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Obtaining Discounts on Existing Contracts that Were Signed Without a 470
March 14, 2012
~ Kalamazoo Decision May Help Certain Applicants ~
In 2002, the FCC released a little-known appeal decision for the Kalamazoo Michigan Public Schools, more commonly known as 'The Kalamazoo Order.' Even though it's almost 10 years old, I've recently referred several PA schools and libraries (and vendors) to it and I want to make sure that everyone is aware of the nature of the great decision in case you ever need it.
The Kalamazoo Order says that if an applicant signed a contract before posting a Form 470, they can still obtain E-rate discounts on that service, IF they post a new 470, evaluate all bids received, and 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.
For example, let's say you signed a 3-year contract for phone service in June 2011 and accidentally forgot to post a Form 470 prior to signing that contract. Generally, an existing contract is not E-rate eligible unless you have competitively bid it using a Form 470. However, if you also posted a Form 470 for that service in FY 2012 (even though the service is under contract), you can conduct a bidding process and evaluate all proposals submitted. If your current contract is the lowest responsible bidder after you have conducted your bid evaluation, you can then memorialize in a dated memo your decision to continue with your existing contract. Then on your FY2012, you would list the contract award date as the date that you memorialized your decision (the date on the memo), and the contract expiration date as the actual contract expiration date of your existing contract.
I don't advise you to rely on this Order unless you absolutely have to; but if you do, be sure you keep your bidding documents and memorialization memo for at least 5 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
Julie Tritt Schell
PA E-rate Coordinator
717-730-7133 - o
717-730-9060 - f
jtschell@comcast.net
www.e-ratepa.org
Penn*link
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