E-rate News

Applicants are reminded that today is the last day that a Funding Year 2012 Form 470 may be posted while still allowing the required 28 day competitive bidding period prior to the application deadline of March 20.

On February 16, 2012, FCC Chairman Julius Genachowski and FCC Inspector General David Hunt testified at a House Appropriations Subcommittee hearing titled “The Budget and Spending of the Federal Communications Commission.” Acting CEO of the Universal Service Administrative Company Scott Barash also testified, explaining the role USAC plays in administering and providing oversight to the four Universal Support programs, including E-rate.

On February 15, 2012, the Federal Communications Commission released an Order directing the USAC to extend procedural deadlines for any “Learning-On-The-Go” applicant who had not started their projects as of October 1, 2011.

In early February, the Federal Communications Commission and United States Department of Justice have issued criminal sentences and debarments in separate cases involving E-rate fraud.

On February 6, 2012, the Federal Communications Commission released a Report & Order reforming and modernizing the Lifeline and Link Up Universal Service Fund (USF) programs. In the same Order, the FCC released a Notice of Proposed Rulemaking (NPRM) seeking comment on the best way to advance digital literacy through existing USF support programs. The National Broadband Plan acknowledges that digital literacy is an “evolving concept” and defines digital literacy as generally referring to “a variety of skills associated with using information and communication technologies to find, evaluate, create and communicate information.”

Applicants and service providers are reminded that an important procurement deadline is rapidly approaching for Funding Year 2012. Tuesday, February 21, 2012 will be the last day that a Form 470 may be posted while still allowing the required 28 day competitive bidding period prior to the application deadline of March 20.

On February 2, the Universal Service Administrative Company (USAC) released their Demand Report for the second quarter of 2012. In the report, USAC stated that they have established “…a foundation of processes, systems, [and] procedures” to prevent waste, fraud, and abuse, and are evaluating “additional measures” to help control improper payments to beneficiaries.

In its January 27, 2012 News Brief, USAC provides updated guidance regarding Operational Service Provider Identification Number (SPIN) changes. The SPIN change updates in the News Brief reflect regulatory changes made by the FCC in the Sixth Report and Order, which was published in September 2010.

This week, the SLD informed 678 applicants and 630 service providers about the status of their funding requests in three separate funding years. Commitments for all four funding waves totaled $63.3 million.

In a recent FCC Order, the Commission upheld a Wireline Competition Bureau decision denying Integrity Communications’ request for review of an audit letter issued by USAC.

On November 18, the State E-rate Coordinators Alliance (SECA) filed an appeal with the FCC seeking an Item 21 Attachment deadline waiver for dozens of applicants. Starting in Funding Year 2011, Item 21 Attachments must be submitted by the time the Form 471 window closes. However, the SLD may grant additional time per the “clarification order” that was released on January 14, 2011.

The Funding Year 2012 Form 471 filing window officially opened today at noon Eastern time. The window will be open for 72 days, closing at 11:59pm Eastern on Tuesday, March 20, 2012. The last day that applicants may post a Form 470 for FY2012 while still meeting the required 28 day competitive bidding period will be Tuesday, February 21, 2012.

Every year, the FCC releases the Universal Service Monitoring Report prepared by the Federal-State Universal Service Joint Board. The Monitoring Report highlights trends and statistics from the four Universal Service Programs, including E-rate. The data in the report is current as of October 11, 2011.

On December 16, 2011, Congress passed the Consolidated Appropriations Act of 2012, an act which consolidates remaining appropriations bills into a combined piece of legislation in order to keep the federal government running for the upcoming fiscal year. Included in the bill is an amendment that continues to exempt Universal Service from the Anti-Deficiency Act (ADA) until December 31, 2013. It is anticipated that President Obama will sign the bill later this week.

On December 7, 2011, the Federal Communications Commission released an Order which codifies that a competitive bidding violation occurs when applicants reference a “specific manufacturer’s name, brand, product or service” on their Form 470 or RFP without including the phrase “or equivalent.”

On November 28, 2011, the FCC upheld USAC’s decision to rescind millions of dollars from a service provider involved in E-rate transactions which were found to violate competitive bidding regulations.

On November 25, 2011, the Federal Communications Commission announced that the instructions to FCC Forms 479 and 498 have been updated to include a new certification from the Protecting Children in the 21st Century Act.

On November 22, 2011, USAC officially announced the opening and closing dates of the E-rate Funding Year 2012 Form 471 filing window. The filing window will open at noon EDT on Monday, January 9, 2012 and close at 11:59 p.m. EDT on Tuesday, March 20, 2012.

On November 4, 2011, the FCC granted appeals filed by Trillion Partners, Inc and 3 applicants who were denied funding as a result of gift-giving activity. In its appeal decision, the Commission stated that the affected applicants held a fair and open competitive bidding process and followed relevant state and local procurement regulations.

On October 27, 2011, the FCC approved USAC’s recommendation to create greater efficiencies and implement mechanisms to control costs, saving the Universal Service Fund approximately $4.1 million. In addition, the Commission approved USAC’s request to extend its agreement with subcontractor Solix until June 30, 2012.

On October 18, 2011, USAC released Funding Wave 18 notifying 1,273 applicants and 817 service providers about the status of their FY 2011 funding requests. The funding wave included nearly $125 million in total commitments, and $99,725,000 was committed for Priority 2 applications at the 90% discount level.

The Universal Service Administrative Company (USAC) is soliciting candidates for the position of Chief Executive Officer. Since 2006, Scott Barash has been the acting CEO, with the responsibility of management and administration of all four Universal Service Programs.

USAC’s Schools and Libraries Division hosts monthly conference calls, providing information and guidance for service providers participating in E-rate. The monthly call for October was held on the 5th. Funds For Learning has provided the following synopsis of the call.

On September 29, 2011, United States Attorney George L. Beck, Jr. announced that Jonathan Michael Slaughter of Montgomery, AL entered a guilty plea to a single count of felony mail fraud related to the E-rate program. Between May 2006 and January 2009, Slaughter stole almost $900,000 from 20 school districts across the country.

Training materials for USAC’s Fall 2011 applicant training sessions are now available for download from the SLD’s website. The PowerPoint presentations cover a wide range of topics, including gift giving regulations, updated CIPA requirements, and correction of ministerial and clerical errors.

On September 21, the SLD will release the first Funding Year 2010 wave that will include Priority Two applications at the 80% discount level. According to a Funds For Learning analysis, there currently are 1,331 applicants that have P2 applications pending at the 80% discount level, totaling $266.9 million.

Two important E-rate deadlines occur in the month of October. In each case, failure to meet the deadline can result in the loss or reduction of E-rate funding!

On August 12, 2011, the FCC issued an Order based on the Protecting Children in the 21st Century Act updating the Children’s Internet Protection Act (CIPA). The rules were published in the Federal Register on September 13th, 2011 and will become effective on July 1, 2012.

USAC’s Schools and Libraries Division hosts monthly conference calls, providing information and guidance for service providers participating in E-rate. The monthly call for September was held on the 7th. Funds For Learning has provided the following synopsis of the call.

The SLD issued four regular waves and two appeal waves this week, notifying over 500 applicants and service providers about the status of their E-rate funding requests. Funding commitments totaled approximately $77 million. If an applicant has pending requests from FY 2010 or any previous funding year, they are encouraged to contact USAC regarding the delay.