Florida E-Rate Training and Workshop FY 2012

Alford McKenzieSylvia Norton

Tallahassee January 10, 2012

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Agenda

• Division of Telecommunications Overview• Broadband Grant Overview• Introductions• Overview of E-rate

– Basic application and funding cycle– State Master Contracts– Updates and changes

• Meet with DMS/DOE/DOS • Questions (anytime)

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Portfolio of Services

Remote Broadband

Service

Hosted Fax Service

Premise Switches (STEPS)

Hosted Interactive

Voice Response

Long Distance

Hosted Voice over IP

Toll-Free

Local Phone Service

Voice Conference

Video Conference

Web Conference

Wireless Smart Phone

Wireless Air-Card

Data Center Local Area Network

Data Center Wide Area Network

Telecom. Infrastructure Services (TIPS)

Broadband MyFloridaNet

Florida Information

Resource Network

(FIRN)

Remote Virtual Private

Network

Voice/Video ServicesData Network Services

Wireless Data Services Infrastructure Data Center &

Offices

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Broadband Grant Program

$8.8M Grant National Telecommunications AdministrationTo increase Florida’s Participation in the Digital Economy

1. Grants Assistance resources to Anchor Institutions2. Library Technology Assessments for 180 Libraries3. Local Regional Broadband Planning4. Broadband Data Collection and Mapping5. E-Rate Assistance resources

• Increase Useful Knowledge• Increase Collaboration• Increase Effective Use of Resources• Increase Funding for Technology

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Who Are We?

Introductions• Department of Management Services (DMS)

• Division of Telecommunications (DIVTEL)

• Department of Education (DOE)• Office of Technology and Information Services

• Department of State (DOS)• Division of Library & Information Services

• School and Library Applicants

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FY 2010 Florida E-Rate Funding*

• 3,740 Funding Requests• Average Statewide Discount: 77.9%

$179,675,073 (Requested Amount)$85,876,592 (Funded Amount)$90,257,222 (Unfunded Amount)$3,541,259 (Amount Pending USAC Decision)

$58,089,178 (Disbursed Amount to Date)$27,787,414 (Amount Approved but Not Yet Disbursed)

* As of 1/4/12

FY 2012 FUNDING = MAXIMIZE $$$

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Why Are We Here?

• To help Florida schools and libraries understand E-Rate rules and procedures in order to maximize funding

• To assist Florida schools and libraries in analyzing their existing utilization and application strategies to ensure optimal results

• To represent Florida’s interests in E-Rate policymaking proceedings & forums

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How We Can Help…

We Provide Support at No Cost to You!

Types of Assistance We Offer:• Guidance, Updates and Reminders• Individual Assistance• Training

• Workshops• Webinars

• Communication• Facebook• Listserv• Twitter• Website • eratehelp@my.dmsservices.com

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Overview of the E-Rate Program

• Federal program established by 1996 Telecommunications Act

• Discounts: 20% - 90% on eligible products and services

• $2.25 billion annually (adjusted for inflation) funded through USF fees

• The Schools and Libraries Program of the Universal Service Fund, which is administered by the Universal Service Administrative Company (USAC) under the direction of the Federal Communications Commission (FCC).

• Funding Year (FY) runs from July 1 through the following June 30– USAC refers to the funding year as the year in which services will begin (i.e.

FY2012 is July 1, 2012 – June 30, 2013)

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Simple Overview of E-Rate for Applicants

• Create Technology Plan• File Form 470 (RFP)• Wait 28 days• File Form 471• PIA Review and FCDL• File Form 486• Submit invoices to USAC• Funds disbursed

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Annual Process for Funding Year

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What’s Eligible?

• Eligible Entities

• Eligible Purpose

• Eligible Services

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Eligible Entities

• Schools: Must meet statutory definition of elementary or secondary school in No Child Left Behind Act of 2001, must not operate as for-profit business, and must not have an endowment exceeding $50 million.

– “Elementary school” means a nonprofit institutional day or residential school, including a public elementary charter school, that provides elementary education, as determined under state law.

– “Secondary school” means a nonprofit institutional day or residential school, including a public secondary charter school, that provides secondary education, as determined under state law, except that such term does not include any education beyond grade 12.

• Libraries: Must meet statutory definition of library or library consortium in the 1996 Library Services and Technology Act (LSTA) and must be eligible for assistance from a state library administrative agency under that Act.

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Eligible Purpose

• Defined in the FCC Second Order and Amended in FCC rules:– “For purposes of this subpart, activities that are integral, immediate

and proximate to the education of students, or in the case of libraries, integral, immediate and proximate to the provision of library service to library patrons, qualify as “educational purposes.” Activities that occur on library or school property are presumed to be integral, immediate and proximate to the education of students or the provision of library services to library patrons.”

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Eligible Services

Five categories of eligible E-rate services:

–Priority 1 (P1) • Telecommunications Services• Telecommunications • Internet Access

–Priority 2 (P2)• Internal Connections • Basic Maintenance of Internal Connections

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Eligible Services – P1

Funded first

• Telecommunications Service: “Used to communicate electronically between sites.” Includes local and long distance, digital transmission services, wireline and wireless

• Telecommunications: “Non-telecommunications carriers may provide telecommunications via lit or dark fiber in whole or in part.”

• Internet Access: Basic conduit access to the Internet, including e-mail

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Eligible Services – P2

Funding starts with the neediest applicants

• Internal Connections: wiring and components that expand data access within school or library (ex. switches, hubs, routers, wiring, cabling) Subject to the Two-in-Five Rule End user equipment is NOT eligible (ex. computers, monitors, phones, and content software/applications)

• Basic Maintenance of Internal Connections: basic maintenance of eligible internal connections (i.e. repair and upkeep of hardware, wire and cable maintenance, basic technical support, and configuration changes)

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Web Hosting

Before 6th Report & Order, eligibility restricted to:• Domain name registration necessary for creation of

school or library website• Provision of website traffic (bandwidth)• Provision of disk space for storing applicant provided

content• Provision of File Transfer Protocol (FTP) transfer or a

Web interface to upload files

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Web Hosting

After 6th Report & Order, eligibility open to:• Allow additional functionality of discussion

boards, instant messaging and chat• However content remains ineligible, including

searching of databases such as grade books, encyclopedias, etc.• Also support for applications necessary to run

online classes or collaborative meetings is still ineligible

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Leased Dark Fiber

• Lease of existing fiber, lit or dark, that crosses a right of way, is eligible in Priority 1 Telecommunications or Internet Access categories from any provider (telecom & non-telecom)– On-premise leased fiber between or within school or library buildings is

Priority 2

• Non-telecom providers include: local, state, regional fiber networks (ex. municipal networks), and private networks (ex. electric utilities)– Can compete with telecom carriers for provision of telecom & Internet

services (over fiber)

• Post in both categories to maximize # of bidders

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Leased Dark Fiber – 6th Report & Order

• Construction charges from an eligible school or library to the property line eligible as Priority 1– Installation charges from eligible entity to property line ARE

eligible; Installation charges from eligible entity to fiber network outside of property line ARE NOT eligible

• Modulating equipment IS NOT eligible

• Dark fiber must be lit immediately

• Cannot purchase excess capacity for future growth

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Eligible Services List

Provides guidance on eligibility of products and services

• FCC solicits public comments prior to approving

• Funding window cannot open until new ESL issued for following FY

• Format: five funding categories as established by FCC + miscellaneous

Telecommunications Service Telecommunications Internet Access Internal Connections Basic Maintenance Miscellaneous

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FY2012

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Technology Plans

• Develop Your Tech Plan

• Must be prepared (written) before filing Form 470 for P2 services

• Four Elements– Goals and Realistic Strategy – Professional Development – Needs Assessment – Evaluation Process

• Approved by Certified Technology Plan Approvers

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FORM 470

• Description of Services Requested and Certification Form

• Defines desired services• Opens the competitive bidding process• Wait 28 days after Form 470 and/or RFP is posted,

whichever is later, before selecting a vendor or signing a contract

• Filed each funding year for requests for tariffed or month-to-month services and for new contractual services

• USAC Issues Receipt Notification Letter (RNL)

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Competitive Bidding Process• 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

• Price of eligible products and services must be the most heavily weighted evaluation factor

• Rule violations (not limited to these)– relationship with the service provider that unfairly influences the outcome of the

competition or provides them with “inside” information– do not describe the desired products and services with sufficient specificity to

enable interested parties to bid

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Bid Evaluation Matrix

Factor Points Available

Vendor 1 Vendor 2 Vendor 3

Price of the ELIGIBLE goods and services

30 15 30 25

Prior experience w/ vendor 20 20 0 20Prices for ineligible services,

products & Fees25 20 15 25

Flexible Invoicing: 472 or 474 15 0 15 15Environmental objectives 5 5 3 2Local or in state vendor 5 5 5 5

Total 100 65 68 92

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State Master Contracts (SMC)

• Is competitively bid and put in place by a state government for use by multiple entities in that state

• Must be on behalf of whole state – not just a consortium – and must be bid by a state agency

• Applicant can cite SMC Form 470 on their Form 471 or post their own Form 470 and evaluate SMC as a bid response

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State Master Contracts cont’d

• Single winner contracts: applicant does not have to justify vendor selection and cites SMC Form 470 on Form 471

• Multi-vendor contracts: applicant must conduct a mini-bid between the winners with price of eligible goods and services being the primary factor AND document their vendor selection process

• Contract Award Date = Date applicant decides to purchase off State Master Contract

Memorialize decision to purchase off SMC in email to self or the file

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State Replacement Contracts

• Utilized when SMC expires before the funding year starts or during a funding year

• Follow State Replacement Contract procedures when filing Form 471 to get full year of funding

• USAC can make commitments using the SRC SPIN, but cannot pay invoices until a SPIN change to “real” provider has been processed

• Check DMS Contract End Dates before filing Form 471

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DMS State Master Contracts

Service Company SPIN Contract Number

Allowable Contract Date

Award Date

Form 470 App #

Contract End Date

Effective Dates

CENTREX BellSouth (dba AT&T)

143004824 DMS 06/07-086

1/30/2007 2/6/2007 289460000614029

1/31/2014 2/12007-1/31/2014

CenturyLink 143001444 DMS 08/09-057

12/17/2008 2/9/2009 500440000701829

1/4/2014 2/10/2009-1/4/2014

Verizon 143001435 DMS 08/09-071

2/25/2009 5/18/2009 598350000730295

5/21/2014 5/22/2009-5/21/2014

Toll-Free Services (1-800/888)

DeltaCom 143001196 DMS 08/09-078

3/9/2009 3/23/2009 839180000733215

3/19/2014 4/10/2009-3/19/2014

Long Distance

Qwest 143001157 MA 2114 10/31/2003 3/22/2004 115340000458286

3/21/2014 3/22/2004-3/21/2014

Long Distance

EarthLink Business

143001196 DMS 10/11-036

7/29/2011 9/9/2011 889440000927431

9/8/2016 9/9/2011-9/8/2016

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DMS State Master Contracts

Service Company SPIN Contract Number

Allowable Contract Date

Award Date

Form 470 App #

Contract End Date

Effective Dates

Voice Conferencing

CenturyLink 143019614 DMS 05/06-069

11/7/2005 12/1/2005 543290000545587

5/29/2012 12/1/2005-5/29/2012

Telephony Equipment & Services

Avaya 143005214 730-000-09-1 4/9/2008 9/3/2008 616350000664271

3/2/2012 9/3/2008-3/2/2012

Cisco 143005014 730-000-09-1 4/9/2008 9/3/2008 616350000664271

3/2/2012 9/3/2008-3/2/2012

Siemens 143004816 730-000-09-1 4/9/2008 9/3/2008 616350000664271

3/2/2012 9/3/2008-3/2/2012

Internet Access (FIRN)

AT&T 143004824 DMS 08/09-061

11/19/2008 1/12/2009 150090000693652

6/30/2015 1/12/2009-6/30/2015

Wiring, Internal

For info, call Julie Gowen at 850-487-2105

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Form 471

• Services Ordered and Certification Form– Must be filed each year within a specified filing window (i.e. FY 2012: Jan 9 at noon – March 20 @ 11:59pm)

• Impact of Services Ordered (Block 2)• Discount Calculation (Block 4)• Funding Request Calculation (Block 5)• Certifies compliance (Block 6)

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What’s My Discount?• 20% - 90% of eligible costs

– Percentage of students eligible for National School Lunch Program (NSLP)

– Urban or rural location of the school or library

• School districts: weighted average of schools – FY 2012 worksheets on Florida DOE

• Alternative Discount Mechanism

• Libraries: discount of the school district – FY 2012 discounts Florida DOS

• Consortia: simple average of member’s discounts

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Discount MatrixINCOME

Measured by % of students eligible for NSLP

URBAN LOCATION Discount

RURAL LOCATION Discount

If the % of students in your school that qualifies for the NSLP...

...and you are in an URBAN area, your

discount will be...

...and you are in a RURAL area, your

discount will be...Less than 1% 20% 25%

1% to 19% 40% 50%

20% to 34% 50% 60%

35% to 49% 60% 70%

50% to 74% 80% 80%

75% to 100% 90% 90%

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Item 21 Attachment

• Describes type of service for which you are requesting funding, pricing of items, associated installation costs

• Note intended use of the product or service• Location where to be installed or service received• Break down, if any, eligible and ineligible functionality

• Used to determine eligibility of services

• Service providers encouraged to be involved

• Submit before end of 471 window

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Form 471 Certifications

Applicants certify that:

• They have secured access to necessary resources• They have complied with all FCC, state and local competitive

bidding and procurement regulations• The non-discount portion of the costs for eligible services will

not be paid by the service provider • No kickbacks were paid to anyone• Failure to comply with rules could result in 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

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After You Submit Form 471

• USAC Issues Receipt Acknowledgement Letter (RAL) after Form 471 certified– Confirms filing and provides summary

• Read and review the RAL! – Provides opportunity to make allowable corrections

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Ministerial & Clerical Error Corrections

• Can correct ministerial and clerical errors: – Mark up RAL and RNL and re-submit until FCDL is issued– PIA will ask if something is M&C

• 15 day response still applies

• Allowable – Ex. Incorrect discount, contract number, billing account

• Conditional – Ex. Contract award/expiration date, Corrective SPIN change

• Not allowable – Ex. Operational SPIN change, adding service category

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Why haven’t I heard anything?

Program Integrity Assurance Review (PIA)

• Verify rules compliance as to eligible entity, purpose, and/or service

• Verify discount calculation

• Reviews Competitive Bidding Process, contracts, Form 470, etc.

• Confirms Letter of Agency for consortium

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What do I do during a PIA Review?

– Have documentation ready– Respond to inquiries and provide information

promptly, by deadline– Ask for clarification if unsure– Ask early for an extension, if you need it– Put response in writing– Document all responses and keep a log

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How Do I Know if I Got Funded?

• USAC issues Funding Commitment Decision Letter (FCDL) to applicant and service provider when PIA review is complete

• Approves, modifies or denies funds for specific services from specific provider by Funding Request Number (FRN)– Funding status

Funded Not Funded As Yet Unfunded Canceled

• May also modify discount percentage or service eligibility

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SPIN Changes

Corrective or Operational – depends on timing in relation to funding commitment• Pre-Commitment

• Corrective SPIN changes only (i.e. data entry errors)• Post Commitment

• Operational SPIN changes• Must have legitimate reason to change, such as Breach of

Contract or provider unable to performand

• Must select provider with next highest point value in evaluation

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What do I do after funding is approved?

File Form 486

– Confirms services and start date (not before July 1)– Certifies compliance with Children’s Internet Protection

Act (CIPA), when applicable

• Must be filed no later than 120 days after Service Start Date or 120 days after date of FCDL

• USAC sends Form 486 Receipt Notification Letter to applicant and service provider – Invoices can be paid

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Children’s Internet Protection Act (CIPA)

• Technology measure that a specific technology “that blocks or filters Internet access” to visual depictions– Child pornography– Obscenity– Harmful to Minors

• Internet Safety Policy - include educating minors about social networking websites and cyber bullying awareness – schools must comply– libraries are encouraged in accordance with Fla.Stat. § 257.12(3)

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FIRN GRID: SPI or BEAR, Submit to AT&T

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Invoicing Options: Form 472

Billed Entity Applicant Reimbursement (BEAR) Form

– Filed AFTER you have paid bill in full to service provider (file one or more per year; signed by service provider)

– Reimbursed or credited through the service provider (within 20 days of receipt of funds from USAC)

For the duration of the funding year

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Invoicing Options: Form 474

Service Provider Invoice (SPI) Form

– Applicant gets discounted bills, however must pay their non-discounted share

– Filed by service provider AFTER applicant has been billed for the non-discount portion of the cost of eligible services

For the duration of the funding year

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Document Retention Requirements

• Retain records relating to:– Technology plans– Pre-bidding, bidding, contracts– Application process– Invoices– Provision of services

• At least five (5) years from last date of service• Both applicants and service providers must adhere

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Deadlines

• Form 470 - posted at least 28 days before Form 471• Form 471 - window closes March 20th at 11:59 pm

– Contracts must be executed and signed before Form 471 submitted

– Item 21 attachment before close of window• 60 days from date of FCDL to appeal to USAC or FCC• Form 486 - 120 days from start of service or date FCDL,

whichever later• Invoicing filed no later than 120 days after last date to

receive service or Form 486 NL, whichever later

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Gift Rules

• Cannot accept free service from the vendor unless it is part of the contract and available to everyone (ex. cell phone, Blackberries, filtering, firewall)

• Cannot accept a gift that exceeds $20 per event or $50 per employee from any one vendor in a year

• Exceptions – Modest refreshments not offered as part of a meal (ex. coffee and

donuts at a meeting) are OK– Items with little or no intrinsic value such as certificates and

plaques Gifts are always prohibited, not just during the

competitive bidding process

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Florida E-Rate FY2010

$85,876,592 $90,257,222

$3,541,259

FY 2010 Funding Request: $179,675,073

Funded UnfundedPending

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Funds Left On The Table: District Applications

District Level Applications 1998-2010 (excludes individual school applications)

District Applications Total Requests‘98-2010 Total Cost of Services Funds Requested Rejected Rejected Avg (%)

TOTALS 27,625 $1,759,737,977 $1,223,551,832 $471,900,581 39%

District Committed Amount Amount Received

TOTALS $738,792,267 $608,938,876

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E-rate.Florida listserv at: http://ned1.dms.state.fl.us/mailman/listinfo/e-rate.florida

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Contact Us…We’re Here to Help YOU!

Types of Assistance We Offer at NO COST to you:

• Guidance, Updates and Reminders• One-on-one• Workshops - Tallahassee, Orlando, Jacksonville, Ft. Myers, and Ft.

Lauderdale• Webinars• Communications

• Facebook• Listserv• Twitter• Website • eratehelp@my.dmsservices.com

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eratehelp@mydmsservices.com

How You Can Reach Us

Alford McKenzie State E-rate Coordinator alford.mckenze@dms.myflorida.com

Sylvia Norton State E-rate Coordinator sylvia.norton@dms.myflorida.com