Reminder for Schools that Upgraded Bandwidth During 2nd FY 2020 Window

January 12, 2021

If you are one of the 119 PA schools (listed below) that requested additional E-rate funding during the 2^nd FY 2020 window to cover increased bandwidth, please read this message carefully to determine if you must file a Form 470 to competitively bid the upgraded bandwidth for FY 2021.

As part of the 2^nd FY 2020 Form 471 application window, the FCC allowed applicants to upgrade their bandwidth and seek additional E-rate funding, even if that bandwidth level was not included on the original Form 470 or in the original vendor contract.  However, that allowance was only granted through June 30, 2021.  If an applicant’s original 470 and/or original vendor contract did not contain the increased bandwidth levels and prices, and if the vendor contract was extended to cover FY 2021, applicants are required to go through the E-rate competitive bidding process in order to make that increase bandwidth level E-rate eligible.

For example:  If the school posted a Form 470 and signed a vendor contract in FY 2019 for 500 mb of Internet, and the school increased the Internet bandwidth during the 2^nd FY 2020 Form 471 application window to 1 Gb of Internet, and the school extended their vendor contract beyond June 30, 2021, the school must post a Form 470 for FY 2021 for the 1 GB of Internet.

The same example holds true if the original vendor contract expired June 30, 2022 or after and the school upgraded to a bandwidth that wasn’t supported in the original Form 470 and/or vendor contract.

How Do You Bid a Service That is Already Under Contract?

In 2002, the FCC released a little-known appeal decision for the Kalamazoo Michigan Public Schools, more commonly known as ‘The Kalamazoo Order.’  The Kalamazoo Order says that if an applicant signed a contract (or amendment) and that contract wasn’t first competitively bid using a Form 470 and waiting at least 28 days, the applicant can bring that contract into E-rate compliance if they post a new Form 470, wait at least 28 days, evaluate all bids received, and if their existing contract continues to be the most cost effective bid, the applicant can memorialize their decision to continue with their existing contract.  The date of the memo memorializing their decision will serve as the new contract award date for the purpose of your E-rate application.  There is no requirement that the applicant sign a new vendor contract after the bid evaluation has been completed, but they may do so.

In general, I don’t advise applicants to ever sign vendor contracts without competitively bidding the services first.  But if you are ever caught in a similar situation, be sure you keep your bidding documents and memorialization memo for at least 10 years after the last date to receive service on that contract.

The FCC’s Kalamazoo Order can be found at:  http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-02-2975A1.pdf.

If you have any questions, don’t hesitate to contact me at jtschell@comcast.net.

– Julie

PA Applicants Requesting E-rate Funding in 2^nd FY 2020 Application Window

Julie Tritt Schell

PA E-rate Coordinator

717-730-7133

jtschell@comcast.net

www.e-ratepa.org