Information Memorandums (IMs)—2006

E-Rate Discounts Available in Select States—Apply Now! (ACF–IM–HS–06–06)

INFORMATION MEMORANDUM

TO: All Head Start Grantees

SUBJECT: Discounted Telecommunication and Internet Access: E-Rate

INFORMATION:

The Federal Communications Commission (FCC) has established a Schools and Libraries Universal Service Program to bring schools and libraries in America into the information age. This program, commonly known as the E-Rate, was established as part of the Telecommunications Act of 1996 and provides affordable telecommunications services for all eligible schools and libraries, especially those in rural and economically disadvantaged areas. Funding is capped at $2.25 billion annually. The Universal Service Administrative Company (USAC) administers the program for the FCC.

The E-Rate supports connectivity-the conduit for communications using telecommunications services and/or the Internet. Applicants may request funds under four categories of service: telecommunications services, Internet access, internal connections, and basic maintenance of internal connections. Applications must be filed annually and the deadline for filing is January 10, 2007.

Discounts for support depend on the level of poverty and the urban/rural status of the population served. Discounts range from 20 percent to 90 percent of the costs of eligible services. Head Start programs in the states listed below are eligible for the higher discount rates. In real dollars saved, at the 90 percent rate, a monthly telecommunications bill of $1000 would be $100, for an annual savings of $10,800.

In order for a Head Start program to be eligible, there must be language in their state statutes that authorizes education services and funding for preschools. Presently, grantees are eligible in the following states:

• California, Colorado, Connecticut, Florida, Hawaii, Illinois, Iowa, Louisiana, Maryland, Minnesota, Mississippi, New Jersey, New York, Oklahoma, Pennsylvania, Rhode Island, Texas, Virginia, Washington, West Virginia, Wisconsin.

Grantees in the following states are eligible if they are located in a public school facility:

• Kansas, Maine, Missouri, North Carolina, South Dakota, Utah

E-Rate funds two types of services:
Priority 1 Services

• Telecommunication Services includes local, long distance, wireless and voicemail (does not require a technology plan)
• Internet Access (requires a technology plan)

Head Start programs should explore filing E-rate applications for Priority 1-telecommunication services. The cost saving is substantial, a technology plan is not required and the closing date is January 10, 2007. All priority one eligible applications are funded before priority 2 services.

Those programs with technology plans in place may consider also applying for Priority 2.
Priority 2 Services (requires a technology plan)

• Internal Connections
• Basic maintenance of internalconnections

Application Process

The application process for telecommunication services (Priority 1) includes the following steps:

• Determine Eligibility
• Open a Competitive Bidding Process by submitting a Description of Services Requested on-line at http://www.sl.universalservice.org/menu.asp --- Form 470 (sample attached)
• Select a Service Provider
• Submit a Funding Request through Services Ordered and Certification Form 471 (sample attached)
• Undergo Application review by USAC
• Receive Funding Decision
• Begin Receipt of Services / Form 486
• Invoice USAC / Form 472 or Form 474

A more detailed explanation of the E-rate application process is attached or you can access the site at: http://www.universalservice.org/_res/documents/sl/pdf/els_archive/2007-eligible-services-list.pdf. This is a user friendly site established by the FCC, and programs are encouraged to access it directly.

Important Timelines

To obtain discounts for the July 1, 2007–June 30, 2008 program year, Head Start programs must file on-line a description of services requested, Form 470, by January 10, 2007. Attached is a sample Form 470. Form 470 must be posted for 28 days to allow vendors the opportunity to bid on the services requested. Applicants may then select a vendor and submit a Services Ordered and Certification Form 471. Form 471 must be submitted by 11:59 PM ET on Wednesday, February 7, 2007. A sample Form 471 is also attached.

Head Start programs may contact the Head Start Knowledge and Information Management Services (HSKIMS) at (866) 763-6481 for general information about E-Rate applications. To ensure swift service, please have the following information ready when you call:

• Legal name of agency
• Physical address (no P.O. Box)
• Mailing address (if different) City, State, Zip
• Telephone number and fax number
• Agency E-rate point of contact and e-mail address
• Type of organization (public, private, or religious)
• County or parish name
• E-mail address for the organization (not a personal e-mail address). If there is no e-mail address for the organization state “no e-mail address for the organization.”
• Name, e-mail and contact information for the person making this request

Information Services staff members at HSKIMS will forward your information to the E-Rate consultant who will contact you directly.

Eligible Services

Only certain products and services, used in certain ways, are eligible for E-Rate. Eligibility is based on criteria established by statute and FCC rules. The Eligible Services List is one of the key documents that indicate the products and services that can receive E-Rate funding and the acceptable uses for those products and services.

The Office of Head Start will sponsor information webinars in 2007 for grantees to hear more about E-Rate for the 2008 funding period. The Office of Head Start has been advised that service providers and consultants may approach Head Start programs with offers to get E-Rate funding, some of which are not in the best interest of Head Start.

In 2007, The Office of Head Start will encourage all eligible Head Start programs to participate in Priority 2 Services—for the July 1, 2008–June 30, 2009 E-rate program year. The FCC requires that Technology Plans be approved for reimbursement for many eligible services. Webinars, cluster trainings are being considered in 2007 and a tool kit is under development to support Head Start programs in applying.

The tool kit will be available on the Early Childhood Learning and Knowledge Center (ECLKC) at http://eclkc.ohs.acf.hhs.gov/hslc.

Sincerely,

(Download in PDF)

Attachments:

E-Rate Process
Sample Form 470 [PDF, 367 KB]
Sample Form 471 [PDF, 588 KB]