E-rate Modernization
E-rate 2015
E-rate Modernization 2015
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General Information & Updates
What is the role of CDE, K-12 HSN and 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.
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General Information & Updates
•Form 471 filing window:
–Opens at noon EST on Wednesday, January 14,
2015
–Closes at 11:59 PM EDT on Thursday, March 26,
2015
•Last possible day to file the Form 470:
–Thursday, February 26, 2015
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E-rate Modernization
Bidding process
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Bidding Process
•Form 470 – starts the bidding process
–Identifies number of eligible entities receiving
services
–Identifies products/services that applicant is
seeking bids for
•May include information on RFP, if one is being used
–Includes required certifications of program
compliance
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Bidding Process
BIDDING
•Reminders
–Post Form 470 (and RFP if using one) for
minimum of 28 days
–Ensure bidding process is fair and competitive
•Respond equally to all legitimate inquiries
•Do not provide “insider” information to any potential
bidder
•Clearly define disqualifying factors or special
requirements
–Ensure Form 470 has been certified
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Bidding Process
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
($86,000 for 2015) 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
significant scope change
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Bidding Process
SELECTING A SERVICE PROVIDER
•Requirement: must select the most cost
effective solution
–Price must be the heaviest weighted factor.
–Must be able to demonstrate why a solution with
higher than average pricing is cost-effective.
–Service providers may work with applicants to
help them understand the technical needs for a
more expensive solution.
–Service Provider must provide the Lowest
Corresponding Price. (see next slide)
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Bidding Process
WHAT IS LOWEST CORRESPONDING PRICE? (LCP)
•LCP relates to Category 1 services
•Proposed pricing must be the lowest price that a
service provider charges to a non-residential
customer similarly situated for similar services
•Responsibility rests with Service Provider to
provide pricing that is LCP compliant
–Applicants encouraged to compare prices, especially
if only one bid response is received
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Bidding Process
NO BIDS RECEIVED?
•Keep a written record of this fact
–During an audit this may be the only evidence you are
able to produce that no bids were received
•You can:
–contact service providers to solicit bids
–review and evaluate any bids received as a result
•However, if you post a new RFP or Form 470 you
must wait another 28 days before reviewing bids
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Bidding Process
ONLY ONE BID RECEIVED?
•Document this fact
–Provides evidence during audit that you did not
simply keep the winning bid
•E.g.: Send an email to yourself documenting that only
one bid was received as of a certain date
–FCC expects applicant to demonstrate cost
effectiveness, even if only one bid is received
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Bidding Process
BID EVALUATION
•Cost of eligible services MUST BE the heaviest
weighted factor (see next slide for example)
•Other factors may be considered by applicant,
e.g.:
–Prior experience
–Personnel qualifications
–Cost of ineligible components/services
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Bidding Process
•Sample Bid Evaluation Matrix
Factor
Points Available
Vendor 1
Vendor 2
Vendor 3
Price of the ELIGIBLE goods and
services
Prior experience w/ vendor
30
15
30
25
20
20
0
20
Prices for ineligible services,
products & Fees
Flexible Invoicing: 472 or 474
25
20
15
25
15
0
15
15
Environmental objectives
5
5
3
2
Local or in state vendor
5
5
5
5
Total
100
65
68
92
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Bidding Process
BID AWARD
•Follow local, state, federal policies
–A purchase order may be considered a contract ONLY if the State
considers it to be a contract
–Obtain Board approval if required
•A contract must be signed and dated by the applicant after
the Allowable Contract Date (ACD) and prior to the date the
FCC Form 471 is submitted
–The ACD is 28 days after the posting of the Form 470 or RFP,
which ever is later
•Voluntary contract extensions must be clearly identified in
the original contract language
–Note: Evergreen contracts (ones that automatically extend unless
cancelled) are not eligible within the E-rate program.
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Bidding Process
DOCUMENT THE PROCESS
•Keep copies of:
–RFP, if one was used
–All communications with services providers and
consultants
–All bids received, winning and losing
–Completed bid evaluation matrix
–Copy of signed contract
•Retain ALL documents for at least 10 years from
the last date that services are received (see Document
Retention section of Finishing the Process presentation)
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Eligible Services – Category 1
•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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Eligible Services – Category 1
•Eligible Voice Services Subject to Phase Down
• Centrex
• Satellite telephone service
• Circuit capacity dedicated to
providing voice service
• Shared telephone 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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Eligible Services – Category 1
•Services no longer eligible for E-rate
• 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
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Eligible Services - Category 2
•ALL Category 2 eligible services are subject to
Category 2 budget of five years
Schools: Pre-discount of $150/student
Libraries serving less than 250,000 population
Pre-discount of $2.30/square foot
Libraries serving 250,000+ population:
Pre-discount of $5.00/square foot
All qualify for a floor of $9,200 pre-discount
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Eligible Services – Category 2
•Eligible Internal Connections
• 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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Eligible Services – Category 2
•No longer Eligible for Internal Connections
• 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
•Managed Internal Broadband Services (Wi-Fi 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
• 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
• 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
• 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 – Category 2
• Miscellaneous
• 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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E-rate 2015
Form 471 – Helpful Hints
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Form 471
•What is the Form 471?
–Used to request funding
•Specific services, e.g. voice, digital transmission
•Specific dollar amount
•Specific locations
•Specific time frames
–Certifies that you followed all program rules
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Form 471
•When do I file the Form 471?
–AFTER your 28 day bidding process on the
Form 470 is complete
•For services in an existing multi-year contract you
can begin your Form 471 at anytime
–AFTER you sign contracts
–BEFORE March 26, 2015 at 8:59 p.m. (Pacific
Standard Time)
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Form 471 – Helpful Hints
•Supported web browsers:
–Internet Explorer versions 9 and 10
–Firefox – most recent version
–Chrome – most recent version
–Safari – most recent version
•Clear your browser’s cache/cookies/history before
starting form
•Blue chevrons at top of form indicate where you are
in the form
Basic
Information
Discount
Calculation
Funding
Requests
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Certifications
& Signatures
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Form 471 – Helpful Hints
•Use a newer version of Excel for uploading
templates
•If you experience “error” messages – save, exit
the system and log back in
•Print Preview will not be available prior to the
close of the window
–Do print screen and save as PDF as an alternative
•Daily tips:
http://www.usac.org/sl/default.aspx
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Form 471 - Sample
•TRAINING SITE: http://sldtraining.usac.org/
•LIVE SITE:
http://www.sl.universalservice.org/menu.asp
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E-rate Modernization
Contact information
•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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