Cyber Pilot – Form 484 Tips and Additional FAQs

October 9, 2024

As schools and libraries have been completing the Form 484, Part 1 to apply to be selected for the FCC’s new Cybersecurity Pilot Program, several application and policy-related questions have arisen.  USAC and the FCC have just released answers to these questions and they are included below, along with a few ‘Julie notes’ in red.  A few important reminders:

  1. The deadline to apply is November 1. 
  2. Applications are submitted in EPC by clicking on the waffle icon in the top right corner of your landing page.  If it says you don’t have permission, it means your EPC AA has not granted you permission.  For instructions on how to set these permissions, see: https://e-ratepa.org/?p=35693
  3. A CPP Resource Page is available at:  https://e-ratepa.org/?page_id=35530 and contains links to the CPP Eligible Services List, FAQs, CPP Order, presentations, etc.
  4. The Form 484 Part 1 User Guide is available at:  https://www.usac.org/wp-content/uploads/e-rate/documents/cyber_pilot/tip_sheets/FCC-Form-484-Part-1_User-Guide.pdf.  This guide is excellent and I encourage you to have it with you as you complete the Form 484, along with the application tips below. 

Cybersecurity Resource Recommendations Guide – The FCC and US DOE, with input from the Cybersecurity and Infrastructure Security Agency, recently released a 2-page Cybersecurity Resource Recommendations Guide to help schools and libraries evaluate their cybersecurity risks and identify the most impactful cybersecurity solutions.  The intent of the guide is to assist schools and libraries as they complete their applications for the Pilot Program and serve more broadly as a resource for schools and libraries as they take steps to better protect their networks.

FCC Form 484 Part 1 Application Tips – USAC has provided four helpful tips related to specific Form 484 Part 1 questions.  They are as follows:

  1. Q: Can you clarify what information you are looking for in Question 3.2, which asks whether an applicant or consortium member currently receives, or expects to receive, cybersecurity funding from any other federal, state, local, Tribal or other cybersecurity program or source? Is this question aimed toward the proposed Pilot funding that is being requested? Or does it relate to funding of any cybersecurity product or service?

A: This question will help the FCC better understand what other kinds of cybersecurity funding may be available to schools and libraries to pay for Pilot Program equipment and services and whether an applicant receives (or expects to receive) funding from another source that is, or will be, used to support the same equipment or services that are being requested through the Pilot Program.  For example, if an applicant is receiving funds to support cybersecurity equipment and services pursuant to the Infrastructure Investments and Jobs Act, and the funding is being used to pay for the same equipment or services that are being requested through the Pilot Program, it should answer in the affirmative for Question 3.2.  As the FCC has reminded applicants, Pilot participants are not precluded from using other sources of funding to pay for cybersecurity equipment and services (including for paying the non-discount share), but they may not receive Pilot funding for the same cybersecurity equipment and services, or the same portion of cybersecurity equipment and services, funded through other sources. FAQ 2.2)

  1. Q: What is the difference between a recommendation and a best practice for purposes of answering Questions 2.1 and 3.4? Isn’t Question 2.1 a subset of Question 3.4? 

A: For purposes of the FCC Form 484 Part 1, recommendations are broader than best practices, in that they reflect any cybersecurity guidance provided by the Education Department or CISA, not just guidance pertaining to K-12 schools and libraries. In that sense, best practices could be considered a subset of recommendations. To the extent an applicant has begun implementing any of the best practices identified by the Education Department or CISA, it may answer yes to both 2.1 and 3.4.

  1. Q: Can you clarify the difference between Question 5.2 and 5.3 and how each may trigger the gift rule?

A: Question 5.2 asks whether a service provider will be required to include any no-cost cybersecurity equipment and/or services in its bid.  Question 5.3 asks whether the applicant plans to require service providers to utilize any free or low-cost tools provided by Department of Education, CISA or other agencies.  Because free and low-cost tools are provided by the Department of Education, CISA, or another federal, state, local, or Tribal government source of funding, they do not raise the same competitive bidding and gifts restriction issues as no-cost cybersecurity equipment and services provided by service providers.  The free and low-cost tools referenced in this question are the same as those identified in Question 4.3.

Julie note:  Never answer Yes to question 5.2.   If you already submitted your Form 484 and answered YES, contact USAC to find out how to change this answer – 888-203-8100.  It is not possible to resubmit an application.

  1. Q: How will the budget of a school district or consortia be calculated if only a subset of its members are included in the FCC Form 484 Part 1 applications? For schools, will it be based on the actual number of students associated with the participating schools?  

A: The budget will be based on the student count associated with the selected entities. The FCC has put together a CPP Budget Examples Guide to help applicants understand how budgets will be calculated.  

Additional CPP Frequently Asked Questions Released – The FCC has released additional CPP FAQs in response to various questions they’ve been receiving.  These FAQs are more policy-related, while the USAC Tips are more application-specific.  I have highlighted the questions that have been commonly asked by PA applicants.

  • * 2.10 Q: How will my total budget for the Pilot Program be determined?

A: A participant’s reimbursable spending on eligible services and equipment is subject to an overall three-year budget cap. The cap is based on a participant’s type (school, library or consortium) and size (student count and/or number of libraries and sites). See 47 CFR § 54.2001(b). To assist participants in determining their three-year budget cap for the Pilot Program, the Bureau has prepared a set of illustrative examples of budget calculations.

  • * 3.3 Q: Can an Educational Service Agency (or ESA) participate in the Pilot Program?

A: Educational Service Agencies (ESAs), also known as Educational Service Units (ESUs), Local Educational Agencies (LEAs), and Board of Cooperative Educational Services (BOCES), are eligible to serve as Consortium Leaders. In addition, if a state recognizes an ESA as an eligible school under its state law, the ESA may apply as an applicant and seek support for its eligible members as it is currently allowed to in the E-Rate program. As with consortia applicants, an individual school may not participate as part of an ESA application and as an individual applicant and must decide how it would like to participate in the Pilot Program.

  • *4.12 Q:  Can equipment purchased with Pilot funds be physically installed or located at a facility that is ineligible for funding (i.e., not an eligible school or library)?  For example, could a consortium purchase equipment that would be located at a facility owned or operated by its consortium leader, if the consortium leader is ineligible for Pilot funds? 

A:  Equipment purchased with Pilot funds can be installed or located at a facility that is owned or maintained by an entity that is ineligible for funding, so long as the equipment is for the exclusive use and benefit of the Pilot-eligible schools and libraries.  

  • * 5.17 Q: Does a Consortium Leader need to obtain authorization to act on behalf of a consortium member in conducting the competitive bidding process and/or requesting and applying for Pilot Program funding on behalf of each consortium member?

A: Yes, Consortium Leaders are required to collect and retain letters of agency (LOAs) from their consortium members affirming their authorization to act on the member’s behalf in the Pilot Program, similar to the requirement in the E-Rate Program. If the Consortium Leader is authorized by the terms of an existing LOA, a Consortium Leader may rely on the existing LOA to act on behalf of the consortium member for the Pilot Program, otherwise a new LOA is required for the Pilot Program. The Consortium Leader is also required to retain LOAs from their members as required by the program rules and provide upon request. If an individual Pilot applicant provides an LOA to a Consortium Leader authorizing them to apply in the Pilot Program on their behalf, they should not also submit an individual application.

  • * 5.18 Q: What is the process for withdrawing from the Pilot Program once I am accepted? At what point will I be penalized and what are the potential consequences?  

A: We expect that applicants selected to participate in the Pilot Program will be committed to participating for the entire three-year term. Applicants are urged to carefully evaluate whether they are able to satisfy Pilot obligations prior to submitting their FCC Form 484 Part 1 applications. To the extent a Pilot participant determines that it must withdraw from the Pilot, it should contact the Wireline Competition Bureau (by emailing mailto:cyberpilot@fcc.gov) for additional information about the withdrawal process.

Penalties for failure to comply with Pilot Program rules may result in a referral of a participant to the Enforcement Bureau, a hold on future disbursements, a rescission of committed funds, and/or recovery of disbursed funds. The scope of any potential consequence for non-compliance with the Pilot Program rules will depend on the specific circumstances, including whether any funds have been disbursed. The Commission does not anticipate routinely referring Pilot participants to the Enforcement Bureau for rule violations.

                Julie note:  The FCC expects that if you apply for the program on the Form 484 Part 1, you are agreeing to participate for 3 years and complete the reporting requirements for 3 years, even if you spend all of your CPP funds in Year 1.  In other words, don’t apply unless you’re committed.   

  • * 5.19 Q: Will I be able to apply for the Pilot Program if I am on Red Light status? 

A: Prospective applicants on Red Light status (or prospective applicants that share a Taxpayer Identification Number (TIN) with an entity on Red Light) must resolve outstanding debts on or before the FCC Form 484 Part 1 application deadline, November 1, 2024, to be eligible to be selected participate in the Pilot Program.  To confirm that your entity is eligible to be selected to participate in the Pilot Program, visit the https://apps.fcc.gov/cores/userLogin.do, to check your financial status with the FCC.  If your entity is on Red Light, you must pay the amount(s) owed and resolve the Red Light status on or before November 1 to be eligible to be selected as a Pilot Program participant.

  • *6.9 Q: How should I request services or license agreements that would begin mid-way through the three-year term of the Pilot, once my existing contract expires? Can I submit more than one Pilot FCC Form 470 and Form 471? Or should I request those services or license agreements upfront, before my existing contract expires?

A: The Pilot Program contemplates that participants would file one Pilot FCC Form 470 and one Pilot FCC Form 471 to cover the entire three-year term of the Pilot. To the extent a Pilot participant seeks to receive support for a license or service that covers only part of the term of the Pilot Program, it should solicit bids for those services when it files the Pilot FCC Form 470 at the beginning of the Pilot and then request the services for the term of the Pilot Program to be covered by the new or extended contract using the Pilot FCC Form 471.

Participants are reminded that the Pilot Program does not allow existing, non-qualifying contracts to be converted into eligible contracts based on the E-Rate program’s Kalamazoo precedent. Existing contracts only qualify for the Pilot if they fall within the competitive bidding exemption. See FAQ 6.7. Participants are also reminded that they must carefully consider all bids received and select the most cost-effective service offering using price of the eligible services and equipment as the primary factor in their bid evaluation process.

Only services delivered within the three-year Pilot Program time period can be reimbursed through the Program. See FAQ 4.4.

  • *6.10 Q: How should I competitively bid services that I plan to request on a month-to-month basis? In the E-Rate program, I would rebid every year – is that the same process that will be used for the Pilot Program? 

A: The Pilot Program contemplates that participants would file one Pilot FCC Form 470 and one Pilot FCC Form 471 to cover the entire three-year term of the Pilot program. Pilot participants that plan to request services on a month-to-month basis should do so when they file their single Pilot FCC Form 470 at the beginning of the Pilot and request the month-to-month services using their single Pilot FCC Form 471 for the 36-month period of the Pilot Program. Participants are reminded that they must carefully consider all bids received and select the most-cost effective service offering using price of the eligible services and equipment as the primary factor in their bid evaluation process.

  • *7.5 Q: What is the Service Start Date for the Pilot Program?

A: The Service Start Date for the Pilot Program will coincide with the opening of the Pilot FCC Form 471 application filing window. That date will be announced in a forthcoming public notice.

  • *7.6 Q: Can a Pilot participant place an order for Pilot-funded equipment or services before it receives its funding commitment decision letter (FCDL)?

A: A Pilot participant may place an order for Pilot-funded equipment and services before it receives a Funding Commitment Decision Letter (FCDL) from USAC, but it assumes the risk to the extent the funding commitment amount on the FCDL may be less than the cost of what was purchased.  The service start date for the Pilot Program will coincide with the opening of the Cybersecurity Pilot Program FCC Form 471 application filing window. That date will be announced in a forthcoming Public Notice. See FAQ 7.5.

  • * 8.2 Q: When will the reporting metrics be published, so that applicants are informed of what information they will be required to report to the FCC and can ensure that potential vendors are able to provide the required data? 

A: Annual reporting requirements are expected to largely mirror the information that is required in the FCC Form 484 (Parts 1 and 2). Pilot participants may also be asked to answer a series of yes/no or multi-select questions to provide additional detail regarding their cybersecurity expertise and any cyber events that have taken place during the reporting term.  In establishing reporting requirements, the Commission is sensitive to balancing its need to collect Pilot Program data with the burden it puts on Pilot participants. All reporting requirements are subject to the Paperwork Reduction Act approval process.

If you have any questions that are not answered in the Form 484 User Guide or FAQs, please let me know.  You can also send questions to:  CyberPilot@fcc.gov and they will work to provide answers as well as include in a future FAQ.

— Julie

Julie Tritt Schell

jtschell@comcast.net

www.e-ratepa.org

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