Erate from the Service Provider Perspective Cynthia Schultz

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E-rate from the Service Provider Perspective
Cynthia Schultz

Train-the-Trainer Workshop September 27-29,
2004 Schools Libraries Division
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AT THE ONSET

• Ask questions! Get answers!
• Use SPIN Search Tool
• If SP not listed, call the CSB
• Communicate with your service provider (SP)

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TECHNOLOGY PLANS

• SP may offer NEUTRAL technical assistance.

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THE COMPETITIVE BIDDING PROCESS

• SP should not prepare or draft an RFP.
• SP should not prepare, draft, and/or provide its
  own model RFP.
• SP must remain NEUTRAL at all times.
• SP may not interfere with applicants affirmative
  duty to conduct a fair and open bid process.
• SP may not exert undue influence over an
  applicant.

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THE COMPETITIVE BIDDING PROCESS

• SP may not provide funding for applicants
  undiscounted portion.
• SP may not waive applicants undiscounted
  portion.
• SP may not provide hidden incentives, such as
  free ineligible services.

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THE COMPETITIVE BIDDING PROCESS-PRECOMMITMENT

• FORM 470
• SP may offer basic information, such as timelines
  and deadlines.
• SP may contribute information on technical
  issues.
• SP or its consultant may not complete the 470.
• SP or its consultant may not sign the Form 470.
• SP or its consultant may not file the Form 470.

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COMPETITIVE BIDDING REQUIREMENTS-PRECOMMITMENT

• Applicant is to consider all viable bids received
  during the 28-day waiting period.
• Price of eligible goods and services must be the
  primary factor, that is, it must receive the
  greatest weight of any factor.

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COMPETITIVE BIDDING REQUIREMENTS

• Applicant must comply with the 28-day waiting
  period after filing the Form 470 to choose a
  service provider and enter into a contract, as
  applicable.
• Contract not required for month-to-month services
• Contract required for contracted tariffed
  services.

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SERVICE PROVIDER ASSISTANCE

• SP should always provide correct SPIN(s) and
  contact information.
• Form 498 available on line since November 2003
  and online certification to be made available
  Fall 2004.
• Important for companies with multiple SPINs

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SERVICE PROVIDER ASSISTANCE

• SP is encouraged to assist with providing
  information for the Form 471 Item 21 attachment
  for its services.
• Applicant encouraged to provide relevant Item 21
  attachment to service provider upon request.
• Clear level of detail on the Item 21 attachment
  may advance the processing of the invoice.
• An example of such detail would be the inclusion
  of the item (model ), quantity, and unit cost.

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SERVICE PROVIDER ASSISTANCE

• Applicants will not receive support for contracts
  that provide only a single price for a package
  that bundles both eligible and ineligible
  services together.
• SP and applicant should work together to create
  pricing terms in the contract that separate
  eligible services from ineligible services.
• SP is also encouraged to assist in providing
  applicant with billing account numbers and
  contract numbers.

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CONTRACT REQUIREMENTS

• FCC Rules require applicant to sign a contract
  prior to the filing of a Form 471. 47 C.F.R.
  54.504(c).
• The FCC Fifth Report and Order requires both the
  applicant and service provider to sign the
  contract prior to the filing of a Form 471.
• This rule does not apply to non-contracted
  tariffed or month-to-month services.
• Verbal agreements are not acceptable.
• Quotes are not acceptable.
• Purchase orders are acceptable if considered a
  contract pursuant to state and local procurement
  laws and state contract laws.

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CONTRACT REQUIREMENTS

• Service provider and applicant must comply with
  state contract law.
• Service provider and applicant must comply with
  state and local procurement laws.
• Legally-binding agreement is another term for
  contract.

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CONTRACT REQUIREMENTS

• Applicant must provide signed and dated contracts
  for reviews and audits.
• Applicant must be prepared to prove its contract
  meets the requirements of state contract law.
• Applicant certifies that it has signed a contract
  on its Form 486.

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CONTRACT AWARD DATE

• The Contract Award Date cannot be earlier than 28
  days after the posting of the Form 470.
• If an applicant files its own Form 470 and
  chooses either a new or a pre-existing state
  master contract as the most cost effective bid,
  the applicant should
• memorialize its decision to purchase off the
  state master contract after the bidding process
  is complete and
• record the date of this memorialization as the
  relevant Contract Award Date in its submitted
  Form 471 application.

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CONTRACT AMENDMENTS

• Contract services may be amended if the contract
  allows for such an amendment, but if those
  services were not posted on the original Form
  470, the applicant must post a new Form 470.
• If the original Form 470 or RFP did not include
  the newly-eligible services or entities, the
  applicant will be required to post a new Form 470
  for those services.

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CONTRACT AMENDMENTS (cont.)

• If the contract allows for service substitutions
  and there is a change on the Item 21 attachment,
  then the applicant or service provider should
  submit a service substitution, as applicable to
  SLD rules.
• Contract dates may be amended if the contract
  allows for such amendments.
• If applicant and service provider extend the
  contract date, the applicant is required to file
  a Form 500.

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CONTRACTS WITH VOLUNTARY EXTENSIONS

• A contract featuring voluntary extensions means
  that the contract expires at the end of its
  original term and may be voluntarily extended for
  one or more years pursuant to the provisions in
  the contract.
• The applicant should indicate in Item 7b on the
  Form 470 whether it is seeking a multiyear
  contract and/or contract featuring voluntary
  extensions. It may provide more detail in its
  RFP and/or Item 13 on the Form 470 about the
  length of the multiyear contract and/or voluntary
  extensions.
• Best PracticesRFP and/or Form 470 should provide
  a range in years, for exampleone- to three-year
  extension, three- to five-year extension.

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MULTI-YEAR CONTRACTS

• A multi-year contract means a contract that
  covers more than one year.
• For example, a three-year contract would expire
  at the end of the third year.
• The applicant should indicate in Item 7b on the
  Form 470 whether it is seeking a multiyear
  contract and/or contract featuring voluntary
  extensions. It may provide more detail in its
  RFP and/or Item 13 on the Form 470 about the
  length of the multiyear contract and/or voluntary
  extensions.

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REIMBURSEMENTS V. DISCOUNTS

• Service provider is required to permit the
  applicant prior to the submission of the Form 471
  to choose the Method of Payment BEAR v. SPI
  for discounted services
• FCC Second Report and Order encourages the
  applicant and service provider to work together
  to determine the method of payment.
• FCC Second Report and Order encourages parties to
  include the method of payment in the contract.
• Notify SLD through online e-mail if SP refuses to
  permit applicant to choose methodology.

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CONTRACT DISPUTES

• Know your legal rights.
• SLD does not intervene in disputes that are
  contract-based rather than program-rule based.
• Contract disputes should be brought before local
  and state courts, not the SLD or the FCC.

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STATE MASTER CONTRACTS

• Scenario A. If the state filed a Form 470, then
  the applicant may cite the states Form 470 on
  its Form 471.
• The applicant is required to follow the
  applicable provisions of the state master
  contract and local and state procurement laws.
• No separate bidding documents or contracts are
  required by the applicant citing the states Form
  470, other than what is required by the state
  master contract and local and state procurement
  laws.
• The signed state master contract between the
  state and service providers meets the FCC signed
  contract requirement.

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STATE MASTER CONTRACTS

• Scenario B. If the applicant files a Form 470
  and considers a state master contract as one of
  the bids
• The applicant is required to comply with the
  competitive bidding requirements
• Price must be the primary factor and must be
  weighted more heavily than any other factor.
• If the applicant selects the state master
  contract
• The applicant is required to follow the
  applicable provisions of the state master
  contract and local and state procurement laws.
• The signed state master contract between the
  state and vendors meets the FCC signed contract
  requirement.

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STATE MASTER CONTRACTS

• If the state master contract requires the
  issuance of purchase orders or contains other
  requirements for applicants
• The applicants must follow the applicable dates
  set forth in the state master contract.
• For example, if the state master contract
  requires the applicant to issue a purchase order
  by July 1, then the applicant is required to meet
  that deadline.

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ELIGIBLE TELECOM PROVIDER

• Eligible Telecom Provider is a USAC term.
• The FCC term is Telecommunications Carrier.
• SLD will be changing the use of this term from
  ETP to Telecommunications Carrier to comport with
  FCC statutory and regulatory definitions.

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TELECOMMUNICATIONS CARRIER

• SP may not provide telecom services if it has not
  been designated as a telecommunications carrier
  in the Telecommunications Carrier database.
• New TC search database on SLD web site will
  provide
• Status of designation on SP Name and SPIN basis
• Date of USAC designation
• List of applicable states

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TELECOMMUNICATIONS CARRIER (cont.)

• FCC and SLD requirements for TC designation are
• SP must provide telecommunications services on a
  common carrier basis.
• SP must file a Form 499 and ensure that the Form
  498 reflects the Form 499 Filer. I.D.
• SP must be designated a TC in SLD database.

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TELECOMMUNICATIONS CARRIER (cont.)

• Applicant BewareIf an applicant applies for
  telecommunications services from an ineligible
  service provider, funding for those FRNs will be
  denied.
• When seeking telecommunications services,
  applicant should check for the status of telecom
  designation on the SLD web site.

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WORKING WITH YOUR SERVICE PROVIDER

• Review contracts, bills, invoices, amendments,
  service certifications anything you are asked
  to sign or review
• Review all certifications before signing
• BEAR
• Applicant should provide the entire documentation
  to the service provider, not just the Block 4 SP
  certification page.

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WORKING WITH YOUR SERVICE PROVIDER

• Make sure documents are shared with the proper
  departments.
• Work with the service provider on service
  substitutions.
• Work with service provider on Item 21 attachment.

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DOCUMENT RETENTION POLICY

• Remember 5-year retention requirement for all
  documents.
• Good recordkeeping is ESSENTIAL.
• Keep copies of EVERYTHING.
• Keep these documents with E-rate files, or
  copies, if accounting department keeps its own
  files.

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DOCUMENT RETENTION POLICY

• See FCC Fifth Report and Order for a detailed
  list.
• Types of Records to Retain Include
• Competitive bid documents
• RFPs, Bids, Quotes, Proposals, etc.
• Signed Contracts and Purchase Orders
• Service provider bills to customers
• Detail of services/products and locations
• Indicate entity(ies) receiving service/products
• Delivery/installation dates
• Applicant payments
• Cancelled checks
• Service credits for any reason

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TYPES OF SPIN CHANGES

• Global SPIN Changes mergers or acquisitions in
  whole or in part
• Considered a Corrective SPIN change
• Corrective SPIN Change to correct data entry
  errors or where the applicant used the wrong SPIN
  for the service provider selected
• Operational SPIN Change reflects change in
  service provider by applicant and is only
  available after receipt of FCDL

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CORRECTIVE SPIN CHANGES

• Not limited just to RAL can make change at ANY
  time before the last date to invoice.

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OPERATIONAL SPIN CHANGES

• For changes to a new service provider
• Applicant must make three certifications
• Change allowed under local procurement laws
• Change allowed under terms of contract
• Original SP notified of intent to change
• New guidance on web site requiring date and
  manner of notice.
• Can NOT be used for telecom services if new SPIN
  is not eligible telecom provider.

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SPIN CHANGE GUIDELINES

• Requests must be received by the last date to
  invoice.
• Can NOT be used if FRN originally denied for
  ineligible provider denials MUST be addressed
  through appeals process

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QUESTIONS