The E-rate program provides discounts on certain services and products that are essential for classrooms and libraries to receive voice, video, and data communications. The amount of the discount depends on the level of poverty and location of the school or library receiving service. The discount ranges from 20% to 90% of the cost of eligible services.
The Macon County School System qualifies for a 90% discount of costs of eligible services. The Macon County School System upgraded the network infrastructure in November of 2009, including wireless access points to cover each school. The upgrade cost $1,000,000.00 of which E-Rate paid 90% of the costs.
The E-rate process can be outlined into the following steps:
Develop a Technology Plan
First, before any form is posted or filed, an applicant develops a technology plan. The technology plan must be drafted before any application paperwork is submitted, but it does not need to be officially approved until services start the following year. The SLD has outlined five criteria that must be on a technology plan. The approved technology plan must state goals and objectives, detail a professional development plan, contain a needs assessment, budget and evaluation process. During the creation of the technology plan service providers can give only "technically neutral advice". The technology plan must be approved by a USAC-certified technology plan approver. The applicant must also be able to demonstrate to the SLD it will be able to pay the non-discounted portion of the total price, and that it has this money available.
Procure Services
Next, based on the technology plan, the applicant files the FCC Form 470 to announce that they are seeking E-rate support to purchase eligible goods and services. The applicant will also need to comply with all local and state procurement rules and regulations. The E-rate requirements do not trump local procurement rules, but add a layer of requirements onto the rules already in place.
When the Form 470 is posted to the SLD's website, a 28-day period begins in which interested service providers may submit proposals and bids to provide service to the applicant.
After the 28 day posting period, the applicant reviews the bids and proposals, selects a service provider, and signs a contract or service agreement.
Apply For Funding
Then the applicant submits the FCC Form 471 which tells the SLD which service provider was selected, the goods and services for which the applicant will be requesting E-rate support, and the costs of those goods and services.
Application Review
The SLD will review the application to substantiate that the requests are for eligible services that will be delivered to eligible locations and students/patrons. Once the application has been approved, the SLD will issue a Funding Commitment Decision Letter, or a FCDL.
Receive Services
Applicants receive services during the "Funding Year" (July 1 - June 30). They submit the Form 486 to the SLD to signify that the approved services are being delivered, and that the applicant is complying with the Children's Internet Protection Act.
Realizing Discounts
Finally, the applicant has two means of realizing the benefit of the E-rate program. The first, is to receive discounted billing from the approved service provider (the service provider then bills the SLD for the committed portion of the delivered services. The second is to pay the service provider in full and then apply for reimbursement directly to the SLD.
The E-Rate process does not end with realizing discounts. Internal audits must be performed frequently as equipment is replaced. A current description of all E-Rated funded hardware, including serial numbers and physical location, must be maintained at all times. As with any federally funded program, we may be audited at anytime. If the documented hardware is not at the correct physical location, or cannot be located at all, the funding provided by E-Rate may have to be returned.
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