Tom Torlakson
State Superintendent
of Public Instruction
CALNET 2
1
CALNET 2 Background
Tom Torlakson
State Superintendent
of Public Instruction
• State of CA issued RFP in 2005 for P1
(Telecom & Internet Services).
• State RFP was for initial term of 5 years.
• Terms of RFP were that State had unilateral
right to extend contract for two additional one
year periods.
• State issued Form 470 #267290000544188 in
conjunction with RFP.
• CALNET 2 contracts, MSA 1 and 2 awarded to
AT&T, signed on 1/30/2007.
• Initial 5 yr term ran through 1/29/2012.
Status of CALNET 2
Tom Torlakson
State Superintendent
of Public Instruction
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On 8/31/10, State of CA issued a Memo of Understanding
(MOU) to AT&T exercising option to extend CALNET 2 for
additional two one year extensions.
The new CALNET 2 expiration date is 1/29/2014.
Current AT&T CALNET 2 customers will automatically have
option to continue receiving services under CALNET 2 through
new expiration date of 1/29/14.
AT&T Customers DO NOT NEED to sign any additional
documentation to continue receiving existing CALNET 2
services.
– Note: Requests for new Service Categories and/or requests for
new optical services will require new documentation.
•
If non-State customer does not want to continue receiving
CALNET 2 services beyond 1/29/12, non-State customer may
terminate ATO with no penalty, provided ATO has been in
effect for minimum of two yrs.
• If termination occurs within two yrs of execution, early termination fees
may apply.
State Form 470
Tom Torlakson
State Superintendent
of Public Instruction
• State issued Form 470 #267290000544188 in
conjunction with RFP in 2005.
• CALNET 2 RFP & contract had provisions for
extending for two (2) add’l option years, but State
of CA failed to check box associated with Question
7B on Form 470 that add’l year extensions would
be considered.
• FCC Order (DA 10-2217) waived the rule for the
State Form 470 ONLY so that
– Customers relying on the State Form 470 may
reference the State Form 470 on its Form 471 Block
5 funding requests for CALNET 2 services during
extension period 1/30/12 to 1/29/14.
• Applicants citing their own Form 470 when ATOs
were signed must verify if they checked the option
for multi-year contracts under 7B.
Possible Applicant
Scenarios
Tom Torlakson
State Superintendent
of Public Instruction
Scenario #1; Applicant used the State Form 470 to
establish service and sign Authorizations to Order
(ATOs).
1. No additional Form 470 is required.
2. Cite original State Form 470 #267290000544188 as the
establishing Form 470 on Block 5 funding request.
3. Contract Award Date (CAD) cite same date used on
previous year’s Form 471 Block 5 funding request for this
service – date should match your ATO last signature date
(of the three required signatures).
4. Block 5 funding request Contract Expiration Date should
now be January 29th 2014 to reflect the State’s extension.
Scenario #2
Tom Torlakson
State Superintendent
of Public Instruction
Scenario #2: Applicant used its own Form 470 to establish
service and sign Authorizations to Order (ATOs).
1.Refer to original Form 470 Block 2, Item 7b: Did you check the
option for contracts with voluntary extensions?
2.If YES, for Contract Award Date (CAD) cite same date used on
previous year’s Form 471 Block 5 funding request for this service
– date should match your ATO last signature date (of the three
required signatures) - and the Contract Expiration Date should
now be January 29th 2014 to reflect the State’s extension.
Scenario #3
If applicant did NOT check the box to allow for contracts with
voluntary extensions on its own Form 470, then:
Tom Torlakson
State Superintendent
of Public Instruction
1.Applicant must file a new Form 470 for services
2.Applicant must conduct a competitive bidding process following
FCC, state, and local procurement guidelines.
3.After 28 days from posting of Form 470, or from availability of
an RFP (if applicable), whichever is later, applicant may select a
service provider.
– Note: please refer to earlier guidance on competitive bidding
requirements and use of an evaluation matrix with cost of eligible
services being the most heavily weighted factor.
4.If AT&T/CalNet2 is the service provider selected, no additional
contract is necessary, applicant may continue services under
existing ATO (Board authorization may be required).
5.If another service provider is selected, any new contracts must
be awarded and signed before the Form 471 is filed… deadline is
March 24, 2011.
Scenario #3 continued
Using an existing contract as a response to a Form 470
Tom Torlakson
State Superintendent
of Public Instruction
1.Per the February 4, 2011 Schools and Libraries News Brief:
“You can consider your existing contract as a bid response, but you must also
evaluate any other bids received. Note that if your existing contract is not the
most cost-effective solution with price as the primary factor in your bid
evaluation, you will not be able to receive E-rate discounts under your existing
contract for FY2011.”
2.If an existing contract is selected as most cost-effective solution
per FCC guidelines:
–Document the selection of the service provider under existing contract with an
evaluation matrix, dated memo, and/or Board action item (all, if appropriate).
Note that this must occur after the Form 470 28-day period, but before filing the
Form 471.
–The Contract Award Date (CAD) on Form 471, Block 5 may be:
1) The actual date the original contract was awarded. Please be aware
that you will receive questions during PIA about this since the CAD will
precede the Allowable Contract Date (ACD) on the Form 470.
2) The date that the existing contract was selected as the most costeffective solution. Make sure to carefully document the selection
process as you may need to justify the process and why the contract
signature dates don’t correspond to the Form 470 ACD to a Selective
Reviewer or auditor at a future date.
Questions?
Tom Torlakson
State Superintendent
of Public Instruction
9
Tom Torlakson
State Superintendent
of Public Instruction
E-RATE NEXT
STEPS….
What you should be
doing now
Form 470/Competitive Bidding
Tom Torlakson
State Superintendent
of Public Instruction
• 28-day window starts from posting of Form 470,
or availability of RFP, whichever is later
• Create evaluation matrix with cost of E-rate
eligible services the most heavily weighted
factor prior to opening and reviewing bids
• Make sure to document each step of process
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Vendor communication, bid documents, sign-in sheets
Copies of ALL bids, winning and losing
Copy of signed and dated evaluation matrix
If one or no bids are received, document in a dated
memo or e-mail
• Allow adequate time for contract awards and
signatures
Form 471 Preparation
• File separate Forms 471 for Priority One and
Priority Two Services
Tom Torlakson
State Superintendent
of Public Instruction
– You are not required to file a separate Form 471 for
each type of service (i.e. phone service, Internet
Access, web hosting)
• Collect pertinent documentation ahead of time…
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Block 2 information
Block 4 entity numbers and NSLP data
Block 5 contracts, SPINs, and estimated costs
Block 6 budget information
• Prepare Item 21 Attachments – MUST be filed
on or before March 24, 2011
– Refer to USAC guidance on methods available to
submit Item 21 attachments
http://www.usac.org/sl/applicants/step07/form471attachments.aspx
Once you have filed Form 471…
Tom Torlakson
State Superintendent
of Public Instruction
• Collect and file all documentation supporting
process – must retain for a minimum of 5 years
from June 30, 2012 (may be longer depending on
contract terms and final implementation schedules)
• Review Form 471 Receipt Acknowledgement
Letter (RAL) carefully
– Any corrections relating to discount level and cost
increases must be submitted within RAL period or
USAC will not honor them
– Any increases must be substantiated by
documentation dated prior to March 24, 2011
• Respond to Program Integrity Assurance (PIA)
review questions promptly and ask for an
extension if necessary