Important Notice Regarding Certain E-rate Consultants
Message Posted September 21, 2000
E-rate can be worth significant amounts of money if schools and libraries take the time to apply, and apply for everything they are eligible for, at the maximum rate they are eligible for. We realize that the application process, albeit significantly improved over Years 1 and 2, still remains somewhat cumbersome and requires a great deal of attention and time in order to receive the funds or discounts.
Because of the amount of time it takes to apply for E-rate, we understand the desire for some schools and libraries to hire an 'E-rate Consultant' to prepare and shepherd their applications through the funding process. It is really no different than hiring a tax accountant to file your income tax returns, and is a practice we are not reluctant to recommend.
I am writing to offer the strongest words of caution to schools and libraries hiring E-rate consultants. There are three types of these consultants:
1) There are reputable, solid, knowledgeable, experienced, reasonably priced consultants who have successful assisted applications with securing E-rate discounts.
2) There are other consultants that have lost E-rate discounts for schools by not filing applications on time or inaccurately preparing applications, and are charging an exorbitant amount of money for their services.
3) There are a group of consultants that are very savvy about the E-rate program, pray on 80-90% discount schools, promise the schools that they won't have to pay undiscounted portion, and sign contracts with only vendors that they are associated with (incidentally, the vendors that these consultants select charge the E-rate fund a 500% mark up on services -- it's the buddy system which allows them to tell 80-90% schools that they don't have to pay their share). There will be many more of these types of consultants popping up everyday.
The only E-rate consultant you should consider hiring is the first type. At the most, they will charge you a few thousand dollars to handle all of your E-rate applications and they will come with excellent references. You should conduct a thorough reference check (I suggest requesting 20 references and calling 10 of them) on any potential consultant and make sure you have a contract in place with the appropriate provisions to protect you should the consultant fail to secure your discounts. If you do sign a contract with an E-rate consultant, be sure to include these items in your agreement:
1) The applicant should receive copies of every form submitted to SLD with date of receipt confirmation attached.
2) The consultant should provide status reports at least every quarter, if not every month, regarding the status of your applications.
3) The consultant will coordinate with the SLD during the application review process and with vendors on contract and billing issues.
I'd be glad to talk with you about this if you have any questions or concerns and be willing to assist you in researching a consultant's references. We're heading into the Year 4 application cycle and the good consultants and the bad consultants are in full gear. Be sure you get hooked up with a good one.
Julie Tritt Schell
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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