Presented by: Julie Tritt Schell Fall 2005

1. E-rate Training Workshop for Beginners Presented by: Julie Tritt Schell Fall 2005

2. Agenda • 115 slides in 180 minutes = 1.5 min/slide • History of Program • Rules/Eligibility Issues • Process, Step-by-Step • Completion of Forms = 12 - 1 • What does * Mean?

3. What is E-rate? • Telecommunications Act of 1996 established “Universal Service Discount Program for Schools and Libraries” • Annual $2.25 billion program • Provides 20-90% discounts on telecommunications services, Internet access, and internal connections • Fund made up from charges on your phone bills • Most public libraries, public and private K-12 schools, including charters and vo-techs are eligible

4. Who Administers E-rate?* • FCC • Created program and its rules • USAC • Universal Services Administrative Company • Created by FCC to run E-rate and other universal service programs • Pays invoices • SLD • Schools and Libraries Division • Entity within USAC that runs E-rate • Makes no policy decisions

5. Why is PDE involved? • PA schools and libraries apply along side 30,000 other schools and libraries in U.S • We want to make sure you know how to complete forms, etc so you can get $ you deserve • PDE does not administer program, they simply provide information and conduct workshops for applicants

6. Fair Warning! • E-rate is not an easy process • Only for the strong willed and determined • Long process, a lot of paperwork, some frustration • Patience is needed, in addition to diligence in reading correspondence • Rewards can be great • Never ever try to cheat the program

7. Rules and Reasons • Random audits over last 2 years found that 70%+ of applicants were in violation of program rules • Several high-profile cases of WFA • Congressional hearings held • $11 million dedicated to audits next year • 1000 additional mini-audit site visits being conducted annually • Result… 95% of applicants that AREN’T cheating the program are now required to comply with additional rules designed to close the loopholes • Remember: If it is too good to be true, it probably is!

8. Getting Organized • E-rate Binder contains everything: • Forms, Instructions, Samples • Tips, checklists, contact sheets • Powerpoint handouts • Timeline • Rule 1 – Get Organized • Create your Own Year 9 Binder • Keep copies of all forms, letters, bids, correspondence, etc. Important!

9. E-rate Admin Acronyms • Client Service Bureau (CSB) • E-rate “Help Desk” where applicant & service providers can get answers to questions • Accessed via toll-free number • Technical Client Service Bureau (TCSB) • Team answering technical questions about eligible services & program rules. • Also accessed via same toll-free number. CSB will refer you to this area. • Program Integrity Assurance (PIA) • Team that reviews every application for compliance w/FCC rules. • Everyone receives calls from PIA before funding

10. Resources to Remember* • SLD web site: www.sl.universalservice.org • SLD CSB: 888-203-8100 • PA E-rate listserve • use notecard to sign-up • PA E-rate website:www.e-ratepa.org

11. Applicants • Must use E-rate Entity Number in order to participate • One for every building in your district or library • All applicants already have unless it’s a new building • Must have FCC Registration Number (FCCRN)* • Just for billed entity • All applicants should have obtained in Yr 7 • Must have NCES code (schools) or FSCS (libraries) • Listed on PA E-rate website under Helpful Documents • Leave blank if non exists

12. Service Providers* • Must obtain Service Provider Identification Number in order to participate (9 digit #) • Info on SLD web site under Vendor Area • Service Provider/SPIN Search on SLD web site • Not required to pay into Fund to get SPIN • Only telecom carriers must pay • Only sign contracts with providers that have SPIN • Providers should update contact info on Form 498, Block 11 • File Form 473 (SPAC) annually to USAC to get paid

13. Needed because demand exceeds cap of $2.25 billion Priority One: Telecommunications and Internet Access All approved-inside the window-likely to be funded Priority Two: Internal Connections / Basic Maintenance of IC Funds go first to neediest applicants (90% discount level), then to others in order of discount until funds are exhausted Year 1 -- funded to 70% Year 2 – all approved applications funded Year 3 – down to 82% Year 4 – down to 87% Year 5 – down to 81% Year 6 – down to 70% - significant rollover funds Year 7 – down to 81% Year 8 – only at 90% so far Funding Priorities

14. Funding Priorities • What does this mean? • Always apply for all telecommunications services and Internet access • Make judgement call on internal connections depending on discount level and time available to complete application

15. Exactly what services ARE and are NOT eligible?

16. Eligible Telecom Services • MUST be provided by regulated telecommunications carrier • Must have Y on SPIN search • Basic Telecom Services • Local, long distance & voice mail • Advanced Telecom Services • T-1, ATM, Frame Relay, ISDN, lit fiber, etc. • Satellite services and leased dishes Including most taxes and surcharges!

17. Eligible Telecom Services, cont. • Wireless Services • Cellular service – all staff eligible • Paging service • Calling cards • Not pre-paid cards • Centrex, custom calling features • Installation fees OK • Can be installed before funding year begins so services are ready by July 1 • Limited to priority 1 services

18. Ineligible Telecom Services • Sharing of bandwidth • 900 Calls • Payphones • Cost of not-publishing phone numbers • Cost of additional directory listings • End user equipment (phones, beepers, cell phones, fax machines, etc.) • VOIP as an actual service

19. Tariffed Services/MTM* • Services that are purchased mainly from a phone company, such as T1 OR • Monthly services such as cell or Internet Access • For which no contract is signed • Must competitively bid every year, regardless of competition in your area for those services • E-rate does not recognize multi-year tariffs… these must be contracts.

20. Fiber Networks* • Dark Fiber (unlit) is not eligible • Lit Fiber is eligible … IF • Modulating electronics are bundled with the lease cost of the fiber • Applicant will never own fiber • Applicant cost allocates any lease of fiber that isn’t being used in that funding year.

21. Eligible: Subscription fee to ISP E-mail Firewall fees Webhosting – be careful! Internet bandwidth Ineligible: Filtering Any remote access outside school property to internet Blackberry services presumed ineligible Internet Access

22. On-premise, Priority 1 Equipment* • Permitted if bundled from telco or ISP • Must certify: • No applicant ownership – ever • No exclusive use • LAN functions without use of equipment • Service provider maintains equipment • Not applicant

23. Network and phone wiring Routers Switches Hubs Network servers Video codecs System operating software Wireless Access Points Private branch exchange (PBXs) Firewalls Anything needed for transport – not end user devices Installation of eligible internal connections “Basic” Maintenance contracts on eligible internal connections New category for basic maintenance on 470/471 Eligible Internal Connections

24. Network management s/w Routers used for remote access Curriculum software Phones, beepers Owned WANs Salaries of SD staff to install or maintain network or components Any equipment used for remote access to network or Internet Personal computers FAX machines Asbestos removal Cameras Electrical wiring Teacher training Ineligible Internal Connections

25. Eligibility Issues* • Purchased Wide Area Networks (WANs) are not E-rate eligible. • If leased from a regulated telecommunications provider then it’s eligible as a Telecommunications Service • Local Area Networks (LANs) are eligible • SLD has made the WAN/LAN distinction as follows: • If the network crosses a public right-of-way, it’s considered a WAN. • Connections considered LANs: • computer to computer • classroom to classroom • building to building on the same campus that does not cross a public right-of-way

26. 2-way Radios/walkie-talkie (direct connect OK as a cell service) Filtering Network monitoring Directory advertising/listings Cellular phones Management Redundancy Helpdesk 24 hour technical support Insurance policies Remote access Gotcha!Words to Never Use

27. Questions about Eligibility Issues?

28. Application process at a Glance*

29. Year 9 Details • For services rendered 7/1/2006 - 6/30/2007 • Application process has begun! • Write tech plan now • File 470 now • File 471 when window opens (normally beginning of November) • Window normally closes first week in February • Must be inside window to be funded

30. You Must Have a Technology Plan!* • Five SLD technology plan criteria • Goals and Strategies for using technology • Needs Assessment • Professional Development • Budget – including sources of funding • Evaluation • Must align with 470 request for services • Must be “written” before 470 is filed • Must cover full 12 months of NEXT funding year

31. Technology Plans, cont. • Vendors cannot write or approve technology plans • No tech plan required for basic phone service or long distance (includes cell and voice mail) • Centrex is not basic phone service • Be sure to include dates of tech plan! • Get approval letter by July 1 • then Print/Maintain Approval Letter • Tech plans approved for no more than 3 years • Certify on 486 who approved plan • Can amend technology plan if yours is not specific enough

32. Competitive Bidding • Everyone must do it • Even if no competition in your area • Even if bidding under state law • Must be done when signing any new contracts • Must be done each year for all tariffed/MTM services • Bidding on web site does not exempt you from bidding under state law • Can be done simultaneously • Only exception is if someone bid it for you (PEPPM)

33. Competitive Bidding on SLD web site using Form 470* • File Form 470 any time to begin procurement process • Listserve reminder sent out • Should align with technology plan • Provide as much detail as possible so bidders can respond – a mini RFP • If you have an RFP, list where it can be obtained, AND provide description of what’s in RFP • Make sure you list possibility of multi-year contract and/or contract with voluntary extensions • Vendors cannot help with RFP/470 process

34. Form 470 • File online • Posted on SLD web site 28-days • Must have form posted on web at least 29 days before the Form 471 window close (example: Feb 4 close = Jan 7 deadline) • Don’t wait this long • File 470 by Thanksgiving, if possible • Mail certification page to SLD ASAP unless eCertifying Read the Instructions!

35. Get 470 Information Immediately!* • Posted 470 available on SLD web site to view • Upper right corner of online application shows: • Posting date of application • Earliest date that your contract can be signed and thus 471 submitted • Date that certification page was received at the SLD • View and print immediately after posting • SLD also sends this info in Receipt Notification Letter*

36. Next: Bid Evaluation* • After 470 is posted for at least 28 days, review all bids received for all services • Cannot consider “free services” such as “I’ll give you 20 computers if you purchase my service” • Cannot consider ineligible services in price evaluation factor • Can be considered in another category • Keep documentation of criteria used to select vendor • Keep all winning and losing bids • Retain all correspondence between applicant and all vendors (winning and losing)

37. Choosing the Winning Bid • Applicant must to pick “most cost-effective bid” • Cost doesn’t have to be only factor, but must be most heavily weighted factor • For example, if you have 3 bid evaluation criteria, price must be at least 34% of total weight. • Examples of other specified factors: • Prior experience • Personnel qualifications • Technical excellence • Management capability • Cost of switching providers • Etc.

38. Signing E-rate Contracts* • Signing Contracts/Selecting Provider must be done before you submit 471 • Be careful not to make any decisions, sign anything or file any forms during 28 day waiting period. • Contracts must be signed and dated by both parties • Must sign contracts unless tariff or MTM service • If selecting PEPPM, no contract needed, but you must be able to explain why you chose reseller A over reseller B

39. Signing E-rate Contracts* • List contract extensions and contract expiration dates • These also must be listed in RFP or 470, Item 7b • Include non-E-rate funding out clauses • Separate internal connections/wiring portions of contracts for highest discount schools

40. Questions about Bidding / Form 470 / Bid Evaluation / Signing Contracts?

41. Next: Filing the 471 • Very important form • Watch listserve for reminders • Filed by entity that actually pays the bills • Shows discount calculations • Requests discounts (funding) • Describes services ordered and details contract information • Must be filed at least 29-days after posting Form 470 • eCertify!! Or submit signed certification page ASAP (postmarked within window)

42. What is My Discount?* • Two criteria make up discount: • Poverty • Location

43. Poverty – NSLP Data* • Based on National School Lunch Program Eligibility • Eligibility based on % of student whose family’s income is within 185% of federal poverty level • Doesn’t matter if school serves lunch or participates in NSLP • AVTS and nonpublic schools use their students’ data, not sending schools’ data

44. Location* • Urban/Rural defined by Counties • Uses Metropolitan Statistical Area data • Many counties in PA seem misclassified • List by county in binder

45. Discount Matrix for Single School* % of Students Eligible for School Lunch Program Discounts

46. Goal: Discounts based on true eligibility – not participation. 2 Ways to do this Take existing participation data and add to it Using sibling match Using existing family income data Conduct family income survey Must survey 100% of families. If 50% response rate, then OK to extrapolate the rest Maintain complete records Sample survey available* Valid for 2 years Alternative Measures to NSLP Data*

47. Alternative Measures to NSLP* • Also, participation in these programs also qualifies: • TANF • Medicaid • Food Stamps • Supplementary Security Income • Federal public housing assistance (section 8) • Low income home energy assistance (LIHEAP)

48. Alternative Measures* • Not acceptable eligibility measures • Title 1 • Feeder schools method • Principal’s estimate

49. Discount Calculations by Entity* • Schools: Use straight matrix discount • Districts: Use weighted average of schools’ individual discounts • Library: Use the total number of students eligible for NSLP in the school district in which the library is located divided by the total number of students in that school district, then use matrix discount • Library System: Uses simple average of member libraries’ discounts • Consortium: Uses simple average of members’ discounts

50. If You Are an Individual School* Always uses straight matrix discount for single schools.