Tariffed Services
What exactly are tariffed services?
Tariffed services are those telecommunications services that are purchased at prices regulated by the state Public Utility Commission (PUC) and/or the Federal Communications Commission (FCC). The prices, terms and conditions of these service offerings are set forth in tariffs that are on file at the regulatory commission. Normally, basic telephone service and other services provided by a telecommunications provider are considered as tariffed.
Under the E-rate program, tariffed means a service that is provided by a regulated telecommunications provider on a yearly or month-to-month basis, and for which there is NO signed contract.
The SLD does not recognize multi-year tariff arrangements. Under the E-rate program, such arrangements must be considered as contracts (see Multi-Year Tariff Arrangements attached).
How should tariffed services be handled on my Form 470?
All tariffed telecommunications services—like any other service not covered under a pre-existing, signed, written contract—are subject to competitive bidding. Applicants seeking discounts for tariffed telecommunications services must include these in a Form 470 as new services to be posted on the SLD Web Site for competitive bidding for at least 28 days. This 470 posting must be done every year after July 1 of the year in which you are requesting discounts or when instructed by the SLD that it is accepting 470 submission for these services (usually May or June). (For example: if you are seeking E-rate discounts for the program year beginning July 1, 2005, you would submit the 470 on or after July 1, 2004).
How should I handle tariffed services on my Form 471?
After your Form 470 has been posted on the SLD Web Site for 28 days, you can choose to continue to receive tariffed telecommunications services from your current service provider, OR, if you have received another, more cost-effective bid, you may switch to a different service provider.
Complete Form 471, Block 5 as follows:
- Item 11 Type of Service - select ‘Telecommunications Service.’
- Item 15a Contract Number – Check this box.
- Item 16a Billing Account Number – Enter the phone number at the top of your monthly bill.
- Item 17 Allowable Contract Date - This will be the 29 th day after the 470 posting and will be found on your 470 Receipt Notification Letter or on the SLD web site.
- Item 18 Date the contract was awarded – Leave this item blank.
- Item 19 Service Start Date – Enter July 1, 2006. (always use this number for all Year 9 471s unless you are actually having service begin after July 1)
- Item 20a - Date service will end - Enter June 30, 2007.
- Item 20b Contract expiration date - Leave this item blank.
What happens if I don’t receive any bids as a result of my 470 posting?
If you have not received any bids, or, if your current service provider offers the most cost effective service, you may continue to purchase from your current service provider. You should, however, place a memo in your current E-rate file that states that you received no bids relating to that service.
Clarification on Multi-Year Tariff Arrangements
The first and basic premise is that the SLD does not recognize the existence of multi-year tariff agreements. According to their rules and the 471 application, there can only be a one-year tariff OR a multi-year contract.
If it is a one-year tariff arrangement, there is no written contract, and both parties assume that the arrangement ends after one year. If the school or library has agreed to a multi-year tariff (presumably to gain a lower rate and/or to be exempt from 470 postings during the contract period), the SLD considers that a contract, for which there must be a beginning date and an ending date.
Advice for 471 filings:
If the applicant has a one-year tariff arrangement for which no contract has been signed, they should only use a 'T' on the 471 application.
If the applicant has a multi-year tariff arrangement, they have 2 options.
- Consider it a one-year tariff and place a 'T' on their 471, and re-bid that service by posting a 470 annually (in which case all bids must be considered); or
- Contact their service provider to request a signed contract and contract number assigned to the arrangement, and instead of placing a 'T' on the 471 they use the contract number and contract signing dates.
Incidentally, the same rule applies for a contract that has been signed for a one-year tariff. It is considered a contract and not a tariff, and the applicant therefore should NOT use a 'T' on their 471, but instead should use the applicable contract number and signing dates.
Month-to-Month Service Arrangements
Certain services are commonly offered on the basis of a month-to-month arrangement with the service provider. These commonly include Internet access, cellular services and paging services.
Sometimes there is no written agreement between the customer and the service provider; in those instances, standard monthly bills will be accepted as proof of a binding, legal arrangement between the service provider and the customer. (These arrangements are different from tariffed services, which may also be offered month-to-month but at regulated prices.)
How should month-to-month services be handled on my Form 470?
All month-to-month services—like any other service not covered under a pre-existing, signed, written contract—are subject to competitive bidding. Applicants seeking discounts for month-to-month services must include these in a Form 470 as new services to be posted on the SLD Web Site for competitive bidding for at least 28 days. This 470 posting must be done every year after July 1 of the year in which you are requesting discounts. (For example: if you are seeking E-rate discounts for the program year beginning July 1, 2005, you would submit the 470 on or after July 1, 2004).
How should I handle month-to-month services on my Form 471?
After your Form 470 has been posted on the SLD Web Site for 28 days, you can choose to continue to receive these services from your current service provider, OR, if you have received another, more cost-effective bid, you may switch to a different service provider.
Complete Form 471, Block 5 as follows:
- Item 11 Type of Service - select ‘Telecommunications Service or Internet Access’ as appropriate.
- Item 15a Contract Number – Check this box.
- Item 16a Billing Account Number – Enter the phone number at the top of your monthly bill.
- Item 17 Allowable Contract Date - This will be the 29 th day after the 470 posting and will be found on your 470 Receipt Notification Letter or on the SLD web site.
- Item 18 Date the contract was awarded – Leave this item blank.
- Item 19 Service Start Date – Enter July 1, 2006. (always use this number for all Year 9 471s unless you are actually having service begin after July 1)
- Item 20a Date service will end - Enter June 30, 2007.
- Item 20b Contract expiration date - Leave this item blank.
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