TOM TORLAKSON
State Superintendent
of Public Instruction
E-rate for California
Intermediate/Advanced
Applicants
Intermediate/Advanced Presentation I 2013 California Department of Education
1
Agenda
TOM TORLAKSON
State Superintendent
of Public Instruction
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Role of CDE and State Library
E-rate Technology Planning
Discount Calculations
Eligible Services (interconnected VOIP)
FCC Form 470
Competitive Bidding
FCC Form 471
Myths & Misconceptions- CIPA
Gifting Rules
Form 500
Audits
CALNET 3
Appendices
A. California Teleconnect Fund (CTF)
B. Discount Calculations
C. Eligible Services
D. Invoice Reconciliation
E. Avoid the Dirty Dozen Mistakes
Intermediate/Advanced Presentation I 2013 California Department of Education
2
General Information about E-rate
The role of CA Dept of Ed and State Library
TOM TORLAKSON
State Superintendent
of Public Instruction
 CDE & State Library have no statutory authority
to administer the federal E-rate program
 CDE & State Library only provide general
information about the E-rate program including:
training and outreach, reference materials, and
other publicly available SLD/USAC resources
Intermediate/Advanced Presentation I 2013 California Department of Education
3
What is the NPRM & its Purpose
TOM TORLAKSON
State Superintendent
of Public Instruction
• NPRM = Notice of Proposed Rulemaking
• Purpose: To give applicants and the public an
opportunity to provide input to the E-rate
program. “How to Improve it”
• Why: First Catalyst: Program does not have
enough funds for P2, and may have challenges
with P1
• Time Line: Initial Comments were due Sept
16th, and Reply Comments were due Oct 16th.
However, you can always send comments via
the Ex Parte Process
• More on E-rate 2.0 at the Intermediate Advance
Training
Intermediate/Advanced Presentation I 2013 California Department of Education
4
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
E-rate Technology
Planning
Intermediate/Advanced Presentation I 2013 California Department of Education
5
E-rate Process
Technology Planning
TOM TORLAKSON
State Superintendent
of Public Instruction
FCC Form 470 & RNL
Competitive Bidding
FCC Form 471 & RAL
Application Review & FCDL
FCC Form 486
FCC Forms 472 (BEAR) & 474 (SPI)
Intermediate/Advanced Presentation I 2013 California Department of Education
6
Technology Plan Review
1.
FCC rules require an “approved” technology plan when receiving E-rate discounts
for priority 2 services.
2.
Find your public charter, district or COE Tech Plan status at:
http://www.cde.ca.gov/ls/et/rs/ap/county.asp
3.
Tech Plan must be “written” prior to posting Form 470.
4.
DOCUMENT the existence of this “Written Plan” – i.e., Letter/E-mail from Cabinet,
screen print of file name and date, and physical copy of plan.
5.
Must cover all 12 months of the funding year (July 1 – June 30).
6.
E-rate only plans should not cover more than 3 years; EETT tech plans that meet Erate requirements can cover 5 years with progress review during 3 rd year.
7.
Tech plans must include all services (both current and future) for which E-rate
discounts are sought.
8.
Must be approved by a “Certified Technology Plan Approver”
See the Technology Plan approver locator tool on the USAC website:
http://www.sl.universalservice.org/reference/tech/default.asp
10.
Leverage the technology expertise of your CTAP regional assistance: CTAP:
http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
7
4 Required Elements of a
Technology Plan Used for E-rate
1.
Clear statement of goals and realistic strategy for using
telecommunications and information technology to improve
education or library services.
2.
Professional Development strategy to ensure staff understands
how to use technologies to improve education or library services
3.
Needs Assessment of telecommunication services, hardware,
software, and other services that will be needed to improve
education/library services
Evaluation process to monitor progress towards goals and allows
for mid-course corrections in response to new developments as they
arise
TOM TORLAKSON
State Superintendent
of Public Instruction
4.
Budget: No longer required in the tech plan but USAC will likely request
this information during PIA or other application reviews. Best practice
would be to put a budget with appropriate fund sources highlighted in
your E-rate related documentation files.
Intermediate/Advanced Presentation I 2013 California Department of Education
8
Technology Planning
Tech Plan Cycle Dates
TOM TORLAKSON
State Superintendent
of Public Instruction
•
Technology plans may be submitted for
approval anytime but no later than:
1. Cycle A: November 30, 2013
2. Cycle B: May 31, 2014
Intermediate/Advanced Presentation I 2013 California Department of Education
9
Technology Planning
“Must Do” Reminders
1.
Must be “Written” prior to posting Form 470:
– It must be documented that it is written before the posting of the form 470!
(Applicant must document the existence of this plan, i.e., e-mail with plan
attached, memo from cabinet level about the plan being written, including
the date. “DATE STAMP.” )
2.
Must include a sufficient level of detail and cover all services (priority 2) for
which E-rate discounts are being sought on the Form 470(s) and subsequent
Form 471(s).
3.
Must be approved by the start of services (July 1) or the filing of Form 486,
whichever is earlier
4.
E-rate only plans must be approved by a “USAC Certified Technology Plan
Approver” see USAC link:
http://www.sl.universalservice.org/reference/tech/default.asp
5.
Tech plans must be submitted to your CTAP region for approval:
http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp
6.
Must include all four required elements (as noted previously) regardless of the
type of plan being used (E-rate only or Long Form tech plan)
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
10
Technology Planning
Additional reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• Service Providers may not act as technology
plan approvers, write/create, or assist in the tech
plan in any capacity
• Remember to include in your tech plan all the
services that you apply for on Form 470/471,
required for priority 2 - internal connections, and
basic maintenance
Intermediate/Advanced Presentation I 2013 California Department of Education
11
Technology Planning
Help
TOM TORLAKSON
• CDE/E-rate: Larry Hiuga,
E-rate@cde.ca.gov, 916-327-4629
State Superintendent
of Public Instruction
• CDE/Tech Plans: Doris Stephen,
dstephen@cde.ca.gov, 916-324-9943
• CTAP:
http://www.cde.ca.gov/ls/et/rs/ctapcoordinators.asp
• CTAP Tech Plan Builder:
http://myctap.org/index.php/techplan/tpb
• Libraries: Rushton Brandis,
Rushton.Brandis@library.ca.gov , 916-653-5471
Intermediate/Advanced Presentation I 2013 California Department of Education
12
Questions?
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
13
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
Discounts
Intermediate/Advanced Presentation I 2013 California Department of Education
14
Discounts
General information
TOM TORLAKSON
State Superintendent
of Public Instruction
• How large are the discounts on eligible
products and services?
– Discounts are 20-90 percent of eligible costs
– Discount level for a school or library depends on:
•
Percentage of students who are eligible for
National School Lunch Program (NSLP) in
– (for a school) the school
– (for a library) the school district in which the library
is located
•
Urban or rural location of the school or library
Intermediate/Advanced Presentation I 2013 California Department of Education
15
Discounts
Discount Matrix
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
16
Calculating Your Discount
CA Public Schools/School Districts
TOM TORLAKSON
State Superintendent
of Public Instruction
• Use state-verified data sources for free and
reduced lunch eligibility and enrollment
• Use CALPADS Reports 1.1 and 5.1a for 2013
– If 2013 not available, 2012 raw data files, based
on CALPADS located at:
http://www.cde.ca.gov/ds/sd/sd/filessp.asp
• Alternatively, use Child Nutrition and Information
Payment System (“CNIP”) claim form
– Claims are filed monthly, so you may choose
which month’s data to use
– Best practices to use consistent months year-toyear (i.e. every October)
Intermediate/Advanced Presentation I 2013 California Department of Education
17
Discounts – sample report
CALPADS Report 1.1 Enrollment
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
18
Discounts – sample report
CALPADS Report 5.1a
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
19
CNIP
Discounts – sample report
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
20
Calculating Your Discount
Schools/School Districts
TOM TORLAKSON
State Superintendent
of Public Instruction
• Calculate the discount rate for each individual
school
• School District average = weighted average of
the schools
• Multiply E-rate discount by total student population
of the school to get weighted product
• Add all weighted products and divide by total
students in school district
• Raw data files located at:
• http://www.cde.ca.gov/ds/sd/sd/filessp.asp
Intermediate/Advanced Presentation I 2013 California Department of Education
21
Calculating Your Discount
Individual Libraries
TOM TORLAKSON
State Superintendent
of Public Instruction
• Calculate the total percentage of students
eligible for NSLP in the school district in which
the building is located
• Use the urban/rural status of the county or
census tract in which the library outlet is located
Library Systems
• Calculate the E-rate discount for each library
outlet
• Calculate the simple average of the library outlets
– Add discounts for each outlet and divide by
total number of outlets
Intermediate/Advanced Presentation I 2013 California Department of Education
22
Calculating Your Discount
Non-Instructional Facilities (NIFs)
TOM TORLAKSON
State Superintendent
of Public Instruction
• 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-of-way is crossed
• NIFs that serve multiple schools/libraries, and
without classrooms or public areas, get shared
discount (aka weighted average) for the school
district/library system
• NIFs that serve multiple schools and with 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
Intermediate/Advanced Presentation I 2013 California Department of Education
23
Calculating Your Discount
New School Construction
TOM TORLAKSON
State Superintendent
of Public Instruction
• School under construction
– Population is known = use that data
– Population is unknown = use district shared
discount
• Library under construction
– Same as regular individual library outlet
• Private/Charter Schools
– Population is known: use that data
– Population is unknown: apply for 20% but can
amend with actual figures if obtained later
Intermediate/Advanced Presentation I 2013 California Department of Education
24
National School Lunch Program
Provisions 1, 2, and 3
TOM TORLAKSON
State Superintendent
of Public Instruction
• Allow for socio-economic survey to be used
to establish reimbursement rate and reduce
paperwork for schools
• Applicant uses approved NSLP eligibility
percentage to calculate discount rate
• Schools submit base-year documentation to
support discount rate
• If extension is granted, applicants can
submit extension approval letter to support
discount rate
Intermediate/Advanced Presentation I 2013 California Department of Education
25
Head Start
TOM TORLAKSON
State Superintendent
of Public Instruction
National School Lunch
Program
• All Head Start students meet free lunch
guidelines under NSLP
• Head Start entities automatically qualify for
90% discount
– Home based Head Start is not eligible
– Early Head Start (EHS) is not eligible
• If facility is shared with Head Start
students and Early Head Start students a
cost allocation must be done to account
for the ineligible students
Intermediate/Advanced Presentation I 2013 California Department of Education
26
Validation Letter Process
TOM TORLAKSON
State Superintendent
of Public Instruction
If USAC’s PIA Reviewer Questions Entity
and/or Discount %, Request Validation
Letter from CDE
• Follow instructions for the creation of certification letter
from entity
(http://www.k12hsn.org/files/erate/training_material/2012/Entity_and
_Discount_Validation_Template.doc )
• http://www.k12hsn.org/programs/erate/training_materials.php
• Send E-mail certification letter(using template with
completed information from the above web link) and USAC
PIA review e-mail to e-rate@cde.ca.gov for validation
• Validation e-mail from CDE will be created and sent to
USAC within 48 hours if not sooner.
Intermediate/Advanced Presentation I 2013 California Department of Education
27
Questions?
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
28
Intermediate/Advanced
TOM TORLAKSON
State Superintendent
of Public Instruction
Eligible Services
List (ESL)
Intermediate/Advanced Presentation I 2013 California Department of Education
29
Eligible Services
Categories of Service
TOM TORLAKSON
State Superintendent
of Public Instruction
• Priority 1 (P1): funded first
– Telecommunications Services
– Internet Access
– Telecommunications
• Priority 2 (P2): funding starts with neediest
applicants
– Internal Connections
– Basic Maintenance of Internal Connections
Intermediate/Advanced Presentation I 2013 California Department of Education
30
Eligible Services List Order
TOM TORLAKSON
As of FY 2013 ESL - List of P1 Services was
Consolidated
State Superintendent
of Public Instruction
•
Priority One services are no longer separated by
regulatory category (Telecommunications Services,
Telecommunications, and Internet Access)
– Consolidation is to make ESL more user-friendly
•
There are no changes to FCC rules and
requirements
– Consolidated list includes services that can be
requested as Telecom Services or Internet Access on
the FCC Form 471 (e.g., voice mail, interconnected
VoIP, fiber) depending on the type of service provider
Intermediate/Advanced Presentation I 2013 California Department of Education
31
Eligible Services List Order
ESL Order 2014
TOM TORLAKSON
State Superintendent
of Public Instruction
– FY 2014 Dark Fiber eligibility clarification:
• Special construction charges for leased dark fiber are
eligible only on the applicant’s property.
• Special construction charges for dark fiber from the
applicant’s property line out to a carrier’s fiber network
are not eligible (see diagram).
• For leased lit fiber, all service charges are eligible,
implicitly including charges associated with the offcampus construction.
Intermediate/Advanced Presentation I 2013 California Department of Education
32
Eligible Services
TOM TORLAKSON
State Superintendent
of Public Instruction
Priority One
Intermediate/Advanced Presentation I 2013 California Department of Education
33
Priority One
Telecommunications Services
TOM TORLAKSON
State Superintendent
of Public Instruction
– Local and long distance service
– Cellular
– Digital Transmission Services
•
•
•
•
DSL
T1, DS1, DS3
Satellite
PRI
– For more details refer to Beginners Presentation at
http://www.k12hsn.org/programs/erate/training_materials.php
Intermediate/Advanced Presentation I 2013 California Department of Education
34
Priority One
Not Eligible as Telecom Services
TOM TORLAKSON
State Superintendent
of Public Instruction
• Broadcast “Blast” messaging
• Monitoring services for 911, E911 or alarm
telephone lines
• Services to ineligible locations
• End-user devices
– Cell phones, tablet devices, netbooks
and computers
Intermediate/Advanced Presentation I 2013 California Department of Education
35
Priority One
Internet Access (IA)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Support for IA includes charges to access the
Internet and costs for the conduit to the Internet
• For wireless IA, make the distinction if this is
cellular (i.e. mobile) or not and if it is on campus
only.
• Other eligible Internet Access services include:
– E-mail service
– Wireless Internet access
– Interconnected VoIP
– Web hosting
Intermediate/Advanced Presentation I 2013 California Department of Education
36
Priority One
Not Eligible as Internet Access
TOM TORLAKSON
State Superintendent
of Public Instruction
• Costs for Internet content
– Subscription services such as monthly
charges for on-line magazine
subscriptions
• Internet2 membership dues
• Website creation fees
• Web-based curriculum software
• Software, services or systems used to
create or edit Internet content
• Off campus use of wireless IA is not eligible
Intermediate/Advanced Presentation I 2013 California Department of Education
37
Ineligible Internet Services
Ineligible charges related to web hosting
•
TOM TORLAKSON
State Superintendent
of Public Instruction
•
•
•
•
Costs attributable to the creation or modification of information,
or design such as a web site creation fee or content
maintenance fees.
Content supplied as part of a web hosting service created by
third-party vendors or the web hosting service provider itself
and any features or software involving data input or
Retrieval other than the provision of applicant-created content
for an educational purpose (e.g. teacher web pages or blogs).
Databases; student attendance or grades or grade
management; course scheduling; tests or testing systems; online/interactive education systems; and learning/education
Management systems. (An eligible web hosting service will also
not include support for the applications necessary to run online
classes or collaborative meetings).
Intermediate/Advanced Presentation I 2013 California Department of Education
38
Internet Services
FY 2014 Clarification of Eligible Internet
features
TOM TORLAKSON
State Superintendent
of Public Instruction
•
Features to facilitate ability to communicate, e.g.,
• blogging &
• discussion boards
are eligible if part of a web hosting package.
– Not eligible if they are offered as a standalone service.
•
Because FCC did not designate these features as standalone
services, applicants may NOT seek them from multiple
providers.
– Applicants may not seek funding for web hosting services
from one vendor and communications features from another
Intermediate/Advanced Presentation I 2013 California Department of Education
39
Eligible Services
TOM TORLAKSON
State Superintendent
of Public Instruction
Priority Two
Intermediate/Advanced Presentation I 2013 California Department of Education
40
Priority Two
Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
• Support for equipment and cabling onsite that
transport info to classrooms or public rooms of
a library
• Subject to the Two-in-Five Rule
– Entities can only receive funding every two
out of five years
Intermediate/Advanced Presentation I 2013 California Department of Education
41
Priority Two
Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
42
Priority Two
TOM TORLAKSON
State Superintendent
of Public Instruction
Basic Maintenance of Internal Connections
(BMIC)
• Support for basic maintenance of eligible
internal connections
• Such as:
– Repair and upkeep of hardware
– Wire and cable maintenance
– Basic tech support
– Configuration changes
Intermediate/Advanced Presentation I 2013 California Department of Education
43
Priority Two
Basic Maintenance of Internal Connections
TOM TORLAKSON
State Superintendent
of Public Instruction
• Agreements or contracts must state the
eligible components covered, make, model,
and location
• Service must be delivered between July 1June 30
• Two-in-Five Rule does not apply to BMIC
Intermediate/Advanced Presentation I 2013 California Department of Education
44
Priority Two
BMIC Updated Guidance
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicants may make estimates based on:
– Hours per year of maintenance
– History of needed repairs and upkeep
and
– 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
Intermediate/Advanced Presentation I 2013 California Department of Education
45
Priority Two
BMIC Updated Guidance
TOM TORLAKSON
State Superintendent
of Public Instruction
• 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 and
– Online and telephone based technical
support
Intermediate/Advanced Presentation I 2013 California Department of Education
46
Eligible Services
Open Items for USAC/FCC
TOM TORLAKSON
State Superintendent
of Public Instruction
Are free VoIP handsets permissible if provided to all
customers?
• –DA 10-2355 states, “For example, many cell phones are
free or available to the general public at a discounted
price with the purchase of a two-year service contract.
Schools and libraries are free to take advantage of these
deals, without cost allocation, but cannot accept other
equipment with service arrangements that are not
otherwise available to some segment of the public or
class of users.”
•
FCC still determining eligibility of handsets on a case by
case basis
Intermediate/Advanced Presentation I 2013 California Department of Education
47
Eligible Services
Open Items for USAC/FCC
TOM TORLAKSON
State Superintendent
of Public Instruction
•
Cloud Services:
– You may see CLOUD type services being offered as
part of a web hosting (bundled internet), etc. At
previous USAC training, it was stated that CLOUD
services was stated as being ineligible in general.
There was no specific official guidance at this point.
USAC will work with FCC for an official position
Intermediate/Advanced Presentation I 2013 California Department of Education
48
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
FCC Form 470
Intermediate/Advanced Presentation I 2013 California Department of Education
49
FCC Form 470
Form Summary
TOM TORLAKSON
State Superintendent
of Public Instruction
• Indicates the services and categories of
service which entities are seeking.
• Must be based on tech plan for Priority 2
services.
• Must be posted for at least 28 days.
• Indicates if you are planning/have issued an
RFP.
• Indicates any special requirements and/or
disqualification factors.
• Indicates who will be receiving the services.
Intermediate/Advanced Presentation I 2013 California Department of Education
50
FCC Form 470
Request for Proposal (RFP)
TOM TORLAKSON
State Superintendent
of Public Instruction
• FCC rules refer to RFPs generically, but they may
have a variety of names (Request for Quotes, Scope,
or Statement of Work).
• FCC rules do not require RFPs, but state and local
procurement rules may.
• Must be based on entities’ tech plan (if Priority 2
services).
• Must be available to bidders for at least 28 days
– Applicants must count 28 calendar days from whichever
document (FCC Form 470 or RFP) was posted or
available last
• Example: RFP posted on December 1, Form FCC 470
posted on December 15, December 15 starts the 28-day
clock.
Intermediate/Advanced Presentation I 2013 California Department of Education
51
FCC Form 470
FCC Form 470 and RFP issues
TOM TORLAKSON
State Superintendent
of Public Instruction
• Provide sufficient detail on FCC Form 470
for the desired products/services.
– Cannot provide generic descriptions (e.g., all
eligible telecom services, Digital Transmission
Services).
– Cannot provide laundry lists of products and
services.
• Significant change(s) made to RFP after its release
may require the 28 day bidding period to re-start.
Intermediate/Advanced Presentation I 2013 California Department of Education
52
FCC Form 470
Beware of KILLER GOTCHA’S
TOM TORLAKSON
State Superintendent
of Public Instruction
• Indicated you would not have an RFP and
yet you released one, or the reverse.
• Forgot to add one or more services on the
Form 470.
• Did not allow sufficient time for Form 470
and/or RFP to be posted for 28 days.
– Added detail to RFP that caused 28 day
period to re-start.
Intermediate/Advanced Presentation I 2013 California Department of Education
53
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Competitive Bidding
Intermediate/Advanced Presentation I 2013 California Department of Education
54
Competitive Bidding
Basics
TOM TORLAKSON
State Superintendent
of Public Instruction
• You must ensure that the competitive
bidding process is open and fair.
– You must keep all incoming
bids/correspondence with bidders and
– Evaluate bids equally
– All potential bidders have access to the
information from your FCC Form 470 and
RFP (if you filed one), and they can respond
to your requests.
Intermediate/Advanced Presentation I 2013 California Department of Education
55
Competitive Bidding
Basics
TOM TORLAKSON
State Superintendent
of Public Instruction
• Avoid conflicts of interests
• Independent Consultant vs. Service Provider
• Applicant vs. Service Provider
• Follow and UNDERSTAND the rules – FCC,
State and local
• Board Policy
• California Public Contract Code
• Bid Limits/Thresholds:
http://www.cde.ca.gov/fg/ac/co/bidthreshold2011.asp
• Master Contracts
• Document the process!!!
Intermediate/Advanced Presentation I 2013 California Department of Education
56
Competitive Bidding
NEW REQUIREMENT AS OF FY2013
TOM TORLAKSON
State Superintendent
of Public Instruction
– Commission’s competitive bidding rules
prohibit applicants from including a
particular manufacturer’s name, brand,
product or service in an FCC Form 470
or request for proposals (RFPs) unless
they also use the words “or equivalent” in
such a description.
• “XYZ manufacturer's high-speed router
model 345J or equivalent” meets new
requirement.
Intermediate/Advanced Presentation I 2013 California Department of Education
57
Competitive Bidding
Applicants Cannot
TOM TORLAKSON
State Superintendent
of Public Instruction
• Have a relationship with service providers
that would unfairly influence the outcome of
the competition
• Furnish service providers with inside
competitive information
• Have ownership interest in a service
provider’s company competing for services
• Violate gifting rules
Intermediate/Advanced Presentation I 2013 California Department of Education
58
Competitive Bidding
Applicants CAN
TOM TORLAKSON
State Superintendent
of Public Instruction
• Have pre-bidding discussions with potential
bidders as long as that doesn’t lead to one
bidder having more information than
another
• Attend product demonstrations
• Encourage and seek vendors to bid
• Do research to determine what costeffective solutions are available
Intermediate/Advanced Presentation I 2013 California Department of Education
59
Competitive Bidding
Service Providers cannot
TOM TORLAKSON
State Superintendent
of Public Instruction
• Dictate the types of services the applicant
will seek on a FCC Form 470/RFP
• Prepare, assist applicants with filling out the
FCC Form 470/RFP
• Sign, certify and/or submit FCC Form 470
• Assist or run the competitive bidding
process for the applicant, which includes
preparing or conducting the bid evaluation
and selection process.
Intermediate/Advanced Presentation I 2013 California Department of Education
60
Competitive Bidding
Service Providers CAN
TOM TORLAKSON
State Superintendent
of Public Instruction
• Ask clarifying questions when bids or
descriptions are vague or generic or if more
information is needed in order for the
service provider to effectively respond to
Form 470 and/or RFP
Intermediate/Advanced Presentation I 2013 California Department of Education
61
Competitive Bidding
Bid Evaluation
TOM TORLAKSON
State Superintendent
of Public Instruction
• Vendor selection criteria should be posted with
the RFP
• Vendor evaluation begins after 28 day waiting
period
• Follow your vendor selection criteria
• Price of the eligible goods and services must be
primary factor overall (the most cost-effective)
• Other factors, including other price factors, can
be considered as well but they cannot be
weighted equally or higher than cost of the
eligible goods and services
Intermediate/Advanced Presentation I 2013 California Department of Education
62
Competitive Bidding
Sample Evaluation Matrix
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced Presentation I 2013 California Department of Education
63
Competitive Bidding
AVOID Sham Bidding
TOM TORLAKSON
State Superintendent
of Public Instruction
• “I want to stay with my incumbent”
• Must respond to all legitimate inquiries
– Bidders can’t just send spam, but you have to talk to
bidders, too
– Providers that are being stonewalled may contact USAC for
assistance or may use the “Whistleblower’s Hotline”
• Cost to transfer to another provider alone is not by
itself a good enough reason to stay with incumbent
• Avoid appearances of a “done deal”
• Don’t post for something you don’t want
• If plans change, have a plan to communicate with
potential bidders
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64
Competitive Bidding
Reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• Solution must be cost-effective
• An existing contract can be used as a bid
response to your posted FCC Form 470
– Post 470, evaluate all bids & existing contract,
memorialize your decision if existing contract is
selected
• No bids or one bid (email yourself noting the
fact)
• Retain all vendor selection documentation
– Winning and losing bids, correspondences,
memos, bid evaluation documents, etc.
Intermediate/Advanced Presentation I 2013 California Department of Education
65
Competitive Bidding
Choosing a service provider
TOM TORLAKSON
State Superintendent
of Public Instruction
• After you close the competitive bidding
process for your services (on or after the
ACD), you can:
– Evaluate bids received
– Choose your service provider(s)
– Sign a contract
– Submit an FCC Form 471
Intermediate/Advanced Presentation I 2013 California Department of Education
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Competitive Bidding
Choosing a service provider
TOM TORLAKSON
State Superintendent
of Public Instruction
1. Must be signed AFTER 28 days have elapsed
but BEFORE you file your Form 471
2. READ AND UNDERSTAND THE FINE
PRINT!
3. Allow enough time to take contracts to Board
for approval (if required by Board policy)
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State Master Contracts & E-rate
TOM TORLAKSON
State Superintendent
of Public Instruction
• Master Contracts, Multiple Awards Schedules, and
Piggyback Contracts may be used but do not preclude FCC
bidding requirements
• Make sure Board policy is followed when using master
contracts
• Applicant must still post a Form 470 and conduct a 28-day
competitive bidding process
• Form 470 must indicate that vendors must be master
contract holders in order to respond
• All other federal requirements must be met (28-days, most
cost effective bid, etc…)
• If one vendor holding a master contract is encouraged to
bid, ALL vendors holding the master contract must be
contacted
• ONLY exception is CalNet with State Form 470
Competitive Bidding Gotchas
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicant did not follow requirements of
Public Contract Code (“CPCC”)
• Did not conduct formal bid for services over the
annual bid limit, and did not advertise in the
newspaper
• Did not follow the CPCC bidding requirements
for public works projects
• Applicant did not conduct a bona fide
competitive bidding process when
purchasing off a master contract,
piggyback contract, or multiple awards
schedule
• Applicant awarded contract before the
required 28-day window was completed
Competitive Bidding
Gotchas (continued)
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicant did not run a fair and open
process and did not respond to all
vendors equally
– Bid Protests
– Whistleblower Hotline
• Applicant did not adequately identify
disqualifying factors in competitive
bidding documents
• Applicant did not adequately describe
services sought on Form 470
• Inappropriate vendor involvement in
preparation of bidding documents
Bidding/Contracting Tips
TOM TORLAKSON
State Superintendent
of Public Instruction
• Plan for growth of or decrease of services over
the term of awarded contracts
– Increased Demand for Bandwidth
– School openings/closures
– Form 470 and/or RFP must account for such
contingencies
• One-year contract with voluntary extensions
versus multi-year contracts
– Contract language must allow for extensions
• Read the Fine Print, may involve legal council
if contract is being provided by the service
provider.
• Contracts contingent on receipt of funding
approval both through E-rate and locally
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Requesting Funding
FCC Form 471
Intermediate/Advanced Presentation I 2013 California Department of Education
72
New FCC Forms 470 and 471
Proposed FCC Form 470
Updates
New FCC Forms 470 and 471 I 2013 Schools and Libraries Fall Applicant Trainings
73
Proposed FCC Form 470 Updates
 Consolidated the Telecommunications and
Internet access categories of service into the
field Priority One Services
 Applicants must still distinguish services between
Telecommunications and Internet access on the FCC
Form 471
New FCC Forms 470 and 471 I 2013 Schools and Libraries Fall Applicant Trainings
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Proposed FCC Form 470 Updates
 Block 2, item 8a, 10a and 11a text addition
– 8a, 10a, 11a. YES, I have released or intend to
release an RFP for one or more of these services.
It is available or will become available on the
Internet at:
New FCC Forms 470 and 471 I 2013 Schools and Libraries Fall Applicant Trainings
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New FCC Forms 470 and 471
Proposed FCC Form 471
Updates
New FCC Forms 470 and 471 I 2013 Schools and Libraries Fall Applicant Trainings
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Proposed FCC Form 471 Updates
 Block 2 has been removed and a new data
gathering section has been added to Block 5
New FCC Forms 470 and 471 I 2013 Schools and Libraries Fall Applicant Trainings
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Proposed FCC Form 471 Updates
 Additional Block 5 reporting requirements
– For Broadband and other connectivity services
only
• E.g. T-1, fiber, DSL, cable, cellular wireless hotspots,
satellite
– Does not apply to non-broadband or other
connectivity services
• E.g. Cellular service, web hosting and email service
– Complete information for every applicable
funding request
New FCC Forms 470 and 471 I 2013 Schools and Libraries Fall Applicant Trainings
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Proposed FCC Form 471 Updates
 If you are not requesting broadband or other
connectivity services for the individual funding
request, check the box
New FCC Forms 470 and 471 I 2013 Schools and Libraries Fall Applicant Trainings
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Proposed FCC Form 471 Updates
 If you are requesting broadband or other
connectivity services, fill out Block 5, Item 24
 For example, if you request one T-1, six fiber
connections that average 150 Mbps and one
gigabit connection:
New FCC Forms 470 and 471 I 2013 Schools and Libraries Fall Applicant Trainings
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Proposed FCC Form 471 Updates
 Item 25 b, 1 - For applicants if the Internet
service is available to students or patrons in
more than just a single location or office
– If the access is provided by wired connections,
approximately what percentage of the school
classroom or public library rooms included in the
Block 4 worksheet for this FRN will have access to
wired drops? _____?
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Proposed FCC Form 471 Updates
 Item 25 b, 2 - For applicants if the Internet
service is available to students or patrons in
more than just a single location or office
– If the access is provided by Wi-Fi connections,
approximately what percentage of the school
classroom or public library rooms included in the
Block 4 worksheet for this FRN will have access to
wired drops? _____?
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FCC Form 471
Purpose
TOM TORLAKSON
State Superintendent
of Public Instruction
• Identify the service providers and eligible
services you have chosen
• Identify the eligible schools and libraries that
will receive services
• Calculate how much support you seek for the
year
• Include your discount calculation information
• Certify your compliance with program rules
Intermediate/Advanced Presentation I 2013 California Department of Education
83
FCC Form 471
General Information
TOM TORLAKSON
State Superintendent
of Public Instruction
• Must be filed every funding year
• This is your actual request for funding
• This is where you specify…Who, What,
Where, When, & How
–
–
–
–
–
WHO:
WHAT:
WHERE:
WHEN:
HOW:
Service providers chosen
Services being requested
Service Delivery locations
Dates for services
Costs for services and terms
Intermediate/Advanced Presentation I 2013 California Department of Education
84
FCC Form 471
Reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
• Include ALL NIFS on the Block 4 that will be
receiving discounted services
• Separate Priority 1 and Priority 2 services on
two different Forms 471
• Separate Recurring from Non-Recurring
charges
– Contract expiration date for non-recurring
services - September 30 (coincides with
deadline for delivery of services for non-recurring
charges)
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FCC Form 471
Filing Strategies
TOM TORLAKSON
State Superintendent
of Public Instruction
• Priority One Filing Strategies
– File questionable services on a separate Form
471.
• Priority Two Filing Strategies
– Create multiple Block 4s to identify different
groups of sites.
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86
FCC Form 471
Item 21 Attachments
TOM TORLAKSON
State Superintendent
of Public Instruction
– The description of services (including price)
associated with a funding request
– Avoid TMI Syndrome (Too Much Information)
– Can be submitted online, by fax, e-mail, or
on paper
– Attachment(s) are part of the FCC Form 471
and they must be submitted by the close of
the application filing window to ensure that
the FCC Form 471 is treated as on time
http://www.usac.org/sl/applicants/step04/item-21.aspx
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87
FCC Form 471
Item 21 Attachments
TOM TORLAKSON
State Superintendent
of Public Instruction
• Remove ineligible costs – be careful
– 30% rule –30% or more of funding request
dollar value cannot be for ineligible products
and services. the entire request may be
denied unless…
– Can be rectified during your PIA process:
Remove it-Split it up- separate FRN
• Work with service provider(s) to create
your Item 21 attachment(s)
Intermediate/Advanced Presentation I 2013 California Department of Education
88
FCC Form 471
DEADLY ERRORS
TOM TORLAKSON
State Superintendent
of Public Instruction
• DON’T file Priority One and Priority Two funding
requests on the same Form 471
• DON’T forget to wait at least 29 days after any
mandatory processes associated with your
competitive bidding before selecting a service
provider or signing any contracts
• DON’T submit your Form 471 BEFORE signing all
related contracts
• DON’T forget to CERTIFY your submitted
application (whether electronic or paper
certification)
• Item 21 must be submitted by close of Form
471 filing window
Intermediate/Advanced Presentation I 2013 California Department of Education
89
FCC Form 471
TOM TORLAKSON
State Superintendent
of Public Instruction
Receipt
Acknowledgement
Letter (RAL)
Intermediate/Advanced Presentation I 2013 California Department of Education
90
FCC Form 471
Receipt Acknowledgement Letter (RAL)
TOM TORLAKSON
State Superintendent
of Public Instruction
– A letter issued by USAC to the applicant and
the service provider that summarizes the
information provided in the FCC Form 471
– Many of the entries on the form can be
corrected after submission by using the RAL
– Ministerial and clerical errors can be
corrected until USAC issues the letter
containing USAC’s decisions on your
funding requests (FCDL)
– http://www.usac.org/sl/applicants/step02/clerical-errors.aspx
Intermediate/Advanced Presentation I 2013 California Department of Education
91
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Application Review
and FCDL
Intermediate/Advanced Presentation I 2013 California Department of Education
92
E-Rate Process
Technology Planning
TOM TORLAKSON
State Superintendent
of Public Instruction
FCC Form 470 & RNL
Competitive Bidding
FCC Form 471 & RAL
Application Review & FCDL
FCC Form 486
FCC Forms 472 (BEAR) & 474 (SPI)
Intermediate/Advanced Presentation I 2013 California Department of Education
93
Application Review
TOM TORLAKSON
State Superintendent
of Public Instruction
• You must answer all PIA reviewer questions;
• Ask for reviewer assistance/clarification if you don’t
understand what they are requesting from you.
• Share PIA reviewer letter with anyone/everyone
(your “E-rate support team”) who can
help/contribute to your responses.
• Send PIA letter to your “E-rate support team” and
or service provider as soon as you receive it, to
give them adequate time to gather data/information
in support of what you need to respond.
• Be responsive; establish a working relationship
with PIA reviewer.
• Request additional time from PIA if you need it!
Intermediate/Advanced Presentation I 2013 California Department of Education
94
Application Review
TOM TORLAKSON
State Superintendent
of Public Instruction
• If you cannot answer PIA reviewer’s
questions by deadline or you fail to respond
to all of the PIA reviewer’s questions:
– Your funding request amounts will be reduced
or Worst case:
– your funding requests will be denied.
Intermediate/Advanced Presentation I 2013 California Department of Education
95
FCDL
TOM TORLAKSON
State Superintendent
of Public Instruction
• Upon receipt of your FCDL, review for
details on approved or denied requests and
your next steps.
• FCDL is your “trigger” to file subsequent
forms both for USAC and Service Providers
• You have 60 days from FCDL date to
submit an appeal if you do not agree with
USAC’s funding decision(s).
• If you miss the 60 day window to appeal,
then SLD determination is final.
Intermediate/Advanced Presentation I 2013 California Department of Education
96
TOM TORLAKSON
Intermediate/Advanced
Presentation
State Superintendent
of Public Instruction
Children’s Internet Protection
Act (CIPA) & Protecting
Children in the 21st Century
Act
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97
CIPA Basics
• Children’s Internet Protection Act (“CIPA”) enacted in
December of 2000 – effective April 20, 2001
TOM TORLAKSON
State Superintendent
of Public Instruction
• CIPA requirements apply to ALL applicants that
receive funding in following categories of service:
• P1 - Internet Access
• P2 - Internal Connections
• P2 - Basic Maintenance of Internal Connections
• CIPA compliance is not required for applications for
P1 - Telecommunications Services and Voice Over
Internet Protocol (VoIP)
• First-time applicants (ONLY) may have up to two
additional years to come into compliance
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98
CIPA Compliance
Recap of continuing requirements
TOM TORLAKSON
State Superintendent
of Public Instruction
1. Internet safety policy
2. Technology protection measure (filter)
3. Public notice of – and public meeting or
hearing on – the Internet safety policy
For a detailed discussion of CIPA requirements:
Children’s Internet Protection Act website
guidance
Form 486 Instructions
Form 479 Instructions
Intermediate/Advanced Presentation I 2013 California Department of Education
99
Protecting Children in the 21st
Century Basics
• Erroneously referred to as CIPA
• Supplement to CIPA Policy
TOM TORLAKSON
State Superintendent
of Public Instruction
• Enacted in October of 2008 – effective July 1, 2012
• Requirements apply ONLY to school and school
district applicants that receive funding in following
categories of service:
• P1 - Internet Access
• P2 - Internal Connections
• P2 - Basic Maintenance of Internal Connections
• LIBRARIES – No new requirements. The above July 1,
2012 requirement does not apply to Libraries
• Requires applicants meet certain requirements
regarding education of minors and cyberbullying
awareness and response
Intermediate/Advanced Presentation I 2013 California Department of Education
100
Overview of Protecting Children in
the 21st Century Requirements
TOM TORLAKSON
State Superintendent
of Public Instruction
• Schools must educate minors about appropriate online
behavior, including interacting with other individuals on
social networking websites and in chat rooms
(education requirements apply only to minors and not
adults)
• Schools must promote cyberbullying awareness and
response
• Schools must update their Internet Safety Policies to
address these new requirements
• These activities must have been in place by July 1,
2012
Intermediate/Advanced Presentation I 2013 California Department of Education
101
Protecting Children in the 21st
Century Act
Additional Information on New Requirements
TOM TORLAKSON
State Superintendent
of Public Instruction
• “Social networking” and “cyberbullying” are not
defined, nor are specific procedures or curricula
detailed for schools to use in educating students
– Congress’ intent is that local authorities should make
decisions in this area.
– Resources are available to assist in this process if needed –
e.g., OnGuard Online.gov
– For more guidance, go to:
http://apps.fcc.gov/ecfs/document/view?id=7022052425
• Schools do not need to hold a new public meeting
or hearing about amendments adopted to meet
these requirements unless required to do so by
state or local rules.
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102
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
E-rate Gift Rules
Intermediate/Advanced Presentation I 2013 California Department of Education
103
E-rate Gift Rules
Rules codified in FY 2011 in 6th Report &
Order
TOM TORLAKSON
State Superintendent
of Public Instruction
• Receipt or solicitation 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 E-rate.
• Gift prohibitions are applicable year-round, not
just during the competitive bidding process.
• 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.
• Counted per funding year
Intermediate/Advanced Presentation I 2013 California Department of Education
104
E-rate Gift Rules
Gift Rule Exceptions
TOM TORLAKSON
State Superintendent
of Public Instruction
• “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.
Intermediate/Advanced Presentation I 2013 California Department of Education
105
Charitable Donations
Questionable Charitable Contributions
TOM TORLAKSON
State Superintendent
of Public Instruction
• 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
Intermediate/Advanced Presentation I 2013 California Department of Education
106
Prizes
TOM TORLAKSON
State Superintendent
of Public Instruction
Conferences and Training
Sessions
• 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
Intermediate/Advanced Presentation I 2013 California Department of Education
107
Conferences and Training
Sessions
Widely Attended Events
TOM TORLAKSON
State Superintendent
of Public Instruction
• “Widely attended events” are exempt from gift
rules. 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.
– Event is open to members from throughout the
interested industry or professional or those in
attendance represent a range of persons interested
in a given matter.
Intermediate/Advanced Presentation I 2013 California Department of Education
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TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Form 500
Intermediate/Advanced Presentation I 2013 California Department of Education
109
Form 500
TOM TORLAKSON
State Superintendent
of Public Instruction
To request adjustment to Funding
Commitment $ and/or modify Receipt of
Service Confirmation:
• To request one or more of the following
changes to a Funding Request Number
(FRN) to:
–
–
–
–
Change service start date on the FRN;
Change contract expiration date on the FRN;
Reduce funding amount on the FRN;
Cancel the FRN
• NOTE: Once you submit a Form 500 to
reduce or cancel the funding amount, it is
irreversible.
Intermediate/Advanced Presentation I 2013 California Department of Education
110
Intermediate/Advanced
TOM TORLAKSON
State Superintendent
of Public Instruction
Service
Substitutions
Intermediate/Advanced Presentation I 2013 California Department of Education
111
Service Substitutions
To request change in products and/or
services specified in Form 471
TOM TORLAKSON
State Superintendent
of Public Instruction
Substitution of a service or product must meet the
following conditions:
• Substituted services or products have same functionality
as services or products contained in original proposal.
• Substitution does not violate any contract provisions or
state or local procurement laws.
• Substitution does not result in an increase in percentage
of ineligible services or functions.
• Requested change is within the scope of controlling FCC
Form 470, including any Requests for Proposal, for the
original service.
For details: http://www.usac.org/sl/applicants/before-youredone/service-substitutions.aspx
Intermediate/Advanced Presentation I 2013 California Department of Education
112
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
SPIN Changes
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113
SPIN Changes
SPIN changes: Operational vs. Corrective
• Pre-commitment SPIN changes:
TOM TORLAKSON
State Superintendent
of Public Instruction
– Corrective SPIN changes only (i.e., data entry
errors).
• Post-commitment SPIN changes: (as referenced
previously in this presentation) 6th Report & Order
restricted Operational SPIN changes as follows:
– Operational SPIN changes must have legitimate
reason to change, such as breach of contract or
provider unable to perform, and
– must select provider with the next highest point
value in evaluation.
For more details:
http://www.usac.org/sl/applicants/before-youredone/spin-changes/default.aspx
Intermediate/Advanced Presentation I 2013 California Department of Education
114
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Audits
Intermediate/Advanced Presentation I 2013 California Department of Education
115
Audits
Purpose of E-rate audits
TOM TORLAKSON
State Superintendent
of Public Instruction
• Primary purposes of audits: to ensure
compliance with FCC rules and program
requirements and to assist in prevention
and detection of waste, fraud, & abuse
• If you cannot prove that you followed the
rules, then it will be assumed that you DID
NOT follow the rules.
• The consequences of negative findings
by an auditor can mean payback by the
School/District/Library of E-rate
monies… or worse.
Intermediate/Advanced Presentation I 2013 California Department of Education
116
EXPECT TO BE AUDITED
TOM TORLAKSON
State Superintendent
of Public Instruction
Audits
• Various types of E-rate Audits:
– BCAP- conducted to determine
compliance with FCC & program rules,
such as Eligibility, Competitive bidding,
CIPA, etc.
• Audit takes several weeks, site visits
typically last 3-5 days
– PQA – Payment Quality Assessment
assesses the rate of improper E-rate
disbursements
• Assessment, not an audit. Similar to a
condensed desk audit with no site visits
Intermediate/Advanced Presentation I 2013 California Department of Education
117
Always Be Prepared for Audits
Document Retention Requirements
• Keep for 5 years after last date of service
TOM TORLAKSON
State Superintendent
of Public Instruction
– Be aware of contract dates and extensions
– All USAC correspondence, including Quarterly
Disbursement Reports
• Make sure all departments understand
document retention requirements for E-rate
– E.g., food services data, surveys, etc., in
support of NSLP participation
• Align Board policies with E-rate requirements
• Per 5th Report and Order: if applicant can’t
prove compliance with rules through
documentation, they must assume that you
didn’t follow the rules
• No documentation = Recovery of Funds
(Applicant may have to pay back USAC for Erate monies they already received)
Intermediate/Advanced Presentation I 2013 California Department of Education
118
PREPARING FOR AUDITS
Audits
1. Plan ahead for an audit or review by
documenting every step of the process as the
work is done.
TOM TORLAKSON
State Superintendent
of Public Instruction
e.g., document how you conducted competitive bidding;
save copies of any RFPs issued in conjunction with
any Form 470s, save copies of your bid evaluation
matrix and scoring of bidders, etc.
2. Create and maintain ORGANIZED E-rate binders
for EACH funding year
• Retain ALL E-rate related documents
• Contact service providers for assistance when
appropriate
• USAC Documentation Checklists for PQA’s and
BCAP audits
BCAP: http://www.usac.org/sl/about/programintegrity/bcap.aspx
PQA:http://www.usac.org/_res/documents/sl/pdf/aud
it/SL-Documents.pdf
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119
Other Levels of Scrutiny
•H.A.T.S Visits
Audits
•Helping Applicants To Succeed
TOM TORLAKSON
State Superintendent
of Public Instruction
• Primarily for applicants that have had
funding issues in the past
• Welcome the help…do not be afraid
• Special Compliance Reviews
• Typically during PIA
• Item 25 Selective Review
• Cost Effectiveness Review
• CIPA Compliance and Competitive
Bidding Selective Reviews
Intermediate/Advanced Presentation I 2013 California Department of Education
120
Avoid the Dirty Dozen Mistakes
Overview
1. Submitting paper forms
containing errors
2. Missing deadlines
3. Not following competitive
bidding rules
4. Not communicating with
service providers after the
competitive bidding process
5. Mixed bucket funding
requests
6. Incorrect discount calculations
7. Incomplete PIA responses
8. Missing or incomplete
Item 21 attachments
9. Ignoring USAC letters
10. Poor invoicing practices
11. Inadequate document
retention
12. Not managing your E-rate
process
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121
Paper Forms
Submitting paper forms containing errors
We suggest that you file your FCC forms electronically. If you file
on paper, complete every field in FCC Forms and check for
accuracy before submitting. Otherwise:
• The Client Service Bureau (CSB) must first contact you and ask
for corrections. If you didn’t include identifying information on
your paper form, CSB may not be able to reach you.
• Your FCC Form 470 may not be posted by the deadline.
(Forms filed online are posted immediately.)
• Paper invoice forms (FCC Forms 472 and 474) with incomplete
information may be rejected upfront (“pass zero”).
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Paper Forms
Unsigned, undated FCC Form 486 paper certification
Avoid the Dirty Dozen Mistakes I 2013 Schools and Libraries Fall Applicant Trainings
123
Paper Forms
FCC Form 472 – applicant
FCC Form 472 – service
certification page 3 signed by provider certification page 4
applicant
signed by same applicant
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124
Paper Forms
Submitting paper forms containing errors
To avoid delays and/or denials:
• File online if possible.
• Check your work for accuracy.
• Refer to the source documents that contain the correct
information (e.g., Funding Commitment Decision Letter, FCC
Form 486 Notification Letter) when you work on your forms.
• Ask CSB for help if you need it.
– Submit a Question or call (888) 203-8100
Avoid the Dirty Dozen Mistakes I 2013 Schools and Libraries Fall Applicant Trainings
125
Deadlines
Missing deadlines
Many FCC forms and requests are subject to deadlines. Missing a
deadline can have negative consequences, including:
• An FCC Form 471 submitted after the close of the filing window
will not be considered for funding.
• An FCC Form 486 submitted after the deadline will have its
service start date adjusted to the date 120 days before receipt or
postmark of the form. Invoices for services delivered before the
adjusted service start date will not be paid.
• An appeal submitted after the 60-day deadline will be dismissed.
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126
Deadlines
Missing deadlines
Common problems (cont.)
• A service delivery deadline extension requests submitted after the
last day to receive services will be rejected.
• An invoice submitted after the invoice deadline will be rejected.
To resubmit, an invoice deadline extension request must first be
submitted to USAC and approved.
• Ministerial or clerical error corrections submitted after the FCDL is
issued will not be made by PIA.
• PIA questions that are not answered result in a decision based on
the information at hand, which may lead to a reduction or a
denial.
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E-rate Program
Avoid the Dirty Dozen Mistakes
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Competitive Bidding
Not Following Competitive Bidding Rules
Posting an FCC Form 470 opens a competitive bidding process
governed by program rules. Any of the following violations of
those rules can lead to funding denials:
• Not waiting 28 days after posting an FCC Form 470 to the USAC
website or after issuing a Request for Proposal (RFP) –
whichever is later – before closing your competitive bidding
process, selecting a service provider, signing a contract, and
filing an FCC Form 471.
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Competitive Bidding
Not Following Competitive Bidding Rules
Common problems (cont.):
• Stating on the FCC Form 470 that you have not issued or do not
intend to issue an RFP or similar document describing the
desired services or procurement process, when in fact you
have or later do issue an RFP or similar document.
• Neglecting to conduct a bid evaluation.
• Not considering the price of the eligible products and services
as the most heavily weighted factor in your bid evaluation.
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Competitive Bidding
Not Following Competitive Bidding Rules
Common problems (cont.)
• Neglecting to evaluate all comparable options on a state
master contract, using the same criteria you would use to
evaluate bids received in response to your own FCC Form 470.
• Accepting assistance with your competitive bidding process
from a service provider.
• Having improper communications with the selected service
provider or accepting prohibited gifts from the selected
service provider prior to or during the competitive bidding
process.
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Competitive Bidding
Not Following Competitive Bidding Rules
To avoid delays and/or denials:
• Review the competitive bidding and bid evaluation guidance
and related documents on the USAC website and follow them.
• Make sure your competitive bidding process is open and fair.
• Ask CSB for help if you need it.
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Service Providers
Lack of Communication with the Service Provider
Communication with the service provider AFTER the competitive
bidding process is over is an important part of the application
process. Lack of communication can result in:
• Contractual disputes where no program rules were violated –
USAC’s ability to provide assistance is extremely limited in
these circumstances.
• Incorrect SPINs featured on FCC Form 471 funding requests.
• Service providers not prepared to assist applicants with
technical information requested during PIA review.
• Ineligible products and/or services delivered.
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Service Providers
Lack of Communication with the Service Provider
Common problems (cont.)
• Invoicing issues, for example:
– Confusion about invoicing method (BEAR vs. SPI).
– Services that must be invoiced under separate FRNs or
separate SPINs.
– BEAR reimbursements sent to the wrong address or entity.
– Services delivered before the service start date that are
ineligible for discounts because of timing.
– Invoicing for products/services that, while eligible, were
not approved as part of a funding request.
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Service Providers
Lack of Communication with the Service Provider
To avoid delays and/or denials:
• Use the Search for SPIN Information tool to find your service
provider E-rate Program contact information if you do not know it.
• Review your contract and related documents BEFORE signing
them.
• Verify with the service provider how many funding requests to file
and which SPINs and costs to feature on each one.
• Discuss service delivery, services, invoicing and other program
issues with your service provider(s) EARLY in the process but NOT
before the competitive bidding process has ended.
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Mixed Bucket Funding Requests
Mixed Bucket Funding Requests
Mixing Priority 1 (Telecommunications Services and Internet
Access) and Priority 2 (Internal Connections and Basic
Maintenance) on the same funding request or the same
application causes delays.
• Mixed bucket funding requests filed as Priority 1 must be
separated out by your PIA reviewer, and you will be asked to
confirm the separation.
• Mixed bucket funding requests filed as Priority 2 may not be
reviewed until Priority 2 reviews start.
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Mixed Bucket Funding Requests
Mixed Bucket Funding Requests
To avoid delays and/or denials:
• Review the Eligible Services List for the appropriate funding
year to understand which products and services fall under
Priority 1 and which fall under Priority 2.
• If your Priority 1 request contains leased equipment, also
review the On-Premise Priority 1 Equipment guidance to verify
that it is eligible under Priority 1.
• Check your FCC Form 471 and Item 21 attachment for accuracy.
• Ask CSB for help if you need it.
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Discount Calculations
Incorrect Discount Calculations
PIA reviews discount calculations and information carefully. Poor
documentation and incorrect or outdated data can delay funding
decisions. Here are some of the most common problems:
• If the discount for an entity has increased from the previous
year, not providing National School Lunch Program (NSLP) or
other discount validation documentation up front.
• Providing discount data from a previous funding year to
substantiate the current year’s discount calculation (unless
program guidance allows for this, e.g., survey data used for
two consecutive funding years).
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Discounts
Incorrect Discount Calculations
Problems with applicants not using NSLP data to calculate their
discounts:
• Using NSLP forms as surveys.
• Not keeping copies of surveys.
• Projecting discounts from surveys with a return rate below 50%.
• Using Community Eligibility Option (CEO) data to validate the
reported discount.
– NOTE: CEO schools use NSLP data from the year before they
started participation in CEO. The FCC has not indicated whether
it will provide a waiver for FY2014 applications to use old data.
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Discounts
Incorrect Discount Calculations
To avoid delays and/or denials:
• Read the Calculating Discounts guidance to understand how
discounts are calculated and what documentation you need.
• Review and follow the Alternative Discount Mechanisms
guidance if you are not using NSLP data.
• Maintain your discount calculation source documentation –
e.g., NSLP data, surveys, list of matching siblings, direct
certification list – for each year it affects so that you can
produce it if requested.
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Responses to PIA
Incomplete Responses to PIA
Program Integrity Assurance (PIA) reviews applications for
compliance with program rules. If PIA emails or faxes questions
but receives incomplete responses, or no response, the funding
decision is based on the information at hand. Incomplete
responses include:
• A response that does not directly address the PIA questions.
• A response that addresses some but not all of the PIA
questions.
• A response that does not include documentation when
documentation was specifically requested.
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Responses to PIA
Insufficient Response
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Responses to PIA
Insufficient Response
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Responses to PIA
Incomplete Responses to PIA
To avoid delays and/or denials:
• If PIA emails or faxes questions to you, read them carefully.
– If you understand the questions and the documentation
requested, respond promptly.
– If you do not understand what is being requested, contact the
initial reviewer immediately for clarification and document such
contact.
• If you need more time, ask for it.
• If you feel you are not communicating successfully with your
initial reviewer, ask to speak to a manager.
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Item 21 Attachments
Missing or Incomplete Item 21 Attachments
The Item 21 attachment is a detailed description of the services
in each funding request and an FCC Form 471 will be considered
incomplete until the Item 21 attachment is submitted. PIA uses
this information in its review. Common problems include:
• Missing Item 21 attachments. If an Item 21 attachment is not
submitted by the deadline, the associated funding request will
be denied.
• Incomplete information. PIA will reach out for additional
information or clarification if needed. Without this
information, PIA must make its funding decision based on the
information provided.
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Item 21 Attachments
Item 21 Attachment Missing Information
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Item 21 Attachments
Item 21 Attachment with No Identifying Information
(FCC Form 471 application number, FRN, BEN, etc.)
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Item 21 Attachments
Missing or Incomplete Item 21 Attachments
To avoid delays and/or denials:
• Read and carefully follow the Item 21 Attachment guidance.
• Identify your work – contact information, FRN, etc.
• Check your work for completeness and accuracy.
• File online if possible.
• File early.
• If you file by email, fax, or on paper, include all the Item 21
attachments for a single FCC Form 471 in one clearly labeled
submission. USAC stores these by form number, not by FRN.
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USAC Letters
USAC Receipt Acknowledgment and Notification Letters
Each time you file an FCC form, USAC issues a letter containing
useful information. You should review the contents of the letter
carefully. If you don’t:
• You may miss errors that could be corrected by using the
procedure described in the letter.
• You may not be aware of the next steps in the process,
including upcoming deadlines.
• The processing of your next program form may be delayed if
you do not refer to the information in the current letter when
completing that next form.
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USAC Letters
FCDL Next Steps
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USAC Letters
Ignoring USAC letters
To avoid delays and/or denials:
• Review the funding report in the Receipt Notification Letter
and Receipt Acknowledgment Letter for ministerial or clerical
errors you can correct.
• Take note of the next steps and any deadlines described in the
letter and be prepared to act on them.
• Note any changes from your original submission (e.g., an
adjusted service start date in the FCC Form 486 Notification
Letter) and take action as appropriate.
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USAC Letters
Adjusted Service Start Date
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Invoicing
Poor Invoicing Practices
USAC must be invoiced – either through the applicant FCC Form
472 (BEAR Form) or service provider FCC Form 474 (SPI Form) –
for discounts on services actually delivered and installed. Delays
or denials can occur if:
• Invoices are filed after the invoicing deadline.
• Invoice-related forms are not filed first (FCC Form 473 for
service providers, FCC Form 486 for applicants).
• Invoice entries are incomplete or inconsistent.
• If the invoice undergoes review, requested documentation
(e.g., proof of payment, copy of contract) is unavailable.
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Invoicing
Poor Invoicing Practices
To avoid delays and/or denials:
• Review and follow the Invoicing guidance, the FCC Form 472
instructions, and (for service providers) the FCC Form 474
instructions to avoid common mistakes.
• Check your work.
• Submit invoices in a timely fashion. (Note that applicants can
file BEAR Forms monthly or quarterly if they want to.)
• Maintain and/or be able to produce backup documentation
for invoices (e.g., proof of delivery of services, contracts
stipulating specific payment arrangements).
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Document Retention
Inadequate Document Retention
The E-rate Program has stringent document retention
requirements. Failure to retain documents for the required time
period (at least five years from the last date of service delivery)
can result in:
• Funding reduction or denial after PIA review.
• Adjusted service start date.
• Invoice rejection.
• Audit findings.
• Commitment adjustment (COMAD).
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Document Retention
Response to Additional Selective Review Question
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Document Retention
Inadequate Document Retention
To avoid delays and/or denials:
• Review the E-rate Binder guidance for a suggested checklist of
documents to retain and how to organize them.
• Store your documents in such a way that you – or your successor
– can find them easily if needed.
• Remember that even if your local or state regulations require a
shorter time period for document retention, you must follow the
FCC program rule for documents related to the E-rate Program.
• Keep in mind that some documents (e.g., multi-year contracts,
notice of public hearing or meeting for CIPA) must be kept for five
years after the latest funding year they affect.
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Managing the Process
Managing Your E-rate Program Process
Applicants are often surprised by parts of the process, such as
required forms or requests, looming deadlines, or requests for
supporting documentation. Not being prepared can lead to:
• Incorrectly filed forms or requests due to unexpected and
impending deadlines.
• Denials or reductions in funding due to the inability to
support requests.
• Inability to provide documentation for audits, especially when
the responsible staff member is no longer there.
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Managing the Process
Managing Your E-rate Program Process
To avoid delays and/or denials:
• Stay informed.
– Review the guidance information on the USAC website.
– Subscribe to the SL News Brief.
• Plan ahead.
– Create a timeline of your E-rate Program activities and
follow it.
– Submit required forms and requests well before the
deadline.
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Managing the Process
Managing Your E-rate Program Process
To avoid delays and/or denials (cont.):
• Track your submissions.
– Call CSB for the status of paper form data entry.
– Familiarize yourself with the tools on the Search Tools page
to verify postings and certifications, and to track the
progress of reviews and requests.
• If you need it, request an extension before the deadline.
• Ask questions.
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Questions?
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TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
State Master
Contract
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162
State Master Contracts
What is it?
TOM TORLAKSON
State Superintendent
of Public Instruction
• A contract that is competitively bid and put
in place by a state government entity for
use by others.
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163
State Master Contracts
If the State files a Form 470
TOM TORLAKSON
State Superintendent
of Public Instruction
• The applicant may cite the state's Form 470 on its Form
471. The state must follow a competitive bidding process
pursuant to FCC requirements and state procurement
law.
• The applicant is required to follow the applicable
provisions of the state master contract and state and local
procurement laws. No separate bidding documents or
contracts are required by the applicant citing the state's
Form 470, other than what is required by the state master
contract and state and local procurement laws. The
signed state master contract between the state and the
service provider meets the FCC signed contract
requirement.
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164
State Master Contracts
Multiple Awards Schedule
TOM TORLAKSON
State Superintendent
of Public Instruction
• Applicant must conduct a “mini-bid” process for all
venders able to provider services under the
contract.
– Determine factors to be used in evaluation
– Score venders appropriately
– Select most cost effective
• The applicant does not need to post an FCC Form
470 to conduct a mini-bid.
• The applicant does not need to conduct a mini-bid if
only one vendor is able to provide service.
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165
State Master Contracts
TOM TORLAKSON
State Superintendent
of Public Instruction
Determine if the State Form 470 meets your
needs. If not, file your own Form 470
• The applicant must follow a competitive bidding process
pursuant to FCC requirements and state and local
procurement law.
• If the applicant selects the state master contract as the
most cost-effective alternative, the applicant is required to
follow the applicable provisions of the state master
contract, state contract law, and state and local
procurement laws. The signed state master contract
between the state and the service provider meets the
FCC signed contract requirement.
• The applicant cites its own FCC Form 470 on its FCC
Form 471
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166
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
CALNET 2
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167
CALNET 2 Expiration
TOM TORLAKSON
State Superintendent
of Public Instruction
CALNET 2 expires January 29, 2014
 Expiration falls mid-way through E-rate Funding
Year 2013
 No extensions will occur
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168
REMINDER – If your School or
Library is currently on CALNET 2
contract, then:
TOM TORLAKSON
State Superintendent
of Public Instruction
• Follow CDE guidance provided via email dated
9/18/2012, excerpted here:
• “….two possible strategies to consider:
– …Each district and library posts its own Form
470 and conducts a competitive bidding
process compliant with state and federal
rules….
– Use the state Form 470 that was or will be
posted and follow the guidelines set forth by
USAC for a State Replacement Contract…”
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169
If you are on CALNET 2, then what
else can you do to prepare for Year
2014/15?
TOM TORLAKSON
State Superintendent
of Public Instruction
• CALNET 3 Modules 1-6 were awarded on
11/15/13. Coming Soon - More details
• Subscribe to CDE LIST SERV by submitting a
blank e-mail to join-cde-e-rate@mlist.cde.ca.gov
• Read and understand additional guidance as it is
released.
• Additional guidance to be provided when it’s
available
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170
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
Appendices
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171
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
California
Teleconnect Fund
(CTF)
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172
California Teleconnect Fund
Overview
TOM TORLAKSON
State Superintendent
of Public Instruction
• The California Public Utilities Commission (CPUC)
established the California Teleconnect Fund (CTF) in
1996 and is solely funded through an all end-user
surcharge placed on all intrastate telecommunications
services in California.
• The CTF program 50% discount on selected
telecommunications services to qualifying K-12 schools,
community colleges, libraries, government-owned and
operated hospitals and health clinics, non-profit
community based organizations, California Telehealth
Network Consortium.
• Program website:
http://www.cpuc.ca.gov/PUC/Telco/Public+Programs/CTF/
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173
Who is Eligible for CTF?
TOM TORLAKSON
State Superintendent
of Public Instruction
• Schools: Public or nonprofit private schools
that provide elementary or secondary
education and that have endowments under
$50 million.
• Libraries: Libraries eligible to participate in
state-based plans for funds under Title III of
the Library Services and Technology Act.
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174
Who is Eligible for CTF (continued)
TOM TORLAKSON
State Superintendent
of Public Instruction
– Hospitals and health clinics that are owned and
operated by a municipal, county government, or a
hospital district.
• Community based organizations (CBOs):
o must be a tax-exempt organization as described
in Section 501 (c)(3) or 501 (d) of the Internal
Revenue Code, Title 26 of the United States
Code and must also have a Form 990.
o Second, they must offer health care, job training,
job placement, 2-1-1 referral services and
information (approved by the Commission),
educational instruction, or a community
technology program offering access to and
training in the Internet and other technologies.
• California Community Colleges
• California Telehealth Network Consortium
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175
TOM TORLAKSON
State Superintendent
of Public Instruction
Qualified organizations may receive 50% discount
on the following telecommunications services
• Measured Business service
• Centrex, PBX Trunks
• ISDN service
• DS1 service
• DS3 service
• Up to and including OC-192 services, or their
functional equivalents
• Internet access services, with certain exceptions,
as defined under the FCC’s website
• Multi-Protocol Label Switching
o Service Providers may use different terminology to “name” their
CTF-eligible services. Contact the applicable Service Provider for
more details which billing components and named services are
eligible for CTF discounts.
o Not all billing elements associated with the above named services
may be eligible for CTF discounts, e.g., usage is not eligible, federal
taxes and surcharges not eligible, etc.
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176
Internet Services eligible for CTF, Effective
12/1/2008:
TOM TORLAKSON
State Superintendent
of Public Instruction
• The definition of Internet Access is the same as
that used by the FCC.
• Internet definition can be found @
http://fjallfoss.fcc.gov/edocs_public/attachmatch/FCC-08-265A2.pdf
• Eligible Internet Services include:
o landline; and
o satellite/wireless Internet access, including cellular
data plans and laptop cards
o Service Providers may use different terminology to “name” their
CTF-eligible services. Contact the applicable Service Provider for
more details which billing components and named services are
eligible for CTF discounts.
o Not all billing elements associated with the above named services
may be eligible for CTF discounts.
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177
SB1102 IMPACT ON PARTICIPATING SCHOOLS
AND LIBRARIES
TOM TORLAKSON
State Superintendent
of Public Instruction
• CTF service providers are required to apply
the California statewide average E-rate
percentage before calculating the CTF
discount (this calculation only reduces
customer’s eligible dollar amount
considered for CTF discounts; it does not
provide the customer an E-rate discount)
on eligible services, where applicable.
• “NEW “ (effective 7/1/12)….Community
based organizations (CBOs) that offer Head
Start programs will see CTF discounts
stacked, just as with schools and libraries
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178
Services that are Ineligible for E-rate, but eligible
for CTF
TOM TORLAKSON
State Superintendent
of Public Instruction
• If an applicant is a public or private school or public library,
eligible to receive E-rate discounts, but subscribe to
telecommunications services that are ineligible E-rate
discounts, those services will not be affected by SB1102.
• CTF applicant is required to provide documentation to their
carrier identifying each CTF service/circuit ID and the reason
why they are ineligible for E-rate discounts.
• Contact your carrier to inquire what paperwork they require to
accommodate for these situations.
• E.g., currently, data plans for wireless are only eligible for Erate if used on campus. Off campus usage is not currently
eligible. If school or library is not applying for E-rate for the
data plans or is cost allocating only for a portion of the off
campus usage & is applying for CTF for the card, customer
must submit CTF Eligible/E-rate Ineligible Services form
(annually) to receive 50% discount CTF discounts without
stacking.
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179
CTF Proposed Changes to be released soon
TOM TORLAKSON
State Superintendent
of Public Instruction
• CTF Proposed Changes to be released on
December 31, 2013.
• Reply comments due by February 14, 2014.
• Proposed changes to be primarily focused
on CBOs.
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180
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Presentation
Alternative Discount
Mechanisms
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181
Alternative Discount Mechanisms
Alternative Discount Mechanisms
TOM TORLAKSON
State Superintendent
of Public Instruction
• NSLP eligibility based on student’s family
being at or below 185% of federal poverty
levels
• Income Eligibility Guidelines (IEG)
published annually by U.S. Department of
Agriculture
• Other alternative discount methodologies
seek to determine if a student meets the
NSLP IEG threshold
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182
Alternative Discount Mechanisms
Acceptable Mechanisms
• Programs that meet the IEG threshold for the NSLP:
TOM TORLAKSON
State Superintendent
of Public Instruction
–
–
–
–
–
–
Medicaid
Food stamps (SNAP)
Supplementary Security Income (SSI)
Section 8 Housing Assistance
Low Income Home Energy Assistance Program (LIHEAP)
Food Distribution Program on Indian Reservations
Unacceptable Mechanisms
• Programs that do not meet the IEG threshold for the NSLP:
– Temporary Aid to Needy Families (TANF)
– Title 1
– Scholarship programs
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183
Alternative Discount
Mechanisms
Sibling Match
TOM TORLAKSON
State Superintendent
of Public Instruction
• If school can establish that one sibling in a
family is eligible for NSLP, then it can count
the other siblings in the same family as
eligible for NSLP even if the other siblings
do not participate.
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184
Alternative Discount Methods
Surveys
TOM TORLAKSON
State Superintendent
of Public Instruction
• Must be sent to all families whose children
attend the school
• Surveys must contain at least student and
family name, size of family, income level of
family or acceptable alternative mechanism
• Surveys are valid for two years
• NSLP application forms are never an
acceptable survey instrument
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185
Alternative Discount Methods
Survey Extrapolation
TOM TORLAKSON
State Superintendent
of Public Instruction
• If a survey is sent to all households of its students,
and
• If at least 50% of surveys are returned
• School may extrapolate the data to 100% of its
students
• Example:
– 100 families received the survey; 75 returned
them
– 25 of the 75 families are eligible for NSLP
– 25/75 = 0.33
– School can report 33% of all students are eligible
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186
Alternative Discount Methods
Combining Alternative Discount Methods
TOM TORLAKSON
State Superintendent
of Public Instruction
• Ensure that the same students are not
double counted.
• Surveys cannot be combined with other
alternative discount methods if you have
extrapolated
• Provisions 1-4 cannot be combined with
other alternative discount methods since
they include extrapolation
• Keep detailed records to show that the
same students were not double counted
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187
Alternative Discount Methods
Ineligible Discount Calculation Methods
TOM TORLAKSON
State Superintendent
of Public Instruction
• Feeder School Method
– Extrapolating from elementary to
secondary schools
• Principal’s Survey/Estimate
– Based on administrators’ knowledge of
some of their students
• Title I eligibility
• Neighborhood poverty measurements
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188
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Dark Fiber
Intermediate/Advanced Presentation I 2013 California Department of Education
189
Dark Fiber
Leased Dark Fiber as Priority One
TOM TORLAKSON
State Superintendent
of Public Instruction
• Leased dark fiber added as
Telecommunications starting with the FY2011
Eligible Services List
• Allows for lease of dark fiber as a Priority One
service, from any Service Provider
• On the FCC Form 470, file for either Telecom or
Internet Access (per ESL)
• On the FCC Form 471, select Telecom box if
dark fiber is provided by a Telecom carrier
– If dark fiber is not provided by Telecom
carrier, select Internet Access box
Intermediate/Advanced Presentation I 2013 California Department of Education
190
Dark Fiber
Leased Dark Fiber as Priority One
TOM TORLAKSON
State Superintendent
of Public Instruction
• Installation costs to hook up the dark
fiber is eligible from the eligible entity
to the property line
Intermediate/Advanced Presentation I 2013 California Department of Education
191
Dark Fiber
Dark Fiber as Priority One
TOM TORLAKSON
State Superintendent
of Public Instruction
• Special Construction charges to build out
connections from applicants’ facilities to an
off-premise fiber network are NOT eligible
Intermediate/Advanced Presentation I 2013 California Department of Education
192
Dark Fiber
Dark Fiber as Priority Two
TOM TORLAKSON
State Superintendent
of Public Instruction
• Installation and Fiber costs between two
eligible buildings, not crossing a public right
of way are considered Internal Connections
Intermediate/Advanced Presentation I 2013 California Department of Education
193
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Interconnected VoIP
(Hosted; Priority 1)
Intermediate/Advanced Presentation I 2013 California Department of Education
194
Interconnected VoIP
TOM TORLAKSON
State Superintendent
of Public Instruction
• Priority One Services
– May be applied for in either
Telecommunications or Internet
Access on Form 470.
– USAC highly recommends posting in
both Telecom and Internet Access.
Intermediate/Advanced Presentation I 2013 California Department of Education
195
Interconnected VoIP
(aka Hosted VoIP)
TOM TORLAKSON
State Superintendent
of Public Instruction
196
•
Defined as a service that
1. Enables real-time, two-way voice
communications.
2. Requires a broadband connection from the
user’s location.
3. Requires Internet protocol-compatible
customer premises equipment (CPE).
4. Permits users generally to receive calls that
originate on the public switched telephone
network and to terminate calls to the public
switched telephone network.
Intermediate/Advanced Presentation I 2013 California Department of Education
196
Interconnected VoIP
• Leased VoIP or PBX equipment are NOT eligible for Priority
One funding.
TOM TORLAKSON
State Superintendent
of Public Instruction
197
• By removing the VoIP or PBX equipment, the local voice
network will cease to function. This equipment is eligible
ONLY as Internal Connections.
Intermediate/Advanced Presentation I 2013 California Department of Education
197
Interconnected VoIP
TOM TORLAKSON
• A gateway may be leased with eligible Priority One VoIP
service.
• A gateway is considered a single basic terminating device.
State Superintendent
of Public Instruction
198
Intermediate/Advanced Presentation I 2013 California Department of Education
198
Interconnected VoIP
TOM TORLAKSON
State Superintendent
of Public Instruction
199
• A multipurpose leased router may be eligible for
Priority One funding if, as seen in this example,
the internal data and voice network functions
without dependence on the leased router.
Intermediate/Advanced Presentation I 2013 California Department of Education
199
Information to provide
VOIP Vendors
TOM TORLAKSON
State Superintendent
of Public Instruction
200
1. What telephone/PBX solution is currently in place?
2. How many total VoIP or phone set users?
3. Any additional Voicemail Boxes for those that will not have a phone?
4. Do you need additional cabling drops to connect the phones to? Or,
do you already have network drops everywhere you want a phone?
5. Is a telephone number required for every handset?
6. Do you need to integrate with an existing paging system?
7. What does your current switching infrastructure look like?
a. Are they POE? b. Do they support VLAN?
8. What does your current WAN look like? (Total Sites and
Connectivity)
9. What is your current Internet Bandwidth?
10. Are you required to purchase your voice, video, distance learning
solution through an existing state or local contract? If so, what is the
name of the contract you are required to use?
Intermediate/Advanced Presentation I 2013 California Department of Education
200
Intermediate/Advanced
TOM TORLAKSON
State Superintendent
of Public Instruction
Equipment
Transfers, Disposal
and Trade-in
Intermediate/Advanced Presentation I 2013 California Department of Education
201
Equipment Transfers
Equipment Transfer Rules
TOM TORLAKSON
State Superintendent
of Public Instruction
• 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 date of purchase,
unless the eligible entity is permanently or
temporarily closing
Intermediate/Advanced Presentation I 2013 California Department of Education
202
Equipment Transfers
Equipment transfers less than 3 years
TOM TORLAKSON
State Superintendent
of Public Instruction
• Notify USAC
• Both the closing entity and the recipient
must retain records of the transaction
– Include the reason for the transfer
• Records must be kept for five years after
the date of the transfer
• Records for equipment >3 years follow the
traditional document retention requirements
Intermediate/Advanced Presentation I 2013 California Department of Education
203
Disposal of Equipment Rules
Disposal of Equipment Rules
TOM TORLAKSON
State Superintendent
of Public Instruction
• 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
Intermediate/Advanced Presentation I 2013 California Department of Education
204
Trade-ins and Exchanges
Trade-ins and Exchanges
TOM TORLAKSON
State Superintendent
of Public Instruction
• 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
Intermediate/Advanced Presentation I 2013 California Department of Education
205
TOM TORLAKSON
State Superintendent
of Public Instruction
Intermediate/Advanced
Miscellaneous
Intermediate/Advanced Presentation I 2013 California Department of Education
206
Miscellaneous
Miscellaneous Charges
TOM TORLAKSON
State Superintendent
of Public Instruction
• Miscellaneous charges can apply to all
service categories and are funded in the
same category of the service they are
supporting
• Training is eligible when included as part of
the contract and performed coincidently with
the installation of the new service/product or
in a reasonable time thereafter
– Training for end-users or professional
development is not eligible
Intermediate/Advanced Presentation I 2013 California Department of Education
207
Miscellaneous
Miscellaneous Charges
TOM TORLAKSON
State Superintendent
of Public Instruction
• Taxes, surcharges and other similar
reasonable charges are eligible for
discount. This includes but is not limited to :
– Universal service fund
– Excise Tax
– 911
– Local Number Portability and
– Telephone relay service
Intermediate/Advanced Presentation I 2013 California Department of Education
208
Miscellaneous
Miscellaneous Charges
TOM TORLAKSON
State Superintendent
of Public Instruction
• Other charges that are not eligible include
but are not limited to:
– Universal service administration fee
– Interest or finance charges
– Late payment fees and
– Termination fees
– See Appendix for additional Eligible
Service Items
Intermediate/Advanced Presentation I 2013 California Department of Education
209
E-rate Applicants Reminders
TOM TORLAKSON
State Superintendent
of Public Instruction
1. Post Form 470(s) by February 1, 2014 (at the very
latest!)* If you wait until after this date, you will
have to do everything that needs to be done at the
last minute, if you can even get all E-rate related
tasks accomplished so close to the application
deadline.
2. Submit Form 471 application(s) by March 1,
2014!** If you wait until this date or later, you run
the risk of not getting all E-rate related tasks
accomplished in time.
3. Make sure you submit all Item 21 Attachments by
the Form 471 deadline date!
*Form 470 filing deadline is Feb 26, 2014
**Form 471/Item 21s filing deadline is March 26, 2014
Intermediate/Advanced Presentation I 2013 California Department of Education
210
Who to Contact?
TOM TORLAKSON
State Superintendent
of Public Instruction
• State Library: Rushton Brandis,
(916) 653-5471
rushton.brandis@library.ca.gov
• CDE/E-rate: Larry Hiuga,
(916) 327-4629
E-rate@cde.ca.gov
• CDE/EETT: Tech Plans: Doris Stephen,
916-324-9943
dstephen@cde.ca.gov
• K-12 HSN/Butte COE: Russ Selken
530-532-5678
rselken@bcoe.org
Intermediate/Advanced Presentation I 2013 California Department of Education
211
How to join the CDE E-rate listserv
TOM TORLAKSON
State Superintendent
of Public Instruction
• Join the E-rate e-mail list to receive
updates about E-rate and the CTF
programs.
Subscribe to the E-rate listserv by sending
a "blank" message to
• join-cde-e-rate@mlist.cde.ca.gov.
If you would like to unsubscribe from the
E-rate listserv, send a "blank" message to
unsubscribe-cde-e-rate@mlist.cde.ca.gov.
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212