UNIVERSAL SERVICE FUND WORSHOP

Year 2007: July 1, 2007 – June 30, 2008

NEW FILERS

GOALS:

• OVERVIEW OF PROCESS

• REVIEW FORMS

• Universal Service means:– Providing access to telecommunications

services for all Americans at reasonable rates • Rural or high cost areas

• Libraries

• Low-income consumers

• Rural heath care facilities

• Public and private schools

OVERVIEW

HISTORY

• Telecommunications Act of 1996

– Eligible Components• Schools & Libraries• Rural Health Care• High Cost/Low Income

• FCC Order (May 8, 1997)

• First Application Window: Jan 1998 – June 1999

FRAMEWORK

Discounts available on four types of services»Telecommunications»Internet Access»Internal Connections»Basic Maintenance of Internal

Connections

GENERAL FRAMEWORK

• Apply each year for eligible services

• Funding level set by FCC. Capped at $2.25 billion

• Rules of Priority:– Priority 1: Telecommunications & Internet

access– Priority 2: Internal Connections & Basic

Maintenance of Internal Connections

APPLICATION PROCESSDevelop

Technology

Plan

File Form

470

28 Days

(Bid process/Select Vendors)

File Form 471 SLD Processes Application (PIA)

Funding Decisions

(Letters issued in waves)

Form 486 BellSouth Grids/

Discounted bills

BEAR/AT&T ARF FORM

In Other Words…

• Technology Plan – What is my plan?• Form 470 – What services do I want?• Form 471 – What services did I order?• Form 486 – When did services start?• Form 472 – How do I receive

reimbursements or discounts?

TECHNOLOGY PLANS• Remember:

Tech Plan must establish the connections between the technology and specific library service improvements

Tech Plan should provide evidence of securing the resources needed to make effective use of the discounted services

Tech Plan should include an evaluation process to monitor progress toward established goals

Tech Plan Approver listed on Form 486 must be SLD certified

TECHNOLOGY PLANS

• Not required for local/long distance phone service• Must be written before Form 470 filing• Must be approved by an SLD-certified approver before

Form 486 filing or start of services, whichever is earlier

TECHNOLOGY PLANS INCLUDE

• Goals / Strategies for using technology

• Professional development• Needs assessment• Sufficient budget• Evaluation process

FORMS

Form 470 – Description of services (request for bids on those services).

Form 471 – Services ordered form (actual application). Filed after service provider selected (after 28 day waiting period).

Form 486 – Receipt of Services Confirmation. Filed when services have begun.

FORMS (cont’d)

Form 472 – Billed Entity Applicant Reimbursement Form (BEAR) filed by applicants seeking reimbursement fro bills paid.

Form 479 - Certification by Administrative Authority to Billed Entity of Compliance with CIPA.

Form 500 – Adjustment to Funding Commitment – Filed by applicant to cancel FRN, change service start dates, or reduce funding commitment.

LETTERS to REMEMBER

Form 470 Notification Letter

Receipt Acknowledgment Letter – Sent after Form 471 has been data entered.

Funding Commitment Decision Letter – Issued in funding waves after the application has passed review.

LETTERS to REMEMBER

Form 486 Notification Letter

Form 472 Billed Entity Applicant Reimbursement Approval

Form 500 Notification Letter

APPLICATION PROCESS

Technology Plan Written File Form 470

Include services not covered by state contract

Wait 28 days Select Service Provider Sign contract File Form 471

APPLICATION WINDOW

• Form 470 can be filed at any time after the service start date of the previous year (Funding Year 2007 Forms 470 could have been filed any time after July 1, 2006)

• YEAR 2007 FORM 471 WINDOW:

November 14, 2006 - February 7, 2007

FORM 470

• Services to include on Form 470Tariff Services

Month-to-Month

New Contract

• Services NOT included on Form 470Any service on state contract list

Any service covered by EPL (Express Products List)

Request for Proposal (RFP) and Form 470If no RFP—Very detailed 470 to allow bidders to evaluate the services in order to formulate bids.

If an RFP is issued, it must be available to bidders for 28 days.

BIDDING

FCC rules apply IN ADDITION TO state and local procurement laws and competitive bidding requirements.

Example: State or local procurement law may permit an applicant to forego competitive bidding for products and services under a certain dollar threshold, but FCC rules require that applicants seek competitive bids on all products and services.

BIDDING

Applicants must select the most cost-effective bid.Price must be the primary factor, but need not

be the exclusive factor.Price must be given more weight than any

other factor. Bid selection process must be documented

BIDS

FORM 470

• Remember:Open and fair competitive bidding process Services listed in correct category of service (Form

471 must match)Retain worksheets, bid evaluation criteria, winning

AND LOSING bidsFile and certify online when possible

FORM 470 (cont’d)

• SERVICE PROVIDERS CANNOT be directly involved in the Form 470 – undermine bidding process and may result in application denial.

TO FILE Form 471

Information Needed: List of State Contracts Discount chart for current year Eligible Services List approved for funding

year Cost Information for services

Obtain from service provider

DISCOUNTS

Library discount based on percentage of students eligible from free and reduced lunch in the school district in which the library is located.

Information obtained from MS Department of Education

ELIGIBLE SERVICES LIST

The Eligible Services List provides guidance on the eligibility of products and services under the Schools and Libraries Program.

Approved annually by the FCC

Available in PDF and as searchable database

ELIGIBLE SERVICES LIST DEFINITIONS Telecommunications – “transmission,

between or among other points specified by the user, of information of the user’s choosing, without change in one form or content of the information as sent and received.

ELIGIBLE SERVICES DEFINITIONS Internet access – support in this category

is only available for basic conduit access to the Internet or for services that are an integral component part of basic conduit access.

TELECOMMUNICATIONS

Digital transmission servicesATM, DS-1, DS-2, DS-3Fiber opticsFrame relayT-1, T-2, T-3, Fractional T-1Wireless

TELECOMMUNICATIONS

If Internet access is requested as a telecommunications service, applicants must indicate they are seeking Internet access on their Form 470.

Such applicants must also comply with CIPA.

EDUCATIONAL PURPOSE

• Defined as “integral to the education of students or provision of library service

• Some offsite telecommunications activities may now be eligible– Examples

• School bus driver using cellular phone• Connectivity to a mobile library van• Paging service for teachers on field trips

PUBLIC LIBRARY E-RATE WEB SITE:

http://www.first.lib.ms.us:/erate.html

FORM 471

• Remember:File Form 471 after:

Form 470 has been posted 28 days (29th day)selecting a service providerexecuting a contract or agreement

ELIGIBILITY Subtract any ineligible products or

services

30% Rule - If 30% or more of request is ineligible, entire request is ineligible.

If in doubt about eligibility, use a separate FRN.

471 REMINDERS

• File separate Form 471 for Priority 1 and Priority 2 Services

• File and certify online

Who Qualifies for a PIN?

Applicant who has signed:Form 470, 471 or 486

Automatically sent

Can be changed

TRAINING SITE:

http://usactrain.solixinc.com

Copy Block 4 (Form 471)

Can copy a Block 4 worksheet from one Form 471 to another.

Can then edit or delete entries to accurately reflect those entities receiving a particular service

Form 471 Item 21 Attachments

Purpose:Explain the services you are requesting

Labeling: Attachment Number Billed Entity Number From 471 Application Number Contract Number Service Provider Name

SUBMIT ATTACHMENTS

Filing requirement (but not window requirement)

File them as soon as you complete your 471 E-mail

attachments@universalservice.org

Regular mail or express mail service

Fax – (973) 599-6511

ONLINE

SUBMIT ATTACHMENTS

Online Item 21

If you file Form 471 online, you can file Item 21 Attachment online:

Best for simple applications Save your work, exit, come back later Print your attachment

LETTERS

Receipt Acknowledgment LetterUse the Receipt Acknowledgment Letter to

make corrections to:Block 1 informationBlock 4Block 5 (reduction or cancellation)Block 5 – Correct 470 Application Number

CORRECTIONS DEADLINE

Receipt Acknowledgment Letter corrections must be made within 3 weeks of receipt of letter

EXCEPTIONS: Cancellation of Funding Request Reduction of Funding Request

OTHER CORRECTIONS

Bishop Perry Order:Released by FCC on May 19, 2006Ministerial and clerical errors can now

be corrected after applications are submitted

PIA will contact if errors found 15 Day deadline for corrections

APPLICATION REVIEW

WHAT IS PIA????Program Integrity Assurance Review Form 471 ApplicationsWill contact with questions by e-mail or

FAX15 Days to respond

FUNDING COMMITMENT

• FCDL=Funding Commitment Decision Letter

• Information on funding approved by SLD for funding requests

• Issued in WAVES

FUNDING WAVES

Begin as soon as FCC approves funding cap

Priority 1 Services funded first Priority 2 Services funded beginning at

90% discount level Funding Year 1999 last year in which all

requests were funded.

APPLICATION SUMMARY File and certify online Remember deadlines File separate applications for Priority 1

(telecommunications & Internet access) and Priority 2 services (internal connections & basic maintenance for internal connections).

Document everything and retain documentation

Specific items to retain

Support for calculations used on the Form 471 Discount percentages Request levels

Bid documents, especially losing bids Contracts Proof of Delivery Bills Proof of paying your share

POST-APPLICATION PAPERWORK

Form 486 File 120 days after receipt of FCDL or service start

date

DISCOUNTS – Bell South Grid http://k12.bellsouth.com/usf_forms.jsp

BEAR

CONTACT NUMBERS

SLD HOME PAGE:http://www.usac.org

SLD CLIENT SERVICE BUREAUTelephone 1-888-203-8100FAX 1-888-276-8736E-MAIL question@universalservice.org

E-RATE CONSULTANTTelephone 1-888-696-9786FAX 1-662-429-8853E-MAIL ruthp@first.lib.ms.us

MORE CONTACTS

BellSouth Grids – Local Telephone & State Network:Verlene George verlene.george@bellsouth.comFAX 404-829-0504

BellSouth Grids – Long Distance Telephone:Christina Warnock

christina.warnock@bellsouth.comFAX: 800-325-1479

QUESTIONS