1. 1 E-Rate for California For Intermediate/Advanced Applicants

2. 2 Eligibility - Schools Elementary or Secondary education as defined by Elementary and Secondary Education Act Must be non-profit Must not have endowment exceeding $50 million

3. 3 Eligibility - Libraries Eligible for assistance from a state library administrative agency under Library Services and Technology Act Budget is completely separate from that of any schools Must be operating as non-profit

4. 4 Eligibility - Consortia Eligible Schools or Libraries may form a consortia with –Other eligible schools and/or libraries –Certain health care providers –Public sector (governmental) entities Only eligible entities can receive discounts

5. 5 Funding Commitment Process 1.Technology Planning – What are my goals? 2.Form 470 – What are my needs? 3.Form 471 – Service providers chosen to fill needs 4.PIA – Program Integrity Assurance review 5.Funding Commitment 6.Form 486 – Verify start of services 7.Invoicing – How do I finally get the money?

6. 6 Technology Planning

7. 7 Required Elements For E-Rate Plan: 1.Goals 2.Professional Development 3.Needs Assessment 4.Budget 5.Evaluation Process Tech Plan Help www.usac.org/sl/ applicants/step02/ For EETT/Federal/State funding: Executive Summary/Introduction Stakeholders Curriculum Professional Development Infrastructure Adult literacy Research Funding and Budget Monitoring and Evaluation E-Rate supplemental budget analysis … and also see: www.cde.ca.gov/ls/et/rs/techplan.asp

8. 8 Discount Calculations Calculated based on two factors 1.Percentage of students eligible for National School Lunch Program http://www.usac.org/sl/applicants/step05/discount-matrix.aspx http://www.usac.org/sl/applicants/step05/discount-matrix.aspx 2.Urban or Rural status of Entity http://www.usac.org/sl/applicants/step05/urban-rural/ http://www.usac.org/sl/applicants/step05/urban-rural/

9. 9 Discount Matrix % Eligible Students UrbanRural Less than 1%20%25% 1% to 19%40%50% 20% to 34%50%60% 35% to 49%60%70% 50% to 74%80% 75% to 100%90%

10. 10 District Students Enrolled # Free and Reduced Lunches % Free and Reduced Lunches Urban or Rural % E-Rate Subsidy Weighted Average for District Sample School District Urban Sample School 1191473.68%80%15.2 Sample School 283632338.64%60%501.6 Sample School 31885428.72%50%94 Sample School 41216553.72%80%96.8 Sample School 51583622.78%50%79 Sample School 6105020419.43%40%420 TOTALS FOR DISTRICT2372696 1206.6 WEIGHTED AVERAGE 50.87%

11. 11 Discount Calculations Instructional Facilities will have a discount that comes straight from Matrix Non-Instructional Facilities will use District Weighted Average (District Office, Maintenance, Bus Barn, Gardener’s Shed, etc)

12. 12 Non-Instructional Facilities (NIFs) Examples SCHOOLS:LIBRARIES: Administrative buildings School bus barns and garages Bookmobile garages Cafeteria officesInterlibrary loan facilities Facilities associated with athletic activities Library technology centers

13. 13 Eligible Services - Categories Priority 1 (P1) –Telecommunications –Internet Access Priority 2 (P2) –Internal Connections –Basic Maintenance on Eligible Internal Connections

14. 14 Non-Instructional Facilities (NIFs) Are eligible for Priority 1 services, telecommunications and internet access Are NOT eligible for Priority 2 services, internal connections, UNLESS they are essential for the effective transport of information to an instructional building of a school or to a non-administrative building of a library

15. 15 Eligible Services – Basic Concepts Key reference: Each year’s update of the Eligible Services List – http://www.usac.org/sl/tools/eligible-services- list.aspx http://www.usac.org/sl/tools/eligible-services- list.aspx Services must be used for “Educational Purpose” - http://www.sl.universalservice.org/reference/educational_purposes. asp http://www.sl.universalservice.org/reference/educational_purposes. asp End-user devices and content generally not eligible –PCs/PDAs- Printers- Televisions –Laptops- Phones- VCRs

16. 16 Educational Purpose Activities that occur on library or school property are presumed to be integral, immediate and proximate to the education of students or the provision of library services to library patrons and therefore qualify as educational purposes. Customary work activities of employees of a school or library are presumed to fall under the definition of education purposes.

17. 17 Service Eligibility High Points Each category has its own rules for eligibility –Be sure to apply in the correct category of service Products and services are “conditionally eligible” Telecommunications services must be provided by a telecommunications carrier

18. 18 Internet Access Key differences between E-Rate funding for telecom and internet access –Service Providers need not be telecommunications carriers –Service is strictly limited to “basic conduit access” to the internet –No direct connectivity between sites (i.e., telecommunication services) is allowed

19. 19 Internal Connections Eligibility is conditional –Depends on how product is used –Network server Eligible if used as an email server Not eligible if used to store other types of end user files

20. 20 2 in 5 Rule Applies to Internal Connections funding requests only –Is entity specific –Starts with Funding Year 2005

21. 21 How to Track the 2 in 5 Rule 05060708091011121314 Funded Eligible to apply Funded Eligible to apply

22. 22 How to Track the 2 in 5 Rule 05060708091011121314 Funded Eligible For Funding Funded Eligible For Funding Eligible for Funding

23. 23 Basic Maintenance of Internal Connections (BMIC) Eligible –Repair and upkeep of eligible hardware –Wire and cable maintenance –Basic technical support –Configuration changes –More information: http://www.usac.org/sl/applicants/step06/eligible- services-framework.aspx http://www.usac.org/sl/applicants/step06/eligible- services-framework.aspx

24. 24 Basic Maintenance of Internal Connections (BMIC) Not subject to 2 in 5 rule Caution: –If a contract goes beyond what the FCC defines as basic maintenance, the entire contract will be denied –Don’t jeopardize your funding request by including components that go beyond basic maintenance –Include the components that the BMIC Contract will cover on your Item 21 attachment –BMIC can not be 24/7 coverage

25. 25 Form 470

26. 26 Prepare For The Cycle Technology Plan Must be approved by certified tech plan approver and cover entire funding year (July 1 st – June 30 th ) http://www.sl.universalservice.org/reference/tech/d efault.asp http://www.sl.universalservice.org/reference/tech/d efault.asp Include supplemental budget analysis if using EETT plan as your approved E-Rate tech plan Know what you are applying for –Based on needs of District that are supported by the tech plan. Note: Ensure all E-rate requested services/products are included in your technology plan

27. 27 Prepare For The Cycle Other Information Number of existing lines for telecommunications –Direct dial, Centrex, ISDN, T-1s, DS3, … Expected growth Number of classrooms and computers with phone/internet access National School Lunch Program (NSLP) data for discount percentage

28. 28 Prepare For The Cycle E-Rate Management Authorized signer Organized filing system to track –Contracts –E-Rate Forms –Correspondence from SLD, Service Providers, etc. –Bid evaluation documents –All bids received –Deadlines

29. 29 Prepare For The Cycle Contracts Existing contracts –When do they expire –What services are included –What is the establishing Form 470 If contract is expiring between July 1, 2007 and June 30, 2008 –Will services need to be renewed –If yes, prepare a new Form 470 and possibly an RFP

30. 30 Form 470 – Contract Issues Block 2, Item 7 – Summary Description of Needs or Services Requested –Tariffed or Month-to-Month services –Services for which a new written contract is sought Multi-year and/or a contract featuring voluntary extensions Should also state in Item 13

31. 31 Form 470 Block 2, Items 8 – 9 –Describe services you desire from Eligible Services List Must fill this area out even if you have an RFP –Allows for service provider to decide if they qualify to bid –Form 470 could be considered invalid without this information

32. 32 Post Form 470 Once the Form 470 is posted you must 1.Certify online using a PIN, OR 2.Print the certification page, sign and mail Mail this form Immediately View form online to get the Allowable Contract Date –Also provided in the Receipt Acknowledgement Letter

33. 33 Form 470 Reminders Leave adequate time –Competitive Bidding – minimum of 28 days –Local Procurement –Board Approval –Signing Contracts CMAS - Letter of Intent (LOI) Understand –Your existing services –Products and services you will need in the coming year Identify E-rate category for each product and service, P1 or P2

34. 34 Procurement Tool - CMAS California Multiple Awards Schedule –Procurement option –Contract prices are ceilings, encouraged to negotiate lower –List of approved contractors: http://www.dgs.ca.gov/pd (click on dropdown menu to select CMAS)http://www.dgs.ca.gov/pd

35. 35 How to Use CMAS Specify on Form 470 and/or RFP that only CMAS Vendors will be considered –Get bids from multiple vendors –Select winning bid based on standard evaluation, weighting cost as the highest factor –Use “CMAS” as contract number on Form 471

36. 36 CMAS, Cont. Send copy of PO to Department of General Services (DGS) –Admin Fee is 2.24% (currently) Price book http://www.ofs.dgs.ca.gov/Price+Book /P/Purchasing.htm http://www.ofs.dgs.ca.gov/Price+Book /P/Purchasing.htm –CMAS fee is capped at $7,500 for commodities and $35,000 for IT

37. 37 Competitive Bidding

38. 38 Competitive Bidding Fair and open competitive bidding process Avoid conflicts of interests –Independent Consultant vs. Service Provider –Applicant vs. Service Provider Follow the rules – FCC and state/local Read the contract fine print Document the process!!!

39. 39 Competitive Bidding and Program Compliance http://www.sl.universalservice.org/reference/Be stPractices.asphttp://www.sl.universalservice.org/reference/Be stPractices.asp –Keep copies of all bids, winning and losing –Documentation on the award process and the rationale for the bid award –Complete copies of all related contracts Best Practice: use standard evaluation process for all bids. Keep evaluation documentation for each bid.

40. 40 Program Compliance If you get NO bids – document this for audit purposes –Same is true if you get only ONE bid You may need to be proactive in soliciting for bids

41. 41 Evaluation Criteria CMAS is a Best Value program Price must be the most heavily weighted factor Don’t include Intent to Award or Evaluation Criteria in CMAS Request for Proposal Can choose most responsive and responsible response, but must DOCUMENT the choice and process Have District official SIGN and DATE the completed rubric as acknowledgement

42. 42 Vendor AVendor B RawWeightedRawWeighted Selection Criteria Weight* (%) Score**Score*** Score Prices/Charges40%10.420.8 Understanding of Needs15%20.310.15 Prior E-Rate Experience10%20.210.1 Prior District/Service Prov experience 10%20.210.1 Completeness of Response15%20.310.15 References10%20.210.1 Overall Ranking100%1.61.4 SAMPLE SAMPLE SAMPLE SAMPLE SAMPLE

43. 43 Form 470 – Multi Year Contracts You may not need to file Form 470 every year if: –The language on the Form 470/RFP covered all services on the contract AND –The applicant indicated on the Form 470 that a contract was being sought AND –The applicant indicated on the Form 470/RFP that he is seeking a multi year contract (perhaps w/voluntary extensions)

44. 44 Contracts Must be signed AFTER 28 days have elapsed but BEFORE you file your Form 471 Must be signed and dated by BOTH parties – applicant and service provider Be prepared to explain documents that don’t look like a traditional contract.

45. 45 Form 471

46. 46 471 Purpose Specific information on services, service providers selected and contracts Discount calculation information Must be filed EACH funding year Contains certifications of compliance Includes one or more funding requests ( Note: Do a separate Form 471 for each category of services, i.e. telecommunications, internal connections)

47. 47 Form 471 Deadline Best Practice: –File Online –Submit BEFORE close of window –Certify BEFORE close of window Online if using PIN By trackable mail if you do not use your PIN ** Bishop Perry Order – 15 day grace period for certifications made after the deadline http://www.usac.org/_res/documents/sl/pdf/List-of-Correctable- Ministerial-and-Clerical-Errors.pdf http://www.usac.org/_res/documents/sl/pdf/List-of-Correctable- Ministerial-and-Clerical-Errors.pdf

48. 48 Form 471 Do’s and Don’ts WAIT AT LEAST 29 DAYS BEFORE: –Selecting a service provider –Signing a contract –Signing and dating the Form 471 –Submitting the Form 471 MUST OCCUR IN THIS ORDER Both Applicant and Service Provider must sign and date all contracts appropriately

49. 49 Item 21 Attachments Used to prove your request –Substantiating documentation that proves the pre-discount cost of services or products –Should be clear and concise

50. 50 Item 21 Attachment Samples available on USAC website –http://www.sl.universalservice.org/refere nce/Form471item21Attachments.asphttp://www.sl.universalservice.org/refere nce/Form471item21Attachments.asp Remove ineligible costs – be careful –30% rule – if 30% or more of the dollar value is for ineligible products and services, the entire request will be denied Work with service provider(s) to create your Item 21 attachment(s)

51. 51 Recurring vs. Non Recurring Costs Enter recurring and non-recurring costs carefully in the cost summary of each Funding Request –Services for recurring costs must ALWAYS be received by June 30 –Services for non-recurring costs must be received by September 30 following the Funding year (deadline can be extended for certain circumstances)

52. 52 Form 471 Reminders Mixing Priority 1 and Priority 2 services on the same Form 471 will delay your funding Make sure you cite the correct establishing Form 470 Application Number Make sure you choose the correct category of service Check your math, check it again Check your application, check it again

53. 53 Application Review Funding Commitment

54. 54 Program Integrity Assurance (PIA) Applications are reviewed for compliance with program rules concerning areas such as: –Competitive bidding process –Contracts –Discount calculation –Sufficient budget –Establishing Form 470 –Technology plan –CIPA (Children’s Internet Protection Act)

55. 55 Be Responsive Respond promptly, be sure to answer questions in their entirety Document communication with PIA, send email to PIA as a confirmation of your phone conversations Ask for more time if you need it –Be advised that if you ask for more time the Reviewer will move on to another application Don’t assume that Reviewer has all of the information you sent in as part of your Item 21 attachment.

56. 56 What Happens After PIA Review A Decision – FCDL (Funding Commitment Decision Letter) –Funded –Not Funded –As Yet Unfunded (Priority 2 requests) –Cancelled IMPORTANT – Check all entries in the FCDL carefully to make sure there are not data entry errors.

57. 57 Funding Commitment Decision Letter Otherwise known as FCDL Should be your “trigger” to file subsequent forms Starts deadline clock for appeal on denial(s)

58. 58 Form 486 Receipt of Services Confirmation

59. 59 Purpose of 486 Notifies USAC that services have started and invoices can be paid Certifies that Tech Plan meets program requirements Certifies the status under Children’s Internet Protection Act (CIPA)

60. 60 When To File Filed AFTER receipt of FCDL. –Form 486 must be 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

61. 61 Adjusted Service Start Date If the Form 486 is late, your Service Start Date will be adjusted to 120 days prior to the online submission or 120 days prior to the postmark. Affects telecommunications and internet access –Funding will more than likely be reduced May affect internal connections –Depends on installation date compared to service start date

62. 62 Adjusted Service Start Date Other Reasons –USAC may adjust the Service Start Date in order to comply with program rules: Form 486 filed after deadline Technology plan approval issue CIPA compliance issues Conflict with Form 470 allowable contract date

63. 63 Adjusted Service Start Date, Cont The adjusted date is the earliest date that discounted services may be provided. Invoices for services provided before that date will not be paid.

64. 64 Form 486 Specifics Block 4 Tech plan HAS BEEN APPROVED. Give name of approving agency Services have been/will be provided Contracts are in place, unless MTM or Tariff Status of CIPA compliance

65. 65 Block 4 Continued  CIPA Certification –Items a – c are for Billed Entity who is the Administrative Authority Certify that you are CIPA compliant –Items d – e are for the Billed Entity who represents one or more Administrative Authority

66. 66 Form 486 Notification Letter (486NL) Letter received after filing of Form 486 –Verify that ALL FRNs are on letter –Verify service start dates for each FRN USAC is now ready to begin receiving invoices for payment on these FRNs –Form 472 – filed by Applicant OR –Form 474 – filed by Service Provider

67. 67 Form 472 – BEAR and Form 474 - SPI

68. 68 Receipt of Funds One of two ways: –Applicant pays entire bill up-front and gets reimbursed Form 472, or BEAR – filed by Applicant –Service Provider applies discounts to bills and applies to USAC for reimbursement Form 474, or SPI – filed by Service Provider

69. 69 Form 472 Once form is filled out it must be signed by –Applicant –Service Provider Form is then mailed to SLD –SLD reviews the form –BEAR Notification is sent to both Applicant and Service Provider From the date Service Provider receives funds from USAC he has 20 days to pay Applicant.

70. 70 Form 474 - SPI Used by Service Providers –Puts discount on the bill –Applicant pays only their non-discounted portion This method is easiest for applicants, but Can be more difficult to track refunds

71. 71 NEW – Online BEAR Available Fall 2006 Applicants can file and certify online Service providers can certify online Communications will occur by email Forms that are rejected for non-certification can be resubmitted

72. 72 Special Note on Form 472 Note – Form 472 cannot be filed if Applicant is also receiving the California Teleconnect Fund discount. Resolution T-16763, effective May 27, 2004 –Carriers can use the Billed Entity Applicant Reimbursement (BEAR) funding process for E-rate customers until 7/1/06. Applies only to Telecommunications

73. 73 Important Reminders Print and retain copies of everything Keep E-Rate files organized Create a timeline of E-Rate deadlines Share this information with others at your site