Excerpt from PDE Web site

What Schools and Libraries Need to Do

The following is a preliminary list of the steps schools and libraries will most likely have to take in order to apply for the discounts. Currently, the FCC and U.S. Department of Education are working on the application process and have not issued a timeline on when it might be released.

A technology plan must be developed to ensure that the school or library has the ability to use the services once they are purchased. The Pennsylvania Department of Education is exploring the possibility of working with schools to develop a consolidated technology plan that, once submitted and approved, would make the school district eligible for funding under the Educate America Act, Link-to-Learn, Technology Literacy Challenge Fund, the Universal Service Fund, and other funds. Work already done for existing technology plans would be incorporated into this consolidated plan so as to minimize the amount of work required from schools.
The Order indicates that a technology plan must contain a technology assessment that includes:
- Computer equipment currently available or budgeted for the current, next, or future years;
- modems and speed of circuits;
- Internal connections currently available or budgeted for the current, next, or future years.
- Computer software needed for internal communications currently available or budgeted for the current, next, or future years.
- Experience or training received by staff in the use of the equipment and training programs currently available or budgeted for the current, next, or future years.
- Existing or budgeted maintenance contracts.
- Capacity of school or library's electrical system to handle simultaneous users.
The technology plan must be approved by an independent entity, such as the Pennsylvania Department of Education. Library plans will be approved by Commonwealth Libraries within the Pennsylvania Department of Education.
The applicant submits an application to the USF administrator describing the services the applicant wants. The fund administrator on an interim basis is the National Exchange Carrier Association (NECA). It is anticipated the following information will be required as part of the application:
Applicant name
Applicant status (individual or consortium)
Address
County
Number of students
Number of buildings
Contact person
Telephone
Fax
E-mail address
Requested services

An organization can submit more than one request per funding year. Requests must be signed by an authorized person who will certify to the following under penalty of perjury:
- The applicant is a school or library that is an eligible entity.
- The telecommunications services requested by the applicant will be used solely for educational purposes.
- The telecommunications services obtained by the applicant will not be sold, resold, or transferred in consideration for money or any other things of value.
- If the telecommunications services are acquired as part of an aggregated purchase with other entities, the request must identify all partners, plus the services or portions of services being purchased by the applicants.
- Request is fully budgeted. The applicant has fully committed funds during the current funding year to pay for the discounted services as well as any necessary hardware, software, and training required to use and support the services effectively.
- The applicant has complied with all applicable state and local procurement procedures.
- The applicant has an approved technology plan which includes a technology assessment.
- The applicant will maintain suitable records and cooperate with any future compliance audits.
Funding requests are placed in a funding queue based on the date and time received by the fund administrator. These requests are then placed on a web site in order for the applicant to receive bids for the requested services.
Once an application is placed on the web site, the applicant is required to wait at least four weeks before a contract can be signed. During these four weeks, providers offer bids for the requested services. Providers must submit bids which are the lowest price that the service provider charges to similarly situated non-residential customers for similar services. This price is often referred to as the "base price" or "pre-discounted price."
An applicant does not have to comply with the competitive bidding requirement for any contract for services that is signed after November 8, 1996 and before the fund administrator begins accepting applications. If the contract is limited to the provision of services between January 1, 1998 and December 31, 1998, the contract is "pre-existing." If, however, the contract covers a period beyond December 31, 1998, and the contract was signed after November 8, 1996, then the services will have to be competitively bid, in order for discounts to be available on January 1, 1999 and beyond.
The applicant must then select a vendor(s) from the bids they received.
It is important to note that the applicant does not need to necessarily select the lowest bid. Relevant factors other than the pre-discounted prices submitted by providers, such as service quality, prior experience, personnel qualifications, management capability, and schedule compliance should be considered.
When a provider is selected, the school or library submits a second form to the Fund Administrator along with a copy of the contract. This second form indicates the funds anticipated to be needed in order to complete the project. The fund administrator will commit this amount for future payment.
Schools and libraries may enter into multi-year contacts for supported services but the fund administrator will only commit funds to cover the portion of a long-term contract that is scheduled to be delivered and installed during the funding year. Contracts may be structured so that payment is required on at least a yearly basis. Please note that while multi-year contracts are allowed, schools and libraries must reapply for their discounts each year.
Carriers and schools and libraries may seek recourse from the FCC for interstate services and the State commissions, for intrastate services, if either party believes that the bid price is unfair. Information on purchases will be posted to the fund administrator's web site.
Services may begin anytime after January.
Services are completed.
The applicant notifies the fund administrator that the services have been provided and the discounted portion should be paid to the provider. The fund administrator then pays the service provider.
The applicant then pays the service provider the non-discounted price. For example, if a provider offers a service for $1,000 and the school is eligible for a 90% discount, the fund administrator would pay the provider $900 and the school would pay the provider $100.
Schools and libraries must file new funding requests beginning July 1 each funding year for services to be provided after January 1. It is important to realize that discounts cannot be guaranteed in subsequent years. Multiple year discounts are not allowed, which means an application must be submitted each year for requested services.

Reference: Pennsylvania Department of Education's Guide to Universal Service, pages 6-9.
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