About the Schools and Libraries Program
May 2004 Announcements
Please click on the topic below to view the most recent announcements:
Following is a list of the documents or pages that have changed on this web site since the last posting on updates:
A new topic area called “Training and Outreach” has been created in the left-hand column of the SLD web pages. A new document titled WebEx Recordings now has a link under this topic area. This document provides information on recorded training sessions available to applicants and service providers.
The document Contract Guidance has been updated to include information for applicants if (1) the state files a Form 470 or (2) the applicant files a Form 470 and considers a state master contract as one of the bids.
The document Service Substitutions has been updated to reflect the guidance from the FCC that the SLD can now approve service substitutions if the substituted service costs more than the original service. (If the requested substitution involves an increase in pre-discount cost of an eligible item, the request will be funded at the amount originally approved.)
The document Contact Us has been updated to remove extraneous information.
The link to the Waste, Fraud and Abuse Task Force has been moved from the Quick Links area to the Reference Area. An additional link to Submit a Question has been posted to the new “Training and Outreach” area.
Manufacturers can now enroll in SLD’s Eligible Products Database pilot program. Manufacturers who have completed the enrollment process will soon be able to start uploading data to the pilot program. We expect this upload function to be available no later than July 1, 2004.
You may follow this link for more information on the Eligible Products Database pilot program, or follow the new link under the topic heading “Service Providers” on the left-hand side of this web page.
For any contract mentioned on a Funding Year (FY) 2004 application and funding request or pending FY 2003 application and funding request, where the contract includes maintenance that is more than “basic” in nature, the FCC permits applicants 90 days from the effective date of the Third Report and Order [FCC 03-323; effective 03-11-04] – in other words, until June 9, 2004 – to take one of two actions:
Definition of Basic Maintenance
Basic maintenance services are “necessary” if, but for the maintenance at issue, the connection would not function and serve its intended purpose with the degree of reliability ordinarily provided in the marketplace to entities receiving such services without E-rate discounts. Basic maintenance services do not include services that maintain equipment that is not supported or that enhance the utility of equipment beyond the transport of information, or diagnostic services in excess of those necessary to maintain the equipment’s ability to transport information. (Third Report and Order, para. 23)
If the applicant and the service provider renegotiate a contract, the resulting contract changes should be consistent with the original Form 470 posting. For applicants who prefer to follow the cost allocation approach, this approach is available for signed contracts in existence on March 11, 2004 (the effective date of the Third Report and Order). The burden is on the applicant to justify what portion of the contract price should be allocated to basic maintenance.
Applicants affected by this guidance should, as appropriate:
SLD will not apply the 30% rule, whereby a funding request is denied if 30% or more of the costs are ineligible, to existing contracts based on ineligible non-basic maintenance services prior to contract renegotiation and cost allocation. If SLD determines that the renegotiated contract or cost allocation is appropriate SLD will approve the funding requests at the appropriate pre-discount amount. After contract renegotiation and cost allocation, SLD will apply the 30% rule consistent with normal practice.
A. Applicants should provide immediate notice to SLD that they are renegotiating a contract.
The notice to SLD should provide the following information:
B. After renegotiating the contract, the applicant should provide a report on the renegotiated contract.
The report to SLD should provide the following information:
Cost Allocation of Existing Contracts
In lieu of renegotiating contracts that include maintenance other than basic maintenance, applicants may submit an allocation of costs under the existing contract for basic maintenance and other than basic maintenance. Such applicants should submit to SLD a report with the following information:
Alerting SLD to Contract Renegotiations/Cost Allocations
Applicants who plan to renegotiate and who have already been contacted by a PIA Reviewer may alert the reviewer to the contract renegotiation or to the intention to submit a cost allocation of the contract. Be sure to include all the information noted above.
Contract Renegotiation or Cost Allocation Notices may also be submitted by e-mail, fax or on paper as follows:
The Schools and Libraries Client Service Bureau will be closed on Monday, May 31, 2004 in observance of Memorial Day. The Client Service Bureau will resume normal operations on Tuesday, June 1, 2004 at 8:00 a.m. EDT.
USAC has recently issued a Request for Proposals (RFP) seeking a vendor to help USAC in its expanded outreach efforts to recipients of E-rate discounted services. A central component of the expanded outreach will be site visits, which will:
We expect these site visits to start in late summer. As the vendor provides reports on its visits, USAC will review the information gathered and prepare and post a "Best Practices" document based on that information. USAC will also take this information into account when designing future outreach and education efforts, and explore administrative changes to make the application process run more smoothly.
Vendors interested in responding to this RFP may contact USAC through e-mail.
Interested vendors should include their contact information and pertinent
their companies in the e-mail message.
In general, applicants should not file FCC Form 470 (hereinafter “Form 470”) for a funding year until the SLD posts a notice on this web site that the appropriate form is available. At that time, the paper form will be available for downloading from the Applicant Forms area, and the online drop-down menu option for that funding year will be available on the online Form 470 in the Apply Online area.
However, some applicants may have very long procurement cycles or other reasons for filing a Form 470 for Funding Year (FY) 2005 before this online option is available. We would expect this would usually be the case only where new contracts or contract extensions must be signed, not in cases where non-contracted tariffed or month-to-month services are being sought.
Applicants in this situation may file the current Form 470 either online or on paper by following the instructions for the form, together with the additional guidance below. However, please note that because the Form 470 for FY2005 may be different from the current Form 470, these applicants may be required to file a supplemental form to complete the information required by the FY2005 Form 470. The supplemental filing, if required, will not require the competitive bidding process initiated by the original Form 470 to be re-opened.
A notice will be posted to this web site when the FY2005 Form 470 is available. The guidance below should NOT be used once this notice has been posted.
A separate notice will be posted to this web site when the supplemental form, if necessary, is available. If the supplemental form becomes necessary and is not filed by the deadline that would be set, funding requests that rely on that Form 470 will not be funded.
Guidance for applicants filing on paper:
Guidance for applicants filing online:
For applicants who filed a current Form 470 before this guidance was posted and who are seeking new services or seeking to extend existing contracts, please note the following:
Service providers, please note this guidance and be alert for these Forms 470 if you wish to pursue these business opportunities. You are reminded that you can limit your search to Forms 470 posted on or after a specific date in the Form 470 - Search Posted area of this web site.
Content Last Modified: June 3, 2004
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