E-Rate Services - E-Rate Process Management Overview

E-Rate Funding Process

E-Rate Services will assist you though the eleven (11) steps of the E-Rate Filing and Implementation process.  This page provides detail for each step, as well as links to all forms and details.

erate process diagram

Step 1: Determine Eligibility

Federal and state laws determine eligibility of schools, school districts, and libraries.

Schools

In general, a school is eligible for Schools and Libraries support if it meets the following eligibility requirements:

  • Schools must provide elementary or secondary education as determined under state law.
  • Schools may be public or private institutional day or residential schools, or public charter schools.
  • Schools must operate as non-profit businesses.
  • Schools cannot have an endowment exceeding $50 million.

In many cases, non-traditional facilities and students may be eligible.

Libraries
Libraries must meet the statutory definition of library or library consortium found in the 1996 Library Services and Technology Act (Pub. L. 104-208) (LSTA) to meet eligibility requirements for Schools and Libraries support.

  • Libraries must be eligible for assistance from a state library administrative agency under that Act.
  • Libraries must have budgets completely separate from any schools (including, but not limited to, elementary and secondary schools, colleges and universities).
  • Libraries cannot operate as for-profit businesses.

 

Step 2: Develop an E-Rate Technology Plan

The application process for Schools and Libraries support begins with a technology assessment and a technology plan.

Schools, school districts, and libraries that want to apply for Schools and Libraries support, commonly referred to as "E-rate," must first prepare a technology plan. An approved technology plan sets out how information technology and telecommunications infrastructure will be used to achieve educational goals, specific curriculum reforms, or library service improvements.

A technology plan designed to improve education or library services should cover the entire funding year (July 1 to June 30) but not more than three years. The plan must contain the following five elements:

  • Goals and realistic strategy for using telecommunications and information technology
  • A professional development strategy
  • An assessment of telecommunication services, hardware, software, and other services needed
  • Budget resources
  • Ongoing evaluation process

The technology plan must be approved by a USAC-certified technology plan approver before discounted services can begin. The state is the certified technology plan approver for libraries and public schools. Non-public schools and other entities that do not secure approval of their technology plan from their states may locate a USAC-certified technology plan approver here.

Applicants that seek Schools and Libraries Program support only for basic telephone service do not need a technology plan.

 

Step 3: Open a Competitive Bidding Process

Applicants must file the Description of Services Requested and Certification Form (Form 470) to begin the competitive process and must ensure an open and fair competitive bidding process for specific products.

Applicants must file a new Form 470 each funding year for requests for tariffed or month-to-month services and for new contractual services. When the Form 470 is filed, USAC will make it available to interested service providers by posting it to the USAC website.

Applicants must:

  • Describe specific services or functions for support
  • Identify the correct category of services: telecommunications, Internet access, internal connections, or basic maintenance of internal connections
  • Identify recipients of services for support
  • Follow all applicable state and local procurement laws
  • Wait 28 days after the Form 470 is posted to the USAC website or after public availability of your Request for Proposals (RFP), whichever is later, before selecting a vendor or executing a contract (see Step 4: Select the Most Cost-Effective Service Provider)

Applicants may:

  • Use RFPs or other solicitation methods tailored to specific needs and circumstances in addition to the required Form 470.

The Form 470 must be completed by the entity that will negotiate for eligible products and services with potential service providers. A service provider that participates in the competitive bidding process as a bidder cannot be involved in the preparation or certification of the entity's Form 470.

A new Form 470 is not required if an applicant intends to seek discounts on services provided under a multi-year contract executed under a posted Form 470 in a prior funding year.

Step 4:  Select a Service Provider

Applicants must select the most cost-effective provider of the desired products or services eligible for support, with price as the primary factor.

Waiting Period. At the conclusion of the 28-day waiting period after the Description of Services Requested and Certification Form (Form 470) is posted on the USAC website, the applicant may select a vendor for tariffed or month-to-month services or execute a contract for new contractual services.

Bid Evaluation. Applicants must construct an evaluation for consideration of bids received in response to the posting of the Form 470 that makes price the primary factor in the selection of a vendor.

Contract Guidance. Applicants may also choose vendors from a State Master Contract, execute multi-year contracts pursuant to a Form 470, and enter into voluntary contract extensions, but certain additional contract requirements apply. In all cases, applicants must comply with state and local procurement laws.

Document Retention. Applicants must save all documentation pertaining to the competitive bidding process and vendor selection for five years. Applicants must certify and acknowledge on the Form 470 and the Services Ordered and Certification Form (Form 471) that they may be audited and that they must retain all records that can verify the accuracy of information provided.

Step 5: Calculate a discount Level

An applicant that applies for Schools and Libraries Program support for eligible services must calculate the discount percentage that it and the schools or libraries it represents are eligible to receive.

Applicants use the Services Ordered and Certification Form (Form 471) to calculate the discount and begin by listing the recipients of services for support. FCC rules include a discount matrix that takes into consideration poverty level and the urban or rural location of the participating entity. For detailed information about how to calculate the percentage discount and complete the Block 4 Worksheet of Form 471, read Form 471 Instructions for the Block 4 Worksheet.

Schools

  • The primary measure for determining Schools and Libraries support discounts is the percentage of students eligible for free and reduced lunches under the National School Lunch Program (NSLP), calculated by individual school.
  • A school district applicant calculates its shared discount by calculating a weighted average of the discounts of all individual schools included in the school district.

Libraries

  • Library branches or outlets must obtain and use the NSLP data for the public school district in which they are located to calculate the discount.
  • A library system applicant calculates its shared discount by calculating an average of the discounts of all library branches or outlets included in the system.

Consortia

  • A consortium calculates its shared discount by calculating the average of the discounts of all eligible libraries and schools that are included in its membership.

Urban or Rural

  • Every school or library in the United States is located in either a rural or an urban area, based on Metropolitan Statistical Area (MSA) data.
  • The applicant must determine if the individual school or library is rural or urban to properly calculate its percentage discount.

Non-instructional Facilities

Non-instructional facilities that serve educational purposes may be eligible to receive discounts on telecommunications and Internet access services (Priority 1 services).

Step 6: Determine Your Eligible Services

Applicants may request discounts for eligible products and services delivered to eligible entities for eligible purposes.

Applicants file a Services Ordered and Certification Form (Form 471) to request discounts on the cost of eligible services to be delivered to eligible schools, libraries, and consortia of these entities. Eligibility for discounts requires that the product or service is eligible and that it is put to an eligible use at an eligible location by an eligible entity.

Four categories of eligible services have been established by the Federal Communications Commission (FCC):

  • - Telecommunications Services
  • - Internet Access
  • - Internal Connections
  • - Basic Maintenance of Internal Connections

Services and products may be eligible, not eligible, or conditionally eligible for support. The schools and libraries Eligible Services List provides details about eligible equipment and services and the conditions under which they are eligible.

Eligibility is based on criteria established by statute and FCC rules.

 

Step 7: Submit your Application for Program Support

The Services Ordered and Certification Form (Form 471) is the key form used to assure that schools and libraries receive appropriate Universal Service Fund support, comply with eligibility requirements, and take steps to use the supported services effectively.

What to File -

Form 471 - Services Ordered and Certification Form

The Form 471:

  1. May be filed online or on paper
  2. Must be certified by an authorized person to be considered complete
  3. Must be postmarked or submitted online prior to the close of the application filing window for the funding year to be considered as filed within the window

 

Form 471 Item 21 Attachment

Services and products for which discounts are requested must be described on the Item 21 Attachment. Beginning with Funding Year 2006, the Item 21 Attachment may be created and submitted online.

 

Form 471 Item 25 Certification

Applicants must certify that they have secured access to the resources necessary to pay for:

  1. The non-discounted portion of the costs for requested eligible services within the funding year
  2. The ineligible products and services necessary to make effective use of the eligible services requested

 

After You File

Receipt Acknowledgement Letter

USAC will issue a Form 471 Receipt Acknowledgment Letter (RAL) to both the applicant and service provider upon successful data entry of the Form 471 and certification. Applicants should review the RAL and submit allowable corrections to USAC.

Step 8: Undergo Application Review

Each application is reviewed to ensure that Universal Service Fund support is committed only for eligible products and services as well as eligible uses by eligible entities.

Review of All Applications
USAC reviews all Services Ordered and Certification Forms (Forms 471) to verify the accuracy of discount percentages and ensure that support is committed only for eligible products and services. USAC is committed to issuing timely Funding Commitment Decision Letters but its ability to meet that goal depends on efficient processing of application reviews.

Applicants can help speed up application reviews by:

  • - Submitting a complete Form 471 including required certifications and Item 21
  • - Attachments for each funding request
  • - Responding to requests for additional or clarifying information within 15 days
  • - Verifying that USAC has correct contact information

 

Selective Reviews
USAC selects some applicants for a Selective Review to ensure that they are following certain FCC program rules. Applicants are asked to provide the following information covering all of the billed entity's Forms 471 for the funding year:

  • Documentation regarding their competitive bidding and vendor selection process
  • Documentation of their ability to pay their share of the cost of the products and services eligible for schools and libraries program support
  • Proof that they have obtained the (ineligible) hardware, software, professional development, electrical capacity or other retrofitting, and maintenance necessary to make effective use of the requested discounts

View a sample Selective Review Information Request. Service providers may not provide responses to Selective Review Information Requests.

The result of a Selective Review may be that funding is approved or denied. The applicant may also receive a Resource Deficiency Advisory that explains the areas USAC finds to be deficient. Applicants should consider increasing their level of investment in identified areas since USAC may follow up in subsequent years regarding the necessary resources.

Applicants may not receive direct or indirect help from service providers to pay their non-discounted share.

 

Step 9: Receive your Funding Decision

Following application review, USAC issues one or more Funding Commitment Decision Letters (FCDLs) to both the applicant and the service provider(s).

Program funding commitment decisions are issued in "waves," or regular cycles. Generally, funding year commitment waves will run on a regular bi-weekly schedule until such time that the only remaining applications are those held for heightened scrutiny.

For all certified, in-window applications, FCC rules of priority are observed in processing funding requests:

  • Priority One - all eligible telecommunications and Internet access services are fully funded first
  • Priority Two - eligible requests for internal connections and basic maintenance of internal connections from applicants with highest discount levels receive next priority

Applicants should carefully review their Funding Commitment Decision Letter (FCDL) for details of approved or denied requests. Prior to the start of services for which Universal Service Fund support is approved, the applicant should review its technology plan status and its status concerning compliance with the Children's Internet Protection Act (CIPA)

If an applicant believes that its funding request has been incorrectly reduced or denied, the applicant can appeal the decision to USAC or to the FCC.

Step 10: Begin Receipt of Services

Before USAC can pay invoices, the billed entity must confirm: the start date of services, approval of the technology plan, and compliance with the Children's Internet Protection Act (CIPA).

To help USAC ensure that Universal Service Fund support is paid only for services that have actually been delivered, applicants must verify the start date of services and submit a Receipt of Service Confirmation Form (Form 486).

Technology plans must be approved before services start and before the applicant submits the Form 486. Applicants must be able to provide a technology plan approval letter issued by a USAC-certified technology plan approver. If the approval letter is posted on a website, the applicant should print and retain a copy.

CIPA certifications are made on either Form 486 or the Certification by Administrative Authority to Billed Entity of Compliance with the Children's Internet Protection Act (Form 479) depending on whether the applicant is the billed entity.

  • If the applicant is the billed entity, it must certify on Form 486 that it is in compliance with CIPA or that CIPA does not apply because funding requests are only for telecommunications services.
  • If the applicant is not the billed entity, it must submit Form 479 to the billed entity; the billed entity, as the Administrative Authority, then submits Form 486 to USAC with the CIPA certification. Applicants that are not the billed entity do not submit Form 479 to USAC.

Applicants should read Form 486 Filing Information, Form 486 Instructions, and Form 479 Instructions for further information including required filing dates.

 

Step 11: Invoice USAC

After eligible services have been delivered, service providers and school and library applicants may submit invoices for Universal Service Fund (USF) support.

FCC rules require USAC to pay universal service support to service providers and not directly to applicants. However, two invoice methods and program forms exist:

Service Provider Invoice (SPI) (Form 474)

Service providers may submit Form 474 to USAC seeking payment for services:

  • After the service provider provides the services or equipment to the applicant
  • After the billed entity submits the Receipt of Service Confirmation Form (Form 486) verifying the service start date
  • After the service provider has provided a discounted bill to the billed entity

Billed Entity Applicant Reimbursement (BEAR) Form (Form 472)

The billed entity and the service provider must jointly submit the BEAR form:

  • Following the receipt of discounted eligible services
  • After the billed entity submits the Form 486
  • After the billed entity has paid the total amount (including the applicant's non-discount share and the amount of USF support to be paid by USAC) to the service provider

Determining Invoice Method
Applicants should work with service providers to include a provision in contracts or service agreements specifying whether customer bills will be the total cost of services or only the customer's non-discount share. Service providers may provide applicants with discounted bills and submit the SPI to request payment from USAC for the amount of USF support to be paid. Service providers and applicants may jointly submit the BEAR when the applicant has paid the entire cost of services to the service provider. In all cases, USAC pays support to the service provider.

Service Delivery and Invoice Deadlines
The date of the Funding Commitment Decision Letter determines deadlines for service delivery and invoices. Under certain conditions, applicants may request extensions of program deadlines.

E-Rate Information Form

Name:
E-mail address:
Telephone:
Request Information on:
Comments:
  • Site Design by StoneRaven Media
  • © Copyright 2008 Global Communications Group, Inc. All Rights Reserved.