1. 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

2. 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)

3. 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

4. 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

5. 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

6. Applicant Eligibility
Consortia
Can include both eligible and ineligible entities
Only eligible entities can receive discounts
Consortium leader has record-keeping and administrative responsibilities

7. 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

8. 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

9. 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

10. Eligible Services Priority 1 Telecommunications Services
Local and long distance, wireline and wireless, voice/data/video
Internet Access
Basic conduit access to the Internet

11. Eligible Services Priority 2
Internal Connections (switches, hubs, routers, wiring, cabling)
Internal Connections funded only 2 in 5 funding years
Basic Maintenance of Internal Connections
NOTE: End user equipment - such as
computers, monitors, or phone sets - is NOT
eligible

12. 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.

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. Discounts Percent of Eligible Students Urban Rural Less than 1% 20%
Discount Matrix
Percent of Eligible Students
Urban
Rural
Less than 1%
20%
25%
1% - 19%
40%
50%
20% - 34%
60%
35% - 49%
70%
50% -74%
80%
75% -100%
90%

21. Discounts Calculating Discount Methods Shared Discounts
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

22. 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

23. 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

24. 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.

25. 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

26. 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.

27. 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

28. 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)

29. Form 486 Form 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

30. 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

31. Invoicing Form 472 Billed 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

32. 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