1. E-Rate Survival What You Need to Know for Success
Dawn L Belden
Operations Director
Educational Consortium
5/1/2017
E-Rate Survival

2. Know your overall discount percentage before you file your form 470
Let’s talk basics
Know your overall discount percentage before you file your form 470
Be aware of contracts that are due to expire at the end of the current funding year
Know your IA bandwidth needs and circuit speeds
Update your EPC connectivity questions
Make sure to update your entity profiles in the EPC before filing your form 471
5/1/2017
E-Rate Survival

3. Eligibility and Discount Percentage Previously calculated by school building Currently calculated by total population
5/1/2017
E-Rate Survival

4. E-Rate Eligibility Changes
No reduction in eligibility of broadband services
Voice service phase out continues
Includes circuits dedicated to voice
Voice equipment removed
Video services and equipment removed
Other non-broadband services removed
Webhosting
Voic
5/1/2017
E-Rate Survival

5. Voice SERVICES Phase out
Base Discount
20% -
25% 5%
40%
50%
30%
10%
60%
70%
80%
90%
5/1/2017
E-Rate Survival

6. Common ineligible items in Category 1
Inside wire maintenance
DID number blocks
Charges for touch tone
All add-on calling features:
Caller ID
Call forwarding
Voice mail
Call blocking
Etc.
Carrier cost recovery charges
Administrative fees charged by your provider
5/1/2017
E-Rate Survival

7. New for Dark Fiber
New rules regarding funding for dark fiber – either leased or self-provisioned
New self-provisioning of fiber if cost effectiveness can be substantiated in review – includes 1st year payout of special construction costs
If you are applying for dark fiber you must also solicit bid responses for lit fiber at the same time and choose the most cost effective option evaluated over a specified time frame
New – modulating electronics necessary to light existing dark fiber is now eligible as a category 1 expense
New – maintenance of existing dark fiber networks are also eligible under category 1
An RFP is required if applying for dark fiber
5/1/2017
E-Rate Survival

8. Self-provisioning Application Guidelines
Start early! Create your RFP and file your 470 as soon as possible.
Make sure that your RFP also includes options for leased lit and leased dark fiber.
Include modulating electronics and maintenance as part of your request.
Set realistic criteria to use when evaluating the costs for self-provisioning against lit and dark fiber lease. (This includes a time frame cost analysis – 5years or 10 years)
Even if done correctly you may be denied funding or delayed – have contingency plans in place.
5/1/2017
E-Rate Survival

9. Category 2 Funding
Each instructional facility has a per student budget spanning a 5 year period beginning when funding is first awarded
NEW – if seeking category 2 funding, purchase and installation can begin on or after April 1st prior to the beginning of the funding year
Licenses spanning a 3 year period can be purchased and paid for in the first year
BMIC is only available in 1yr increments – if your quote says license and support it is considered basic maintenance of internal connections.
5/1/2017
E-Rate Survival

10. Inflationary Adjustment to Cat2 Budget
5/1/2017
E-Rate Survival

11. Category 2 - Reimbursement
There are 2 options for reimbursement on Category 2 purchases
SPI – is available to districts after their Form 471 has been reviewed and approved for E-Rate funds. In order to utilize this method a FCDL must be issued prior to installation.
BEAR – this method requires that your project be completed and paid prior to reimbursement.
All BEAR reimbursements will be paid through ACH transfer
Make sure to compare bank deposits with your remittance sent to the financial contact on your form 498
5/1/2017
E-Rate Survival

12. Category 2 rules and records
Equipment purchases are specific by school building.
Equipment purchased with Category 2 funds must remain in the building for which it was purchased for a period of 3 years
Exceptions: Building closure or destruction
Moving equipment requires a Form 500 filing
Records must be maintained to account for all equipment purchased with Category 2 funds
Equipment must be labeled and listed on an asset registry form
Equipment may be moved to another location but that change must be noted on the equipment registry
On site audits may occur – keep good records
5/1/2017
E-Rate Survival

13. E-Rate Productivity Center - (EPC) Portal
All schools and school districts must be registered in the EPC portal to apply for E-Rate beginning with FY2016
All changes to Entity profiles will be made through your EPC Portal
All E-Rate applications will be created and certified in your EPC Portal
The filing of all forms related to an E-Rate application (Form 500, Appeals, SPIN Changes, etc.) must be filed through the EPC
All E-Rate correspondence will occur in your EPC portal for FY2016 and beyond
Keep your EPC current – if you have changes effecting the Account Administrator of your portal make sure it is updated prior to the change over
Keep your form 498 current so you continue to receive notices of deposits
5/1/2017
E-Rate Survival

14. Form 470 Changes
If you have an RFP for a service, then you must have it available to upload into the EPC form in order to proceed (Know your state and local procurement rules)
Although it has been simplified, the 470 is confusing and vague – it may lead to additional contact from vendors for clarification
Your 28 day waiting period prior to evaluating bid responses does not begin until your 470 is certified in your EPC Portal
To ensure enough time to navigate the remainder of the process, your 470 should be filed at least 60 days prior to the closing of the 471 filing window
5/1/2017
E-Rate Survival

15. Competitive Bidding
The 28 day competitive bidding window must be observed – you may not enter into new contracts or select a vendor until the 28th day
All bids submitted must be considered during the bid evaluation process (if you decide to consider bids submitted beyond the 28 day window – you must consider all bids that were submitted in your time frame)
Choose your bidding criteria wisely
Keep all correspondence from vendors related to the bidding process
Prepare a bid evaluation table for your records
5/1/2017
E-Rate Survival

16. Sample Bid Tab
5/1/2017
E-Rate Survival

17. Form 471 Changes
Any new contracts must be uploaded into the form 471 when filing. All contracts from previous years that are still in effect must also be uploaded prior to filing.
The new format may require additional time to navigate – the item 21 feature is built into the form.
Cat2 applications are cumbersome – plan on additional time to file!
NEVER plan on a deadline extension for filing.
5/1/2017
E-Rate Survival

18. What is the PIA Process (Program Integrity Review)
You may be contacted by PIA (Program Integrity Assurance) with questions regarding your 471
If PIA needs additional information the contact person on your form 471 will be notified by .
PIA inquiries will also appear in your EPC news feed
All responses to PIA requests are submitted through the EPC portal
All PIA requests are time sensitive
Failure to respond to PIA requests may result in reduction or denial of funding
5/1/2017
E-Rate Survival

19. Funding Commitments (FCDL)
Notifications of funding awards are made through notifications to the contact person on your 471
You no longer receive a physical Funding Commitment Decision Letter in the mail
FCDLs appear in your EPC – you need to generate and view your FCDL notification
All data related to your funding appears in a .csv file that is attached to your notification
Once you receive your FCDL you can immediately create and certify your 486 accepting the funds
5/1/2017
E-Rate Survival

20. E-Rate Timeline
Make sure that your EPC Portal is operational and up to date
File your Form 470 before the Christmas break if possible
Evaluate vendor proposals after the 28 day bidding window has closed
If necessary get new contracts on the February or March Board agenda for approval
Get signed agreements by the end of March so your Form 471 can be filed.
5/1/2017
E-Rate Survival

21. Remember the document retention policy
Remember the document retention policy! All documents related to a funding year must be retained for a period of 10 years past the last date of service in that funding year. This includes all forms, notices, bid documentation, correspondence, proof of delivery, vendor invoices, proof of payment, etc. If you are audited an cannot supply the documents you will be required to return funds.
5/1/2017
E-Rate Survival

22. Don’t leave available funds on the table!
Know the rules!
Stay informed!
Don’t leave available funds on the table!
Call me or me for more information:
5/1/2017
E-Rate Survival