Schools and Libraries

Step 8: Selective Review Guidance

Selective Review instructions provided here include clarifications and examples that expand on the Selective Review Information Request instructions sent to applicants.

Part I: Information Regarding Competitive Bidding and Vendor Selection Process

The following sections outline the documentation you will need to supply concerning your competitive bidding and vendor selection processes. Please provide the information by Form 471, Block 5 Discount Funding Request Number (FRN) unless otherwise indicated. If a document (e.g., contract, RFP, bid response, etc.) applies to multiple FRNs, indicate on the first page of the document all of the FRNs that are supported by the document. If for any reason you do not have the documentation requested below, you MUST completely explain why it is missing.

The FCC's Fifth Report and Order (FCC 04-190, released August 13, 2004) sets out document retention requirements for Program participants. Failure to comply with these requirements will put your funding at risk.

Contracts and/or Other Agreements

  • Provide signed and dated copies of any and all agreements related to each FRN, including any and all contracts, agreements, Statements of Work, etc., and any and all agreements between the applicant and the service provider related in any way to the applicant's funding request(s) and/or provision of services. Please indicate the FRN(s) on all relevant contracts.
  • In order for a contract to be considered valid under the rules of the Program, it must be signed and dated by the applicant after the Allowable Vendor Selection/Contract Date (ACD). The ACD is set when the Form 470 that establishes the competitive bidding for the FRN is posted to the USAC website. If a contract is not properly dated, the Contract Award Date that appears on the FRN may be used instead. However, if the Contract Award Date on the FRN is before the ACD or is missing altogether, you will be given the opportunity to complete a certification statement regarding the correct Contract Award Date. In addition to the completed certification statement, you must provide supporting documentation that validates your new Contract Award Date.
  • If the price on the contract is different from the pre-discount price on your FRN, please explain the difference and account for the difference. (For example, if the dollar amount on the contract is higher than the dollar amount on your Form 471, indicate which services have been removed, if that is the case. If the dollar amount on the contract is lower than the dollar amount on your Form 471, please explain why).
  • If the contract referenced on a particular funding request is a state master contract, please indicate that. There is no need to provide us with a copy of the state master contract if it is available online and you provide us with the website address or if it has previously been provided to USAC and you provide us with information to help us locate it.
  • Submit a copy of the relevant contract(s) with your Selective Review response. Tariffed services (e.g., local and long distance telecommunication services) and month-to-month services (e.g., monthly Internet services) are sometimes offered through state master contracts or other types of contracts. If you sign a contract for these services (or if you are buying from a state master contract), USAC considers your services to be contracted services. Again, if a state master contract was previously provided to USAC or if it is available on a website, you may provide information about how to locate it instead of providing a copy.
  • If contracts are required and are not provided, please explain why you have not provided them.

See Step 4: Contract Guidance on this website for more information on contracts.

Requests for Proposals (RFP)

  • Provide copies of any and all RFP(s), invitation(s) to bid, request(s) for bids, or other documentation of bid requests for services and/or products requested, or other solicitations in any way associated with the applicant's funding request(s) and/or the selection of the service provider(s) that appear(s) on the applicant's funding request(s). Be sure to include any and all amendments made to the original RFP. You must also demonstrate that the RFP was available to bidders for 28 days before you signed a contract. RFP responses can be received prior to the 28th day of the Form 470 posting. All RFPs should indicate when they were first made available to service providers (i.e., release and posting date as well as the due date for which bids were required to be submitted).
  • You do not need to provide copies of any FCC Form 470 that was posted on the USAC website.
  • If RFPs or other bid solicitation documents were used as part of the procurement process and are not being provided, please explain why you have not provided them.

Bid Responses

  • Indicate the number of bids/proposals received for all funding requests and provide complete copies of any and all proposals, bid responses, etc., received in response to the Form 470 and/or any RFP, or other solicitation in any way associated with the applicant's funding request and/or with the selection of the service provider that appears on the applicant's funding requests. Please list the FRN(s) associated with relevant bid responses on your Selective Review response. Information should be provided for all funding requests including tariffed, month-to-month, and contracted services.
  • If you do not receive any bids, you should indicate on your Selective Review response "no bids received" and submit documents explaining how you selected your service provider(s).

Vendor Selection Process

  • Provide the number of bids received for each Telecommunications, Internet Access, Internal Connections Other than Basic Maintenance, and Basic Maintenance of Internal Connections FRN.
  • Provide all documentation created during the bidding process and indicate how and why you selected your service provider(s). This includes FRNs where you selected a state master contract that was a multiple award schedule or similar vehicle. (See "Special Note Regarding State Master Contracts" below.) If multiple bids were received, vendor evaluation sheets must be provided.
  • Applicants may use a multi-step bid evaluation process, but price on the eligible goods and services must be the primary factor during EACH stage of the evaluation process.
  • Documentation should include:
    • a description of the evaluation process
    • the factors used to determine the winning bid
    • the relevant weighting of the factors (points or percentage) in the evaluation process
    • correspondence to and from the bidding vendor(s) and
    • attendance sheets for any meetings regarding the Form 470 and/or RFP or other solicitation vehicles

Consulting Agreement(s) or Letter(s) of Agency

Please provide a complete signed and dated copy of any consulting agreement(s), including any Letter(s) of Agency (LOAs), relating to the planning, implementation, and support of your funding request(s). If a consultant was not used, please indicate that no consultant was used. Failure to provide a consulting agreement or LOA for the current funding year will indefinitely delay USAC's ability to issue a Funding Commitment Decision Letter.

Correspondence (Email, Phone Logs, etc.)

Provide a copy of all correspondence between the entity and any service provider(s) or consultant(s) regarding the competitive bidding process and the application process. Examples of requested correspondence include emails, faxes, phone logs, letters, and responses from potential bidders and selected service providers.

Organizational Structure

If your organization functions in multiple capacities, such as consultant, service provider, and/or applicant, provide a copy of your organizational flow charts or budget clearly identifying in which role you are responding to the SRIR, and how that is separated from other business functions and/or reporting structures in the organization.

Please provide any other documentation available that would be helpful to demonstrate your compliance with FCC rules requiring a fair and open competitive bidding process.

Special Note Regarding State Master Contracts (SMC)

The filer of the Form 470 - whether state or applicant - must comply with all FCC requirements and local and state procurement laws. Applicants must follow the applicable provisions of the state master contract and local and state procurement laws.

If you are procuring goods or services off a state master contract, and the state filed a Form 470 that led to the award of that state master contract that is not a multiple award schedule, and you referenced that state Form 470 in your funding request, you do not need to provide competitive bidding and vendor selection documentation at this time. If this is the case for some or all of your FRNs, please indicate such in your response.

If, however, you filed one or more Forms 470 and then used the state master contract as a bid response, you must provide full documentation about your competitive bidding process and vendor selection. Whether you use a state Form 470 or your own Form 470, if the state master contract that you are purchasing from is a multiple award schedule or similar vehicle you must show that the service provider that you selected is the most cost-effective provider. In other words, you will need to demonstrate how and why you selected service provider "A" instead of one of the other service providers that provide the same services through the multiple award schedules.

Part II: Information Regarding Your Item 25 Certification

To ensure that funds are allocated appropriately, and in accordance with FCC Orders, each applicant is required to certify in Item 25 of the Form(s) 471 the following: "The entity I represent or the entities listed on this application have secured access, separately or through this program, to all of the resources, including computers, training, software, internal connections, maintenance, and electrical capacity, necessary to use the services purchased effectively. I recognize that some of the aforementioned resources are not eligible for support. I certify that the entities I represent or the entities listed on this application have secured access to all the resources to pay the discounted charges for eligible services from funds to which access has been secured in the current funding year. I certify that the Billed Entity will pay the non-discount portion of the cost of the goods and services to the service provider(s)." The Item 25 Certification review also looks at the applicant's ability to pay for its share of funding. (See a Sample Item 25 Worksheet Summary.)

Special Note to Consortium Applicants:

You have an option to provide the information requested below for the overall consortium or on a disaggregated basis with information pertaining to each individual entity listed on the Form 471 Block 4 Worksheet C.

We understand that some consortium applicants do not collect the information requested in Item 25 Worksheet Sections I-VI on a consortium basis. If you provide us with the requested information on a disaggregated basis, please make one copy of the Item 25 Worksheet Summary for each Block 4 Worksheet C entity (usually a school district or library system). Be sure to complete the section at the end of that page that identifies the entity. In order to use this disaggregated method, you must appropriately apportion the dollars entered in Section I-B to each Block 4 Worksheet C entity.

Note that the FCC held in Central Minnesota Computing Center (DA 01-776) that consortium applicants must be able to provide information supporting the Item 25 certification for all members of their consortium, even if the resources are not under the direct control, or the responsibility, of the consortium leader.

Please contact the Selective Review team if you need further assistance in responding on a disaggregated basis.

ITEM 25 WORKSHEET SUMMARY INSTRUCTIONS

Section I: Connectivity

This part of the Selective Review concerns your ability to pay the non-discount portion of the funding requested on your Form(s) 471. Therefore, unless and until any FRNs are determined to be non-fundable (i.e., the funding cap prevents funding certain requests), you must demonstrate that you have budgeted for all requests listed on all current funding year Forms 471 filed for your Billed Entity.

If a current funding year Form 471 contains a request that duplicates a previous funding year's request due to uncertain funding for the prior year and USAC has not accounted for the duplication (i.e., reduced the total to remove the duplicate request) in the numbers in Sections I-A and I-B, please note that and provide an explanation.

If you submitted current funding year Forms 471 in addition to those listed on the cover page of the SRIR, please (1) make necessary adjustments to Sections I-A and I-B to accurately reflect all Forms 471 filed by your Billed Entity, (2) initial it, and (3) explain the adjustment when you return the worksheet.

Section I-A. Commitment Amount Requested

In Section I-A, on lines 1, 2, 3, and 4 the totals of commitment amounts requested (the amounts from Form 471, Block 5, Item 23k) are shown next to the four respective service categories. Please verify that these are correct sums of the funding request amounts on all Forms 471 that you filed for the current funding year.

Section I-B. Form 471 Applicant's Share

In Section I-B you are asked to document the funds you have available to pay for the non-discount charges on eligible services. These are funds for paying your share of Telecommunications Services, Internet Access, Internal Connections Other than Basic Maintenance, and Basic Maintenance of Internal Connections costs after the discount has been applied. The FCC intentionally requires applicants to pay for a portion of their services in order to encourage cost-effective practices. For further information on your obligation to pay this amount, please see Obligation to Pay Non-Discount Portion. Remember that the funds to pay for your share cannot come directly or indirectly from a service provider.

In Section I-B, on lines 5, 6, 7, and 8, the "applicant share" of the amounts that you requested on current funding year Forms 471 are shown by service category. Please verify that these are the correct sums of your share of the charges on all Forms 471 that you filed for the current funding year.

For Section I-B of the worksheet, please provide the relevant income and expense pages of your approved current funding year operating or facilities budget - i.e., the pages that document your ability to pay your share of the purchased products/services and the pages that document your revenue. This should include not only the budget line items that you reference, but also a summary of your overall operating budget (e.g., total revenues and total expenses). To facilitate USAC's review, please be sure to include ALL of the following in the budget that you send to us (if you do not have an approved budget see Alternatives to a Final, Approved Budget section below):

  • The name of the entity to which the budget applies (Is it for a school? For a district? For one library outlet? For a library system? For a municipality?)
  • The timeframe that the budget covers, including a starting date and ending date (e.g., July 1, 2008-June 30, 2009)
  • Both revenue and expense line items
  • On the expense side of your budget, place an arrow pointing to the budget line(s) to show where you have allocated the necessary dollars for your share and write the specific amount that will come from each fund/budget line. For example, if budget line A0002 contains $200,000 and only $100,000 will be used to pay your share of E-Rate, then please draw an arrow to it and write "E-Rate, $100,000".

Please explain any discrepancies between the Form 471 Applicant Share (Section I-B of the Item 25 Worksheet Summary) and the dollars you identified on the budget that you provide. Failure to do so could delay or jeopardize the processing of your funding.

Note: If you provide a final approved budget, USAC may verify that budget with independent sources.

Section I-C. Amounts NOT Covered by E-Rate

In Section I-C you are asked to indicate the total amount of money that you will pay during the current funding year for eligible products/services for which you are NOT requesting funding.

  • Separate the eligible products and services into their respective service categories (Telecommunications Service, Internet Access, Internal Connections Other than Basic Maintenance, and Basic Maintenance of Internal Connections) and total the results of each category.
  • Enter these amounts in the Item 25 Worksheet Summary, Section I-C in the respective service category (Numbers 9, 10, 11, and 12).

Sections II through VI: Hardware, Professional Development, Software, Retrofitting, and Maintenance

For Sections II through VI (Hardware, Software, Professional Development, Retrofitting, and Maintenance), please provide investment amounts in these five areas for the prior funding year and for the current funding year. You do not need to submit the documentation to substantiate your estimates when you return the Item 25 Worksheet Summary. However, you should retain relevant documents since you may be requested to clarify or substantiate your estimates during USAC's review or during an audit.

For Sections II through VI, securing access to necessary resources for non-eligible products and services does not mean that all resources to support the purchased services must be paid for using current year funds. Therefore, if you can demonstrate that the computers are in place, the training has occurred, or the electrical system has been upgraded as a result of investments in previous years, then those resources will be considered as being available to support the purchased services. You may attach a page to the worksheet or, if applicable, cross-reference your technology plan to document that these resources are available. You may also estimate the value of donations and in-kind contributions you have received and include these values on the lines marked "Contributions/In Kind" and in the subtotals for each section on the worksheet.

For Sections II through VI, the items numbered 13a, 14a, 15a, etc. apply to the funding year prior to the funding year identified in your Forms 471. The SRIR you receive will specify the funding years above these sections.

If you have submitted your funding request on behalf of a school system, a library system, or a consortium, your responses on the worksheet should represent the total of all of the resources available to all of the eligible entities covered by your request.

For example, in Section II - Hardware, you would include your estimate of all networked computers in your school district or library system buildings that will be covered by your funding request.

If, as an applicant, you have submitted multiple Forms 471, a single worksheet should be used to summarize the total requests for all of your Forms 471, and the total resources that are available to support those funding requests. The exception to using a single worksheet is if you are a consortium applicant and you decide to use the disaggregated method for demonstrating compliance with your Item 25 Certification, as noted above.

Section II: Hardware

Hardware not eligible for discounts includes computers, printers, fax machines, video equipment, scanners, , and other hardware items that are used to support and improve education or library services.

To use Internet Access effectively for improved education or library service, you should have computers that can take advantage of the resources available on the Internet. Legacy equipment (PCs below 486 or Macs below 040 processors) that cannot take full advantage of the Internet should not be included in the hardware available to support purchased services unless they can support text-based browsing.

  • In Section II-A, number 13a, enter the number of computers connected to the Internet as of FY 2007 (July 1, 2007 through June 30, 2008). In number 13b, enter the number of computers scheduled to be connected as of FY 2008 (July 1, 2008 through June 30, 2009).
  • In Section II-B, number 14a, enter the number of servers connected to your network as of FY 2007. In number 14b, enter the number of servers scheduled to be connected to your network as FY 2008.
  • In Section II-C, number 15a, enter the number of data and voice drops that are currently installed as of FY 2007. In number 15b, enter the number of data and voice drops that are scheduled to be installed as of FY 2008.
  • In Section II-D, please estimate your total expenditures for hardware during FY 2007 (16a) and FY 2008 (16b).
  • Estimate the value of in-kind hardware donations received during FY 2007 year (17a) and expected donations in FY 2008 (17b).

Section III: Professional Development

Professional development, which is not eligible for discounts, is necessary to ensure that you are prepared to make effective use of purchased services. Professional development should provide for ongoing and sustained training for not just the technical staff, but also the teachers or librarians. Your budget should provide for professional development that goes beyond the acquisition of generic computer skills to include mastery of technology applications specifically designed to improve teaching, learning, or library service. Training that is limited to the acquisition of basic computer skills is not sufficient. Training should be coordinated with the availability of appropriate technology in the school, classroom, or library.

The following professional development costs might have been incurred by your organization during seminars or conferences:

  • faculty hired to conduct in-service or on-site training; technology related courses attended by your staff and paid for by your organization;
  • books and other instructional materials;
  • full time professional development staff.

Peer tutoring and peer monitoring is another method for delivering training, and you may include this in your estimate of Professional Development Contribution/In-kind donations (line 21). However, for this section, please do not include any non-technology course costs.

  • Estimate the percent of your instructional or library service staff that has been trained to use technology during the past 3 years to improve education or library services and list the results in Section III-A Staff Training Hours (the combined total should equal 100%). Please provide the CURRENT cumulative percentages of teacher or librarian training.
  • Estimate the value of your professional development expenditures for FY 2007 (20a) and FY 2008 (20b).
  • Estimate any in-kind or pro-bono professional development received in FY 2007 (21a) and any anticipated during FY 2008 (21b).

Section IV: Software

Some software (such as productivity tools, curriculum software, library content, etc.) is not eligible for discounts, but is necessary to make effective use of the purchased services. (Software to operate a network server is eligible and would be included in Connectivity above).

  • Estimate the value of your software expenditures for FY 2007 (23a) and FY 2008 (23b).
  • Estimate the value of any donated software products received during FY 2007(24a) and any anticipated contributions during FY 2008 (24b).

Section V: Retrofitting

Retrofitting that may be necessary to make effective use of purchased services is not eligible for discounts, but it is necessary to make effective use of the purchased services. Retrofitting includes electrical wiring, asbestos removal, building modifications, renovations and repairs necessary to use the requested products and services. Retrofitting does NOT include the costs that you incurred to upgrade your computer wiring or network hardware.

  • Estimate your retrofitting investment during FY 2007 (26a) and your anticipated investment for FY 2008 (26b).
  • Estimate any in-kind or pro-bono work in the area of retrofitting received during FY 2007 (27a) or any anticipated during FY 2008 (27b).

Section VI: Maintenance

Systems maintenance and operations costs for ineligible hardware and software and salaries of staff are ineligible for discounts. Nevertheless, they are necessary to make effective use of the purchased services. (Maintenance costs for eligible equipment and services that do not include applicant staff salaries should be included in Section I - Connectivity above).

  • Estimate your expenditures for systems maintenance and operations in FY 2007 (29a) and your anticipated expenditures in FY 2008 (29b).
  • Estimate any pro-bono maintenance or the value of donated time for maintenance during FY 2007 (30a) and any anticipated during FY 2008 (30b).

Note: If you have made a significant investment in technology prior to FY 2007, please summarize the resources that are already in place in the Resource Plan (see section 3 below).

TECHNOLOGY IMPLEMENTATION LEVEL WORKSHEET

In column (A), list the number of schools or libraries that currently fall into the technology levels described on the worksheet.

In column (B), indicate where you anticipate your schools/libraries to be, as a result of the technology requests you made on your FY 2008 Form(s) 471.

Once you have completed the Technology Implementation Level Worksheet, use the results from this worksheet to complete Section VII of the Item 25 Worksheet Summary.

If you are responding on behalf of a consortium, a school district, or a library system that has schools or libraries (outlets/branches) at different levels, please list the number of sites that are at each level.

RESOURCE PLANNING AND IMPLEMENTATION DESCRIPTION

Submit a narrative describing your overall strategy for implementing your E-Rate requests this year, including any significant investment in technology prior to FY 2008. Tell us if you have applied for matching funds or grants from other sources that have not been approved. Include all information about resources that you have available to make effective use of E-Rate funding. Give us an overall picture of what you are trying to accomplish so that we can better understand how the requested services will work in conjunction with the resources you have identified throughout this document.

If you have indicated zero dollars in Sections IV - VI:  Software, Retrofitting, and Maintenance on the Item 25 worksheet, please explain or provide details as to why no investments are being made in those categories (e.g., explain what retrofitting work has already occurred, what software you have on hand, and if any maintenance contracts are still in place).

TECHNOLOGY PLAN

Provide a copy of the written technology plan that was created prior to the submission of the Form(s) 470 which covers FY 2008 and that supports and validates the services requested on your Form(s) 471 for FY 2008. Your technology plan helps USAC understand the resources that are available to support the funding requests that you have submitted on your Form(s) 471. Please indicate who created the technology plan and/or assisted you with the development (e.g., the school district, a consultant, an ESA, etc.) and who approved or will approve the plan.

Note: If revisions or updates were made to your existing technology plan, provide a copy of the revised technology plan and the original technology plan.

OPERATING BUDGET

Final, Approved Budget: Provide an approved operating or facilities budget, including total revenues and expenses, that covers FY 2008 and that documents your expenditures and ability to pay your share of the purchased products/services. (YOU MUST INDICATE THE EXPENSE LINE(S) FROM WHICH YOUR E-RATE SHARE WILL BE PAID.) If you provide a final approved budget, USAC may verify that budget with independent sources. Please indicate on the budget whether or not it is final and approved.

Alternatives to a Final, Approved Budget: If a final, approved budget is not available or is still in the approval process, USAC will accept certain alternative documentation as delineated below.

A letter signed and dated by a school or library official (e.g., superintendent, board president, chief business officer) must accompany the document(s). The letter should explain (1) what phase of the approval process you are in; (2) whether your share of funding is contingent on any outside action (e.g., voter approval, board approval, state legislation, etc.); and (3) whether in the absence of such outside approval, you anticipate being able to pay your share. Please make sure that the letter identifies the specific amount that you will have available to pay your share.

For example, if you have $100,000 allocated in your budget, make sure that is noted in the letter.

In addition to the letter, we require one of the following items:

A draft budget covering the current funding year that includes ALL of the following:

  • The name of the entity to which the draft budget applies (Is it for a school? For a district? For one library outlet? For a library system? For a municipality?)
  • The timeframe that the draft budget covers, including a starting date and ending date (e.g., July 1, 2008-June 30, 2009)
  • Both revenue and expense line items. Note that if a deficit exceeds 30% of the total budget you will be contacted and asked to describe measures that will be taken to remedy the deficit.
  • On the expense side of your draft budget, place an arrow pointing to the budget line(s) to show where you have allocated the necessary dollars for your non-discount share and write the specific amount that will come from each fund/budget line. For example, if budget line A0002 contains $200,000 and only $100,000 will be used to pay your share of E-Rate, then please draw an arrow to it and write "E-Rate, $100,000".
  • A dated resolution – signed, if possible – of a governing Board authorizing the filing of the Form(s) 471 for a given dollar amount, for given services and/or products, and within a given timeframe. For USAC to consider such a resolution sufficient evidence that your entity has provided for payment of your share, the resolution should specify the funding year, the fiscal year, or the school year for which the payment is authorized.

OR

A reasonable expectation of a donation.

If donations (or other dollars from any contributor) are a source of funding then both of the following items must be provided:

  1. Historical documentation indicating that funding has existed in prior years, and
  2. Letter from a school or library official indicating:
    • Source of funding
    • Amount of funding
    • Explanation of why the entity has a reasonable expectation that it will receive such funding prior to the delivery of services

 


Last modified on 5/27/2008