New SPIN Change Rules Adopted
Message Posted December 21, 2000
An SLD Christmas Present to Applicants....
Yr 2 SPIN Changes must be made by Jan. 31, 2001
The FCC has just issued their decision on "Copan", thus setting new principles for when the SLD may approve SPIN changes after a funding commitment has been made. The new guidelines, which allow for SPIN changes for almost any reason, are far broader than the previous SPIN change rules, which restricted such changes to bankruptcy, refusal to participate or breach of contract.
Specifically, SPIN changes will be approved as long as the applicant submits their request to the SLD (see instructions below) that certifies that:
(1) the SPIN change is allowed under its state and local procurement rules,
(2) the SPIN change is allowable under the terms of the contract between the applicant and its original service provider, and
(3) the applicant has notified its original service provider of its intent to change service providers.
Although these new rules are a huge bone to applicants, please don't abuse them. Basically, the SLD is watching this closely to see if it becomes an administrative nightmare, and if it does I suspect the FCC will tighten the rules again.
Some Q & A
1. What should I do if I submitted a SPIN change request on a previous occasion but never received an answer from the SLD?
Anticipating that new SPIN change rules would soon be effective, the SLD held many SPIN change requests to be reviewed after the Copan Order was released. These requests will now be considered and the applicant should not resubmit their requests.
2. What should I do if I submitted a SPIN change request, but it was denied by the SLD?
If it was submitted for funding years 2 or 3, you should resubmit the request (see deadlines in questin # 5). If you submitted a Year 1 SPIN change request and it was denied, you cannot submit another request, as Year 1 is almost completely over.
3. Can I submit a SPIN change request after I submit a 471 but before I receive my funding commitment letter?
No, SPIN change requests only can be made after a funding commitment is issued.
4. Can I submit a SPIN change request for all services or just contracted services?
SPIN changes may be requested for tariffed, month-to-month, and contract services.
5. What are the absolute deadlines to submit SPIN change requests for each funding year?
Funding Year 1 (Jan. 1, 1998 - June 30, 1999): Since Year 1 is closed out for virtually all participants, SLD will not consider any requests to change the SPIN on a Year 1 FRN. (The only exception is for those participants with funding commitments for which the deadline for receipt of non-recurring services was extended under FCC order -- and you know who you are.)
Funding Year 2 (July 1, 1999 - June 30, 2000): Since this guidance provides more flexibility than was previously available for SPIN changes and since Year 2 is not yet closed out, SLD will consider SPIN change requests for Year 2 funding commitments PROVIDED those requests are received by January 31, 2001. If you are awaiting a decision on a Year 2 out of the window request or Year 2 appeal, the FCC has granted you an extension until Sept. 30, 2001 to spend those funds. In those cases, the SLD will consider SPIN change requests received up to 90 days before the extended deadline for receipt of non-recurring services (likely June 30, 2001). After that point, SLD believes there would not be time for it to consider the request and notify the applicant of its disposition and then for the service provider to complete the work.
Funding Year 3 (July 1, 2000 - June 30, 2001) and Later: For Year 3 and later years, SLD will consider requests to change the SPIN if those requests are received by the due date for the last invoice from the applicant or service provider for that FRN. That deadline for Year 3 is November 20, 2001 (and Year 4 will likely be around Nov. 20, 2002).
6. Can I change SPINs for multi-year contracts?
If you have a multi-year contract with the original service provider, then you may continue your multi-year contract with the new service provider. However, the new agreement must not have an expiration date later than the expiration date of the original contract.
7. Can I change services when I change service providers?
In general, it's very difficult to do. There are specific steps that are required to change a service from what has been requested and they are described at: www.sl.universalservice.org/reference/ServiceChangesYR4.asp .
8. When should I file SPIN change requests?
Applicants should submit their SPIN change request as soon as the decision is made and should include the proposed effective date of the change. By including this date, the SLD will be able to ensure that no payments are inadvertently made to the old provider. Unless the applicant indicates an effective date in the future or upon approval by SLD, SLD will make no additional payments on the FRN until the SPIN change is reviewed and either (1) approved and the SPIN is changed or (2) denied and SLD verifies that additional invoices are for services actually rendered to the applicant by the original provider.
9. What should I do if my provider has gone out of business or refuses to provide service and therefore I cannot certify that the SPIN change is allowed under the terms of the contract and/or I cannot make contact with the old service provider?
These are extenuating circumstances that should be noted in your SPIN change request to explain to the SLD why you cannot make those certain certifications.
10. How to apply for a SPIN change
Write your SPIN change request in the form of a letter (there is no form). Mark very clearly at the top of the letter, "SPIN Change Request." In the body of the letter, you must include:
your Form 471 Application Number,
your Billed Entity Number,
the Funding Request Number (FRN) for which you are requesting the change,
the original Service Provider name and SPIN,
the Service Provider Name and SPIN to which you wish to change,
the proposed effective date of the SPIN change (if the service provider has already been changed, this date would be in the past),
a certification by the applicant that its SPIN change request satisfies the requirements: that (1) the SPIN change is allowed under its state and local procurement rules, (2) the SPIN change is allowable under the terms of the contract between the applicant and its original service provider, and (3) the applicant has notified its original service provider of its intent to change service providers,
complete contact information so our SPIN team can reach you easily,
an original signature to affirm the certifications, and
printed name and title of certifying person.
Send this letter to: SPIN Change Request, Schools and Libraries Division, Box 125 - Correspondence Unit, 80 S. Jefferson Road, Whippany, NJ 07981.
After your SPIN change has been made, the SLD will send a written notification to you and the affected service providers.
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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