1. E-rate from the Service Provider Perspective Cynthia Schultz Train-the-Trainer Workshop September 27-29, 2004 Schools & Libraries Division

2. Slide #2Schools and Libraries Division AT THE ONSET uAsk questions! Get answers! u Use SPIN Search Tool n If SP not listed, call the CSB uCommunicate with your service provider(SP)

3. Slide #3Schools and Libraries Division TECHNOLOGY PLANS uSP may offer NEUTRAL technical assistance.

4. Slide #4Schools and Libraries Division THE COMPETITIVE BIDDING PROCESS uSP should not prepare or draft an RFP. n SP should not prepare, draft, and/or provide its own model RFP. uSP must remain NEUTRAL at all times. uSP may not interfere with applicant’s affirmative duty to conduct a fair and open bid process. uSP may not exert undue influence over an applicant.

5. Slide #5Schools and Libraries Division THE COMPETITIVE BIDDING PROCESS uSP may not provide funding for applicant’s undiscounted portion. uSP may not waive applicant’s undiscounted portion. uSP may not provide hidden incentives, such as free ineligible services.

6. Slide #6Schools and Libraries Division THE COMPETITIVE BIDDING PROCESS-PRECOMMITMENT uFORM 470 n SP may offer basic information, such as timelines and deadlines. n SP may contribute information on technical issues. n SP or its consultant may not complete the 470. n SP or its consultant may not sign the Form 470. n SP or its consultant may not file the Form 470.

7. Slide #7Schools and Libraries Division COMPETITIVE BIDDING REQUIREMENTS-PRECOMMITMENT uApplicant is to consider all viable bids received during the 28-day waiting period. uPrice of eligible goods and services must be the primary factor, that is, it must receive the greatest weight of any factor.

8. Slide #8Schools and Libraries Division COMPETITIVE BIDDING REQUIREMENTS uApplicant must comply with the 28-day waiting period after filing the Form 470 to choose a service provider and enter into a contract, as applicable. n Contract not required for month-to-month services n Contract required for contracted tariffed services.

9. Slide #9Schools and Libraries Division SERVICE PROVIDER ASSISTANCE uSP should always provide correct SPIN(s) and contact information. n Form 498 available on line since November 2003 and online certification to be made available Fall 2004. n Important for companies with multiple SPINs

10. Slide #10Schools and Libraries Division SERVICE PROVIDER ASSISTANCE uSP is encouraged to assist with providing information for the Form 471 Item 21 attachment for its services. n Applicant encouraged to provide relevant Item 21 attachment to service provider upon request. n Clear level of detail on the Item 21 attachment may advance the processing of the invoice. uAn example of such detail would be the inclusion of the item (model #), quantity, and unit cost.

11. Slide #11Schools and Libraries Division SERVICE PROVIDER ASSISTANCE uApplicants will not receive support for contracts that provide only a single price for a package that bundles both eligible and ineligible services together. n SP and applicant should work together to create pricing terms in the contract that separate eligible services from ineligible services. uSP is also encouraged to assist in providing applicant with billing account numbers and contract numbers.

12. Slide #12Schools and Libraries Division CONTRACT REQUIREMENTS uFCC Rules require applicant to sign a contract prior to the filing of a Form 471. 47 C.F.R. §54.504(c). uThe FCC Fifth Report and Order requires both the applicant and service provider to sign the contract prior to the filing of a Form 471. n This rule does not apply to non-contracted tariffed or month-to-month services. n Verbal agreements are not acceptable. n Quotes are not acceptable. n Purchase orders are acceptable if considered a contract pursuant to state and local procurement laws and state contract laws.

13. Slide #13Schools and Libraries Division CONTRACT REQUIREMENTS uService provider and applicant must comply with state contract law. uService provider and applicant must comply with state and local procurement laws. uLegally-binding agreement is another term for contract.

14. Slide #14Schools and Libraries Division CONTRACT REQUIREMENTS uApplicant must provide signed and dated contracts for reviews and audits. n Applicant must be prepared to prove its contract meets the requirements of state contract law. uApplicant certifies that it has signed a contract on its Form 486.

15. Slide #15Schools and Libraries Division CONTRACT AWARD DATE uThe Contract Award Date cannot be earlier than 28 days after the posting of the Form 470. uIf an applicant files its own Form 470 and chooses either a new or a pre-existing state master contract as the most cost effective bid, the applicant should n memorialize its decision to purchase off the state master contract after the bidding process is complete and n record the date of this memorialization as the relevant Contract Award Date in its submitted Form 471 application.

16. Slide #16Schools and Libraries Division CONTRACT AMENDMENTS uContract services may be amended if the contract allows for such an amendment, but if those services were not posted on the original Form 470, the applicant must post a new Form 470. uIf the original Form 470 or RFP did not include the newly-eligible services or entities, the applicant will be required to post a new Form 470 for those services.

17. Slide #17Schools and Libraries Division CONTRACT AMENDMENTS (cont.) uIf the contract allows for service substitutions and there is a change on the Item 21 attachment, then the applicant or service provider should submit a service substitution, as applicable to SLD rules. uContract dates may be amended if the contract allows for such amendments. n If applicant and service provider extend the contract date, the applicant is required to file a Form 500.

18. Slide #18Schools and Libraries Division CONTRACTS WITH VOLUNTARY EXTENSIONS uA contract featuring voluntary extensions means that the contract expires at the end of its original term and may be voluntarily extended for one or more years pursuant to the provisions in the contract. n The applicant should indicate in Item 7b on the Form 470 whether it is seeking a multiyear contract and/or contract featuring voluntary extensions. It may provide more detail in its RFP and/or Item 13 on the Form 470 about the length of the multiyear contract and/or voluntary extensions. uBest Practices—RFP and/or Form 470 should provide a range in years, for example—one- to three-year extension, three- to five- year extension.

19. Slide #19Schools and Libraries Division MULTI-YEAR CONTRACTS uA multi-year contract means a contract that covers more than one year. n For example, a three-year contract would expire at the end of the third year. n The applicant should indicate in Item 7b on the Form 470 whether it is seeking a multiyear contract and/or contract featuring voluntary extensions. It may provide more detail in its RFP and/or Item 13 on the Form 470 about the length of the multiyear contract and/or voluntary extensions.

20. Slide #20Schools and Libraries Division REIMBURSEMENTS V. DISCOUNTS uService provider is required to permit the applicant prior to the submission of the Form 471 to choose the Method of Payment — BEAR v. SPI — for discounted services n FCC Second Report and Order encourages the applicant and service provider to work together to determine the method of payment. n FCC Second Report and Order encourages parties to include the method of payment in the contract. n Notify SLD through online e-mail if SP refuses to permit applicant to choose methodology.

21. Slide #21Schools and Libraries Division CONTRACT DISPUTES uKnow your legal rights. uSLD does not intervene in disputes that are contract-based rather than program-rule based. n Contract disputes should be brought before local and state courts, not the SLD or the FCC.

22. Slide #22Schools and Libraries Division STATE MASTER CONTRACTS uScenario A. If the state filed a Form 470, then the applicant may cite the state’s Form 470 on its Form 471. n The applicant is required to follow the applicable provisions of the state master contract and local and state procurement laws. n No separate bidding documents or contracts are required by the applicant citing the state’s Form 470, other than what is required by the state master contract and local and state procurement laws. n The signed state master contract between the state and service providers meets the FCC signed contract requirement.

23. Slide #23Schools and Libraries Division uScenario B. If the applicant files a Form 470 and considers a state master contract as one of the bids: n The applicant is required to comply with the competitive bidding requirements uPrice must be the primary factor and must be weighted more heavily than any other factor. n If the applicant selects the state master contract: uThe applicant is required to follow the applicable provisions of the state master contract and local and state procurement laws. uThe signed state master contract between the state and vendors meets the FCC signed contract requirement. STATE MASTER CONTRACTS

24. Slide #24Schools and Libraries Division uIf the state master contract requires the issuance of purchase orders or contains other requirements for applicants n The applicants must follow the applicable dates set forth in the state master contract. n For example, if the state master contract requires the applicant to issue a purchase order by July 1, then the applicant is required to meet that deadline. STATE MASTER CONTRACTS

25. Slide #25Schools and Libraries Division ELIGIBLE TELECOM PROVIDER uEligible Telecom Provider is a USAC term. uThe FCC term is Telecommunications Carrier. n SLD will be changing the use of this term from ETP to Telecommunications Carrier to comport with FCC statutory and regulatory definitions.

26. Slide #26Schools and Libraries Division TELECOMMUNICATIONS CARRIER uSP may not provide telecom services if it has not been designated as a telecommunications carrier in the Telecommunications Carrier database. n New TC search database on SLD web site will provide: uStatus of designation on SP Name and SPIN basis uDate of USAC designation uList of applicable states

27. Slide #27Schools and Libraries Division TELECOMMUNICATIONS CARRIER (cont.) uFCC and SLD requirements for TC designation are: n SP must provide telecommunications services on a common carrier basis. n SP must file a Form 499 and ensure that the Form 498 reflects the Form 499 Filer. I.D. n SP must be designated a TC in SLD database.

28. Slide #28Schools and Libraries Division TELECOMMUNICATIONS CARRIER (cont.) uApplicant Beware—If an applicant applies for telecommunications services from an ineligible service provider, funding for those FRNs will be denied. uWhen seeking telecommunications services, applicant should check for the status of telecom designation on the SLD web site.

29. Slide #29Schools and Libraries Division WORKING WITH YOUR SERVICE PROVIDER uReview contracts, bills, invoices, amendments, service certifications – anything you are asked to sign or review uReview all certifications before signing uBEAR n Applicant should provide the entire documentation to the service provider, not just the Block 4 SP certification page.

30. Slide #30Schools and Libraries Division WORKING WITH YOUR SERVICE PROVIDER uMake sure documents are shared with the proper departments. uWork with the service provider on service substitutions. uWork with service provider on Item 21 attachment.

31. Slide #31Schools and Libraries Division DOCUMENT RETENTION POLICY uRemember 5-year retention requirement for all documents. uGood recordkeeping is ESSENTIAL. uKeep copies of EVERYTHING. uKeep these documents with E-rate files, or copies, if accounting department keeps its own files.

32. Slide #32Schools and Libraries Division DOCUMENT RETENTION POLICY uSee FCC Fifth Report and Order for a detailed list. uTypes of Records to Retain Include: n Competitive bid documents uRFPs, Bids, Quotes, Proposals, etc. n Signed Contracts and Purchase Orders n Service provider bills to customers uDetail of services/products and locations uIndicate entity(ies) receiving service/products uDelivery/installation dates n Applicant payments uCancelled checks uService credits for any reason

33. Slide #33Schools and Libraries Division TYPES OF SPIN CHANGES uGlobal SPIN Changes – mergers or acquisitions in whole or in part n Considered a Corrective SPIN change uCorrective SPIN Change – to correct data entry errors or where the applicant used the wrong SPIN for the service provider selected uOperational SPIN Change – reflects change in service provider by applicant and is only available after receipt of FCDL

34. Slide #34Schools and Libraries Division CORRECTIVE SPIN CHANGES uNot limited just to RAL; can make change at ANY time before the last date to invoice.

35. Slide #35Schools and Libraries Division OPERATIONAL SPIN CHANGES uFor changes to a new service provider uApplicant must make three certifications: n Change allowed under local procurement laws n Change allowed under terms of contract n Original SP notified of intent to change uNew guidance on web site requiring date and manner of notice. uCan NOT be used for telecom services if new SPIN is not eligible telecom provider.

36. Slide #36Schools and Libraries Division SPIN CHANGE GUIDELINES uRequests must be received by the last date to invoice. uCan NOT be used if FRN originally denied for ineligible provider; denials MUST be addressed through appeals process

37. Slide #37Schools and Libraries Division QUESTIONS