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E-rate Update for Veteran Applicants Funding Year 2014 Presented by Julie Tritt Schell PA E-rate Coordinator For the Pennsylvania Department of Education.

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Presentation on theme: "E-rate Update for Veteran Applicants Funding Year 2014 Presented by Julie Tritt Schell PA E-rate Coordinator For the Pennsylvania Department of Education."— Presentation transcript:

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2 E-rate Update for Veteran Applicants Funding Year 2014 Presented by Julie Tritt Schell PA E-rate Coordinator For the Pennsylvania Department of Education Fall

3 How to Ask Questions Ask questions 2 ways: – Text questions using tool on left side of the window. – Raise hand using the tool next to your name and I will call on you to use the mic. Also, if you did not list your full name and school/library as your user id, please provide that information in the chat box now. 2

4 Before We Begin... If you’re not a member of the PA E-rate Listserve, Julie at If you need beginners’ training, register at: last workshop on Nov. 8 – Harrisburg Area (IU 15) Or a 2-hour beginners’ webinar will be presented on December 4 from No registration required 3

5 Agenda What’s new for FY 2014 Important reminders Funding predictions for FY 2014 E-rate 2.0 Reform update FY 2012, 2013, 2014 filing information 4

6 Changes for FY 2014 Window Dates Eligible Services List New Forms 470 and 471 PEPPM Eligibility New RFP Definition Multiple Award Contracts 5

7 Funding Year 2014 Window Dates Form 471 Filing Window is expected to open on or about January 8 and close on or around March 18 Form 470’s can and should be posted now 6

8 Eligible Services List 2014  Eligible Services List for FY 2014 has been approved by the FCC. The following minor change was included: – Applicants may seek web hosting services from a single provider and may not request funding for multiple web hosting providers (i.e., there can be only one host of a school’s basic website) – Interactive webhosting features, such as blogging, are not eligible as stand-alone services 7

9 Changes to Form 470 Use old form until new one comes online (expected to be the end of November) New form will consolidate Telecommunications and Internet into a single “Priority 1 Services” category on the Form 470 – Must continue to distinguish between Telecom/Internet on the Form 471 – If you select the wrong category on the 471, PIA will not deny, but will reach out to you and ask you to change 8

10 New 471 Coming, Too New 471 will be available when window opens in January Biggest Block 2 removed in lieu of other questions in Block 5 9

11 Form 471, Block 5 Additions If your Block 5 funding requests broadband or other types of connectivity, you must complete the data- gathering chart and questions b and c – This includes mobile broadband/data services If your Block 5 is NOT for broadband services, you should check the box and then skip the page 10

12 Form 471, Block 5, 24 a Type of ConnectionNumber of LinesDownload Speed Per Line (in mbps) Fiber51000 mbps Cable Modem210 mbps T-1 Line11.5 mbps 11

13 Form 471, Block 5, 24 b 1.If the Internet access is provided by WIRED connections, what percentage of the classrooms or library’s public areas will have access? ______ % 2.If the Internet access is provided by Wi-Fi connections, what percentage of the classrooms or library’s public areas will have access to the Wi-Fi signal? ______ % 12

14 Form 471, Block 5, 24c For consortia applications, do the connections in this FRN include the last mile connection to the school or library? Yes or No If the answer is NO, are the connections in this FRN only for backbone connections? Yes or No 13

15 PEPPM Not Eligible for FY 2014 For several reasons directly related to new E-rate rules and interpretations, the PEPPM contract will not be eligible for use beginning in Funding Year 2014 Therefore, schools and libraries must: – Post their own Form 470s for P2 equipment – Simultaneously bid in local newspapers – Evaluate all vendor proposals received – Obtain board approval (pending E-rate funding) – Sign a contract with the awarded vendor Be sure to build-in extra time to complete these tasks 14

16 New RFP Definition At the USAC training this year, it was stressed that if an applicant posts a 470 and then provides additional written instructions or information to bidders, this would constitute an RFP for E-rate purposes and therefore the box indicating you have an RFP should be used on the 470 – Providing building addresses is ok – Answering written questions from vendors is ok 15

17 Awarding Contracts to 2 Vendors Applicants cannot request funding for the same service from multiple service providers – FCC believes that in the same procurement there can only be one most cost effective bid Service from different vendors from different procurements should be fine USAC may deny if you select 2 cellular providers under the same procurement where they had different pricing – Service territory/quality issues would be valid reason – Dual Internet access FRNs issued under different procurements also should be a valid reason 16

18 Important Reminders... 17

19 Bid Disqualification Reasons Must specify bid disqualification reasons in Item 13 of Form 470 – Must be yes/no and cannot be scored Examples: – Bid submitted after Allowable Contract Date – Service provider must be willing to provide discounted bills – Proposals must be able to provide service to all district buildings – Proposals must guarantee that district can retain existing phone numbers 18

20 Bid Equivalent Products 470s/RFPs cannot be manufacturer-specific – known as ‘Queen of Peace Decision’ Must use the words “or equivalent” or “or compatible”. For example: NOT OK: ‘Cisco 3750 Switch’ OK: Cisco 3750 Switch or equivalent Must evaluate “equivalent” bids received – In bid evaluation, may consider other factors, such as the amount of staff training required to support alternate manufacturer equipment 19

21 Technology Plan Approvals Technology plans ONLY required for entities applying for Priority 2 funding Public schools – PDE approves PDE requires usage of Comprehensive Planning Process for tech plan approval Submission by November 30 for plans expiring June 30, 2014 or for CPP Phase 2 schools CPP/Technology Plan webinar held last October and PP is posted on the PA E-rate website under ‘Trainings and Outreach’ Only pertains to public school entities 20

22 Off-Campus Internet/Data Usage Please remember: No off-campus usage of E-rate-funded data or Internet service is permitted, even if it’s being used for educational purposes – Includes 3g/4g service, aircard service – Cellular service usage (only) is eligible for off-campus usage, and only if used for educational purposes 21

23 Bundled VOIP Handsets The eligible services list states: “The following charges are NOT ELIGIBLE for E-rate support: End User Equipment. Support is not available for end-user equipment.” Be wary of vendors trying to bundle phone handsets with VOIP service, calling the phones, “free” – Leased gateway or router is eligible FCC going to issue more formal guidance in the next few months on this issue 22

24 Allowable SPIN Changes Can no longer switch vendors because of lower price Some vendors were abusing lax SPIN change rules and not bothering to participate in 470 bidding process Legitimate reasons include: Breach of contract Service provider is unable to perform Bankruptcy Delayed provision of new service Must select vendor that received the next highest point value in the original bid evaluation, assuming there was more than one bidder USAC will require you to submit bid evaluation as proof 23

25 24 Questions Thus Far?

26 Should You Apply for P2 Funding? Year 1 -- funded to 70% Year 2 – all funded Year 3 – down to 82% Year 4 – down to 87% Year 5 – down to 81% Year 6 – down to 70% - significant rollover funds Year 7 – down to 81% Year 8 – down to 80% Year 9 – down to 86% Year 10 – down to 81% - $650M rollover Year 11 – down to 87% - $600M rollover FY 2009 – down to 77% - $900M rollover FY all funded - $1.15B rollover + inflation FY 2011 – down to 88% - $850M rollover + inflation FY 2012 – down to 90% - $1.05B rollover + inflation FY 2013 – no funding for P2 (but no formal decision to deny at 90% either) 25

27 Funding Predictions for FY 2014 Let’s look at FY 2013 $2.38 billion available Demand for Priority 1 (telecom and Internet) is $2.709 billion – an increase of 10.8% from last year – FCC rolled over $450M in unused funds from prior years to be able to fund all eligible Priority 1 requests Demand for Priority 2 (internal connections) at 90% discount level is $1.76 billion If P1 grows again by 10%, P1 demand will be almost $3 billion 26

28 Funding Predictions for FY 2014 P1: Doubtful that FCC would not find funding to cover all P1 requests P2: There is very little chance that any P2 funding will be available for P2 in FY 2014 unless the FCC institutes major reforms 27

29 E-rate 2.0 NPRM In July 2013, FCC released E-rate 2.0 Notice of Proposed Rulemaking (NPRM) Initial comments due September 16; Reply comments due November 8 None of the proposals/topics is final.  FCC is seeking feedback from the applicant/vendor community whether they are on the right track and why/why not. Some of the topics are actual proposals; others are issues for which they are seeking comments. 28

30 NPRM Resources Page 29

31 E-rate 2.0 Reform Change priorities so that high-capacity broadband and the associated equipment needed to disseminate that broadband to and within those buildings becomes the top priority – All schools should be eligible for networking equipment, not just the 90% schools All other services, including voice, and all voice/video equipment would become Priority 2 or phased out altogether 30

32 E-rate 2.0 Reform Allow fiber to be ‘purchased’ with E-rate funds if it’s the most cost effective Consider whether the following services should be eliminated: – aircards/3G/4G service – basic maintenance – webhosting and hosted service 31

33 E-rate 2.0 Reform Change funding distribution model Options: – Revise discount matrix to adjust discounts downward at all levels – Move to a per-pupil formula – Move to an upfront grant formula District-wide discount calculations Change definition of rural 32

34 E-rate 2.0 Reform Should CIPA requirements be expanded to include personal-owned devices used on school campus and school owned devices used off campus? Should smartphones and eReaders be considered computers and subject to CIPA? 33

35 E-rate 2.0 Reform Increase the size of the fund Establish connectivity goals  INTERNET connectivity goal of 100 Mb per 1000 users by 2014 (increasing to 1 Gb per 1000 users by 2017).  WAN connectivity goal of 10 Gb per 1000 users by Streamline the program Direct BEAR payments to applicants Expand document retention requirements Permit multi-year 471s Create incentives for consortia purchasing 34

36 Filing Comments w/the FCC Deadline to submit comments is September 16, with reply comments due November 8 Comments should:  Include your organization’s name and date on each page.  Use a table of contents, regardless of the length of the submission.  Track the organization set forth in the NPRM in order to facilitate or internal review process (i.e., refer to paragraph numbers from the NPRM).  Begin with a short and concise summary of your argument.  Be submitted in.PDF format. Helpful filing guide available at: 35

37 Funding Years 2012, 2013,

38 FY 2012 (E-rate Year 15) Funding Year 2012 ended June 30, 2013 for recurring services  Deadline for submitting BEARs (Form 472) was Monday, October 28, 2013, but everyone has been granted an extension through October 28, 2014  List of affected entities sent to listserve ▪ If you’re on this list and you already submitted your BEAR, you’re likely listed because either USAC hasn’t yet mailed your BEAR check, your vendor hasn’t certified your online BEAR, or USAC is going to $0-fund it 37

39 Reminder about Online BEARs How do you know if your vendor has certified your Online BEAR?  After you submit an online BEAR, you will receive 2 s:  Immediately after you submit  After the vendor certifies the BEAR  If you haven’t received the second , contact your vendor to remind them to certify by deadline (and make sure the can certify online BEARs)  To track your BEARs (paper or online) using the Online System, go back to the Online BEAR page and click on Track Form  After submitted by applicant to vendor: Pending Validation  After certified by vendor: Passed Validation  After paid by USAC: Completed 38

40 $0.00-funded BEARs When you receive the white BEAR notification letter, be sure to open ASAP If the amount on the first page says $0.00-funded, it does not mean ‘denial’ Create a new BEAR, correct the mistake and resubmit Most common reason for $0.00-funded BEARs is listing that the service started 7/1/2013, instead of 7/1/

41 Calculating BEAR Amounts When determining the amount to list in Column 14 on your BEAR, be sure to subtract ineligible charges, such as: Varies by vendor, but these are known to be ineligible: Property Tax Fees Universal Service Administrative Fee USF fees themselves ARE eligible Late payment or finance charges USF Cost Recovery Fees Paper statement fees Equipment charges (on P1 bills), such as cell phones Equipment insurance fees Directory listing fees Non-published phone number fees Payphone service Personal usage 40

42 FY 2013 (Year 16) Details For services rendered 7/1/ /30/2014 FY 2013 is PINK 53% of PA Priority 1 FRNs funded as of 10/10/2013 USAC very behind other years File the 486 after FCDL arrives Request discounted bills from vendors, if desired Watch PA E-rate Listserve closely Is your Form 486 due? Check the list! Haven’t been funded? the USAC Ombudsman BEN and 471 # 41

43 FY 2014 (Year 17) Details For services rendered 7/1/ /30/2015  FY 2014 is BLUE 471 application window will likely open on or about January 8 and will close on or around March 18  Form 470’s being accepted now!  Don’t wait until Jan to file, especially if you need to take contracts to your board  File by Thanksgiving! 42

44 43 Don’t forget: You must post a 470 for every service, every year, unless..... You are in a multi-year contract that was originally competitively bid using a Form 470

45 E-Certification/PINs* E-rate PINs can be used to file E-rate forms online PIN assigned to a person and is specific to that entity while employed at that entity Not given to an entity No way to request a PIN Must sign a paper certification of a 470, 471 or 486 SLD will mail them a PIN in a small white mailer Can still submit these forms online, but cert page must be signed and mailed to USAC PIN then may be used to 470, 471, 486, and BEAR Forms HINT: Don’t make the BEAR Form the first one you sign as USAC will issue a BEAR-only PIN 44

46 Where Can I Look For Information? ratecentral.com/us/stateInformation.asp?state=PA Enter your E-rate Billed Entity Number in upper left corner Website shows – All FRNs – Every Funding Year – What Has Been Filed – What Has Been Committed and Disbursed 45

47 E-rate Help SLD Client Service Bureau (CSB) E-rate “Help Desk” where applicant & service providers can get answers to questions Accessed via ‘Submit a Question’ on SLD website PA E-rate Coordinator 46

48 Questions? The end! 47


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