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Year 2 E-rate Funds Remain -- Must Apply Now
Message Posted March 8, 2000

* * * Important * * *

Last week I forwarded an e-mail from the SLD concerning some remaining Year

2 E-rate funds that were described at less than $250 million and would only

go to those applicants that filed immediately following the close of the

Year 2 window.

Well, I just returned from an E-rate meeting in D.C. where

they stated the message was worded inaccurately and that in fact, EVERYONE

WHO SUBMITTED AN APPLICATION OUTSIDE THE YEAR 2 WINDOW THROUGH MARCH 1 WILL

BE FUNDED ENTIRELY. And there is ANOTHER $250 million remaining. This

message outlines how and why most of you should apply for the remaining

funds. Please read it carefully.

If you have purchased or would still like to purchase before June 30, 2000

any E-rate eligible service, but previously didn't submit a 471 requesting

discounts on that service or component -- you should do so NOW. Even if you

submitted a 471 and it was denied for some reason, you should resubmit it.

All 471 applications for these funds must use Year 2 Form 471 Applications

at: http://www.sl.universalservice.org/Download/471.pdf (Year 3 applications

will NOT be accepted). All applications must be filed manually to the

address listed below by March 31, 2000.

All 471 applications must be based on a valid previously posted 470. If you

did not submit any 470s in Year 2, you may still apply for this remaining

money if you can purchase or have purchased anything from the PEPPM list

(www.peppm.org) because a 470 already was posted for this contract last

year. Because there is less than 28 days remaining to apply for these

funds, it is too late to submit a new 470 application now. At the end of

this message there are detailed instructions on what dates and numbers you

should put on your 471 if you have purchased or will be purchasing anything

from PEPPM before June 30, 2000.

All of the applications that are received between March 2 and March 31, 2000

will be reviewed after all Year 3 funding commitments are made (which means

you won't actually get a Year 2 out of window funding commitment letter

until August or September), and the funds will be disbursed based on the

following priorities:

* 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,

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 on a

first-come, first-served basis.

Because funding commitments will be issued after the funding year

has ended, the FCC will be issuing rules extending the amount of time that

applicants have to spend the new funds. The answers you place on your 471

should not anticipate this extension (therefore don't put an expiration date

of later than 6/30/2000).

If you have purchased or would like to purchase any E-rate eligible

item from the PEPPM contract, use the following information:

Item 7 Purpose of Request. Check 7a, as well as the "yes" box under 7a.

For all purchases based on other 470's, you will probably check 7b.

Item 15 or 16.

Column (2) IMPORTANT! You must enter the following Universal Service Control

Number in this column for any E-Rate eligible PEPPM Purchases for the

1999-2000 funding year: 865370000116660. If you are basing your 471 on a

different 470 but can't recall the USCN number, you can search for it posted

on the SLD web site at: http://www.sl.universalservice.org/forms/search.asp

Column (3) Leave this column blank.

Column (4) List the date that the purchase agreement or contract was signed

between YOU and the service provider. Please note that this date must be

between 01/09/1999 and the date you mail in your 471.

Column (5) List the date that your contract will expire, probably

06/30/2000.

Column (7) List the service start date for your contract. This date must be

between July 1, 1999 and June 30, 2000 because this is the year for which

you are applying for discounts.

Actual text of revised SLD message:

The Schools and Libraries Division (SLD) of the Universal Service

Administrative Company (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 after SLD makes commitments on applications

received by March 1, 2000, there will be about $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 an establishing

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 above. If remaining funds are insufficient to fully fund all approved

requests within any of the priority tiers, Funding Requests (or applications

in the last tier) will be considered in the order in which they were

received.

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, if not impossible, 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

<misc/addinsty2.asp> for further instructions.

Julie L. Tritt

Executive Policy Specialist

Pennsylvania Department of Education

333 Market Street, 10th Floor

Harrisburg, PA 17126

(717) 705-4486

(717) 787-7222 - fax

jtritt@state.pa.us

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