News and Tips from USAC – 9/2/2011

Commitments for Funding Years 2011 and 2010

Funding Year 2011. USAC will release FY2011 Wave 12 Funding Commitment Decision Letters (FCDLs) September 7. This wave includes commitments for approved Priority 1 (Telecommunications Services and Internet Access) requests at all discount levels. As of September 2, FY2011 commitments total over $788 million.

Funding Year 2010. USAC will release FY2010 Wave 65 FCDLs September 8. This wave includes commitments for approved Priority 2 (Internal Connections and Basic Maintenance) requests at 81% and above. As of September 2, FY2010 commitments total over $2.59 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.

Update on Fall Applicant Training Sessions

Registration is still open for the training sessions in Minneapolis MN, and Orlando FL. To register for a training session or to get hotel information, go to the Training Sessions and Presentations page on the USAC website.

Remember that you must also make a room reservation if you want to stay at the conference hotel. The table below shows the last day to make a reservation at the negotiated conference room rate. Rooms may not be available – or may be more expensive – if you try to make a reservation after these dates. 

If you have questions or wish to cancel your reservation, please email USAC.

Form 500 and Form 500 Notification Letters

Applicants file Form 500, Adjustment to Funding Commitment and Modification to Receipt of Service Confirmation, to request one or more of the following changes to a Funding Request Number (FRN):

• Change the service start date on the FRN
• Change the contract expiration date on the FRN
• Reduce the funding amount on the FRN
• Cancel the FRN

If you file a Form 500, USAC will review your form for compliance with program rules. USAC will then issue a Form 500 Notification Letter to both you and your service provider reporting the change(s) you requested and the action USAC has taken in response.

Following is a short discussion of each of these four changes.

Change the service start date.

Applicants enter a service start date for an FRN in Item 19 on the Form 471. However, USAC uses the service start date reported for the FRN on the Form 486 as the date that service actually started.

Sometimes discounted services do not begin on the date originally reported on the Form 486. Also, applicants may report a later service start date only to find that services can begin earlier than planned. As long as the change is in compliance with program rules, applicants can use the Form 500 to notify USAC that the service start date has changed.

NOTE: During the review of a Form 486, USAC may adjust the reported service start date to comply with program rules. For example, you may certify a Form 486 for an Internal Connections FRN that features a service start date of July 1, 2011. However, during its review of your form, USAC determines that your technology plan was not approved until September 1, 2011. USAC will adjust your service start date for that Internal Connections FRN to September 1 and will not pay discounts on services delivered under that FRN before that date.

If USAC adjusts your service start date to comply with program rules, you cannot use a Form 500 to reset the service start date to a date earlier than the adjusted service start date.

Change the contract expiration date.

Sometimes, services can be delivered and installed after the expiration date of the original contract. This generally happens in the following situations:

• A contract for non-recurring services expires on June 30 but the applicant realizes that, under program rules, the service provider actually has until September 30 to deliver and install those non-recurring services. 
• A contract for non-recurring services expires on or before September 30 and the applicant submits – and USAC grants – a service delivery deadline extension request for additional time beyond the September 30 deadline to complete delivery and installation of those services. Note that a service delivery extension request must be received or postmarked on or before the last date to receive service.

If an applicant wants to extend a contract, remember that (1) the extension must be allowable under the terms of the contract and (2) the applicant and service provider must agree to extend the contract.

After USAC has processed the Form 500 and updated the contract expiration date in its files, invoices can be paid for delivery and installation completed on or before the revised contract expiration date. Remember, however, that the delivery and installation must also occur on or before the original (or extended) service delivery deadline.

As a reminder, invoices must be postmarked no later than:

• 120 days after the last date to receive service, or
• 120 days after the date of the Form 486 Notification Letter, whichever is later.

If you are extending a contract, you may also need to submit an invoice deadline extension request for additional time to invoice USAC for these services at some point in the future.

Reduce the funding on the FRN.

An applicant may ask USAC to reduce the committed amount on an FRN. This can happen for a number of reasons, including:

• The cost of the service was less than expected and funds remain on the FRN after USAC has been invoiced for all approved services and the invoices paid.
• Fewer products and/or services were actually delivered and installed than were originally requested and funds remain on the FRN after USAC has been invoiced and the invoices paid.
• Some of the products or services on the FRN were ineligible, and the applicant wants to reduce the committed amount to reflect only the eligible services.

Applicants do not have to provide a reason on the Form 500 for a reduction request, but they should maintain supporting documentation in their files.

Please note, however, that applicants should not reduce funding commitments until they are sure that they will not need those funds. If the service provider is filing Service Provider Invoice Forms 474 for an FRN, the applicant should verify with the service provider that all Forms 474 have been submitted to USAC and paid before filing a Form 500.

Once USAC reviews and accepts the request to reduce funding, the funding cannot be returned to the FRN. Instead, it becomes available for USAC to commit to other FRNs for that funding year.

Cancel the FRN.

If a project will not be undertaken or services will not be received on an FRN, the applicant can request that the FRN be cancelled. A cancellation can only occur if USAC has not paid out any funds on the FRN. If funds have been paid, the applicant should request a reduction – that is, that the committed amount be reduced to the amount of funds already paid – rather than a cancellation.

As above, the applicant should maintain documentation that supports the request. Once the FRN is cancelled it cannot be reinstated.

Additional tips.

• Carefully check the data you enter on the form. USAC cannot undo a reduction or cancellation after a Form 500 has been reviewed and processed.
• Use the current version of the Form 500, dated April 2007 in the lower right-hand corner.
• If you have more than one FRN for which you would like to request Form 500 changes, include a completed page 2 for each FRN.
• Make sure your contact information is correct. The Client Service Bureau will use this information to contact you if there are missing fields or discrepancies that cannot be resolved and give you an opportunity to make corrections.

Aug. 26th Tips and News from USAC

Commitments for Funding Years 2011, 2010, and 2009

Funding Year 2011. USAC will release FY2011 Wave 11 Funding Commitment Decision Letters (FCDLs) August 30. This wave includes commitments for approved Priority 1 (Telecommunications Services and Internet Access) requests at all discount levels. As of August 26, FY2011 commitments total over $755 million.

Funding Year 2010. USAC will release FY2010 Wave 64 FCDLs August 31. This wave includes commitments for approved Priority 2 (Internal Connections and Basic Maintenance) requests at 81% and above. As of August 26, FY2010 commitments total over $2.59 billion.

Funding Year 2009. USAC will release FY2009 Wave 92 FCDLs August 31. This wave includes commitments for approved Priority 2 requests at 77% and above and denials at 76% and below. As of August 26, FY2009 commitments total over $2.86 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.

Update on Fall Applicant Training Sessions

Registration is still open for the training sessions in Minneapolis MN, Portland OR, and Orlando FL. To register for a training session or to get hotel information, go to the Training Sessions and Presentations page on the USAC website.

Remember that you must also make a room reservation if you want to stay at the conference hotel. The table below shows the last day to make a reservation at the negotiated conference room rate. Rooms may not be available – or may be more expensive – if you try to make a reservation after these dates. 

 If you have questions or wish to cancel your reservation, please email USAC.

Extending Contracts for Non-recurring Services

In the August 19 SL News Brief, we discussed requesting a service delivery extension for non-recurring services and the importance of requesting the extension no later than the deadline for receipt of those services.

In many cases, contracts must also 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 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, 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 a 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 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 Contract 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 a 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, a 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. 

FCC Authorizes Additional Funds for FY2010 and FY2011

August 23, 2011

On August 22, the Federal Communications Commission (FCC) issued Order DA 11-1354. This order directs USAC to begin making funding commitments for FY2010 Priority 2 services at the 80% discount level and to use funds from reserve accounts to fund eligible FY2010 Priority 2 requests at all discount levels.

USAC has already started the review of FY2010 Priority 2 services at the 80% discount level, and so should be able to start making commitments on approved requests as soon as possible. FY2010 Priority 2 requests at the 79% discount level and below that have been denied for insufficient funding will be returned to the PIA review process. No additional action is required at this time on the part of applicants with funding requests below 80%. PIA reviewers will be in touch with these applicants once they begin the review of these applications.

In addition, the FCC has directed USAC to roll over $850 million of unused funds to FY2011. At this time, we cannot determine the exact discount level we will be able to reach for Priority 2 requests for FY2011. We will of course provide updates as we are able to do so.

Again, no special action is required on the part of FY2010 applicants for Priority 2 requests at 79% and below that have already been denied. However, these applicants should be sure to monitor the preferred mode of contact they indicated on their Forms 471 and respond promptly to PIA requests for information.

USAC/SLD News & Tips from Aug.19, 2011

TIP OF THE WEEK: If you have non-recurring services that will not be delivered and installed on or before September 30, you can request a service delivery deadline extension for those services. However, USAC cannot consider your request if it is submitted after September 30 (see below).

Commitments for Funding Years 2011, 2010, and 2009

Funding Year 2011. USAC will release FY2011 Wave 10 Funding Commitment Decision Letters (FCDLs) August 23. This wave includes commitments for approved Priority 1 (Telecommunications Services and Internet Access) requests at all discount levels. As of August 19, FY2011 commitments total over $712 million.

Funding Year 2010. USAC will release FY2010 Wave 63 FCDLs August 25. This wave includes commitments for approved Priority 2 (Internal Connections and Basic Maintenance) requests at 81% and above and denials at 79% and below. As of August 19, FY2010 commitments total over $2.59 billion.

Funding Year 2009. USAC will release FY2009 Wave 91 FCDLs August 22. This wave includes commitments for approved Priority 2 requests at 77% and above and denials at 76% and below. As of August 19, FY2009 commitments total over $2.86 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.

Update on Fall Applicant Training Sessions

Registration for five of the fall applicant training sessions – Washington DC, Newark NJ, St. Louis MO, New Orleans LA, and Los Angeles CA – has closed. If you would like to attend training, you should register as soon as possible for one of the sessions that is still open. To register for a training session or to get hotel information, go to the Training Sessions and Presentations page on the USAC website.

Remember that you must also make a room reservation if you want to stay at the conference hotel. The table below shows the last day to make a reservation at the negotiated conference room rate. Rooms may not be available – or may be more expensive – if you try to make a reservation after these dates. 

If you have questions or wish to cancel your reservation, please email USAC.

Non-recurring Services and Contracts

Services eligible for E-Rate discounts are classified as either recurring or non-recurring.

Recurring services, such as monthly telephone services or Internet access:

• Are usually delivered continuously during all or part of the funding year.
• End no later than June 30, the last day of the funding year.
• Are reported in Items 23A – 23E of a Form 471 Block 5 funding request.
• NOTE: Basic Maintenance of Internal Connections is considered a recurring service. This is true even if the applicant makes a single payment for these services.

Non-recurring services, such as installation of telephone service, cabling and wiring for Internet access, and Internal Connections equipment:

• Are usually delivered and installed once or at specific times.
• End no later than September 30 following the funding year, although this deadline can be extended.
• Are reported in Items 23F – 23H of a Form 471 Block 5 funding request.
• NOTE: If you are making monthly payments to purchase equipment, you should NOT report those costs as recurring services. Doing so will set your last date to receive services as June 30 without the possibility of an extension. If you have reported monthly costs for what is truly a non-recurring service, be sure to correct your Form 471 before USAC issues an FCDL with a commitment for that service.

The additional three-month period (July 1 – September 30) for the delivery and installation of non-recurring services enables work to be completed during the summer when schools are not in session. However, many applicants and service providers sign contracts for non-recurring services that expire on June 30 even though it is possible for those services to be delivered and installed after that date.

• Note that 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.

If additional time is needed for the installation or delivery of non-recurring services, the applicant most likely will need to complete two separate processes:

1. File a service delivery extension request to extend the service delivery deadline.
2. Extend the existing contract with the service provider and then file a Form 500 to notify USAC of the extended contract expiration date.

We will discuss service delivery extension requests this week and contract extensions in a later SL News Brief.

Requesting a service delivery deadline extension for non-recurring services

In general, non-recurring services must be delivered and installed on or before the September 30 following the close of the funding year. In some situations, the service delivery deadline can be extended for an additional year. These extensions can occur either automatically or upon request, and a Funding Request Number (FRN) may receive more than one extension.

A one-year extension of the September 30 deadline occurs automatically if:

• USAC issues an FCDL on or after March 1 of the funding year with a positive funding commitment for that FRN.
• USAC issues a Service Provider Identification Number (SPIN) change approval on or after March 1 of the funding year for the SPIN featured on that FRN.
• USAC issues a service substitution approval on or after March 1 of the funding year for that FRN.

A one-year extension of the September 30 deadline can be requested if:

• The applicant submits documentation to USAC on or before the service delivery deadline that the service provider was unable to complete delivery and installation for reasons beyond the service provider’s control, or
• The applicant certifies to USAC on or before the service delivery deadline that the service provider has been unwilling to complete delivery after USAC withheld payment for those products and services on a properly submitted invoice for more than 60 days after submission of the invoice.

Applicants can request an extension by following the guidance in the Service Delivery Deadlines and Extension Requests document on the USAC website. If an applicant requests a service delivery extension, USAC will review the information submitted and, if appropriate, approve the extension.

• USAC cannot consider service delivery extension requests submitted or postmarked after the service delivery deadline on record for the FRN, which is generally September 30 following the close of the funding year.

In a future SL News Brief we will discuss extending the contract and reporting the new contract expiration date to USAC.

FCC’s New Ruling on Multi-tiered Bid Evaluation Processes

Please note the section on pages 7 and 8 regarding the FCC’s new ruling on multi-tiered bid evaluation processes.  This will almost certainly be reflected in SLD rules changes – both on their web site and in review rules.  You might also want to read the Discussion section starting on page 5 to get some additional context.

http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-11-1368A1.pdf