Understanding E-Rate Program: Education Discounts & Benefits
The E-Rate Program, also known as Education Rate, offers discounts to schools and libraries for affordable telecommunications and Internet access. Administered by USAC, this program aims to provide crucial funding and support to educational institutions. With an annual budget of $3.9 billion and discounts ranging from 20% to 90%, E-Rate plays a significant role in enhancing digital connectivity for learning environments. Find out more about qualifications, application process, and the impact of E-Rate in transforming educational technology infrastructure.
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SYNNEX GOVSolv Webcast Series E-Rate/ConnectED Education Discounts Tim Evatt, SLED Business Development Manager Registered E-Rate Consultant Certified Grant Specialist time@synnex.com 864-349-4005 Mike Fleetwood Sr Business Development and Services Manager mikefl@synnex.com 864-373-7492
AGENDA 1. 2. 3. 4. 5. 6. What is E-Rate? Qualifications & eligible products/services Forms & reviews Program requirements Timetable and guidelines Wrap-up
E-RATE PROGRAM The E-Rate (Education Rate) program is the street name for the Schools and Libraries Program of the Universal Service Fund. The Universal Service Fund consists of 4 programs: o High Cost Consumer based telephone service. o Lifeline Consumer based telephone service. o Rural Health Care Reduces telecommunication rates to rural health care providers. o Schools & Libraries E-Rate The Universal Service Fund is administered by the Universal Service Administrative Company (USAC), a non-profit corporation under the direction of the Federal Communications Commission (FCC). E-Rate is administered by the Schools & Libraries Division (SLD) of USAC. Schools, libraries and consortia apply for E-Rate discounts to USAC and USAC works in conjunction with service providers to: o Make sure the discounts are passed on to applicants o Assure that a fair and competitive bidding process is in place.
E-RATE PROGRAM Universal Service Fund High Cost USAC Lifeline FCC Rural Healthcare Schools & Libraries E-Rate Education Rate
E-RATE PROGRAM From the 2013 USAC Annual Report: Over 45,000 applications received requesting nearly $5 Billion in E- Rate Program funds. Approximately 95,400 schools/districts, 11,700 libraries Applications funded include: o 18,953 school districts o 8,044 schools o 4,717 libraries o 725 consortiums o 6 statewide 4,203 Service Providers Participating
E-RATE PROGRAM The E-Rate program provides discounts to assist schools and public libraries to attain affordable telecommunications and Internet access. Discounts are funded through a Universal Service Fee charged to companies that provide interstate and/or international telecommunications services. (check your phone bill) Discounts range from 20% to 90% of the cost of products and services prorated to the USDA National School Lunch Program. The E-Rate program annual budget has been increased to $3.9 Billion per program year, and is indexed to inflation.
E-RATE PROGRAM Who qualifies? Individual K-12 schools, public or private School Districts Public libraries Non-profit K-12 schools with endowments less than $50 Million Consortiums. (Any combination of the above.)
E-RATE PROGRAM Eligible Products/Services Category1 (formerly Priority 1) o Telecommunication Services (ATM, DSL, T-1, T3, Satellite service, etc.) o Interconnected Voice Over Internet Protocol (VoIP) o Internet Access Basic firewall protection Domain name service (provided as a standard component of internet access) o Wireless services (not internal, excluding data and text messaging) Eligible voice services are subject to an annual 20 percentage point phase down of support beginning in 2015!
E-RATE PROGRAM Eligible Products/Services Category 2 (Formerly priority 2) o Cabling/connectors o Caching o Software to support eligible equipment o Routers, hubs and switches o LAN and Wireless LAN o Firewalls (basic) o Battery backup/UPS for eligible equipment only o Basic maintenance of eligible equipment o Wireless controller systems o Managed internal broadband services (managed Wi-Fi)
E-RATE PROGRAM Ineligible Products/Services Paging Telephone components Directory assistance charges Text messaging Custom calling Direct inward dialing 900/976 call blocking Inside wire maintenance plans E-mail Web hosting Voice mail Text messaging End-user devices Monitors Speakers Projectors Whiteboards Laptops & desktops Application software Printers & scanners Network security Content filtering (Content filtering is required by the Children s Internet Protection Act CIPA)
E-RATE PROGRAM Ineligible Products/Services Circuit Cards/Components Data Protection (exceptions: firewall & UPS) Interfaces, gateways, antennas (unless otherwise specified) Servers (other than necessary for caching) Software (exception: supporting eligible equipment) Storage devices Telephone components Video components Voice/video IP components (that had been listed in the Data Distribution entry)
E-RATE PROGRAM FCC Form 498 All service providers must file a (FCC Form 498) to request a Service Provider Identification Number (SPIN). Once a SPIN is obtained, service providers can update and review information online at the USAC website. Your customers will have a unique identity number called the Billed Entity Number (BEN). Service providers must file an Annual Certification Form (FCC Form 473). Service providers are now required to provide electronic banking information for payments. This should be done via the USAC website when filing or updating Form 498.
E-RATE PROGRAM FCC Form 470 Opens the competitive bidding process. May be used in conjunction with a formal bid. Filed by applicant (end user). Describes products/services. Identifies the category of products/services Identifies end users. USAC will post 470 s on its website. Also available via SYNNEX Digital Navigator
E-RATE PROGRAM FCC Form 471 Filed by the applicant (end user). Officially requests discount funds from USAC. Item 21 A description of the products/services. o Narrative overview o Line item detail with costs outlining eligible and ineligible products/services o Additional details such as equipment locations and footnotes to line items Receipt Acknowledgement Letter (RAL) Issued to both applicant and service provider indicating that a timely Form 471 has been received and certified.
E-RATE PROGRAM Funding Commitment Decision Letter (FCDL) Issued by USAC in bi-weekly cycles called waves . Establishes that USAC will pay the discount percentage of products/services or details reasons the request is denied. Timeline (Pre Modernization Order): Telecom & Internet (Priority 1), 3 to 9 months after submission of form 471 Connections & Maintenance (Priority 2), 6 to 12 months after submission of form 471
E-RATE PROGRAM FCC Form 486 Filed by applicant Receipt of Service Confirmation Authorizes USAC to pay invoices Notifies USAC of initial service start dates Certifies compliance with the Children s Internet Protection Act (CIPA)
E-RATE PROGRAM Payment Quality Assurance Program (PQA) [After funding] USAC selects a sampling of beneficiaries from each cycle and requests certain documentation for review. Participants (service provider and beneficiaries) have 10 days to comply. Content of the requests will vary but is intended to be relatively simple to provide. PQA personnel are allowed to help with the requests. Compliance is mandatory to continue receiving benefits. Service Providers are rarely involved beyond submitting copies of invoices and/or communications. Typical requests could include: o Documents indicating beneficiaries eligibility status o Technology Plan approval letter o Service provider bills
E-RATE PROGRAM Billing Methods Billed Entity Applicant Reimbursement (BEAR, Form 472) Submitted by the end user to USAC after they have paid providers for service. Service Provider Invoice (SPI, Form 474) Submitted by the service provider to USAC requesting reimbursement for products/services already provided and not paid for by the end user. o Form 486 must have been filed. o Eligible products/services must have been delivered or initiated. o Service provider must have submitted a bill to the end user showing a discounted cost/rate. o USAC will issue a Remittance Statement to the service provider once Form 474 is approved. Only one form can be used per Funding Request Number. Assigned by USAC in the FCDL.
E-RATE PROGRAM Competitive Bidding Process An open and fair process must at a minimum: o Treat ALL bidders the same. o Provide no bidder ANY advanced knowledge of the project information. o Assure all bidders know what is required of them. o Have no secrets in the process. Note: Keep all correspondence between you and your customers.
E-RATE PROGRAM Lowest Corresponding Price The lowest price that a service provider charges to non-residential customers within the same geographic service area as a eligible entity. The only exception is an official finding that this price is no longer compensatory . o Higher cost to deliver services The applicant does not have to ask for LCP. Service Provider are responsible for assurance that LCP is provided to applicants. Includes promotional rates offered for a period greater than 90 days.
E-RATE PROGRAM Gifts to Applicants Gift rules apply year-round, not just during the bidding window. A gift is any item of value given to an applicant or an employee of an applicant. Gift limits: o $20 per incident per person max o $50 per year per person max o Includes meals, raffles, handouts, training, etc. Charitable donations: o Must benefit entire school/library o Can not influence or appear to influence bid selection o Can not reduce or eliminate debt, payments, etc.
E-RATE PROGRAM End users (applicants) funding process Step 1: Determine Eligibility for the E-Rate program Step 3: Open a Competitive Bidding Process (FCC Form 470) Step 4:Select a Service Provider Step 5:Calculate the Discount Level (20 90%) Step 6: Determine Eligible Products/Services Step 7:Submit Application for Program Support (FCC Form 471) Step 8: Application Review conducted by USAC Step 9:Receive Funding Commitment Decision Letter (FCDL) from USAC Step 10:Begin delivery/installation/services Step 11: Invoice USAC (FCC Form 474 or 472)
E-RATE PROGRAM Service Providers (resellers) funding process Step 1: File FCC Form 498 for a Service Provider Identification Number (SPIN). Step 1-b: File or update your FCC Form 473 Annual Certification . Step 2:Review Form 470 s/RFP s and submit your bid for products/services. Step 3: Receive notification of bid results. Step 4: Ascertain the Discount Level for billing purposes and review bid. Step 5: Assure eligibility of products and services (eligible, conditionally eligible, pro-rate if necessary). Step 6: Assist end user with Application for Program Support, FCC Form 471 Item 21 Attachments. Step 7: Review Funding Commitment and the invoicing method, BEAR or SPI. Step 9: Complete installation and/or initiate services and complete FCC Form 486 Receipt of Services. Step 10: Invoice USAC (FCC Form 472 or 474)
E-RATE PROGRAM Timetables & Deadlines Funding Year July 1 through June 30. Form 470 (Services Requested) Filed at least 28 days before Form 471. The last day for an applicant to file a Form 470 online will be February 26, 2015. Form 471 (Services Ordered) The filing window opened January 14 and closes March 26. Form 486 (Receipt of Services) - Received or postmarked no later than 120 days after the date of the USAC Funding Commitment Decision Letter or 120 days after the service start date, whichever is later. Form 472 (BEAR) and Form 474 (SPI) - Received or postmarked no later than 120 days after the date of the Form 486 Notification Letter or 120 days after the last date to receive service, whichever is later.
E-RATE PROGRAM Sequence of Major Forms Form 472 filed by School or Library Form 474 filed by Service Provider Filed by School or Library Filed by School or Library Filed by School or Library Form 470 Form 471 Form 486 Form 472/474 Opens bidding process Requests funding from USAC Receipt of Service Billing Forms Bids are awarded (Form 470 must be Open for a minimum of 28 days) Form 473 Service Provider Annual Certification
E-RATE PROGRAM Annual Schedule Form 470 officially opens the solicitation. Bids/RFP s are optional at local discretion. Funding Year July 1 June 30 Form 471 officially requests funding from E-Rate. Form 471 Window Closes: Mid March Form 470 s Filed July 1 Mid February Last day to open a Form 470: Mid February Form 471 Window Opens: Early January
CONNECTED - E-RATE 2.0 Why E-Rate 2.0? E-Rate Modernization Priority 1 (telecommunications and internet access) requests for FY13 exceeded 100% of the total E-Rate budget, leaving no funding for Priority 2 (internal connections and maintenance). The President s ConnectED initiative AND the State Education Technology Directors Association agree on the need for 100 Mbps bandwidth per 1,000 students.
WIRELESS PLANNING Wireless Surveys Predictive -email googlepros@synnex.com On-site - SKU# 3109549 Suggested Retail $1899.00 A robust wireless infrastructure is critical to a successful Chromebook implementation project. Google Prosprovides no-charge predictive wireless assessments, providing design recommendations with furnished site details and appropriate building plans. Predictive surveys are highly reliable, but given the wireless infrastructure is the backbone of a Chromebook experience, top assurances are provided by experienced technicians that have worked on projects assessing and improving wireless infrastructures for many clients. The wireless survey includes analysis of up to 200,000 Sq. Ft., best practices, recommendations and designs including photo documentation of access point placement and heat maps to prepare the client for the best experience deploying their technology.
E-RATE PROGRAM RULES, DON T DO THIS: Assist (financially) applicants with the non-discounted portion of the project cost, directly or indirectly. Provide RFP template. Interfere with the bidding process. Sign forms for the applicant. Underwrite the applicant s payment. Bribe or offer kick-backs. Violate state and/or local bidding laws. Design the evaluation process. Inflate costs to offset ineligible items. Help review or evaluate competing bids.
RECOMMENDATIONS File FCC Form 498 (SPIN) to get your Service Provider Identification Number as soon as possible, the review may not be timely. Your customer will be assigned a Billed Entity Number (BEN). Update your FCC Form 473 Service Provider Annual Certification. Maintain correct information on USAC site year-round. Use E-File when possible. If you don t file forms online make sure you have the latest version. Maintain any documentation or communication for 10 years past the last day of the funding year or the service delivery date (whichever is latter). Include full details on all billing such as serial numbers, product descriptions, Form 471 Application Number.
RECOMMENDATIONS E-Rate is a year-round task, diligently monitor and communicate with your customer and keep records continuously throughout the year. Keep up with changes in the rules. The FCC can issue Orders, instructions and judgments at any time throughout the year. Carefully read all forms and check for errors. There are civil and criminal penalties for violating any certifications made by signing these forms. Strictly adhere to stated deadlines. There are exceptions, but don t take chances. Extensions may be available. Promptly and accurately respond to any inquiries from USAC. Review school/library s gift rules. Compared to Federal rules, the more strict rules apply.
ADDITIONAL INFORMATION Universal Service Administrative Company website: www.usac.org USAC phone: 888-203-8100 (Client Service Bureau) E-Rate Central (E-Rate consulting for applicants) www.e-ratecentral.com (sign up for newsletter) SYNNEX Government Programs website: www.govsolv.com SYNNEX Digital Navigator www.governmentnavigator.com (Login required, see SYNNEX GOVSolv team.)
ADDITIONAL INFORMATION USAC Services Sign up on the USAC website: Service Provider Webinar o Monthly webinar with USAC personnel (must register on USAC website) o Reports on funding waves and levels o Question & answer session o 1st Wednesday of each month, 3:00 PM ET Schools and Libraries News Brief o Weekly email news and announcements
QUESTIONS? Tim Evatt, SLED Business Development Manager Registered E-Rate Consultant Certified Grant Specialist time@synnex.com 864-349-4005 Mike Fleetwood Sr Business Development and Services Manager mikefl@synnex.com 864-373-7492
