Information for FY 2009 (Yr 12) PEPPM E-rate Purchases
Message Posted January 16, 2009
Important: Because the current PEPPM contract expires December 31, 2009, and the new PEPPM contract will begin January 2, 2010, there are different Form 471 procedures for PEPPM this year. Please read this message carefully.
General PEPPM Overview
As you know, the only way an E-rate applicant can submit a Form 471 without submitting a 470 is when someone else submits the 470 on your behalf. Such is the situation with the state's PEPPM contract for internal connections and maintenance (www.peppm.org/pa/default.htm). As in previous years, the PA Department of Education has filed a Form 470 simultaneously with the official procurement process to competitively bid the PEPPM contracts. Schools (both public and nonpublic) and libraries that would like to purchase and take receipt of an E-rate eligible item from PEPPM on or after July 1, 2009 may now simply file one form, the Form 471. The Form 471 filing window is currently open and thus Form 471 applications may be submitted immediately. The final day that applications can be postmarked or submitted and certified online for Year 12 is February 12, 2009. The pertinent E-rate information needed for the Form 471, Block 5 is listed below.
The SLD requires binding contracts for all services or equipment, with the only exceptions being for one-year tariffed or MTM services, or where state master contracts (such as PEPPM) are being used. In the cases where PEPPM is being used, the SLD does not require a separate contract or purchase order to be issued before the 471 is filed because the PEPPM contract IS the contract. Therefore all of the information below is based on the PEPPM contract, not on your local contracts/purchase orders. Purchase orders, however, must be issued in order to actually order the products (on or after July 1, 2009).
New PEPPM Procedures for FY 2009 Form 471 Filings
The State's PEPPM contract expires December 31, 2009 and the new PEPPM contract will begin January 1, 2010. Because any purchases made for E-rate must be based on currently signed contracts, yet no contract yet exists for the period of January 1, 2010 - June 30, 2010, the SLD has instituted a procedure called State Replacement Contracts that must be used on your Year 12 Form 471s if you will be purchasing any services or equipment from PEPPM in the second half of the funding year (from January 1, 2010 - June 30, 2010).
FOR RECURRING SERVICES (SUCH AS BASIC MAINTENANCE) FROM PEPPM:
You must file 2 FRNs on the same 471.
-- FRN # 1 should list the PEPPM information as you normally would, which will provide 6 months worth of funding. To obtain the correct Form 470 number, allowable contract date, and contract award date for the product line you are purchasing from, use the data available on the attached. This information will soon be posted to the PEPPM website as well.
-- FRN # 2 should use the same information as FRN #1, with these exceptions:
SPIN: 143999999 (State Replacement SPIN)
Service Start Date: 01/01/2010
Contract Expiration Date: 06/30/2010
Contract Number: SRC 2007 State PEPPM Contract
FOR NON-RECURRING SERVICES (SUCH AS EQUIPMENT PURCHASES) FROM PEPPM:
You have 3 choices.
Choice 1) If you will be purchasing this equipment and it is NOT contingent upon E-rate (thus assuming you'll be purchasing it between July 1, 2009 and December 31, 2010), you should file 1 FRN using the instructions provided in FRN # 1 above. Note: If you do this, the equipment MUST be purchased before December 31, 2009.
Choice 2) If this purchase IS contingent upon E-rate funding and you will NOT be purchasing it until after January 1, 2010, then you should only file 1 FRN using the instructions provided in FRN # 1 above, with these exceptions:
SPIN: 143999999 (State Replacement SPIN)
Service Start Date: 01/01/2010
Contract Expiration Date: 06/30/2010
Contract Number: SRC 2007 State PEPPM Contract
Choice 3) If you truly don't know which half of the funding year you will purchase your PEPPM equipment, you should file 2 FRNs using the identical procedures as described for the Recurring Services (above). The only exception is that you would request full funding for the equipment under both FRNs (you will eventually cancel one of the FRNs when you know which half of the funding year you will be purchasing the equipment).
Important Notes:
* If you include a State Replacement Contract FRN, it must go on the same 471 as the matching PEPPM FRN. If you already hit submit, please do another 471, listing both of the affected FRNs on the same 471 and then when the RAL arrives for the previously-posted 471, cancel the original FRN.
* If you use the State Replacement Contract FRNs, either for recurring services or for non-recurring services, you will be required to take additional steps after the new PEPPM contract has been signed and after you have received your funding commitment decision letter. I will send out those procedures to the listserve as soon as the PEPPM contract has been signed (around November 2009).
I realize this sounds very confusing and we are working with PEPPM officials to try to get the mid-year contract expiration date issue resolved for future years. The SLD's official State Replacement Guidance can be found at: http://www.universalservice.org/sl/applicants/step04/state-replacement-contracts.aspx. If you have any questions, please let me know. The PEPPM staff also are available for assistance with filing of these FRNs by calling (570) 523-1155 ext. 2144.
Applicants should complete the Form 471 online (www.sl.universalservice.org/menu.asp) using the “Create Form 471” option. To view the individual pricing information for the new PEPPM vendors, go to http://www.peppm.org/pa/default.htm and click on the Product Line you seek on the left toolbar.
If you have any questions, please don't hesitate to contact me at jtschell@comcast.net.
-- Julie
* FAQs for PEPPM Form 471 Filings *
Are we required to sign contracts with vendors before we submit the 471?
No, you are not required to sign a contract prior to the submission of the 471 if you are purchasing from a State Master Contract because the SMC is the contract. But you may want to document your choice by sending an e-mail or letter to the service provider indicating that you have submitted an E-rate request for discounted services/equipment for FY 2009.
Should we issue a purchase order? If so, when?
Purchase orders must be issued in order to actually order the products but this should be done on or after July 1, 2009. If your purchase is contingent on E-rate funding, a purchase order should be faxed AFTER your funding commitment decision has been made by the SLD, or after July 1, 2009, whichever is later. If you would like to purchase equipment regardless of E-rate approval, you should submit your purchase order to PEPPM anytime after July 1, 2009. When your E-rate approval is received later, you can then simply seek reimbursement using a BEAR form.
The P.O. should clearly state that this is an E-rate item, and include the Funding Request Number (FRN) pertaining to that piece of equipment. In addition, if the P.O. is issued after a funding commitment decision is issued by the SLD, the P.O. should specifically state whether you would like to receive a discounted invoice (where you would just pay the non-discounted portion and the vendor would seek reimbursement from the SLD).
What information should we use if we posted our own 470, but now would like to purchase from PEPPM?
If you posted your own 470 for equipment and are purchasing that equipment from PEPPM, you must have a binding contract before submitting the 471 (this can be a PO signed by the District and the vendor, listing that it will not be effective until at least July 1, 2008) or it can be a memo signed by the District, listing the equipment, quantities, prices, and effective dates. Essentially, the SLD believes that if you post your own 470, you are taking the state contract price as one of the bids, which is different than relying on the PEPPM contract entirely.
Julie Tritt Schell
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