FY 2015 Roadshow
E-rate!
E-rate 2.0
FY 2015 E-rate
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Cap – How much funding will be available
Discount rate
Eligible services
Budget for Category 2 services
Direct Connect schools and/or libraries
Contracts
Forms
Form Review Team
Form Review Team
FY 2015 Funding Cap
• $2,400,000,000
• $1,500,000,000
• $3,900,000,000
Previous Cap
Additional funds
New Cap
• $1,000,000,000
• $4,900,000,000
Additional C2 Funding
Funding available for FY15
and FY16
The December 11th Order
•
COULD YOU TALK A LITTLE BIT MORE ABOUT THE ABILITY OF SCHOOLS TO BUILD THEIR OWN
NETWORKS? IT SEEMS IF IT'S NOT COST EFFECTIVE THEY CAN BUILD THEIR OWN, IS THAT RIGHT?
RIGHT. SO THE -- WHAT THE COMMISSION ADOPTED TODAY ESSENTIALLY MAKES A SELFCONSTRUCTED NETWORK, SELF-CONSTRUCTED CONNECTION AN ELIGIBLE E-RATE SERVICE, JUST
LIKE ASKING FOR A REGULAR CONNECTION FROM, SAY, THE LOCAL CARRIERS TODAY. IT IS SUBJECT
TO ALL OF THE CORE E-RATE PROGRAM SAFEGUARDS, KIND OF THE MOST FUNDAMENTAL ONE IS
IT HAS TO BE SHOWN TO BE THE MOST COST EFFECTIVE WAY TO MEET THE DESIRED SERVICE
LEVEL. AND I THINK THE BEST WAY TO ILLUSTRATE THAT IS AN E-RATE A SCHOOL OR WHATEVER
GROUP OF SCHOOLS IS APPLYING, YOU PUT OUT AN R.F.P. FOR BID. TO QUALIFY FOR THIS, YOU
WOULD HAVE TO SOLICIT BIDS FROM ALSO, SAY, THE LOCAL CARRIER F. THAT WAS AN OPTION.
YOU COULDN'T JUST SAY, I ONLY WANT TO DO THIS. AND SO WE'LL HAVE TO REALLY SEE WHAT
KIND OF PROPOSALS COME IN, AND WHO CHOOSES TO USE IT. BUT I THINK THE NATURE OF
SAFEGUARDS, YOU KNOW, THE EXPECTATION IS THAT BY FAR THE MOST STRAIGHTFORWARD
EXAMPLE WHERE THIS WOULD BE FOUND TO BE COST EFFECTIVE IS IF THERE IS NO EXISTING
NETWORK. AND SO THERE WAS A SURVEY THAT WAS DONE THAT'S IN THE RECORD THAT SAID 6%
OF SCHOOLS SEEKING HIGH SPEED BIDS GET NO BIDS. SO THAT WOULD BE AN EASY ONE WHERE
WE WANT TO HAVE A TOOL SO THAT THOSE SCHOOLS HAVE SOMETHING TO TURN TO. BUT
CERTAINLY OUR EXPECTATION IS THAT WILL BE A SMALL NUMBER OF SCHOOLS WILL NEED TO DO
THAT, BUT WE THINK IT'S A REALLY IMPORTANT TOOL FOR THOSE WHO DO.
The December 11th Order
•
WHAT THE CHAIRMAN WAS TALKING ABOUT, THE SITUATION WHERE ONE SCHOOL DISTRICT PAYS,
LIKE, 10 TIMES AS MUCH AS THE NEXT SCHOOL DISTRICT OVER S THAT PART OF THE RATIONAL?
RIGHT. SO I MEAN, I'LL JUST QUOTE OUR BOSS A MINUTE AGO. COMPETITION, COMPETITION,
COMPETITION. SO THAT SAME SURVEY THAT SAID 6%, THAT SAME SURVEY FOUND THAT 26% ONLY
GET ONE BID. AND I THINK E-RATE PAYS A HEALTHY SUBSIDY, BUT YOU AS THE LOCAL SCHOOL
DISTRICT STILL HAS TO PAY A PORTION OF IT. YOUR PORTION OF IT, IF IT'S AN OLD, MAYBE YOU'RE
PAYING $500 A MONTH FOR SLOW SPEED, IT'S THE BID THOUGH IS $10,000 A MONTH, $15,000 A
MONTH, WHICH IS WHAT WE SEE IN SOME CASES TODAY, THE IDEA OF HAVING OTHER TOOLS SO
THAT YOU AS THE SCHOOL BUYER CAN GET SOME COMPETITION GOING IN YOUR BIDDING. THAT'S
WHAT THE CHAIRMAN WAS REFERRING TO AROUND OPTIONS AND HOW THAT RELATES TO
AFFORDABILITY.
The December 11th Order
•
ONE FOLLOWUP. IF A SCHOOL DISTRICT HAS ACCESS TO A CONNECTION BUT IT'S SLOW, ARE THEY
ONLY -- DOES THAT MATTER? LIKE, COULD THEY SAY, YOU KNOW, WHAT WE HAVE IS TOO SLOW,
THEREFORE, WE WOULD LIKE TO BUILD OUR OWN?
THAT'S -- I MEAN, I THINK THAT IS WHAT THE DYNAMIC WILL LOOK LIKE. THE CHAIRMAN
REFERENCED MAYBE A THIRD -- IS THAT THE NUMBER HE USED, THAT'S THE NUMBER OF SCHOOLS
THAT THE DATA SHOW -- A LOT OF THEM HAVE INTERNET ACCESS BUT NOT AT THE 100 MEGS
TODAY SCALING TO A GIGABYTE WITHIN FIVE YEARS THAT WE'VE ADOPTED AS TARGETS. AND SO,
RIGHT, THE IDEA IS LOCAL SCHOOLS, THE SCHOOL BOARD SAYS, WE WANT TO UPGRADE OUR
NETWORK CONNECTIVITY. THE BID WE'LL PUT OUT WILL NOT BE FOR OUR OLD 10 MEGABIT
CONNECTION, IT WILL BE FOR 100 MEGS. IF THE EXISTING PROVIDERS CAN PROVIDE THAT AT A
GOOD PRICE, OUR EXPECTATION IS THEY'LL PROBABLY JUST KEEP DOING IT. WELL, IF THE
RESPONSE BACK IS IT’S NOT AVAILABLE OR IT COSTS A LOT, SOME OF THE OTHER TOOLS THEN
COME INTO PLAY.
E-rate Program
Simplifying Discount Calculations
Fall 2014 Applicant Trainings
Simplifying Discount Calculations
Overview
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Revised Discount Matrix
Simplified School District Calculations
School Calculations
Library System Calculations
Consortia
Urban/Rural Classifications
Alternative Discount Mechanisms
Discount Exceptions
Community Eligibility Provision
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Simplifying Discount Calculations
New Discount Principles
• Discounts are calculated for the organization as a whole.
• Discount rates do not 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 level and
only if more than 50% of schools or libraries are rural.
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Revised Discount Matrix
Note lower top discount rate for Category Two services.
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Simplifying Discount Calculations
School Districts
• All schools in the school district get the same discount.
– Simplifies process by not having to calculate multiple
discount rates for different groups of schools.
– When eligible, Non-Instructional Facilities (NIFs) get the
same discount as the schools in district.
– Single schools within a district never get their own
discount rate, even if they are the only school receiving
that service.
– Urban/Rural status based on all of the schools in the
district (not including NIFs).
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Simplifying Discount Calculations
Libraries and Library Systems
• Libraries get their discount 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.
• Libraries calculate their own 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.
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Simplifying Discount Calculations
Non-Instructional Facilities (NIFs)
• 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 with classrooms, like all other entities in the school
district or library system, get the same district-wide
discount.
• NIFs don’t get an urban/rural status
– NIFs get their discount from the district/system,
regardless of their physical location and are not
counted in the urban/rural determination.
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Simplifying Discount Calculations
Consortia
• Consortia calculate their discount based on the simple
average of their consortia members. However, all
consortia members now are listed at their district-wide
discount rate, even if only some schools in the district
participate in the consortium.
– Only consortia entities can get a discount that doesn’t
come straight from the discount matrix.
• All FRNs, regardless of the entities served, get the same
consortia-wide discount rate.
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School District Calculations
School District Discount Example
• School District A (10 schools)
– Total student population 3,000 students
– Total students eligible for NSLP = 1,000 students
– All but one of the schools are located in urban areas,
so district = urban
– 1,000 students eligible for NSLP/3,000 students = 33%
eligible
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School District Calculations
School District Discount Example
• School District A
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School District Calculations
School District Discount Example
• 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.
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School District Calculations
School District Discount Example
• Library System ABC
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Discount Calculation Exceptions
Exceptions to Discount Calculations
• Voice Services Phase Down
– All voice service (POTS, Centrex, VOIP, cellular voice,
etc.) are subject to 20 percentage point reduction per
year from your regular discount
• FY 2015 = Regular discount – 20%
• FY 2016 = Regular discount – 40% etc.
• Category Two Top Discount
– Top discount rate = 85% instead of 90%
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Advanced Discount Calculations
One School; Three Discounts
• ABC Charter High School
– Total student population = 1,000
– Total student population eligible for NSLP = 800
= 80% students eligible for NSLP
Category One Discount = 90%
Category One Discount for Voice = 70% (90 - 20)
Category Two Discount = 85%
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Community Eligibility Provision (CEP)
• (CEP) provides an alternative approach for offering school
meals to local educational agencies (LEAs) and schools in low
income areas, instead of collecting individual applications for
free and reduced price meals.
• Allows schools that predominantly serve low-income
children to offer free, nutritious school meals to all students
through the National School Lunch and School Breakfast
Programs (NSLP).
• http://www.fns.usda.gov/school-meals/communityeligibility-provision
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Community Eligibility Provision (CEP)
• Nationwide program to reduce NSLP paperwork burden.
• Schools must have at least 40% of their students directly
certified to qualify for CEP – By April 1 of prior school year.
• All students eat free, but this does not mean they are
counted as eligible for E-rate purposes. Must still determine
eligibility percentage.
• 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.
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Community Eligibility Program (CEP)
• Districts report TOTAL student counts
– Document student counts used to arrive at your total numbers for PIA
and audit purposes.
 Remember how you determined numbers for each
school and summed to determine total student counts
(School A = CEP, School B = participation for Oct 2014,
School C = survey, etc).
 Optional worksheet in online FCC Form 471 keeps
numbers for you.
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CEP – Calculation
• School population = 1,000 students
• 50% are direct certified = 500 students
• 500 students * 1.6 = 800 students eligible for NSLP
• 800/1000 = 80% of students are eligible
• E-Rate Discount level - 90% (Rural or Urban)
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Discount Matrix
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Community Eligibility Program (CEP)
• School District Example
– Calculate student population for each school
– Calculate NSLP eligible population for each school
 May require calculation for CEP schools
– Sum NSLP eligible population for entire school district
– Sum student population for entire school district
– Calculate percentage of students eligible in district
– Determine urban/rural status of district
– Look up discount rate in discount matrix
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Mixed District – CEP & NSLP
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Discount Matrix
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E-Rate Census Discount Calculations
• Month One Data - MSIS
• Verification Webpage - Emailed
• Data Calculation Page will contain Simple Discount
percentage
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Simplifying Discount Calculations
Questions?
Simplifying Discount Calculations I 2014 E-rate Program Applicant Trainings
E-rate Program
Eligible Services
Fall 2014 Applicant Trainings
Eligible Services
Overview
• Eligible Services List (ESL)
– Category One
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Broadband
Voice Services
Eliminated Services
Eligibility Limitations
– Miscellaneous
• Lit and Dark Fiber
– Category Two
• Internal Connections
• Eliminated Internal
Connections
• Managed Internal
Broadband Networks
• Basic Maintenance of
Internal Connections
• Pricing Transparency
• Bundling Order
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Eligible Services
Eligible Services List
• The FY 2015 Draft ESL was released August 4th, 2014
– Comments were due 9/3/14 and reply comments were due
9/18/14
• Streamlined
– For FY 2014, the ESL was 49 pages
– For FY 2015, the ESL is 8 pages
– Divides services into Category One (those providing high-speed
connectivity to the building) and Category Two (those services
providing high-speed connectivity throughout the building)
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Eligible Services
Eligible Services List
• Focus support on Broadband
• Phase down of Voice Services
• Eliminates outdated legacy services and other former
Priority One services
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ESL – Category One
Eliminated services
• From Telecom Services
• From Internet Access
– Paging
– Web Hosting
– Custom Calling Services
– E-mail
– 900/976 call blocking
– Voice Mail
– Inside Wire
Maintenance
– Directory Assistance
– DID lines
Eligible Services I Fall 2014 E-rate Program Applicant Trainings
• From Cellular
– Text Messaging
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ESL – Category One
Eligible Voice Services Subject to Phase Down
• Centrex
• Satellite telephone service
• Circuit capacity dedicated • Shared telephone service
to providing voice service • Wireless telephone
• Interconnected VoIP
service including cellular
voice
• Local, long distance, 800
service
• POTS
– Excludes data and text
messaging
• Radio Loop
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Eligible Voice Services Subject to Phase
Down
• If you are 90%
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2015 = 70% discount (90%-20%)
2016 = 50% discount (90%-40%)
2017 = 30% discount (90%-60%)
2018 = 10% discount (90%-80%)
2019 = 0% discount (ineligible) (90%-100%)
• If you are 60% discount
• 2015 = 40% discount (60%-20%)
• 2016 = 20% discount (60%-40%)
• 2017 = 0% discount (ineligible) (60%-60%)
We have a 2 year cellular bundle plan under SMC for $59.95. It includes voice, data, texting,
pictures…..and a free $600 (cost to the provider) iPhone 5s.
Annual Pre-discount cost = $719.40.
So, we first must cost allocate the ineligible phone for each year ($300 per year – let’s
assume the FCC will allow us to cost allocate over the two year period).
New pre-discount cost = $419.40.
Then we have to cost allocate the data, which has been determined to be 50% ( of the plan.
Newest pre-discount cost = $209.70.
Highest discount would be 70% (90-20 for FY2015) and 50% (90-40) for FY2016.
FY2015 FRN request = $146.79 (20% savings)
FY2016 FRN request = $104.85 (15% savings)
ESL – Category One
Eligibility Limitations for Data Plans, Air Cards and Mobile
Hotspots for Portable Devices
• 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
• Off-campus use, even if used for an educational purpose, is
ineligible for support and must be cost allocated out of any
funding request.
• Exceptions may include library bookmobiles or where there is
a very small number of students or patrons
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ESL – Category Two
Eligible Internal Connections
• *NEW*Subject to the Category Two five-year budget approach
– Access points
– UPS
– Cabling
– Wireless LAN Controllers
– *NEW* Caching
– Improvements, upgrades
and software necessary
to support eligible
broadband internal
connections components
– Firewalls
– Network switches
– Routers
– Racks
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ESL – Category Two
Formerly Eligible as Internal Connections
• The following are no longer eligible for E-rate
support:
o Circuit Cards/Components o Storage Devices
o Interfaces
o Telephone Components
o Gateways
o Video Components
o Antennas
o Voice over IP components
o Servers
o Video over IP components
o Software
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ESL – Category Two
*NEW* Managed Internal Broadband Services (e.g. Managed
Wi-Fi)
• Subject to the Category Two five-year budget approach
• 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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ESL – Category Two
*NEW* Managed Internal Broadband Services (e.g. Managed
Wi-Fi)
• 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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ESL – Category Two
• Wi-Fi; Minimum of 3 options:
1. Managed solution where a service provider owns,
manages, monitors, installs and maintains the Wi-Fi
equipment. The school or library leases the
equipment as a managed service.
2. The school or library purchases the equipment but
hires a service provider to manage, monitor, install
and maintain the equipment, but the school or
library retains ownership.
3. The school or library purchases the equipment and
performs all related management, installation and
maintenance of the equipment.
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ESL – Category One
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ESL – Category One
Fiber – Waiting for Order, But Rumor has it
• Schools and libraries unable to get fiber will be able to
build out a private, district wide networks.
• This will only be available to those that cannot get access
to fiber. (not to replace current leased services)
• It will have to be the most cost effective means of getting
access to fiber. (competitive bid)
• Does not have to be a Telecom Provider or ISP, can be a
Fiber Construction Company
• Starts in 2016
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Pricing Transparency
Increasing Pricing Transparency
• Transparency requirements for both E-rate recipients and
vendors begin in FY 2015
• Provides greater visibility into pricing and technology
choices by peers
• Improves analyses performed by the Commission, state
coordinators and third parties regarding the program’s
effectiveness and potential improvement of cost-efficient
purchasing
• Help identify best practices for purchasing and reducing
waste
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Pricing Transparency
Increasing Pricing Transparency
• In order to create pricing transparency, Item 21 information
entered in the FCC Form 471 will be publicly available
• Applicants may opt out of this public disclosure requirement
only if a specific state law or statute, local rule, or other
restriction, such as a court order or pre-existing contract,
which bars publication of the purchasing price data
• Vendor contracts executed after the effective date of the
Order may not contain any restriction barring publication of
this pricing data
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Bundling Order
The Bundling Order - DA 14-712
• 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:
– Tablets
– Telephone handsets
– VoIP handsets
– Netbooks
– Computers
– Laptops
– Cell Phones
– Filtering
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Questions?
Simplifying Discount Calculations I 2014 E-rate Program Applicant Trainings
E-rate Program
Category Two Budgets
Fall 2014 Applicant Trainings
Category Two Budgets
Overview
• What are Category Two 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?
• How are services counted against my budget?
• How do I allocate costs for shared services?
• Examples
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Category Two Budgets
What are Category Two budgets?
• Each school or library receiving Category Two support will
have a five-year budget for Category Two products and
services (those that distribute broadband within schools and
libraries).
– Category Two products and services include Internal
Connections, Managed Internal Broadband Services, and
Basic Maintenance of Internal Connections.
– Products and services ordered in excess of an entity’s
Category Two budget will not receive E-rate discounts.
– There is no budget for Category One services (those that
connect broadband to schools and libraries).
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Category Two Budgets
Which entities have Category Two budgets?
• Each individual school and each library outlet or branch has a
pre-discount budget. School districts or library systems may
not average their costs across multiple school or library
budgets.
• Non-instructional facilities (NIFs) – including school NIFs with
classrooms and administrative buildings – do not have prediscount budgets.
– If a NIF is essential for the effective transport of information to or
within a school or library, the applicant must allocate the NIF costs to
the entities benefiting from the service while the costs for ineligible
services to a NIF should be allocated out.
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Category Two Budgets
How much is my budget?
• 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 $5.00, with a minimum of
$20,000 if the library is less than 4,000 square feet.
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Category Two Budgets
How much is my budget (cont’d)?
• Remember that the budget is PRE-DISCOUNT.
• For example, for a school with 1,000 students:
– At the 85% discount rate (the maximum discount rate for
Category Two), the school will have a pre-discount budget of
$150,000, but may receive E-rate discounts of up to $127,500.
– At the 50% discount rate, the school will have a pre-discount
budget of $150,000, but may receive E-rate discounts of up to
$75,000.
– At the 20% discount rate, the school will have a pre-discount
budget of $150,000, but may receive E-rate discounts of up to
$30,000.
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Category Two Budgets
Can my budget change from year to year?
• 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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Category Two Budgets
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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Category Two Budgets
What period of time does my budget cover?
• The pre-discount budget calculation is for a five-year
period, starting with the first funding year in which you
receive Category Two support.
– However, 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, or any other
combination up to your total.
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Category Two Budgets
How are services counted against my budget?
• Any funding commitments that include your entity as a
recipient of service in FY2015 count against your prediscount 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.
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Category Two Budgets
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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Category Two Budgets
Example 1
• My District has 2400 students. How do I calculate my
Category Two pre-discount budget?
– 2400 students x $150 per student = $360,000
Elementary
900 students @$150 = $135,000
Middle
800 students @$150 = $120,000
High
700 students @$150 = $105,000
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Category Two Budgets
Example 2
• My library is 3,500 square feet. How do I calculate my
Category Two pre-discount budget?
– 3,500 square feet x $5.00 per square foot = $17,500.
– However, there is a $20,000 floor. Since the result of the
calculation is less than $20,000, the pre-discount budget is
$20,000.
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Category Two Budgets
Example 3
• My school has 100 students and a Category Two pre-discount
budget of $15,000. I plan to use the entire amount for
FY2015. If we get 20 additional students for FY2016, how does
this impact my pre-discount budget?
Calculate the budget each year using the total number of students that year.
– In FY2016, 120 students x $150 per student = $18,000.
– Subtract the pre-discount amount used in FY2015 to determine the
amount available in FY2016. Subtract $15,000 budget used in FY2015
from $18,000.
– Available pre-discount budget for FY2016 is $3,000.
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Category Two Budgets
Example 4
• My library has a $23,000 pre-discount budget. We used
exactly half for FY2015. However, we were eligible for a
50% discount in FY2015 but are eligible for a 70%
discount in FY2016. What is in my pre-discount budget
for FY2016?
– Half of the budget ($11,500) was used in FY2015, so
half ($11,500) remains for FY2016.
– Because the budget is PRE-DISCOUNT, a change in the
E-rate discount does not change the budget.
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Category Two Budgets
Example 5
• My school district has three schools – Elementary School
with 25 students, Middle School with 50 students, and
High School with 75 students. How do I correctly allocate
a shared service with a pre-discount cost of $300?
Straight line Proportional by students Specific (e.g., usage)
A = $100
A = 25/150 x $300 = $50
A uses 30% = $90
B = $100
B = 50/150 x $300 = $100
B uses 15% = $45
C = $100
C = 75/150 x $300 = $150
C uses 55% = $165
$300
$300
$300
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Category Two Budgets
Example 6
• On my FCC Form 471, I estimate that 90 students will attend a new
school we are building. However, only 80 students actually register
and attend. If I am at an 80% discount and I spent my entire prediscount budget in FY2015, how much money must I return to
USAC?
– Original budget for FY2015 = 90 x $150 = $13,500
– E-rate discount of 80% is $10,800 in E-rate funding
– Actual budget should have been 80 x $150 = $12,000
– E-rate discount of 80% would have been $9,600
– $10,800 - $9,600 = $1,200 to be returned.
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Category Two Budgets
Questions?
Simplifying Discount Calculations I 2014 E-rate Program Applicant Trainings
E-rate Program
Maximizing Cost Effectiveness and
Simplifying the Process
Fall 2014 Applicant Trainings
Overview
Overview
• Competitive Bidding Exemptions
• Preferred Master Contracts
• Seeking Bids on behalf Consortium Members
• Simplified Application Process
• Invoice Deadline Extension Requests
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Competitive Bidding Exemptions
When is the FCC Form 470 not required? (cont’d)
Preferred Master Contracts (PMC)
• The FCC has not yet designated any contracts as PMC
• Once the FCC does designate one or more PMCs,
applicants seeking Category Two equipment are exempt
from filing the FCC Form 470 if they purchase from PMC,
required to include services available on the PMC in bid
evaluations or both.
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Competitive Bidding Exemptions
When is the FCC Form 470 not required? (cont’d)
Preferred Master Contracts (PMC)
• Preferred master contracts are master contracts
designated by the FCC as Preferred Master Contracts that
offer eligible entities nationwide opportunities to obtain
excellent pricing for Category Two equipment.
• State master contracts and nation-wide contracts are not
the same as preferred master contracts
• The updated FCC Form 471 will have a check box to
indicate you purchased from a PMC.
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Consortium Leader
Can consortium leaders conduct competitive bidding?
• Yes, consortium leaders may seek bids on behalf of
members without purchasing the E-rate eligible services
and equipment
• Consortium leaders must have authority to conduct the
competitive bidding for consortium members. A Letter of
Agency (LOA) is one way to show authority.
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Simplified Application Process
When are technology plans required?
• Beginning in FY2015, technology plans are NO longer
required to be eligible for E-rate support.
• The FCC, however, strongly encourages all applicants to
carefully review existing plans given the many changes in
the program resulting from the E-rate Modernization
Order.
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Simplified Application Process
Do I have to file FCC Form 471 annually?
• Yes, FCC Form 471 must be filed annually. There is no
multi-year FCC Form 471.
• A simplified application process will be available for
applicants who have a multi-year contract. They will not
be required to complete a full FCC Form 471 during the
subsequent contract years.
– Must complete a full FCC Form 471 the first year you apply
for discounts for that contract using the new FCC Form 471
– Indicate on the FCC Form 471 you have multi-year contract
the first year you apply using the new FCC Form 471
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Simplified Application Process
Do I have to file FCC Form 471 annually? (cont’d)
– Contract cannot be longer than 5 years
– Required to provide basic information during the
subsequent contract years
– Does not guarantee funding in the subsequent years
– Required to explain changes to funding (e.g., discount
change, services, etc.)
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Simplified Application Process
Do I have to file FCC Form 471 annually? (cont’d)
FY 2015 – Complete
Full FCC Form 471
FY 2016 - Complete
Simplified FCC Form
471
07/2015 – 06/2022
FY 2015 –Complete
Full FCC Form 471
FY 2016 – Complete
the Full FCC Form 471
Contract Dates:
07/2013- 06/2018
FY 2015- Complete Full
FCC Form 471
Contract Dates:
07/2015 – 6/2020
Contract Dates:
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings
FY 2016 –Complete
Simplified FCC Form
471
79
Simplified Application Process
Legally Binding Agreement
• Applicants should have a signed contract or legally binding
agreement prior to filing the FCC Form 471.
– Contract must be signed and dated on or before the FCC Form
471 certified postmark date
– Legally Binding Agreement is acceptable when the applicant
can demonstrate written offer and acceptance exist. Verbal
offer and/or acceptance is not allowable.
– Purchase Orders?
• Generally purchase orders do not meet USAC contract
guidelines. We recommend that if applicants intend to use
a purchase order as their contract, they check their state
and/or local contract laws to ensure that purchase orders
meet state and/or local contract requirements.
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Simplified Application Process
How can rural schools and libraries share broadband services?
• Rural schools and libraries may establish Direct
Connections for the purpose of accessing high-speed
broadband services.
• For example, libraries with low bandwidth within close
proximity to a school with higher bandwidth could be
added to the school’s WAN.
• If program rules need to be waive, schools and libraries
should file a waiver request with the FCC for the purpose
of seeking E-rate support for direct connections.
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Simplified Application Process
How can rural schools and libraries share broadband services?
• Direct Connections waiver requests should be filed with
the FCC. For more information on how to submit a
waiver request visit the FCC’s website
• Waiver requests can be filed now for the FY 2015 funding
year
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Dark Fiber
Lit Fiber
Microwave
We recognize that it will likely be necessary to waive some of our
rules to allow E-rate support for such connections. We therefore
encourage applicants to file waiver requests for the purpose of
seeking E-rate support for such direct connections.
Dark Fiber
Lit Fiber
Microwave
Category 1 services
Include Equipment as a managed service
Waive what rules?
http://www.usac.org/sl/applicants/beforeyoubegin/eligible-services/wan.aspx
• Wide Area Network Rules
– Leasing a WAN is eligible for Schools and Libraries Program support
but building or purchasing a WAN is not eligible.
– FCC rules provide that the actual wires that carry data across public
rights-of-way and the components located outside a school or library
facility are WAN components and are evaluated for eligibility under
Telecommunications Services and Internet Access. USAC will not
provide support on an agreement that is titled or described as a lease
when, in effect, the terms of the agreement constitute a purchase.
Factors evaluated when making this determination include whether
the applicant has exclusive access to the WAN facilities, whether a
lease-purchase agreement exists, and whether a substantial payment
for upfront capital costs is part of the agreement.
Questions?
Simplifying Discount Calculations I 2014 E-rate Program Applicant Trainings