USAC Schools and Libraries Program Service Provider Process

USAC Schools and Libraries Program Service Provider Process

CONTENTS Summary...Page 2 Step One - Apply for a SPIN Number...Page 3 Step Two Responding to Bids...Page 8 Step Three - Negotiate a Contract (or arrangement for services)...page 11 Step 4 - Assist with Program Integrity Assurance (PIA) review and Timely Submission of FCC Form 471 and FCC Form 486...Page 12 Step 5 Invoice Review and Submission...Page 14 Attachments...Page 18 1

Summary The Schools and Libraries Program, also commonly referred to as the E-Rate Program, is one of four Universal Service Fund programs managed by USAC. The purpose of the program is to provide discounts that assist schools and libraries in the United States in receiving affordable telecommunications and internet access. The following is an Application Process Flow Chart published by USAC that outlines the steps needed to participate in the Schools and Libraries Program from the role as a service provider as well as an applicant. This document will focus primarily on the service provider s responsibilities. Application Process Flow Chart 2

Step One Apply for a Spin Number A Service Provider Identification Number (SPIN) is a unique nine-digit number assigned to your company by USAC. Companies can have more than one SPIN if they choose to separate business units, types of service, etc. but you must have at least one to participate. Service providers must fill out and file FCC Form 498 with USAC in order to obtain a SPIN. The form is used to collect contact, remittance, and payment information for service providers that receive support from the Federal USF programs. Once the initial Form 498 is submitted, USAC will issue a SPIN number to the service provider. Any changes for the service provider are also submitted through Form 498 revisions such as mergers, consolidations, or ending participation in the program. After completing the SPIN form, USAC will set up a user name and password for you to access the E-file system on USAC s website. The access allows you to update your 498 online, set up permissions for other users in your company, and view or approve certain applicant filed forms. It is important to keep your contact information updated as applicants can view your company information using the SPIN search tool on the USAC website. Form 498 Instructions (Attachment A): To request a new SPIN you would check the Original Application for Spin box. Block 1 General Company Information All fields are required. In this block you would list the company name, any DBA, and complete street address for the applying company. USAC will not accept a P.O. Box. Block 2 General Contact Information All fields are required. In this block you would list the name, title, phone number and fax number of the person who would be contacted with questions regarding billing, collection, and disbursement of funds for your company. The General Contact should be an officer or someone authorized to make certifications on behalf of the company. Only the person listed in this block will be allowed to make revisions to all sections of any existing FCC Form 498. Block 3 Federal EIN and DUNS All fields required. In this section you will list your Federal Employee Identification Number as well as your DUNS (Dunn and Bradstreet Number). DUNS numbers can be found at www.dnb.com. You will also check the appropriate box indicating if your company is a Corporation, Partnership, or Other. 3

The following blocks are not related to the Schools and Libraries program and can be left blank unless you are asking to have them included for future participation in that program: Block(s) Program(s) 4 and 5 High Cost Support 6 and 7 Low Cost Support 8 High and Low Cost Support 9 and 10 Rural Health Care Support Block 11 Schools and Libraries Support Mechanism Financial Institution and Remittance Information All fields required. The purpose of this block is to list the company s banking information for reimbursement - name of bank, account number, and routing number. All reimbursements are done electronically. Contact information for the company is also required in this block. If it is the same contact as listed in Block 2 you simply just check the box as indicated. MUST INCLUDE AN EMAIL ADDRESS IN THIS BLOCK (LINE 106) FOR THE COMPANY CONTACT! Block 12 Company Contact for Schools and Libraries Mechanism This contact should be an employee of the company requesting the SPIN. It does not need to be an officer. This person would receive all correspondence from USAC regarding the Schools and Libraries program and be able to answer questions. This contact would not be allowed to make any revisions to the FCC Form 498. If it is the same contact as listed in Block 2 you simply just check the box as indicated. Block 13 Offsetting Disbursement Payments Against Federal USF Contribution Obligations Companies that participate in the Schools and Libraries Program have the option to have their payments applied to their Federal USF contribution obligations. If you would like to have your payments applied to your USF obligation box 117 must be checked. If no leave box 117 blank. Block 14 Principal Communications Type Required Field. In this block you will select up to 5 boxes that best describe your company s services. You will also enter them as 1, 2, 3, 4, and 5 with 1 being the description of your primary service offered. This information can be found on your 499A and used to complete this block. It is not uncommon for companies to have a single service (i.e. Local Reseller) Block 15 Authorized Contact Signature All fields required. Must be signed by a Company Officer. If the Officer signing the form was also listed in Block 2, check the box. Company s officer s name is printed, their title listed, email address provided, and then is signed and dated. The email will be used as a return confirmation for the form and related correspondence. 4

The following Letter of Certification (Attachment B) is required for the initial Form 498 and must be submitted on company letter head: [COMPANY LETTERHEAD] Date USAC Billing and Disbursement Attn: FCC Form 498 2000 L Street, NW Suite 200 Washington, DC 20036 I certify that I have provided the information on the attached Service Provider Identification Number and Contact Information Form and to the best of my knowledge, information and belief, all information contained in this form is true and that said form is an accurate statement of the affairs of the above-named service provider. Signature Date Printed name of authorized person Title or position of authorized person 5

The FCC Form 498 and Letter of Authorization are then submitted by mail to the following address: Mailing Address: USAC Billing and Disbursement ATTN: FCC Form 498 2000 L Street, N.W. Suite 200 Washington, DC 20036 The time to process the form is approximately 7-10 business days. FCC Forms 499A/Q If you provide telecommunications services and/or Voice over Internet Protocol (VoIP) services, you must also complete the FCC Forms 499A/Q (Annual and Quarterly Telecommunications Reporting Worksheets) and receive a Filer ID, unless you have deminimus status or meet one of the exceptions noted in the Filing Requirements and General Instructions section for Form 499A/Q. The FCC Forms 499-A/Q Filer ID will be tied to your SPIN. FCC Form 473 Service Provider Annual Certification Form The Service Provider Annual Certification Form FCC Form 473 (Attachment C) is required to be submitted for each Funding Year to the administrator in order for the service provider to complete the procedure for submitting an invoice form. This should also be done as part of the initial step and then annually to remain certified. A form needs to be submitted for every SPIN that the company has assigned. This should also be done as part of the initial step once your SPIN is received and then annually to remain certified. To complete the form, the following information would be submitted: Block 1 Service Provider Name SPIN Number Funding Year for which funds were approved e.g. 2014. The funding year supplied here must be the same as the funding year that will be listed in the FCDL for the corresponding FCC Form 471. Contact Person Name Person who should be contacted at your company if there are any questions regarding the form Mailing Address mailing address for the contact person Telephone number of contact person Fax number of contact person Email address of the contact person 6

Block 2 At the top of the page you will enter your SPIN, company name, and contact information as listed in Block 1. The person who signs within Block 2 should be the person who is responsible for submitting the invoices (FCC Form 474) to USAC. Line 22 Signature of authorized person Line 23 Date signed Line 24 Printed name of authorized person Line 25 Title or position of authorized person Line 26 Telephone number of authorized person Line 27 Complete address of authorized person Form should be mailed to: SLD FCC Form 473 P.O. Box 7026 Lawrence, KS 66044-7026 7

Step Two Responding to Bids To respond to a bid, service providers review Schools and Libraries FCC Form 470 forms, RFPs or similar bidding documents posted to the USAC website by schools and libraries (applicants). These documents outline the products and services each school needs and allows service providers to post bids in response to the services requested. The entity that will run the competitive bidding process the applicant, a state procurement agency, or another entity authorized to negotiate on the applicant s behalf must ensure that the competitive bidding process is open and fair and must be prepared to receive and evaluate bids and negotiate with service providers. The FCC rules require applicants to wait at least 28 days after the FCC Form 470 is posted to the USAC website before selecting a service provider, executing any contracts for contracted services, or signing or submitting a FCC Form 471. Open and Fair Competitive Bidding Process The FCC requires the entity filing the FCC Form 470 to ensure that the competitive bidding process is open and fair. Some of the guidelines for fairness are: * All bidders must be treated the same * No bidder can have advance knowledge of the project information * There are no secrets in the process - such as information shared with one bidder but not with others - and that all bidders know what is required of them. A complete list of guidelines can be found at http://www.usac.org/sl/applicants/step02/ competitive-bidding.aspx. With limited exceptions, service providers and potential service providers cannot give gifts to applicants. In addition, the value of free services (e.g., price reductions, promotional offers, free products) must generally be deducted from the pre-discount cost of funding requests. RFPs are not required for Schools and Libraries Program purposes, but applicants must issue them if they are required by state or local competitive bidding rules. Applicants may also choose to issue RFPs to provide more information than they can fit on an FCC Form 470 or for other reasons. If an applicant issues an RFP, the associated FCC Form 470 must indicate where the RFP is available and service providers should review both documents in concert. Reviewing the FCC Form 470 There are two ways for service providers to review Form 470 information submitted by applicants: The FCC Form 470 Search Posted tool allows you to specify one or more criteria state, zip code, applicant type, etc. and then perform a search. The search results will show all FCC Forms 470 that match the criteria you selected. You can then review the forms one by one from the list of results. 8

The FCC Form 470 Download Reports tool provides a means to download most of the information from posted FCC Forms 470 into a spreadsheet. Both tools are located on the USAC website at: http://www.usac.org/sl/tools/default.aspx. Service providers must be in compliance with all program rules and all applicable state and local procurement rules and regulations, including any competitive bidding requirements. You should also review the FCC Form 470 and RFP for specific requirements related to the competitive bidding process and make sure to follow them. During the Bidding Process Service provider actions must not compromise the competitive bidding process. You should avoid conduct that gives the appearance that the competitive bidding requirements have been compromised. You can provide product demonstrations and other information to applicants about the products and services you provide in advance of an applicant s posting of an FCC Form 470. After the FCC Form 470 is posted, you should limit yourself to requests for information needed to submit responsive bids. Note that requests for information should not be generic emails or other communications soliciting business but should be specific and related to posted FCC Forms 470 and RFPs where the available information is not sufficient for you to submit a responsive bid. You should not assist applicants with the creation of their technology plans. You must not prepare, sign, post, or certify an FCC Form 470. You cannot serve as a contact on this form, nor can your contact information appear on this form. Gifts from service providers or potential service providers are prohibited. There are limited exceptions to the gift prohibition, which mirror federal government regulations. You should also be aware of the prohibition of free services. Prohibition of Free Services Applicants and service providers are prohibited from using Schools and Libraries Program support to subsidize the procurement of ineligible or unrequested products and services or from participating in arrangements that have the effect of providing a discount level to applicant(s) greater than that to which the applicant(s) are entitled. o o The value of all price reductions, promotional offers, and free products or services must be deducted from the pre-discount cost of services indicated in funding requests. Costs, trade-in allowances, and discounts must be fairly and appropriately derived: The cost of eligible components may not be inflated in order to compensate for discounts of other components not included in funding requests. 9

o o o o Applicants may not trade in equipment purchased with E-Rate funds sooner than five years after the date the equipment was installed. If the equipment is traded in, it cannot be used to pay the applicant s non-discount share on other eligible equipment. A proportionate cost allocation is required between eligible and ineligible components. A cost allocation is not required when the free product or service is available to the public or a class of subscribers broader than just E-Rate recipients. Example: Many cell phones are free or available at discounted prices with the purchase of a two-year service contract. E-Rate applicants are free to take advantage of these deals without cost allocation, but cannot accept other equipment with service arrangements that are not otherwise available to some segment of the public or class of users. Item 21 Attachment and the Asset Register/Inventory List must identify the ineligible components including product name, model number & location. Each Block 5 funding request on the FCC Form 471 (Description of Services Ordered and Certification Form) must include a description of the products and services for which discounts are sought. This description is known as an Item 21 Attachment. Funding requests or applications inconsistent with these provisions are contrary to program rules and will be denied. The 30% Rule, which provides that a funding request can continue to be processed if the value of the ineligible products and services is less than 30 percent of the total amount of the funding request, does not apply in cases of serious violations of program rules. In addition, applicants and service providers are cautioned that willful violations of program rules can result in criminal penalties. The services you provide may be eligible, ineligible, or partially or conditionally eligible. Your bid responses (and contracts, if you are chosen as the service provider) should clearly identify ineligible services and provide cost allocations for services that are partially or conditionally eligible. Additional information regarding the use of cost allocations can be found on the USAC website at: http://www.usac.org/sl/applicants/beforeyoubegin/eligible-services/cost-allocations.aspx If your bid is chosen as the most cost effective by an applicant, you and the applicant can negotiate a contract (for services other than those provided under tariff or a month-to-month arrangement), and you can prepare to assist the applicant as needed with filing the FCC Form 471 and undergoing application review. 10

Step Three - Negotiate a Contract (or arrangement for services) If your bid is chosen as the most cost effective by an applicant, you and the applicant can negotiate a contract (for services other than those provided under tariff or a month-to-month arrangement), and you can prepare to assist the applicant as needed with filing the FCC Form 471 and undergoing application review. Contracts Applicants can receive services under tariff or a month-to-month arrangement where a contract is not necessary. They can also sign a contract for one or more years, or a contract with voluntary extensions. * If a contract is signed, the services provided under that contract are considered contracted services, even if they are provided under tariff. * In general, internal connections and basic maintenance of internal connections are provided under contracts. * The deadline for delivery and installation of non-recurring services is September 30 rather than June 30. You should keep this in mind when determining the contract expiration date for these services. You should review the posted information on contracts, state master contracts, and state replacement contracts on the USAC website and there are important guidelines listed to assist you in drafting an appropriate contract. Note that in the case of state replacement contracts, states (and applicants that rely on the state replacement contracts) must precisely follow specific steps for services provided under those contracts to be eligible for discounts. 11

Step 4 - Assist Applicant with Program Integrity Assurance (PIA) Review and Timely Submission of FCC Form 471 and FCC Form 486 From the time you are selected as the applicant s service provider through the time invoicing occurs, there are three main items that need to occur that you can assist the applicant with. Item 1 FCC Form 471 The FCC Form 471 (Description of Services Ordered and Certification Form) is filed by the applicant to request Schools and Libraries Program support and must include a detailed description of the products and services to be received. This is referred to as an Item 21 Attachment. Some Item 21 attachments are easy to complete, but you can offer to assist applicants with those that are more complex, such as those that include network diagrams, specific configurations, or other technical information. * This form also requests information on the numbers of Internet connections and their speeds, which applicants may not know. * Funding may be reduced or denied if applicants miss certain deadlines, especially those for the FCC Form 471 and FCC Form 486. You can remind applicants to file these forms in a timely manner. One the FCC Form 471 is submitted, USAC issues an applicant version and a service provider version of the FCC Form 471 Receipt Acknowledgment Letter (RAL) after an FCC Form 471 is certified (Attachment D). You can subscribe to receive and electronic version. The letter contains many of the details submitted on the form and provides a means to correct mistakes. If you notice incorrect information on your copy of the RAL, notify the applicant so corrections can be made. Step 2 Program Integrity Assurance Program Integrity Assurance (PIA) reviewers at USAC review submitted FCC Forms 471 for compliance with program rules, and may have questions about technical aspects of the services featured on the forms. Service providers can assist the applicant in preparing responses to USAC s questions except for questions about the applicant s service provider/vendor selection process. Once applicants have completed PIA review and USAC has issued funding decisions in one or more Funding Commitment Decision Letter (FCDL), you can begin preparations to provide discounted services for the commitments that feature your SPIN. 12

Step 3 FCC Form 486 After an FCDL has been issued and services have started, applicants file an FCC Form 486 (Receipt of Service Confirmation Form). The FCC Form 486 informs USAC that: Services approved for discounts have started and invoicing can begin. Note that applicants can file FCC Form 486 before services have started if they have received an FCDL, they have agreed with you that services will start in July (beginning of each funding year), and they can accurately make all of the certifications on the form. The applicant s technology plan, if one is required, has been approved by a USAC Certified Technology Plan Approver. Starting with Funding Year (FY) 2011, technology plans are required for Priority 2 services only. The applicant and/or the recipients of service it represents are in compliance with the Children s Internet Protection Act (CIPA). Note that if the funding requests are only for telecommunications services and/or Interconnected Voice over Internet Protocol (VoIP) services, CIPA does not apply. These requirements are important to you because funding may be reduced by USAC if an applicant is found to be out of compliance with technology plan or CIPA requirements during all or part of a funding year. Filing Deadlines The FCC Form 486 must be certified no later than 120 days after the service start date or 120 days after the date of the Funding Commitment Decision Letter (FCDL), whichever is later. Filing this form late can result in a reduction in funding; the later the filing date, the greater the reduction. FCC Form 486 Notification Letter After USAC completes the processing of an FCC Form 486, USAC will issue an applicant version and a provider version of an FCC Form 486 Notification Letter (Attachment E). If USAC was required to adjust the service start date due to a compliance issue or a late-filed form, the service start date in the letter will be marked with an asterisk and followed by an explanation of the reason for the adjustment. Note that USAC will not provide discounts for services delivered before the service start date on record. You or the applicant can request a service delivery extension date if more time is needed and the FRN was not automatically extended by USAC. 13

Step 5 Invoice Review After USAC has processed the FCC Form 486 and you have begun providing the associated services, you or the applicant can invoice USAC for the discount share of those services. USAC can process invoices from either the applicant or the service provider after the following have completed: * USAC has issued a Funding Commitment Decision Letter (FCDL) with a positive funding commitment; * Services have started (Note that USAC can process invoices for progress payments after review of the contract if it includes a specific payment schedule); * The applicant has submitted, and USAC has successfully processed, an FCC Form 486; and * The service provider has filed an FCC Form 473 for the relevant funding year. Two options for invoicing USAC exist; however, once USAC has processed an invoice for a Funding Request Number (FRN), that method of invoicing must be used for that FRN for the remainder of the invoicing process. Invoicing Method #1 Applicants file the FCC Form 472, Billed Entity Applicant Reimbursement (BEAR) Form (Attachment F) if they have paid you in full for the services and want to be reimbursed for the discount amount. You must approve the form before it is submitted to USAC. USAC will review the BEAR Form and process a payment to you if payment is approved. You then pass the reimbursement amount on to the applicant. Applicants can file BEAR Forms online or on paper. You approve a paper BEAR Form by completing page 4 of the paper form and returning it to the applicant. The applicant then includes the completed page 4 in its submission. If the applicant files a BEAR Form online, you must approve it online. Also, USAC issues a copy of the applicant s BEAR Notification Letter to you after a BEAR Form is processed. If there is a reduction or denial of the amount on the BEAR Form, you can refer to the invoice error code(s) featured on the letter for more information. Invoicing Method #2 The Service Provider files the FCC Form 474, Service Provider Invoice (SPI) Form if you have billed the applicant for the non-discount amount (the applicant s share of the cost) and want to be reimbursed for the discount amount. 14

Prior to submitting the FCC Form 474 for reimbursement, you must confirm that a Funding Commitment Decision Letter (FCDL) was issued by the Schools and Libraries Division of USAC. USAC will issue a FCDL to each applicant who submitted a FCC Form 471 and to each Service Provider whose SPIN was identified in the FCC Form 471. USAC will review the SPI Form and process a payment to you if payment is approved. The applicant is always required to pay the non-discounted portion of the cost of the services. Filing Service Provider Invoice (FCC Form 474) Forms Service Provider Invoice (SPI) is FCC Form 474 and does not contain certifications. Consequently, you have a number of options for completing and submitting a SPI Form: You can file at www. Usac.org. You can file electronically. Service providers interested in submitting invoices to USAC electronically should email USAC and request setup information. In your email, you must include your SPIN and the email address where you wish to receive Invoice Status Reports. USAC will then send you a return email explaining the steps in the process. You can then submit your invoice information to USAC in a comma-delimited file. You can file on paper and mail to the following address: SLD SPI FCC Form 474 P.O. Box 7026 Lawrence, KS 66044-7026 When to File the FCC Form 474 The following conditions must be met prior to submitting the FCC Form 474 (Attachment G): upon receipt of acknowledgement from USAC that the applicant has filed Form 486 Receipt of Services Confirmation Form; upon providing eligible services to applicant; after billing the applicant showing the total prediscount amount, the discounted portion, and the applicant s obligation to pay the undiscounted amount; after the service provider completes and submits it Annual Service Provider Certification Form, (FCC Form 473), to USAC and; no later than 120 days after the end of the funding year service delivery period. The delivery period for recurring services is typically July 1 through June 30 of the following year. The period for non-recurring services is typically July 1 through September 30 of the following year. 15

Instructions for the FCC Form 474 Block 1 Service Provider Name SPIN Number Contact Person Name Person who should be contacted at your company if there are any questions regarding the form Telephone number, fax number, and email address Total invoice amount provide the total amount of the invoice. The amount should be the sum of the entries in column 13 which is located in Block 2. Block 2 At the top of the page you will enter your SPIN, company name, and contact information as listed in Block 1. Column 6 FCC Form 471 Application Number this can be found on the FCDL. Column 7 Funding Request Number (FRN) this can also be found on the FCDL. Column 8 Billing Frequency Indicate the billing frequency (i.e. monthly, quarterly, etc.). Column 9 and Column 10 only one of these should be completed NOT BOTH. o Column 9 is for reimbursement for recurring services and multiple installments of o non-recurring services and is reported in a month/year format. Column 10 is for reimbursement of non-recurring services that are billed only once and is reported in a month/day/year format. Column 11 Total (UNDISCOUNTED) Amount for Service per FRN This would be the total monthly and one-time price for eligible services provided PRIOR to applying any discounts. Column 12 Discount Rate in this column you would list the applicant s approved discount percentage for each FRN. It can be found on the FCDL. Column 13 Calculate Column 11 by Column 12 to get the entry for Column 13. This will be the amount the service provider is asking USAC for reimbursement for. Block 3 At the top of the page you will enter your SPIN, company name, and contact information as listed in Block 1. Line 14 Signature of authorized person this is the company contact who is authorized to sign the claim Line 15 Date date claim was signed Line 16 Printed name of authorized person Line 17 Title of Authorized person Line 18 Telephone number of authorized person Line 19 Complete address of authorized person 16

USAC issues you an Invoice Status Report after processing a SPI Form. You can subscribe to receive the information in this report electronically. As above, if there is a reduction or denial of the amount on the SPI Form, you can refer to the invoice error code(s) featured on the letter for more information. Filing Deadlines Invoices must be submitted no later than 120 days after the last day to receive service or 120 days after the FCC Form 486 Notification Letter date, whichever is later. If you miss this deadline you can request an invoice deadline extension. 17

Attachments Attachment A FCC Form 498 Attachment B Letter of Certification Attachment C FCC Form 473 Attachment D FCC Form 471 Examples of Receipt Acknowledgement Letters (RAL) Attachment E FCC Form 486 Attachment F FCC Form 472 BEAR Attachment G FCC Form 474 18

School and Libraries Program Service Provider Process Attachment A FCC Form 498 19

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School and Libraries Program Service Provider Process Attachment B Letter of Certification 30

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School and Libraries Program Service Provider Process Attachment C FCC Form 473 32

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School and Libraries Program Service Provider Process Attachment D FCC Form 471 Examples of Receipt Acknowledgment Letters 36

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School and Libraries Program Service Provider Process Attachment E FCC Form 486 45

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School and Libraries Program Service Provider Process Attachment F FCC Form 472 - BEAR Form 53

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School and Libraries Program Service Provider Process Attachment G FCC Form 474 62

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