fy 2015 e-rate funding: just how much funding is available? determining your discount esl –...
TRANSCRIPT
FY 2015 E-rate
• Funding: just how much funding is available?• Determining your discount• ESL – Reductions, Eliminations, Additions • Category 2 budgets and Wi-Fi• Contracts and SAP• Consortia and Direct Connections• Forms
Form Review Team
Form Review Team
FY 2015 Funding Cap
• $2,400,000 Cap• $1,000,000 Internal Connections Funding• $3,400,000 Funding available for FY15
and FY16• We don’t know what will happen after FY16– Could be a continuation of the same– Could revert back to what we were– Could be a totally new game
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 5
• Discounts are calculated for the organization as a whole.
• Discount rates do not change based on which entities within a district/system are receiving service.
• Libraries derive their discount from the NSLP eligibility of the district in which the main outlet is located.
• Consortia continue to use simple average of member discounts.
• Rural status is determined at the district/system level and only if more than 50% of schools or libraries are rural.
Simplifying Discount Calculations
New Discount Principles
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 6
Revised Discount Matrix
Note lower top discount rate for Category Two services.
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• All schools in the school district get the same discount.
– Simplifies process by not having to calculate multiple discount rates for different groups of schools.
– When eligible, Non-Instructional Facilities (NIFs) get the same discount as the schools in district.
– Single schools within a district never get their own discount rate, even if they are the only school receiving that service.
– Urban/Rural status based on all of the schools in the district (not including NIFs).
Simplifying Discount Calculations
School Districts
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 8
• Libraries get their discount based on the percentage of student eligible for the NSLP in the school district in which the main outlet is located.
– No longer calculate discount based on all districts in which library system has outlets.
• Libraries calculate their own urban/rural status based on their own outlets. Therefore, the library system’s discount may not match the school district’s discount rate. – Bookmobile and kiosks count as library outlets.
Simplifying Discount Calculations
Libraries and Library Systems
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• By definition, NIFs are neither schools nor libraries.
• NIFs get the discount of the school district or library system, regardless of the entities they serve.
• NIFs with classrooms, like all other entities in the school district or library system, get the same district-wide discount.
• NIFs don’t get an urban/rural status– NIFs get their discount from the district/system,
regardless of their physical location and are not counted in the urban/rural determination.
Simplifying Discount Calculations
Non-Instructional Facilities (NIFs)
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 10
• School District A (10 schools)
– Total student population 3,000 students
– Total students eligible for NSLP = 1,000 students
– All but one of the schools are located in urban areas, so district = urban
– 1,000 students eligible for NSLP/3,000 students = 33% eligible
School District Calculations
School District Discount Example
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 11
• School District A
School District Calculations
School District Discount Example
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• The Census Bureau identifies two types of urban areas:
• Urbanized Areas (UAs) of 50,000 or more people;
• Urban Clusters (UCs) of at least 2,500 and less than 50,000 people.
• “Rural” encompasses all population, housing, and territory not included within an urban area.
Discount Calculation Exceptions
Urban or Rural; Well, which is is?
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• Voice Services Phase Down
– All voice service (POTS, Centrex, VOIP, cellular voice, etc.) are subject to 20 percentage point reduction per year from your regular discount
• FY 2015 = Regular discount – 20%• FY 2016 = Regular discount – 40% etc.
• Category Two Top Discount
– Top discount rate = 85% instead of 90%
Discount Calculation Exceptions
Exceptions to Discount Calculations
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• ABC Charter High School
– Total student population = 1,000
– Total student population eligible for NSLP = 800
= 80% students eligible for NSLP
Category One Discount = 90%Category One Discount for Voice = 70% (90 - 20)Category Two Discount = 85%
Advanced Discount Calculations
One School; Three Discounts
Pause for a moment…..
• Questions • Ready for Eligible Services List?
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• Eligible Services List (ESL)– Category One
• Broadband• Voice Services• Eliminated Services• Eligibility Limitations
– Miscellaneous
• Lit and Dark Fiber• Pricing Transparency
• Bundling Order
Eligible Services
Overview
– Category Two
• Internal Connections• Eliminated Internal
Connections• Managed Internal
Broadband Networks• Basic Maintenance of
Internal Connections
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 17
• Went from 49 pages to 6
• Focus support on Broadband
• Phase down of Voice Services
• Eliminates outdated legacy services and other former Priority One services
Eligible Services
Draft Eligible Services List
Eligible Services I Fall 2014 E-rate Program Applicant Trainings 18
• ATM
• Broadband over Power Lines
• Cable Modem
• DSL
• DS-1, DS-3
• Ethernet
• Fiber (Lit and Dark)
• MPLS
ESL – Category One
• Frame Relay
• ISDN
• OC-1, OC-3, OC-12, OC-n
• Satellite Services
• SMDS
• Telephone Dialup
• T-1, T-3, Fractional T-1
• Wireless Service (e.g. microwave)
Eligible Data transmission services and Internet Access
Eligible Services I Fall 2014 E-rate Program Applicant Trainings 19
• Centrex
• Circuit capacity dedicated to providing voice service
• Interconnected VoIP
• Local, long distance, 800 service
• POTS
• Radio Loop
ESL – Category One
• Satellite telephone service
• Shared telephone service
• Wireless telephone service including cellular voice
– Excludes data and text messaging
*NEW* Eligible Voice Services Subject to Phase Down
Eligible Services I Fall 2014 E-rate Program Applicant Trainings 20
• Paging
• Directory assistance charges
• Text messaging
ESL – Category One
• Custom calling services
• Direct inward dialing
• 900/976 call blocking
• Inside wire maintenance
*New* Eliminated outdated legacy services and other former Priority One services
*New* Eliminated services that do not provide broadband• Web hosting
• Voice mail
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 21
• Support is limited to those cases where individual data plans are the most cost-effective option for providing internal broadband access for portable mobile devices
• Funding is considered not cost-effective when users can already access the Internet through internal wireless broadband networks
• Exceptions may include library bookmobiles or where there is a very small number of students or patrons
ESL – Category One
Eligibility Limitations for Data Plans, Air Cards and Mobile Hotspots for Portable Devices
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 22
• Eligibility requirements:
– Must be able to demonstrate either that installing a Wireless Local Area Network (WLAN) is not physically possible or
– Must be able to provide a comparison of the costs to implement an individual data plan versus WLAN solution
• “The cost comparison may be established through the competitive bid process of seeking and comparing bids on both WLANs and individual data plans.”
ESL – Category One
Eligibility Limitations for Data Plans, Air Cards and Mobile Hotspots for Portable Devices
Eligible Services I Fall 2014 E-rate Program Applicant Trainings 23
– Access points
– Cabling
– *NEW* Caching
– Firewalls
– Network switches
– Routers
– Racks
ESL – Category Two
– UPS
– Wireless LAN Controllers
– Improvements, upgrades and software necessary to support eligible broadband internal connections components
Eligible Internal Connections
• *NEW*Subject to the Category Two five-year budget approach
Eligible Services I Fall 2014 E-rate Program Applicant Trainings 24
o Circuit Cards/Components
o Interfaces
o Gateways
o Antennas
o Servers
o Software
ESL – Category Two
o Storage Devices
o Telephone Components
o Video Components
o Voice over IP components
o Video over IP components
*NEW* Formerly Eligible as Internal Connections• The following are no longer eligible for E-rate
support:
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• Subject to the Category Two five-year budget approach
• Services provided by a third party
– Operation
– Management
– And/or monitoring of eligible broadband internal connection components
• The third party may manage the school or library’s equipment or provide the equipment as part of a lease
ESL – Category Two
*NEW* Managed Internal Broadband Services (e.g. Managed Wi-Fi)
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*NEW* Subject to the Category Two five-year budget approach
Support for basic maintenance of eligible internal connections such as– Repair and upkeep of hardware– Wire and cable maintenance– Basic tech support– Configuration changes
Support for BMIC is limited to actual work performed under the contract
ESL – Category Two
Basic Maintenance of Internal Connections
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 27
• Eligible Charges
– Taxes, surcharges and other similar reasonable charges
– Lease fees to rent or lease eligible components
– Shipping charges
– Training
– Installation and configuration
• *New* Installation may be provided by a third party
ESL - Miscellaneous
Miscellaneous
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 28
• Transparency requirements for both E-rate recipients and vendors begin in FY 2015
• Provides greater visibility into pricing and technology choices by peers
• Improves analyses performed by the Commission, state coordinators and third parties regarding the program’s effectiveness and potential improvement of cost-efficient purchasing
• Help identify best practices for purchasing and reducing waste
Pricing Transparency
Increasing Pricing Transparency
Eligible Services I Fall 2014 E-rate Program Applicant Trainings 29
• On May 23, 2014, the FCC issued the Bundling Order effective for FY 2015 and forward
• Applicants must cost allocate non-ancillary components including, but not limited to, end user devices such as:
– Telephone handsets
– VoIP handsets
– Computers
– Cell Phones
Bundling Order
– Tablets
– Netbooks
– Laptops
The Bundling Order - DA 14-712
Eligible Services I Fall 2014 E-rate Program Applicant Trainings 30
• No longer required as part of e-rate
Bundling Order
Tech Plans
Pause for a moment…..
• Questions • Determine your C2 budget?
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 32
• Each school or library receiving Category Two support in FY2015 and/or 2016 will have a five-year budget for Category Two products and services (those that distribute broadband within schools and libraries).
– Category Two products and services include Internal Connections, Managed Internal Broadband Services, and Basic Maintenance of Internal Connections.
– Products and services ordered in excess of an entity’s Category Two budget will not receive E-rate discounts.
– There is no budget for Category One services (those that connect broadband to schools and libraries).
Category Two Budgets
What are Category Two budgets?
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 33
• Each individual school and each library outlet or branch has a pre-discount budget. School districts or library systems may not average their costs across multiple school or library budgets.
• Non-instructional facilities (NIFs) – including school NIFs with classrooms and administrative buildings – do not have pre-discount budgets.– If a NIF is essential for the effective transport of information to or
within a school or library, the applicant must allocate the NIF costs to the entities benefiting from the service while the costs for ineligible services to a NIF should be allocated out.
Category Two Budgets
Which entities have Category Two budgets?
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• The pre-discount budget for a school is calculated by multiplying the total number of students at the school by $150, with a minimum of $9,200 if the school has fewer than 62 students.
• The pre-discount budget for a library is calculated by multiplying the total area in square feet – including all areas enclosed by the outer walls of the library and occupied by the library – by $2.30, with a minimum of $9,200 if the library is less than 4,000 square feet.
Category Two Budgets
How much is my budget?
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• Remember that the budget is PRE-DISCOUNT.
• For example, for a school with 1,000 students:
– At the 85% discount rate (the maximum discount rate for Category Two), the school will have a pre-discount budget of $150,000, but may receive E-rate discounts of up to $127,500.
– At the 50% discount rate, the school will have a pre-discount budget of $150,000, but may receive E-rate discounts of up to $75,000.
– At the 20% discount rate, the school will have a pre-discount budget of $150,000, but may receive E-rate discounts of up to $30,000.
Category Two Budgets
How much is my budget (cont’d)?
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 36
• On the FCC Form 471, you indicate how funding should be allocated among entities sharing services.
• Your allocation can be:
– Straight-line (all entities share the cost equally)
– Proportional (based on student count/square footage of each entity)
– Specific (you specify each entity’s share)
Category Two Budgets
How do I allocate costs for shared services?
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 37
• My school has 200 students. How do I calculate my Category Two pre-discount budget?
– 200 students x $150 per student = $30,000.
Category Two Budgets
Example 1
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• My school has 100 students and a Category Two pre-discount budget of $15,000. I plan to use the entire amount for FY2015. If we get 20 additional students for FY2016, how does this impact my pre-discount budget?
Calculate the budget each year using the total number of students that year.
– In FY2016, 120 students x $150 per student = $18,000.
– Subtract the pre-discount amount used in FY2015 to determine the amount available in FY2016. Subtract $15,000 budget used in FY2015 from $18,000.
– Available pre-discount budget for FY2016 is $3,000.
Category Two Budgets
Example 2
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 39
• My school district has three schools – School A with 25 students, School B with 50 students, and School C with 75 students. How do I correctly allocate a shared service with a pre-discount cost of $300?
Category Two Budgets
Example 3
Straight line
A = $100
B = $100
C = $100
$300
Proportional by students
A = 25/150 x $300 = $50
B = 50/150 x $300 = $100
C = 75/150 x $300 = $150
$300
Specific (e.g., usage)
A uses 30% = $90
B uses 15% = $45
C uses 55% = $165
$300
Category Two Services• Eligible Broadband Internal Connections Components
– Access points used in a wireless local area network (WLAN) environment or a wired local area network (LAN)
– Antennas, cabling, connectors, and related components used for internal broadband connections
– Caching– Firewall services and components– Switches– Routers– Racks– Uninterruptible Power Supply (UPS)/Battery Backup– Wireless controller systems– Software supporting each of the components on this list used to
distribute high-speed broadband throughout school buildings and libraries
Category Two Services• Eligible Managed Internal Broadband Services
– Services provided by a third party for the operation, management, and monitoring of eligible broadband internal connections components are eligible managed internal broadband services (e.g., managed Wi-Fi).
– E-rate support is limited to eligible expenses or portions of expenses that directly support and are necessary for the broadband connectivity within schools and libraries. Eligible expenses include the management and operation of the LAN/WLAN, including installation, activation and initial configuration of eligible components, and onsite training on the use of eligible equipment.
– In some managed services models, the third party manager owns and installs the equipment and school and library applicants lease the equipment as part of the managed services contract. In other cases, the school or library may own the equipment, but have a third party manage it for them.
Category Two Services
• Wi-Fi; Minimum of 3 options:1. Managed solution where a service provider owns,
manages, monitors, installs and maintains the Wi-Fi equipment. The school or library leases the equipment as a managed service.
2. The school or library purchases the equipment but hires a service provider to manage, monitor, install and maintain the equipment, but the school or library retains ownership.
3. The school or library purchases the equipment and performs all related management, installation and maintenance of the equipment.
Pause for a moment…..
• Questions • Ready for Contracts and SAP?
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 44
• Applicants should have a signed contract or legally binding agreement prior to filing the FCC Form 471.
– Contract must be signed and dated on or before the FCC Form 471 certified postmark date
– Legally Binding Agreement is acceptable when the applicant can demonstrate written offer and acceptance exist. Verbal offer and/or acceptance is not allowable.
• Applicants are required to comply with state and local procurement rules in addition to FCC rules
Contracts
What do I need in place prior to filing FCC Form 471 for contractual services?
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 45
• Applicants are exempted from the competitive bidding rules when ordering business-class Internet access services, if:
– the pre-discount cost is $3,600 or less annually, and
– the bandwidth provided is at least 100 Mbps downstream and 10 Mbps upstream
– service and price are commercially available
• Applicants seeking Category Two equipment are exempt from filing the FCC Form 470 if they purchase from PMC
– The FCC has not yet designated any contracts as PMC
– State master contracts and nation-wide contracts are not the same as preferred master contracts
Competitive Bidding Exemptions
When is the FCC Form 470 not required?
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• Yes, FCC Form 471 must be filed annually. There is no multi-year FCC Form 471.
• A simplified application process will be available for applicants who have a multi-year contract. They will not be required to complete a full FCC Form 471 during the subsequent contract years.
– Must complete a full FCC Form 471 the first year you apply for discounts for that contract using the new FCC Form 471
– Indicate on the FCC Form 471 you have multi-year contract the first year you apply using the new FCC Form 471
Simplified Application Process (SAP)
Do I have to file FCC Form 471 annually?
Simplifying Discount Calculations I Fall 2014 E-rate Program Applicant Trainings 47
– Contract cannot be longer than 5 years
– Required to provide basic information during the subsequent contract years
– Does not guarantee funding in the subsequent years
– Required to explain changes to funding (e.g., discount change, services, etc.)
Simplified Application Process (SAP)
Do I have to file FCC Form 471 annually? (cont’d)
Direct Connect207. In the interest of promoting access to high-speed broadband connections in the simplest and most efficient manner possible, we take action that we allow rural schools and libraries eligible for E-rate support to establish direct connections for the purpose of accessing high-speed broadband services. In many rural communities, a library with low bandwidth may be in close proximity (e.g., acrossthe street) to a school with significantly higher bandwidth and could be easily added to the schoolWAN. We find that allowing these connections will afford some schools and libraries that presentlylack access to high-speed broadband the opportunity to quickly and efficiently benefit from suchconnections.
100 meg@ $500
100 meg@ $500
1000 meg@ $750
Dark FiberLit FiberMicrowave
We recognize that it will likely be necessary to waive some of our rules to allow E-rate support for such connections. We therefore encourage applicants to file waiver requests for the purpose of seeking E-rate support for such direct connections.
1000 meg@ $750
Dark FiberLit FiberMicrowave
Category 1 servicesInclude Equipment as a managed service
Pause for a moment…..
• Questions • Ready for Lunch?