October 31, 2018<\/p>\n
~ Need C2 Training?\u00a0 Register at:\u00a0 https:\/\/e-ratepa.org\/?page_id=745<\/a> ~<\/p>\n On the October 19 \u2018E-rate for PA Veterans\u2019 webinar, we discussed the updates and changes to the E-rate program for Funding Year 2019.\u00a0 This message is a synopsis of those changes. \u00a0If you haven\u2019t started to think about Funding Year 2019 \u2013 now is the time!<\/p>\n Form 471 Filing Window Dates<\/strong><\/p>\n — USAC has not yet announced the official dates, but has strongly hinted that the Form 471 filing window will open on January 10, 2019 and close on March 20, 2019.\u00a0 This is an even shorter window than last year so it\u2019ss important to begin your FY 2019 planning\/bidding process as soon as possible so you don\u2019t run out of time.\u00a0 For a suggested FY 2019 bidding\/filing timeline, see the chart at the bottom of this message.<\/p>\n FY 2019 \u201cAdministrative Window\u201d<\/strong><\/p>\n — The \u201cAdministrative Window\u201d is the window before<\/em> the 471 window, during which time schools must update their enrollment and NSLP\/CEP% data in each school\u2019s EPC profile.\u00a0 The Admin Window is currently open and is expected to close on January 7, 2019.\u00a0 GREAT NEWS!\u00a0 Like last year, PDE\u2019s Bureau of Food and Nutrition has agreed to provide us with the \u201cunofficial\u201d enrollment and NSLP\/CEP% data that each school has entered into the PEARS system during the month of October.\u00a0 I expect to be able to send to you this unofficial PDE data set by mid-December and you\u2019ll then have a few weeks to update your schools\u2019 EPC profiles while the Admin Window is still open.\u00a0 If you want to update their profiles now, you certainly may, but it will be much easier if you wait until I send you the data in December (which will then likely match what PIA uses to review your Form 471 discount data information).<\/p>\n Form 470 Changes for FY 2019<\/strong><\/p>\n — If you want Internet delivered over Fiber Transport, you must select \u201cLeased Lit Fiber with or without Internet<\/strong>\u201d and then explain in the narrative that you\u2019re seeking Internet and at what bandwidth.<\/p>\n — If you are seeking Internet via a different mode of transport (cable modem, DSL, etc.), then you must select \u201cInternet Access and Transport Bundled \u2013 Non-Fiber<\/strong>\u201d<\/p>\n Large Special Construction (installation) Amortization Rule<\/strong><\/p>\n — Since FY 2015, applicants with large special construction (C1 network installation costs) that exceeded $500,000 were able to request the full E-rate portion in the first year of the contract. \u00a0Beginning in FY 2019, this rule is slated to sunset and applicants will be required to request the E-rate portion over 3-years.\u00a0 We have discussed our concerns with this provision with the FCC but there is no guarantee they will act.\u00a0 Please note:\u00a0 The rule which allows applicants to pay the non-discounted<\/em> share of the costs over 4 years is not going away. \u00a0\u00a0Example:\u00a0 $1,000,000 special construction cost and a 60% E-rate discount.\u00a0 Applicant can pay $400,000 over 4 years (if they indicated they wanted this option on the 470), but will have to apply for the $600,000 in E-rate funding over 3 years ($200,00\/year for 3 years).<\/p>\n Important \u2013 Timing of FY 2019 PEPPM Mini-Bids<\/strong><\/p>\n If you intend to use the PEPPM Mini-bid system as the procurement vehicle for your FY 2019 Category 2 equipment purchases, NOTE THAT YOU CANNOT RELEASE A PEPPM MINI-BID TO VENDORS UNTIL I SEND YOU THE NEW PRODUCT LINE\/AWARDED VENDOR LIST WHICH WON\u2019T BE UNTIL AT LEAST JANUARY 2, 2019<\/strong>.\u00a0 Why?\u00a0 The current PEPPM contract expires at the end of 2018 and the next contract will not become available for use until January 2, 2019.\u00a0 Thus, no mini-bids can be issued to the new awarded vendors until at least that date.\u00a0 The Form 471 filing deadline is expected to be March 20, which means that, assuming your PEPPM procurement is conducted in early January, your C2 contracts will have to go to your school boards in late January or February. \u00a0Yes, it\u2019s going to be a very compacted bidding\/contract approval\/contract signing window this year.<\/p>\n Big *Big* Year for Category 2<\/strong><\/p>\n FY 2019 is the final year to apply for Category 2 funding for applicants who first received Category 2 funding in FY 2015.\u00a0 Under the current program, applicants should have a 5-year cycle to apply for their Category 2 funding, with Year 1 being the first year the applicant is committed C2 funding, beginning with FY 2015.\u00a0 If an applicant has not yet utilized any<\/em> of their C2 budget, FY 2019 is the last year they can \u201copt-in\u201d to the C2 funding initiative and still be apply for the funding over a 5-year cycle.\u00a0 However\u2026 the FCC has not said \u2013 definitively \u2013 whether the Category 2 initiative will extend beyond FY 2019 (that announcement is expected to be known by January 2019).\u00a0 Therefore, my advice for PA applicants is to utilize as much of their Category 2 budgets as possible in Funding Year 2019, while we know with 100% certainty that the Category 2 budgets are in effect and will be funded at the current levels.<\/strong>\u00a0 <\/strong>Need C2 training?\u00a0 Register for the C2 webinars at: https:\/\/e-ratepa.org\/?page_id=745<\/a>.<\/p>\n Category 2 Year Budget Calculations<\/strong><\/p>\n To calculate your remaining Category 2 budget for each school, use this formula:\u00a0 [($153.47 x # students enrolled for each school building) — the pre-discount amounts that were approved for each school since FY 2015]<\/strong>.\u00a0 The result will be the remaining Category 2 budget for each school.\u00a0 \u00a0How do you determine the C2 budgets that have already been used for each school?\u00a0 Use this USAC tool:\u00a0 https:\/\/sltools.universalservice.org\/portal-external\/budgetLookup\/<\/a>.<\/p>\n Special Construction Charges for All Types of Fiber Funding Requests<\/strong><\/p>\n If you will be applying for any build-out (special construction) of fiber (be it lit, dark or self-provisioned), I strongly encourage you to review USAC\u2019s Fiber Training slides, at: http:\/\/usac.org\/_res\/documents\/sl\/training\/2017\/Fiber-Options.pdf<\/a> as they contain a very good explanation of the very strict rules related to competitive bidding, bid evaluation, what amounts USAC will pay for when additional (excess) fibers are put in the trench along with the fibers needed by the school or library. \u00a0Please note that if you apply for special construction charges, you should expect to receive a voluminous amount of PIA review (contact me if you want a copy of what applicants and their service providers were required to answer in FY 2018).<\/p>\n Funding Year 2019 Suggested Timeline:<\/strong><\/p>\n Julie Tritt Schell<\/p>\n PA E-rate Coordinator\n
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\n Step:<\/strong><\/td>\n Timeline:<\/strong><\/td>\n<\/tr>\n \n Post Form 470<\/strong> in EPC to competitively bid all new\/expiring contracts (unless using the PEPPM mini-bid option for C2)<\/td>\n Now \u2013 end of November<\/td>\n<\/tr>\n \n Update enrollment\/NSLP data<\/strong> in school EPC profiles<\/td>\n Now \u2013 January 7.\u00a0 But consider waiting for the unofficial PDE data to be available in mid-December<\/td>\n<\/tr>\n \n Conduct bid evaluation<\/strong><\/td>\n Early January<\/td>\n<\/tr>\n \n Issue PEPPM C2 Mini-Bids<\/strong> to vendors (if using this option)<\/td>\n Early January (bid evaluation at end of January)<\/td>\n<\/tr>\n \n Obtain school board approval<\/strong><\/td>\n February board meetings (no later)<\/td>\n<\/tr>\n \n Sign vendor contracts<\/strong><\/td>\n By End of February<\/td>\n<\/tr>\n \n Create Contract Records<\/strong> in EPC\/upload signed contracts<\/td>\n Late February\/Early March<\/td>\n<\/tr>\n \n Submit Form 471<\/strong><\/td>\n Early March<\/td>\n<\/tr>\n \n Earliest applicants can purchase C2 equipment<\/em><\/td>\n April 1, 2019<\/td>\n<\/tr>\n \n Funding Commitment Letters (FCDLs) issued<\/em><\/td>\n End of April \u2013 Sept 1 (goal)<\/td>\n<\/tr>\n \n File Form 486<\/em><\/td>\n Upon receipt of FCDLs \u2013 Oct 28, 2019<\/td>\n<\/tr>\n \n Earliest that FY 2019 BEARs or SPIs can be submitted to USAC<\/em><\/td>\n July 1, 2019<\/td>\n<\/tr>\n \n \u00a0<\/em><\/td>\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n717-730-7133 – o
\n717-730-9060 – f
\njtschell@comcast.net<\/a>
\nwww.e-ratepa.org<\/a><\/p>\n\n