Tips for E-rate Contracts and RFPs

The following are unofficial, information tips and suggestions for your RFPs and contracts that have been gained over the years from your experiences.

Include product or service upgrades in contract

The SLD has very strict rules regarding upgrading service or products. If your original Form 470 request for services AND your contract include language such as, “X service or faster” or “Y component or upgrade”, making such changes in the middle of a contract is much easier.

Non-E-rate Funding Out Clauses

If you cannot afford to pay 100% of your contract without E-rate discounts, or if you do not want the service unless you receive E-rate discounts, then you should be certain to include an “out clause.” Such a clause would include language stating that if you do not receive all of your E-rate funding request, the contract is null and void at the discretion of the applicant.

Red Light Rule

Applicants should require vendors to certify in their bid response that the vendor is not the subject of the FCC’s Red Light Rule, which means that they do not have any obligations outstanding with the FCC, USAC, or any other federal agency.

Standard Terms and Conditions

Often, vendors will submit a favorable bid, only to have applicants find out later that the terms and conditions of their contract are unacceptable. Require that vendors submit their proposed contract with their bid response, and make them certify that they understand the final contract will be negotiated.

Contract Extensions

The E-rate program allows for contract extensions as long as such terms were included in the original contract AND on the 470/RFP. Further, the first possible date of the end of the contract, not including extensions, must be included on the original Form 471, not the end of the contract that includes extensions. For example, if a school signs a 2 year contract, ending 2007, with a 1 year renewal option, the expiration date should be 2007, not 2008.

Specificity of Contract Language

Be sure to include specific language in your contract regarding the quality of work performed, and the schedule of installation or service. Also, if you want service to begin July 1, state this in your contract.

**Specify Discounts or Reimbursements**

Applicants are permitted the final choice whether to receive discounts on bills or whether to pay their bills in full and submit the Form 472 BEAR to the SLD for reimbursement. Wherever possible, this choice should be established in your contract and 470/RFP to avoid all confusion and to provide the service provider with as much notice as possible.

Payment Schedule

If you have terms and conditions under which you will make scheduled payments, such arrangements should be included in your contract.

Also, if you have a strong opinion about how funds are received (discounted bills or reimbursement checks), this should be spelled out in the contract.

Don’t sign contract before end of 28 days

Pay careful attention to not sign a contract or select a service provider before the end of the 28 day 470 waiting period. The contract and the 471 application (Item 18 Contract Award Date) must be signed on or after the Allowable Contract Date (Item 17) which is basically the 29 th day after the corresponding 470 is posted on the SLD’s Web site.

Contract Expiration Dates

Recurring Services: Every attempt should be made to make sure that contracts do not expire before the end of the upcoming year (June 30, 2006). Funding is only provided for services received prior to the Contract Expiration Date. In addition, many schools and libraries have taken advantage of the multi-year contract option which allows them exemption from the 470 posting for the remaining years of the contract. Even with multi-year contracts, be certain they end on June 30.

Non-Recurring Services: Have your contract end September 30 instead of June 30. While the funding year ends June 30, the FCC has ruled that schools and libraries have until Sept. 30 to complete the installation of nonrecurring services. Indicating the Sept. 30 expiration date will alleviate you from having to file a Form 500 to change your date.

Sign separate internal connections/wiring contracts for highest discount schools.

As you know, the program has telecommunications services and Internet access (classified as priority 1 services) and thus they are funded first. Any remaining money will go toward funding internal connections in order of the highest discount applicant first.

Therefore it may be in the applicant’s best interest to apply separately for the highest discount schools. For example, if a high school’s discount is 80% and the elementary school’s discount is 90%, it may benefit the school to apply for the internal connections services separately than the high school because that site has a higher discount, and thus may stand a greater chance of being funded.

Bidding According to State Law

Public education entities: Be certain that if items requested on the 470 are required to be bid under state law, that you post these items for bidding advertisement at the same time. Competitively bidding on the SLD website does not exempt you from bidding at the local level according to the school code.

SAMPLE RFP E-RATE-RELATED LANGUAGE

In addition, below is suggested language to include in RFPs for E-rate-related services.

Proposers submitting proposals under this RFP must agree to meet the following conditions relating to the E-rate program:

Contract

The Proposer must agree to execute a service agreement (contract) on or before xxx date. Proposer must agree that the parties’ contract will reflect the terms and conditions that are mutually agreed upon by the District and Contractor.

Service Provider Identification Number (SPIN) and FCC Registration Number (FCCRN)

The Proposer shall provide a valid E-rate SPIN number (Service Provider Identification Number), in the Proposal submitted in response to this bid opportunity. The SPIN must be recognized by the SLD and FCC an eligible telecommunications provider and therefore qualified to receive discounts under the Telecommunications Services bucket of the program. The Proposer also shall provide the company’s FCC Registration Number. (Please note: the eligible telecom provider language is only applicable if the RFP is for telecommunications services.)

Service Provider Annual Certification Form

The Proposer agrees to timely submit to the SLD a completed Form 473, Service Provider Annual Certification form, which provides updated contact information to the SLD for the Proposer. The Proposer must also agree to provide a copy of the completed Form 473 to the Owner. This form is available on the SLD’s website at www.sl.universalservice.org in the Forms section.

Discounted Bills

The Proposer agrees to submit discounted bills to the District with no additional administrative expense charged to the District and to submit invoices to the SLD for the discounted portion funded through E-rate.

Cooperation with District’s Preparation of E-rate Applications.

The Proposer must agree to provide information on a timely basis that the District requests in order for the District to timely apply for E-rate applications.

Separate Itemization of E-rate Eligible and Ineligible Products and Services

The Proposer shall separately itemize the cost of E-rate eligible and ineligible products and separate installation costs, if any. To determine what items are eligible, visit the E-rate Eligible Services List at: www.sl.universalservice.org/reference/eligible.asp or call the SLD at 888-203-8100.

Compliance with E-rate Contract Signing Rules

The Proposer must acknowledge in its Proposal that the Proposer will make every effort to have any contract addendums that may arise from this RFP signed in accordance with the E-rate contract signing rules. Further, the Proposer must acknowledge in its Proposal that if the contract or addendum is signed outside of the E-rate contract signing window, the Proposer will disclose to the District, before soliciting the District’s execution of the contract, that the contract is not eligible for E-rate funding.

Non-Collusion Affadavit

The Proposer shall execute an Affidavit of Non-Collusion in the form prescribed by the District to confirm that the Proposer is not in violation of the anti-bid rigging state law provisions of the Commonwealth Procurement Law, or in violation of the Federal Communication Commission’s Fifth Report and Order, as codified in 47 C.F.R.

 

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