Basic E-Rate USF Information

Owned by Josh Hiner
Last updated: Oct 27, 2024
15 min read

Basic Info

REMC1 USF Vendor Info

SPIN: 143004434Regional Educational Media Center 1

CCISD BEN Information

  • Because I always forget: 131775

Erate Changes

2024-25

  • Change number 1 for C1: FCC OKs E-Rate Rules for Wi-Fi Hotspots "The Federal Communications Commission has approved final rules to enable schools and libraries to use E-Rate program resources to loan out Wi-Fi hotspots to students and library patrons who don’t have a reliable internet connection at home. The E-Rate program provides discounts to assist schools and libraries in obtaining affordable telecommunication devices and internet access."
    • As of 8/15/2024 there is filing guidance. I have added a section under eligible services.

2023-24: 

All positive changes

  • Change number 1 for C1: If 90% of requested IA (internet access) is used for eligible purposes, the remaining ineligible use will be considered ancillary and, therefore, cost allocation is not required. This means if you have health services, police/security services etc... in-eligible organizations hosted inside your school buildings utilizing your network and internet access "Thats ok" as long as they dont make up more than 10% of your internet bandwidth.
  • Change number 2 for C2: For category 2 internal connections (network cabling in your building(s) on your campus): Previously if you had ineligible items (HVAC, cell phones, security cameras, door card readers etc..) attached to your "USF/E-rate funded Category 2 internal connections wiring" you had to cost allocate out any wiring drops from erate funding. This was RIDICULOUS because *clearly* all those items serve an educational purpose/support education in some way. THIS HAS BEEN CHANGED! This means: You no longer have to cost allocate those drops as long as 90% of a school's network connected equipment IS eligible.
  • Change number 3 for C2: Cost Allocation of NIF (non-instructional facility) usage of Category 2 equipment is no longer required!! This means that any equipment purchases funded by Category 2 internal connections erate funding does not have to be cost allocated if you install it in a NIF/Non-instructional-facility (a building where no instruction takes place including rented spaces).
  • Change number 4 for C1: Bus wifi is approved and on the eligible services list. Its recommended to file bus wifi on its own 470. You don't NEED and rfp but the 470 still requires you to say yes to RFP and upload a file. The file you upload should contain narrative on the geographical area you need coverage in, how many buses, and if you are seeking/needing equipment to be included. You will want bus wifi on its own 470 and they also say its own 471 as well (to avoid issues). Here are very clear guidances on filing for bus wifi including what options to select on the 470.
  • Proposed change for C1: E-rate THREE YEAR Cybersecurity pilot. E-rate is considering funding cybersecurity product via the e-rate process as well as advanced firewall services (webfilter, ids, ips, application control etc..)
    • Pilot is for 2024 to 2027
    • If you sign up to participate in a consortium you cannot ALSO participate individually.

USAC Mailing lists

Important Links worth standing out

Eligible Services

Un-Eligible Equipment Manufacturers List (national security blocks)

READ!! Detailed explanation of Cat 1 and Cat 2 eligible Services

How to calculate CAT 2 budgets as of 2019 - 5y CAT2 budget renewal rhythm

  • As of 2019
  • 167 per full time student OR a minimum of 25k per school. Whatever is the larger amount.
  • CAT 2 budgets are on a 5y cycle as of 2019 so 2021-25, 2026(budget renews)-2030 so on and so forth. Every 5 years the per-school/library budget renews based on the formula
  • Info here condensed: https://e-ratecentral.com/Resources/Category-2-Budgets
  • You can use a hybrid approach as well.. For instance each school in a district can be calculated individually. So if a district has an ES entity and an HS/MS entity (they dont have to be in a different building) and the ES studentx167 count is LESS then 25k you can claim 25k for the ES. If the HS/MS student x 167 is LARGER then 25k then you can use the student count for that building and total 25k for the ES plus (studentx167) for the HS/MS to formulate your total CAT 2 buget etc..etc..

  • USAC hybrid calculation example:

    District 3 has the following schools with more or less than 150 students.
       School 3A         33  students @ the minimum =   25,000

    		School 3B1,806  students @ $167/student = 301,602

    		School 3C    591  students @ $167/student =   98,697

    		School 3D    107  students @ the minimum =   25,000  

More Info on Eligible services for current year

Eligible Services Deadlines for delivery

  • http://usac.org/sl/applicants/before-youre-done/delivery-extension.aspx
  • For recurring services you must receive those services between July 1 and June 30 of the funding year you applied for those services.
  • For Non recurring services like wiring and devices they must be received between July 1 of the funding year applied for and Sept 30 of the following funding year (15 month span).

Quick List of Eligible Services (Accurate as of 2024)

  • Each year an eligible services PDF comes out (its posted on usac's site. Honestly you can just google usac eligible services list)

  • Basics: Category One: Data Transmission Services and Internet Access, and Voice Services. Category Two: Internal Connections, Managed Internal Broadband Services, and Basic Maintenance of Internal Connections

Category 1 (Internal connections, Managed internal connections, Internet, WAN connecting Schools/Libraries to the Internet)
    • Eligible Category One services are listed in the entries for data transmission services and Internet access and voice services. This category consists of the services that provide broadband to eligible locations including data links that connect multiple points, services used to connect eligible locations to the Internet, and services that provide basic conduit access to the Internet.
  1. Bus-wifi
  2. Asynchronous Transfer Mode (ATM) 
  3. Broadband over Power Lines 
  4. Cable Modem
  5. Digital Subscriber Line (DSL)
  6. DS-1 (T-1), DS-3 (T-3), and Fractional T-1 or T-3
  7. Ethernet 
  8. Integrated Services Digital Network (ISDN)
  9. Leased Lit Fiber
  10. Leased Dark Fiber (including dark fiber indefeasible rights (IRUs) for a set term)
  11. Self-Provisioned Broadband Networks
  12. Frame Relay
  13. Multi-Protocol Label Switching (MPLS) 
  14. OC-1, OC-3, OC-12, OC-n 
  15. Satellite Service
  16. Switched Multimegabit Data Service
  17. Telephone dial-up
  18.  Wireless services (e.g., microwave)
  19. Mobile Hot Spots for distribution to students and/or library patrons  (new Summer of 2024 and HAS SPECIAL RULES BEWARE)
Category 2 (internal connections (equipment))
    • Eligible items: Internal connections needed for broadband connectivity within schools and libraries. Support is limited to the internal connections necessary to bring broadband into, and provide it throughout, schools and libraries for educational purposes only.
  1. Access points used in a local area network (LAN) or wireless local area network (WLAN) environment (such as wireless access points) 
  2. Antennas, cabling, connectors, and related components used for internal broadband connections 
  3. Caching
  4. Firewall services and components separate from basic firewall protection provided as a standard component of a vendor’s Internet access service.
  5. Switches
  6. Routers
  7. Racks
  8. Uninterruptible Power Supply (UPS)/Battery Backup
  9. Wireless controller systems
  10. Software supporting the components on this list used to distribute high-speed broadband throughout school buildings and libraries

Information on filing for Wifi Hotspots

  • Webinar PDF here → Wi-Fi Hotspot Eligibility Webinar.pdf
  • Joshs notes here: Joshs notes on USF USAC Erate 2024 Hotspot Webinar.pdf
  • Its a thing. Theres some reporting requirements outlined in my notes and the webinar PDF. You cant warehouse hotspots. You must discontinue service on a hotspot if its unused for more then 30 days etc..
  • My notes (and the webinar PDF) go over the budget. Its a Category 1 service. 20 hotspots per 100 students. 15/mo for service and 90/device cost cap. You cant spend more then 45% of the budget every year. The school is responsible for 100% of any costs over the caps.
  • You must publicly post an Acceptable Use Policy which includes for ed use only. There is NO guidance on whether it can be posted only online or if you have to have it on a wall/physically too. Probably a good idea to hand it out with each device also. YOU DO NOT NEED TO COLLECT SIGNED FORMS. But (see my notes and webinar pdf) you need to record reporting info on date lent, date received, full name etc..

Information on filing for Category 1 fiber: Managed lit fiber, Leased dark fiber/Leased IRU, Self Provisioned Networks

  • If you are filing for leased dark fiber or fiber IRU you must also file for leased lit managed fiber
  • You must file for fiber maintenance on leased lit (or self provisioned) separately on the 470 also. If you don't your funding will be rejected.
  • Here is a pretty comprehensive guidance. You must be aware of many facts before filing (for the RFP, 470 and bid selection and even service provider responses).
  • 4-4-Fiber-Eligibility-2021.pdf



Applying To E-Rate Steps - Required Items

USF Application process (on the USAC website)

USAC Yearly BASIC process list (short list!! There are many regulations/rules for the 470 and 471 that must be followed)

  1. Request bids for service (File a 470) - Window usually opens beginning to mid september but USAC will post a notice on its website every year (Plus our wonderful state e-rate coordinator sends email notices as well).
  2. For the 470 you must also post an RFP. See below for when an RFP is required. Furthermore there are requirements to seek bids for Managed Lit fiber if you are seeking bids for Dark Fiber. You also must seek bids for Maintenance if you are seeking bids for Dark Fiber. Each Funding item must be line itemed on the 470. You cant just select one item you must have a line item for dark fiber, a line item for managed lit, and a line item for Maintenance (see the PDF below and also see the competitive bidding requirements BEFORE COMPLETING THE RFPS AND 470!!) 
  3. 470 Category One Services Drop-Down Menu Reference Table FCC-Form-470-C1-Dropdown-Table.pdf
  4. Apply for funding (File a 471) YOU MUST ALSO FILE A 471 FOR EACH FUNDING YEAR TO CONTINUE TO RECEIVE DISCOUNTS FOR YEARLY/MONTHLY SERVICE IN THAT FUNDING YEAR. EVERY YEAR FILE A 471 FOR SERVICE.
    1. Leased dark fiber and self provisioned newtorks requirements: https://www.usac.org/e-rate/applicant-process/competitive-bidding/requirements-for-leased-dark-fiber-self-provisioned-networks/
    2. Competitive Bidding: https://www.usac.org/e-rate/applicant-process/competitive-bidding/
  5. File the 471 selecting services. If your 471 has a mistake you may file a RAL to correct certain items such as buildings/locations obtaining service etc. If you have received your FCDL then you must instead file a form 500.
    1. You must file a form 471 EVERY YEAR FOR RECURRING SERVICES!!!!
  6. Wait for the Funding Commitment Decision Letter (FCDL) sometime March to July. Keep an eye out for PIA review items and respond within the timeframe!!! Usually 5 days or file for a response extension.
  7. Start receiving services (File a 486) after July 1. 
    1. The 486 deadline (receipt of services deadline) is no later than 120 days after the Service Start Date or 120 days after the date of the FCDL (Funding Commitment Decision Letter), whichever is later.
  8. Pay for Services and: Invoice USAC and File a BEAR form 472 (Billed Entity Applicant Reimbursement) form. Form filed by applicants seeking reimbursements for bills paid in full, now due a discount.
    1. Many vendors will do service provider invoicing billing bill the BEN directly for the un-discounted portion and then billing USAC directly for the discounted portion. This is the best method and something the district must ask the vendor during vendor selection (but this is NOT grounds for vendor bid rejection alone. I believe it can be a selection criteria though)
  9. If Service costs or requirements change during a contract period you can file a form 500: The Adjustment of Funding Commitment and Modification to Receipt of Services Confirmation form filed by applicants for changes to or cancellation of a funding commitment request.

Vendor Forms

  1. Form 473: The Service Provider Annual Certification form required to be filed annually by participating providers.

  2. Form 474: The Service Provider Invoice Form used to invoice the SLD for the discounted cost of E-rate services delivered and not paid for in full by the applicant.

  3. Form 498: The Service Provider Information Form must be filed to apply for a Service Provider Identification Number.

Evaluating 470 responses and Selecting a Service

  • Many details and more are here. This is a summary. http://usac.org/sl/applicants/step02/default.aspx

  • If you received one bid, and that bid is cost-effective, you should memorialize that fact with a memo or email for your records (Gdocs USF Fund Year XXXX folder for instance).
  • If you did not receive any bids: you can solicit bids. If you currently receive service from a service provider, you can ask your current provider to submit information in response to your FCC Form 470.
  • You decide what factors you want to consider in your evaluation and how important each factor is to you. You can use as few or as many evaluation factors as you like, and you can assign percentages or points to the factors you use to reflect their relative importance. However, you must include the price of the eligible products and services as a factor and that factor must be weighted more heavily than any other single factor.
  • You can score each benefit of a service but Price must be considered as the highest score weight. You can have price as 15, Vendor reputation as 10, Understanding of needs as 10, etc.. etc.. but price just must be the highest point value and documented.
    You can receive services:
    • Under tariff or on a month-to-month basis. Services such as basic telephone service or Internet access may not require a contract. However, you must post an FCC Form 470 and open a competitive bidding process for these services each year.
    • Under a contract. Tariffed or month-to-month services provided under a contract are considered to be contracted services. Eligible products and the upkeep of eligible products are generally provided under a contract. If you post an FCC Form 470 and sign a multi-year contract resulting from that posting, you do not have to post an FCC Form 470 or open a competitive bidding process again for the life of that contract.

Important USF Letters you will receive

  1. Form 470 Receipt Notification Letter ("RNL"): Sent to applicants informing them of the date their 470 was posted to the SLD Web site for bidding.
  2. RAL: The Receipt Acknowledgement Letter sent to applicants and vendors after the applicant or SLD has entered the information from a Form 471 into its systems.
  3. FCDL: The Funding Commitment Decisions Letter informing the applicant of the level of discount that has been awarded on each funding request. This letter is sent to the applicants and vendors

Important Deadlines throughout the filing process

  1. The deadline for receiving services you filed for (recurring and non-recurring) is outlined above in the heading: Eligible Services Deadlines for delivery
  2. Tool for calculating deadlines for each form: http://usac.org/sl/tools/deadlines/default.aspx
  3. The 486 deadline (receipt of services deadline) is no later than 120 days after the Service Start Date or 120 days after the date of the FCDL (Funding Commitment Decision Letter), whichever is later. Filing late can result in a reduction in funding; the later the filing date, the greater the reduction. YOU HAVE TO FILE A 486 FOR EACH FRN TO RELEASE THE FUNDS. CAT 2/EQUIPMENT ETC.. ANYTHING NOT JUST INTERNET. Look at the top of the page for the FRN search tool etc. You can search by BEN to see what FRN's a school has to advise them on what they need to file a 486 on
  4. 471 deadlines seem to change every year. In 2017 it was 5/11. In 2016 it was 7/27 etc.
  5. 470 is the same way. Changes year to year and has been anywhere between Jan 1 and and April. 470 window usually opens beginning to mid September but USAC will post the start date yearly on its website in early fall.

Operating as a Consortium

  • Current Consortiums (as of 2022/2023 funding year): CCISD (Houghton Schools is the lead because the CCISD is a SPIN/Vendor and cant be), GOISD (goisd is the lead), MARESA (MARESA is the lead), DIISD (DIISD is the lead). Believe MCISD is a consortium with MCISD being the lead.
  • CCISD consortium specifics: All schools are a member except for CIA, Baraga, Elm River, Arvon and Grant (as well as Sacred Heart) as of 1/2023.
  • Moving forward all ISDs are forming consortiums for their WAN and internet contracts. DSISD to follow in the future.
  • The consortium lead collects LOA, and 479's from EVERY CONSORTIUM MEMBER and the consortium lead files the 486 and 479's on the same normal schedule explained above.
  • The bill for the unreimbursed portion goes to only the consortium lead. The consortium lead pays the bill to the CCISD/REMC1 and the consortium lead itself collects the funds from each consortium member. The CCISD/REMC1 plays no part in that piece.

Eligible Site Types BEN/School/Library- NIF - Annex

  • We know schools and libraries are eligible.
  • What about buildings that are separate from the schools property?
  • How a school is setup in CEPI/EEM will also drive how its added to USF or if it is eligible for a BEN
  • You can search CEPI by school ID or zip code to find more information on how its listed https://cepi.state.mi.us/eem/entitysearchquick.aspx

BEN (Billed Entity Number)

  • Info on BEN's here https://www.usac.org/e-rate/applicant-process/before-you-begin/entity-numbers/
  • To be a BEN: In CEPI/EEM it must (be listed and have an entity ID) it must also have a school ID OR be a NIF (I guess somehow NIF's can be a BEN idk but ignore that for now)
  • Schools: full/part time students, eligibility numbers for National School Lunch Program (NSLP) and Community Eligibility Program (CEP), State School Code and State LEA code
  • Fact Check but believe GOISD does this: ESA's that dont provide education directly can use the sum total of all their constituent students and average discount rate between all their LEA's

NIF - Non-Instructional Facility

  • A School owned or leased building or location that houses school administrative, business or service staff where NO education occurs can be added to a districts EPC profile and receive discounted service the same as school buildings.
  • The GOISD has a GCC location with two classrooms and and office room. They teach eligible secondary ed classes to eligible FTE/Students five days a week for two or three hours a day (It doesnt matter if the students are already counted in their home districts for USF. ESA's can count them as full time or part time). They would be considered an annex. Unfortunately in CEPI/EEM this location has its own entity ID but no school ID (you need a school ID to be a BEN so this location cant be a BEN). Furthermore since they have their own entity ID and do not operate under the GOISD's entity ID nor the GOISD CTE entity ID they cannot be an annex. Finally... right in their EEM definition they name the location as a non-instructional facility (years ago it used to be but certainly not now with teaching going on). As of 2023 the GOISD is forced to report that site as a NIF. GOISD is looking into fixing this listing in the EEM over time if possible.

Annex

  • A School owned or leased building or location that houses areas where teachers provide instruction to any eligible student (of that districts school or any other eligible school in the case of an ESA/Educational Services Agency (an ISD in Michigan)
  • An annex must operate under the school ID of its parent school. If it doesnt then its not an annex.
  • An example of an annex is the CCISD's CTP program building above the auto parts store in Houghton.
  • Another example of what SHOULD be an annex is the GCC office and classroom locations at the Ironwood GCC location. (read the NIF section above for more details). It doesnt matter if the leased space is located in a college.

Changing a previous filing (delivery dates, service substitutions, extensions)

  • If you want to change 471 services such as cancelling an FRN etc and you have NOT received a FCDL then you file a RAL in epc
  • If you DID receive a FCDL then you file a form 500
  • Form 500 instructions: FCC-Form-500-instructions.pdf
  • There are conditions where extensions are automatically made without the need to file a form 500. Those are gone over the in the PDF above.
  • If you are simply reporting start of service or changing the service start date on a FCDL then you file another 486 and/or follow other instructions. The service start date cannot be before July 1 of the current funding year. You cannot file for a new service start date until you have received your Form 486 Notification Letter from USAC as you must reference that letter on the Form 500. See page 5 Block B item 6 on the Form 500 instructions PDF above.
  • File a form 500 to file for an extension regarding non-recurring services installation (if installation will happen after the deadline or if installation will take longer then the deadline) There are guidelines and limitations to this. See page 5 item 8 in section B of the fcc form 500 instructions above.
  • To adjust contract dates on a 471
  • For moving equipment within a 3y freeze on moving equipment if a building is eliminated
  • For service substitutions (for instance replacing a 48 port module with a 58 port module)
  • Cancel an FRN (funding request number)
  • Reduce an FRN
  • You can file one form 500 with multiple different unrelated changes or do one Form 500 for each FRN
  • You will get an applicant and service provider version of an acknowledgement letter in EPC when they process the Form 500

Prerequisites

  1. Must have filed a 486, received your Form 486 Notification Letter from USAC and finally received a FCDL (Funding commitment decision letter) on the FRN or they will disregard/throw out your form 500.
  2. For non recurring services you must submit the form 500 before Sept 30th of the following funding year (this is the normal deadline for receiving non recurring services, the 15 month window)

Important E-Rate/USF Numbers

  1. Entity Number often called BEN (billed entity number: A number assigned to each entity applicant used to track applications for that applicant at SLD. Often called the billed entity number.
  2. Form 470 Number: A 15-digit number (formerly the Universal Service Control Number) assigned to all Form 470 applications filed with the SLD.
  3. Form 471 Number: Assigned to each Form 471 filed after data entry and used to track the 471 at SLD; can be up to ten digits.
  4. FRN: A Funding Request Number is assigned to each item in Block 5 of the Form 471 and is described in the Funding Commitment Decisions Letter.
  5. SPIN: A unique nine-digit number given to service providers after submitting Form 473 and needed by applicants for completion of the Form 471.
  6. Applicant-Created Identifier: A unique number assigned by the applicant on SLD forms.

Look up District RFP's at USAC to see what was posted

Rural Health Care Program - Also administered by USAC


Glossary of Terms

  • CSB - Customer Services Bureau. E-rate folks may request a CSB ticket which means you submit a ticket in the Erate Productivity Center (EPC) regarding they item in question. For instance... if your 471 has sat for months with no response or review the Erate coordinator may request a CSB ticket be initiated by the district(s) and then request the ticket number.
  • Detailed Glossary of Terms: SL-Glossary-of-Terms.pdf
  • Summary: EPC-Erate-Glossary-of-Terms.pdf