E-Rate & SOCS

If you are applying for E-Rate funding for web hosting services, please note that USAC has approved an increase in the E-rate reimbursement rate for SOCS. The eligible SOCS web hosting component has increased from 61% to 73%.

Per USAC's guidelines, web hosting is eligible for e-rate funding, however, the tools with which a site is managed are not 100% eligible, therefore we have cost allocated our services. Please refer to our website for step-by-step filing guidelines: http://www.socs-hero.org/vnews/display.v/ART/4cd05cc6358db.

Your Form 470 deadline to file is February 21 in order to meet the 28-day waiting period before filing a Form 471.

The Form 471 filing window opens January 9, 2012 and closes March 20, 2012, at 11:59 pm.

When filing your Form 471 for web hosting services, make sure that you mark the category of service as Priority 1, Internet Access, in Block 5. Our SPIN number is 143028010. List the service provider as the Foundation for Educational Services. In your calculations, list 73% of your annual web hosting amount as the annual non-recurring charges. All components within the 73% are eligible. Be sure to list the ineligible components at $0. Your total discount is based on your free and reduced lunch program percentage as determined by USAC. For detailed instructions, please refer to USAC's website at: http://www.usac.org/sl/applicants/step07/form471-filing-infomation.aspx.

If you have any questions or concerns, please contact SOCS at erate@fes.org or call 800.850.8397.

Getting Your Money!

Once the Form 486 is filed and a notification letter is received, the next steps to getting your district's money is as follows:

• Discuss with your service providers whether you would like discounts on your bills or to pay your bills in full and be reimbursed for discounts.
• Invoice USAC before the invoice deadline using the BEAR Form 472 for reimbursements after paying the bills in full OR invoice the service providers using the SPI Form 474 if you choose to receive discounts off of your bills.
• The invoice deadline is typically 120 days after the last date to receive services, ie..120 days from June 30 each year.

E-Rate Competitive Bidding Rules

• The Form 470 must explicitly indicate (via a checkmark in the appropriate box) that the applicant has or intends to issue an RFP, and must indicate how a service provider may obtain a copy of the RFP. (Note: If, within a single category of service, an applicant uses an RFP for some services, and no RFP for other services, the applicant should file two Form 470s, one for RFP services and one for non-RFP services.)

• The Form 470 must be posted for 28 days before an applicant can select a vendor, sign a contract, and/or file a Form 471 application. The 28th day is known as the Allowable Contract Date ("ACD"). If an RFP is also issued, that RFP must also remain open for 28 days. If the Form 470 and RFP are not released on the same day, the 28-day requirement is governed by whichever is filed last. If, for example, the RFP is issued 5 days after the Form 470 is filed, the first day that the applicant can select a vendor is not the ACD shown on the posted Form 470, but five days thereafter (i.e., 28 days from the issuance of the RFP).

FY 2010 BEAR Deadline for Recurring Services is October 28!

Applicants and service providers only have until Friday, October 28, 2011 to file Form 472s (BEARs for applicants) or Form 474 (SPIFs for service providers) to collect FY 2010 (July 2010 - June 2011) funding for eligible recurring services.

Unless you are receiving discounted bills, you must file a Form 472 BEAR to seek reimbursement. If you have a PIN, this form can be filed online at: http://www.sl.universalservice.org/menu.asp. Or it can be filed manually (print and mail it) and is available at: http://www.sl.universalservice.org/form/ (the SLD website) or at http://www.e-ratecentral.com/formsRack/app/Form472.asp (the easiest .pdf version I've found to use).

After the SLD has reviewed and approved your BEAR, they will mail to you a BEAR Approval Letter, listing the amount of your check. Your check is mailed to your service provider within 20 days after the mailing of the approval letter. Service providers are required to mail you a check for the same amount within 20 calendar days of receiving the check from the SLD.

A few important Q & A's:

1) Can I complete the BEAR online?
A. Yes! The BEAR Form -- 472 -- can be submitted electronically to the SLD -- if your service provider is accepting Online BEARs and if you have an E-rate PIN. Information regarding the Online BEAR will be sent to the listserve tomorrow. If you cannot file online or choose not to, you can complete the Form 472 online using the PDF format, print it, and then mail it to the SLD (after getting the service provider to counter-sign, of course). The paper BEAR is located at: http://www.universalservice.org/sl/tools/required-forms.aspx under Form 472. The Online BEAR can be filed at https://www2.sl.universalservice.org/bear/login.aspx.

2) Can I put all of my reimbursement requests on a single BEAR?
A. No, a separate BEAR must be completed for each provider. For example, if you have 2 FRNs that list Comcast, and one FRN that is for AT&T, you can submit both Comcast FRN reimbursement requests on a single BEAR, and submit the AT&T reimbursement request on a separate BEAR.

3) Am I required to have the provider sign the BEAR?
A. Yes and No. You need the service provider's signature on the PAPER BEAR Form before you submit it to the SLD. For the Online BEAR, the completed form will automatically be transmitted to the service provider for their electronic signature and then automatically filed with USAC. No separate signature is needed. To find the fax number of your service provider to have them sign the PAPER BEAR, use the SLD's SPIN search database (http://www.sl.universalservice.org/Forms/SPIN_Contact_Search.asp) and call the number listed.

Also, make sure the service provider signs the last page -- the Service Provider Certification Page -- and not the Applicant Certification Page which looks very similar. Also make certain that the provider includes the date beside their signature; dates are considered a minimum processing standard.

4) I was committed more funding than I actually spent. Can I request reimbursement for the full amount that was originally committed?
A. No. Applicants may only seek reimbursement for the exact amount paid for the service instead of just listing the full funding cap (for example, if you were committed $10,000, but then only spent $6,000, you can only request E-rate reimbursements based on the $6000). Please know that the SLD has increasingly been requesting copies of invoices when they review the BEARs as proof that you are requesting the accurate amount. Don't send the invoices with the BEAR, but know they might be requested.

5) I spent more than what was committed on my funding commitment letter (my cap). What should I list on my BEAR -- the cap or the actual amount spent?
The SLD would like you to complete the BEAR with the actual figures of what you spent for the service, and not just list your funding cap amount. For example, if you spent $10,000, and had a 50% discount, you would list $10,000 in Column 14 and $5,000 in Column 15, even if you were only committed $4,000. The reason is that the SLD would like to show how much applicants are actually spending on services and also so they know that you are not just listing the funding commitment amount (the cap), but have actually added up how much was actually spent in each of the 12 months using the actual vendor bills. Unfortunately, they will only reimburse you up to the amount that you were committed.

6) When will I receive my BEAR reimbursement check?
A. After the SLD has reviewed and approved your BEAR, they will mail to you a BEAR Approval Letter, listing the amount of your check. Your check is mailed to your service provider within 20 calendar days of the date of the approval letter. Service providers are required to mail you a check for the same amount within 20 calendar days of receiving the check from the SLD. And if the past is any indication, the BEAR Approval Letters are mostly being issued within 10-20 days of their receipt at the SLD.

7) What if I receive my BEAR Approval Letter and it lists that $0 was approved?
A. This typically means that there was an error made on the BEAR Form and the applicant must correct the error and resubmit to the SLD. Many years ago, the SLD reached out to the applicant to correct the Form over the phone, but no longer. Now the SLD will "pass zero" the BEAR (meaning they won't fund it), but it doesn't mean the E-rate funding is gone. It simply means that the applicant must resubmit the BEAR with corrected information and typically there is an explanation on the BEAR explaining what was incorrect to help identify the error.

8) What if I actually received a slightly different service than what was originally listed on my Item 21 attachments?
A. The SLD has increased scrutiny of the BEARs to make sure that reimbursement requests are for exactly what services were approved for on the FCDLs and Item 21 attachments. If you changed services during the 2010-2011 funding year from what you originally listed on your Item 21 attachments, you should first seek a "correcting service substitution request"from the SLD. The instructions for submitting a service substitution can be found at:
http://www.sl.universalservice.org/reference/ServiceSub.asp

9) What is the deadline to submit the BEAR for non-recurring services?
A. For non-recurring services (mostly priority 2), the deadline to submit the BEAR is 120 days after the last date to receive service (October 28), making the deadline January 28, 2012. (The exception to this is if you received your funding commitment letter on or after March 1, 2011... in which case you have an extra year to receive the service/equipment.) Again, if you have received the equipment, file your Form 486, and then promptly file your BEAR to seek reimbursement if your invoice was not discounted by the service provider. Don't wait until January 2012 to seek reimbursement.

10) What should I do if I didn't use the service?
A. File a Form 500 and cancel the FRN. The easiest version to use is available at: http://www.e-ratecentral.com/formsRack/app/Form500.asp.

Questions? Please contact us at 620.724.6281 or brad.stefanoni@greenbush.org or denise.grasso@greenbush.org, or contact the Kansas E-rate Hotline at 1-866-372-8302 for assistance!

BEAR Form 472 Instructions

Check out this site for instructions for filing BEAR forms: http://www.e-ratecentral.com/applicationTips/472/default.asp