Things don't always go according to the plan and you may need to make some changes as you navigate the E-rate process. This category outlines the major types of changes, transfers, and trade-ins that are allowed in the E-rate program.
If an applicant needs to change the established payment method of a FRN, they will need to request a change of invoice mode.
The SLD does allow applicants to make minor changes to the equipment being delivered as a part of an E-rate transaction. There are multiple requirements for an equipment change as well. The SLD outlines four major requirements for service substitutions:
1. The substituted services or products must have the same functionality as the services or products contained in the original proposal.
In limited situations, USAC may extend the deadline for filing invoices (BEARs or SPIs). According to USAC, these situations are limited to:
In general, applicants are allowed to change service providers and equipment manufactures for an approved E-rate funding request. However, there are several steps that are required, so let’s have a look at each individually.
The FCC allows for the transfer of equipment from one entity to another; however the circumstances to allow for such a transfer are very strict and specific.
What are Transfers of Equipment?
A transfer of equipment occurs when equipment provides a service to an entity not included on the original FRN. It does not necessarily mean that the equipment has been physically moved from one location to another, nor does it mean that the original entities listed on the FRN are no longer using it.
What are the rules for equipment transfers?
Equipment purchased with E-rate discounts may be traded-in, if the trade-in amount is applied to the purchase of new eligible equipment, and the pre-discount amount on the Form 471 is reduced by the trade-in amount. Thus, a trade-in of equipment purchased with E-rate discounts cannot be used toward payment of the applicant’s non-discount share. The SLD must share in the benefit of any price reductions based on the value of E-rate-supported equipment trade-ins.
If the equipment was not purchased with E-rate discounts, the fair market trade-in value may be used toward payment of the non-discount share. The amount credited toward the non-discount share must be the fair market value or acquisition cost, whichever is lower.
The SLD says that there is a rebuttable presumption that technology equipment has a three-year life and that the value declines on a straight-line basis. Therefore, the presumptive value of a component with an original cost of $1000 would be $666 after one year, $333 after two years, and would have no value after three years. The applicant or service provider may provide evidence of fair market value to rebut this presumption.
