The Schools and Libraries Program of the Universal Service Fund, commonly known as E-Rate, makes discounts available to eligible schools and libraries for telecommunication services, Internet access and internal connections. The program is intended to ensure that schools and libraries have access to affordable telecommunications and information services. The program is administered for the FCC by the SLD (Schools and Libraries Division), an independent nonprofit established for this purpose.

Discounts for support depend on the level of poverty and the urban/rural status of the population served and range from 20% to 90% of the costs of eligible services. Eligible schools, school districts and libraries may apply individually or as part of a consortium—refer to the chart below to learn about more about eligibility.

Applicants must provide additional resources including end-user equipment (e.g., computers, telephones, etc.), software, professional development and the other elements that are necessary to utilize the connectivity funded by the program.

E-Rate Eligibility

The following entities are eligible for E-Rate discounts: elementary and secondary public schools, nonprofit elementary and secondary parochial and private schools (with endowments under $50 million), public libraries and many private nonprofit libraries accessible to the public.

The following matrix shows how schools and libraries can benefit from the E-Rate program:

All eligible products and services under the E-Rate program fall into one of three categories: "Telecommunications," "Internet Access," and "Internal Connections." Both the "Telecommunications" and "Internet Access" categories are considered Priority One services and are fully funded every year. Since eChalk offers "Email" and "Web Hosting" services, it qualifies for discounts under the Priority One "Internet Access" category. Like many providers, there are components of each eChalk service level that are not considered eligible under the E-Rate program. For the purposes of E-Rate eligibility calculations for eChalk solutions, eChalk factored out the ineligible components of our services through an SLD-approved cost allocation process:

• Anytime Package (includes the 3 below): 94% eligible for E-Rate discounts
• ClassView Package (includes the 2 below): 94% eligible for E-Rate discounts
• PLC Package (includes the 1 below): 94% eligible for E-Rate discounts
• Webvantage Package: 80% eligible for E-Rate discounts

Applying for E-Rate Discounts for "Email" and/or "Web Hosting" Service

In order to receive E-Rate funds, applicants must file three separate forms annually with the SLD. A basic overview of the process is outlined below.

STEP 1: File Form 470 (Roughly July through January)

The first step in applying for E-Rate funds is to submit a Form 470 which describes the services your school or district is interested in purchasing. Your completed Form 470 will be available to service providers so they can provide a quote for services and follow up with additional questions.

If you wish to receive a proposal from eChalk or other vendors providing similar services, simply enter  "Email Service" and "Web Hosting" service in the lower part of Block 2, Box 9, along with the total number of users and school sites you wish to cover. Don't forget to indicate whether or not you will be releasing an RFP by checking the appropriate box in Box 9. Below is an example of what a completed Form 470, Block 2, Box 9 might look like:

After filing a Form 470, you must then wait 28 days before moving on to Step 2. This 28-day waiting period allows vendors to bid on the services you've requested. During this time, you are obligated to consider any and all proposals that you may receive from vendors. Applicants should evaluate each proposal using a well documented process.

STEP 2: File Form 471 (Roughly December through mid-February)

Once 28 days have passed since you submitted your Form 470, you may then sign a contract with the vendor you have chosen. NOTE: Your contract should contain a contingency clause that nullifies the agreement should your E-Rate funding not come through for whatever reason.You will need to sign a contract with that vendor BEFORE you file your form 471. Once a contract has been signed, you can then file a Form 471 which details all of the services you've chosen to implement and names all of the vendors that will be performing the work. If you were to select eChalk for "Email" and/or "Web Hosting" service, for example, your Form 471 Block 5 would look similar to the one below:

In naming vendors on a Form 471, you will need to provide their E-Rate Service Provider Identification Number (SPIN).

eChalk's SPIN is: 143020189

eChalk's FCC Registration Number (FRN) is: 0011589322

PIA Reviews (Ongoing)

Almost all applicants will receive questions from one or more reviewers at the SLD. These reviewers work on a team called Program Integrity Assurance (PIA). Their job is to review applications and ask questions to clarify information or to gather additional information from the applicant. It is critical that you respond to any and all requests from the PIA team in a timely manner. If you fail to do so, your application is in jeopardy of being denied. If you need more time to answer any questions, you can always request an extension.

FCDLs Issued (Ongoing)

Once the PIA team has reviewed your Form 471 and funds have been allocated for that program year, you will then receive a Funding Commitment Decision Letter (FCDL) specifying which components of your application have been funded and which have been denied. If your funding request has been approved, you may then begin to implement services. If your application has been denied, you will have 60 days to appeal that decision.

STEP 3: File Form 486 (July and Beyond)

Once you receive an FCDL approval and service has begun, you must then file a Form 486 which informs the SLD that disbursement of funds can begin. If eChalk was named on your Form 486, Block 3 would look similar to the one below:

Bid Evaluation

According to the Schools and Libraries (SLD) website, applicants are required to consider all bids received and to evaluate those bids based on a clearly documented process. The SLD requires that the price of the eligible products and services is the primary factor and that it is given more weight than any other category when evaluating bids. However, price does not have to be the sole factor considered. The SLD encourages applicants to create a matrix to use when evaluating bids. Below is a sample matrix provided by the SLD:

Additional information can be found at: http://www.universalservice.org/sl/applicants/step04/construct-evaluation.aspx

Getting Help With E-Rate

From the Schools and Libraries Division (SLD):

The SLD's Client Service Bureau is available to answer questions about the E-Rate program as well as the application process. The toll-free SLD number is 1-888-203-8100 and the toll-free fax question line is 1-888-276-8736. You may also obtain documents using the SLD's toll-free fax on demand service at 1-800-959-0733. For up-to-date information on E-Rate and to file applications online, visit the SLD's Web site at: http://www.universalservice.org/sl/.

From Your State Department of Education:

Every state department of education has an E-Rate expert on hand to assist you with questions.

From eChalk:

eChalk makes every effort to ensure this information is accurate and up to date. However, changes to the E-Rate program are frequent and may occur at any time. We do not make any claim that this information is complete. Only the Universal Service Administrative Company is authorized to determine the eligibility of products and services or to speak on behalf of the E-Rate program.

eChalk will provide as much E-Rate assistance as allowed under program rules. Our experts can offer general guidance on these rules and the application process; however, we cannot assist in areas such as filing the Form 470 or the competitive bid process. Once you have chosen a vendor, however, that vendor can then assist with many remaining aspects of the process.

For more information about applying for eChalk's services under the E-Rate program, please contact us by calling 800-809-3349 and ask to speak with an E-Rate specialist.

Other Resources:

eSchool News E-Rate Survival Guide: http://www.eschoolnews.com/media/erate/eRateGuide1107.pdf

E-Rate Central Application Tips and Guides: http://www.eratecentral.com