SLD News Brief – 8/17/2012

TIP OF THE WEEK: If you want to request an extension of the deadline for delivery and implementation of FY2011 non-recurring services, be sure to do so no later than the last day to receive those services (see below). USAC cannot approve service delivery extension requests submitted after that date.

Commitments for Funding Years 2012, 2011, and 2010

Funding Year 2012. USAC will release FY2012 Wave 7 FCDLs August 21. 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 17, FY2012 commitments total over $945 million.

Funding Year 2011. USAC will release FY2011 Wave 57 FCDLs August 22. This wave includes commitments for approved Priority 2 requests at 88% and above and denials at 87% and below. As of August 17, FY2011 commitments total over $2.35 billion.

Funding Year 2010. USAC will release FY2010 Wave 99 FCDLs August 23. This wave can include commitments for approved Priority 2 requests at all discount levels. As of August 17, FY2010 commitments total over $3.05 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

Here is the current status of registrations:

  • Minneapolis still has space available.
  • Washington DC, Los Angeles, and Dallas are closed. Individuals can no longer ask to be placed on the waiting lists. We continue to accept individuals from the waiting lists as we receive cancellations.
  • Individuals may still sign up for the waiting lists for the other four training sessions. As above, we admit individuals from the waiting lists as we receive cancellations.

We have started sending email reminders to everyone that is registered for a training. If you are registered in more than one city, please cancel the registration(s) that you will not be using. You can simply email USAC Training to cancel your registration and thereby allow someone from a waiting list to attend that training.

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 an FCC 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 an FCC 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 FCC 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.

  • 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:

  1. The applicant or service provider must file a service delivery extension request to extend the service delivery deadline.
  2. If the existing contract expires before the date when services will be delivered, the applicant and service provider should work together to extend the existing contract (assuming that an extension is allowable under the terms of the contract and under any applicable state or local requirements) and then file an FCC Form 500 to notify USAC of the extended contract expiration date.

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:

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 guidance 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 received 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.