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Late Friday, the SLD posted a series of important Form 470 and Form 471 reminders for FY 2003 applicants. The Form 470 reminders deal primarily with the required competitive bidding process. They define what the SLD means by "fair and open" competition and the selection of the "most cost-effective bid".
Two other issues are worth stressing.
Vendor Assistance in Form 470 Preparation:
For several years, following a major problem with one vendor, the SLD and FCC have consistently ruled that a vendor, who will be bidding for an applicant's services, cannot be listed as a contact on a Form 470. To require other vendors to submit bids or inquiries through a competitor is quite rightly considered a serious violation of the program's competitive bidding rules.
If a vendor simply helps an applicant prepare a Form 470, the issue is more complex. Last April, the SLD revised the Form 470 specifically to add the following statement: "Service provider involvement with preparation or certification of a Form 470 can taint the competitive bidding process and result in the denial of funding requests."
As written, this is a warning, not a prohibition. For additional information, applicants and vendors are referred to "Service Provider Role in Assisting Customers". This document is in the Service Providers section of the SLD Web site, but is equally applicable to applicants.
The essence of the SLD's position is that any involvement by a vendor in the pre-selection E-rate process must be such as to provide only neutral advice and to foster competition. Specifically, the instructions read that "the applicant should not have a relationship with the Service Provider prior to the competitive bidding that would unfairly influence the outcome of a competition nor would furnish the Service Provider with 'inside' information or allow them to unfairly compete in any way."
Technology Plan and Form 470 Timing:
A number of applicants appear to be operating under the mistaken impression that an approved technology plan is not needed until they are funded for a particular year and they file their Form 486s. While it is true that the Form 486 is the first form to require the certification that a technology plan is actually approved, the SLD's rules state that a technology plan must be approved from the time discounted services are received (normally July 1 of the funding year).
Since both a Form 470 and a Form 471 must be filed before each funding year starts, the certifications on these forms do require approved status. Instead, there is an option to check a box stating "technology plan(s) will be approved by a state or other authorized body." The instructions for these forms, however, are a bit more precise. They indicate that the "will be approved" box can be checked "if you are currently seeking approval of your technology plan(s)." This strongly implies that there is a plan, but that it has not yet been approved. The rationale for this instruction is the belief that services requested on a Form 470 should be based on a pre-existing technology plan, however unofficial.
We would also remind applicants that they have less than two months to complete their work before the filing window closes on January 16, 2003. Since the remaining period includes the busy holiday season, as much planning and work as possible should be done within the next month. The following questions must be addressed:
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