Webinar will start shortly
(This will be recorded)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Note: The Webinar will be in 2 phases:
– Phase 1, Information will be delivered by
presenters. Questions will be taken in the
second phase.
– NOTE: It is very important that you remain
on mute during this time period. Thanks!
– There will be a 3-5 minute pause.
– Phase 2, Questions or points of clarification
will be asked and responded to.
– Both phases will be recorded and available
later.
TOM TORLAKSON
State Superintendent
of Public Instruction
E-rate for California
CALNET 2 AND
CALNET 3 UPDATES
January 23, 2014
CALNET 2 AND CALNET 3 Updates 2014 California Department of Education
2
Webinar Assumption
TOM TORLAKSON
State Superintendent
of Public Instruction
• The following presentation is for those applicants
that used the State CALNET 2 contract last year.
– The guidance provided is based upon this
assumption
– If you have never used CALNET 2 in the past,
then continue using your existing process. But,
check in with us next fall.
Link Resources:
http://www.usac.org/_res/documents/sl/pdf/contracts/Scenario-b.pdf
http://www.usac.org/sl/applicants/step03/state-replacement-contracts.asp
http://www.usac.org/sl/applicants/step03/state-master-contracts.aspx
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
3
Agenda
TOM TORLAKSON
State Superintendent
of Public Instruction
1. The role of CA Dept of Ed and State
Library
2. CalNet 2 Expiration and Extension
3. Status of CalNet 3
4. Guidance for FY 2013 E-rate Funding
Requests
5. E-rate Mini Bid Requirements
6. Guidance for FY 2014 E-rate Funding
Requests
7. Q & A
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
4
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
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 is 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.
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
5
Key Terms
TOM TORLAKSON
State Superintendent
of Public Instruction
1. California Office of Technology Services
(“Otech”)
2. CALNET 2 and CALNET 3 contracts
3. Master Service Agreement (“MSA”)
4. Authorization to Order (“ATO”)
5. State Replacement Contract (“SRC”)
6. Contractor, Service Provider, Vendor
7. E-rate applicant
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
6
CALNET 2 Expiration
Hot off the press: CALNET 2 extended
through January 30, 2016
TOM TORLAKSON
State Superintendent
of Public Instruction
 Yesterday, the State finalized extension of
contract end date from January 29, 2014 to
January 30, 2016
 MSAs 1 and 2 AT&T services (landline
services and long distance)
 MSAs 3 and 4 Verizon services (VoIP)
 Purpose of extension is to facilitate transition
of services to CALNET 3
 Only applies to existing services, and NEW
services must be ordered off of CALNET 3
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
7
CALNET 2 Extension
How does this affect applicants for FY 2013
and 2014?
TOM TORLAKSON
State Superintendent
of Public Instruction
 To be determined, pending discussions with
the FCC
 FCC Waiver for contract extension may be
required to allow for continued filing under
CALNET 2 with the 2005 State Form 470
 Applicant may have option to remain on
CALNET 2 or transition to CALNET 3
 Additional guidance for both scenarios
coming in February
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
8
CALNET 3 Status
Award of Category 1 Voice and Data Services
TOM TORLAKSON
State Superintendent
of Public Instruction
 California Office of Technology Services (OTech)
posted a State Form 470 and contracts were
awarded November 15, 2013
 Six subcategories were awarded
 Multiple awardees in some subcategories
 Important information posted on State’s website
regarding services, pricing and awards
http://marketing.dts.ca.gov/calnet3/
 Not all pricing for all subcategories is currently
available on the State’s website, but is being
updated regularly
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
9
CALNET 3 Status
Subcategories and Awarded Contractors
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
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
10
CALNET 2 to CALNET 3
TOM TORLAKSON
State Superintendent
of Public Instruction
Services Transition (see Grid on next slide)
• Certain services under CALNET 2 are
transitioned to same provider (blue)
• Certain services under CALNET 2 are now
available from multiple providers (yellow)
• Not all services available under CALNET 2
have been awarded yet under CALNET 3
(white)
– The State has posted an additional form 470
that could add to the available services on the
state master contract for E-rate purposes.
However, this will be done outside the window,
and will not be available for the current E-rate
window.
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
11
CALNET 2
On
CALNET 2
State Form
CALNET 2 Services
470?
CALNET 3
On
On
CALNET 3 CALNET 3
CALNET 2 Request for State Form
CARRIER
Bid?
470?
CALNET 3 CARRIER
Subcategory
CALNET 2 MSA1
TOM TORLAKSON
State Superintendent
of Public Instruction
POTS/1 MB
YES
AT&T
YES
YES
AT&T
1.6
Centrex
YES
AT&T
YES
YES
AT&T
1.6
PBX/DID Trunks
YES
AT&T
YES
YES
AT&T
1.6
Voicemail
YES
AT&T
YES
YES
AT&T
1.6
ISDN BRI
YES
AT&T
YES
YES
AT&T
1.6
Frame Relay and ATM
YES
AT&T
YES
YES
AT&T
1.6
Local Calling Plan
YES
AT&T
YES
YES
AT&T
1.6
ISDN PRI and DID
YES
AT&T
YES
YES
AT&T,Verizon
1.1
T-1/DS-1
YES
AT&T
YES
YES
AT&T,Verizon
1.1
T-3/DS-3
YES
AT&T
YES
YES
AT&T, Verizon
1.1
Internet
NO
AT&T
NO
NO
In Process IFB-B
in process
Ethernet Metropolitan Area Network
NO
AT&T
NO
NO
In Process IFB-B
in process
Synchronous Optical Network (SONET)
NO
AT&T
NO
NO
In Process IFB-B
in process
YES
AT&T
YES
YES
AT&T, CenturyLink
1.4
YES
AT&T, Integra, Jive,
Verizon and NWN for
converged VoIP only
1.2 and 1.3
CALNET 2 MSA2
Long Distance
CALNET 2 MSA3
Hosted IP Telephony (VoIP)
NO
Verizon
YES
CALNET 2 to CALNET 3 Transition
Ordering Services under CALNET 3
TOM TORLAKSON
State Superintendent
of Public Instruction
• Identify services received under CALNET 2
– Review CALNET 2 ATOs and bills for service
– Make a list of services and ID what can be
moved to CALNET 3 now
• Visit State’s website for service descriptions,
pricing and ATOs
http://marketing.dts.ca.gov/calnet3/
• ID services that require an E-rate mini-bid and
conduct a mini-bid if necessary (discussed later)
• Execute ATO(s) for service
– An ATO must be signed by the applicant,
service provider, and the State before it is valid
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
13
CALNET 3 E-rate FY 2013 Implications
State Replacement Contract (“SRC”)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicants filed funding requests for services
starting January 30, 2014 referencing the State’s
Form 470 # 335470001069064 and the SRC
Dummy SPIN # 143999999
• How do you know if this applies to you? Review
Forms 471 filed for FY 2013
• Following slides show example SRC Form 471
Block 5 funding requests
– MSA 1 (local voice and data)
– MSA 2 (long distance)
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
14
Example #1 Block 5 FRN #2 Local
Voice and Data
CALNET 3 FRN services from January 30, 2014
through June 30, 2014
TOM TORLAKSON
State Superintendent
of Public Instruction
FRN: 2432418
10. Original FRN:
11. Category of Service: Telecommunications Service
12. 470 Application Number: 335470001069064
13. SPIN: 143999999
14. Service Provider Name: State Replacement Contract
15a. Non-Contracted tariffed/Month to Month Service:
15b. Contract Number: SRCCalNet 2
15c. Covered under State Master Contract: Y
15d. FRN from Previous Year:
16a. Billing Account Number:
16b. Multiple Billing Account Numbers?:
17. Allowable Contract Date: 01/07/2013
18. Contract Award Date: 01/30/2014
19. Service Start Date: 01/30/2014
20a. Service End Date:
20b. Contract Expiration Date: 06/30/2014
21. Attachment #: ButteCOE471Y16attcalnet3
22. Block 4 Worksheet No.: 1529460
23a. Monthly Charges: $7,622.20
23b. Ineligible monthly amt.: $.00
23c. Eligible monthly amt.: $7,622.20
23d. Number of months of service: 6
23e. Annual pre-discount amount for eligible recurring charges ( 23c x 23d): $45,733.20
23f. Annual non-recurring (one-time) charges: $.00
23g. Ineligible non-recurring amt.: $.00
23h. Annual pre-discount amount for eligible non-recurring charges ( 23f - 23g): $0.00
23i. Total program year pre-discount amount ( 23e + 23h): $45,733.20
23j. % discount (from Block 4): 82
23k. Funding Commitment Request ( 23i x 23j): $37,501.22
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
15
Example #1 Block 5 FRN #4 Long
Distance
CALNET 3 FRN services from January 30, 2014
through June 30, 2014
TOM TORLAKSON
State Superintendent
of Public Instruction
FRN: 2432422
10. Original FRN:
11. Category of Service: Telecommunications Service
12. 470 Application Number: 335470001069064
13. SPIN: 143999999
14. Service Provider Name: State Replacement Contract
15a. Non-Contracted tariffed/Month to Month Service:
15b. Contract Number: SRCCalNet 2
15c. Covered under State Master Contract: Y
15d. FRN from Previous Year:
16a. Billing Account Number:
16b. Multiple Billing Account Numbers?:
17. Allowable Contract Date: 01/07/2013
18. Contract Award Date: 01/30/2014
19. Service Start Date: 01/30/2014
20a. Service End Date:
20b. Contract Expiration Date: 06/30/2014
21. Attachment #: ButteCOE471Y16ldcalnet3
22. Block 4 Worksheet No.: 1529460
23a. Monthly Charges: $842.26
23b. Ineligible monthly amt.: $.00
23c. Eligible monthly amt.: $842.26
23d. Number of months of service: 6
23e. Annual pre-discount amount for eligible recurring charges ( 23c x 23d): $5,053.56
23f. Annual non-recurring (one-time) charges: $.00
23g. Ineligible non-recurring amt.: $.00
23h. Annual pre-discount amount for eligible non-recurring charges ( 23f - 23g): $0.00
23i. Total program year pre-discount amount ( 23e + 23h): $5,053.56
23j. % discount (from Block 4): 82
23k. Funding Commitment Request ( 23i x 23j): $4,143.92
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
16
E-rate FY 2013 Implications
Option 1: Continue on CALNET 2
TOM TORLAKSON
State Superintendent
of Public Instruction
• Further guidance forthcoming pending discussions
with FCC
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
17
E-rate FY 2013 Implications
Option 2: Transition to CALNET 3
TOM TORLAKSON
State Superintendent
of Public Instruction
• For SRC FY 2013 funding requests, an E-rate
compliant mini-bid is required for SOME services
in order to award an ATO under CALNET 3
– Services must have been listed under the
State’s Form 470 (see grid on following slide)
– Mini-bid is required for subcategories with more
than one possible provider
– For subcategory 1.6 Legacy
Telecommunications, only one provider and no
mini-bid is required
• Until ATOs for new services are signed, no
changes to pending 2013 funding requests can be
made, further guidance forthcoming
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
18
CALNET 2
On
CALNET 2
State Form
CALNET 2 Services
470?
CALNET 3
On
On
CALNET 3 CALNET 3
CALNET 2 Request for State Form
CARRIER
Bid?
470?
CALNET 3 CARRIER
Comment for FY 2013 for State Replacement
Contract ("SRC") FRNs using the dummy SPIN
starting after expiration of CalNet 2 January
Subcategory
30, 2014
CALNET 2 MSA1
POTS/1 MB
YES
AT&T
YES
YES
AT&T
1.6
If SRC SPIN was used no mini-bid is required
Centrex
TOM TORLAKSON
State SuperintendentPBX/DID Trunks
YES
AT&T
YES
YES
AT&T
1.6
If SRC SPIN was used no mini-bid is required
YES
AT&T
YES
YES
AT&T
1.6
If SRC SPIN was used no mini-bid is required
Voicemail
YES
AT&T
YES
YES
AT&T
1.6
If SRC SPIN was used no mini-bid is required
ISDN BRI
YES
AT&T
YES
YES
AT&T
1.6
If SRC SPIN was used no mini-bid is required
Frame Relay and ATM
YES
AT&T
YES
YES
AT&T
1.6
If SRC SPIN was used no mini-bid is required
Local Calling Plan
YES
AT&T
YES
YES
AT&T
1.6
If SRC SPIN was used no mini-bid is required
ISDN PRI and DID
YES
AT&T
YES
YES
AT&T,Verizon
1.1
If SRC SPIN was used, mini-bid IS REQUIRED
T-1/DS-1
YES
AT&T
YES
YES
AT&T,Verizon
1.1
If SRC SPIN was used, mini-bid IS REQUIRED
T-3/DS-3
YES
AT&T
YES
YES
AT&T, Verizon
1.1
If SRC SPIN was used, mini-bid IS REQUIRED
Internet
NO
AT&T
NO
NO
In Process IFB-B
in process
MUST do own Form 470
Ethernet Metropolitan Area Network
NO
AT&T
NO
NO
In Process IFB-B
in process
MUST do own Form 470
Synchronous Optical Network (SONET)
NO
AT&T
NO
NO
In Process IFB-B
in process
MUST do own Form 470
YES
AT&T
YES
YES
AT&T, CenturyLink
1.4
If SRC SPIN was used, mini-bid IS REQUIRED
YES
AT&T, Integra, Jive,
Verizon and NWN for
converged VoIP only
1.2 and 1.3
If SRC SPIN was used, mini-bid IS REQUIRED
of Public Instruction
CALNET 2 MSA2
Long Distance
CALNET 2 MSA3
Hosted IP Telephony (VoIP)
NO
Verizon
YES
Contracts
State Master Contracts
• Only applies to state agencies, state procurement
• Multiple winners always require vendor selection justification
• If multiple vendors can provide the services to you, then you
must conduct a mini-bid based on FCC rules.
– Do not need to file another Form 470
– But comply with all FCC Rules regarding vendor
selection (i.e., most cost effective, price must be
primary, cost-effectiveness)
• Contract Award Date = Date you decided to purchase off State
Contract. For CA = date of ATO execution
– Memorialize your decision to purchase off a State Contract
in an email to yourself or the file.
Program Compliance I 2010 Schools & Libraries Fall Applicant Trainings
20
E-rate Mini Bid Requirements
TOM TORLAKSON
State Superintendent
of Public Instruction
Multiple Contractors for Service
• If using the State Form 470 or own Form 470
allowing only bids from CALNET 3
contractors, a mini-bid is required:
– All contractors capable of providing service
in subcategory must be compared – NO
EXCEPTIONS
– Price of E-rate eligible services must be
given the highest possible weight in
evaluation process
– Download pricing from State’s website or
contact all contractors that can provide
service for quotes
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
21
E-rate Mini Bid Requirements
Sample Evaluation Matrix
TOM TORLAKSON
State Superintendent
of Public Instruction
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
22
E-rate Mini Bid Requirements
Documentation of Process
TOM TORLAKSON
State Superintendent
of Public Instruction
• Copy of evaluation matrix
• Copies of pricing schedules
• Copies of quotes and vendor correspondence
relating to mini-bid (if applicable)
• For subcategory 1.6 Legacy
Telecommunications, copy of ATR Bulletin 13-04
showing only one possible provider
http://www.dts.ca.gov/pdf/stnd/atrbulletins/2013/
ATR13-04.pdf
• Copies of executed ATOs
• Board minutes if contracts are taken for Board
approval
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
23
E-rate FY 2014 Implications
Converting to CALNET 3
TOM TORLAKSON
State Superintendent
of Public Instruction
• Same guidance for using State Form 470 and
mini-bid applies (see grid on following slide)
• ATOs MUST be executed prior to filing of Form
471 and March 26 deadline by all three parties
(applicant, provider, and state)
• For services NOT covered under the State Form
470, applicant must file its own Form 470
– Currently these services are NOT covered by
CALNET 3 at all and applicant will sign its own
contract for service
• Create a timeline NOW and start data gathering
for mini-bid process
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
24
CALNET 2
On
CALNET 2
State Form
CALNET 2 Services
470?
CALNET 3
On
On
CALNET 3 CALNET 3
CALNET 2 Request for State Form
CARRIER
Bid?
470?
CALNET 3 CARRIER
Subcategory
FY 2014 FRNs
CALNET 2 MSA1
POTS/1 MB
YES
AT&T
YES
YES
AT&T
1.6
Refer to State Form 470, no mini-bid is required
Centrex
TOM TORLAKSON
State Superintendent
PBX/DID Trunks
of Public Instruction
YES
AT&T
YES
YES
AT&T
1.6
Refer to State Form 470, no mini-bid is required
YES
AT&T
YES
YES
AT&T
1.6
Refer to State Form 470, no mini-bid is required
Voicemail
YES
AT&T
YES
YES
AT&T
1.6
Refer to State Form 470, no mini-bid is required
ISDN BRI
YES
AT&T
YES
YES
AT&T
1.6
Refer to State Form 470, no mini-bid is required
Frame Relay and ATM
YES
AT&T
YES
YES
AT&T
1.6
Refer to State Form 470, no mini-bid is required
Local Calling Plan
YES
AT&T
YES
YES
AT&T
1.6
Refer to State Form 470, no mini-bid is required
ISDN PRI and DID
YES
AT&T
YES
YES
AT&T,Verizon
1.1
Refer to State Form 470, mini-bid IS REQUIRED
T-1/DS-1
YES
AT&T
YES
YES
AT&T,Verizon
1.1
Refer to State Form 470, mini-bid IS REQUIRED
T-3/DS-3
YES
AT&T
YES
YES
AT&T, Verizon
1.1
Refer to State Form 470, mini-bid IS REQUIRED
Internet
NO
AT&T
NO
NO
In Process IFB-B
in process
MUST do own Form 470
Ethernet Metropolitan Area Network
NO
AT&T
NO
NO
In Process IFB-B
in process
MUST do own Form 470
Synchronous Optical Network (SONET)
NO
AT&T
NO
NO
In Process IFB-B
in process
MUST do own Form 470
YES
AT&T
YES
YES
AT&T, CenturyLink
1.4
Refer to State Form 470, mini-bid IS REQUIRED
CALNET 2 MSA2
Long Distance
CALNET 2 MSA3
Hosted IP Telephony (VoIP)
NO
Verizon
YES
YES
AT&T, Integra, Jive,
Verizon and NWN for
converged VoIP only 1.2 and 1.3
Refer to State Form 470, mini-bid IS REQUIRED
Important Deadlines
TOM TORLAKSON
State Superintendent
of Public Instruction
• If you are on CALNET 2 now (& most public
sector CA Education/Library applicants are),
then YOU MUST DECIDE for upcoming funding
year what you will do for all YOUR services on
CALNET 2 contract
• BY NO LATER THAN:
• ASAP!
• LAST DAY TO POST Form 470 (February
26, 2014)
• Form 471 application deadline is 8:59 PM
March 26, 2014
How to join the CDE E-rate listserv
TOM TORLAKSON
State Superintendent
of Public Instruction
• Join the E-rate e-mail list to receive
updates about E-rate and the CTF
programs.
Subscribe to the E-rate listserv by sending
a "blank" message to
• join-cde-e-rate@mlist.cde.ca.gov.
If you would like to unsubscribe from the
E-rate listserv, send a "blank" message to
unsubscribe-cde-e-rate@mlist.cde.ca.gov.
CALNET2 AND CALNET 3 UpdatesI 2013 California Department of Education
27
Join the CALNET 3 listserv
TOM TORLAKSON
State Superintendent
of Public Instruction
To Subscribe to the CTA_CALNET3 list
• http://www.dts.ca.gov/stnd/calnet-III/calnetIII.asp
• You may leave the list at any time by sending a
SIGNOFF CTA_CALNET3 command to:
LISTSERV@LISTSERV.STATE.CA.GOV, or by
sending a blank email
• to: CTA_CALNET3-signoff-request@LISTSERV.STATE.CA.GOV.
Future Form 470
for State Master Contract
TOM TORLAKSON
State Superintendent
of Public Instruction
• There is an additional form
470(s) for State Master Contract
posted AFTER the Window
closes
– This form 470/services may not be
available for the E-rate application
window of 2014-2015, but will be
available for the E-rate 2015-2016
E-rate application year
Conclusion
TOM TORLAKSON
State Superintendent
of Public Instruction
• CALNET 3 transition is not ready
• CALNET 2 has been extended through
January 30, 2016
• Further clarification for E-rate applicants is
forthcoming
• Action Items:
– CALNET 2 waiver with FCC – CDE/K12 HSN
– CALNET 3 pricing for mini-bid and process for
signing ATOs – applicant and service provider
when pricing is available
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
30
Who to Contact?
TOM TORLAKSON
State Superintendent
of Public Instruction
• State Library: Rushton Brandis,
(916) 653-5471
rushton.brandis@library.ca.gov
• CDE/E-rate: Doris Stephen,
916-324-9943
dstephen@cde.ca.gov
• K-12 HSN/Butte COE: Russ Selken
530-532-5678
rselken@bcoe.org
CALNET 2 AND CALNET 3 Updates 2013 California Department of Education
31