Implementation of the New FCC Extension for Funding Year 2

On October 31, 2000, in a response to concerns raised by schools and libraries that they would not be able to complete installation of NON-RECURRING services by September 30, 2000, through no fault of their own, the FCC extended the deadline for using E-rate funds until September 30, 2001, under certain circumstances.

The circumstances that allow for the extension are for those applicants:

1. whose Year Two funding commitment decision letters (FCDLs) were issued by SLD on or after April 4, 2000, or
2. who received service provider change authorizations or service substitution authorizations from SLD on or after April 4, 2000, or
3. whose service providers were unable to complete implementation due to events beyond the service provider's control PROVIDED the applicant submitted to SLD documentation about the delay prior to September 30, 2000, or
4. who certify to SLD that their service providers were unwilling to deliver or install non-recurring services before September 30, 2000, because USAC had withheld payment for those services on a properly submitted invoice for more than 60 days after submission of the invoice PROVIDED the applicant makes such certification to SLD by December 31, 2000.

In addition, the FCC Order recognizes that there may be other situations beyond those it specifically enumerates in which an applicant through no fault of its own was unable to complete installation by September 30, 2000, and authorizes SLD to address such situations consistent with the reasoning set forth in the Order. The SLD will review any requests for extensions based on this more general allowance and approve them only if they describe circumstances truly beyond the applicant's and service provider's ability to control. Since the FCC Order clearly intends that these extensions be requested and resolved quickly, SLD will apply the December 31, 2000, deadline to any requests citing this more general allowance.

For categories 1 and 2 (post April 4, 2000 FCDLs and service provider change/service substitution authorizations), SLD will identify all qualifying Funding Request Numbers (FRNs) with remaining undisbursed funds and post the list of such FRNs with the new deadline of September 30, 2001, for receipt of non-recurring services on its web site. The posting will also feature the new invoicing deadline for these FRNs of December 29, 2001.

For category 3 (delay due to events beyond the service provider's control), SLD will consider the following as meeting that criterion:

• Acts of God such as fire, flood and other natural disasters
• Strikes and labor disputes
• Unavailability of materials available from only one source and that source is independent of the service provider
• Order of any court or other action of any competent jurisdiction.

The following circumstances will not be deemed as meeting the criterion:

• Staff shortages
• Required material(s) available at an increased price
• Required material(s) not available from usual sources but available from other sources
• Material(s) not available but similar, suitable equipment is available (substitution request required)
• Applicant will not sign requested change order
• Condition of the service has changed and the applicant will not accept a price increase.

Certification Requirements for Special Circumstances (Categories 3 and 4)

The deadline to submit notice about a delay in work due to events beyond the service provider's control has passed. SLD will review any requests it has received and communicate with applicants to obtain the following information if necessary. Applicants have until December 31, 2000, to submit certifications about delays in work attributable to the unwillingness of a service provider to continue after the failure of USAC to pay invoices within 60 days. Applicants submitting such certifications should provide the following information:

1. Applicant Name
2. Applicant Contact Name
3. Applicant Contact Title
4. Applicant Contact Phone
5. Applicant Contact Fax
6. BEN#
7. 471#
8. FRN# (s)
9. Service Provider Name
10. SPIN#
11. Service Provider Contact Name
12. Service Provider Contact Title
13. Service Provider Contact Phone
14. Service Provider Contact Fax
15. Specifics based on circumstances claimed:

a) Circumstances beyond the service provider control -- Provide complete description of circumstances
b) USAC non payment:


(1) Provide date FCC Form 474 submitted to SLD
(2) Provide copy of FCC Form 474 which was not paid

16. The signature, printed name and title of the person authorized to file this certification on behalf of the applicant.

The certification should be sent to:

Schools and Libraries Division
Attention: Year Two Extension Certification
Box 125 - Correspondence Unit
80 South Jefferson Road
Whippany, New Jersey 07981

With the information provided by the applicant, the SLD will review the circumstance and communicate with the applicant for further documentation, if required. Written notification of the disposition of the request for extension will be sent to the applicant and service provider. FRNs approved for extension will be added to the web site notice of extended FRNs and the new deadline for receipt of non-recurring services and for SLD receipt of invoices will be featured.

Extend Your Contract Expiration Date, If Necessary

If you qualify for an extension but indicated on your Form 471 a contract expiration date prior to the date you now expect your service provider to complete work, you will have to notify SLD of an extension of the contract expiration date in order for SLD to be able to pay invoices for these services. SLD cannot pay invoices for services received after the contract expiration date. If applicable state and local procurement rules permit an extension and your service provider is agreeable, you should negotiate a contract extension and notify SLD of that extension by submission of an FCC Form 500. You may get copies of the Form and its instructions on the SLD web site or by contacting the Client Service Bureau at 888-203-8100.

Deadline for Receipt of Invoices for Services Provided During the Extension Period

The SLD will consider invoices for payment on Year 2 funding commitments for non-recurring services for which the FCC has granted an extension if they are received by December 29, 2001, (that is, 90 days after the new deadline of September 30, 2001, for receipt of services), but applicants and service providers are encouraged to complete such work as soon as possible and to submit invoices for payment as soon after the work is completed as possible.

PLEASE NOTE that the extensions apply only to non-recurring services. Recurring services must have been received between July 1, 1999, and June 30, 2000. SLD will not pay invoices for Year 2 funding commitments for recurring services received after June 30, 2000.

More New Guidance in Reference Area

Two reference documents were added to the Reference Area of the web site on December 22: Tips for Completing Your Form 471 and Pitfalls to Avoid in Filing Form 471.

New and Revised Documents in Reference Area

The SLD has posted a number of new and revised guidance documents on the Reference Area of this web site. In addition to the new documents announced in previous What's New postings, the following documents have been posted to the Reference Area:

• Alternative Discount Mechanisms Fact Sheet provides guidance on using federally-approved alternative measures of poverty to assist in the calculation of a school's E-rate discount.
• State Replacement Contracts outlines the procedures for filling out the Form 471 if a service is to be provided under a state Master Contract which expires before the end of the Funding Year for which you are applying for discounts.
• SPIN Changes Guidance clarifies eligible SPIN changes in light of new guidance from the FCC, including a broader application of the Copan criteria.
• SPIN Correction Guidance details the process for making a SPIN correction using the Receipt Acknowledgment Letter.
• Links to updated information are also being highlighted for several steps in the How to Apply: Step-by-Step guidance.

Please continue to check the Reference Area for additional postings of new and revised guidance materials.

Eligible Services List is Revised Slightly

The Eligible Services List in the Reference Area of this web site has been revised slightly.

An entry for 911/E911 Trunks and Lines has been added in Telecommunications Services to clarify that, since these are not used for instruction, they are ineligible. Video components on the most recently posted List were shown as ineligible under Distance Learning in Telecommunications Services. Those references have been deleted, and video components are shown as eligible under Internal Connections (provided they are not end-user equipment). Finally, the entry for Basic Telephone Service in Telecommunications Services has been revised to clarify that this term includes Cellular/Personal Communications Services.

The "Paragraph Cite" column has been eliminated in order to provide a streamlined presentation. That information is important in reaching decisions on eligibility, but the key information for applicants and service providers is the decision on eligibility itself.

The Eligible Services List is saved as a PDF file that may be downloaded and viewed using Adobe Acrobat, version 4.0 or higher. Click here to view the Eligible Services List, or go to the Eligible Services List in the Reference Area of this web site.

If you need assistance viewing or downloading PDF files, see the PDF Help document in the Reference Area of this web site.

Holiday Hours Announcement

The Schools and Libraries Client Service Bureau will be closed on Monday, December 25 and Tuesday, December 26, 2000 in observance of Christmas. The Client Service Bureau will resume normal operations on Wednesday, December 27, 2000 at 8:00 a.m. EST.

The Schools and Libraries Client Service Bureau will be closed on Monday, January 1, 2001 in observance of New Year's Day. The Client Service Bureau will resume normal operations on Tuesday, January 2, 2001 at 8:00 a.m. EST.

SLD Explains Procedures for Adjusting Applicants' Discount Requests

Two new items have been added to the reference area of this web site that merit review by applicants and service providers as applicants prepare to submit Forms 471 for Year 4.

"Eligibility of Service Requests" cautions applicants not to include the costs of ineligible services in the prediscount cost for which they seek discounts. It explains how SLD will treat Funding Request Numbers (FRNs) that do request funds for ineligible services.

"Service Categories: SLD Adjustment Process" cautions against including requests for internal connections components in FRNs that are categorized as Telecommunications Services or Internet Access (Priority 1 FRNs). It explains the treatment of Year 4 requests which mix Priority 1 and Priority 2 services in a single Block 5 request.

Click here to view Eligibility of Service Requests.

Click here to view Service Categories: SLD Adjustment Process.

Form 470 Filing Opportunity Now Very Narrow

The day is fast approaching for applicants to file their Form(s) 470 in a timely manner. A timely-filed Form 470 must be posted to the SLD web site for 28 days and still allow the filing of a Form 471 within the filing window which closes January 18, 2001. Form 471 materials supporting a Form 471 request must also be received or postmarked by January 18, 2001.

Manual filers were advised in an earlier web site notice that, if they submitted their paper Form(s) 470 after December 14, they were at risk for missing the posting date described above. Form(s) 470 can still be submitted manually, but they must be received by SLD in Kansas, processed, and data-entered successfully to the SLD web site before the required 28-day waiting period can even begin.

Applicants who have not already submitted their Form(s) 470 are therefore very strongly encouraged to file online.

FCC Approves Six USAC Board Members; Three new members and three members re-approved.

William Kennard, Chairman of the Federal Communications Commission (FCC) has approved six individuals to three-year terms to the Board of Directors of the Schools & Libraries (USAC). USAC administers the Universal Service Fund (USF), which provides communities across the country with access to affordable telecommunications services. USAC is a private, not-for-profit company directed by the FCC to administer the USF. USAC administers the four universal service programs (the High Cost Program, Low Income Program, Rural Health Care Program, and the Schools and Libraries Program).

The approvals are a result of a November 6, 2000 FCC public notice soliciting nominations to fill the vacancies that would be created when the terms of six current members expire on December 31, 2000. The USAC Board represent the diverse stakeholders that participate in the universal service programs. The terms are staggered and six expire each year.

The six nominations approved by the chairman of the FCC and the stakeholder group represented are:

1. Kevin Hess, Vice-president, TDS TELECOM - Incumbent local exchange carriers (other than Bell Operating Companies) with annual operating revenues in excess of $40 million (re-appointed),
2. Joel Lubin, Vice-president, AT&T - Interexchange carriers with more than $3 billion in annual operating revenues,
3. Allan T. Thoms, Chairman, Iowa Utilities Board - State telecommunications regulators (re-appointed),
4. Dr. Jay Sanders, President & CEO, Global Telemedicine Group -Rural health care provider that are eligible to receive support (re-appointed),
5. Rev. William F. Davis, Assistant Secretary for Catholic Schools and Public Policy, United States Catholic Conference- Schools that are eligible to receive support, and
6. Robert Rivera, Spectrum Communications, Inc. and MeshworX, Inc. - Information Service Providers.

Unauthorized Forms 470 Deleted

Program participants are reminded that it is a violation of FCC rules and SLD Form instructions for a Form 470 to be filed without the express authorization of the named entity. For this reason, SLD has removed certain Year 4 Forms 470 from the web site in instances where the SLD has evidence that such Forms were not authorized. Some Forms 470 were taken down on December 7, 2000. The SLD will also deny Funding Requests that cite those Forms 470. Should it come to the attention of SLD that other Forms 470 were filed without the express authorization of the named entity, those Forms will also be removed.

Schools and libraries are reminded to read the Forms and instructions carefully and call the Client Service Bureau at 888-203-8100 if they have questions.

View List of Deleted Year 4 Forms 470

New E-Rate Benefits Statement Coming to Recipients

To provide recipients of E-rate funds information about disbursements to their service providers, a new Schools and Libraries report reflecting invoice payment authorization activity will be mailed starting December 6.

Billed entities for which invoices have been authorized for payment during the period July 1 through November 30, 2000 will receive the report. It will identify the amounts authorized for payment during this five-month period, whether for Funding Year 3, or Year 2, or in some cases, Year 1. The report will cover payments authorized through Form 472 (the BEAR Form) and through Form 474, the Service Provider Invoice Form.

This report provides billed entities the opportunity to affirm that the payments authorized to vendors are consistent with the discounts or reimbursements such entities have received or can shortly expect. The report will be sent to the billed entity address as featured on Block 1 of the Form 471, and addressed to the person who signed the form.

In the future, this report will be produced and distributed each quarter, reflecting the payment authorization activity for the previous three months.

Year 3 Funding for Internal Connections Cannot Reach 81%

SLD, near completion of Year 3 processing, has determined that Year 3 funds are insufficient to reach the discount level of 81% for Internal Connections. Applicants with such requests will be receiving letters during the week of November 27, notifying them that these requests cannot be funded. There will be no funding wave mailed during Thanksgiving week.

Under the FCC rules of priority, requests for Telecommunications Services and Internet Access have top priority and, with funds still available, funding commitments are made on requests for Internal Connections beginning with the most disadvantaged applicants and continuing down the discount percentages until funds are depleted.

In April 2000, SLD determined that, because of the unprecedented level of demand for E-rate funds for Funding Year 3 (July 1, 2000 through June 30, 2001), it would not have sufficient funds for Internal Connections requests with discount percentages of 80 or less. Applicants who submitted such requests have been receiving Funding Commitment Decision Letters denying those requests because of insufficient funds. In April, the SLD determined that it did have sufficient funds for Internal Connections requests with a 90% discount percentage. In the months since then, the funding threshold has been gradually reduced so that, now, approved Internal Connections requests at an 82% discount percentage are receiving funding commitments.

Entity Numbers Now Available Online

The Schools and Libraries Division is now making entity numbers available to the applicant community. The new Entity Numbers section of the reference area provides links to the entity numbers as of November 13, 2000. If you can't find your entity number in the list, contact the Client Service Bureau at 888-203-8100.

New Eligible Services List

The SLD has posted a new Eligible Services List for use by applicants as they prepare their FCC Forms 471 for Funding Year 4. Applicants and service providers should review this list carefully, as it indicates significant changes in the eligibility of some equipment.

In particular, equipment necessary to transmit video to the classroom or library room is eligible for discounts. In previous lists, such equipment had been described as ineligible, while video service was eligible if provided by an eligible telecommunications carrier. After careful review of these determinations, the FCC has advised SLD that such video equipment is eligible just as equipment that carries voice or data to the classroom or library room is eligible. End-user equipment for video services (for example, TV monitors, cameras, and VCRs) is ineligible, just as end-user equipment for voice or data is ineligible.

The new list also clarifies that modems are only ineligible when installed in or supporting end-user equipment; modems in eligible equipment are eligible.

With respect to Internet telephony, the list provides new guidance: Components of Internal Connections that transform voice to Internet protocol for the purpose of voice over Internet telephony are not eligible for discount.

The list provides additional details on what particular circumstances or conditions determine the eligibility of some equipment and services.

The Eligible Services List is saved as a PDF file that may be downloaded and viewed using Adobe Acrobat, version 4.0 or higher. Click here to view the Eligible Services List, or go to the Eligible Services List in the Reference Area of this web site.

If you need assistance viewing or downloading PDF files, see the PDF Help document in the Reference Area of this web site.

Holiday Hours Announcement

The Schools and Libraries Client Service Bureau will be closed on Thursday, November 23 and Friday, November 24, 2000 in observance of Thanksgiving. The Client Service Bureau will resume normal operations on Monday, November 27 at 8:00 a.m. E.S.T.

New Deadline for Certain Year 2 Applicants for Receipt of Non-Recurring Services

In an Order released on November 1, 2000, (DA 00-2444), the FCC recognized certain categories of applicants that, through no fault of their own, had not been able to meet the September 30, 2000 deadline for receipt of non-recurring services for Year 2. The order established a new deadline of September 30, 2001 for such categories of applicants.

The order acknowledges that some applicants did not receive their funding commitment decision letters, or a determination on their service provider changes or service substitution requests from USAC in time to implement non-recurring services. Additionally, some applicants may have been unable to meet the September 30, 2000 deadline because their funding disbursements were delayed while USAC investigated the applicant's program compliance, or because their service provider was unable to complete implementation due to reasons beyond the service provider's control.

The FCC established April 4, 2000 as a key decision milestone. Applicants who: (1) received, or will receive a Year 2 Funding Commitment Decision Letter dated April 4, 2000 or later, or (2) were authorized by SLD on April 4, 2000 or later to change their Year 2 Service Providers or to make Year 2 service substitutions, or (3) were left on September 30, 2000 with unfinished, non-recurring projects because service providers were unable to complete the work for reasons stated above, will have until September 30, 2001 to implement non-recurring services supported by Year 2 E-rate funds. The categories above include those applicants whose requests were received outside the Year 2 window and which are now under consideration by SLD.

The Schools and Libraries Division is currently working on the extension process details and will soon post more information about taking advantage of the extension.

New Online Form 471 Is Improved; Other Parts of Web Site Still Under Construction

The new online Form 471, which became available on November 6, is easier to use and features new tools to make the online process quicker. You will benefit greatly from the new "Form 471 Online Navigation Guide," located in the Reference Area.

New features of the online system for year 4 include:

• New user-friendly navigational functions,
• Ability to review and print the entire application (not just one block at a time),
• Ability to view your form even after you have submitted it,
• Easy visual access to system-generated counter numbers: your Funding Request Number, your Worksheet counter number and Facility to "copy" Block 4 within an application.

The Reference Area features many important documents to help you. More documents are being added or restored almost every day in the days ahead. NOTE:During this transition period the "How to Apply: Step-by-Step" is under construction but will be restored soon. The Reference Area, however, features many of the kinds of documents soon to be accessible through the Step -by -Step section.

Finally, the SL web site is about to be launch a search engine. You can let us know what you think of the new look and the new online application form by sending us an e-mail.

Schools and Libraries New Look

In an effort to better serve our customers, we have changed the look of the Schools and Libraries area of the USAC web site. Our new design was carefully planned to enable visitors access to information quickly and easily. You will notice changes to the layout and names of the navigational areas. Please take a tour of the site to learn about the updated design. If you would like to comment on the new design, you can do so by sending an e-mail.

SLD Web Site Prepares for Funding Year 4 Opening

The SLD web site will be in transition to prepare for the Year 4 opening. We are expecting the transition period to last from Friday, November 3 to noon on Monday, November 6. Starting Friday, users will notice documents being removed from the "Reference Area." We anticipate returning most of these documents on Monday when we open the Year 4 window. Second, we will be upgrading our equipment starting Saturday, November 4 at 11:00PM. During this time users will be able to browse the Schools and Libraries area of the web site but will not have access to certain functions, e.g., apply online, search 470, deleted 470 applications, rural/urban classification, etc. We are expecting normal service to be returned when the Year 4 window opens on November 6, 2000 at NOON EST. We apologize for any inconvenience this may cause and look forward to serving you as the Year 4 process opens.

FCC Form 471 Window Opens for Year 4 Applicants; New Filing Requirements Firmly Established

On Monday, November 6, noon Eastern Time, the Form 471 filing window for Funding Year 4 (July 1, 2001- June 30, 2002) is scheduled to open.

The window will remain open for seventy-four (74) calendar days and will close on Thursday, January 18, 2001 at 11:59 P.M. EST.

Year 4 features NEW and FIRM filing requirements:

1. The January 18 deadline is a POSTMARKING deadline. In order to make sure your application is in the window, all manually submitted materials must be postmarked no later than January 18.

2. Unlike Year 3, all materials associated with the Form 471 have a January 18 deadline:

• the 471 Form itself ( whether electronic or paper)
• the Block 6 certification for the Form 471 with an original signature by the authorized person
• all attachments for Item 21
• the Block 5 certification of Form 470 filed for Year 4 ( and which is cited in a Year 4 Form 471) with an original signature by the authorized person

3. The Year 4 Form 471 is dated October 2000, and this version must be used for Year 4 requests. Old Forms 471 will be returned to the applicant putting at risk the ability to file on time.

Failure to make the January 18 deadline will place your entire funding request outside the application window, and your funding will be jeopardized. Applicants who file manually should also make sure they conform with 471 Minimum Processing Standards as featured in the Reference area of this web site.

The Year 4 FCC Forms 470 and 471 may be filed on-line or downloaded for manual filing. Click here for access to the forms. The forms are also available via mail by calling our Client Service Bureau at 888-203-8100.

Applicants who have completed the FCC Form 470 28-day posting period, and have selected their vendors for tariff or month-to-month services and/or have executed contracts for contractual services, may submit the FCC Form 471, Services Ordered and Certification Form to the SLD as early as November 6.

Reminder of November 20 Deadline for Submitting BEAR Forms and Service Provider Invoices for Year 2

Please note that the November 20, 2000, deadline for submitting Billed Entity Applicant Reimbursement (BEAR) forms and Service Provider Invoices for Year Two (1999-2000) is fast approaching. Although the Schools and Libraries Division (SLD) of the Schools & Libraries (USAC) is still accepting BEARs or invoices for Year Two commitments, please be aware that we do have an absolute deadline for USAC to make payments. While we will make every attempt to process your BEAR or invoice, we cannot promise that they will be paid if they are received after the November 20 deadline. Each day beyond the November 20 deadline increases the risk that your payment may not be fully processed.

Schools and libraries who received a Year 2 funding commitment are also reminded that your Form 486, Receipt of Service Confirmation Form, must be filed before any funds can flow to you or your service provider.

Have you filed your Form 486 indicating that services have started? If not, act now!

Updated Eligible Services List Posted

The Eligible Services List has been updated as of October 12, 2000, to clarify the eligibility of certain items. Specifically, a number of items had previously been categorized as Eligible even though there were conditions on their eligibility. Such items are now categorized as Conditional and additional information has been added in BOLD text.

There will be a new Eligible Services List posted to the SLD web site early in the Form 471 filing window for Funding Year 4. That new list will reflect additional clarifications. Please watch this section of the SLD web site for notice of the posting of that new list.

The Eligible Services List is saved as a PDF file that may be downloaded and viewed using Adobe Acrobat, version 3.0 or higher. Click here to view the Eligible Services List, or go to the Eligible Services List in the Reference Area of this web site.

If you need assistance viewing or downloading PDF files, see the PDF Help document in the Reference Area of this web site.

No Wave Posted on October 9, 2000

The Schools and Libraries Division of the Universal Service Administrative Company will not issue a wave of funding commitment letters next week. This means that there will be no wave notification posted to the SLD website on October 9, 2000, and no wave funding commitment letters mailed to applicants for delivery during the week beginning October 9, 2000.

Weekly wave notifications to applicants will resume the following week. The wave notification for the next wave will be posted to the SLD website on October 16, 2000, and wave funding commitment letters will be delivered following that posting.

Please continue to check the SLD website for information about any changes or updates to the schedule of funding commitments for Funding Year 3.

Form 471 Filing Window for Year 4

The E-rate application cycle for Funding Year 4 (July 1, 2001 - June 30, 2002) will feature a window opening date in early November 2000 and a window closing date in mid-January 2001. All funding requests received within the window will be considered as having been received simultaneously.

The specific opening and filing dates will be posted here and disseminated when the information becomes available.

As in Year 3, the window opening and closing dates will apply only to the filing of the FCC Form 471; the FCC Form 470 for Year 4 may be filed now. If you are filing Form 470 for Year 4 electronically on this web site, make sure you select the correct Funding Year: 07/01/2001 - 06/30/2002.

US Department of Education Releases Report on E-Rate

Yesterday, US Department of Education released a report on the E-Rate, entitled "E-Rate and the Digital Divide: A Preliminary Analysis from the Integrated Studies of Educational Technology." This report concludes that the program is achieving its legislative intent, with support going to poorer communities. The full text of the report can be found at http://www.ed.gov/offices/OUS/eval/elem.html#technology

Certain Year 3 Applicants Permitted to Refile Under Special Waiver

A number of applicants were identified in the FCC Order released on August 11, 2000 (FCC 00-260) which pertained to the Year 3 filing window. These applicants were given a special waiver to refile Forms 470 by September 11, 2000 and properly complete and file Forms 471 by December 11, 2000. The SLD will consider such Forms 471 filed by these applicants as if they were received within the original filing window that closed on January 19, 2000.

The complete list of the applicants given this special waiver can be found under the Service Provider Information section of the Vendor Area of the SLD website. You may also click here to view the list.

Post Commitment Change in Products and/or Services

Applicants and service providers have approached the Schools and Libraries Division (SLD) to request the ability to change products and/or services indicated on the Item 17 attachment for Funding Years (FY) 1 and 2 or Item 21 for FY 3 (and future FYs) to a Form 471. In certain limited circumstances, the SLD will allow changes in products and/or services after fund commitment.

The SLD will view these limited changes in products and/or services as minor contract modifications. These changes may be required if a service provider is currently unable to provide some of the products and/or services indicated in a Form 471 because the products and/or services are no longer offered. Service providers have also informed the SLD that, in certain circumstances, they are now able to provide better products and/or services for less cost due to technological advances. Allowable changes might be one-time costs such as purchase charges for equipment or monthly costs for services such as Internet access. A change in service might occur when a service provider upgrades the service provided to the school or library, for example, by converting from dial-up access to dedicated connection, such as T1. If the service change meets the criteria below, it would be approved.

Please note that the product/service changes discussed here can not involve a change in the service provider. Procedures for changing service providers can be found at the SLD website <www.sl.universalservice.org>, Reference Area, Spin Changes and Correction Procedures.

Minimum Requirements

In accordance with the definition and the rules for minor contract modifications, the SLD requires that one of the following two parameters be met for service changes:

In all instances, product and/or service substitutions will only be permitted if:

In certain limited circumstances, the change or substitution in products and/or services may reduce the cost to the applicant, hence reducing the amount of universal service requested. Although this money is now essentially "freed up," applicants will not be permitted to re-allocate these funds elsewhere, or purchase additional product and/or service, or increase the quantity of these specific products and/or services. Applicants should notify SLD of "freed up" funds by filing a Form 500, upon notification of the approved substitution request.

Process:

Service providers and applicants should work together to provide the proper documentation to the SLD regarding the proposed change in products and/or services. Service providers who have received approval for the change of products and/or services are required to send a copy of the letter to all applicants wishing to make the same substitutions. Any applicant who wishes to make approved substitutions must submit a supplemental Form 471 with Block 2, Item 7 checked, indicating to the SLD that this application updates a previously submitted application with a minor contract modification. The SLD will not require the entire supplemental Form 471 to be filled out. However the applicant is required to complete Blocks 1, 2 and 6, and to include a list of all of the FRNs for that service provider for which substitutions are proposed. In addition, a copy of the approval letter from the Manager - Products & Services to the service provider must be attached to the supplemental Form 471. Substitutions will only be processed for products and/or services identified on the SLD approval letter. Any supplemental Form 471 application for change submitted without the approval letter attached will be denied and returned to the applicant.

Service providers wishing to submit requests for service changes and/or substitutions should contact Louis J. Tiboldo, Manager - Products & Services by telephone at 973-884-8016. Schools, libraries and service providers requesting general information about the process should call 888-203-8100.

Holiday Hours Announcement

The Schools and Libraries Client Service Bureau will be closed on Monday, September 4, 2000 in observance of Labor Day. The Client Service Bureau will resume normal operations on Tuesday, September 5, 2000 at 8:00 a.m. EDT.

The SLD Guide to Service Provider Participation in the E-Rate

SLD is launching a new manual for service providers: "The SLD Guide to Service Provider Participation in the E-Rate." The first two chapters of this manual are now available.

This Guide, with detailed information for service providers on how to participate in the E-rate program, is being released in sections.

Now available: Chapter 8, "Invoicing USAC and Reimbursement," and Chapter 9, "Service Provider Role in BEAR Process."

Questions about the manual, or other topics of interest to service providers, can be addressed to serviceprovider@universalservice.org

Reminder: Select Your Funding Year 3 Invoice Form with Care!

As noted with the introduction of the revised Form 486, See SLD Releases Revised FCC Form 486 and New FCC Form 500, invoice payments for Funding Year 3 will be based consistently on the type of invoice form selected for the first invoice. So, if FCC Form 472, Billed Entity Applicant Reimbursement (BEAR) form, is submitted for the first payment, the BEAR form must be used for the entire funding year. Conversely, if FCC Form 474, Service Provider Invoice Form (SPIF), is submitted for the first payment because discounts have been provided by the Service Provider, the SPIF form must be used for the entire funding year.

Therefore, Applicants and Service Providers should work together, before the first invoice is submitted, to determine which type of form shall be used. Invoice forms received that are not the same type of invoice form as the first invoice submitted for Funding Year 3 will be rejected.

Invoicing for Funding Year 1 and 2 is unchanged.

SLD Clarifies Procedures on Appeals

We have advised those who disagree with a funding decision to appeal to the SLD or to the FCC and to be sure that the appeal is received within 30 days from the date on the decision letter. Please note, however, that appellants should NOT send appeals to BOTH the SLD and the FCC simultaneously. FCC's rules do not contemplate concurrent appeals, and, if it receives an appeal that is also under review by the SLD, it dismisses the appeal. Once the SLD decision is issued, if the appellant still disagrees with the outcome, an appeal may be submitted to the FCC. An appeal to the FCC must be received by the FCC within 30 days of the date on the SLD appeal decision letter.

SLD Will Process Service Provider Change Requests that Can Be Approved Under pre-Copan Guidelines

The SLD has received guidance from the Federal Communications Commission (FCC) on how to proceed with requests for changes in service providers, pending the final outcome of the Copan review that the FCC is currently undertaking. (In an Order released on March 16, 2000 - FCC 00-100 - the Commission granted an appeal from Copan Public Schools, Copan, Oklahoma, and provided new direction on allowable changes in service providers. The Universal Service Administrative Company filed an Administrator's Petition for Clarification and/or Reconsideration with the Commission on April 14, 2000, and the Commission is reviewing the questions raised in that petition.)

SLD will process the SPIN change requests that it currently has on hand. We will approve any requests that satisfy the guidelines that were in effect prior to Copan. We will not deny any requests at this time; we will hold any requests that we are unable to approve under the previous guidelines and review them again once the FCC has issued further guidance.

What are Allowable SPIN Changes?
A SPIN Change is a request to substitute one service provider for another after the filing of Form 471. The three (3) categories of allowable SPIN corrections, and their relevant restrictions, are as follows:

How to Request a SPIN Change
You can request an allowable SPIN Change after a funding commitment has been made.

Let Us Know Where to Find You This Summer

If you will be away from your usual location or modes of contact during the coming weeks, please use our Summer Contact database to let us know how to reach you (or your stand-in) if we have questions as we complete review of your E-rate application. This is particularly important for those who applied but have not yet received Year 3 Funding Commitment Decision Letters, those who have filed Year 3 appeals, and those who submitted Year 2 applications after the close of the original filing window on April 6, 1999. We will begin reviewing Year 3 appeals and Year 2 post-window applications in the coming weeks.

The database will allow you to provide temporary contact information via the Web Site (or, if you don't have Web access, by calling our Client Service Bureau at (888) 203-8100). Our problem resolution and Program Integrity Assurance staff will use this database as they work on your application, so you can help avoid processing delays by providing your summer contact information as soon as possible. (Service providers can also search the database by Billed Entity Number if they need to reach you during this same period.)

To use the Summer Contact database, you'll need to enter your Billed Entity Number. Then you can type in any pertinent information (such as an alternate phone number or contact name) that will help us find you this summer. Those without Web access should call 888-203-8100, and our customer service staff will enter the data for you. Please note: Summer contact data will not affect your permanent record in our data system.

Old FCC Forms 486 No Longer Accepted

The following guidance is offered to assist you in filing your FCC Forms 486 (Receipt of Service Confirmation Form).

Forms 486 for Funding Year 2:

• You should stop sending old Forms 486 (dated July, 1999 or earlier) immediately. Please use the new Form 486 dated April, 2000.
• Old Forms 486 received by the SLD after June 23, 2000, for Funding Year 2 requests WILL NOT BE PROCESSED. The forms will be returned to you so that you can resubmit them on the revised Form 486.

Forms 486 for Funding Year 3:

• As we indicated in your Funding Commitment Decision Letter, and in the subsequent letter in which we sent you the revised Form 486 and the new Form 500, Forms 486 for Year 3 requests MUST be submitted on the revised Form 486 dated April, 2000. If you submitted a Funding Year 3 request on an old Form 486 (dated July, 1999 or earlier), that form is being returned to you so that you can resubmit your request on the correct revised Form 486.

If you have any questions about the proper use of these forms, please see the correspondence sent to you with the revised Form 486 and the new Form 500, review the earlier messages in the What's New section of the web site, or call our Client Service Bureau at 1-888-203-8100.

SLD Releases Revised FCC Form 486 and New FCC Form 500

SLD has just posted to this web site new forms for applicants to fill in to receive discounts or reimbursements for approved E-rate discounts. These forms are now in use. Recipients of Year 3 funding commitments will receive these forms in the mail.

Simplified Form 486

The new and simplified FCC Form 486, Receipt of Service Confirmation Form, replaces the old FCC Form 486, which was dated July 1999. Do not use the old form. In mid-June, old Forms 486 will not be accepted by the SLD. Watch this web site for news of the precise cut-off date.

This new Form 486 features just a few, but important changes:

1. The new form makes provision for you to file NOW your Form 486 for Year 3 if:

1. You have received a funding commitment for Year 3 (i.e., for the year beginning July 1, 2000),
2. Your services are scheduled to begin delivery in July, and you have confirmed that plan with your service provider, and
3. You are comfortable giving the "green light" for invoices to arrive at SLD for payment.

Such "early filing," before services have actually started, can help facilitate the appearance of discounts on your bills early in the Funding Year.

If, however, you have filed early but your start date is delayed beyond July, you should notify SLD immediately of a change in the service start date via the Form 500.

2. The new Form 486 eliminates the need to identify to SLD whether or not you will be submitting a Form 472, Billed Entity Applicant Reimbursement Form (BEAR). You should, however, work with your service provider to determine whether your price reductions will be through reimbursement or discounts on your bills.

3. The new Form 486 has now only one function: to indicate that services have been or will be received.

Functions formerly served by this form, i.e., to cancel an FRN, extend the contract termination date, or to modify the information on start dates submitted in a previous Form 486, are captured in the new Form 500, Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation Form.

4. The turnaround time for the new Form 486 is different.

For those eligible for early filing (i.e., those receiving Year 3 services in July 2000), the form may be filed any time after the receipt of the Funding Commitment Decision Letter. It should, however, be filed no later than 10 business days after the start of services.

For those who have a funding commitment and whose Year 3 services start in August or later, the form should be filed within 10 business days of the start of services.

New Form 500

The new FCC Form 500, Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation Form, serves certain functions formerly served by the Form 486, with one new function provided. These functions are:

1. To change a previously reported service start date;
2. To change a previously reported contract expiration date;
3. To cancel irrevocably an FRN;
4. To reduce the amount of a previously committed FRN

This form is immediately relevant to those Year 2 funding recipients who wish to extend the service period for non-recurring services past June 30, 2000, to a date as late as September 30, 2000. The FCC issued an order on May 5, 2000, extending the service period for non-recurring Year 2 services to September 30. SLD, however, will not process invoices for services rendered after June 30, 2000, unless the contract expiration date is consistent with the service delivery period.

Form 500 is the form to use for this notification. By filling in Block 2, Item G of this form to indicate a later contract expiration date, established with your vendor, you will give SLD the "green light" to pay invoices for services rendered up to the expiration date, or up to September 30, whichever is earlier.

If the contract expiration date you entered on your FCC Form 471 already makes provision for services rendered up to September 30, there is no need to file a Form 500. SLD will accept invoices for non-recurring services rendered up to September 30.

Again, because the SLD will stop accepting the old Form 486 in mid-June, we urge you to use the new Form 500 to alert SLD of any intent to take advantage of the extended service period. If, however, you previously used the old Form 486, SLD will accept that form up until mid-June. You do not need to resubmit. For more details about the waiver, watch the SLD web site at www.sl.universalservice.org.

NOTE: If you have not yet submitted an initial Form 486 to indicate the start of Year 2 services, please do so as soon as possible if services have already started! If you also want to take advantage of the waiver for services that are non-recurring, you will need to file the new Form 500 as well!

These forms can be found on the SLD web site by clicking the "SLD Forms" button. These forms are being mailed to recipients of Year 3 funding commitments. They can also be obtained by calling the Client Service Bureau toll-free at (888) 203-8100, where client service representatives can also help you with your questions about the form.

New Clarification on Eligibility of Remote Acess Routers

Remote access routers have generally been considered ineligible for E-rate discounts because such routers can be used for Internet access by anyone with the phone number to dial in to them, that is, access may not be limited to entities eligible to participate in the E-rate program. We have been alerted by program participants that this policy seriously disadvantages many of them since they have such routers and wish to secure discounts for their maintenance or because the purchase of such routers is the most cost-effective alternative for meeting their needs. Many participants have such routers because they were the most cost-effective alternative even though they do not use the remote access capability. Others have such routers in central offices, and their schools secure access to the Internet by dialing in to the routers.

In November 1999, the Federal Communications Commission (FCC) issued a decision on an appeal from White Sulphur Springs School District in Montana (DA 99-2537, released November 16, 1999). In that decision, the FCC upheld the eligibility of a remote access router because it was not being used as a WAN router nor to provide remote access (in fact, the contract with the service provider said the router would not be used to provide remote access).

With that policy decision from the FCC, SLD will consider the circumstances surrounding use of remote access routers before deciding on their eligibility. Specifically, SLD will consider remote access routers eligible if the applicant requesting discounts for such routers provides the following certification to SLD's Program Integrity Assurance team:

"The remote access router(s) for which I seek discounts either will not be used to provide remote access in the funding year or, if it is to be used remotely, I will take steps to ensure that only entities eligible for support under the Schools and Libraries program have the capability to access it. In the latter case, for example, access will not be available from homes or other non-school or non-library sites."

If a router is to be used for remote access, such access must only be from sites for which services would be eligible for discount under the E-rate program. For example, schools may call in to a remote access router at a school district central office, but teachers and students should not be provided with the phone number for them to call from their homes.

If discounts for remote access routers have been denied in Year 3 Funding Commitment Decision Letters dated within the last 30 days and the applicant is able to make the above certification, the applicant may appeal the denial to SLD.

Holiday Hours Announcement

The Schools and Libraries Client Service Bureau will be closed on Monday, May 29, 2000, in observance of Memorial Day. The Client Service Bureau will resume normal operations on Tuesday, May 30 at 8:00 a.m. ET.

Results of Appeals to the SLD and FCC

Applicants who believe that their requests for discounts have been incorrectly denied or reduced by SLD may appeal the funding decision either to SLD or the FCC. The table below shows how such appeals have been decided by SLD and the FCC as of May 11, 2000. Figures are for appeals on which decisions have been issued.

Applications Appealed

SLD Affirms Deadline for Applicant Responses to SLD Queries

SLD needs the help of applicants so we can complete processing your Year 3 applications.

If you have already received a Form 471 Receipt Acknowledgment letter, but have not yet received a Funding Commitment Decision Letter, your application may be under review by SLD's Program Integrity Assurance (PIA) unit in New Jersey.

As noted on our web site in Step #6 of the application process, ("SLD Processes Form 471 Applications"), there is a 7-day deadline for providing to PIA the information it requests from applicants. We know that this is a short period, but we also are eager to complete the processing of all Year 3 applications as soon as possible. Failure to respond within 7 calendar days may subject your application to rejection.

In particular, many applications are slated for in-depth review as part of our integrity assurance procedures. Please be on alert to hear from PIA staff who will need your help in this process.

Our PIA team has taken extra measures to make sure that it is accessible to clients. Specifically, if you have had contact with a PIA representative but have not been able to reach her or him using the telephone number provided to you, the following telephone numbers have been established as back up to the number given to you by your PIA representative:

Phone numbers no longer available as of 05/08/2001

You should generally receive a live contact. If, however, you reach a voice mail please be ready to provide the following information when using either of these two numbers: your name, your telephone number, the State your application is from, the application number if known, and the name of the PIA representative who contacted you. This information will assist us to respond expeditiously to your call.

For details on PIA deadlines click on "What is the deadline for responding to PIA inquiries?"

FCC Extends Year Two E-Rate Implementation Deadline Washington DC

Responding to concerns raised by schools and libraries that they would be unable to complete installation of internal connections by June 30, 2000, the Federal Communications Commission voted yesterday to extend the deadline for using Year Two E-rate funds until September 30, 2000, the Schools and Libraries Division (SLD) of the Schools & Libraries (USAC) announced today. The Commission extended the deadline and concluded that, "all schools and libraries in the country, who have received nonrecurring services discounts would benefit from a waiver of this deadline for Year Two. We further conclude that the public interest is best served if all schools and libraries receiving Year Two discounts on nonrecurring services have the benefit of an extension of the deadline for their use of nonrecurring services from June 30, 2000 to September 30, 2000." The Commission also addressed the situation of applicants whose contracts for nonrecurring services expired June 30, 2000, voting to permit them to extend existing contracts through September 30, 2000. "This is good news for E-rate participants," said Kate L. Moore, President of USAC's Schools and Libraries Division. "Now schools and libraries will have more time to work with their service providers to build the vital links between learners and the Internet in libraries and schools across the nation. "

SLD Removes Forms 470 Posted in Violation of Rules

It is a violation of FCC rules and SLD Form instructions for a service provider to file a Form 470. For this reason, SLD has removed Year 3 Forms 470 from the web site in instances where the SLD has evidence that service providers signed the Forms. Such action was taken on April 28, 2000. The SLD will also deny Funding Requests that cite those Forms 470.

Schools and libraries are reminded to read the Forms and instructions carefully and call the Client Service Bureau at 888-203-8100 if they have questions.

View the list of Year 3, Deleted Form 470s

SLD President Announces News on Year 2 and Program Integrity Actions

April 20, 2000

Dear Colleagues:

As promised to you last week, there follows below an update on SLD activities relating to Funding Year Two and Funding Year One. I have also included some vital information about program integrity and you.

Year Two Payments Made

To date, SLD has authorized for disbursement $499 million for the funding year ending June 30, 2000, for commitments thus far totaling $1.958 billion.

So, with the year over in two and a half months, we have disbursed about a quarter of the funds committed.

We need your help. While many of you may not have started your E-rate projects, others of you are well in progress. Of the amount not disbursed, $433 million is associated with commitments where recipients have not filed the Year 2 Form 486. No reimbursements or discounts can be paid unless the applicant has filed this form! Please check to make sure that your organization has taken this vital step so payments may be made for your discounts, and end-of-year processing is not slowed down.

Year Two Appeals

As of April 18, we have issued 1,187 decision letters responding to appeals. Our plan is to respond to the remaining 1,112 by early May. We also plan to begin committing funds to meritorious appeals in May. I apologize to those of you who have not heard from us yet. We are working hard to make sure your appeal is thoroughly reviewed, and you should be hearing from us soon. Funds are set aside to provide for any meritorious appeals we receive.

Year 2 Out-of-Window Applications

The Year Two filing period is now over; applications for funding will be addressed after the waves of Year 3 commitment letters have been issued. We are, however, acknowledging the receipt of your applications, even though processing has yet to begin. SLD received 974 applications during the 30-day filing period ending March 31, 2000. These requests total about $242 million and are in addition to the 2,351applications filed from April 7, 1999 through March 1, 2000, requesting about $128 million.

Year 1 Payments

As of March 31, USAC disbursed $ 1.387 billion of the $1.732 billion committed to applicants. After accounting for administrative expenses and commitments with FCC waivers, about $448 million will not be disbursed, subject to appeals pending with the FCC.

Program Integrity Assurance Update

The Schools and Libraries Division continues to be vigorous in the commitment to providing for program integrity. Compliance with program rules is a responsibility shared by applicants and the SLD alike.

In particular, I want to remind all clients of the importance of certain program components:

1. The importance of an open and fair competitive bidding process;
2. The requirement to certify in Item 25 on the Form 471 that the schools and libraries represented by the applicant "have secured access to all of the resources. necessary to make effective use of the services purchased as well as to pay the discounted charges for eligible services."

Competitive Bidding. Some vendors may seek to pre-empt the competitive requirements by working so closely with applicants in the Form 470 process that the applicant's selection of that very vendor for services eligible for discounts becomes a foregone conclusion. This is in direct contravention of an open, fair, competitive bidding process. Our Program Integrity Assurance Staff are on alert to detect such instances.

In fact, we are removing from our Form 470 "search" area certain forms where the service provider has signed the "Description of Services Requested and Certification Form." These submissions violate the requirements detailed in the form instructions, which state, "The entity that will negotiate with potential service providers should complete Form 470."

Funding requests based on such Forms 470 will be denied.

Access to Resources. Item 25 on the Form 471 requires the applicant to certify that the schools and libraries it represents "have secured access" to the resources necessary to use the discounted services effectively. The use of the past tense in this certification is important; if access to resources is highly contingent, improbable, or at a level insufficient to support your request then you are not in a position to certify that you have secured such access. Remember, as the applicant, it is your name associated with the certification.

SLD has in the past denied applications where evidence that resources had been secured was lacking. We will continue to examine this certification very carefully.

Other PIA News. SLD's Program Integrity Alert hotline, launched in June 1999, continues to be a useful tool for detecting indications of waste, fraud, or abuse. As a result of phone calls coming in to this line, several investigations are under way. As a reminder, if you want to report anonymously what you believe is a misuse of program funds or violation of rules, call 888-203-8100, and tell the operator, "This is a code Nine call." Details of the procedures can be found on this site in the June 1999 What's New Archive.

SLD has launched its audit of beneficiaries, which will continue into the spring and summer. We have selected an initial list of entities to be visited by our auditors, Arthur Andersen. The list features diversity: recipients of large and small commitments; public and private schools; school districts; libraries; consortia; and urban and rural entities. I will be in touch with each entity selected for the audit as the audit date approaches.

The goal of the audit is to evaluate whether the selected beneficiaries are complying with program rules.

SLD itself continues to be audited by the General Accounting Office (GAO), which is reviewing our files to test our administration of the program. This audit has been undertaken at the request of the U.S. Senate Appropriations Committee. We are cooperating with GAO, working on a daily basis to honor their requests for information. We are not certain about when they will issue a report, but when they do so, we will let you know about it.

Remember, our PIA staff may be calling you soon regarding your Year 3 funding request. We will be seeking your prompt assistance. Our requests for quick turnaround reflect only that we want to complete the Year 3 commitments well before the Funding Year begins. I ask for your patience and understanding.

In closing, thank you for the incredible work you are doing to bring advanced technologies into schools and libraries for the benefit of all learners. Thank you also for your ongoing feedback on our performance. We are striving for continuous improvement.

Sincerely,

Kate L. Moore
President
Schools and Libraries Division

SLD President Announces First Funding Wave for Year 3

Dear Colleagues:

This week we are launching the notification process for decisions on Year 3 funding requests: discounts for the funding year beginning July 1, 2000. The first wave of funding commitment decision letters will be issued later this week-over 13,000 letters to applicants in the 50 states, the District of Columbia, and Puerto Rico.

The Schools and Libraries Division of USAC will once again notify applicants about decisions on their funding requests over a period of weeks, with a wave of letters each week. We plan to mail these letters each Friday. On the following Monday, funded applications will be featured on our web site. We expect that about eight waves will be issued, with a goal of completing the process by the end of May.

The funding cap of $2.25 billion remains in place for Year 3. As a result, all approved requests for priority one services -- telecommunications and Internet access services-- received during the filing window will be funded. Regarding priority two services, funds are sufficient to provide for all internal connection requests at the 90% discount level. Funds are insufficient to fund requests below 81%, given total demand greater than $4.7 billion. For levels at 81% to 89%, funding is uncertain, but in the weeks ahead we will know more.

With Wave One, over one third of the applications filed inside the window will be addressed. Wave One consists of over 13,000 letters, and represents commitments of $185 million-double the size of our first wave last year. About 95% of the applications receiving a response in Wave One were filed electronically. Applicants' decisions to file electronically are helping speed our response to you. Many of the applications filed manually are still in the data entry process. We have, of course, accounted for these applications so that funds will be available when these requests are ready for funding commitment decision letters.

For applicants who receive commitments of funds, your next step will be to make sure your service provider is aware of the decision, and prepare to file the FCC Form 486, "Receipt of Service Confirmation Form." Please note that FCC Form 486 is under revision for Year 3! When it is approved, you will receive it from us and it will be posted on our web site. Filing this form is the "green light" for discounts to flow for services beginning on or after July 1, 2000.

While this week is "Year 3 Kickoff Week," we also are working hard on outstanding Year Two issues. My next letter to you in the days ahead will address the many other efforts we are making to serve you better.

Thank you for your patience and consideration.

Kate L. Moore
President
SLD

Service Providers Please Note:New Data Error Rejection Process for Invoices

The SLD will implement new invoice processing procedures beginning April 10, 2000. Click here for more detailed information.

REMINDER!! March 31, 2000, 11:59 p.m. EST Deadline for Filing Forms 471 for Year 2 Services including Block 6 Certifications and Signature Page.

For those applicants who are taking this opportunity to file Post-Window Forms 471 for Year 2 services, remember that for your manually filed application to be considered complete, your application including your Block 6 Certifications and Signature page must be received by the SLD no later than 11:59 p.m. EST on Friday, March 31, 2000. Your application including the Block 6 Certifications and Signature page along with the Block 5, Item 21 Description of Service(s) attachment may be sent via

SLD-Form 471 Year 2
C/O Ms. Smith
3833 Greenway Drive
Lawrence, KS 66046
(888)-203-8100

See additional information on this topic below in the subject labeled "Consideration of Additional Post-Window Year 2 Applications." Note that if you have a Year 2 Form 470 on file for services but were previously unsuccessful in filing your Year 2 Form 471, this is your opportunity to file a new Form 471 for Year 2 services.

For those wishing to deliver these application items in person, following are the directions from the Kansas City International (KCI) Airport to the SLD application processing facility--National Computer Systems (NCS)--in Lawrence, KS. An employee will be available from 8 a.m. to 11:59 p.m. EST daily from Wednesday, March 29 through Friday, March 31, 2000, at the South entrance of this facility to receive your Form 471 application for Year 2 services including Block 6, Certifications and Signature page and Block 5, Item 21 Description of Service(s) attachments.

• As you depart KCI airport, follow all signs that indicate I-29 North or Topeka.
• Once on I-29 North, seek out the signs for I-435 West. Make sure you stay in the right lane. Once you are on I-435 West, it will change to I-435 South: you will stay on this road for approximately 25 miles.
• Stay on I-435 West, until you see signs for K-10 (Lawrence)
• Take K-10 (Lawrence) for about 20 - 25 miles.
• Once you approach Lawrence, the speed limit will reduce to 65 mph. You will need to stay in the right lane.
• You will see a blue sign indicating East Hills Business Park, make a right into the Business Park. At the stop sign you will make a right again. You are looking for a building named NCS (National Computer Systems).
• NCS is around the curve at the bottom of the hill on the right.

New SPIN Change Policy Announced

On March 16, 2000, the FCC issued a decision in the Copan Public Schools (Copan, Oklahoma) appeal. That decision altered the SLD policy and procedures for making SPIN changes. The SLD is developing new procedures to implement this decision. As soon as all the implications are known, the SLD will issue guidance on what is needed to make SPIN changes. Look for this guidance in the What's New section of this web site. Thank you for your patience. You may read the FCC's decision on its web site , but we urge you to wait for further guidance from the SLD before submitting a SPIN change request to us.

FUTURE UPDATES: Form 470 Applications for Year 2 Services

Please note that ongoing updates to the list of those Forms 470 seeking bids for Year 2 services received by SLD on or after October 25, 1999, will now be located in the Vendor area of the web site. You can see the updated list (including today's) by clicking on the last button labeled "Form 470 Applications for Year 2 Services." The most recently filed forms will continue to be featured in chronological order by State with the most recently filed Forms 470 listed first.

The list provides the Form 470 Application Number, Applicant Name, City, and State. The posted description of services identified in these applications can be found in the Vendor area of the web site under "Search Posted Description of Services Requested and Certification Form." To search the Funding Year 2 Form 470 applications identified on this list, you will need to enter Funding Year 3 from the drop-down box labeled 7/1/2000 - 6/30/2001. Enter the application number to see the request for services which are needed during Funding Year 2 (through June 30, 2000).

View Today's Updated List

UPDATED LIST: Form 470 Applications for Year 2 Services

Click here for today's updated list of those Forms 470 seeking bids for Year 2 services that were received by SLD on or after October 25, 1999 (after the Year 2 operating system was no longer being used). This update includes newly filed Forms for Year 2. Note that the most recently filed forms are featured in chronological order by State with the most recently filed Forms 470 listed first.

The list provides the Form 470 Application Number, Applicant Name, City, and State. The posted description of services identified in these applications can be found in the Vendor area of the web site under "Search Posted Description of Services Requested and Certification Form." To search the Funding Year 2 Form 470 applications identified on this list, you will need to enter Funding Year 3 from the drop-down box labeled 7/1/2000 - 6/30/2001. Enter the application number to see the request for services which are needed during Funding Year 2 (through June 30, 2000).

Form 470 Applications for Year 2 Services

To assist service providers and applicants in identifying those Forms 470 seeking bids for Year 2 services that were received by SLD on or after October 25, 1999 (after the Year 2 operating system was no longer being used), click here for a current list. Watch the web site for further information as to where updates to the list will be located. These updates will include newly filed Forms for Year 2.

The list will provide the Form 470 Application Number, Applicant Name, City, and State. The posted description of services identified in these applications can be found in the Vendor area of the web site under "Search Posted Description of Services Requested and Certification Form." To search the Funding Year 2 Form 470 applications identified on this list, you will need to enter Funding Year 3 from the drop-down box labeled 7/1/2000 - 6/30/2001. Enter the application number to see the request for services which are needed during Funding Year 2 (through June 30, 2000).

Consideration of Additional Post-Window Year 2 Applications

The Schools and Libraries Division (SLD) of the Schools & Libraries (USAC), in its role as Fund Administrator, announces that it will consider applications for Year 2 (July 1, 1999 - June 30, 2000) that were received by SLD after April 6, 1999 and before March 2, 2000. These applications will be considered after SLD issues the last wave of funding commitments on Year 3 applications that were received within the Year 3 window (between November 10, 1999 and January 19, 2000).

We expect that we will complete our review of in-the-window Year 3 applications by late May 2000. Depending on the volume of additional applications for Year 2 we receive, we hope to be able to make commitments on post-window Year 2 applications before the end of July. With respect to recurring charges, they will have to have been for services delivered during the period July 1, 1999 and June 30, 2000. The Federal Communications Commission (FCC) will determine whether to extend the funding year for non-recurring charges, such as the installation of internal connections.

Further, SLD announces that there will be less than $250 million available for additional funding requests for Year 2, and that SLD will continue to accept Forms 471 for Year 2 funding requests for another 30 days, until 11:59 PM ET on March 31, 2000. These Forms 471 must be filed pursuant to a Form 470 filed for Year 2 (i.e., after December 1, 1998) and the requisite 28-day waiting period. Consistent with FCC rules, applications received between March 2, 2000 and March 31, 2000 will be considered in the order set forth below. If remaining funds are insufficient to fully fund all approved requests within any of the priority tiers below, Funding Requests (or applications in the last tier) will be considered in the order in which they were received.

• The highest priority will be given to Funding Requests (that is, individual Funding Request Numbers (FRNs) even if they are on applications with other FRNs at lower discount percentages) at the 80-90% discount level (defined by the rules as representing the most disadvantaged schools and libraries), where the applicant did not receive discounts for Year 1 or Year 2 and/or where the applicant received discounts only for basic telephone service in prior applications for Year 1 or Year 2;
• The next highest priority will be given to Funding Requests at the 80-90% discount level, where the applicant received discounts for any eligible service in prior applications for Year 1 or Year 2;
• Final priority will be given to all other Funding Requests and applications received between March 2, 2000 and March 31, 2000.

If you wish to file a FCC Form 471 (Services Ordered and Certification Form) during this 30-day period, you must use a Year 2 form (i.e., dated December 1998). This form is available by downloading it from the SLD web site. It is also available from the Client Service Bureau by calling 1-888-203-8100. This form must be filed manually. When properly completed, it should be mailed to:

SLD-Form 471 Year 2
P.O. Box 7026
Lawrence, Kansas 66044-7026

or sent by express delivery service or U.S. Postal Service, Return Receipt Requested, to:

SLD-Form 471 Year 2
C/O Ms. Smith
3833 Greenway Drive
Lawrence, Kansas 66046
888-203-8100.

The new 30-day period will make it difficult to file a Form 470 to order new services, wait the required 28 days before signing contracts, and then submit a Form 471 by the 30th day.However, if you wish to try to file a Form 470 and a Form 471 during these 30 days, click HERE for further instructions.

Extensions of September 30, 1999, Deadline for Installation of Non-Recurring Services and Relevant Invoicing and Payment Dates

Federal Communications Commission (FCC) rules require schools and libraries to implement services for which discounts have been committed by the Schools and Libraries Division (SLD) of the Schools & Libraries (USAC) within the funding year for which the discounts were sought. The FCC, in its Fifth Reconsideration Order, extended the first funding year by six months so that the Year One funding period for schools and libraries support ran from January 1, 1998, through June 30, 1999. To account for delays in the implementation of the schools and libraries support mechanism, the FCC subsequently amended its rules to extend the deadline for schools and libraries to use their discounts for non-recurring services from June 30, 1999 (the end of the funding period) to September 30, 1999. The extended deadline gave schools and libraries with funding commitments more time in which to implement any discounted non-recurring services, such as the installation of internal connections, and thereby make greater use of their universal service discounts.

In Orders released on October 8, 1999, and December 28, 1999 (FCC 99-292 and DA 99-3013, respectively), the FCC recognized certain categories of applicants that had not been able to meet the September 30, 1999, deadline through no fault of their own. As a result, these applicants did not have sufficient time to complete installation of their non-recurring services before the September 30, 1999, deadline.

We have determined that the Funding Request Numbers (FRNs) referenced below qualify for an extension of the deadline for use of discounts for non-recurring services pursuant to the FCC's October 8 and December 28 Orders. The new deadline for receipt of non-recurring services under these FRNs is also shown below. (In some instances, the new deadline date may have already passed. Please note that the non-recurring services must have been provided on or before the new deadline date to qualify for reimbursement.) For reimbursement of discounts on these FRNs, SLD must receive an invoice (either an FCC Form 472, Billed Entity Applicant Reimbursement from an applicant, or an FCC Form 474, Service Provider Invoice Form from a Service Provider) no later than the Last Date for SLD Receipt of Invoice (472/474) shown below.

Important Reminders

• The extended deadline applies only to discounts on NON-RECURRING services. Monthly charges for such recurring services as basic phone service delivered after June 30, 1999, are NOT eligible for reimbursement from Year One funds.

• SLD cannot process an invoice for an FRN until it has received an FCC Form 486 indicating that service has actually begun to be delivered (that is, a date is featured in Column E in Item 6). If you have not already filed a Form 486, you may obtain a copy of the form and its instructions on this web site under Reference/forms, or by calling our Client Service Bureau at (888) 203-8100.

• If the applicant indicated a Contract Expiration Date on its FCC Form 471 (Services Ordered and Certification Form) that is prior to the date that discounted services are being delivered and has not previously notified us of an extension of that date by submission of an FCC Form 486, the applicant should submit a new Form 486 and include a Contract Extension Termination Date (Column G of Item 6), if State and local procurement rules permit the contract date to be so extended. SLD cannot reimburse for services delivered after the Contract Termination Date

View the PDF file of FRN Extension Dates

Final Payment Date for Year 1 Invoices Approaches

As you know, December 15, 1999 was the deadline by which the Schools and Libraries Division (SLD) of the Schools & Libraries (USAC) had to receive Billed Entity Applicant Reimbursement (BEAR) forms or Service Provider Invoice Forms (SPIF) for Year 1 commitments. We have previously reminded applicants and service providers that "Each day beyond the December 15 deadline increases the risk that your payment may not be fully processed."

USAC is generally restricted by regulation from processing SPIFs or BEARs for Year 1 commitments beyond March 31, 2000. In order to accommodate the necessary review and processing time needed to ensure that the SPIF or BEAR information is accurate and complete, and to give SLD a reasonable chance to ensure that the payment is issued by March 31, 2000, USAC needs to receive those SPIFs and BEARs well in advance of the March 31, 2000 deadline. Late invoices will generate a notification from USAC that no payment will be made.

Exceptions

The ONLY exceptions to the statement above are funding requests with a one time cost component that fall into one of the following categories:

• Contained in a Funding Commitment Decision Letter dated on or after April 4, 1999; or
• Approved for a Service Provider change and the new Service Provider received notification on or after April 4, 1999 that the SPIN change request was granted;

• Disbursements were delayed on the funding request and the applicant received a letter from the SLD dated January 27, 2000 or February 3, 2000, stating the applicant had additional time to receive the non-recurring services and submit an invoice.

In these cases, the Federal Communications Commission (FCC) has granted a waiver of the September 30, 1999 deadline for installation of non-recurring services, and therefore, an extension of the time to submit invoices to SLD for such services. A list of the Funding Request Numbers (FRN's) affected by the waiver, the last allowable date for delivery of non-recurring services, and the last date for SLD to receive an invoice will be posted to the web site soon. An announcement will be made on the web site when the FRN's are available for your review.

SLD Client Service Bureau Closed February 21

Please note that the SLD Client Service Bureau will be closed on Monday, February 21, 2000, in observance of Presidents' Day. The Client Service Bureau will resume their normal hours of operation at 8 a.m. EST on Tuesday, February 22.

$4.72 Billion Requested for E-Rate in Year Three

The Schools and Libraries Division (SLD) of the Schools & Libraries (USAC) reported to the Federal Communications Commission (FCC) that $4.72 billion in requested funding has been estimated for schools and libraries seeking E-rate discounts for Year Three. The estimated demand represents more than the previous two years combined.

Of the 36,000 applications filed within the application filing window, which closed January 19, 2000, more than 28,000, or nearly 80 percent, were submitted electronically using USAC's SLD web site. Nearly 60 percent of the requests are associated with the neediest schools and libraries: those qualifying for program discounts of 80 to 90 percent. These schools and libraries represent populations where 50 percent or more of students are eligible to participate in the National School Lunch Program. Demand in Year Three was calculated from a review of the 36,000 applications, versus the method in previous years that involved a statistical representation based upon a sample of the total applications.

In Year One of the Schools and Libraries program, more than 30,000 applications were filed for E-rate discounts requesting approximately $2.04 billion for 1998 (This equates to $2.302 billion for the extended program period of 18 months). In year two, with more than 32,000 applications, demand was approximated at $2.4 billion. The FCC set the funding cap to the full $2.25 billion in Year Two.

Certification Deadline Extended

Due to weather conditions, many overnight delivery services are unable to provide normal pick-up service today, Tuesday, January 25, 2000. Therefore, the deadline for electronic filers for the receipt of the Block 6 Certifications and Signature page of the Form 471 has been extended to 11:59 p.m. EST on Monday, January 31, 2000. If you filed electronically by 11:59 p.m. EST on January 19, 2000, your Block 6 Certifications and Signature page must be received by the extended deadline of 11:59 p.m. EST on January 31, 2000, in order for your application to be considered complete.

Applicants whose Form 471 certifications may not have been received, were sent a fax or email on Monday reminding them of the need to send their certifications by the deadline. Many of you called or emailed our Client Service Bureau seeking to confirm the receipt of your certification materials. To all who called or sent email inquiring about the status of your certification and Item 21 description of service(s) attachment, we offer this guidance:

1. If you have proof of delivery indicating that your materials were received by the SLD before the deadline, you do not need to do anything further.
2. If you received a fax or email from us indicating that we had not received your Form 471 Block 6 Certification and Block 5, Item 21 Service Description and if you have not yet sent the documents, you may wish to send your materials via express delivery service so that you can verify that your Block 6 Certification page was received by the SLD before the 11:59 p.m. EST deadline on Monday, January 31, 2000. The Block 6 Certifications and Signature page along with the Block 5, Item 21 Description of Service(s) attachment may be sent via express delivery services to:

3. If you sent your materials earlier, but have no receipt showing your materials were received by the SLD, you may wish to re-send your materials to ensure that you have proof of delivery.

• You may print a copy of Form 471, Block 6 from the pdf version of the Form 471 on the web site and complete the required information. Remember that an original signature on your completed form is required. Be certain that your Form 471application number is written on your Block 6 Certifications page. Without the application number, we are unable to match your certification with your on-line application.
• You may send copies of the materials that were previously sent if you printed Block 6 from your on-line application (with the application number printed on your Certifications and Signature page) as long as you sign the document again providing us with an original signature.

4. For those wishing to deliver these items in person, following are the directions from the Kansas City International (KCI) Airport to the SLD application processing facility--National Computer Systems (NCS)--in Lawrence, KS. An employee will be available from 8 a.m. to 11:59 p.m. EST daily from Monday, January 24, 2000 through Monday, January 31, 2000, to receive your Block 6 and Item 21 attachments for Form 471 at the South entrance of this facility.

• As you depart KCI airport, follow all signs that indicate I-29 North or Topeka.
• Once on I-29 North, seek out the signs for I-435 West. Make sure you stay in the right lane. Once you are on I-435 West, it will change to I-435 South: you will stay on this road for approximately 25 miles.
• Stay on I-435 West, until you see signs for K-10 (Lawrence)
• Take K-10 (Lawrence) for about 20 - 25 miles.
• Once you approach Lawrence, the speed limit will reduce to 65 mph. You will need to stay in the right lane.
• You will see a blue sign indicating East Hills Business Park, make a right into the Business Park. At the stop sign you will make a right again. You are looking for a building named NCS (National Computer Systems).
• NCS is around the curve at the bottom of the hill on the right.

REMINDER!! January 26, 2000, 11:59 PM EST Deadline for Filing Block 6 Certifications and Signature Page of Form 471

For those applicants who filed electronically by the close of the Form 471 filing window at 11:59 p.m. EST on January 19, remember that for your application to be considered within the filing window, your Block 6 Certifications and Signature page must be received by the SLD no later than 11:59 p.m. EST on Wednesday, January 26, 2000.

The Block 6 Certifications and Signature page along with the Block 5, Item 21 Description of Service(s) attachment may be sent via express delivery services to:

SLD-Form 471 Certification
c/o Ms. Smith
3833 Greenway Drive
Lawrence, KS 66046
(888)-203-8100

or for those wishing to deliver these items in person, following are the directions from the Kansas City International (KCI) Airport to the SLD application processing facility--National Computer Systems (NCS)--in Lawrence, KS. An employee will be available from 8 a.m. to 11:59 p.m. EST daily from Monday, January 24, 2000, through Wednesday January 26, 2000, at the South entrance of this facility to receive your Form 471 Block 6, Certifications and Signature page and Block 5, Item 21 Description of Service(s) attachments.

• As you depart KCI airport, follow all signs that indicate I-29 North or Topeka.
• Once on I-29 North, seek out the signs for I-435 West. Make sure you stay in the right lane. Once you are on I-435 West, it will change to I-435 South: you will stay on this road for approximately 25 miles.
• Stay on I-435 West, until you see signs for K-10 (Lawrence)
• Take K-10 (Lawrence) for about 20 - 25 miles.
• Once you approach Lawrence, the speed limit will reduce to 65 mph. You will need to stay in the right lane.
• You will see a blue sign indicating East Hills Business Park, make a right into the Business Park. At the stop sign you will make a right again. You are looking for a building named NCS (National Computer Systems).
• NCS is around the curve at the bottom of the hill on the right.

Website Letter

January 20, 2000

Dear School and Library Leaders, and Service Providers,

With the closing of the Year 3 filing window on January 19, SLD has received over 36,000 requests for discounts, representing a 10% increse from last year. Over 28,000 of these applications were filed successfully on-line, tripling last year's total.

These figures are a tribute to your commitment to providing better technology to learners across this nation. We thank you for your patience and perseverance, and for your suggestions for improvement. The SLD team will be working hard to provide decisions as soon as possible.

Sincerely,

Kate L. Moore
President
Schools and Libraries Division
USAC

All Technical Issues Have Been Corrected!

All Technical Issues have been corrected. Please start using the question@universalservice.org mail account for addressing web site issues.

SPIN Support for Electronic Filers!

If you are still filing your Form 471, and are filing electronically, you must have a Service Provider Identification Number (SPIN) for each Funding Request in order to progress through the electronic form, Block 5. Filers who do not have a SPIN will receive an electronic message as they attempt to complete the form, stopping the form completion, and directing them to call the SLD Client Service Bureau (CSB) for assistance.

Please note, SPIN assistance is available for those on-line filers who have not received from their service providers their SPIN's. (Manual filers are able to provide either the service provider name or the SPIN in order to meeting minimum processing standards.) Call the SLD toll-free help line, (888) 203-8100, and SLD representatives will provide a tool for completing the form electronically. You are urged to secure the SPIN from your service provider before you begin your electronic filing, but in cases where this is not possible, the Client Service Bureau can help you work through the electronic form. Remember that CSB hours of service are 8:00AM to 8:00 PM, ET.

Updated Flexibility for Using State Master Contracts

State Master Contracts are those contracts which are competitively bid and put in place by an entity of state government for use by others. If you are using a state Master Contract for Year 3 E-rate eligible services and the Master Contract expires before June 30, 2001, you may be eligible for E-rate discounts for the full funding year.

If the state Master Contract expires BEFORE July 1, 2000 please follow the directions under (A) below.

If the state Master Contract expires BETWEEN July 1, 2000 and June 30, 2001, please follow the directions under (B) below.

A. State Master Contracts expiring before July 1, 2000:

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 contract date will be pre-populated by the system (it will be related to the Form 470 number that was used in Item 12.) Manual 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, 2000 (the beginning of Funding Year 3.)
   • Item 20: the contract expiration date will be the end of the current program year (that is, June 30, 2001.) (You will reflect the true expiration date of the replacement contract on your Year 4 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 those 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, however, 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, 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:
   • the appropriate Funding Request Number (FRN);
   • the actual service provider name;
   • the actual service provider's SPIN;
   • the state entity's Form 470 Application Number which was filed for the replacement Master Contract;
   • the replacement contract number and
   • the ACTUAL expiration date of the replacement contract.
4. You must SIGN and date the marked up page(s) of the FCDL. Return it to the SLD by mail express delivery to (SLD, State Replacement Contracts, P.O. Box 300, 80 South Jefferson Road, Whippany, NJ 07981).
5. You will receive notice when the SPIN change has been made.
6. Once you receive notification that the SPIN change has been made, you can submit a Form 486 for this FRN(s) using the replacement Master Contract information.
7. 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.

B. State master contracts expiring between July 1, 2000 and June 30, 2001:

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, fill out one Block 5 covering the EXPIRING Master Contract.
2. For EACH Funding Request that you have under an expiring Master Contract, fill out an additional 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 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 contract date will be pre-populated by the system (it will be related to the Form 470 number that was used in Item 12.) Manual 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 20: the contract expiration date will be the end of the current program year (that is, June 30, 2001.) (You can reflect the true expiration date of the replacement contract on your Year 4 Form 471.)
   • Item 21: submit the description of services 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 Funding Year 3, but 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, however, you will NOT be eligible for discounts for the replacement Master Contract for the remaining portion of Funding Year 3.
4. After the state replacement Master Contract has been signed, 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:
   • the appropriate Funding Request Number (FRN);
   • the actual service provider name;
   • the actual service provider's SPIN;
   • the state entity's Form 470 Application Number which was filed for the replacement Master Contract;
   • the replacement contract number and
   • the ACTUAL expiration date of the replacement contract.
5. You must SIGN and date the marked up page(s) of the FCDL. Return it to the SLD by mail or express delivery to (SLD, State Replacement Contracts, P.O. Box 300, 80 South Jefferson Road, Whippany, NJ 07981).
6. You will receive notice when the SPIN change has been made.
7. Once you receive notification that the SPIN change has been made, you can submit a Form 486 for this FRN(s) using the replacement Master Contract information.
8. 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.

Directions to the NCS facility in Lawrence, KS for those wanting to deliver applications in person

For those applicants wanting to deliver your Form 471 application in person, following are the directions from the Kansas City International (KCI) Airport to the SLD application processing facility--National Computer Systems (NCS)--in Lawrence, KS. An employee will be available from 8 a.m. to 11:59 p.m. EST daily from Saturday, January 15, through the close of the window on January 19 to receive your application at the South entrance of this facility.

• As you depart KCI airport, follow all signs that indicate I-29 North or Topeka.
• Once on I-29 North, seek out the signs for I-435 West. Make sure you stay in the right lane. Once you are on I-435 West, it will change to I-435 South: you will stay on this road for approximately 25 miles.
• Stay on I-435 West, until you see signs for K-10 (Lawrence)
• Take K-10 (Lawrence) for about 20 - 25 miles.
• Once you approach Lawrence, the speed limit will reduce to 65 mph. You will need to stay in the right lane.
• You will see a blue sign indicating East Hills Business Park, make aright into the Business Park. At the stop sign you will make a right again. You are looking for a building named NCS (National Computer Systems).
• NCS is around the curve at the bottom of the hill.

Additional Help for On-Line Filers

Beginning Saturday, January 14, 2000, the SLD web site will be available for on-line filers from 6 a.m. to 2 a.m. EST. These on-line filing hours will continue until Wednesday, January 19, when the web site will be available from 6 a.m. to 11:59 p.m. EST, the close of the Form 471 filing window.

Electronic Filers Note! SLD Must Receive Your Signed Certification Forms by January 26!

The active use of electronic filing of FCC Forms 471 is good news for applicants and SLD alike, facilitating SLD's processing of your application once filed. We regret that system performance has slowed down in light of heavy volume, and are taking steps to rectify this performance problem.

On-line applicants are reminded, however, that no FCC Form 471 is complete without Block 6: a completed and signed certification form. SLD must receive your certification forms in Kansas at one of the addresses below:

If regular postal service:

SLD-Form 471
P.O.Box 7026
Lawrence, KS 66044-7026

Or, for express delivery services or U.S. Postal Service, Return Receipt Requested:

SLD-Form 471
c/o MS. Smith
3833 Greenway Drive
Lawrence, KS 66046
1-888-203-8100

Applicants must also submit at either of the above addresses on paper the item 21 attachments for the electronically filed Form 471.

Recognizing that on-line system performance has been slow, and in order to facilitate on-line filing, Block 6 certifications from Forms 471 which have been COMPLETED on-line by the closing of the window, 11:59PM, EST, Wednesday, January 19, may be mailed once the electronic filing is complete. Such certifications must, however, be RECEIVED by SLD no later than January 26, 11:59 PM, EST.

On Block 6, the certification form, you must provide an original signature, in ink, of the authorized person. Make sure your printer has, on Block 6, successfully printed the system-generated application number for the Form 471 which is being certified. The application number is the critical link to the electronic form in the SLD computer system.

If the certification block for an electronically completed Form 471 filed by January 19 is not received by January 26, the funding request will be considered as having been received the date the certification is finally received by SLD.

SLD urges on-line filers to complete their applications as soon as possible. The Client Service Bureau will be open twelve hours a day over the weekend to help you, and web site hours are being extended.

Update on December 15 Deadline for Submitting BEAR Forms and Service Provider Invoices for Year 1

Please note that the December 15, 1999, deadline for submitting Billed Entity Applicant Reimbursement (BEAR) forms and Service Provider Invoices for Year One (1998-1999) has passed. Although the Schools and Libraries Division (SLD) of the Schools & Libraries (USAC) will still accept BEARs or invoices for Year One commitments, please be aware that we do have an absolute deadline for USAC to make payments. While we will make every attempt to process your BEAR or invoice, we cannot promise that they will be paid. Each day beyond the December 15 deadline increases the risk that your payment may not be fully processed.

The only exceptions to the statement above are those applicants with funding commitments for non-recurring services, such as the installation of internal connections, that fall into one of the following categories:

• The funding commitment was in a Funding Commitment Decision Letter dated either near, or after, the September 30, 1999, deadline ;
• USAC approved a request to change the service provider late in Year One or after the funding year ended;
• A funding commitment was issued, but disbursements of discounts to the applicant's service provider pursuant to that commitment had to be delayed until late in Year One or after the funding year ended (USAC will be notifying applicants who fall into this category).

With respect to these cases, the Federal Communications Commission (FCC) issued an Order (DA 99-3013, released December 28, 1999) granting a waiver of the disbursement deadline, to provide applicants and service providers sufficient time to gather and complete the necessary documentation and USAC to review invoices and make payments.

New Flexibility for Using State Master Contracts

State Master Contracts are those contracts which are competitively bid and put in place by an entity of state government for the use of public entities within the state. If you are using a state Master Contract for Year 3 services and it is going to expire before June 30, 2001, you may be eligible for E-rate discounts for the full funding year if the state files a Form 470 to begin the procurement process for the replacement contract.

Here's how to apply for E-rate discounts for the entire period of Funding Year 3 if your Master Contract expires during the E-rate program year.

1. For EACH Funding Request (FRN) that you have under an expiring Master Contract, fill out Block 5 for one Funding Request (FRN) covering the EXISTING Master Contract.
2. Fill out an additional Block 5 Funding Request (FRN) covering the REPLACEMENT Master Contract, using the guidelines below:

• Use the same establishing Form 470 number as was used for the existing Master Contract.
• In Item 13 SPIN number, put 143999999.
• Put STATE REPLACEMENT CONTRACT as the Service Provider name in Item 14. (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 5, below.)
• Use "SRC" as the prefix in front of the existing Master Contract number. (For example, if the existing Master Contract number is WNT-98-005, use the number SRCWNT-98-005 as the contract number in Item 15.)
• The allowable contract date will be put in by the system (it will be related to the Form 470 number that was used in Item 12.) Manual filers may leave this blank.
• The contract award date should be the day AFTER the expiration of the existing Master Contract.
• The service start date should be the day AFTER the expiration of the existing Master Contract.
• The contract expiration date will be the end of the current program year (that is, June 30, 2001.) (You can reflect the true expiration date of the replacement contract on your Year 4 Form 471.)
• The description of services MUST be the same as what is contained in the existing Master Contract. (If the replacement Master Contract contains more services they cannot be part of this request.)
• The monthly pre-discount amounts MUST be the same as what is contained in the existing Master Contract and the annual amount will cover the portion of the current program year remaining after expiration of the existing Master Contract. (If the replacement Master Contract charges are different in subsequent years, they can be reflected in Forms 471 filed in those subsequent years.)
• If there are no non-recurring (one-time) charges to be incurred under the existing Master Contract, there can be no claim for non-recurring (one-time) charges under the replacement Master Contract for this filing year. (You may claim non-recurring charges incurred in subsequent program years in Forms 471 filed in those subsequent years.)

1. When the state is ready to begin the competitive procurement process for the replacement Master Contract, it will have to file a Form 470 (and have it posted for a minimum of 28 days prior to signing the replacement contracts). If the state does NOT file the Form 470, however, you will NOT be eligible for discounts for the replacement Master Contract for the remainder of the program year.
2. You will indicate the request for 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) and indicating on the appropriate Funding Request Number (FRN) the actual service provider name, SPIN, the state's Form 470 Application Number, the replacement contract number and the ACTUAL expiration date of the replacement contract.
3. You must SIGN and date the marked up page(s) of the FCDL. Return it to the SLD by mail to (SLD, State Replacement Contracts, P.O. Box 125, 80 Jefferson St., Whippany, NJ 07981).
4. You will receive notice when the SPIN change has been made.
5. Once you receive notification that the SPIN change has been made, you can submit a Form 486 for this FRN(s) using the new contract information.
6. In subsequent program years when you file a Form 471, you will reference the state's Form 470 application number, as the establishing Form 470 for this replacement Master Contract.

SLD Client Service Bureau, Open January 15, 16 and 17 to Assist Applicants

In order to assist applicants as we near the end of the Form 471 filing window, the Client Service Bureau will be open this weekend, January 15 and 16, from 8 a.m. to 8 p.m. EST. In addition, the Client Service Bureau will also be open from 8 a.m. to 8 p.m. EST on Monday, January 17. For additional help with your applications, you can reach the Client Service Bureau Help Line by calling 1-888-203-8100.

Remember, the closing date of the Form 471 window is January 19, 2000, at 11:59 PM EST.

Year 2 Cumulative Funding Commitment Decision Data is now Available

Cumulative Funding Commitment Decision Data is now available for Year 2. Reports are available in PDF format and text delimited files which have been compressed to a zip file. Instructions are availble online to help you decide which report you need and downloading reports.

• Year 2 Cumulative Funding Commitment Decision Data

New Tool To Ease Electronic Filing

To help applicants who represent school districts, Form 471, Block 4 has been redesigned to eliminate the need to redundantly execute the search for schools by school districts. An applicant may now search for ALL schools in a school district. From the resulting list, the applicant can add the necessary data to each selected school. (Previously, the applicant had to re-execute the search after addition of data for a given school.) Read More...