Presented by:Presented by:

Joe MelloyJoe Melloy

April 19, 2007April 19, 2007

E-rate – What is it?

22

My BackgroundMy Background

Joseph P. Melloy, Sr.Joseph P. Melloy, Sr. 33 years with IBM33 years with IBM

Technical marketing, systems engineering, managementTechnical marketing, systems engineering, management Higher Education Technology ConsultantHigher Education Technology Consultant

1981-19931981-1993 President, Technology Planning Group,IncPresident, Technology Planning Group,Inc

1993 to the present1993 to the present Higher education clients – Mid-Atlantic areaHigher education clients – Mid-Atlantic area

Delaware, Virginia, Maryland, Pennsylvania, New JerseyDelaware, Virginia, Maryland, Pennsylvania, New Jersey K-12 clients – Pennsylvania and DelawareK-12 clients – Pennsylvania and Delaware

Recent activities: Vision 2015 Working GroupRecent activities: Vision 2015 Working Group Technology plans – charter schoolsTechnology plans – charter schools

E-Rate expertise – Pennsylvania and DelawareE-Rate expertise – Pennsylvania and Delaware

33

Contact InformationContact Information

joemelloy@comcast.netjoemelloy@comcast.net Cell 302-547-8517Cell 302-547-8517

44

AgendaAgenda Background of the E-RateBackground of the E-Rate What products and services are eligible for What products and services are eligible for

discounts?discounts? How is the discount determined?How is the discount determined? When is the next E-Rate process “Year”?When is the next E-Rate process “Year”? What is the process?What is the process? HOW HAS DELAWARE DONE IN HOW HAS DELAWARE DONE IN

ACQUIRING E-RATE FUNDS?ACQUIRING E-RATE FUNDS? What is my school or district’s plan to secureWhat is my school or district’s plan to secure E-Rate funding for educational technology?E-Rate funding for educational technology?

55

What is E-rate?What is E-rate? Telecommunications Act of 1996 established Telecommunications Act of 1996 established

“Universal Service Discount Program for “Universal Service Discount Program for Schools and Libraries”Schools and Libraries”

Annual $2.25 billion programAnnual $2.25 billion program Provides 20-90% discounts on Provides 20-90% discounts on

telecommunications services, Internet telecommunications services, Internet access, and internal connectionsaccess, and internal connections

Fund made up from charges on your phone Fund made up from charges on your phone billsbills

Most public libraries, public and private K-12 Most public libraries, public and private K-12 schools, including charters and vo-techs are schools, including charters and vo-techs are eligibleeligible

66

How Has Delaware Done? How Has Delaware Done?

Over ten Over ten years of the years of the E-Rate E-Rate program…..program…..

77

The Answer:The Answer:

NOT NOT WELL!WELL!

88

Last PlaceLast Place Among Fifty States for Among Fifty States for EachEach of the Ten Yearsof the Ten Years of the of the

ProgramProgram Source: Article: “E-Rate Discount Totals Source: Article: “E-Rate Discount Totals Over 10 Years’Over 10 Years’ Source www.nctet.orgSource www.nctet.org

Total of Ten yearsTotal of Ten years of Discounts: of Discounts: Delaware Delaware $11,044,978.$11,044,978. Similar populationSimilar population states: states:

New HampshireNew Hampshire$15,875,210$15,875,210 South DakotaSouth Dakota $42,258,467.$42,258,467. Rhode IslandRhode Island $58,958,867.$58,958,867. North DakotaNorth Dakota $32,628,670$32,628,670

99

DE Comparison to Nearby DE Comparison to Nearby StatesStates

NORMALIZE 10 years of data to $ PER NORMALIZE 10 years of data to $ PER STUDENT / PER YEAR COMPARISONSTUDENT / PER YEAR COMPARISON

StateState E-Rate $E-Rate $ #Students#Students $ / Student/ Yr$ / Student/ Yr MD $152mm 865,561MD $152mm 865,561 $17.54 $17.54 PAPA $629mm $629mm 1,828,0891,828,089 $34.42 $34.42 NJNJ $436mm $436mm 1,393,3471,393,347 $31.28 $31.28 DE $11mm 116,342DE $11mm 116,342 $ 9.50 $ 9.50

1010

New DE E-Rate Strategy New DE E-Rate Strategy NeededNeeded

First, Let’s Talk About the Details of First, Let’s Talk About the Details of the E-Rate………the E-Rate………

Strategy will evolve by the end of Strategy will evolve by the end of this presentation after we look atthis presentation after we look at

THE PROCESS……..THE PROCESS……..

1111

Who Administers E-rate?*Who Administers E-rate?* FCC FCC

Created program and its rulesCreated program and its rules USAC USAC

Universal Services Administrative CompanyUniversal Services Administrative Company Created by FCC to run E-rate and other Created by FCC to run E-rate and other

universal service programsuniversal service programs Pays invoicesPays invoices

SLD SLD Schools and Libraries DivisionSchools and Libraries Division Entity within USAC that runs E-rateEntity within USAC that runs E-rate Makes no policy decisionsMakes no policy decisions

1212

E-Rate FundsE-Rate Funds

Who Who contributescontributes the the funds that are set aside funds that are set aside to fund technology for to fund technology for schools in schools and schools in schools and libraries?libraries?

1313

The Answer:The Answer:

We all do!We all do!When we pay our When we pay our telephone bills….telephone bills….Universal Access Charge Universal Access Charge

1414

Public Service Commision Public Service Commision ReportReport

Delaware PSC, FCC hearing, June 14, 2005Delaware PSC, FCC hearing, June 14, 2005 ““Delaware end-users pay 10.2% surcharge Delaware end-users pay 10.2% surcharge

on their telephone bills”.on their telephone bills”. ““In 2005, Delawareans will pay $21 million In 2005, Delawareans will pay $21 million

in this surcharge and will receive back only in this surcharge and will receive back only $685,000 in federal E-Rate funds. $685,000 in federal E-Rate funds. Something must be done to limit the size Something must be done to limit the size of this fund.”of this fund.”

Source:Source: Bruce Burcat, Executive DirectorBruce Burcat, Executive Director Delaware Public Service CommissionDelaware Public Service Commission

1515

How are they distributed?How are they distributed?1.1. WE APPLY FOR THEM.WE APPLY FOR THEM.

2.2. OUR APPLICATIONS ARE APPROVED, OUR APPLICATIONS ARE APPROVED, BASED ON THE FACTS WE PROVIDE.BASED ON THE FACTS WE PROVIDE.

3.3. THE DISCOUNTS ARE DETERMINED THE DISCOUNTS ARE DETERMINED BY THE ADMINISTRATIVE ENTITY IN BY THE ADMINISTRATIVE ENTITY IN WASHINGTON – USAC.WASHINGTON – USAC.

4.4. THE APPROVED SERVICES ARE THE APPROVED SERVICES ARE PROVIDED AT THE DISCOUNTED PROVIDED AT THE DISCOUNTED RATE.RATE.

1616

Why Are We Talking About E-Why Are We Talking About E-Rate?Rate?

DE schools and libraries can apply DE schools and libraries can apply alongside 30,000 other schools and alongside 30,000 other schools and libraries in U.S libraries in U.S You want to make sure you know how You want to make sure you know how

to complete forms, etc., so you can to complete forms, etc., so you can get the funding you’re entitled to.get the funding you’re entitled to.

Work with a qualified consultant Work with a qualified consultant and/or utilize in-house staff to insure and/or utilize in-house staff to insure accuracy and legitimacy of all accuracy and legitimacy of all requests.requests.

1717

Fair Warning!Fair Warning! E-rate is not an easy processE-rate is not an easy process Only for the strong willed and Only for the strong willed and

determineddetermined Long process, a lot of paperwork, Long process, a lot of paperwork,

some frustrationsome frustration Patience is needed, in addition to Patience is needed, in addition to

diligence in reading correspondencediligence in reading correspondence Rewards can be greatRewards can be great Never ever try to cheat the programNever ever try to cheat the program

1818

Resources to Remember*Resources to Remember* SLD web site: SLD web site:

www.sl.universalservice.orgwww.sl.universalservice.org SLD CSB: SLD CSB: 888-203-8100888-203-8100 Or Google search “SLC E-Rate”Or Google search “SLC E-Rate” Other state E-Rate websitesOther state E-Rate websites

1919

ApplicantsApplicants

Must use E-rate Entity Number in order to participateMust use E-rate Entity Number in order to participate One for every building in your district or libraryOne for every building in your district or library All applicants already have unless it’s a new buildingAll applicants already have unless it’s a new building

Must have FCC Registration Number (FCCRN)*Must have FCC Registration Number (FCCRN)* Just for billed entityJust for billed entity All applicants should have obtained in Yr 7All applicants should have obtained in Yr 7

Must have NCES code (schools) or FSCS (libraries)Must have NCES code (schools) or FSCS (libraries) Listed on PA E-rate website under Helpful DocumentsListed on PA E-rate website under Helpful Documents Leave blank if none existsLeave blank if none exists

2020

Service Providers*Service Providers* Must obtain Service Provider Identification Must obtain Service Provider Identification

Number in order to participate (9 digit #)Number in order to participate (9 digit #) Info on SLD web site under Vendor AreaInfo on SLD web site under Vendor Area Service Provider/SPIN Search on SLD web siteService Provider/SPIN Search on SLD web site

Not required to pay into Fund to get SPINNot required to pay into Fund to get SPIN Only telecom carriers must payOnly telecom carriers must pay

Only sign contracts with providers that have Only sign contracts with providers that have SPINSPIN

Providers should update contact info on Form Providers should update contact info on Form 498, Block 11498, Block 11

2121

Funding PrioritiesFunding Priorities Needed - demand exceeds cap of $2.25 billionNeeded - demand exceeds cap of $2.25 billion Priority OnePriority One: Telecommunications and Internet : Telecommunications and Internet

AccessAccess All approved-inside the window-likely to be All approved-inside the window-likely to be

fundedfunded Priority TwoPriority Two: Internal Connections & Basic : Internal Connections & Basic

Maintenance of ICMaintenance of IC Funds go first to neediest applicants (90% Funds go first to neediest applicants (90%

discount level), then to others in order of discount level), then to others in order of discount until funds are exhausteddiscount until funds are exhausted

Year 1 -- funded to 70%Year 1 -- funded to 70% Year 2 – all approved applications fundedYear 2 – all approved applications funded Year 3 – down to 82% Year 3 – down to 82% Year 4 – down to 87%Year 4 – down to 87% Year 5 – down to 81% Year 5 – down to 81% Year 6 – down to 70% - significant rollover fundsYear 6 – down to 70% - significant rollover funds Year 7 – down to 81%Year 7 – down to 81% Year 8, 9, 10 – approximately 86%Year 8, 9, 10 – approximately 86%

2222

Funding PrioritiesFunding Priorities What does this mean?What does this mean?

Always apply for all Always apply for all telecommunications services and telecommunications services and Internet access – you’ll get those Internet access – you’ll get those discounts.discounts.

Make judgement call on Make judgement call on internal internal connections connections depending on discount depending on discount level and time available to complete level and time available to complete applicationapplication

Exactly what services ARE Exactly what services ARE and are NOT eligible?and are NOT eligible?

Current and Future Current and Future Services You Use or Plan Services You Use or Plan

to Useto Use

2424

Eligible Telecom ServicesEligible Telecom Services

MUST be provided by regulated MUST be provided by regulated telecommunications carriertelecommunications carrier

Basic Telecom ServicesBasic Telecom Services Local, long distance & voice mailLocal, long distance & voice mail

Advanced Telecom Services Advanced Telecom Services T-1, ATM, Frame Relay, ISDN, lit fiber, etc.T-1, ATM, Frame Relay, ISDN, lit fiber, etc.

Satellite services and leased dishesSatellite services and leased dishes Voice over IP (Internet Protocol) -Voice over IP (Internet Protocol) -

ADDED IN 2007! ADDED IN 2007!

Including most taxes

and surcharges!

2525

E-Rate Discount ChecklistE-Rate Discount Checklist

Source:Source: www.universalservice.org/www.universalservice.org/

““Eligible Services List”Eligible Services List” Note page number in first columnNote page number in first column

IMPORTANT:IMPORTANT:““Check conditions of Eligibility of Check conditions of Eligibility of each service or product”each service or product” Can be done at school, district or Can be done at school, district or

consortium level. consortium level.

2626

Eligible Telecom Services, Eligible Telecom Services, cont.cont.

Wireless ServicesWireless Services Cellular service – all staff eligibleCellular service – all staff eligible Paging servicePaging service

Calling cardsCalling cards Not pre-paid cardsNot pre-paid cards

Centrex, custom calling featuresCentrex, custom calling features Installation fees OKInstallation fees OK Can be installed before funding year Can be installed before funding year

begins so services are ready by July 1begins so services are ready by July 1

2727

IneligibleIneligible Telecom Services Telecom Services

900 Calls900 Calls PayphonesPayphones Cost of not-publishing phone numbersCost of not-publishing phone numbers Cost of additional directory listingsCost of additional directory listings End user equipment (phones, beepers, End user equipment (phones, beepers,

cell phones, fax machines, etc.)cell phones, fax machines, etc.)

2828

Eligible-Tariffed Eligible-Tariffed Services/MTM*Services/MTM*

Services that are purchased mainly from a Services that are purchased mainly from a phone company, such as T1phone company, such as T1

OROR Monthly services such as cell or Internet Monthly services such as cell or Internet

AccessAccess For which no contract is signedFor which no contract is signed Must competitively bid every year, Must competitively bid every year,

regardless of competition in your area for regardless of competition in your area for those servicesthose services

2929

Fiber Networks*Fiber Networks*

Dark Fiber (unlit) is not eligibleDark Fiber (unlit) is not eligible Lit Fiber is eligible … IFLit Fiber is eligible … IF

Modulating electronics are bundled Modulating electronics are bundled with the lease cost of the fiberwith the lease cost of the fiber

Applicant will never own fiberApplicant will never own fiber Applicant cost allocates any lease Applicant cost allocates any lease

of fiber that isn’t being used in that of fiber that isn’t being used in that funding year.funding year.

3030

Internet AccessInternet Access

Eligible:Eligible: Subscription fee to Subscription fee to

ISP ISP E-mail E-mail Firewall feesFirewall fees Webhosting Webhosting Internet bandwidthInternet bandwidth

Ineligible:Ineligible: FilteringFiltering Any remote Any remote

access outside access outside school property school property to internetto internet

Blackberry Blackberry services services presumed presumed ineligibleineligible

3131

On-premise, Priority 1 On-premise, Priority 1 Equipment*Equipment*

Permitted if bundled from telco or Permitted if bundled from telco or ISPISP

Must certify:Must certify: No applicant ownership – everNo applicant ownership – ever No exclusive useNo exclusive use LAN functions without use of LAN functions without use of

equipmentequipment Service provider maintains equipmentService provider maintains equipment

Not applicantNot applicant

3232

Eligible Internal ConnectionsEligible Internal Connections

Network and Network and phone wiringphone wiring

RoutersRouters SwitchesSwitches HubsHubs Network Network

serversservers Video codecsVideo codecs

System operating System operating softwaresoftware

Wireless Access PointsWireless Access Points Private branch exchange Private branch exchange

(PBXs)(PBXs) FirewallsFirewalls Anything needed for Anything needed for

transport – not end user transport – not end user devicesdevices

Installation of eligible Installation of eligible internal connectionsinternal connections

““Basic” Maintenance Basic” Maintenance contracts on eligible contracts on eligible internal connectionsinternal connections basic maintenance basic maintenance

3333

IneligibleIneligible Internal Internal ConnectionsConnections

Network management s/wNetwork management s/w Routers used for remote Routers used for remote

accessaccess Curriculum softwareCurriculum software Phones, beepersPhones, beepers Owned WANsOwned WANs Salaries of SD staff to Salaries of SD staff to

install or maintain network install or maintain network or componentsor components

Any equipment used for Any equipment used for remote access to network remote access to network or Internetor Internet

Personal Personal computerscomputers

FAX machinesFAX machines Asbestos removalAsbestos removal Cameras Cameras Electrical wiringElectrical wiring Teacher trainingTeacher training

3434

Gotcha!Gotcha!Words to Never Use with Words to Never Use with

SLCSLC 2-way 2-way

Radios/walkie-Radios/walkie-talkie (direct talkie (direct connect OK as a connect OK as a cell service)cell service)

FilteringFiltering Network Network

monitoringmonitoring Directory Directory

advertising/listingsadvertising/listings

Cellular Cellular phonesphones ManagementManagement RedundancyRedundancy HelpdeskHelpdesk 24 hour technical 24 hour technical

supportsupport Insurance policiesInsurance policies Remote accessRemote access

3535

Application process at a Glance*Application process at a Glance*

3636

UPCOMING: Year 11 - UPCOMING: Year 11 - DetailsDetails

For services rendered 7/1/2008 - For services rendered 7/1/2008 - 6/30/20096/30/2009

Application process begins Nov., 2007Application process begins Nov., 2007 Five months away…..Five months away…..ninety day exerciseninety day exercise.. Write tech plan nowWrite tech plan now Review Form 470 requirementsReview Form 470 requirements File 471 when window opens (normally File 471 when window opens (normally

beginning of November) beginning of November) Window will close first week in February, 2008Window will close first week in February, 2008

Must be inside window to be funded for 08-Must be inside window to be funded for 08-0909

3737

You Must Have a You Must Have a Technology Plan!*Technology Plan!*

Five SLC technology plan criteriaFive SLC technology plan criteria Goals and Strategies for using technologyGoals and Strategies for using technology Needs AssessmentNeeds Assessment Professional DevelopmentProfessional Development Budget – including sources of fundingBudget – including sources of funding EvaluationEvaluation

Must align with 470 request for servicesMust align with 470 request for services Must be “written” before 470 is filedMust be “written” before 470 is filed Must cover full 12 months of NEXT funding yearMust cover full 12 months of NEXT funding year Plan must be approved by DCET (Denise Allen)Plan must be approved by DCET (Denise Allen)

3838

Technology Plans, cont.Technology Plans, cont. ““VendorsVendors” cannot write or approve technology ” cannot write or approve technology

plansplans No tech plan required for basic phone service or No tech plan required for basic phone service or

long distance (includes cell and voice mail)long distance (includes cell and voice mail) Centrex is not basic phone serviceCentrex is not basic phone service

Be sure to include dates of tech plan!Be sure to include dates of tech plan! Get approval letter by July 1Get approval letter by July 1

then Print/Maintain Approval Letterthen Print/Maintain Approval Letter Tech plans approved for no more than 3 yearsTech plans approved for no more than 3 years Certify on 486 who approved planCertify on 486 who approved plan Can amend technology plan if yours is not specific Can amend technology plan if yours is not specific

enoughenough

3939

Competitive BiddingCompetitive Bidding

Everyone must do itEveryone must do it Even if no competition in your areaEven if no competition in your area Even if bidding under state lawEven if bidding under state law Must be done when signing Must be done when signing anyany new new

contracts contracts Must be done each year for all tariffed/MTM Must be done each year for all tariffed/MTM

servicesservices Bidding on web site does not exempt Bidding on web site does not exempt

you from bidding under state lawyou from bidding under state law Can be done simultaneouslyCan be done simultaneously Only exception is if someone bid it for youOnly exception is if someone bid it for you

4040

Choosing the Winning BidChoosing the Winning Bid Applicant must to pick “most cost-effective bid”Applicant must to pick “most cost-effective bid” Cost doesn’t have to be only factor, but must be Cost doesn’t have to be only factor, but must be

most heavily weighted factormost heavily weighted factor For example, if you have 3 bid evaluation criteria, For example, if you have 3 bid evaluation criteria,

price must be at least 34% of total weight. price must be at least 34% of total weight. Examples of other specified factors:Examples of other specified factors:

Prior experiencePrior experience Personnel qualificationsPersonnel qualifications Technical excellenceTechnical excellence Management capabilityManagement capability Cost of switching providersCost of switching providers Etc.Etc.

4141

Signing E-rate Contracts*Signing E-rate Contracts* Signing Contracts/Selecting Provider must be done Signing Contracts/Selecting Provider must be done

beforebefore you submit 471 you submit 471 Be careful not to make any decisions, sign Be careful not to make any decisions, sign

anything or file any forms during 28 day waiting anything or file any forms during 28 day waiting period.period.

Contracts must be signed and dated by both Contracts must be signed and dated by both partiesparties

Must sign contracts unless tariff or MTM serviceMust sign contracts unless tariff or MTM service If selecting PEPPM, no contract needed, but you must be If selecting PEPPM, no contract needed, but you must be

able to explain why you chose reseller A over reseller Bable to explain why you chose reseller A over reseller B

4242

Signing E-rate Contracts*Signing E-rate Contracts*

List contract extensions and contract List contract extensions and contract expiration datesexpiration dates These also must be listed in RFP or 470, Item These also must be listed in RFP or 470, Item

7b7b Include non-E-rate funding out clausesInclude non-E-rate funding out clauses Separate internal connections/wiring Separate internal connections/wiring

portions of contracts for highest discount portions of contracts for highest discount schoolsschools

4343

What is My Discount?*What is My Discount?* Two criteria make up discount:Two criteria make up discount:

Poverty level - Federal School LunchesPoverty level - Federal School Lunches Location -rural classification Location -rural classification

4444

Discount Matrix for Single Discount Matrix for Single School*School*

Urban Rural

<1% 20% 25%

1-19% 40% 50%

20-34% 50% 60%

35-49% 60% 70%

50-74% 80% 80%

75-100% 90% 90%

% of Students Eligible for School Lunch Program Discounts

4545

Alternative Measures to NSLP Alternative Measures to NSLP Data*Data*

Goal: Discounts based on true eligibility – not participation.Goal: Discounts based on true eligibility – not participation. 2 Ways to do this2 Ways to do this

Take existing participation data and add to itTake existing participation data and add to it Using sibling matchUsing sibling match Using existing family income dataUsing existing family income data

Conduct family income surveyConduct family income survey Must survey 100% of families. If 50% response rate, then OK to Must survey 100% of families. If 50% response rate, then OK to

extrapolate the restextrapolate the rest Maintain complete recordsMaintain complete records Sample survey available*Sample survey available* Valid for 2 yearsValid for 2 years

4646

Discount Calculations by Discount Calculations by Entity*Entity*

Schools: Use straight matrix discountSchools: Use straight matrix discount Districts: Use weighted average of schools’ Districts: Use weighted average of schools’

individual discountsindividual discounts Library: Use the total number of students Library: Use the total number of students

eligible for NSLP in the school district in which eligible for NSLP in the school district in which the library is located divided by the total the library is located divided by the total number of students in that school district, number of students in that school district, then use matrix discountthen use matrix discount

Library System: Uses simple average of Library System: Uses simple average of member libraries’ discountsmember libraries’ discounts

Consortium: Uses simple average of Consortium: Uses simple average of members’ discountsmembers’ discounts

4747

If You Are an Individual If You Are an Individual School*School*

1 3 4 5Name of School Urban or

Rural

U or R

Total

# of

Students

# of Students

Eligible for NSLP

Oak Elementary R 100 50

7Discount

% from

Discount

Matrix

80%

6% Students

Eligible for

NSLP

Col. 5/Col. 4

50%

Always uses straight matrix discount for single schools.

4848

If You Are a School If You Are a School District*District*

1 3 4 5 8Name of School Urban or

Rural

U or R

Total

# of

Students

# of Students

Eligible for NSLP

Weighted Product

for Calculating Shared Discount

(Col. 4 x Col. 7)

Oak Elementary R 100 50 80.00Spruce Jr. High R 212 98 148.40Elm High School R 566 273 396.20

District Totals for calculating

Weighted Average Discount 878 624.60

71%10c Weighted Average Discount % for Shared Services (Col. 8 total divided by Col. 4 total. Round to nearest %)

50%46%

6% Students

Eligible for

NSLP

48% 70%

7Discount

% from

Discount

80%70%

District discounts are based on weighted average discounts, based on individual school discounts.

4949

If You are a Library If You are a Library Outlet/Branch or Library Outlet/Branch or Library

System*System*1 2 3 4 5 6 7 8

Name of Eligible Entity Entity Number and

FSCS of Library

Urban or

Rural

# of Students in

District

# of

Students

Eligible for

NSLP in

District

% of

Students

Eligible for

NSLP

Discount from

Matrix

Entity

Number of

School

District in

which Library

is Located

Treetop Branch Library 123123 987654321U 525 200 38% 60% 125246Greenleaf Branch Library 123234 U 800 130 16% 40% 125400Acorn Branch Library 123122 U 1220 350 29% 50% 125659System Totals for calculating Shared Discount

10c Library Systems % (Col. 7 total divided by # of sites in Col. 1. 50%

5050

If You Are a Consortium*If You Are a Consortium*

1

ELIGIBLE MEMBER ENTITIES Name of each individual school, school district and/or

library/library system in consortium

Treetop School District

Woodsville Library System

Forest Academy

Totals for calculating Shared Discount

10c Shared Discount % (Col. 4 total divided by # of sites in Col. 1. Round to nearest %)

66%

198%

67%

60%

71%

ENTITY DISCOUNT Individual School: Discount from Worksheet A

School District: Weighted average discount calculated in Worksheet ALibrary System: Shared discount from Worksheet B

4

5151

Paying Non-Discounted Paying Non-Discounted PortionPortion

If your discount is 65%, you MUST have If your discount is 65%, you MUST have the ability to pay the remaining 35%the ability to pay the remaining 35% Must have the nondiscounted portion in budgetMust have the nondiscounted portion in budget

Many vendors will say they can get a Many vendors will say they can get a “grant” for this amount – NOT PERMITTED“grant” for this amount – NOT PERMITTED

5252

How do YOU get E-rate $?How do YOU get E-rate $? Two choicesTwo choices

Discounts on billsDiscounts on bills OROR Reimbursement processReimbursement process

Must select one or the other for entire yearMust select one or the other for entire year Try to determine choice in contract or prior Try to determine choice in contract or prior

to choosing service providerto choosing service provider If you want discounted bills, call provider If you want discounted bills, call provider

as soon as you are fundedas soon as you are funded

5353

Document Retention*Document Retention*

Rules now require all applicants to Rules now require all applicants to retain ALL E-rate and related retain ALL E-rate and related documents for 5 years from last day documents for 5 years from last day of service in a particular funding yearof service in a particular funding year

If auditor visits in 4 years, and If auditor visits in 4 years, and documents are missing, it will be the documents are missing, it will be the basis to recover all funding from that basis to recover all funding from that funding yearfunding year

5454

Documents to Retain*Documents to Retain* Tech plan and Tech plan and

approval letterapproval letter Consultant Consultant

agreementsagreements RFP and proof of RFP and proof of

publication datepublication date All vendor All vendor

correspondencecorrespondence Winning and losing Winning and losing

bidsbids Professional Professional

development recordsdevelopment records

Contracts signed by Contracts signed by both partiesboth parties

NSLP documentationNSLP documentation BudgetsBudgets Purchase ordersPurchase orders Packing slipsPacking slips Asset or inventory Asset or inventory

recordsrecords Installation recordsInstallation records InvoicesInvoices Proof of payment to Proof of payment to

SLDSLD

5555

Transfer of Equipment*Transfer of Equipment*

E-rate funded equipment must remain at E-rate funded equipment must remain at approved site for 3 full years after installationapproved site for 3 full years after installation

After which it may be moved to another After which it may be moved to another eligible location, providing documentation is eligible location, providing documentation is retained describing transferretained describing transfer

If school or library closes, equipment may be If school or library closes, equipment may be moved to another entity, regardless of moved to another entity, regardless of discountdiscount Must send letter to SLD outlining closing of school Must send letter to SLD outlining closing of school

and transfer of equipmentand transfer of equipment Must keep documentation regarding transfer for 5 Must keep documentation regarding transfer for 5

yearsyears

5656

E-rate ConsultantsE-rate Consultants Not a bad idea if you have complex applicationNot a bad idea if you have complex application Be certain that the consultant:Be certain that the consultant:

Provides trainingProvides training Is in constant communication with youIs in constant communication with you Provides you with copies of all formsProvides you with copies of all forms Provides you with periodic updates on your Provides you with periodic updates on your

applicationsapplications Does not sign your formsDoes not sign your forms Does not have any relationships with vendorsDoes not have any relationships with vendors

Sign Letter of Agency Sign Letter of Agency

5757

E-Rate ConsultantsE-Rate Consultants Unique skill and experience requiredUnique skill and experience required Best to work Best to work with the school or districtwith the school or district Cost of Consultant?Cost of Consultant? Depends:Depends:

Fixed Price ContractFixed Price Contract Pay by the hourPay by the hour OR:OR:

Based on dollar savings in obtaining discounts Based on dollar savings in obtaining discounts for equipment, services, etc.for equipment, services, etc.

Usually 25 to 30%!Usually 25 to 30%!

5858

Future of E-rate - FCCFuture of E-rate - FCC New FCC Chairman, Kevin MartinNew FCC Chairman, Kevin Martin Appears to be supportive of E-rateAppears to be supportive of E-rate Congress will continue to evaluateCongress will continue to evaluate DELAWARE – DELAWARE –

Public Service Commission Public Service Commission unhappyunhappy that too little funds from Universal that too little funds from Universal Access Charges are coming back to the Access Charges are coming back to the state.state.

State must seize the opportunity and State must seize the opportunity and go after E-Rate funds it’s entitled to!go after E-Rate funds it’s entitled to!

5959

WHO IS RESPONSIBLE?WHO IS RESPONSIBLE?

WE ALL WE ALL ARE!ARE!

6060

Follow-up: Interested in Follow-up: Interested in Proposal of Consulting Proposal of Consulting

Services?Services? Send Letter of Intent of your E-Send Letter of Intent of your E-Rate interest:Rate interest:

Direct to: Direct to: Joe Melloy, PresidentJoe Melloy, President Technology Planning Group, Inc.Technology Planning Group, Inc. PO 149PO 149 Montchanin, DE 19710Montchanin, DE 19710

OR:OR: Email: joemelloy@comcast.netEmail: joemelloy@comcast.net

6161

Thank YouThank You

QuestionsQuestions::