Roadshow Presentation
Funding Year 2012
October 2011
Gary Rawson, ITS
Lee Bray, MDE
3/22/2016
1
Topics to cover
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The Mississippi Story
1.
Funding
2.
Denials
ITS State Master Contracts
Deadlines
1.
Technology Plan
2.
Form 470
3.
Form 471
4.
PIA Contacts
5.
FCDL
6.
Form 486
7.
BEAR or SPI
8.
Service Deliver
9.
Invoice Delivery
State Procurement
Eligible Services
Non Instructional Facilities
Gift Rules
CIPA
Guest Speakers
1.
Bobby Massey is going to speak about MDE
2.
Jimmy Webster is going to speak about ITS, 4000, and RFPs in general
Open Lab to file Form 470s and BEARs
3/22/2016
2
E-rate hot-lines
Complaints And Gripes
• Call 601-432-8113
• Talk to whomever answers
3/22/2016
Compliments and happy stories
• Call 601-359-5544
• Talk to whomever answers
3
Vendor E-rate Contacts
• It is often difficult to keep up with contact
information for Service Providers and TCs.
• People change, or addresses change
• Wouldn’t it be nice if….
– All Service Providers and/or TCs had a single email address that would route e-mails to the
appropriate person or persons
– What about mserate@serviceprovider.com
– What about erate@schooldistrict.k12.ms.us
3/22/2016
4
Mississippi E-rate
as of October 19, 2011
We have completed 14 years and are now entering our
15th year of the program
• Committed dollars, including FY2011: $471,801,698.21
• Average $ per student:
$943.60
(Assuming Student Count of 500,000)
• Average $ per year:
3/22/2016
$31,453,446.55
5
Mississippi E-rate
as of October 19, 2011
For FY2010, Year 14 of the program
• Average Statewide discount:
83.6%
• Pre-Discount Amount:
$47,397,967.67
• Requested Amount:
$40,053,888.23
Difference
3/22/2016
$7,344,079.44
6
Different Ways of Viewing the Same
Data
3/22/2016
7
Different Ways of Viewing the Same
Data
3/22/2016
8
Mississippi E-rate
as of October 19, 2011
For FY2010, Year 14 of the program
• Average Statewide discount:
83.6%
• Pre-Discount Amount:
$47,397,967.67
• Requested Amount:
$40,053,888.23
Difference
3/22/2016
$7,344,079.44
9
Mississippi E-rate
as of October 19, 2011
For FY2010, Year 14 of the program
• Requested Amount:
$40,053,888.23
• Committed Amount:
$36,859,704.54
Difference:
Denials:
3/22/2016
$3,194,183.69
$2,389,931.82
10
Mississippi E-rate
as of October 19, 2011
For FY2010, Year 14 of the program
• Committed Amount:
$36,859,704.54
• Disbursed Amount:
$21,745,052.86
3/22/2016
Difference:
$15,114,651.68
Unfiled BEARS:
$5,951,433.63
Pending:
$9,163,218.05
11
105 FRN Denials for FY 2010
3/22/2016
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• The FRN is denied because the applicant failed to
respond to the Administrator's Selective Review
Information Request. You did not provide any
documentation to determine if the entity met program
rules requirements for competitive bidding and Item 25
certification.
13
3/22/2016
• The FRN is denied because the applicant failed to respond
to the Administrator's Selective Review Information: This
FRN is denied because the documents provided by you
and/or your vendor indicates that there was not a fair and
open competitive bid process free from conflicts of
interest. The documentation provided by you and/or your
service provider indicates that prior to/throughout your
contractual relationship with the service provider listed on
the FRN, that you were offered and accepted gifts, meals,
gratuities, entertainment from the service provider, which
resulted in a competitive process that was no longer fair
and open and therefore funding is denied.
14
3/22/2016
• 30% or more of this FRN includes a request for Cisco
Learning Credits which is an ineligible product(s)/service(s)
based on program rules.
• This funding request is denied as a result of a Cost
Effectiveness Review, which has determined that your
request for basic maintenance of the Mitel PBX System and
its components has not been justified as cost effective as
required by FCC rules. Percentage of maintenance vs.
purchase cost for the Mitel PBX System and its components
is 250% ($24,999.96/$10,007.05).
15
3/22/2016
• Applicant has not provided sufficient documentation to
determine the eligibility of this item. No documentation
was provided for item(s): Current Form 470
• Applicant has not provided sufficient documentation to
determine the eligibility of this item. No documentation
was provided for item(s): make/model of equipment, costallocation for Video on Demand Content Storage, Remote
Controls, Microphones, Cameras, Speakers.
• Form 471 canceled in consultation with the applicant.
• Denied for Unknown Reasons
16
3/22/2016
You already know the process is as
simple as Jell-o…Right?
Tech Plan
470
Contract
486
FCDL
471
Bear/SPI
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Deadlines
3/22/2016
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Technology Plan
• Written before filing a Form 470
• Written before filing a Form 471 if using a SMC or
an existing contract
• Approved before services start (certify on 486
that TP has been approved)
• Notes:
TP should not cover more than three years
Current TP should cover at least part of the upcoming
funding year
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Form 470
• Must be filed soon enough to allow 28 days
before signing a contract and filing a Form 471
• Form 470 Receipt Notification Letter (RNL) allows
15 days to respond with corrections
• Notes:
The RNL allows you to make specific modifications to
your Form 470 information
If you provide yourself enough time you can simply
file a replacement 470
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Form 471
• Cannot be filed prior to the Window Opening (Early Jan.)
• Cannot be filed prior to the Allowable Contract Date as shown on
your Form 470 (if you filed one) and on your RNL
• Must be filed prior to the Window Closing (Mid March)
• Form 471 Receipt Acknowledgment Letter (RAL) allows 20 days to
respond with corrections
• Notes:
 The Item 21 Attachments have to be “SUBMITTED” prior to the end of
the Window, not after the Window as in years past (Prior to FY2010)
 If you provide yourself enough time you can simply file a replacement
471
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PIA Contact
• Contact has been made if PIA performed:
 A live telephone conversation with the contact person or other
person designated by the contact person
 A voice mail message left at the contact person's telephone
number
 A fax sent to the contact person's fax number with confirmation
of successful transmission
 An email message sent to the contact person's email address
without a return message of unsuccessful transmission
• You have 15 days to respond after PIA has made a request
• If you don’t respond PIA will contact the State E-rate
Coordinator (who may in turn contact your Super)
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FCDL
• If you are funded, but USAC reduced your Funded Amount
or
• If you are denied funding
You have 60 days from the date of the FCDL to APPEAL
• Typically you appeal first to USAC
• You can appeal directly to FCC
• Notes:
 Almost all denials should be appealed
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Form 486
• Cannot be filed prior to the FCDL
• Must be received by USAC no later than 120 days after Service Start
Date on the 486
or
• No later than 120 days after the date of the FCDL
whichever is later
• Applicants that have received a FCDL may file an Early 486 (prior to
July 1st) if they have confirmed with their Service Provider that
services will start in July of the upcoming funding year
• USAC will send a Form 486 Notification Letter to both applicant and
service provider(s)
• Notes:
 The Form 486 generally notifies USAC that services have begun and that
USAC can begin processing of payments
3/22/2016
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Form 474 – SPI (Service Provider
Invoice)
• Cannot be filed by the Service Provider if the Applicant has already
filed a Form 472 (BEAR)
• Cannot be filed by the service provider until:
 The Billed Entity has filed a Receipt of Service Confirmation Form (Form
486) for the services for which discounts are being requested
 The eligible services have been or are being received
 The service provider has provided a customer bill to the Billed Entity at
discounted prices.
• USAC will issue a Remittance Statement to the Service Provider once
the Form 474 has been filed (the applicant is not notified).
• Notes:
 No invoices will be paid until the Service Provider has filed its Service
Provider Annual Certification (SPAC)
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Form 472 – BEAR (Billed Entity
Applicant Reimbursement)
• Cannot be filed by the Applicant if the Service Provider has already filed a
Form 474 (SPI)
• Cannot be filed by the Applicant /Billed Entity until:
 The Billed Entity has filed a Receipt of Service Confirmation Form (Form 486) for
the services for which discounts are being requested
 The eligible services have been or are being received
 The Billed Entity has paid for the services in full
• The Form 471 must be received not later than 120 days after the last date to
receive service or 120 days after the date of the From 486 NL, whichever is
later
• USAC will issue a Form 472 Notification Letter to both the Applicant and the
Service Provider once the BEAR has been filed
• Notes:
 BEARS are usually filed annually, but can be filed quarterly, semiannually, monthly
 No invoices will be paid until the Service Provider has filed its Service Provider
Annual Certification (SPAC)
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Service Delivery Deadlines
Recurring Services
• Must be delivered during the relevant funding
year (July 1 – June 30)
Priority One infrastructure cost can be incurred prior
to the funding year
Initiation of installation cannot take place before
selection of the service provider pursuant to a
posted Form 470 and in any event no earlier than six
months prior to July 1 of the funding year.
The Priority 1 service must depend on the
installation of the infrastructure.
The underlying Priority 1 service cannot have a
service start date prior to July 1 of the funding year.
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Service Delivery Deadlines
Non-Recurring Services
• Must be delivered during the relevant funding year (July 1 –
September 30)
• Extensions can occur when:
 A Funding Commitment Decision Letter (FCDL) is issued by USAC on or
after March 1 of the funding year for which support is authorized
(AutoE)
 Service provider change authorizations or service substitution
authorizations are approved by USAC on or after March 1 of the funding
year for which support is authorized (AutoE)
 The applicant requested an extension because the service provider was
unable to complete delivery and installation for reasons beyond the
service provider's control (Before September 30th)
 The applicant requested an extension because the service provider has
been unwilling to complete delivery and installation after USAC withheld
payment for those services on a properly-submitted invoice for more
than 60 days after submission of the invoice (Before September 30th)
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Invoice Deadline
Last Day of Service
30
31
31
31
3/22/2016
31+31+30+28 = 120
31
Last Date to Invoice
30
Invoice Deadlines
• Invoices must be postmarked no later than:
 120 days after the last date to receive service, or
 120 days after the date of the Form 486 Notification Letter, whichever is later.
•
USAC provides for the extension of invoice deadlines under certain
conditions. These conditions include:
 Authorized service provider changes
 Authorized service substitutions
 No timely USAC notice (e.g., the service provider's Form 486 Notification Letter
is returned as undeliverable)
 USAC errors (for example, in data entry) that ultimately result in a late invoice
 Documentation requirements that necessitate third-party contact or
certification
 Natural or man-made disasters that prevent timely filing of invoices
 "Good Samaritan" BEARs
 Circumstances beyond the service provider's control
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ITS State Master Contracts
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ITS Contract Sheet
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Using ITS Single Award Contracts
• For Single Award Contracts, there is only one
provider
– ATT (4000-1): WAN services, In-StateLD, Out of State
LD, POTS, Centrex, Voice Mail, WAN Equipment
– Cspire (RFP3489): Cellular and Blackberry
• Do you have to solicit quotes?
– Yes, for your Item 21 Attachment
– It is a good practice, but you are not required to
obtain a quote for each Funding Request Number,
especially if it is for recurring services.
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Using ITS Multi-Award Contracts
• The only one we have that is e-rate eligible is the Switch EPL
– EPL 3548
• MDE paid ITS to create this specifically for Districts
• You will have to solicit quotes from all vendors, just as you have in the
past.
• IT Hardware EPL 3658
– Desktop and mobile-based computers, monitors, engineering and GISLevel workstations, laser and inkjet printers, large format printers and
plotters, interactive whiteboards, projectors, large displays, Windowsbased servers, storage, UPS, rack, switches, wireless components, thin
client systems, video conferencing equipment, and AV components.
– The IT Hardware EPL replaces the former Micro 3605 EPL and the
Computer Hardware 3630 EPL. Both of these EPLs expired June 30, 2011
and may no longer be used
– The IT Hardware EPL is valid through June 30, 2014
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Questions about ITS Contracts
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Your Own Procurement/Bidding
Process
InLine
Here!
Telepak
Here!
Comcast
Here!
AT&T
Here!
3/22/2016
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State Purchasing Guidelines for NonState Contract Purchasing
–$0-$5,000
3/22/2016
• May purchase without
advertising or
otherwise requesting
competitive bids, unless
the purchasing agency
or entity has
established more
stringent procedures
(your district may have
its own guidelines).
38
State Purchasing Guidelines for NonState Contract Purchasing
–$5,001-$50,000
3/22/2016
• May purchase without
advertisement for bids,
provided at least two
competitive written
bids have been
obtained.
39
State Purchasing Guidelines for NonState Contract Purchasing
–$50,001
and above
3/22/2016
• Advertise, issue
written specifications
and received sealed
bids or proposals.
40
State Purchasing Guidelines
• Large projects -You may hire ITS to help you
• Procurement guidelines
– www.its.ms.gov/procurement.shtml
3/22/2016
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Procurements…
•
Lifecycle Cost
– The lifecycle cost of an information technology project means the total committed costs of
the project, not just the initial or up-front costs. Lifecycle cost includes all costs associated
with obtaining the item and maintaining and operating it for its projected lifecycle. Initial or
one-time costs might include purchase price, freight, installation, and training. Ongoing
costs include such expenses as post-warranty maintenance; support, including help desk
charges, upgrade charges, and on-site vendor personnel; and any recurring usage charges.
– $5,000 per month, for a three year contract has the Lifecycle Cost of $180,000
($5000 per month*12 months * 3 years =$180,000)
•
Do IT services have to be bid?
– Yes, Section 25-53-3 of the Mississippi Code of 1972 defines ITS' authority over the
acquisition of any information technology, computer or telecommunications equipment,
electronic word processing and office systems, or services utilized in connection therewith,
including, but not limited to, all phases of computer software and consulting services and
insurance on all state-owned computer equipment. Please note that, unlike public
purchasing law, the statute that defines ITS' purview over technology acquisitions includes
services. All technology services, whether for direct, hands-on skills such as application
development and network support, or for such technology consulting services as
technology studies, project management, technology advisory roles, qualilty assurance
support, and facilities management, are within ITS purview. Reference 001-020 –
Acquisitions with ITS Purview in the Procurement Handbook for more information.
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Yes, but….School Districts are
Governing Authorities, not under
ITS Purview.
• Governing authorities (e.g. community/junior colleges,
county boards of supervisors, school districts,
municipalities) are not required to use ITS procurement
procedures but may choose to do so as one way of
meeting public purchasing requirements.
• Public Purchasing Law: “Services do not have to be bid.”
 Telecom Service
 Cellular Service
 Internet Service
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If You file your own 470
• You select your vendor and sign your own
contract
• If you choose an ITS State Master Contract (SMC)
then you must cite your own 470 and you must
use the date you decided to use the SMC as your
Contract Award Date (CAD)
– The CAD must be after the Allowable Contract Date
(ACD) on the 470 (28days)
– When audited, you will have to prove why you chose
SMC, just as you have to prove why you chose any
vendor
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Form 470
• When filing your Form 470, file under
Telecommunications Services (Block 2, Item
8) and Internet Access (Block 2, Item 9)
• For Priority One, WAN Services and Internet
Access there are two types of providers
1. Telecom Provider (ATT, InLine, Telepak, Comcast)
2. Internet Service Provider (Cable Company,
Research Network, Municipality)
Form 470
3/22/2016
Form 470 Instructions
45
Should applicants submit an FCC Form 470 for lit fiber under
both the telecommunications and Internet access categories?
• Yes. Any entity can provide supported telecommunications in whole
or in part via fiber (whether lit or dark).
• Applicants are encouraged to submit an FCC Form 470 indicating
the desired service in both the telecommunications service and
Internet access categories.
• Once a provider is selected, an applicant should check the
appropriate category of service on the FCC Form 471 application
based on the type of provider they select to provide the fiber.
• If the provider is an eligible telecommunications carrier, the
applicant can select Telecommunications Services if they are
purchasing telecommunications services and other services, such
as Internet access.
• If an eligible telecommunications carrier is providing only Internet
access, and not telecommunications services, then the applicant
must select Internet access.
• All other providers should be listed under Internet Access.
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470 Guidance
• Purpose – to establish an e-rate eligible contract
• Procurement Process must be Open and Fair
– Open means there are not secrets in the process such as
information shared with one bidder but not with others
– Fair means that all bidders are treated the same and no
bidder has advance knowledge of the project
information
• Must abide by State and Local Rules
– Item 25 on the 470, “I certify that I have reviewed all
FCC, State, and local procurement/competitive bidding
requirements and that I have complied with them.”
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470 Guidance
• Price is the primary determining factor
– “Lowest and best”
• RFP is not required – but is recommended
• The Bidding process must be open for 28 days
– You cannot award the contract within 28 days
– You cannot select your vendor within 28 days
– You cannot file a Form 471 within 28 days
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470 Guidance
• “Service providers…sending a generic email to
the applicant saying that the service provider
can provide the general type of service
requested is not considered a good faith
response to a Form 470 posing and can be
considered ‘spam’ and ignored by the applicant.”
• An applicant “Not responding to a potential
bidder promptly can result in compromised
competitive bidding process which can result in
funding denial.”
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470 Guidance
• “An applicant may choose to post questions received from
potential bidders along with the applicant’s answers on
the applicant’s website. Doing so would ensure that all
potential bidders have access to the same information – a
key component in the fair and open competitive bidding
process.”
• “You (an applicant) can set out specific requirements and
disqualify bids that do not meet those requirements as
long as you clearly identify the disqualification reasons on
the 470 and/or your RFP. Disqualifications should be
determined prior to any substantive bid evaluation.
Disqualification reasons cannot be scored on a range, but
rather a binary –i.e., the bidder either meets the standard
or does not meet the standard.”
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470 Guidance
• Mandatory Walkthrough – “You can require that bidders
participate in a walkthrough of your facility, or attend a
bidders conference in order to submit a bid. As long as
you have clearly stated in you 470 and/or RFP that not
attending these events is a reason for disqualification, you
can disqualify bids from service providers that were not
present at these events.”
• Response Due Date - You can require that bidders submit
their responses by a certain date and time and can reject
any late responses as long as you have clearly stated in
you 470 and/or RFP that a late response is a reason for
disqualification. But, only if the deadline is after 28 days.
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470 Guidance
• 470 Window?
– No, but you do have a deadline
• “If you wait until the last possible day to post
your Form 470, you will have to close your
competitive bidding process, evaluate the bids
received, select your service provider, sign a
contract, and sign and submit your Form 471
(with Item 21 attachments) all on the last day of
the filing window.”
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470 Guidance
• If the Window close March 15th
• Deadline for filing a Form 470 is Feb. 17th
• If you have to file on paper then you are looking
at Feb. 10th to give USAC time to process it.
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470 Guidance
• Most common denials
1.
2.
3.
4.
28 day violation
Not a fair and open procurement
Weak 470 – encyclopedic
Wrong categories of service
• “DR1: The 470 cited did not include
service of this type; therefore it does not
meet the 28 day competitive bidding
requirement.”
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Your Contracts
Funding Year 2012
07-01-12 to -6-30-13
• What if…
1.
2.
3.
4.
5.
6.
7.
3/22/2016
470:
Contract:
471:
FDCL:
486 SSD:
CED:
LDInvoice:
11-09-11
12-20-11
02-15-12
06-01-13
07-01-12
06-30-13
01-28-15
1 yr = 07-01-12 to 06-30-13
15 months after FCDL
55
Questions about the procurement
process
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Eligible Services
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Eligible Services
Priority One
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
58
Priority One
Not Eligible as Telecom Services
• Broadcast “Blast” messaging
• Monitoring services for 911, E911 or alarm telephone
lines
• Services to ineligible locations
• End-user devices
– Cell phone, tablet computers
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
59
Priority Two
Basic Maintenance of Internal Connections
• Support for basic maintenance of eligible internal
connections (BMIC)
• Such as:
– Repair and upkeep of hardware
– Wire and cable maintenance
– Basic tech support
– Configuration Changes
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
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Priority Two
Basic Maintenance of Internal Connections
• Agreements or contracts must state the eligible
components covered, make, model and location
• Service must be delivered within the July 1st to June 30th
timeframe
• Two-in-Five Rule does not apply to BMIC
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
61
Priority Two
BMIC Updated Guidance
• Standard manufacturer warranties of no more than three
years remain eligible.
– If there is a cost associated with the warranty, then
the warranty is not eligible
• Support for BMIC is limited to actual work performed
under the contract
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
62
Priority Two
BMIC Updated Guidance
• Applicants may make estimates based on:
– Hours per year of maintenance
– History of needed repairs and upkeep
– Age of eligible internal connections
• Applicants using the factors listed above must submit a
bona fide request
• It is not reasonable to estimate an amount that would
cover the full cost of every piece of eligible equipment.
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
63
Priority Two
BMIC Updated Guidance
• Flat rate contracts may be eligible however, applicants
may only invoice for services actually delivered/work
performed.
• Exceptions that will not require demonstration that work
was performed are:
– Software upgrades and patches
– Bug fixes and security patches
– Online and telephone based technical support
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
64
Dark Fiber
Telecommunications Services vs Telecommunications
• Telecommunication Services and Telecommunications
are two separate categories on the Eligible Services List
(ESL)
– Telecommunications Services can only be provided by
an eligible telecommunications carrier
– Telecommunications can be provided by nontelecommunications carriers via fiber in whole or in
part
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
65
Dark Fiber
Leased Dark Fiber as Priority One
• Leased Dark Fiber added as Telecommunications in the
FY2011 Eligible Services List
• Allows for the lease of dark fiber as a priority one service,
from any entity
• On the FCC Form 470, file for both Telecom and Internet
Access
• On the FCC Form 471, select the Telecom box if the dark
fiber is provided by a telecom carrier
– In all other cases, select the Internet Access box
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
66
Dark Fiber
• Leased Dark Fiber as Priority One
• Installation costs to hook up the dark fiber is eligible from
the eligible entity to the property line
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
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Dark Fiber
Dark Fiber as Priority One
• Special Construction charges to build out connections
from applicants’ facilities to an off-premise fiber network
are NOT eligible
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
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Dark Fiber
• Dark Fiber as Priority Two
• Installation and Fiber costs between two
eligible buildings, not crossing a public right
of way are considered Internal Connections
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
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Eligible Services
Equipment Transfers, Disposal and Trade-in
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
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Equipment Transfers
Equipment transfer rules
• In general, equipment may not be transferred for money
or any other thing of value
• A no-cost transfer may occur three years or more after
the purchase of the equipment to other eligible entities
• No equipment transfer may occur prior to three years
from the purchase, unless the eligible entity is
permanently or temporarily closing
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
71
Disposal of Equipment
Disposal of Equipment Rules
• As of January 3, 2011, applicants can dispose of obsolete
equipment, but no sooner than five years after the date
the equipment is installed
• Resale for payment or other consideration is allowable
no sooner than five years after the equipment is installed
• Resale or disposal is prohibited before the five years have
passed.
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
72
Trade-ins and Exchanges
Trade-ins and Exchanges
• Trade-ins of equipment may be permitted if the E-rate
funded equipment to be traded in has been installed for
five years
– This limitation does not apply for equipment not
funded through E-rate
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
73
Questions about Eligible Services or
the Transfer of Equipment
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Non-Instructional Facility (NIF)
3/22/2016
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Calculating Your Discount
Non-Instructional Facilities
• Non-instructional facilities (NIFs) are buildings operated
by a school, library, or district that are not schools or do
not contain public library spaces
• NIFs may or may not contain classrooms
• NIFs are always eligible for Priority 1 services
• NIFs are only eligible for Priority 2 services if the services
are essential for the effective transport of data to the
classroom or public areas of the library
Eligible Services I 2011 Schools & Libraries Fall Applicant Trainings
76
Calculating Your Discount
Non-Instructional Facilities
• NIFs on the campus of single school/library and that serve
only that entity, get the discount of that school/library
– Separate entity number necessary only if public right-ofway is crossed
• NIFs that serve multiple schools/libraries, and without
classrooms or public areas, get shared discount for the
school district/library system
– Use Block 4 checkbox for shared discount worksheet
– Use additional worksheet if needed to indicate entities
receiving service
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Calculating Your Discount
Non-Instructional Facilities and New School Construction
• NIFs that serve multiple schools and have classrooms use
the snapshot method to get discount
– Snapshot method: Choose a specific day and
determine the NSLP eligibility of the student
population that is in class on that day
– Retain documentation of your calculation
• School under construction
– Population is known = use that data
– Population is unknown = use district shared discount
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Questions?????
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Gifts
E-rate Gift Rules
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New Gift Rules
Fair and Open Competitive Bidding
• Applicants have always been required to conduct fair and
open competitive bidding process
• Applicants certify on the Form 471 Item 29 that they
“…have not received anything of value or a promise of
anything of value, other than services and equipment sought
by means of this form, from the service provider, or any
representative or agent thereof or any consultant in
connection with this request for services. “
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• FCC Rules - 47 C.F.R. § 54.503(d)
• Federal Gift Rules - 5 C.F.R. § 2635.201-205
• FCC Sixth Report and Order - 25 FCC Rcd 18762 (2010)
• FCC Clarification Order - 25 FCC Rcd 17324 (2010)
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E-rate Gift Rules
Gift Rules
• Solicitation or receipt of gifts by applicants from service
providers and potential service providers and vice versa is a
competitive bidding violation.
• Rules apply to everyone participating in the E-rate whether
public or private, and whether operating at the local, state or
federal level.
• Must always follow FCC rules. May also need to comply with
additional state/local requirements. If those provisions are
more stringent than federal requirements, failure to comply
with them will be a violation of FCC rules.
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E-rate Gift Rules
Gift Prohibitions
• Gift prohibitions are applicable year-round, not just
during the competitive bidding process
• Prohibition including soliciting and receiving any gift or
thing of value from an applicant or a service provider
participating in, or seeking to participate in the E-rate.
• Service providers may not offer or provide any gifts to
applicant personnel involved in the E-rate or vice versa.
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E-rate Gift Rules
Gift Rule Exceptions
• “Modest refreshments not offered as part of a meal, items
with little intrinsic value intended for presentation, and items
worth $20 or less, including meals, may be offered or
provided , and accepted by any individuals or entities subject
to this rule, if the value of these items received by any
individual does not exceed $50 from one service provider per
funding year.” See 47 C.F.R. § 54.503(d)(1).
• Single source =
all employees, officers, representatives, agents, contractors,
or directors of the service provider.
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E-rate Gift Rules
Gift Rule Exceptions Examples
• A Service Provider has offered a school district employee
lunch at a local sandwich shop three times during the course
of the year. The value of the school district employee’s meal is
$9 each time. The total value of the gifts is $27. No other gifts
are received by this employee from this provider. The meals
fall in the $20 per instance and $50 per year exception and
there is no rule violation.
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E-rate Gift Rules
Gift Rule Exceptions Examples
• A library employee and his spouse are invited by a service
provider to attend a play, tickets to which have a face value of
$30 each. The aggregate market value of the gifts offered on
this single occasion is $60, $40 more than the $20 amounts
that may be accepted for a single event or presentation. The
employee may not accept the gift of the evening of
entertainment. He and his spouse may attend the play only if
he pays the full $60 value of the two tickets.
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E-rate Gift Rules
Gift Rule Exceptions Examples
• A service provider’s spouse is the town librarian. The service
provider employee may give the librarian a birthday gift exceeding
$20, as long as it is not reimbursed by the company, and is being
given based on their personal relationship.
• Three service provider employees invite a tech director to join them
at a golf tournament at their company’s expense. The entry fee is
$500 per foursome. The tech director cannot accept the gift even
though he has an amicable relationship with the service provider
employees. Since the fees are paid by the company, it is the
business relationship, not the personal relationship that is the
motivation behind the gift.
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E-rate Gift Rules
Curing Violations
• Promptly return any tangible item to the donor, or pay
the donor its market value, or, if perishable, the item may
be given to an appropriate charity or shared within the
office or destroyed. See CFR 2635.205(a).
– To avoid public embarrassment to the seminar sponsor and Erate service provider, the Superintendent did not decline a
barometer worth $200 given at the conclusion of her speech on
the district’s education initiatives. The Superintendent must
either return the barometer or promptly reimburse the provider
$200 to cure the violation.
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E-rate Gift Rules
Curing Violations Examples
• With approval from the recipient’s supervisor, a floral
arrangement sent by a service provider may be placed in
the office’s reception area.
• A district employee wishes to attend a charitable event
to which he has been offered a $300 ticket by a service
provider. Although his attendance is not in the interest of
the district, he may attend if he promptly reimburses the
donor the $300 face value of the ticket.
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Gifts
Charitable Donations
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Charitable Donations
Charitable Contributions
• Gift rules are not intended to discourage charitable
donations as long as the donations:
– Are not directly or indirectly related to E-rate
procurement activities or decisions, and
– Are not given with the intention of circumventing
competitive bidding or other FCC rules
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Charitable Donations
Allowable Charitable Contributions
• Paid-for-exchange services at market rates, such as the
purchase of advertising space, is neither a gift nor a
charitable donation as long as it is not intended to
influence the competitive bidding process.
• For example, service providers purchasing advertising
space on the high school football score board, for
which they pay market rates, would not cause any
violations.
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Charitable Donations
Potentially Allowable Charitable Contributions
• Equipment, including laptops and cell phones, may be
permissible if it benefits the school or library as a whole
and broadly serves an educational purpose.
– Gifts of equipment that increase demand for a donor’s
services, and thus cause the applicant to purchase
more of a provider’s services, are prohibited.
• Example: Service provider donates computers, causing
a need for more Internet Access, which the provider
sells to the library
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Charitable Donations
Potentially Allowable Charitable Contributions
• Cash, equipment, including sporting, musical or
playground equipment, may be permissible if they
benefit the school or library as a whole and broadly serve
an educational purpose.
– For example, a donation of books for a literacy
campaign, given to a school by an E-rate service
provider, would be acceptable donation that benefits
the school and broadly serves an educational purpose.
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Charitable Donations
Unallowable Charitable Contributions
• Donations given for the purpose of influencing the
competitive bidding process are rule violations.
– Donations could either be directly from the service
provider or solicited or accepted indirectly through a nonprofit organization.
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Charitable Donations
Gifts solicited or accepted indirectly
• “A gift which is solicited or accepted indirectly includes a gift:
(1) Given with the employee’s knowledge and acquiescence to
his parent, sibling, spouse, child, or dependent relative
because of that person’s relationship to the employee, or (2)
Given to any other person, including any charitable
organization, on the basis of designation, recommendation, or
other specification by the employee except as permitted for
the disposition of perishable items or payments made to
charitable organizations in lieu of honoraria.” See 5 C.F.R. §
2635.203(f).
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Charitable Donations
Gifts solicited or accepted indirectly
• Donations made indirectly through a third party, such as
a non-profit, would be prohibited if the organization is
used as a shell to disguise a directed gift.
– A service provider directing its foundation to provide a
cash donation equal to the value of the applicant’s
non-discount share is a prohibited donation.
• Service provider cannot direct the donation and must
relinquish control of the gift once provided to a nonprofit.
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Charitable Donations
Gifts solicited or accepted indirectly
• Example:
– An employee who must decline a gift of a personal
computer pursuant to this rule may not suggest that the
gift be given instead to one of five charitable organizations,
whose names are provided by the employee.
– A service provider cannot donate computers to raffle with
the caveat that they go to E-rate recipients, or specific
individuals or schools, or a subset of schools and libraries.
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Charitable Donations
Unallowable Charitable Contributions
• Service providers cannot offer special equipment
discounts or equipment with service arrangements to Erate recipients that are not currently available to some
other class of subscribers or segment of the public.
– Free phone/tablet with purchase of service contract
must be available to non-E-rate customers as well
• Donations to cover the applicant’s non-discount share
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Charitable Donations
Unallowable Charitable Contributions
• Equipment for a specific individual or group of individuals
associated with or employed by an E-rate participant.
– Service provider may not give a gift to a teacher who
helps draft a district’s technology plan, even if that
teacher does not ultimately help select the E-rate
service provider.
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Gifts
Conferences and Training Sessions
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Conferences and Training Sessions
Prizes
• Raffle tickets, prizes, or door prizes that have a retail
value of over $20 violate the gift rules unless the event is
open to the public.
– “Open to the Public” means the event is free of charge
and that members of the public at large typically
attend such a gathering.
• State Fair would qualify
• State District IT Directors meeting would not qualify
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Conferences and Training Sessions
Widely Attended Gatherings
• “Widely attended gatherings” allow for free attendance and
meals or refreshments at that event. See 5 C.F.R. §
2635.203(g)
– Gathering is widely attended if:
• Employee’s attendance must be in the interest of the agency
(i.e. school or library) and further its programs and
operations, and
• It is expected that a large number of persons will attend,
and
• Persons with a diversity of views or interests will be present.
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Conferences and Training Sessions
Conferences – Permissible Actions
• Food, refreshments, instruction and documents given to all
attendees at Widely Attended Gatherings are permissible.
• Trainings offered by state, regional or local government
bodies or non-profits or trade associations that include those
bodies are not considered vendor promotional training
– Vendor promotional training means training provided by any
person for the purpose of promoting its products or services.
See 5 C.F.R. § 2635.203(g)
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Conferences and Training Sessions
Conferences – Permissible Actions
• Service providers can host, sponsor, or conduct E-rate
training, as long as they do not provide any gift that exceeds
the gift exceptions
– Service providers cannot help with preparation or
completion of forms, or determining the services listed on
the FCC Form 470 and/or RFP.
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Conferences and Training Sessions
Conferences – Impermissible Actions
• Training or conference regarding one or few vendors services
would not meet the definition of a Widely Attended Event
even if many people attended.
– Travel expenses, lodging, meals, and entertainment associated
with the event would be considered gifts and therefore
violations.
– Free attendance when it would otherwise cost to attend is also
a violation.
• Meals at a Widely Attended Gatherings not provided to all
attendees would be subject to gift limits
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Conferences and Training Sessions
Conferences – Registration Fees
• Service providers can offer an “educational discount” on the
attendance fee to a Widely Attended Event as long as it is
available to all employees of schools and libraries.
• Applicants cannot accept free attendance, paid by a service
provider, even if the school or library has assigned the
employee to attend the event.
• A Service provider cannot pay for or reimburse expenses for
an applicant to speak at a conference on behalf of that service
provider, or in any other setting, e.g. newspaper or magazine.
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Representation on Boards
Board Membership
• Employees who are required by law to sit on the
governing board of a governmental agency that acts as a
service provider do not violate the gift rules when they
accept meals or travel expenses required to execute their
official position and duties on that board.
• Service providers may sit on a school’s fundraising board,
as long as that does not unduly influence the competitive
bidding process or provide them with inside information.
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Questions?
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CIPA
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What is CIPA?
• You have a Handout – Read it
• You also have E-rate Central’s CIPA Policy Primer
• Children’s Internet Protection Act was signed into
law on December 21, 2000
– Beginning with FY2001, CIPA sets certain
requirements for E-rate recipients of service receiving
funds for Internet Access, Internal Connections, and
Basic Maintenance of Internal Connections
– CIPA DOES NOT APPLY to Telecommunications Services
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CIPA Compliance
Children Internet Protection Act requirements:
– Proof of public notice of public meeting or hearing
– Proof of public meeting or hearing
– Copy of Internet Safety Policy
– Technology protection measure
• Applicants must be CIPA compliant when receiving Internet
access in the telecom service category
Documentation Tip:
– Must maintain documentation from prior years if it
supports current funding year
– Filter documentation examples: maintenance logs, filtering
logs, proof of purchase or vendor filter description
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Summary of New Requirements
New requirements under CIPA
• FOR SCHOOLS – By July 1, 2012, amend your existing
Internet safety policy (if you have not already done so) to
provide for the education of minors about appropriate
online behavior, including interacting with other
individuals on social networking sites and in chat rooms,
and cyberbullying awareness and response.
• FOR LIBRARIES – No new requirements.
• Overall - several existing statutory requirements have
been codified and others have been clarified.
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Cybersafety
Free Resources for Educators
• http://onguardonline.gov/features/feature-0004featured-net-cetera-toolkit
• http://www.mediaawareness.ca/english/resources/educational/lessons/cyb
erbullying.cfm
• http://www.cybersmartcurriculum.org/
• http://www.staysafeonline.org/
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CIPA Questions
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