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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
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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)
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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
www.usac.org4
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
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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
www.usac.org6
Applicant Eligibility
Consortia
– Can include both eligible and ineligible entities
– Only eligible entities can receive discounts
– Consortium leader has record-keeping and administrative responsibilities
www.usac.org7
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
www.usac.org8
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
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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
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Eligible Services
Priority 1
– Telecommunications Services
• Local and long distance, wireline and wireless, voice/data/video
– Internet Access
• Basic conduit access to the Internet
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Eligible Services
Priority 2– Internal Connections
(switches, hubs,routers, wiring, cabling)• Internal Connections funded
only 2 in 5 funding years– Basic Maintenance of Internal ConnectionsNOTE: End user equipment - such as computers, monitors, or phone sets - is NOT eligible
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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.
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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
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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
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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
www.usac.org16
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
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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
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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
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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
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Discounts Discount Matrix
Percent of Eligible Students
Urban Rural
Less than 1% 20% 25%
1% - 19% 40% 50%
20% - 34% 50% 60%
35% - 49% 60% 70%
50% -74% 80% 80%
75% -100% 90% 90%
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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
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Contracts
Applicants must sign and date contracts 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
www.usac.org23
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
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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.
www.usac.org25
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
www.usac.org26
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.
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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
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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)
www.usac.org29
Form 486Form 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
www.usac.org30
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
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Invoicing
Form 472Billed 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
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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
