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E-Rate Overview and Update September 2014

E-Rate Overview and Update September 2014. Overview. Agenda Introductions Introduction to E-Rate Program Next Steps Q&A. Overview. Largest federal technology funding program Initiated in 1998 under auspices of FCC One of 4 Universal Service Fund programs

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E-Rate Overview and Update September 2014

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  1. E-Rate Overview and Update September 2014

  2. Overview • Agenda • Introductions • Introduction to E-Rate Program • Next Steps • Q&A

  3. Overview • Largest federal technology funding program • Initiated in 1998 under auspices of FCC • One of 4 Universal Service Fund programs • Supports technology infrastructures for schools and libraries • Telecommunications • Internet access • Intra-building network equipment and maintenance • Scope of program • $2.4+ billion per year (plus roll-overs) • 20% – 90% discounts (not grants)

  4. Overview • Important source of technology funding (FY 1998 – 2014) • $40 billion nationwide • $4.4 billion for New York State • >11% of national total; one of highest E-rate $/student • Time-consuming, bureaucratic, and confusing program • Forms 470, 471, 472, 479, 486, and 500 • Service eligibility and discount rate issues • Long lead time and competitive bidding procedures • Strict application review process • Audits and retroactive refund exposure

  5. Discounts • Schools and libraries can receive discounts ranging from 20% - 90% on eligible products and services • Discounts are based on: • School district uses discount based on total student eligibility • Library uses discount based on total student eligibility of local district • Consortium uses simple average of individual member discounts

  6. Discount Matrix

  7. Eligible Services Category 1 • Telecommunications and Internet Services • Focus on broadband • Phase out of voice services • Category 2 • Telecommunications and Internet Services • Focus on Wi-FI systems (LAN and WLAN) • Related maintenance

  8. Eligible Applicants • Eligibility of “non-traditional” students and facilities vary by state • Currently in New York • Students and facilities eligible for: • Head Start • Pre-K • Juvenile Justice • Students only eligible for adult education • Proposing to push for eligibility of adult education facilities

  9. Cost - Benefit • Need to analyze the cost of applying for E-rate vs. the discounts received • Estimating benefits: • Annual broadband expenses (discounted at 80-90%) • Annual voice services (discounted at 60-70% for FY 2015, declining over time) • Wi-Fi expenses (discounted at 80-85%) • Estimating costs: • Little incremental costs if combined in larger application • Individual application requires significant administrative expenses • Benchmark: minimum consultant fee might be $1,000 – $2,000

  10. FY 2015 Timetable • Application window in the preceding year • Form 470 can be filed well before window opens – late fall 2014 • Form 471 window for FY 2015 – January to March • Funding commitments for each fiscal year • Recurring services received: July 1 to June 30 • Non-recurring services delivered and installed: July 1 to following September 30 • Funding received as discount or reimbursement • Service provider can discount bills as service is provided • Applicant can request reimbursement after paying full amount • Invoice deadlines in following funding year (Oct. 28 or Jan 28) 2014-2015 2015-2016 2015-2017

  11. Application Process 1. File Form 470 (quasi-RFP) 2. Wait 28 days (vendor selection period) 3. File Form 471 (application) 4. PIA review and FCDL 5. File Form 486 (confirmation) 6. Submit invoices to USAC

  12. Form 470 Service and Procurement Description: • Filed by applicants to define desired services and open the competitive bidding process • Posted on the USAC website for at least 28 days before selecting service provider and/or signing a contract • Request For Proposal (“RFP”), if used, must also be available for at least 28 days before making a vendor selection • Annual posting requirement, except for multi-year contracts • Compliant with state and local requirements

  13. Procurement • Competitive bidding is required • Applicant must conduct a fair and open bidding process • All bidders must be treated equally • Vendors cannot be involved in Form 470/RFP development • Strict gift rules • Price of eligible product or service must be the primary factor • Special rules for BOCES

  14. Bid Assessment Sample bid matrix: http://e-ratecentral.com/applicationTips/bidAssessment/CompetitiveBidResponseDocumentation.asp

  15. Form 471 Discount Application: • Must be filed each year within the application window • Contains specific information on services ordered, quantities, vendor, and price • Shows entities receiving services and discount rate calculations • Certifies compliance with rules and verifies access to resources to make effective use of discounted services

  16. PIA Review Program Integrity Assurance Reviews: • Most applications generate PIA inquiries: • Entity eligibility • Discount rate validation • Eligible products and services • Funding request levels • Response deadlines: • Normal 15-day response requirement • Mid-point reminders to applicant and state coordinator • Extension request must be made in writing

  17. Funding Commitments • Funding Commitment Decision Letter (“FCDL”) issued to applicant and service provider(s) after PIA review • Funding released in weekly waves • Typically beginning during prior May/June • Waves continue well into funding year • Funding as of September 2014: • FY 2014: $1.75 billion of $2.65 billion cap • FY 2013: $2.09 billion of $2.79 billion cap • FY 2012: $2.87 billion of $3.36 billion cap

  18. Form 486 • Confirms receipt of service • Certifies compliance with Childrens Internet Protection Act (“CPIA”), if required • Subject to CIPA review, on occasion

  19. Discount Invoicing • Two applicant options: • Discounted bills: Service provider files Form 474 (“SPI”) • Discount reimbursement: Applicant files Form 472 (“BEAR”) • Invoice deadline for both: 120 days after last date to receive service • Critical point: Applicant must pay non-discounted share

  20. USAC Resources • Web:www.usac.org/sl/ • Help lines:888-203-8100 (General) 888-276-8736 (Fax) • Online “Submit a Question” facility www.slforms.universalservice.org/EMailResponse/EMail_Intro.aspx • Hint: Always get a case # and keep records • Weekly SLD News Brief (subscribe online)

  21. Additional NYS Resources • Web: E-rate:www.e-ratecentral.com/us/nyswww.e-ratecentral.com/us/nys • Weekly news: http://www.e-ratecentral.com/subscribe.asp • Questions:516-801-7810 (fax) or question@e-ratecentral.com

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