Schools and Libraries

Step 4: State Replacement Contracts

Applicants may use a state master contract that was competitively bid and put in place by a state government entity for use by others to replace an expiring state master contract as long as appropriate contract procedures based on when the state master contract expires are followed.  The state entity is required to post an FCC Form 470, Description of Services Requested and Certification Form, for at least 28 days prior to signing a state master contract.

Funding years run from July 1st of the funding year through June 30th of the following year. If you are using or intend to use a state master contract for eligible services and the master contract expires before June 30 of the funding year for an application, you may be eligible for support for the full funding year. However, the appropriate state replacement contract (SRC) procedure must be followed. Two scenarios include state master contracts expiring before the funding year and state master contracts expiring during the funding year.

Scenario A - State master contracts expiring before the funding year
A state master contract may expire BEFORE the start of the funding year for an application. In this case, your state intends to select a service provider as part of a competitive bidding process to provide services under a new state master contract, but that process has not been completed and you are not yet sure who that service provider will be.

If the state master contract expires BEFORE July 1 of the funding year for an application (BEFORE the funding year) please follow the directions below.

  1. The Billed Entity must fill out a Form 471 Block 5 Funding Request covering the REPLACEMENT master contract, using the instructions below:
      • Item 12: use the establishing Form 470 number for the expiring master contract.
      • Item 13: use SPIN number 143999999.
      • Item 14: use STATE REPLACEMENT CONTRACT as the Service Provider name. (Although a commitment of funds can be made towards the state replacement contract, no funds will be authorized for disbursement until there has been a SPIN change; see Step 3, below.)
      • Item 15: use "SRC" as the prefix in front of the expiring master contract number. (For example, if the expiring master contract number is WNT-98-005, use the number SRCWNT-98-005 as the contract number.)
      • Item 16: use the same Billing Account Number (if applicable) as used for the expiring master contract.
      • Item 17: the Allowable Vendor Selection/Contract Date will be pre-populated by the system (it will be related to the Form 470 number that was used in Item 12.) Paper filers may leave this item blank.
      • Item 18: the Contract Award Date should be the day AFTER the expiration of the expiring master contract.
      • Item 19: the Service Start Date should be July 1 of the funding year.
      • Item 20a: the Contract Expiration Date will be the end of the funding year. (You will reflect the true expiration date of the replacement contract on your subsequent funding year Form 471.)
      • Item 21: submit a copy of the expiring master contract as the attachment for Description of Service.
      • Item 22: indicate the entities that will receive this service under the replacement master contract.
      • Item 23: For both recurring charges and one-time charges, the funding commitment will be limited to charges contained in the expiring master contract. That means the monthly charges MUST be no greater than what is contained in the expiring master contract. (If the replacement master contract charges are different, they can be reflected in Forms 471 filed in subsequent years.)
      • If there was no provision for one-time charges under the expiring master contract, but there is such a provision in the replacement master contract, there can be no claim for one-time charges under the replacement master contract for this funding year. (You may claim one-time charges incurred in subsequent program years in Forms 471 filed in subsequent years.)
  2. When the state is ready to begin the competitive procurement process for the replacement master contract, the state entity negotiating the replacement master contract will be required to file a Form 470 (and have it posted for a minimum of 28 days prior to signing the replacement contract). If the state does NOT file the Form 470, you will NOT be eligible for discounts for the replacement master contract for the program year.
  3. After the state replacement master contract has been signed and dated by the state, you must request a SPIN change (replacing the service provider designation "state replacement contract" with the name of the actual vendor who has been awarded the replacement master contract) by marking up the relevant pages from your Funding Commitment Decision Letter (FCDL). On your FCDL you must indicate:
  4. the appropriate Funding Request Number (FRN)
  5. the actual service provider name (attach the appropriate page of the contract)
  6. the actual service provider's SPIN
  7. the state entity's Form 470 Application Number which was filed for the replacement master contract
  8. the contract award date (attach the appropriate page of the contract)
  9. the service start date
  10. the service end date
  11. the replacement contract number
  12. the ACTUAL expiration date of the replacement contract (attach the appropriate page of the contract)
  13. the effective date of the replacement contract
  14. You must SIGN and date the marked up page(s) of the FCDL. Return it by mail or express delivery to:

    State Replacement Contracts
    Schools and Libraries Division - Correspondence Unit
    30 Lanidex Plaza West
    PO Box 685
    Parsippany, NJ 07054-0685

  15. You will receive notice when the SPIN change has been made.
  16. Once you receive notification that the SPIN change has been made, you may submit a Form 486 for the FRN(s) using the replacement master contract information.
  17. In subsequent program years when you file a Form 471, you will reference the state entity's Form 470 application number as the establishing Form 470 for this replacement master contract.

Scenario B - State master contracts expiring during the funding year
A state master contract may expire DURING the funding year for which you are applying for discounts. In this second situation, the current service provider will provide services during part of the funding year under that state master contract, but your state intends to select a service provider as part of a competitive bidding process to provide services under a new state master contract during the remainder of the funding year. Again, that process has not been completed and you are not yet sure who the new service provider will be.

If the state master contract expires BETWEEN July 1 and June 30 of the funding year for an application (DURING the funding year), please follow the directions below.

In this case, the Billed Entity must fill out two Form 471 Block 5 Funding Requests. You must put your funding request(s) for the expiring master contract and the replacement master contract on the SAME Form 471.

  1. For EACH funding request that you have under an expiring master contract, complete one Block 5 covering the EXPIRING master contract.
  2. For EACH funding request that you have under an expiring master contract, complete an additional Block 5 covering the REPLACEMENT master contract, using the instructions below:
      • Item 12: use the establishing Form 470 number for the expiring master contract.
      • Item 13: use SPIN number 143999999.
      • Item 14: use STATE REPLACEMENT CONTRACT as the Service Provider name. (Although a commitment of funds can be made towards the state replacement contract, no funds will be authorized for disbursement until there has been a SPIN change; see Step 4, below.)
      • Item 15: use "SRC" as the prefix in front of the expiring master contract number. (For example, if the expiring master contract number is WNT-98-005, use the number SRCWNT-98-005 as the contract number.)
      • Item 16: use the same Billing Account number (if applicable) as used for the expiring master contract.
      • Item 17: the Allowable Vendor Selection/Contract Date will be pre-populated by the system (it will be related to the Form 470 number that was used in Item 12.) Paper filers may leave this Item blank.
      • Item 18: the Contract Award Date should be the day AFTER the expiration of the expiring master contract.
      • Item 19: the Service Start Date should be the day AFTER the expiration of the expiring master contract.
      • Item 20a: the Contract Expiration Date will be the end of the funding year (You can reflect the true expiration date of the replacement contract on your subsequent year Form 471.)
      • Item 21: submit the Description of Service used for the expiring master contract as the attachment for Description of Service.
      • Item 22: indicate the entities that will receive this service under the replacement master contract.
      • Item 23: For both recurring charges and one-time charges, the funding commitment will be limited to charges contained in the expiring master contract. That means the monthly charges MUST be no greater than what is contained in the expiring master contract. (If the replacement master contract charges are different, they can be reflected in Forms 471 filed in subsequent years.)
      • If there was no provision for one-time charges under the expiring master contract or you will not be incurring one-time charges under the expiring master contract during the funding year and there is a provision for one-time charges under the replacement master contract, there can be no claim for one-time charges under the replacement master contract for this filing year. (You may claim one-time charges incurred in subsequent program years in Forms 471 filed in those subsequent years.)
  3. When the state is ready to begin the competitive procurement process for the replacement master contract, the state entity negotiating the replacement master contract will be required to file a Form 470 (and have it posted for a minimum of 28 days prior to signing the replacement contract). If the state does NOT file the Form 470, you will NOT be eligible for discounts for the replacement master contract for the remaining portion of the funding year.
  4. After the state replacement master contract has been signed and dated by the state, you must request a SPIN change (replacing the service provider designation "state replacement contract" with the name of the actual vendor who has been awarded the replacement master contract) by marking up the relevant pages from your FCDL. On your FCDL you must indicate:
  5. the appropriate Funding Request Number (FRN)
  6. the actual service provider name (attach the appropriate page of the contract)
  7. the actual service provider's SPIN
  8. the state entity's Form 470 Application Number which was filed for the replacement master contract
  9. the contract award date (attach the appropriate page of the contract)
  10. the service start date
  11. the service end date
  12. the replacement contract number
  13. the ACTUAL expiration date of the replacement contract (attach the appropriate page of the contract)
  14. the effective date of the replacement contract
  15. You must SIGN and date the marked up page(s) of the FCDL. Return it by mail or express delivery to:

    State Replacement Contracts
    Schools and Libraries Division - Correspondence Unit
    30 Lanidex Plaza West
    PO Box 685
    Parsippany, NJ 07054-0685

  16. You will receive notice when the SPIN change has been made.
  17. Once you receive notification that the SPIN change has been made, you may submit a Form 486 for this FRN(s) using the replacement master contract information.
  18. In subsequent program years when you file a Form 471, you will reference the state entity's Form 470 application number as the establishing Form 470 for this replacement master contract.

Last modified on 11/5/2009