1. E-rate Program Updates for the FY2011 Application Process

2. E-Rate Program Revised FCC Forms 470 and 471

3. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 3 Form 471 Submissions – FY2009

4. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 4 Form 471 Submissions – FY2010

5. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 5 Grey boxes (one character per box) removed Extra lines separating most fields removed Larger font where possible Checkboxes outlined More easily read Formatting changes to paper forms General Format Changes

6. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 6 Apply Online page Form filing options – Interview or expert – Continue incomplete – Item 21 (Form 471) Certification options – Certify online or on paper NOTE: Training site will be updated after Apply Online page Online formats remain the same General Format Changes

7. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 7 Apply Online Page

8. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 8 Apply Online Page - Detail

9. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 9 Interview Example (Form 470)

10. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 10 Expert Example (Form 470)

11. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 11 Changes Common to Both Forms Revised FCC Forms 470 and 471

12. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 12 Individual school School district Library Consortium Statewide application for (two-letter state code) _____ – All public schools in state – All non-public schools in state – All libraries in state Eligible Entities/Type of Application (Additions in red) Changes Common to Both Forms

13. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 13 – Public – Private – Charter – Tribal – Head Start – State Agency You must check at least one option You may check multiple options Recipient(s) of Services (check all that apply) Changes Common to Both Forms

14. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 14 Applicant will now identify a consultant that is assisting the applicant with the application process Client Service Bureau can quickly assign a consultant registration number (CRN) – Each consulting firm has a CRN – If the firm has multiple employees, the individual employee who assisted with the form is also identified – In the last block, a checkbox has been added to indicate if the consultant is also the authorized person Consultant Information Changes Common to Both Forms

15. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 15 Consultant Registration Number Name (of consulting firm or sole proprietor) Name of employee Street address/City/State/Zip Telephone number with extension Fax number Email address Consultant Information Fields Changes Common to Both Forms

16. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 16 I certify that, if required by Commission rules, all of the individual schools and libraries receiving services under this form are covered by technology plans that do or will cover all 12 months of the funding year, and that have been or will be approved by a state or other authorized body, or an SLD-certified technology plan approver, prior to the commencement of service OR I certify that no technology plan is required by Commission rules. Technology plan certification Changes Common to Both Forms

17. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 17 I certify that the services the applicant purchases at discounts provided by 47 U.S.C. § 254 will be used primarily for educational purposes and will not be sold, resold, or transferred in consideration for money or any other thing of value, except as permitted by the Commission’s rules at 47 C.F.R. §§ 54.500, 54.513. Educational purposes certification Changes Common to Both Forms

18. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 18 All email addresses featured on these forms must now be entered twice – Both e-mail address entries will be compared – If they don’t match, both fields will be cleared and the applicant must try again – This process helps to guarantee the accuracy of this important information Email addresses Changes Common to Both Forms

19. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 19 Revised FCC Forms 470 and 471 Form 470

20. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 20 Block 1: Applicant Address and Information – Eligible entities that will receive services / Recipient(s) of services added (slides 12 and 13) – Number of eligible entities moved from Block 4 – Consultant information added (slide 15) Block 2: Summary Description of Needs or Services – Tariffed/month-to-month, contracted services (multi- year, voluntary extensions), contracts signed before July 19, 1997 deleted – SPI/BEAR/no preference checkboxes deleted Changes to Form 470 Form 470 - Overview

21. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 21 Block 3: Technology Resources deleted – Basic telephone service deleted – Necessary resources deleted Block 4: Recipients of Service – Statewide recipients of services moved to Block 1 – Telephone numbers and prefixes for multiple eligible entities deleted – Ineligible participating entities deleted Changes to Form 470 Form 470 - Overview

22. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 22 Block 5: Certifications and Signature – Some certification language changed – Consultant as authorized person checkbox added (slide 14) Changes to Form 470 (continued) Form 470 - Overview

23. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 23 Item 17 – Technology plan certification (slide 16) Items 18 and 19 – Current Item 21 has been split into two separate certifications – The text contained in the two certifications remains the same as on the original combined certification Item 20 – Educational purposes certification (slide 17) Item 21 – The following sentence has been added: – I certify that I have considered what financial resources should be available to cover these costs. Block 4 - Changes to certification pages Form 470 – Certifications

24. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 24 Item 22 – I certify that I am authorized to procure eligible services for the eligible entity(ies)… Signature page Item 27b – Checkbox for consultant as authorized person (slide 14) Block 4 - Changes to certification pages Form 470 – Certifications

25. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 25 Revised Forms 470 and 471 Form 471

26. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 26 Block 1: Billed Entity Address and Information – FCC Registration Number added – Type of application and Recipient(s) of services added (slides 12 and 13) – Consultant information added (slides 14 and 15) Block 2: Impact of Services Ordered – Collection of broadband services data added Block 3: [reserved] Changes to Form 471 Form 471 - Overview

27. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 27 Block 4: Discount Calculation Worksheet – Libraries must now provide urban/rural and student count information on the worksheet – Certain entity-level data added or requested in a different format Block 6: Certifications and Signature – Some certification language changed – Consultant as authorized person checkbox added (slide 14) Changes to Form 471 (continued) Form 471 - Overview

28. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 28 Block 1: Billed Entity Address and Identifications – Item 3b – FCC Registration Number (FCC RN) added Persons and entities doing business with the FCC must obtain an FCC RN and supply it when doing business with the FCC (Form 471 Block 1 entities only) If you do not already have an FCC RN, you can visit https://fjallfoss.fcc.gov/coresWeb/publicHome.do https://fjallfoss.fcc.gov/coresWeb/publicHome.do – Items 5a and 5b – Type of application/Recipient(s) of service added (slides 12 and 13) – Item 6g – Consultant information added (slide 15) Changes to Form 471 Form 471

29. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 29 Block 2: Impact of Services Ordered – BEFORE ORDER column removed “AFTER ORDER” columns to complete: – Individual schools and school districts complete the “Schools” column – Libraries and library consortia complete the “Libraries” column – Consortia complete one or both as appropriate depending on the consortium members Changes to Form 471 Form 471

30. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 30 Number of students (schools) or patrons (libraries) Number of (class)rooms with telephone service Number of drops (direct Internet connections) Number of (class)rooms with Internet access Number of computers or other devices with Internet access Number of dial-up (<56K) Internet connections Direct broadband services (next slide) Block 2: Impact of Services Ordered – Items 7a through 7g Form 471

31. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 31 Direct broadband services: Number of buildings served at the following speeds: __ < 200 kbps__ 10 – 25 mbps __ 200 kbps – 1.5 mbps__ 25 – 50 mbps __ 1.5 – 3 mbps__ 50 – 100 mbps __ 3 – 10 mbps__ > 100 mbps Block 2: Impact of Services Ordered – Item 7g Form 471

32. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 32 Block 3 is marked “reserved” to maintain the numbering of subsequent blocks Block 3: [Reserved] Form 471

33. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 33 Basic structure of worksheet remains the same Schools and libraries must provide urban/rural status, student counts, and certain specific information – Total number of students – Number of students eligible for National School Lunch Program (NSLP) – New construction – Administrative entity or non-instructional facility (NIF) – Alternative discount mechanism Block 4: Discount Calculation Worksheet Form 471

34. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 34 Schools must also include the following information if applicable (more than one may apply): – Pre-kindergarten – Head Start – Adult Education – Juvenile Justice – Educational Service Agency (ESA) – Dormitory Block 4: Discount Calculation Worksheet (continued) Form 471

35. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 35 School districts and library systems must create one worksheet listing all eligible entities in order to calculate the shared discount for the district or system – This allows USAC to verify the calculation for New school or library construction when the student population is not known Eligible discount for non-instructional facilities (NIFs) such as administration buildings – This worksheet will not affect Two-in-Five status unless it is cited in Item 22 of a funding request Block 4: Discount Calculation Worksheet (continued) Form 471

36. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 36 No changes Block 5: Discount Funding Request(s) Form 471

37. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 37 Item 26 – Technology plan certification (slide 16) Item 27 – I certify that (if applicable) I posted my Form 470 and (if applicable) made any related RFP available for at least 28 days… Item 29 – Educational purposes certification (slide 17) Signature page Checkbox for consultant as authorized person (slide 14) Block 6: Certifications and Signature Form 471 – Certifications

38. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 38 Questions?

39. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 39 E-rate Program 6 th Report and Order

40. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 40 Leased dark fiber now eligible Makes permanent community use Services to certain residential schools are eligible Indexes funding cap to inflation Pilot program for schools providing offsite wireless access Technology plans only for P2 More on competitive bidding, including gifts Disposal of equipment and SPIN changes What’s Included? Overview

41. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 41 6 th Report and Order Improving Broadband Access for All

42. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 42 Lease of fiber, lit or dark, is eligible in Telecom or Internet Access from any provider (dark fiber must be lit immediately) Providers can be telcos; state, regional or local networks; or private networks Cannot purchase excess capacity for future growth Maintenance of leased dark fiber is eligible Installation costs within the property line are eligible Modulating electronics for leased dark fiber are not eligible Dark Fiber Access to Broadband

43. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 43 Up-front construction costs: – Construction on school or library property is eligible – Construction beyond the property line is ineligible Dark Fiber Construction Access to Broadband

44. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 44 Any provider can provide telecommunications over fiber – Includes voice phone service, distance learning, etc. – Includes providers such as state and regional networks, utility companies, and private companies Who can provide fiber? Access to Broadband

45. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 45 On Form 470, post for fiber and fiber-based services in both Internet Access and Telecom Services to maximize your pool of providers On Form 471, file in Telecom Services if the provider is a telecommunications carrier or Internet Access for all other providers CIPA reminder: – CIPA compliance is required if selecting services in Telecom Services when used to obtain Internet service or access to the Internet Applying for fiber Access to Broadband

46. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 46 Applicants can access broadband through a variety of means When comparing competing bids with different solutions, you should do an “apples to apples” comparison Total cost for leased dark fiber involves a number of additional costs beyond the lease payments for fiber connectivity, and those costs should be factored into a total-cost comparison across bids. Selecting Broadband Access to Broadband

47. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 47 Waiver for FY 2010 is now permanent When schools are not in session, schools may open their facilities to the general public to use E-rate supported services on the school’s campus. Schools decide whether or not to provide such access Service must primarily be for educational purposes Schools cannot purchase additional services to support community use – Use must be incidental and not increase E-rate costs Community Use of Schools’ E-rated Services Improving Broadband Access

48. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 48 Community use is limited to non-operating hours and only on campus – School personnel and students must have priority Schools may not charge for use of services or facilities purchased through E-rate though they may charge a fee to offset ineligible costs (e.g. security, additional electricity, etc.) Community Use of Schools’ E-rated Services Improving Broadband Access

49. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 49 Residential schools that service populations facing unique challenges can receive support for service in residential areas (dormitories) of their schools. Eligible populations include: – Schools on Tribal lands – Children with physical, cognitive and behavioral disabilities, and those with medical needs – Juvenile Justice schools, where eligible – Schools with 35% or more students eligible for NSLP Schools can be public or private Funding for Certain Residential Facilities Improving Broadband Access

50. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 50 Funding has been capped at $2.25B since 1999 Starting with FY 2010, the cap will be increased based on the Dept of Commerce Gross Domestic Product numbers. Cap will not decrease in event of deflation FCC will announce the increase annually For FY 2010, inflation is deemed 0.9% New cap for FY 2010: $2,270,250,000 This increase is in addition to any rollover funds Indexing the Funding Cap to Inflation Improving Broadband Access

51. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 51 Pilot allows up to $10M in FY 2011 to support innovative and interactive off-premise wireless device connectivity for schools and libraries. FCC will use the pilot to gather more information about issues affecting such use to determine whether such services should permanently be eligible for E-rate support. FCC will require data reporting by those selected Strong preference given to those who have implemented or in the process of implementing such programs E-rate Deployed Ubiquitously (EDU) 2011 Pilot Program Improving Broadband Access

52. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 52 Rules: – Competitive bidding rules for applicants who already have legally binding agreements with existing providers for these services are waived. – Other rules may be waived to the extent necessary to run the program – CIPA continues to apply EDU 2011 – How to Apply Improving Broadband Access

53. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 53 6 th Report and Order Streamlining and Simplifying

54. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 54 New requirements apply for FY 2011 and beyond No longer required for: – Priority One (Telecom and Internet Access) Still required for: – Priority Two services (internal connections and Basic Maintenance of Internal Connections) Beware of potential bucket switches – P1 on-premise equipment moved to Internal Connections Technology Plans Streamlining & Simplifying

55. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 55 Who needs a written plan prior to the Form 470 posting? – Applicants citing their own Form 470: If P2 services are all included in current tech plan, and the plan covers at least part of the upcoming funding year, then a new tech plan not needed prior to posting If new P2 services requested are not in tech plan, then must have a written plan prior to posting – Applicants citing a State-filed Form 470: Not needed prior to posting of state-filed Form 470 Technology Plan Timing Streamlining & Simplifying

56. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 56 Technology Plan Approval – no change – All applicants requesting Priority 2 services, must have an approved plan that covers at least part of the upcoming funding year prior to the start of service, or the filing of the Form 486, whichever comes first. Technology Plan Timing Streamlining & Simplifying

57. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 57 Four Required Elements – Applicants no longer have to include a section on budget – This information is covered by certification on necessary resources (“I certify that the entities I represent or the entities listed on this application have secured access to all of the resources to pay the discounted charges …”) Technology Plan Streamlining & Simplifying

58. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 58 Disposal or resale is permitted no sooner than five years after installation date Applicants may receive payment or other consideration in return for disposal Applicants are not required to use equipment for five years, nor are they required to dispose of equipment after five years. No notification to USAC is needed, but update your asset registers This does not change the requirement to report transfers of equipment made less than three years from purchase Disposal of Equipment Streamlining & Simplifying

59. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 59 New Order codifies that competitive bidding process must be fair and open. – All potential bidders must have access to the same information and must be treated in the same manner throughout the procurement process – Additions or modifications to the Form 470/RFP must be made available at the same time and in a uniform manner to all potential bidders Fair and Open Competitive Bidding Rule Streamlining & Simplifying

60. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 60 Rule violations include (but are not limited to): – Applicant has relationship with the service provider that unfairly influences the outcome of the competition or provides them with “inside” information – Someone other than the applicant (or their representative) prepares, signs and submits the Form 470 – Service provider is listed as the contact on the Form 470 and the provider is allowed to bid Fair and Open Competitive Bidding Rule Streamlining & Simplifying

61. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 61 Rule violations include (but are not limited to): – Service Provider prepares applicants’ Form 470 or participates in the bid evaluation or vendor selection process in any way – Applicant turns over the competitive bidding process to a service provider – Applicant employee with a role in the selection process has an ownership interest in a vendor seeking to provide the services Fair and Open Competitive Bidding Rule Streamlining & Simplifying

62. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 62 Rule violations include (but are not limited to): – Applicant does not describe the desired products and services with sufficient specificity to enable interested parties to bid. – List is not exhaustive and are meant as examples Fair and Open Competitive Bidding Rule Streamlining & Simplifying

63. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 63 Gifts – Receipt of gifts by applicants from service providers and potential service providers is a competitive bidding violation. – Must follow the stricter of state/local or FCC rules – Applies per funding year – Exceptions mirror Federal Government regulations Modest refreshments not offered as part of a meal (eg coffee and donuts at a meeting) are OK Items with little or no intrinsic value such as certificates and plaques are OK Fair and Open Competitive Bidding Rule Streamlining & Simplifying

64. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 64 Gifts – Exceptions: Items worth $20 or less (meals, pencils, pens, hats, t- shirts etc) as long as those items do not exceed $50 per funding year per employee from any one source (service provider) are OK. This means all gifts from all employees, officers, representatives, agents, independent contractors, or directors of the service provider. Fair and Open Competitive Bidding Rule Streamlining & Simplifying

65. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 65 Gifts – Gift prohibitions are always applicable, not just during the competitive bidding process – Prohibition includes soliciting and receiving any gift or other thing of value from a service provider participating in or seeking to participate in the E-rate program. – Service providers may not offer or provide any gifts to applicant personnel involved in E-rate Fair and Open Competitive Bidding Rule Streamlining & Simplifying

66. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 66 Gifts – Gifts to family and friends when those gifts are made using personal funds of the donor (without reimbursement from the employer) and are not related to a business transaction or business relationship are also exempt. – Gift rules are not intended to discourage companies from making charitable contributions to schools, as long as those contributions are NOT directly or indirectly related to an E-rate related procurement. Fair and Open Competitive Bidding Rule Streamlining & Simplifying

67. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 67 Gifts OKGifts NOT OK Coffee and donuts at a presentationMeal at presentation over $20 Door Prize: Ball cap worth $20 or lessDoor Prize: $30 gift card Certificate or plaque presented at conference Gold watch given as thank you gift Travel, food or lodging at conference, even if you are speaking on behalf of the provider Pens handed out a conference worth $20 or less Conference giveaways: any item exceeding $20 in value (eg briefcase) Holiday present to sibling, not reimbursed by company, paid with own funds Customer Appreciation meal/gift exceeding $20 Gift Examples Simplifying and Streamlining

68. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 68 Gifts OKGifts NOT OK Joe Applicant get $18 lunch from Larry, the Cable Guy. No other meals or gifts during the funding year from anyone employed by, or representing, the Cable Company. No Rule Violation = Total gift below $20 and $50 threshold. Joe Applicant get $12 lunch from Larry, the Cable Guy three times during the funding year. (Total: $36 total). Larry’s boss, takes Joe to lunch for $18. (Total from Cable Company: $54). Rule violation = exceeded $50 threshold Jane Applicant wins mousepad at a conference from Internet R Us. (Value = $8) Jane Applicant also receives $15 box of chocolates from Internet R Us. No Rule Violation = Both below $20 and did not exceed $50 threshold. Jane Applicant wins a wireless mouse and mousepad at a conference from Internet R Us. (Value = $24 +$8) Rule violation: One gift exceeded $20 threshold. Gift Examples Simplifying and Streamlining

69. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 69 Gifts OKGifts NOT OK Joe Applicant attends a conference and picks up a free ballpoint pen and stress ball from a company he’s never heard of. No further gifts are given. No Rule Violation = Total gift below $20 and $50 threshold. Joe Applicant is invited to a customer appreciation lunch at a seminar. Meal value = $22 Rule violation = exceeded $20 threshold Jane Applicant received a bag of peaches in the summer from a provider. Value of peaches = $10 No other gifts are given by anyone from that company for the rest of the funding year. No Rule Violation = Below $20 and did not exceed $50 threshold. Jane Applicant is invited to speak at a conference regarding services she gets from a provider. The provider offers to pick up travel costs. Rule violation: Total gift exceeded $20 threshold. Gift Examples Simplifying and Streamlining

70. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 70 Pre-commitment SPIN changes – Corrective SPIN changes only (ie. data entry errors) Post-commitment SPIN changes – Operational SPIN changes Must have legitimate reason to change, such as Breach of Contract or provider unable to perform and Must select provider with next highest point value in evaluation SPIN Changes Streamlining & Simplifying

71. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 71 Order adopts the FY 2011 Eligible Services List Priority 1 – Leased dark fiber is eligible as described above – Telecommunications now two categories on ESL “Telecommunications Services” can only be provided by an eligible telecommunications carrier “Telecommunications” can be provided by a non- telecommunications carrier via fiber in whole or in part Eligible Services Eligible Services List

72. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 72 Web hosting – Remains eligible – Allows additional functionality of discussion boards, instant messaging and chat – Content remains ineligible, including searching of databases such as gradebooks, encyclopedias etc. – Support for applications necessary to run online classes or collaborative meetings is also ineligible Eligible Services Eligible Services List

73. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 73 Wireless Internet Access Applications – Remain ineligible – Wireless Internet Access service and data charges for a service that is solely dedicated to access an ineligible functionality is also ineligible For example, cellular data circuits used to support GPSs on busses or student attendance are fully ineligible Ineligible Services Eligible Services List

74. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 74 Enhanced Firewalls, Intrusion Detection and Prevention Devices and Anti-Virus and Anti-Spam software – All fully ineligible – Basic firewalls that are bundled with Internet access remain eligible Ineligible Services Eligible Services List

75. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 75 Unbundled Warranties – Separately priced warranties allows for broken equipment to be fixed or replaced are ineligible. – This is a type of retainer and not actual maintenance service performed. – Funding requests for routine maintenance will continue to be funded. Ineligible Services Eligible Services List

76. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 76 Unbundled Warranties – Applicants that can estimate number of maintenance hours per year for their equipment, based on current life of equipment and history of needed repairs, can seek funding for upfront costs on service contract designed to cover this estimate and upkeep. – Reimbursement will be paid on actual worked performed and hours used only. Ineligible Services Eligible Services List

77. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 77 Unbundled Warranties – For example, school determines they need 30 hours of maintenance for a router but only use 20 USAC will reimburse for 20 hours only – Manufacturers warranties of no more than three years and included in the equipment purchase are eligible. Scheduling services are ineligible Online backup solutions are ineligible Ineligible Services Eligible Services List

78. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 78 The complete list of services and products eligible for E- rate support will only be listed in the ESL from now on, and not elsewhere in the rules. USAC will submit the ESL to the Commission by March 30 of each year ESL can be released through Public Notice or Order – Stakeholders will continue to be able to provide comment on future ESLs. Administrative Changes for the ESL Eligible Services List

79. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 79 Questions?

80. E-rate Program Program Compliance

81. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 81 Know Your Roles Technology Plans Competitive Bidding Do’s & Don’ts Forms 470 and RFPs Vendor Selection Pre- Commitment “Must Knows” CIPA Compliance Post Commitment “Must Knows” Document Retention Overview

82. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 82 Applicants – Write tech plan(Priority 2 services only), file Form 470 and write RFP, evaluate bids, select provider, document the process, file Form 471, get tech plan approved, file Form 486, select invoice method, file BEARs, retain docs Service Providers – Respond to 470/RFPs, assist with preparing Item 21 attachments, provide technical answers on questions regarding specific goods and services requested, but NOT on competitive bidding; file SPIs and/or approve BEARs; file SPAC, retain docs Consultants – Follow the role of their client – either applicant or service provider, obtain a consultant registration number, retain docs Know Your Role

83. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 83 When you don’t follow your role FRNs are denied Know Your Role Program Compliance Denials Form 470 $ 4,573,327.00 Competitive bidding $ 36,227,592.00 Contracts $ 6,714,749.00 Insufficient Documentation $ 22,632,050.00 Necessary Resources, Tech Plan, Cost Effectives $ 7,905,485.00 Total $ Denied $ 78,053,203.00

84. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 84 Tech Plans prior to FY 2011 Required for all categories of service (excluding basic telecom and VOIP) Creation must precede Form 470/RFP – Month and year that the plan is “written” Five elements – Goals/strategy for using technology – Professional development strategy – Needs assessment – Sufficient budget – Evaluation process Technology Plan

85. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 85 New Tech Plan Requirements New requirements apply to FY 2011 and beyond IC and BMIC ONLY require a tech plan – Be aware of potential bucket switches from P1 to P2 (e.g., P1 on premise equipment moved to IC) Budget is no longer tech plan element A written tech plan is – not needed prior to posting Form 470 when you are using a state Form 470 – needed prior to posting Form 470, if P2 services are not addressed in the existing tech plan (e.g., requesting servers, routers) Technology Plan

86. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 86 New Tech Plan Requirements A revised tech plan is not needed prior to posting Form 470, if an existing approved tech plan is in place which covers a portion of the upcoming funding year – Must have approved tech plan prior to the start of service or when the Form 486 is submitted whichever is earlier Example: – Posted Form 470 – December 15, 2010 – Current approved tech plan expires December 1, 2011 – A written tech plan is not required at the time Form 470 is posted Technology Plan

87. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 87 Tech Plan Requirements for Everyone Created by schools or libraries ONLY (no service providers involvement) Sufficient detail to support and validate the services requested Should cover the funding year Approved by a USAC-certified Tech Plan Approver (TPA) before Form 486 is filed or services start, whichever is sooner Must follow FCC rules and your DOE state or local technology plan requirements Your DOE may require a tech plan for P1 services Technology Plan

88. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 88 The Competitive Bidding Process Must be fair and open process Avoid conflicts of interest – Applicant consultant  Service Provider – Applicant  Service Provider Open competition and bid evaluation Follow all rules – FCC and state/local Read the Form 470/RFP responses and contract fine print Competitive Bidding

89. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 89 Vendor Involvement Service providers cannot: – Determine the types of service the applicant will seek on a Form 470 – Prepare, assist applicants with the filling out of the FCC Form 470 – Sign, certify and/or submit Form 470 – Negotiate with prospective bidders – Assist or run the competitive bidding process for the applicant Competitive Bidding

90. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 90 Vendor Involvement Service providers cannot: – Be privy to information about the bid not shared with other potential bidders – Provide charitable donations that have a relationship to the competitive bid and would circumvent FCC competitive bidding rules – Offer or provide any gifts or other things of value to those personnel of eligible entities involved with E-rate program Competitive Bidding

91. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 91 Applicants Involvement Applicants can: – Have pre-bidding discussions o Discuss their product offering with SPs o Learn about new technologies from SPs – Have product demonstrations – Encourage and seek vendors to bid – Receive de minimis gifts Modest refreshments, not offered as a part of a meal Items with little intrinsic value intended solely for presentations Competitive Bidding

92. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 92 Applicant Involvement Applicants cannot: – 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 applicant’s own ethical regulations policy – Solicit or accept any gift or Competitive Bidding

93. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 93 Applicant Involvement Applicants cannot: – Solicit or receive gifts worth $20 or more or exceed $50 per school or library employee from any single service provider participating in or seeking to participate in the E-rate program per year. Gifts include meals, travel and entertainment (e.g., sporting events, trips) Competitive Bidding

94. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 94 Forms 470 Indicates the services and categories of service which entities are seeking Must be based on tech plan (if applicable) Must be posted for 28 days Indicates if they are planning/have issued RFP Indicates any special requirements and/or disqualification factors Indicates who will be receiving the services Posting a new Form 470 not required, if Form 470 is for multi-year contract and signed multi-year contract, until the contract expires Forms 470 and RFPs

95. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 95 Requests for Proposal FCC rules refer to RFPs generically but they may have a variety of names (Request for Quotes, Scope, or Work) FCC rules do not require RFP but state and local procurement rules may Must be based on entities’ tech plan (if applicable) Must be available to bidders for at least 28 days – Count 28 calendar days from the later of the two posted (470 and RFP) Example: RFP posted on December 1, Form 470 posted on December 15, December 15 starts the 28 days count Forms 470 and RFPs

96. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 96 Form 470 and RFP Issues Applicants must ensure that they post for the correct category of service – PIA can switch the category of services if applicants make a mistake on their Form 471 Sufficient detail in Form 470 – Cannot provide generic descriptions (e.g., All eligible telecom services, Digital Transmission Services) – Cannot provide laundry lists of products and services Forms 470 and RFPs

97. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 97 Form 470 and RFP Issues Third party entities – Non-state agencies that conduct the competitive bidding and contract negotiations on behalf schools or libraries (e.g., Joint Power Authorities) – Must have a Letter of Agency (LOA) to act on behalf of applicants Forms 470 and RFPs

98. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 98 Form 470 and RFP Issues Third party entities cont’d – If multiple vendors are selected, applicants must conduct a mini-bid to award contract Make sure to memorialize your decision Document retention rules apply – Generally, applicant completes the Form 471 Forms 470 and RFPs

99. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 99 Forms 470 and RFPs Imposing Restrictions Set some eligible services requirements – Applicants may require service providers to provide services that are compatible with one kind of system over another (e.g. Cisco compatible). – Applicants cannot state make and model on Form 470 or RPF, may state equivalent make and model

100. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 100 Forms 470 and RFPs Imposing Restrictions Disqualifying Bidders – Qualifications/disqualification factors must be spelled out to all interested parties prior to the bid evaluation begins – Available to all in Form 470 and/or RFP

101. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 101 Forms 470 and RFPs Imposing Restrictions Disqualifying Bidders cont’d – Disqualification factors should have yes/no responses and cannot be scored on a range Yes/No Examples – Was the bid submitted by the response date? – Was the bid certified? – Did the vendor attend the pre-bid walk through? Range Score Examples – Using on a scale to rank the vendors (e.g., Very high, high, poor)

102. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 102 Bid Evaluation Retain all vendor selection documentation (remember document retention rule) – Winning and losing bids, correspondences, memos, bid evaluation documents, etc. Price of the eligible goods and services must be primary factor in all rounds – USAC sample evaluation matrix available USAC sample evaluation Vendor evaluation begins after 28 day waiting period Vendor Selection

103. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 103 Most Cost Effective Selecting the winning bidder – Price of the ELIGIBLE goods and services must be the primary factor. – 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 – See Step 4: Construct An Evaluation for weighting samplesStep 4: Construct An Evaluation Vendor Selection

104. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 104 Cost Effectiveness Solution must be cost-effective (not just the most cost-effective) Ysleta Order, para. 54: Routers priced at two or three times greater than the prices available from commercial vendors would not be cost-effective, absent extenuating circumstances. Receiving only one bid does not automatically make it cost- effective Applicants must be able to explain why a solution with higher than average pricing is cost-effective. Provide as specific an answer with as much objective information as possible. Service Providers may work with the applicant to help them understand the technical needs for this expensive solution. Vendor Selection

105. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 105 Free Services Can’t use E-rate to get free stuff (ineligible or eligible) Must deduct the value of the “free stuff”, discounts, trade-in etc, from the pre-discount amount in order get equal comparison between offerings Example: Discount rebate – Cost for product = $100 pre-discount – Rebate of 20% is available – Can ONLY apply for $80 ($100*80%) pre- discount Vendor Selection

106. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 106 Free Services A proportionate cost allocation is required between eligible and ineligible components. Cost of eligible goods and services cannot be inflated to cover the “free” ineligible stuff Example: “Free products” included in a bid – Vendor A: $10,000 products includes $1,000 of free ineligible products (Deduct $1,000 free products) – Vendor B: $8,000 for eligible products – no free products – Must compare: Vendor A: $9,000 ($10,000 -$1,000) to Vendor B: $8,000 Vendor Selection

107. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 107 Pre-Commitment SPIN Changes Corrective SPIN change is same service provider corrections to the SPIN Corrective SPIN – Data entry errors – Service provider mergers, or been acquired by another vendor Post-Commitment SPIN Changes Operational SPIN change is to different service provider – Breach of contract or service provider is unable to perform – Newly selected service provider must receive the next highest points value in the original bid evaluation (if there was more than one bidder) Vendor Selection

108. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 108 Contracts Overview A contract must be signed and dated by the applicant prior to the Form 471 certification postmark date – Applicant must not sign a contract before the Allowable Contract Award Date (CAD) – Service providers may sign before the CAD – When state and/or local contract law doesn’t require signature and/or date, the applicant will be given the opportunity to complete a certification statement. A purchase order may be considered a contract ONLY if your state considers it a contract Contracts

109. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 109 Contracts Overview Voluntary Contract Extensions – Are allowable when the option for contract extensions is stated in the original provision of the contract – Applicant must rebid the services (i.e., file a new Form 470) if contract extensions are not stated in the contract or RFP Contracts

110. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 110 Contracts Overview Service Delivery Extension – Deadline for implementation of nonrecurring services is September 30 following the close of the funding year – Applicants may request a service delivery extension from USAC for non-recurring services – File a Form 500 to adjust the contract expiration date Contracts

111. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 111 State Master Contracts A state master contract (SMC) is competitively bid and put in place by a state government for use by multiple entities in that state Single winner – Single vendor wins the bid Multiple winners – State awards contract to several bidders Multiple Award Schedule (MAS) – State awards contract for same goods and services to multiple vendors that can serve the same population Contracts

112. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 112 State Master Contracts Only applies to state agencies, state procurement Multiple winners always require vendor selection justification If multiple vendors can provide the services to you, then you must conduct a mini-bid based on FCC rules. – Do not need to file another Form 470 – But comply with all FCC Rules regarding vendor selection (i.e., most cost effective, price must be primary, cost-effectiveness) Contract Award Date = Date you decided to purchase off State Contract. – Memorialize your decision to purchase off a State Contract in an email to yourself or the file. Contracts

113. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 113 State Master Contracts If a State Master Contract expires either before the funding year starts or during a funding year, you may be able cite a State Replacement Contract (SRC) on your FRNs.State Replacement Contract Form 470/Contract requirements: – Existing State Master Contract posted on a State Form 470 – Replacement State Master Contract posted on a State Form 470 USAC can make commitments using the SRC SPIN, but cannot pay invoices until a SPIN change to “real” provider has been processed. Contracts

114. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 114 Paying Non-Discount Share There is still no free lunch Applicants will always have to pay at least 10% or more depending on their discount Service providers cannot give the money (directly or indirectly) to pay for the non-discounted share – Funds cannot come from the service provider or an entity controlled by the service provider where funding is contingent upon selecting that provider. – Service provider bills can’t be ignored or waived. – If applicant can’t show proof of payment during invoice review; invoice may be denied. Pre-Commitment

115. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 115 Budget Review Purpose is for applicant to show us they can fund their share Operating budget (or draft) has dates that cover the funding year (July – June) Budget documentation should clearly identify applicant’s share (e.g., expense line item) Can provide letter for reasonable expectation that funds secured by 7/1 Pre-Commitment

116. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 116 Necessary Resources Check applicant’s certification that they have them. – Are there end user computers? Must have reasonable plans to fully utilize all internal connections for which you are requesting discounts (e.g., 2-year plan to get computers for all network drops) – Do they have software to run on the computers? – Staff trained on how to use the technology? – Electrical capacity? – Can they maintain the eligible and ineligible equipment? Pre-Commitment

117. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 117 Certifications Forms 470 & 471 Applicants certify that: – Have secured access to necessary resources – Have complied with all FCC, state and local competitive bidding and procurement regs – Non-discount portion of the costs for eligible services will not be paid by the service provider – No kickbacks were paid to anyone and that false statements on this form can be punished by fine or forfeiture – Failure to comply with program rules could result in civil or criminal prosecution – Persons who have been convicted of criminal violations or held civilly liable for certain acts arising from their participation in the program are subject to suspension and debarment from the program Pre-Commitment

118. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 118 Certifications Forms Service Providers certify that: – For SPIs, services have been billed to customers on behalf of eligible entities and for eligible services, and exclude charges already invoiced – SPs, if asked, must provide detailed cost breakouts of services to applicants – They may be audited – Prices were arrived at independently, without communicating with other bidders regarding pricing, intent to bid and how you determined your pricing – Their prices won’t be disclosed to another bidder before the bid opening Pre-Commitment

119. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 119 Heightened Scrutiny May include review of: – Budget – Necessary Resources – Competitive Bidding and Contracts – Targeted questions based on potential violations Selective Review Information Request (SRIR) contains some of the questions we may ask Selective Review Information Request These reviews will take additional time and will hold up commitments until they are completed Pre-Commitment

120. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 120 Children Internet Protection Act requirements: – Proof of public notice of public meeting or hearing – Proof of public meeting or hearing – Copy of Internet Safety Policy – Technology protection measure Applicants must be CIPA compliant when receiving Internet access in the telecom service category Documentation Tip: – Must maintain documentation from prior years if it supports current funding year – Filter documentation examples: maintenance logs, filtering logs, proof of purchase or vendor filter description CIPA Compliance

121. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 121 Payment Plans Are NOT Allowed Applicants are required to pay their share at the same time that USAC pays the discount amount – Service Provider certifies that the invoices they submit are for services that “have been billed to service provider’s customers.” – Deferred payment plans that allow the applicant to pay after USAC has paid will jeopardize a funding request. – FCC Rules include a presumption that the non- discount share will be paid within 90 days. Post-Commitment

122. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 122 Service Delivery Service providers and applicants should work together to facilitate delivery of service Monitoring receipt of service – Both parties (SP and applicant) should monitor delivery of service – Don’t rely on the other party’s records – Keep documentation of service delivery and any service interruptions – Applicants get Quarterly Disbursement Report – Applicants may request Invoice CheckInvoice Check Post-Commitment

123. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 123 Invoice Review SP/App must review BEAR/SPI to ensure: – Only eligible services are being billed – Only services that were approved on the Form 471 are being billed – Services were delivered consistent with the FCDL and any agreements – Any service interruptions are accounted for Credits or discounts are apportioned to both USAC and the applicant Post-Commitment

124. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 124 Document retention timeframes: – 5 years from last date to receive service FY 2011 – this is at least June 30, 2017 – Any document from a prior year that supports current year must be kept until 5 years from last date to receive service as well – E.g., Contract from 2005, used to support FY 2011 FRNs, must be kept until at least June 30, 2017 Documents may be retained in electronic format or paper Must maintain documentation from prior years if it supports current funding year Document Retention

125. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 125 Retain documents to show your compliance: Letters of Agency and any agreements with all consultants Technology Plan (dated draft and final approved version) and CTPA Plan Approval letter RFP, including evidence of publication date and any solicitation you did Any and all bids (winning and losing), competitive bidding correspondence, notes, memo, etc Email to yourself if you get no or one bid CIPA documents Document Retention

126. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 126 Retain documents to show your compliance: Consortium Letters of Agency or contracts with the consortium leader Compliance review documents (PIA, TPA, CIPA, Invoice) Signed and dated contracts Invoices, bills Asset registries, inventory logs Also, see further list on USAC website Document Retention

127. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 127 Service Providers must retain: – Copies of your bids – Contracts signed with applicants – Correspondence with applicants regarding bidding process – Proof of delivery of the service – Documentation of any service down time – Logs of maintenance performed Document Retention

128. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 128 Applicants must retain all documents that show compliance with all FCC rules See complete lists: – Documentation Retention Requirements Documentation Retention Requirements – Documentation Checklist Documentation Checklist – E-Rate Binder Table of Contents E-Rate Binder Table of Contents Document Retention

129. Excerpted from 2010 Schools & Libraries Fall Applicant Trainings 129 Questions?