News of the Week

Wave 25 for FY 2015 will be released next week on Monday, November 16th. Funding for FY 2015 is available for both Category 1 and Category 2 services at all discount levels. As of Wave 24, cumulative funding for FY 2015 was $2.51 billion.

New Non-EPC Form 470 Search Tools:

USAC has updated its non-EPC tools for searching for FY 2016 Form 470s. One tool provides access to individual Form 470s; the other is a download tool for collecting aggregate Form 470 information. The new tools are an improvement over the earlier Zip file format involving five bar-delimited CSV files, but are still not as easy to use as the existing tools for searching Form 470s for FY 2015 and earlier years.

The previous years’ Form 470 tool provided easy access to search by applicant name or BEN, or by a specific Form 470 number. The FY 2016 tool requires a user to select a date range, applicant type(s), state(s), and service type(s). The search results in a list (in HTML, Excel, or PDF format) meeting these criteria. (Note that a Form 470 linked to multiple RFP documents is listed as a separate line item for each RFP.)

One way to beat the system is to use the new View an FCC Form 470 (FY2016) to first create a list of all posted Form 470s. This can be done by selecting a date range beginning 07/01/2015 and by selecting the “All” option at the bottom of the pull-down lists for the three other search criteria. Once the full list is created, use the browser or Excel search functions to find a specific applicant or Form 470 number. (Surprisingly, the new tool does not display Billed Entity Numbers, so BEN searches are not possible.)

The new Download 470 Information (FY2016) tool utilizes the same search screen format, also produces search reports in three formats (again with multiple lines for Form 470s with multiple RFPs), but provides more detailed information on the selected Form 470s found (including the BENs). What the reported results do not provide are hot links back to the specific Form 470s nor to any associated RFPs. To get this information, users have to go back and use the other search tool. This suggests that those seeking specific Form 470 (and RFP) information start by using the broad View an FCC Form 470 capability described in the previous paragraph.

The Excel version of the Download 470 Information report automatically includes two additional worksheet tabs. This additional information is available in separate HTML downloads, but is not available in CSV format. One Excel tab, labeled “Consultants,” connects individual Form 470s with the related consultant contact information. The other tab, labeled “Consortium Entities,” identifies the individual members cited in consortium Form 470s that may participate in the resulting contracts. Note that the “Consortium Entities” tab does not show the actual consortium names, so it is necessary to capture the associated Form 470 number(s) and use the viewing tool to determine which consortium(s) is responsible for the procurement(s).

Form 470 Narrative Limitations:

USAC has been encouraging applicants to further explain their procurement needs using the Narrative sections of the Form 470. At the moment, however, applicants should recognize that the EPC-based Form 470 has a 2,000 character limitation on Narratives — a limitation that is summed across all Narrative fields in a Form 470, not just on a field-by-field basis. Applicants exceeding this character limitation are finding that their draft Form 470s are disappearing from the system and have to be redone.

USAC is apparently aware of this problem. It plans to increase the overall character limitation to 5,000 and to add a Form 470 EPC warning.

Form Navigation Buttons:

Last week’s S&L News Brief, referenced below, includes a brief section on the use of form navigation buttons within EPC. Currently, this is only applicable for creating new Form 470s, but it is apparently the same navigation format that will be used as other forms (e.g., the Form 471) are added to EPC. The form navigation buttons discussed are “Back,” “Discard Form,” “Save & Share,” and “Save & Continue.”  Please note the distinction between sharing and continuing work on a form.

Form 471 Category 2 Cost Allocations:

Category 2 costs for FRNs covering multiple schools or libraries must be allocated to the individual entities so that they can be properly attributed to those entities’ five-year budgets. The online Form 471 system for FY 2015 provided three options for allocating costs, the first two of which resulted in automatic calculations. Initial indications are that the new EPC-based Form 471 for FY 2016 will eliminate the second automatic calculation option.

The FY 2015 system provided the following three allocation alternatives:

1. A straight line method assigning equal costs to each entity.
2. A weighted-entity method assigning proportional costs to each entity based on each school’s student count or each library’s square footage.
3. A specific per-entity allocation provided by the applicant. As with all allocations, the general guideline is that the allocation be “based on tangible criteria and reaches a realistic result.”

It appears that method #2 will not be an auto-calculate option in FY 2016. This may be a premature warning, but may be useful for planning purposes. Weighted (i.e., proportional) allocations can still be used, but would have to be calculated separately by the applicant.

USAC Phishing Attack:

USAC posted an important notice on its website last Friday warning that its email system had been subjected to a phishing attack. The attack involved virus-infected emails sent with the subject line “ITS help desk.”  If received and opened in error, please see the USAC warning for more details.

Relief for Zero-Funded BEARs:

To speed invoice processing, USAC does not do much outreach, if any, to resolve apparent problems — often of a ministerial or clerical error nature — on BEAR invoices. Instead, USAC simply rejects the invoice, relying on the applicant to correct and resubmit the BEAR. This process can be problematic for applicants in two ways.

First, the applicant needs to recognize that a BEAR has been rejected. Once USAC processes a BEAR, it sends a copy of a BEAR Notification Letter to the applicant. Whether the BEAR was approved or rejected, the first page of the letter looks similar. The key indicator is the BEAR approval amount that, in the event the invoice was rejected, shows $0.00. This is known as a “zero-funded BEAR.”  If a BEAR is rejected, the reason is not always obvious and it may be necessary to call the Client Service Bureau (“CSB” at 888-203-8100). In any event, it is imperative to read BEAR Notification Letters carefully.

Correcting and resubmitting a zero-funded BEAR is normally a straight-forward process, but there is a serious second problem at this time of the year. October 28th was the regular invoice deadline for submitting FY 2014 recurring service invoices. BEARs filed by the deadline, but subsequently rejected, cannot just be resubmitted (unless the applicants, as some did, had the foresight to request invoice deadline extensions, also required by October 28th). USAC’s options, under current FCC invoice deadline rules, are limited. Applicants have the following two alternatives for dealing with post-deadline, zero-funded, BEARs:

1. File a waiver request with the FCC seeking an extension of the invoice deadline; or
2. File an appeal with USAC seeking a review of the BEAR rejection.

USAC has indicated that the appeal alternative may be the most expeditious. If approved, USAC procedures may still require resubmission of the BEAR, but USAC will provide a 30-day window for doing so. Please note the following:

1. Under current FCC rules, there is a critical distinction between appeals and waiver requests. The USAC alternative for addressing a zero-funded BEAR is an appeal of the BEAR’s rejection, not a request for a waiver of the invoice deadline.
2. USAC appeals may be submitted electronically through the non-EPC Submit A Question mechanism or by establishing a Customer Service case in EPC. In either case, USAC appeals should indicate the necessary corrections to the initial BEARs.

Upcoming E-Rate Training:

Form 486 Deadlines for November:

The first Form 486 deadline for certifying the start of service (and CIPA compliance, if applicable) is 120 days from the later of the FCDL approval date or the start of service date. The remaining November deadlines for approved FY 2015 applications (adjusted to Monday since all three 120-deadlines fell on Saturdays) are:
                      Wave   8           11/16/2015
                      Wave   9           11/23/2015
                      Wave 10           11/30/2015

The S&L News Brief of November 6, 2015, continues last week’s discussion of the Form 470 procurement process. New topics include:

• Posting for Category 1 and Category 2 services
• Meeting all state, local, and E-rate program requirements
• Assuring bona fide requests
• Avoiding manufacturer or brand names without specifying “or equivalent”
• Breaking existing contracts
• Clearly indicating reasons, if any, for bid disqualifications