TOM TORLAKSON
State Superintendent
of Public Instruction
Training will begin
momentarily
E-rate Modernization 2014 /15 California Department of Education
1
TOM TORLAKSON
State Superintendent
of Public Instruction
E-rate Modernization
The new look and
feel of E-rate
E-rate Modernization 2014 /15 California Department of Education
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General Information about E-rate
The role of CA Dept of Ed and State Library
TOM TORLAKSON
State Superintendent
of Public Instruction
 CDE/K-12 HSN & State Library:
 Have no statutory authority to administer the federal Erate program
 May only offer general information about the E-rate/CTF
program including: training and outreach, reference
materials, and other publicly available SLD/USAC
resources
 The following information is provided to assist applicants
with their applications. It remains each applicant’s
responsibility to ensure FCC/USAC, State, and local
agency rules and practices are followed. All liability and
risk rests upon each applicant for E-rate approval.
E-Rate Modernization 2014/15 California Department of Education
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E-rate Modernization
News Flash
TOM TORLAKSON
State Superintendent
of Public Instruction
• Commissioner Wheeler is proposing a $1.5
Billion dollar increase to the cap.
– It would now be $3.9 billion annual cap
– Will be voted on December 11, 2014
•
The NEW Form 470 is now available
E-Rate Modernization 2014/15 California Department of Education
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Outline of training
TOM TORLAKSON
State Superintendent
of Public Instruction
1.
2.
3.
4.
5.
6.
7.
8.
9.
Highlights of changes to the program
Establishing your discount percentage
Eligible Services
Category 2 Budgets
Form 470 and the Bidding Process
Form 470 – Online Demonstration
Program compliance
Overview of Form 471
CTF – what’s new
E-rate Modernization 2014 /15 California Department of Education
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TOM TORLAKSON
State Superintendent
of Public Instruction
Highlights of the Changes
E-rate Modernization 2014 /15 California Department of Education
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Highlights of Changes
Overview
TOM TORLAKSON
State Superintendent
of Public Instruction
• Closing the Wi-Fi Gap
• Simplifying the Administration of the E-rate
program
– Purchasing and Contracts
– Discount Calculations
• Changes to Urban/Rural classifications
• Invoicing
• Document Retention
E-rate Modernization 2014 /15 California Department of Education
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Highlights of Changes
Closing the Wi-Fi Gap
Making Category 2 Funds Go Farther
TOM TORLAKSON
State Superintendent
of Public Instruction
• $1B funding target in FY 2015 and FY 2016 for Category
2 funding.
• If Category 2 demand exceeds available funds, prioritize
based on discount rate.
– If there are insufficient funds in a single discount rate,
prioritize based on the percentage of students that are
eligible for free and reduced school lunches within
each applicant’s school district.
• Top Category 2 discount rate now 85% instead of 90%.
• Two-in-Five rule on hold for FY 2015 and FY 2016
• Each site/library will have a specified budget for Category
2 (see slides 54-67)
E-rate Modernization 2014 /15 California Department of Education
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Highlights of Changes
Simple, Fast and Efficient
Multi-year Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
• Streamlined application process available starting in
FY 2016 for multiyear contracts filed in FY 2015 as
long as:
– the multi-year contract is five years or less, and
– to the extent applicable, any changes in the
requested services are within the scope of the
original FCC Form 470 and multi-year contract.
E-rate Modernization 2014 /15 California Department of Education
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Highlights of Changes
Simple, Fast and Efficient
TOM TORLAKSON
State Superintendent
of Public Instruction
Low-Cost, High Speed Business Class
Internet Access
• Form 470 not required for internet access IF:
Speed is at least 100mbps down and
10 mbps up
Cost is no more than $3,600/year
prior to E-rate discount
.
Service and price are commercially
available
• Cost may not be averaged between buildings.
E-rate Modernization 2014 /15 California Department of Education
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Highlights of Changes
Simple, Fast and Efficient
Technology Plans
TOM TORLAKSON
State Superintendent
of Public Instruction
• NO LONGER REQUIRED FOR E-RATE
• However, it is best practice for Districts to
maintain a Technology Plan
– Tech Plan Builder – a web tool
developed to aid in building Technology
Plan
E-rate Modernization 2014 /15 California Department of Education
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Highlights of Changes
Simple, Fast and Efficient
Urban/Rural Status
TOM TORLAKSON
State Superintendent
of Public Instruction
• Updated to reflect 2010 Census data.
• Now determined for the entire school district or
library system
– No longer individual schools or libraries
• More than 50% of the sites must be rural for
district/system to be classified as rural.
– Non-instructional facilities do not get an
urban/rural status
– See slides 26-33 for further detail
E-rate Modernization 2014 /15 California Department of Education
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Highlights of Changes
Simple, Fast and Efficient
Community Eligibility Program (CEP)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Schools must have at least 40% of their students
directly certified to qualify for CEP.
• Schools apply national multiplier (1.6) to directly
certified population to determine NSLP eligible
population.
• Schools are capped at 100% NSLP eligible for
purposes of determining the E-rate discount.
• More detail on slides 35-37
E-rate Modernization 2014 /15 California Department of Education
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Highlights of Changes
Simple, Fast and Efficient
Discount Surveys
TOM TORLAKSON
State Superintendent
of Public Instruction
• Surveys continue to be valid, though you
can no longer extrapolate the survey data.
• Starting in FY 2015, you can use NSLP
applications as your survey instrument.
• See slides 33-34 for more details
E-rate Modernization 2014 /15 California Department of Education
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Simple, Fast and Efficient
Document Retention
TOM TORLAKSON
State Superintendent
of Public Instruction
Contract
begins 7/1/15
Contract Ends
6/30/18
• 10 years from last date
to receive service.
• Documents may be
retained in electronic
format or paper and
must be disclosed
upon request.
Document
retention: at
least
6/30/2028
E-rate Modernization 2014 /15 California Department of Education
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TOM TORLAKSON
State Superintendent
of Public Instruction
Establishing your discount
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Overview
TOM TORLAKSON
State Superintendent
of Public Instruction
•
•
•
•
•
•
•
•
•
•
New Discount Principles
Revised Discount Matrix
Simplified School District Calculations
School Calculations
Library System Calculations
Non-Instructional Facilities (NIFs)
Consortia
Urban/Rural Classifications
Alternative Discount Mechanisms
Discount Exceptions
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
New Discount Principles
TOM TORLAKSON
State Superintendent
of Public Instruction
• Discounts are calculated for the organization as a
whole.
– Discount doesn’t change based on which entities
within a district/system are receiving service.
• Libraries derive their discount from the NSLP
eligibility of the district in which the main outlet is
located.
• Consortia continue to use simple average of
member discounts.
• Rural status is determined at the district/system
– > 50% must be Rural to have whole
district/system be Rural
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Revised Discount Matrix
TOM TORLAKSON
State Superintendent
of Public Instruction
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Simplified School District Calculations
TOM TORLAKSON
State Superintendent
of Public Instruction
• There is now ONE discount per district/library
system.
– Individual sites no longer have a discount
percentage
• The old strategy of combining like discount
percentages will no longer work.
– Urban/Rural status based on all of the schools in
the district (not including NIFs).
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Independent School Calculations
TOM TORLAKSON
State Superintendent
of Public Instruction
• Independent schools - not part of a district,
– calculate their discounts based on their own
student population.
– determine urban/rural status based on their own
physical address.
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Best practices
TOM TORLAKSON
State Superintendent
of Public Instruction
• Schools in CA are encouraged to use
“auditable” data to establish discount
– Monthly Claim for Reimbursement report
from Food Services
– CalPads section 1.17
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Library Systems Calculations
TOM TORLAKSON
State Superintendent
of Public Instruction
• Discount calculation: based on the percentage of
student eligible for the NSLP in the school district in
which the main outlet is located.
– No longer calculate discount based on all
districts in which library system has outlets.
• Urban/Rural status: based on their own outlets.
Therefore, the library system’s discount may not
match the school district’s discount rate.
– Bookmobile and kiosks count as library outlets.
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Non-Instructional Facilities (NIFs)
TOM TORLAKSON
State Superintendent
of Public Instruction
• By definition, NIFs are neither schools nor libraries.
• NIFs get the discount of the school district or library
system, regardless of the entities they serve.
• NIFs don’t get an urban/rural status
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Consortia
TOM TORLAKSON
State Superintendent
of Public Instruction
• Consortia calculate their discount based on the
simple average of their consortia members.
– Consortia may have multiple applications that
feature sub-sets of the members
• If this approached is used, the members listed on
the application MUST also be receiving the
services listed on the application.
– Only consortia entities can get a discount that
doesn’t come straight from the discount matrix.
• This is the traditional weighted discount (only for
consortia)
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Urban/Rural Classifications - reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• Based on 2010 U.S. Census data
• Determined for the entire school district or library
system, instead of for individual schools or libraries.
• More than 50% of the entities in a district/system
must be rural for district/system to be classified as
rural.
• Non-instructional facilities do not get an urban/rural
status
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Discount Calculations
Urban/Rural Classifications, cont’d
TOM TORLAKSON
State Superintendent
of Public Instruction
• New ‘Look-up’ tool being developed on SLD
Web site
– Release of tool anticipate in next few
weeks.
See USAC training materials (Urban/Rural Lookup Tool) for
overview of new tool.
http://www.usac.org/about/tools/TrainingArchive/SeriesDetails.
aspx?ID=150
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Discount Calculations
Urban/Rural classification, cont’d
TOM TORLAKSON
State Superintendent
of Public Instruction
• Current effect in CA
County Status prior to E-rate
2.0
County Status AFTER E-rate
2.0
22 Counties fully Rural
5 Counties fully Rural
20 Counties mixed Urban/Rural
39 Counties mixed Urban/Rural
16 Counties fully Urban
16 Counties fully Urban
– Look up your entity by address:
http://factfinder2.census.gov/faces/nav/jsf/pages/sear
chresults.xhtml?ref=addr&refresh=t
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Discount Calculations
TOM TORLAKSON
Urban/Rural Classifications, cont’d
Example
State Superintendent
of Public Instruction
School
U/R
Enrollment Eligible for
NSLP
Red
Urban
400
100
Blue
Urban
300
110
Yellow
Rural
300
123
DISTRICT
URBAN
1,000
333
E-rate Modernization 2014 /15 California Department of Education
District %
Eligible
33%
29
Discount Calculations
School District - Example
TOM TORLAKSON
State Superintendent
of Public Instruction
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Library System - Example
TOM TORLAKSON
State Superintendent
of Public Instruction
• Library System ABC
– Has library outlets in School Districts A, B, and
C.
– Main outlet is located in School District A.
• Calculate NSLP eligibility based only on
School District A’s population.
– Determine own urban/rural status based on
library outlets.
• Over 50% of library outlets are rural;
therefore library system is rural.
• Over 50% of library outlets are urban;
therefore library system is urban.
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
Library System - Example
TOM TORLAKSON
State Superintendent
of Public Instruction
E-rate Modernization 2014 /15 California Department of Education
32
Highlights of Changes
Simple, Fast and Efficient
Alternative Discount Mechanism - Surveys
TOM TORLAKSON
State Superintendent
of Public Instruction
• CHANGE IN HOW SURVEYS ARE
CALCULATED:
– you can no longer extrapolate the survey
data.
– Starting in FY 2015, you can use NSLP
applications as your survey instrument.
E-rate Modernization 2014 /15 California Department of Education
33
Discount Calculations
Alternative Discount Mechanism - Survey
TOM TORLAKSON
State Superintendent
of Public Instruction
• Example of how to calculate results from Survey
School
Enrolled
Surveys
returned
No.
qualified
for NSLP
Red
Elementary
300
125
100
Blue Middle
900
600
450
Green High
650
325
320
Total
1850
E-rate Modernization 2014 /15 California Department of Education
870
% of total
Enrolled
that qualify
47%
34
Discount Calculations
TOM TORLAKSON
State Superintendent
of Public Instruction
Alternative Discount Mechanisms Community Eligibility Program (CEP)
• Nationwide program to reduce NSLP paperwork
burden.
• Schools must have at least 40% of their students
directly certified to qualify for CEP.
• All students eat free, but this does not mean they
are counted as eligible for E-rate purposes. Must
still determine eligibility percentage.
• Schools in CA – use your Identified Student
Percentage (ISP) to establish the percent of
students that are Direct Certified.
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
TOM TORLAKSON
State Superintendent
of Public Instruction
Community Eligibility Program (CEP) example
• Schools apply national multiplier (1.6) to directly
certified population to determine NSLP eligible
population.
• Schools are capped at 100% NSLP eligible for
purposes of determining the E-rate discount.
Single
School
Enrolled
% Direct
Certified
Multiplier of Eligible
1.6
Yellow
School
1000
50% = 500
students
500*1.6 =
800/1000 =
800 students 80%
E-rate Modernization 2014 /15 California Department of Education
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Discount Calculations
TOM TORLAKSON
Community Eligibility Program (CEP) example
State Superintendent
of Public Instruction
E-rate Modernization 2014 /15 California Department of Education
37
TOM TORLAKSON
State Superintendent
of Public Instruction
Eligible Services
E-rate Modernization 2014 /15 California Department of Education
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Eligible Services
Overview
TOM TORLAKSON
State Superintendent
of Public Instruction
• Eligible Services List (ESL)
Category One
Category 2
Broadband
Internal Connections
Voice Services
Eliminated Internal
Connections
Eliminated Services
Managed Internal
Broadband Networks
Eligibility Limitations
Basic Maintenance of
Internal Connections
• Lit and Dark Fiber (see slide 58 for details)
• Pricing Transparency
• Bundling Order
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Eligible Services
Eligible Services List
TOM TORLAKSON
State Superintendent
of Public Instruction
• Focus support on Broadband
• Phase down of Voice Services
• Eliminates outdated legacy services and
other former Priority One services
E-rate Modernization 2014 /15 California Department of Education
40
Eligible Services – Category One
TOM TORLAKSON
State Superintendent
of Public Instruction
Eligible Data transmission services and
Internet Access
• ATM
• Frame Relay
• Broadband over Power
lines
• ISDN
• Cable Modem
• OC-1, OC-3, OC-12, OC-n
• DSL
• Satellite Services
• DS-1, DS-2, DS-3
• SMDS
• Ethernet
• T-1, T-3, Fractional T-1
• Fiber (Lit and Dark)
• Wireless Services (e.g.
microwave)
• Telephone Dialup
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41
Eligible Services –
PHASE DOWN
TOM TORLAKSON
State Superintendent
of Public Instruction
Eligible Voice Services Subject to Phase
Down
• Centrex
• Satellite telephone service
• Circuit capacity dedicated to • Shared telephone service
providing voice service
• Interconnected VoIP
• POTS
• Local, long distance 800
service
• Radio Loop
• Wireless telephone service
including cellular voice
(excluded data and text
messaging)
• These services are subject to a 20% funding reduction beginning in
funding year 2015
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42
Eligible Services –
FLASH CUT
TOM TORLAKSON
State Superintendent
of Public Instruction
Services no longer eligible
• Paging
• Custom calling services
• Directory assistance
charges
• Direct inward dialing
(DID)
• Text messaging
• 900/976 call blocking
• Inside wire maintenance
• Web hosting
• E-mail
• Voice mail
E-rate Modernization 2014 /15 California Department of Education
43
Eligible Services
Data Plans – Air Cards – Mobile Hotspots
TOM TORLAKSON
State Superintendent
of Public Instruction
• Support is limited to those cases where individual
data plans are the most cost-effective option for
providing internal broadband access for portable
mobile devices
• Funding is considered not cost-effective when users
can already access the Internet through internal
wireless broadband networks
• Exceptions may include library bookmobiles or
where there is a very small number of students or
patrons
E-rate Modernization 2014 /15 California Department of Education
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Eligible Services
Example – E-rate as of 2014/15
TOM TORLAKSON
State Superintendent
of Public Instruction
E-rate Modernization 2014 /15 California Department of Education
45
Eligible Services
Example – E-rate beginning 2015/16
TOM TORLAKSON
State Superintendent
of Public Instruction
E-Rate Modernization 2014/15 California Department of Education
46
Eligible Services – Category 2
Eligible Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
• Access
points/antennas
• UPS
• Cabling
• Wireless LAN Controllers
• Caching servers
• Firewalls
• Network switches
• Routers
• Racks
• Improvements, upgrades
and software necessary to
support eligible broadband
internal connections
components
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47
Eligible Services – Category 2
No longer Eligible for Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
• Circuit
Cards/components
• Storage Devices
• Interfaces
• Telephone Components
• Gateways
• Video Components
• Software
• Servers
• Voice over IP
components
• Video over IP
components
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Eligible Services – Category 2
TOM TORLAKSON
State Superintendent
of Public Instruction
Managed Internal Broadband Services (WiFi services)
• Subject to the Category 2 budget
• Services provided by a third party
– Operation
– Management
– And/or monitoring of eligible broadband internal
connection components
• The third party may manage the school or library’s
equipment or provide the equipment as part of a
lease
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Eligible Services – Category 2
Managed Internal Broadband Services
TOM TORLAKSON
State Superintendent
of Public Instruction
• Eligibility Limitations
– Supports only the equipment listed as eligible as
a broadband internal connections component
– Upfront charges as part of the contract are
eligible
• Any ineligible internal connections
components (e.g. content filtering) must be
cost allocated out
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Eligible Services – Category 2
Basic Maintenance of Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
 Subject to the Category 2 budget
 Support for basic maintenance of eligible internal
connections such as
– Repair and upkeep of hardware
– Wire and cable maintenance
– Basic tech support
– Configuration changes
 Support for BMIC is limited to actual work
performed under the contract
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Eligible Services – Category 2
Basic Maintenance of Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
• Basic maintenance does not include
– Services that maintain ineligible equipment
– Upfront estimates that cover the full cost of every
piece of eligible equipment
– Services that enhance the utility of equipment
– Network management services, including 24-hr
network monitoring
– On-site technical support
– Unbundled warranties
• Note: Many of the services ineligible under BMIC
are eligible as Managed Internal Broadband
Services
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Eligible Services
Miscellaneous
TOM TORLAKSON
State Superintendent
of Public Instruction
• Eligible Charges
– Taxes, surcharges and other similar reasonable
charges
– Lease fees to rent or lease eligible components
– Shipping charges
– Training
– Installation and configuration
• Installation may be provided by a third party
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53
Eligible Services
Leased Lit and Dark Fiber
TOM TORLAKSON
State Superintendent
of Public Instruction
• There were no changes in the Modernization Order
impacting the eligibility of lit and dark fiber
• An Indefeasible Rights of Use (IRU) is treated as a
lease and may be subject to amortization rules
• Rerouting fiber is considered a special construction
charge and not maintenance
• Warehousing of unlit dark fiber is not eligible
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54
Eligible Services
Leased Lit and Dark Fiber Eligibility Matrix
TOM TORLAKSON
State Superintendent
of Public Instruction
Description
Leased Lit Fiber
Leased Dark Fiber
Not Eligible
Not Eligible
Eligible
Eligible
Eligible
Not eligible
Eligible
Eligible
4
Installation within property from bldg to
bldg
Installation on property from bldg to
property line
Special construction charges for
installation from property line to
service provider
Monthly service/lease charges
5
Maintenance charges from bldg to
service provider
Eligible
Eligible
6
Service provider provision of modulating
electronics
Eligible
Not Eligible
1
2
3
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55
Eligible Services
The Bundling Order – DA 14-712
TOM TORLAKSON
State Superintendent
of Public Instruction
• On May 23, 2014, the FCC issued the Bundling
Order effective for FY 2015 and forward
• Applicants must cost allocate non-ancillary
components including, but not limited to, end user
devices such as:
• Telephone handsets
• Tablets
• VoIP handsets
• Netbooks
• Computers
• Laptops
• Cell phones
E-rate Modernization 2014 /15 California Department of Education
56
TOM TORLAKSON
State Superintendent
of Public Instruction
Category 2 Budgets
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57
Category 2 Budgets
Overview
TOM TORLAKSON
State Superintendent
of Public Instruction
• What are Category 2 budgets?
• Which entities have budgets?
• How much is my budget?
• Can my budget change from year to year?
• What period of time does my budget cover?
• Two-in-Five VS Five Year Budget
• How are services counted against my budget?
• How do I allocate costs for shared services?
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Category 2 Budgets
What are Category 2 budgets?
TOM TORLAKSON
State Superintendent
of Public Instruction
• In short – it is how much money you have to spend
at each site over a five year period for Category 2
products/services
– Products/services ordered in excess of an
entity’s Category 2 budget will not receive E-rate
discounts.
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59
Category 2 Budgets
Which entities have Category 2 budgets?
TOM TORLAKSON
State Superintendent
of Public Instruction
• Individual school sites and library outlets or
branches have a budget.
– School districts or library systems may not
average their costs across multiple school or
library budgets.
• Non-instructional facilities (NIFs) do not have a
budget.
– If a NIF is essential for the effective transport of
information to or within an school or library, the
applicant must allocate the NIF costs to the
budget of one or more of the entities benefiting
from the service.
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60
Category 2 Budgets
How much is my budget?
TOM TORLAKSON
State Superintendent
of Public Instruction
• The pre-discount budget for a school is calculated
by multiplying the total number of students at the
school by $150, with a minimum of $9,200 if the
school has fewer than 62 students.
• The pre-discount budget for a library is calculated
by multiplying the total area in square feet –
including all areas enclosed by the outer walls of the
library and occupied by the library – by $2.30, with a
minimum of $9,200 if the library is less than 4,000
square feet.
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61
Category 2 Budgets
Category 2 Budgets - Schools
TOM TORLAKSON
• Pre-Discount amount of $150/student
State Superintendent
of Public Instruction
OR
• Minimum of $9,200 per school
*$9,200 minimum per site would be for any site that has 62 students
or less
Highest discount amount would be $127.50 /student for 85% discount
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62
Category 2 Budgets
Category 2 Budgets - Libraries
TOM TORLAKSON
State Superintendent
of Public Instruction
• Library Category 2 funds limited to pre-discount
$2.30 per square foot
OR
• Minimum of $9,200 per site
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63
Category 2 Budgets
Can my budget change from year to year?
TOM TORLAKSON
State Superintendent
of Public Instruction
• Your pre-discount budget in FY2016 is decreased
based on the commitments featuring your entity
(e.g., on your application and on any other
application with your entity number, such as on a
consortium application) starting with FY2015
commitments.
– It could go up in FY2016 if your student count or
square footage increases, or down if your
student count decreases.
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64
Category 2 Budgets
TOM TORLAKSON
State Superintendent
of Public Instruction
Can my budget change from year to year,
(cont’d)?
• For existing schools: If your student count
decreases in subsequent funding years, you do not
need to repay the fund for money disbursed in
excess of the five-year budget in years when your
student count was higher.
• For new schools: If you overestimate your student
count and exceed the five year pre-discount budget
based on your actual student count, you must return
any funds in excess of the allowable budget to
USAC.
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65
Category 2 Budgets
What period of time does my budget cover?
TOM TORLAKSON
State Superintendent
of Public Instruction
• The pre-discount budget calculation is for a fiveyear period, starting with the first funding year in
which you receive Category 2 support.
– You can apportion your pre-discount budget in a
manner that best meets your needs.
• You could spend all of it in FY2015,
• spend 1/5 each year,
• any other combination up to your total.
E-rate Modernization 2014 /15 California Department of Education
66
Category 2 Budgets
Two-In-Five VS Five Year Budget
TOM TORLAKSON
State Superintendent
of Public Instruction
IF you do
not receive
C2 support
in FY15 or
FY16
E-rate Modernization 2014 /15 California Department of Education
AND IF the
FCC does
not act
THEN the
Two-In-Five
rule will
apply on C2
in FY17
67
Category 2 Budgets
TOM TORLAKSON
State Superintendent
of Public Instruction
How are services counted against by
budget?
• Any Category 2 funding commitments that include
your entity as a recipient of service in FY2015 count
against your pre-discount budget for that entity.
• If funding is remaining on a funding request, you
can file an FCC Form 500 to return the funding to
USAC.
• If entities are sharing the service, we will need
specific information so that we know how to
apply the returned funds to specific entities.
E-rate Modernization 2014 /15 California Department of Education
68
Category 2 Budgets
Example
TOM TORLAKSON
State Superintendent
of Public Instruction
Name of
Eligible
School
Total # of
Students
Per
Student
Cap
Blue River
588
$150.00
$88,200.00
80%
$70,560.00
Sunny Knoll
667
$150.00
$100,050.00
80%
$80,040.00
Burnt Acres
464
$150.00
$69,600.00
80%
$55,680.00
Green Middle
893
$150.00
$133,950.00
80%
$107,160.00
Riverbend
594
$150.00
$89,100.00
80%
$71,280.00
Canyon Road
546
$150.00
$81,900.00
80%
$65,520.00
Sunset Hills
493
$150.00
$73,950.00
80%
$59,160.00
District Office
0
$150.00
$0.00
80%
$0.00
TOTAL
4,245
E-rate Modernization 2014 /15 California Department of Education
Pre-Discount
E-rate
Category 2
Budget
Discount % E-rate Funding
Available
$636,750.00
$509,400.00
69
Category 2 Budgets
TOM TORLAKSON
State Superintendent
of Public Instruction
How do I allocate costs for shared
services?
• On the FCC Form 471, you indicate how funding
should be allocated among entities sharing services.
• Your allocation can be:
– Straight-line (all entities share the cost equally)
– Proportional (based on student count/square
footage of each entity)
– Specific (you specify each entity’s share)
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70
Category 2 Budgets
Strategy
TOM TORLAKSON
State Superintendent
of Public Instruction
• STRATEGY TO KEEP IN MIND:
– Part-time students, and/or students attending
multiple schools, should be counted when
establishing your Category 2 budget.
– You may have a different enrollment for your
E-rate Discount calculations than you will have
for Category 2 budget calculations.
– DOCUMENT – your “part-time” student
enrollment should resemble your “secondary”
enrollments in CalPads.
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71
TOM TORLAKSON
State Superintendent
of Public Instruction
Form 470 and the Bidding
Process
E-rate Modernization 2014 /15 California Department of Education
72
Form 470 and the Bidding Process
The Application Process
TOM TORLAKSON
State Superintendent
of Public Instruction
Form 470
Competitive
Bidding
Vendor
Selection
Form 471
• Indicates services/categories of service
• Must be posted minimum of 28 days
• Ensure it is fair and open
• Document communications related to bidding process
• AFTER minimum of 28 days since posting Form 470/RFP
• Use Evaluation Matrix with price as the heaviest weighted factor
• Work with selected service provides to build NEW online Item 21s
• File BEFORE the deadline, as yet announced
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73
Form 470 and the Bidding Process
Summary and overview of the form
TOM TORLAKSON
State Superintendent
of Public Instruction
WHO is the
applicant?
WHAT are the
services you are
applying for?
WHEN will you
submit your
Form 470
and/or RFP?
WHY must you
submit the Form
470?
HOW will you
use the Form
470 to describe
your needs?
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74
Form 470 and the Bidding Process
Summary and overview of the form
TOM TORLAKSON
State Superintendent
of Public Instruction
• Indicates the services and categories of service
which entities are seeking.
• Must be posted for at least 28 days.
• Indicates if they are planning/have issued RFP or
other documents regarding the procurement.
• Indicates any special requirements and/or
disqualification factors.
• Indicates who will be receiving the services.
• Two new exemptions for FCC Form 470 filing are in
effect starting in FY 2015.
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75
Form 470 – How Frequently must I
Submit a Form 470?
TOM TORLAKSON
Must I issue a Form 470 every year?
State Superintendent
of Public Instruction
• Applicants must file a new Form 470 each
funding year for requests for
– tariffed
– month-to-month services
– new contractual services.
• Existing services that were previously bid (Form
470) and resulted in a multi-year contract or
contract with voluntary extensions may not need
a new Form 470
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76
Form 470 and the Bidding Process
Purpose of Form
TOM TORLAKSON
State Superintendent
of Public Instruction
1. Begins “Competitive Bidding” process
2. Identify and describe the:
a) categories of services (e.g., Category One,
Telecommunications, etc) and function of
services you are seeking.
b) Describe scope of your needs (e.g., a single
school building, library system, state network,
etc.)
c) Notify potential bidders (service providers) of
types and quantities of services you need for
upcoming year.
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77
Form 470 and the Bidding Process
TOM TORLAKSON
State Superintendent
of Public Instruction
Where do I find the form?
• Download the form:
– E-rate Forms
– *Tips:*
• Determine what new services you will
need to add next year
• Determine which contracts expire on or
before 6/30/2016.
– So that….you will know what services you are
seeking to include on Form 470.
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78
Form 470 and the Bidding Process
Instructional Facilities
TOM TORLAKSON
State Superintendent
of Public Instruction
• USAC assigns a unique identifying number
to each eligible entity that participates in the
Schools and Libraries Program.
– Individual school
– Library outlet/branch
– Bookmobile
• http://www.usac.org/sl/applicants/beforey
oubegin/entity-number.aspx
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79
Form 470 and the Bidding Process
Non-Instructional Facility (NIF)
TOM TORLAKSON
State Superintendent
of Public Instruction
SCHOOLS:
LIBRARIES:
• Administrative
buildings
• Administrative
buildings
• School bus barns
and garages
• Cafeteria offices
• Facilities
associated with
athletic activities
• Bookmobile garages
• Interlibrary loan
facilities
• Library technology
centers
• See http://www.usac.org/sl/applicants/beforeyoubegin/entitynumber.aspx for more in-depth direction on Entities
E-Rate Modernization 2014/15 California Department of Education
80
Form 470 and the Bidding Process
Submit and Certify
TOM TORLAKSON
State Superintendent
of Public Instruction
1. Once Form 470 is submitted, you must:
a) Certify online using your assigned PIN, or
b) Print certification page, sign and mail this
form ASAP-- “certified mail”
2. Print Form 470 for your files, and make
sure you know what the Allowable Contract
Date (ACD) actually is.
• ACD is also displayed on Receipt
Acknowledgement Letter (RAL)
NOTE: do not award contract before ACD.
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81
Form 470 and the Bidding Process
Allowable Contract Date (ACD)
TOM TORLAKSON
State Superintendent
of Public Instruction
• ACD: THE date 28 days after the Form 470 is
posted to the USAC website
– Contracts with Service Providers cannot be
signed until on or after the ACD.
– If an RFP is issued in conjunction with the
Form 470, whichever document (RFP or
Form 470) is posted last, determines the
actual ACD.
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82
Form 470 and the Bidding Process
Competitive Bidding
TOM TORLAKSON
State Superintendent
of Public Instruction
• ALL SERVICES, including month-to-month, tariffed, and
those under expiring and new contracts must be competitively
bid to receive E-rate funding – NO EXCEPTIONS
• MUST follow ALL State, Local & E-rate bidding rules!
• Become familiar with YOUR procurement policies
– Business office/Procurement department
– Legal counsel
– Read your board policies on bids and contracts
(the E-rate auditors will!)
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83
Form 470 and the Bidding Process
FCC Bidding Requirements
TOM TORLAKSON
State Superintendent
of Public Instruction
• All processes must be fair and open
• Applicant must post a Form 470 describing services sought –
an RFP is not required, but when used must be indicated on
Form 470
• A minimum 28-day bidding window is required; longer if there
is a change in the scope of the procurement
• Applicant cannot list a trade name for goods or services
without allowing for equivalent
• Disqualification factors must be listed on Form 470 or RFP
• The price of E-rate eligible goods and services must be given
the most weight in any award
• Contracts must be signed and executed before filing of the
Form 471
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84
Form 470 and the Bidding Process
CA State Laws versus FCC Rules
TOM TORLAKSON
State Superintendent
of Public Instruction
In general, CA state laws are more restrictive than
FCC rules, although exceptions occur when FCC
rules prevail
State Rule
FCC Rule
Procurements under bid threshold
($84,100) don’t require formal competitive
bidding
All procurements require competitive
bidding
May use master contracts or piggyback
contracts without bidding
All procurements require competitive
bidding
May sole source or bid to District standard
in certain procurements
Must ALWAYS allow for “equal” goods and
services
Advertise bids in newspaper 2 times in 2
weeks (i.e. 14-day bidding window)
Minimum 28-day day bidding window,
possibly more with addenda with
E-rate Procurement Session 1 Compliance
85
E-rate Modernization 2014 /15 California Department of Educationsignificant scope change
85
Form 470 and the Bidding Process
Bid Evalution Acronyms and Terms
TOM TORLAKSON
State Superintendent
of Public Instruction
• Bid – A service provider response to your
Form 470 and/or RFP that contains services
and prices and any other information you
have requested
• Price as the primary factor – In evaluating
bids, the price of E-rate eligible products
and services must be the most heavilyweighted factor in your evaluation of bids
E-rate Modernization 2014 /15 California Department of Education
86
Form 470 and the Bidding Process
FCC Form 470 and RFP Issues
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicants must ensure that they post for the correct
category of service.
• Sufficient detail in FCC Form 470 to enable service
providers to formulate bids.
– Cannot provide generic descriptions (e.g., all
eligible telecom services, Digital Transmission
Services).
– Cannot provide laundry lists of products and
services.
– *Note* RFPs (in addition to Form 470) are not required by
the E-rate program but may be required by your local
procurement policies. Discussed more in “Competitive
Bidding” section.
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87
Form 470 and the Bidding Process
Imposing Restrictions
TOM TORLAKSON
State Superintendent
of Public Instruction
• Cannot list specific make and model of services
sought without also allowing equivalent products
and/or services to be bid.
– “XYZ manufacturer's router model 345J or
equivalent”
• Applicants may set some eligible service
requirements.
– Applicants may require service providers to
provide services that are compatible with one
kind of system over another (e.g. Brand X
compatible).
• Bidder disqualification criteria must be spelled out in
FCC Form 470 and/or RFP and be available to all.
E-rate Modernization 2014 /15 California Department of Education
88
TOM TORLAKSON
State Superintendent
of Public Instruction
Form 470 and the Bidding Process
State Master
Contract
Beginner’s Presentation I 2013 California Department of Education
89
Form 470 and the Bidding Process
State Master Contracts (SMC)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Competitively bid and put in place by a state
government for use by multiple entities in that state.
• Single winner: Single vendor wins the bid.
• Multiple winners: State awards contract to
several bidders.
• Multiple Award Schedule (MAS): State awards
contract for same goods and services to multiple
vendors that can serve the same population.
•
Multiple winners always require vendor selection
justification and applicants must conduct a mini-bid to
award contract.
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90
Form 470 and the Bidding Process
State Master Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
• Form 470 number 335470001069064
posted by State of CA
– Covers local and long distance phone,
VoIP and some digital transmission
services
– Contracts were awarded on November
15, 2013
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91
Form 470 and the Bidding Process
State Master Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
 Six subcategories were awarded
 Multiple awardees in some subcategories
–
–
–
–
–
–
AT&T
CentryLink
Integra
JIVE
NWN
Verizon
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92
Form 470 and the Bidding Process
State Master Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
 Subcategory 1.1 - Dedicated Transport Contractors: AT&T,
Verizon
 Subcategory 1.2 - Multiprotocol Label Switching (MPLS),
Virtual Private Networking (VPN) and Converged Voice over
Internet Protocol (VoIP) Telephony Contractors: AT&T,
Integra, Jive, NWN, Verizon
 Subcategory 1.3 - Standalone VoIP Telephony Contractors:
AT&T, Integra, Jive, Verizon
 Subcategory 1.4 - Long Distance Calling Contractors: AT&T,
CenturyLink
 Subcategory 1.5 - Toll Free Voice Calling Contractors:
AT&T, CenturyLink, Verizon
 Subcategory 1.6 - Legacy Telecommunications Contractor:
AT&T
E-rate Modernization 2014 /15 California Department of Education
93
Form 470 and the Bidding Process
State Master Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
 Applicant can use State’s Form 470 or
post their own.
 Due to multiple awardees
 Applicant MUST conduct a mini-bid
process
 Compare each service provider from same
subcategory to determine most cost
effective solution
 Document mini-bid process prior to signing
Authorization To Order (ATO)
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94
Form 470 and the Bidding Process
State Master Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
 Calnet 3 and VoIP
 If participating in the Calnet 3 contract for
VoIP services you are required to have at
least 1 MPLS line at each site that is
receiving VoIP services.
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95
Form 470 and the Bidding Process
Choosing a Service Provider
TOM TORLAKSON
State Superintendent
of Public Instruction
• After you close the competitive bidding
process for your services (on or after the
ACD)
1.
2.
3.
4.
You can evaluate the bids received
You can choose your service providers
You can sign a contract
Get Board approval if Board approval is
required
5. You can post a Form 471
E-rate Modernization 2014 /15 California Department of Education
96
Form 470 and the Bidding Process
Evaluation Criteria
TOM TORLAKSON
State Superintendent
of Public Instruction
• Selecting the winning bidder
– Price of the ELIGIBLE goods and services must
be the primary factor in the bid evaluation.
– Other factors, including other price factors, can
be considered as well; but they cannot be
weighted equally or higher than cost of the
eligible goods and services.
– See Construct An Evaluation for weighting
samples.
E-rate Modernization 2014 /15 California Department of Education
97
Form 470 and the Bidding Process
Sample Bid Evaluation Matrix
TOM TORLAKSON
State Superintendent
of Public Instruction
Factor
Points
Available
30
Vendor
1
Vendor
2
Vendor
3
15
30
25
20
20
0
20
25
20
15
25
15
0
15
15
5
5
3
2
Local or in state vendor
5
5
5
5
Total
100
65
68
92
Price of the ELIGIBLE
goods and services
Prior experience w/
vendor
Prices for ineligible
services, products &
Fees
Flexible Invoicing: 472 or
474
Environmental objectives
E-Rate Modernization 2014/15 California Department of Education
98
Form 470 and the Bidding Process
Reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• DO ensure a fair and open competitive bidding
process. All service providers must be treated
equally and cannot be given biased or privileged
knowledge of the bid.
• DO select the most cost-effective service provider,
with price as the primary factor.
• DO keep ALL records relating to the bid evaluation
process (correspondence with potential vendors,
winning and losing bids, worksheets, evaluation
criteria, contract, etc.). Note in a memo if one (or
no) bids are received.
E-rate Modernization 2014 /15 California Department of Education
99
Form 470 and the Bidding Process
Reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• DO remember that contracts must be signed and
dated by the applicant/Board and service provider
before filing the Form 471.
• DON’T sign a contract until after the Form 470 has
been posted for a minimum of 28 days.
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100
Form 470 – Roadmap to Success
TOM TORLAKSON
State Superintendent
of Public Instruction
1. Submit your Form 470 early (Form 470
filing Deadline will be determined once
Form 471 filing deadline is announced):
a) Do submit your Form 470 sometime
between now & January 1.
b) Do not wait until last minute to post your
Form 470!
2. Allow enough time to accomplish:
a) your competitive bidding;
b) evaluate and compare bids & bidders;
c) review any potential contracts you are
planning to sign; and
a) get all resulting contracts signed.
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101
Form 470 is Submitted – Now What?
Receipt Notification Letter (RNL)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Issued by USAC, sent to applicant to
summarize information entered on YOUR Form
470.
• Review RNL that SLD sends you; it is
• Your GOLDEN Opportunity is to review RNL
to review what you entered on your Form 470
application and correct minor errors
• Sample RNL http://www.usac.org/_res/documents/sl/pdf/samples/470R
NL.pdf
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102
TOM TORLAKSON
State Superintendent
of Public Instruction
Online Form 470
Demonstration
E-rate Modernization 2014 /15 California Department of Education
103
TOM TORLAKSON
State Superintendent
of Public Instruction
Program Compliance
E-rate Modernization 2014 /15 California Department of Education
104
Program Compliance
Form 470
TOM TORLAKSON
State Superintendent
of Public Instruction
• Must be a fair and open process.
• Avoid conflicts of interest.
– Applicant consultant  Service Provider
– Applicant  Service Provider
• Open competition and bid evaluation.
• Follow all rules – FCC and state/local.
• Read the FCC Form 470/RFP responses and
contract fine print.
• 6th Report and Order provides further clarifications
and examples of rule violations.
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105
Program Compliance
Form 470
TOM TORLAKSON
State Superintendent
of Public Instruction
• Only applicants can:
– Determine the types of service you will seek on
an FCC Form 470.
– Prepare and fill out the FCC Form 470.
– Sign, certify and/or submit FCC Form 470.
– Negotiate with prospective bidders.
– Run the competitive bidding process.
E-rate Modernization 2014 /15 California Department of Education
106
Program Compliance
Form 470
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicants Cannot:
– Have a relationship with service providers that would
unfairly influence the outcome of the competition.
– Furnish service providers with inside competitive
information.
– Have ownership interest in a service provider’s
company competing for services.
– Violate applicant’s own ethical regulations policy.
– Fail to describe the desired products and services
with sufficient specificity to enable interested parties
to bid.
– Receive gifts or donations from service providers that
violate FCC rules or seek to circumvent FCC rules.
E-rate Modernization 2014 /15 California Department of Education
107
Program Compliance
Form 470
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicants and Service Providers can:
– Have pre-bidding discussions.
• Discuss new product offerings.
• Teach applicants about new technologies.
• Present product demonstrations.
– Provide or receive de minimis items.
• Modest refreshments, not offered as a part of a
meal.
• Items with little intrinsic value such as certificates
and plaques.
E-rate Modernization 2014 /15 California Department of Education
108
Program Compliance
Form 470
TOM TORLAKSON
State Superintendent
of Public Instruction
• Request for Proposal
– FCC rules refer to RFPs generically but they may
have a variety of names (Request for Quotes, Scope
of Work, Summary of Projects, Instructions to
Bidders, etc).
– FCC rules do not require RFPs but state and local
procurement rules may.
– Must be available to bidders for at least 28 days.
• Applicants must count 28 calendar days from whichever
(FCC Form 470 or RFP) was posted or available last.
– Example: RFP posted on December 1, FCC Form 470
posted on December 15; December 15 starts the 28-day
count
E-rate Modernization 2014 /15 California Department of Education
109
Program Compliance
Competitive Bidding
TOM TORLAKSON
State Superintendent
of Public Instruction
• You must ensure that the competitive bidding
process is open and fair
– You must keep all incoming bids and correspondence
with bidders
– Respond to ALL vendors. If you choose not to you
must have a good reason (i.e. Spam) and document it
• All potential bidders have access to the
information from your Form 470 and RFP (if
required), and they can respond to your requests
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110
Program Compliance
Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicants must have a signed contract or other
legally binding agreement in place prior to
submitting their FCC Forms 471 to USAC.
• Signed contracts constitute the best evidence that a
legally binding agreement exists.
• A verbal offer and/or acceptance will not be
considered evidence of the existence of a legally
binding agreement.
• Tariffed or Month-to-Month service purchased under
contract is contracted service.
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111
Program Compliance
Contracts, cont’d
TOM TORLAKSON
State Superintendent
of Public Instruction
• Purchase orders must be considered a contract or
legally binding agreement in the state in which you
reside.
• Voluntary contract extensions are allowable only
when the option is stated in the original provisions of
the contract.
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112
Program Compliance
State Master Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
• A state master contract (SMC) is competitively bid
and put in place by a state government for use by
multiple entities in that state.
• Single winner: Single vendor wins the bid.
• Multiple winners: State awards contract to several
bidders.
• Multiple Award Schedule (MAS): State awards
contract for same goods and services to multiple
vendors that can serve the same population.
• Multiple winners always require vendor selection
justification and applicants must conduct a minibid to award contract.
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113
Program Compliance
Bid Evaluation
TOM TORLAKSON
State Superintendent
of Public Instruction
• Retain all vendor selection documentation for at
least ten years from the last date to receive service.
– Winning and losing bids, correspondences,
memos, bid evaluation documents, etc.
• Price of the eligible goods and services must be the
primary factor or the most heavily weighted overall
in any tier.
• Evaluation begins after 28-day waiting period.
• Service providers may not pay for applicant’s
termination charges incurred in breaking a contract.
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114
Program Compliance
Examples of rule violations
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicant has a relationship with a service
provider that would unfairly influence the
outcome of a competition or furnish the service
provider with “inside” information
• Someone other than the applicant or an
authorized representative of the applicant
prepares, signs, and submits the Form 470 and
certification
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115
Program Compliance
Examples of rule violations, cont’d
TOM TORLAKSON
State Superintendent
of Public Instruction
• A service provider representative is listed as the
Form 470 contact person and that service
provider is allowed to participate in the
competitive bidding process
• Form 470 does not describe the desired
products and services with sufficient specificity
to enable interested parties to submit bid
responses
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116
Program Compliance
Document Retention Timeframes
TOM TORLAKSON
State Superintendent
of Public Instruction
• 10 years from last date to receive service.
– FY 2015: this is at least June 30, 2026
• Any document from a prior year that supports
current year must be kept until 10 years from last
date to receive service as well.
– E.g., Contract from 2010 for recurring services,
used to support FY 2015 FRNs, must be kept
until at least June 30, 2026
• Documents may be retained in electronic format or
paper and must be disclosed upon request.
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117
Program Compliance
Documentation to retain
TOM TORLAKSON
State Superintendent
of Public Instruction
• Copies of bids.
• Contracts signed with service providers.
• Correspondence with service providers regarding
bidding process.
• Copies of bid matrix or decision process for
selecting winning bid.
• Proof of delivery of the service.
• Documentation of any service down time.
• Logs of maintenance performed.
• Documents that support cost allocation of funds for
eligible services.
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118
Form 470 – Other Tips
TOM TORLAKSON
State Superintendent
of Public Instruction
1. DON’T allow potential service provider(s) for your
school or library to fill out your Form 470.
2. DON’T wait until Form 471 filing window opens
before you post your Form 470.
3. Additional tips on SLD website. Look for FCC
Form 470: How to File Online @
4. DO certify your Form 470 before Form 471
Filing Deadline
http://www.usac.org/sl/about/outreach/online-learning.aspx
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119
TOM TORLAKSON
State Superintendent
of Public Instruction
Overview of Form 471
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120
Overview of Form 471
How to start preparing - Schools
TOM TORLAKSON
State Superintendent
of Public Instruction
• Gather key data in advance
– Entity information
• Billed Entity Number (BEN) for agency lead
• BEN for each recipient of services
– Sites (schools)
– Non-Instructional Facilities (NIFs)
• NCES Code for each school site
http://nces.ed.gov/globallocator/
• State LEA and School ID – i.e. CDS Codes
• Category 2 enrollment for each school site
• Districtwide NSLP data (enrollment and number
of students eligible)
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Overview of Form 471
How to start preparing - Libraries
TOM TORLAKSON
State Superintendent
of Public Instruction
• Gather key data in advance
– Entity information
• Billed Entity Number (BEN) for agency lead
• BEN for each recipient of services
– Branches (outlets, kiosks, bookmobiles, etc…)
– Administrative or Non-Instructional Facilities (NIFs)
• FSCS Code for each library site
http://nces.ed.gov/surveys/libraries/librarysearch/
• Category 2 square footage for each site
• Districtwide NSLP data (enrollment and number
of students eligible) for school district where
main branch resides
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Overview of the Form 471
How to prepare, cont’d
TOM TORLAKSON
State Superintendent
of Public Instruction
• Gather key data in advance, cont’d
– Urban/Rural status – use the online Lookup Tool once released by the SLD
– Network information for new survey – local
area network information and number
speed, and type of broadband lines
– Budget information to demonstrate
sufficient resources to effectively use
program funds
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Overview of the Form 471
Preparing a Funding Request
TOM TORLAKSON
State Superintendent
of Public Instruction
• For each Funding Request you need to know
– The establishing Form 470 – the form that started
the bidding process for each particular service
– Is this for contracted, tariffed or month-to-month
service
• If contracted – what is the Contract Award
Date (CAD) and the Contract Expiration Date
(CED) including any possible extensions and
how many are available
• Contract number, if there is one
• If it is a state master contract
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Overview of the Form 471
Preparing a Funding Request, cont’d
TOM TORLAKSON
State Superintendent
of Public Instruction
• …need to know, cont’d
– Monthly recurring E-rate eligible cost of service
• Cost allocate ineligible items (see slide 45)
– Non-recurring E-rate eligible cost of service
• Cost allocate ineligible items.
– Be prepared to show USAC how cost
calculations were performed
– Contract costs
– Sample month
– Averaging all months
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Overview of the Form 471
Category 2 Funding Request
TOM TORLAKSON
State Superintendent
of Public Instruction
• Reminders –
– Each site/library has an individual budget
based on total enrollment.
• Site enrollment should include “Part-time”
students
– Possible strategy: prepare your Form
470/RFP so as to get separate bids for
each site or require that awarded bidder
complete USAC’s Item 21 upload template
when it is available
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E-rate Modernization
NEW Form 471- Data collections
TOM TORLAKSON
State Superintendent
of Public Instruction
• Information that will have to be provided on
471
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E-rate Modernization
NEW Form 471 – data collections
TOM TORLAKSON
State Superintendent
of Public Instruction
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E-rate Modernization
NEW Form 471 – data collections
TOM TORLAKSON
State Superintendent
of Public Instruction
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TOM TORLAKSON
State Superintendent
of Public Instruction
California Teleconnect
Fund (CTF)
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CTF Staff Proposal
TOM TORLAKSON
State Superintendent
of Public Instruction
The Staff Proposal recommended modifications
to the CTF program rules. The recommended
changes that would have the most impact on
schools and libraries, include:
• Have voice/VOIP mirror E-rate
• Keep Schools at a 50% discount
• Moratorium on CTF application
processing.(Note: Issues for Schools and
Libraries if this occurs)
• Eliminate support entirely for nonprofit private
schools that have a less than a 40% free and
reduced lunch eligibility rate
ww.cpuc.ca.gov/NR/rdonlyres/D20DB8F97788D1CA4FE112E/0/R1301010CTFOIRStaffProposalMay2014.pdf
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E-rate Modernization
Who to Contact
TOM TORLAKSON
State Superintendent
of Public Instruction
• State Library: Jarrid Keller
(916) 653-4023 JarridKeller@library.ca.gov
• CDE: Doris Stephen
(916) 324-9943 E-RATE@cde.ca.gov
• K-12 HSN/Butte COE: Russ Selken
(530) 532-5678 rselken@bcoe.org
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