December 12, 2019<\/p>\n
Attached:\u00a0PA Category 2 Presentation – FY 2020 – Public Schools<\/a><\/p>\n The Category 2 competitive bidding rules\/requirements for PA applicants are somewhat complex because there are state-specific laws (for public schools) in addition to E-rate rules that must be followed.\u00a0 The following message outlines the options and requirements for\u00a0PA\u00a0public\u00a0schools<\/strong>\u00a0(as I understand them) and hopefully provides you with a step-by-step path to ensure your E-rate success.\u00a0 A copy of the presentation used in the recent Category 2 for Public Schools webinar is attached.<\/p>\n General Bidding Reminders for\u00a0All\u00a0Applicants (public and non-public):<\/strong><\/p>\n 1)\u00a0 E-rate rules require applicants that include a specific model number or manufacturer’s name to\u00a0also\u00a0include the words “or equivalent” on their Form 470 and RFP and then evaluate equivalent products that are bid.\u00a0 Applicants may state that such equipment must be compatible and interoperable with the school\/library\u2019s existing equipment (in which case the existing equipment should be identified).<\/p>\n 2)\u00a0 E-rate rules require that any bid disqualification reasons be stated in the State and Local Procurement Requirements of the Form 470 or in the RFP. \u00a0Disqualification reasons must be yes\/no (either proposals complied or they did not).<\/p>\n 3)\u00a0 NEW:<\/strong>\u00a0USAC requires applicants to consider all bids received up until the date you conduct your bid evaluation if your Form 470 or RFP don\u2019t list a specific due date.\u00a0 This is different from previously understood guidance which was that vendors should consider the 28th<\/sup>\u00a0day after the 470 is posted as the default \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 deadline to submit bids.\u00a0 Therefore, it is extremely important that you state a deadline for vendors to submit proposals (which, of course, must be on or after the 28-day waiting period).\u00a0 I suggest the following language:<\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong>\u201cDeadline for vendor proposals is 9:00 am Eastern, 29 days from the date this Form 470 is posted.\u00a0 We reserve the right to reject late-submitted proposals. \u00a0Proposals must be e-mailed to the Form 470 contact unless otherwise noted.\u201d<\/p>\n <\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4)\u00a0 NEW:\u00a0\u00a0<\/strong>The FCC recently adopted an Order prohibiting the use of Universal\u00a0Service funding, including E-rate funds, to purchase equipment and services from companies deemed a national security risk.\u00a0 Initially, the two companies on the \u201cbanned\u201d list are Huawei Technologies Company and ZTE Corp., but \u00a0\u00a0 others may be added in the future.\u00a0 Although we assume that E-rate bidding rules will allow applicants to summarily disqualify any bid that contains this equipment, I recommend that from now on, both Category 1 and Category 2 Form 470\u2019s and\/or RFPs contain the following language:<\/p>\n \u201cIn accordance with FCC Rules, proposals that include equipment from Huawei or ZTE, or have components from these companies embedded in proposed products, will be disqualified.\u201d<\/p>\n <\/p>\n 5)\u00a0 E-rate rules prohibit applicants from contacting potential vendors prior to bidding to seek an equipment list.\u00a0 Service providers are allowed to answer\u00a0general<\/em>\u00a0questions about the products and services they sell in response to applicant inquiries, but they may not prepare any part of a RFP or spec sheet\/bill of materials that will be used by the applicant for conducting a competitive bid procurement.<\/p>\n <\/p>\n 6)\u00a0 Applicants must have a signed contract for all Category 2 funding requests before the Form 471 is filed.\u00a0 This can be as simple as a signed vendor quote as long as it contains this information:<\/p>\n — Contract signing date (must be on or before the Form 471 submission date).<\/p>\n — Term of contract (4\/1\/2020 – 9\/30\/2021 for equipment purchases).<\/p>\n — List of equipment\/quantities\/prices (or services) and installation costs.<\/p>\n — Whether you want the equipment\/services to be contingent upon E-rate funding approval.<\/p>\n <\/p>\n Public School Bidding Options:<\/strong>\u00a0\u00a0Public school entities have several bidding options as outlined below.\u00a0 Please pay careful attention to all of the requirements of each option (in addition to the list of requirements noted above).<\/p>\n <\/p>\n Option<\/strong>\u00a01)<\/strong>\u00a0\u00a0File a Form 470\u00a0and\u00a0issue an RFP:<\/strong>\u00a0 The RFP must be uploaded into the Form 470 as the form is being created,\u00a0and<\/em>\u00a0the procurement must be advertised in at least 2 local newspapers of general circulation once a week for 3 consecutive weeks (done concurrently with the Form 470 bidding period).\u00a0\u00a0After\u00a0a\u00a0minimum<\/em>\u00a0of 28 calendar days, schools\u00a0must select the lowest price bid\u00a0among all qualified proposals (those that met the minimum bid requirements outlined in the RFP).\u00a0 Under state law, schools are\u00a0not<\/strong>\u00a0permitted to consider other bid evaluation criteria besides price.\u00a0Schools will then contact the winning vendor to obtain a contract document (or final quote with exact quantities) for the District to sign.\u00a0 (C2 Equipment\/services costing between $11,100 – $20,600:\u00a0 If no RFP is issued, schools must request written or telephonic price quotations from at least three bidders, in addition the Form 470 bidding process.)<\/p>\n <\/p>\n Best Practice<\/em>\u00a0Timeline<\/em><\/strong>:\u00a0 Post 470\/File RFP by December 20, conduct your bid evaluation at the end of January, have your board approve the contract at their February board meeting(s), and file the Form 471 in early March.<\/em>\u00a0\u00a0<\/em><\/p>\n \u00a0<\/em><\/p>\n \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/strong>OR<\/strong><\/p>\n <\/p>\n Option 2)<\/strong>\u00a0\u00a0Use the PEPPM contract and conduct a ‘PEPPM Mini-Bid’:<\/strong>\u00a0 Public schools using the PA State PEPPM contract should NOT post a Form 470, but are instead required to conduct a ‘mini-bid’ of all product lines in a specific “Category” and then consider all bids submitted by vendors.\u00a0 Categories are wireless equipment, switches, routers, firewalls, UPSs, cabling\/connectors, racks, and caching servers.\u00a0\u00a0A complete guide to conducting a PEPPM Mini-Bid is coming in a separate listserve message and will explain how to conduct the PEPPM mini-bids. \u00a0There is no 28-day mini-bid requirement, but you should give vendors\u00a0at least\u00a014 calendar days to submit proposals (longer if over a holiday).\u00a0 Using the prices contained in the proposals submitted, schools will then create a bid evaluation to select the successful vendor.\u00a0 Price of eligible equipment\/services\u00a0must<\/strong>\u00a0be the most heavily weighted factor, but you\u00a0may<\/strong>\u00a0consider other factors such as previous experience with the District, compatibility with existing equipment, references, cost to train or certify staff on new equipment, etc. \u00a0Schools will then contact the winning vendor to obtain a contract document (or final quote with exact quantities) for the District to sign.<\/p>\n <\/p>\n I do not recommend using the PEPPM Mini-Bid process for structured cabling projects.<\/p>\n <\/p>\n Best Practice<\/em>\u00a0Timeline<\/em><\/strong>:\u00a0 Post 470\/File RFP by December 20, conduct your bid evaluation by mid January, have your board approve the contract at their February board meeting(s), and file the Form 471 in early March.<\/em>\u00a0\u00a0<\/em><\/p>\n \u00a0<\/em><\/p>\n NOTE:\u00a0 Prevailing Wage Act:<\/em>\u00a0\u00a0PA public school entities are required to comply with the Prevailing Wage Act for public works contracts which include\u00a0\u2018construction, reconstruction, demolition, alteration and\/or repair work other than maintenance work, done under contract and paid for in whole or in part out of the funds of a public body where the estimated cost of the total project is in excess of $25,000.\u2019\u00a0 Maintenance work is defined as the repair of existing facilities when the size, type or extent of such facilities is not thereby changed or increased.\u00a0 In speaking with several knowledgeable school officials, they believe that structured cabling projects costing more than $25,000 would be required to comply with the Prevailing Wage Act.\u00a0 You will want to check with your school district solicitor to determine if he or she believes the Prevailing Wage Act applies and if so, be sure to obtain a Prevailing Wage Determination from the PA Department of Labor and Industry (http:\/\/www.dli.pa.gov\/Individuals\/Labor-Management-Relations\/llc\/prevailing-wage\/Pages\/Prevailing-Wage-App.aspx<\/a>) and include this requirement and PW Determination in your structured cabling RFP\/procurement.\u00a0 (The federal Davis-Bacon Act does not apply to E-rate funds.)<\/p>\n <\/p>\n <\/p>\n If you have any questions related to the information contained in this message, please don’t hesitate to contact me at\u00a0jtschell@comcast.net<\/a>.<\/p>\n — Julie<\/p>\n Julie Tritt Schell <\/p>\n\n
\nPennsylvania E-rate Coordinator
\n717-730-7133 – o
\njtschell@comcast.net<\/a>
\nwww.e-ratepa.org<\/a><\/p>\n