 1) • Certifies compliance with Children’s Internet Protection Act (CIPA), when applicable • Must be filed no later than 120 days after Service Start Date or 120 days after date of FCDL • USAC sends Form 486 Receipt Notification Letter to applicant and service provider • Invoices can be paid

45. Children’s Internet Protection Act (CIPA) • Technology measure that a specific technology “that blocks or filters Internet access” to visual depictions • Child pornography • Obscenity • Harmful to Minors • Internet Safety Policy - include educating minors about social networking websites and cyber bullying awareness • schools must comply • libraries are encouraged in accordance with Fla.Stat.§ 257.12(3)

46. FIRN GRID: SPI or BEAR, Submit to AT&T

47. Invoicing Options: Form 472 Billed Entity Applicant Reimbursement (BEAR) Form • Filed AFTER you have paid bill in full to service provider (file one or more per year; signed by service provider) • Reimbursed or credited through the service provider (within 20 days of receipt of funds from USAC) • For the duration of the funding year

48. Invoicing Options: Form 474 Service Provider Invoice (SPI) Form • Applicant gets discounted bills, however must pay their non-discounted share • Filed by service provider AFTER applicant has been billed for the non-discount portion of the cost of eligible services • For the duration of the funding year

49. Document Retention Requirements • Retain records relating to: • Technology plans • Pre-bidding, bidding, contracts • Application process • Invoices • Provision of services • At least five (5) years from last date of service • Both applicants and service providers must adhere

50. Deadlines • Form 470 - posted at least 28 days before Form 471 • Form 471 - window closes March 20th at 11:59 pm • Contracts must be executed and signed before Form 471 submitted • Item 21 attachment before close of window • 60 days from date of FCDL to appeal to USAC or FCC • Form 486 - 120 days from start of service or date FCDL, whichever later • Invoicing filed no later than 120 days after last date to receive service or Form 486 NL, whichever later