1. E-RATE Fundamentals

2. What is E-Rate Federal Discount Program – Schools & Libraries Supports Connectivity – Telecommunication services – Internet Access 4 Categories of Service 1.Telecommunication Services 2.Internet Access 3.Internal Connections 4.Basic Maintenance of Internal Connections 2

3. What is E-Rate Discounts – Student Poverty Level – Urban / Rural Status – 20% to 90% Discounts or Reimbursements 3 % NSLPUrban DiscountRural Discount < 120%25% 1 – 1940%50% 20 – 3450%60% 34 - 4960%70% 50 – 7480% 75 - 10090%

4. Who Administers E-Rate FCC – Federal Communications Commision – Telecommunications Act of 1996 USAC – Universal Service Administrative Company – Created to run the Universal Services Program SLD – Schools and Libraries Division – One division of USAC that runs E-Rate 4

5. Who Administers E-Rate 5

6.  Fair Warning  E-Rate is not an easy process Only for the strong willed and determined Long process, a lot of paperwork, some frustration Patience is needed, in addition to diligence in reading correspondence Rewards can be great! 6

7. At Your Service CSB (Client Service Bureau) – Your help desk – Call when you want answers and assistance – 888-203-8100 – Keep all communications on record TCSB (Technical Client Service Bureau) – Answer questions about technical matters. – Call CSB and ask for TCSB person http://tpesc.esc12.net/erate/terminology.html 7

8. Resources SLD website: – http://www.universalservice.org/sl/ http://www.universalservice.org/sl/ E-Rate Support pages: – http://tpesc.esc12.net/erate/default.html http://tpesc.esc12.net/erate/default.html Join TPESC E-Rate Listserv: – http://tpesc.esc12.net/eratedata/maillist.aspx http://tpesc.esc12.net/eratedata/maillist.aspx 8

9. Record Keeping What do you need to keep? – EVERYTHING: – All forms (470, 471, 486, 472, etc.) – All correspondence – All checklists, worksheets, bids, invoices, etc. – All phone conversations Where do you keep these? – Files or folders that are well organized – Electronic Versions as well 9

10. E-Rate Process Flowchart - I 10

11. E-Rate Process Flowchart - II 11

12. Discounts Current Bills = $10,000.00 Eligible Discount = 80% School pays vendor $2,000.00 Vendor invoices SLD for $8,000.00 SLD approves and pays $8,000.00 Vendor has now been “Paid in Full” 12

13. Reimbursement Current Bills = $10,000.00 Eligible Discount = 80% School pays vendor $10,000.00 School request reimbursement from SLD SLD approves and pays $8,000.00 to vendor Vendor now owes school $8,000.00 Check or Credit 13

14. Program Process - I 1.Determine Eligibility 2.Develop a Technology Plan 3.Open a Competitive Bidding Process 4.Select a Service Provider 5.Calculate the Discount Level 6.Determine Your Eligible Services 14

15. Program Process - II 7.Submit Your Application for Program Support 8.Undergo Application Review 9.Receive Your Funding Decision 10.Begin Receipt of Services 11.Invoice USAC 15

16. 16

17. 1 - Eligibility School – Elementary / Secondary – Public / Private – Day / Residential – Public Charters – Non-Profit – Endowments ≤ $50 million 17

18. 2 - Technology Plan Technology Planning (pg. 44-49) – http://tpesc.esc12.net http://tpesc.esc12.net – http://tpesc.esc12.net/eplan http://tpesc.esc12.net/eplan Texas STaR Chart – http://tpesc.esc12.net http://tpesc.esc12.net – http://starchart.esc12.net http://starchart.esc12.net 18

19. 3 – Bidding Process Form 470 ( pg. 180 ) – Services or functions you require RFP’s not mandatory Identify what category of service Identify who will receive requests Follow state procurement laws Wait 28 days to choose vendors 19

20. 3 – Bidding Process Form 470 ( pg. 180 ) – Only exception Multi-year contract – Original 470 specified multiple years State Master 470 / Contract – State files 470 20

21. 3 – Bidding Process Form 470 ( pg. 204 ) – Block 1 – Address and Identification – Block 2 – Description of Services – Block 3 – Technology Resources – Block 4 – Recipients of Service – Block 5 – Certification / Signature Online Version – Recommended 21

22. 4 – Select Provider Provider must have SPIN (pg. 16) – Not necessary for bid but for selection – Verify Status every year 470 must be posted for 28 days – Including any RFP’s All bids considered Most Cost Effective provider – Price primary but not sole factor 22

23. 4 – Select Provider 23 FactorWeight Price30 % Prior Experience25 % Personnel Qualifications20 % Management Capability15 % Local Vendor10 % Total100 %

24. 4 – Select Provider May select from state contracts – Must meet state and FCC requirements Signed Contracts – BEFORE submitting the 471 – No Verbal Agreements and Quotes Must have supporting 470 Multi-Year Contracts – Must have indication on 470 – Includes voluntary extensions 24

25. 4 – Select Provider SPIN Search – http://www.sl.universalservice.org/Forms/SPIN_Co ntact_Search.asp http://www.sl.universalservice.org/Forms/SPIN_Co ntact_Search.asp Changing Service Provider (pg. 18) – 2 types Operational – To change companies Correctional – To correct information 25

26. 5 – Discounts Two criteria for discounts – Location Where are the schools located? – Rural – Urban – Poverty Level What is the income level to the students’ parents that attend each to the schools? National School Lunch Program (NSLP) 26

27. 5 – Discounts (Location) Establish Rural / Urban Status (pg. 33) http://www.universalservice.org/sl/applicants/ste p05/urban-rural/msa/texas.asp Counties listed here classified as Rural 27

28. 5 – Discounts (Poverty) NSLP – Current year data from PEIMS – Last years data from the TPESC website http://tpesc.esc12.net/erate/nslpdata.html Calculations on the Form 471 (pg. 270) – Individual Schools (pg. 37) – School Districts (pg. 38) – Non-Instructional Facilities – NIF’s (pg. 39) 28

29. 5 – Discounts (Poverty) NSLP – Current year data from PEIMS – Last years data from the TPESC website http://tpesc.esc12.net/erate/nslpdata.html Calculations on the Form 471 (pg. 270) – Individual Schools (pg. 37) – School Districts (pg. 38) – Non-Instructional Facilities – NIF’s (pg. 39) 29

30. 5 – Discounts (Alternate) Sample Survey Method – NSLP (pgs. 35 & 36) – http://www.usac.org/sl/applicants/step05/alternati ve-discount-mechanisms.aspx http://www.usac.org/sl/applicants/step05/alternati ve-discount-mechanisms.aspx – must be sent to all families – response rate of at least 50% – Must contain the following information Address Grade level of each child Size of family Income level of the parents 30

31. 5 – Discounts (NIF’s) Non-Instruction Facility – Definition Established by FCC 2 nd Report and Order Educational Purposes – “The customary work activities of school …and customary activities that occur on school …property are presumed to be activities for educational purposes.” – “Activities that are integral, immediate, and proximate to the education of students …qualify as “educational purposes” 31

32. 5 – Discounts (NIF’s) Examples – administrative buildings – school bus barns and garages – cafeteria offices – facilities associated with athletic activities not schools, but some have a classroom Need entity number – If separate building – or serve more than one location NIF with no classroom, use district average for discount 32

33. 5 – Discounts (NIF’s) Eligibility of Priority 1 Services On-site – Telecommunications services and Internet access provided to NIF located on school property are eligible for support Eligibility of Priority 2 Services On-site – Not eligible – Unless essential for the effective transport of information to an instructional building of a school 33

34. 6 – Eligible Services 4 categories (p.51) – Telecommunications Services – P1 – Internet Access – P1 – Internal Connections – P2 – Basic Maintenance of Internal Connections – P2 Only certain products and services, used in certain ways, are eligible Eligibility is based on criteria established by statute and FCC rules 34

35. 6 – Eligible Services Eligibility for support ( pg. 51) – Product or Service is eligible – Put to an eligible use – Used by an eligible entity – At an eligible location Order of Funding – Priority 1 services are funded first – Priority 1 - Remaining support is then applied 35

36. 6 – Eligible Services Mixing Funding Categories – DON’T DO IT – Always submit a different 471 for each category (Priority 1 / Priority 2) Eligible Services List (pg 74) – http://www.universalservice.org/sl/tools/eligible- services-list.aspx http://www.universalservice.org/sl/tools/eligible- services-list.aspx 36

37. 6 – Eligible Services 2 of 5 Rule (pg. 52) – Only applies to P2, Internal Connections Internal Connections only Discounts for internal connections are available to an eligible entity two out of every five funding years Started in FY 8 (2005-2006) On-Premise, Priority 1 equipment (pg. 63) Conditions for On-Premise P1 equipment » Graphic examples on pages 68-70 37

38. 6 – Eligible Services Priority 1 Services Off-site – Telecommunications services used offsite may also be eligible IE: "a school bus driver's use of wireless services while delivering children to and from school…use by teachers or other school staff while accompanying students on a field trip..“ This provision applies to telecommunications services only – Internet access services used offsite, including e- mail services, are not eligible for funding 38

39. 6 – Eligible Services Priority 1 – Telecommunications Only an Eligible Telecom Provider (ETP) can sell to the applicant if you want E-Rate support – Internet Access ETP or ISP can sell to the applicant and get E-Rate Support If you purchase from the wrong provider, you cannot be funded 39

40. 6 – Eligible Services Basic Maintenance (pg. 90) – must specifically identify the eligible products or services covered: including product name Model number Location – Eligible: repair & upkeep of eligible products if you buy it you can support it – Ineligible: on-site technical support, 24 hour monitoring, network management, help desk to support 40

41. 6 – Eligible Services WAN vs. LAN (p. 97) – a connection does not constitute an Internal Connection if it crosses a public right of way LAN – Purchases can be made within the IC Category WAN – P1 service – only leased services 41

42. 6 – Eligible Services Remote Access (pg. 85) – remote access can be eligible if steps are taken to ensure that only eligible entities, from eligible locations, will have the capability to access them – Dial-up account for students/teacher are not eligible – Sharing bandwidth is also not eligible 42

43. 6 – Eligible Services Remote Access (pg. 85) – Not eligible unless steps are taken to ensure that only eligible entities, from eligible locations, will have the capability to access them – Dial-up account for students/teacher are not eligible – Sharing bandwidth is also not eligible 43

44. 6 – Eligible Services Fiber Networks – P1 Service – Dark Fiber – not eligible – Lit Fiber – eligible IF…. Modulating electronics are bundled with the lease cost of the fiber Applicant will never own fiber Applicant cost allocates any lease of fiber that is not being used in that funding year 44

45. 7 – 471 Application 3 Parts 1.Form 471 Form 2.Form 471 Item 21 Attachment 3.Form 471 Certification Form 471 (starts on pg 243) – file online – Must be certified – Must be postmarked or certified online prior to the close of the application filing window 45

46. 7 – 471 Application Form 471 Item 21 Attachment – Services and products details – may be created and submitted online (You may decide to use paper submission for large network projects) – consists of these parts: Narrative overview or description Line item detail Any additional details, if needed 46

47. 7 – 471 Application Form 471 Certification – you must certify this form to be complete – Electronic PIN you can submit this certification form electronically – PIN Information: http://www.universalservice.org/sl/tools/search- tools/applicant-pin-faqs.aspx http://www.universalservice.org/sl/tools/search- tools/applicant-pin-faqs.aspx – Paper Certification Postmarked by deadline 47

48. 8 – Application Review PIA (Program Integrity Assurance) – Each application is reviewed to ensure that funding is committed only for eligible products and services as well as eligible uses by eligible entities. Speed up your review – Submit complete Form 471 – Responding to PIA within 7 days – Verifying correct contact information (Block 1) Contact Name, Address, Fax, Phone, Email (Complete all information in this section) 48

49. 8 – Application Review Changing Block 1 – Information – On school letterhead, detail the requested change(s) – EMAIL, FAX or Mail http://www.universalservice.org/sl/about/update- contact-information.aspx 49

50. 8 – Application Review Changing Block 1 – Information – On school letterhead, detail the requested change(s) – EMAIL, FAX or Mail http://www.universalservice.org/sl/about/update- contact-information.aspx 50

51. 9 – Funding Decision Funding Commitment Decision Letters (FCDLs) – Issued to applicant and service provider(s) – Issued in Waves – Priority One and then Priority Two Read FCDLs CAREFULLY (pg. 324) – Read ‘Important Deadlines’ CAREFULLY - Sample (p. 323) 51

52. 10 – Begin Services Form 486 (Receipt of Service Confirmation) – USAC cannot process a payment for an FRN unless the 486 has been filed. The Form 486 filing deadlines – 120 days after the Service Start Date featured on the Form 486, or 120 days after the date of the Funding Commitment Decision Letter, whichever is later 52

53. 10 – Begin Services Technology plans – must be approved before services start and before the applicant submits the Form 486 – must be able to provide a technology plan approval letter issued by a USAC-certified technology plan approver Since most approval letters are posted on a website in the ePlan system, the applicant should print and retain a copy 53

54. 10 – Begin Services CIPA Requirements: (p. 124) – must enforce a policy of Internet safety – must certify compliance with Children’s Internet Protection Act (CIPA) – CIPA requirements include the following three items: Technology Protection Measure Internet Safety Policy Public Notice and Hearing 54

55. 11 – Invoicing After services have been delivered, service providers and school applicants may submit invoices for payment. SPIF (Service Provider Invoice Form) BEAR (Billed Entity Applicant Reimbursement Form) 55

56. Contact Information Region 2 – E-Rate/E-Plan Questions – Ric Gonzalez – (E-Rate & E-Plan Support) 361-561-8656 ric.gonzalez@esc2.us ric.gonzalez@esc2.us – Chris Harris – (E-Rate & E-Plan Support) 361-561-8657 chris.harris@esc2.us chris.harris@esc2.us – Faye Stone – (E-Plan Support) 361-561-8667 faye.stone@esc2.us faye.stone@esc2.us 56

57. Contact Information TPESC Website – Region 12 – http://tpesc.esc12.net http://tpesc.esc12.net E-Rate Support – Region 12 – erate@esc12.net erate@esc12.net – http://tpesc.esc12.net/erate/default.htmlhttp://tpesc.esc12.net/erate/default.html – Voice: 254-297-1123 – Fax: 254-666-0823 57

58. Contact Information STaR Chart Support – Region 12 – starchart@esc12.net starchart@esc12.net – http://starchart.esc12.net http://starchart.esc12.net – Voice: 254-297-1275 – Fax: 254-666-0823 58