E-Rate Overview

Presented byYour Maine ConnectionAndKannon Communication

Contact Allen J Curtis – Your Maine Connection. Net Gregg Kaloust at www.kannoncomm.com

FirstClass Servers Eligible Priority 2Internal connections

A server can be eligible or not eligible, depending on how it is used. An eligible server must serve as a conduit for information rather than as a source for content. Servers typically provide multiple functions. If servers are used for both eligible and ineligible purposes, the cost of the ineligible portion must be cost allocated. The following uses are eligible:

Dynamic Host Configuration Domain Name Email (FirstClass) Firewall, if included in the standard configuration of

an Internet access service, or Proxy Server

FirstClass Software & Server Email such as FirstClass that is a server-based, shared

product is eligible. If such a software product provides substantial additional functionality that is not eligible, such as archiving, database, workflow, or groupware features, only the email portion of the product is eligible and the cost of the ineligible portion must be cost allocated.

FirstClass software or other eligible components that include content filtering as an integral component part are eligible, but a separately priced content filtering module or product is not eligible.

(Servers) - FirstClass stands for ―electronic mail. FirstClass or electronic mail, is a system for sending text messages and other information across a network.

Web Hosting Web Sites are ineligible, however Web Hosting is,

under the following conditions. 1. Provision of the web site traffic (Bandwidth). 2. Provision of disk space for storing applicant

provided content 3. Provision of File Transfer Protocol (FTP) transfer or

a Web interface to upload files. In addition web hosting may include password-

protected pages, interactive communication features such as blogging and webmail, and other features that facilitate real time interactive communication such as instant messaging and chat.

FirstClass Eligibility (FirstClass) Only Internet based “hosted”

FirstClass accounts are eligible (User Licenses are not). Under Priority 1 Internet access.

FirstClass Servers are eligible under Prior 2 for purchase and installation.

Basic maintenance is covered under Priority 2, and is based on your e-rate percentage.

FirstClass Services (FirstClass) Priority 1

Internet-based FirstClass is eligible. Such a service is explained in the Schools and Libraries’ Eligible Services List for Funding Year 2011 – Page 8 ; Internet Access included in the cost of basic conduit access to the Internet or may be provided at a separate cost, either as a fixed charge and/or on a per-user or other basis.

Some FirstClass services may include substantial ineligible features, such as collaboration tools, and services to ineligible users. Funding is limited strictly to the eligible FirstClass portion. FirstClass archiving is not eligible for discount. Any cost allocation must be based on tangible information that provides a reasonable and appropriate delineation between the eligible and ineligible components.

How to file for greatest success! File form 470 -

FirstClass (Internet Priority 1) Hosted Service Internal Connections (New Server) Priority 2 ▪ Recommend E-Rate Percentage above 70%

Basic Maintenance Existing Server Priority 2▪ Recommend E-Rate Percentage above 70%

Competitive Bidding – Follow accepted Competitive bidding procedures. Make it fair and open to all service providers. Bidder Requirements can are up to the School District with the exception as long as all vendors are evaluated on the requirements put forth. 45% of the bid must be based on Cost.

Contract - Contract can not be signed until after Allowable Contract Date., and before Form 471 filing deadline. This year March 28 2011. Vendors who did not receive contract must be notified.

Form 471

10 Steps to Successful E-rate filing1. Develop a Technology Plan – State Approval2. Open a Competitive Bidding Process - Form

4703. Select a Service Provider 28 days Posted at

SLD4. Determine Your Eligible Services Contracts5. Submit Your Application for Support Form 4716. Submit – Attachment 217. Undergo Application Review PIA/PQA8. Receive Your Funding Decision FCDL9. Begin Receipt of Services – Form 48610. Invoice USAC Form 472

E-rate Forms

• How do I file a program form?– In general, you have three options:• File online, certify on paper• File online, certify online• File on paper, certify on paper

– There are two versions of each online form: standard and interview

*Tip* USAC encourages you to file online, because online filing speeds processing and reduces errors

What to do ????

FirstClass - File under priority 1. FirstClass user accounts – Amount it cost

each person account cost is. IE: x.xx per user.

Contract for Users account signed (yearly) with FirstClass Vendor for Users Account . Not signed until after the ECD ( Eligible Contract Date).

Make sure you follow the Competitive Bidding process. (Extended Contract)

E-rate Categories of Service

Priority 1 (P1) (funded first)Telecommunications Services Internet Access

Priority 2 (P2) (funded beginning with neediest applicants first)

Internal Connections Basic Maintenance of Internal Connections

Technology Plan Elements

You must write a technology plan that contains the following elements:1) Goals and strategies for using technology to improve education or library services2) Needs assessment 3) Staff training 4) Evaluation plan 5) Budget (ONLY for Tech Plans for FY2010 and earlier)

*New Rule* Starting for FY2011, if you are only requesting P1, a technology plan is not required

Your technology plan must be approved by a USAC-certified Technology Plan Approver when your services begin or at the time you file the Form 486—whichever date is earlier

The Purpose of Form 470

• Open a competitive bidding process• Identify and describe your desired categories of

service and the function of the services• Describe the scope of your needs (e.g., a single

school building, a library system, a state network)• Notify potential bidders (service providers) of the

types and quantities of services that you need*Note* RFPs are not required by E-rate but may be

used to describe specific needs and circumstances

Competitive Bidding Requirements

You must ensure that the competitive bidding process is open and fair You must keep all incoming bids/correspondence with bidders and prepare

to evaluate bids equally

All potential bidders have access to the information from your Form 470 and RFP, and they can respond to your requests

The applicant that have a relationship with a service provider who is bidding on your request that would unfairly influence the outcome of a competition or furnish the service provider with “inside” information is a violation of the Competitive Bidding requirements.

Someone other than the applicant or an authorized representative of the applicant who prepares, signs, and submits the Form 470 and certification is a violation of the Competitive Bidding requirements.

The Purpose of Form 471

Provide information on the service providers and eligible services you have chosen

Identify the eligible schools and libraries that will receive services

Include your discount calculation information

Certify your compliance with program rules

Funding Request Number (FRN) – the identification number assigned to a Form 471 Block 5 funding request

Service Provider Identification Number (SPIN) – the identification number assigned by USAC to a service provider

Service providers may have more than one SPIN in order to identify separate business units or states in which they operate

PIA review, USAC reviews your Form(s) 471 to:

Check the eligibility of the schools and libraries and their discount levels

Verify that the services you requested are eligible for discounts

Give you an opportunity to make allowable corrections to your form

In some cases, ask for additional verification of your compliance with program rules

The Purpose of Form 486

Notify USAC that your eligible services have started or been delivered and invoices for those services can be processed and paid

Provide the name of the TPA that approved your technology plan

Report your status of compliance with CIPA

Invoicing USAC (Form 472 and Form 474)

• Billed Entity Applicant Reimbursement (BEAR) Form 472 is filed by the applicant and approved by the service provider after the applicant has paid for the services in full

• Service Provider Invoice (SPI) Form 474 is filed by the service provider after the applicant has been billed for the non-discount portion of the cost of eligible services

Application Deadlines

Form 470 - Posted at least 28 days before the filing of the Form 471, keeping in mind the Form 471 application filing window opening and closing dates

Form 471 - Received or postmarked no later than 11:59 p.m. EST on the day of the close of the Form 471 application filing window (exact date will be posted on our website) Form 486 - Received or postmarked no later than 120 days after the date of the USAC Funding Commitment Decision Letter or the service start date, whichever is later

Form 472/Form 474 - Received or postmarked no later than 120 days after the date of the Form 486 Notification Letter or the last date to receive service, whichever is later

Appeals - Received or postmarked no later than 60 days after the date of USAC's decision letter

New Form 470 and Form 472

Sample Form 470, 472 and instruction http://www.usac.org/sl/tools/latest-news.aspx#112210

Video on Filing several E-Rate Forms http://video.google.com/videoplay?docid=-4193671748340784681#

6th Report and Order

What’s Included? 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

Dark Fiber 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 Up-front construction costs:

Construction on school or library property is eligible Construction beyond the property line is ineligible

Who can provide fiber?

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

Community Use of Schools’ E-rated Services

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 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.)

Funding for Certain Residential Facilities

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

Indexing the Funding Cap to Inflation

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

Disposal of Equipment

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

Ineligible ServicesPriority 2 Basic Maintenance 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.

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.

Contact Information:

E-Rate Website : http://www.usac.org/sl/

E-Rate Phone # 1-888-203-8100

Your Maine Connection – 1-207-685-3257

acurtis@yourmaineconnection.net www.yourmaineconnection.netKannon Communication - 1-888-363-

7378 gkaloust@kannoncom.com www.kannoncom.com

Kannon Communications

Experienced hosting partner Your FirstClass Partner for 15 years Special pricing news: 21st

Anniversary for the 21st Century Replaces last year’s ISTE pricing Discounts to 60%

Your Maine Connection

Allen Curtis 13 years Tech Director Big City

School District 13 years E-Rate Experience Independent E-Rate consultant www.yourmaineconnection.net