1. E-Rate: the what and How
For Archdiocese of Chicago Schools
Office of Catholic Schools, Coleman Group Consulting
and St. Benedict Technology Consortium
February 16, 2018

2. Introduction
OCS, SBTC, and Coleman Group want to help schools use E-rate funds to support academic excellence. 
This past school year, SBTC conducted site evaluations to assist with the technology E-rate survey. 
Recently, an infrastructure survey was administered by OCS to have schools rate themselves in terms of network reliability, management, data protection and others. 
With these surveys, along with the differences in students’ learning styles and needs, we want to make sure schools are using E-rate funding effectively. 
OCS has identified guidelines for basic infrastructure per classroom as well as the campus level.  These guidelines extend to technology planning and preparation. OCS, SBTC, and Coleman have extensively discussed utilization of E-rate throughout the system.  It has been determined that E-rate acceptance has been underutilized.  This has led to the creation of a preliminary vision and timeline to communicate expectations and opportunities to schools regarding the use of E-rate funds to support academic excellence. It's important for schools to develop a plan for the scope and infrastructure needs to allow technology to be used effectively in the classroom.  E-rate funding can significantly ease and accelerate these plans.

3. Current Status Funding Year 2017-2018 Funding Year 2018-2019
All funding requests for the current year were reviewed and approved by USAC.
Category 1 approvals were sent directly to the school to accept or reject funding. Category 2 approvals were first sent to OCS for review, then to the schools to accept or reject funding.
A Form 486 was filed for all accepted funding to begin the disbursement process.
For the majority of applications, the deadline to receive full funding has now passed. There is still an opportunity, however, to pursue partial funding for many requests.
Funding Year
As a result of the Form 470/RFP, the following preferred suppliers were selected for the upcoming funding year:
Cable modem service (Cat 1): Comcast
Fiber service (Cat 1): AT&T and Illinois Century Network
Equipment (Cat 2): CDW-G
Maintenance (Cat 2): PCS International
A draft version of each school’s individual 471 application will be sent on Monday, February 19th in the form of a survey. Confirmation of this draft is due back by Friday, March 2nd.

4. What is E-rate?

5. E-rate Explained
‘E-rate’ is the nickname for the Universal Service Administrative Company’s (USAC) School and Libraries Program supervised by the Federal Communications Commission (FCC).
In other words, ‘E-rate’ is a government program that offers funding to schools and libraries across the country for:
Telecommunication services
Technology equipment
Maintenance
Since E-rate’s outset in 1997, it has provided schools with billions of dollars in funding for telecom services.
Eligibility and discounts are determined by a school or school district’s level of need.

6. Discount Rates Calculated
Discount rates are calculated for the district (AoC schools) as a whole and applied evenly rather than on a school-by-school basis.
A school district discount rate is calculated by:
Independent schools determine their own discount rates individually.
(Total students eligible for the National Student Lunch Program) ÷ (All students in district) = Eligibility Percentage
This Percentage is then compared against the E-rate discount matrix to determine the Discount Rate

7. E-rate Pays For…
Category 1: Data Transmission and Internet Access Services
Category 2: Internal Connections and Basic Maintenance
This includes internet services.
Voice services have now been phased out of Category 1 funding
This includes network hardware, software and support to connect your students to the internet.
The amount available from 2015 to 2019 is based on a school’s enrollment and discount rate.
A school’s funding need is evaluated based on 5-year time intervals instead of annually.

8. Category 2 Five-Year Funding Details
With the Modernization Order of 2014, E-rate set aside specific funding for Category 2.
Between 2015 and 2019, schools can apply for a minimum of $9,200 and a maximum of $150/student over this 5-year period. This is before their discount rate.
A school can spend the entire amount in 1 year, or spread over the 5 year window as necessary.
Example funding calculations for a school with 200 students and 50% discount rate:
200 students X $150 X 50% = $15,000 of funding eligibility for the 5 year period.

9. Eligible Services by Category
Data Transmission Services:
MPLS, dark fiber, WAN
Internet Access:
DSL, Cable Modem, Managed Fiber, ISP
Category 2
Maintenance of Internal Connections
Equipment
Routers
Switches
Wireless access points
Internal cabling
Racks
Wireless controller systems
Firewall services
UPS (uninterrupted power supply)
Supportive software

10. What is The process?

11. School Surveys & Site Visits
Getting Started
Surveys and site visits allow us to evaluate each school’s current technology environment and determine where funding would be most beneficial.
Example:
Schools frequently purchase new devices or move towards 1:1 device technology plans, yet fail to consider whether their infrastructure can support the increased demand for bandwidth. By analyzing school survey responses we can prevent wasteful spending.
This information will further be used when completing each school’s Form 471 application later on.

12. Form 470 RFP & Supplier Selection
Choosing the Suppliers
The FCC requires a fair and open bidding process for E-rate. The Form 470 initiates a competitive bidding process and allows suppliers to be evaluated on a level playing field.
After a minimum 28 day response window, the 470 is closed and the responses are assembled for OCS to review and select the winning suppliers.
Exceptions to the selected suppliers are allowed on a case by case basis with OCS making the determination based on the supplier’s E-rate eligibility and school’s justification for the change.
Contracts with the suppliers must be signed and dated after the vendor selection window and the 470 closing date.

13. School Form 471 Applications
Submitting Funding Requests
The Form 471 individually lists all contracts and services for which the applicant is requesting discounts. Each service is officially referred to as a “Funding Request.”
Once the Form 470 RFP process is complete, we draft each school’s 471 application based on their survey responses and then send the draft application to each school for approval. Once approved by the school, we submit the applications to USAC online.
Schools not responding to the draft review are referred to OCS. OCS will determine if an application will be filed on the school’s behalf.

14. PIA Responses Double-Checking Compliance
If USAC needs additional information or clarification regarding the 471 application, the RRP will be contacted by USAC’s Program Integrity Assurance (PIA) Team.
The PIA Team is responsible for making sure that discounts are being provided to eligible entities for eligible services.
They make sure that the applicant and the applicant’s requested service are both E-rate eligible.
PIA representatives may ask specific questions or request documentation to substantiate information on a particular form.
The RRP collects the necessary support documents and responds to the PIA request within 15 calendar days.

15. FCDL Review & Form 486 Submissions
Funding Approval & Acceptance
When funding is approved, USAC sends a Funding Commitment Decision Letter (FCDL).
The FCDL is the official USAC response to an applicant’s 471. It declares how much funding the school is eligible to receive.
At this time, the school will receive an FCDL survey to decide whether they plan to accept all, some, or none of the funding for approved services.
Next, a Form 486 is filed. This informs USAC that:
invoicing can begin for those services approved for discounts
the applicant is in compliance with the Children’s Internet Protection Act (CIPA)
**Applicants can file the Form 486 before services start if they have received an FCDL and have agreed that services will start before or during July of the funding year.

16. Using the Funding Ordering Eligible Products and Services Category 1
If a school is already using the supplier and service approved on the FCDL, no additional action is needed from the school.
To implement a new service approved on the 471, the school should contact the appropriate supplier directly.
Category 2 products must be ordered in the correct window and from the correct vendor in order to be eligible for funding.
Equipment (CDW-G):
Contacts: Angela Collins or Matt Eisfelder
Provide: 471 application #
FRN #
discount rate (50%)
Maintenance (PCS)
Contacts: Mike Gordon and Dale Rivera
Purchases for Cat. 2 can be made through 9/30 beyond the relevant funding year

17. Getting the Money: SPI & BEAR
Dispense Funding - E-rate dispenses its approved funding one of two ways:
SPI
BEAR
= Service Provider Invoice
USAC sends payment to the supplier.
School gets credit directly on their
= Billed Entity Applicant Reimbursement
USAC reimburses the supplier, then supplier sends the money to OCS.
School must pay full amount first, then is reimbursed based on actual spend and the amount of the approved funding request.
**USAC will sometimes request an invoice review to verify the accuracy of the original funding request amounts.

18. Frequently asked questions
FAQ
Frequently asked questions

19. Frequently Asked Questions
How does the E-rate Program define ‘school district?’
‘The FCC has said that an applicant must determine its discount using all E-rate Program-eligible students in schools that fall under the control of a central educational agency. School districts can be either public or non-public, such as schools in a diocese that are administered together. USAC will follow the lead of the State Education Agency in determining which schools belong to a public school district, which may mean that certain charters are considered part of a public school district and would get the public school district's discount rate, instead of calculating their own discount rate.’
How does a school district calculate its discount?
A school district must divide the total number of students in the district eligible for the National School Lunch Program (NSLP) by the total number of students in the district. The district must then use the E-rate Program discount matrix to convert that resulting single percentage figure into an E-rate Program discount rate. If a majority (i.e., more than 50 percent) of the schools in a district are classified as "rural," the district is eligible for a rural discount. The online FCC Form will guide you through this process and will do the calculations and lookups for you.

20. Frequently Asked Questions
How are preferred vendors selected?
Through an RFP process in cooperation with OCS, we create an evaluation matrix to compare the most cost-effective and qualified vendors. OCS then reviews our material and makes the final decision.
Does the RRP make money from the preferred supplier?
The RRP does NOT make any money from our preferred suppliers. To do so would be a violation of the USAC guidelines and cause for criminal prosecution.
How long do schools need to keep their documentation?
All documentation needs to be kept for 10 years after the last day of services delivered.  This includes receipt and delivery records relating to pre-bidding, bidding, contracts, application process, invoices, provision of services, and other matters relating to the administration of universal service