8/24 SLD News Briefs

TIP OF THE WEEK: If you use the View 471 Status tool, remember that the status of each form appears at the top of your search results, to the right of its application number and applicant form identifier. An explanation of each status appears in the table below the search results.

Commitments for Funding Years 2012 and 2011

Funding Year 2012. USAC will release FY2012 Wave 8 FCDLs August 28. This wave includes commitments for approved Priority 2 (Internal Connections and Basic Maintenance) requests at 90% and denials at 89% and below. As of August 24, FY2012 commitments total over $997 million.

Funding Year 2011. USAC will release FY2011 Wave 58 FCDLs August 29. This wave includes commitments for approved Priority 2 requests at 88% and above and denials at 87% and below. As of August 24, FY2011 commitments total just under $2.36 billion.

On the day the FCDLs are mailed, you can check to see if you have a commitment by using USAC’s Automated Search of Commitments tool. 

Fall 2012 Applicant Training Sessions

The Minneapolis training session still has space available. The other training sessions are either marked “Waiting List” if we are still putting individuals on a waiting list or “Closed” if we are not.

If you are registered for a training session but will not be attending, please cancel your registration to open a space for someone else. You can continue to email USAC Training to cancel your registration or ask a question.

Non-recurring Services and Contracts

In last week’s SL News Brief, we discussed how to request a service delivery deadline extension for non-recurring services and the importance of requesting the extension no later than the deadline for delivery and installation of those services. This week we follow up with a discussion of contract extensions and the FCC Form 500. 

In many cases, contracts must be extended and the new contract expiration date reported to USAC. This is important because USAC will not pay invoices for eligible non-recurring services delivered or installed after the last day to receive service (the service delivery deadline), or the last day your contract is valid (the contract expiration date), whichever is earlier.

Extending a contract expiration date for non-recurring services

Applicants report the contract expiration date in Item 20b of each funding request on the FCC Form 471. USAC will not pay invoices for products and services installed and/or delivered after the contract expiration date on file with USAC. If a service delivery extension has been approved – either automatically or upon request – applicants and service providers will need to change the contract expiration date on file with USAC if products and services will be delivered after the date currently on file.

Please note: The contract extensions we discuss here are solely for the purpose of completing the delivery of services for commitments on Funding Request Numbers (FRNs) for the original funding year, not for extending the services to a new FRN for an upcoming funding year (see below).

If a contract expires before services will be delivered and installed, applicants should do the following:

  • Check the FRN Extension Table to verify that USAC has extended the service delivery deadline for the FRN.
  • Determine that an extension of the contract is allowed under the terms of the contract and under state and local procurement rules and regulations.
  • If an extension of the contract is allowed, negotiate an extension with the service provider.
  • File an FCC Form 500, Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation Form, to change the contract expiration date on file with USAC.
  • After USAC issues a Form 500 Notification Letter, the products and services can be delivered and installed and USAC can be invoiced.

Note that this kind of contract extension is different from a “contract with voluntary extensions.” A contract with voluntary extensions allows the applicant to extend an existing contract with the service provider and apply for discounts on services in an upcoming funding year without filing a new FCC Form 470 and opening a competitive bidding process for the services covered under that contract. For information on contracts with voluntary extensions, refer to the Contracts guidance document on the USAC website.

Tips for funding commitments that include non-recurring services

To make this process easier, consider the following:

  • If possible, set your contract to expire on September 30 rather than June 30 if the contract contains non-recurring services. This eliminates the need to file an FCC Form 500 if the work will be completed by the original deadline.
  • Communicate regularly with your service provider, especially if there may be delays. Knowing early that a problem exists gives you more time to plan for the best solution.
  • An approved service delivery deadline extension does not automatically extend a contract or change the contract expiration date on file with USAC. Similarly, an FCC Form 500, which you would use to change the contract expiration date on file with USAC, does not act as a service delivery extension request or extend the service delivery deadline.
  • Act promptly if you need to extend a contract or request a deadline extension. USAC receives a higher volume of requests when deadlines approach and it may take longer for USAC to process your request if you wait until the last minute.
  • Remember that USAC cannot act on a service delivery extension request filed after the last date to receive service, which is generally September 30.