Information for FY 2010 (E-rate Yr 13) PEPPM E-rate Purchases

Important:  Although the PEPPM contract was set to expire in 2009, it was unexpectedly extended until December 31, 2010.  The new PEPPM contract will be competitively bid in the fall of 2010, and will begin anew January 1, 2011.  Because there will be two PEPPM contracts in existence in the same E-rate funding year (July – Dec 2010 and Jan – June 2011), and we do not yet know which vendors will be awarded the 2011 PEPPM contracts, there are special State Replacement Contract procedures that applicants must use when filing for E-rate for Funding Year 2010.    Please read this message carefully.

Background
As you know, the only way an E-rate applicant can submit a Form 471 without first competitively bidding the E-rate eligible service/item using a Form 470 is when another entity submits the 470 on the applicant’s behalf. Such is the situation with the state's PEPPM contract for internal connections and maintenance (www.peppm.org/pa/default.htm).  The PA Department of Education files Form 470s to align with the official procurement process to competitively bid the PEPPM contracts.

Schools (both public and nonpublic) and libraries that would like to purchase and take receipt of an E-rate eligible item from PEPPM on or after July 1, 2010 may simply file one form, the Form 471. The Form 471 filing window is currently open and thus Form 471 applications may be submitted immediately. The final day that applications can be postmarked or submitted and certified online for Funding Year 2010 is February 11, 2010.  The pertinent E-rate information needed for the Form 471, Block 5 is listed below.

The SLD requires binding contracts for all services or equipment, with the only exceptions being for one-year tariffed or MTM services, or where state master contracts (such as PEPPM) are being used. In the cases where PEPPM is being used, the SLD does not require a separate contract or purchase order to be issued before the 471 is filed because the PEPPM contract IS the contract. Therefore all of the information below is based on the PEPPM contract, not on your local contracts/purchase orders. Purchase orders, however, must be issued in order to actually order the products (on or after July 1, 2010).

PEPPM Procedures for FY 2010 Form 471 Filings
The PEPPM contract expires December 31, 2010 and the new PEPPM contract will begin January 1, 2011.  Because any purchases made for E-rate must be based on currently signed contracts, and no contract yet exists for the period of January 1, 2011 - June 30, 2011, the SLD has instituted a State Replacement Contract Procedure that must be used on your Year 13 Form 471s if you will be purchasing any services or equipment from PEPPM in the second half of the funding year (from January 1, 2011 - June 30, 2011).

FOR RECURRING SERVICES (SUCH AS BASIC MAINTENANCE) FROM PEPPM:

You must file 2 FRNs on the same 471.  

-- FRN # 1 should list the PEPPM information as you normally would, which will provide 6 months worth of funding.  To obtain the correct Form 470 number, allowable contract date, and contract award date for the product line you are purchasing from, click the PEPPM 2010 Product List and E-rate Contact Information link at the bottom of this page.

-- FRN # 2 should use the same information as FRN #1, with these exceptions:

SPIN:  143999999 (State Replacement SPIN)
Contract Award Date:  01/01/2011
Service Start Date:  01/01/2011
Contract Expiration Date:  06/30/2011 
Contract Number:  [Use appropriate Contract Number from Chart]

FOR NON-RECURRING SERVICES (SUCH AS EQUIPMENT PURCHASES) FROM PEPPM:

You have 3 choices. 

Choice 1)  If you will be purchasing this equipment and it is NOT contingent upon E-rate (thus assuming you'll be purchasing it between July 1, 2010 and December 31, 2010), you should file 1 FRN using the instructions provided in FRN # 1 above.  Note:  If you do this, the equipment MUST be purchased before December 31, 2010.

Choice 2)  If this purchase IS contingent upon E-rate funding and you will NOT be purchasing it until after January 1, 2011, then you should only file 1 FRN using the instructions provided in FRN # 1 above, with these exceptions: 

SPIN:  143999999 (State Replacement SPIN)
Contract Award Date:  01/01/2011
Service Start Date:  01/01/2011
Contract Expiration Date:  06/30/2011 
Contract Number:  [Use appropriate Contract Number from Chart]

Choice 3)  If you truly don't know which half of the funding year you will purchase your PEPPM equipment, you should file 2 FRNs using the identical procedures as described for the Recurring Services (above).  The only exception is that you would request full funding for the equipment under both FRNs (you will eventually cancel one of the FRNs when you know which half of the funding year you will be purchasing the equipment). 

Important Notes: 

* If you include a State Replacement Contract FRN, it must go on the same 471 as the matching PEPPM FRN.  If you already hit submit, please do another 471, listing both of the affected FRNs on the same 471 and then when the RAL arrives for the previously-posted 471, cancel the original FRN.

* If you use the State Replacement Contract FRNs, either for recurring services or for non-recurring services, you will be required to take additional steps after the new PEPPM contract has been signed and after you have received your funding commitment decision letter.   Julie Tritt Schell, PA E-rate Coordinator, will send out those procedures to the listserve as soon as the PEPPM contract has been signed (around November 2010).

The SLD's official State Replacement Guidance can be found at: http://www.universalservice.org/sl/applicants/step04/state-replacement-contracts.aspx.  If you have any questions, please let Julie know.  The PEPPM staff also are available for assistance with filing of these FRNs by calling (570) 523-1155 x2144.

Applicants should complete the Form 471 online (www.sl.universalservice.org/menu.asp) using the “Create Form 471” option. To view the individual pricing information for the new PEPPM vendors, go to http://www.peppm.org/pa/default.htm and click on the Product Line you seek on the left toolbar. 

If you have any questions, please don't hesitate to contact Julie Tritt Schell, PA E-rate Coordinator, at jtschell@comcast.net.

* FAQs for PEPPM Form 471 Filings *

Are we required to sign contracts with vendors before we submit the 471?
No, you are not required to sign a contract prior to the submission of the 471 if you are purchasing from a State Master Contract because the SMC is the contract. But you may want to document your choice by sending an e-mail or letter to the service provider indicating that you have submitted an E-rate request for discounted services/equipment for FY 2010.

Should we issue a purchase order? If so, when?
Purchase orders must be issued in order to actually order the products but this should be done on or after July 1, 2010. If your purchase is contingent on E-rate funding, a purchase order should be faxed AFTER your funding commitment decision has been made by the SLD, or after July 1, 2010, whichever is later. If you would like to purchase equipment regardless of E-rate approval, you should submit your purchase order to PEPPM anytime after July 1, 2010. When your E-rate approval is received later, you can then simply seek reimbursement using a BEAR form.

The P.O. should clearly state that this is an E-rate item, and include the Funding Request Number (FRN) pertaining to that piece of equipment. In addition, if the P.O. is issued after a funding commitment decision is issued by the SLD, the P.O. should specifically state whether you would like to receive a discounted invoice (where you would just pay the non-discounted portion and the vendor would seek reimbursement from the SLD).

What information should we use if we posted our own 470, but now would like to purchase from PEPPM?
If you posted your own 470 for equipment and are purchasing that equipment from PEPPM, you must have a binding contract before submitting the 471 (this can be a PO signed by the District and the vendor, listing that it will not be effective until at least July 1, 2009) or it can be a memo signed by the District, listing the equipment, quantities, prices, and effective dates. Essentially, the SLD believes that if you post your own 470, you are taking the state contract price as one of the bids, which is different than relying on the PEPPM contract entirely.