Erin Rock, Secretary

STEP 3: LEGALLY BINDING AGREEMENTS AND CONTRACTSContract Rules and Examples

We have…

✓Posted the FCC Form 470

✓Waited 28 days

✓Kept process “open, fair, and competitive” by posting Q&A and other related RFP docs:➢No secrets

➢Every potential bidder has the same info at the same time

➢All’s fair in love and competitive bidding..

✓Restarted 28 day clock for any substantive changes.

PROCESS CHECK

We have…

✓ Evaluated ALL bids

✓ Selected the winning provider.

✓Documented all necessary processes and decisions✓Cost effectiveness

✓Winning and losing bids (including those disqualified)

✓Memorization date of approved bid/contract

✓ If possible, entered into a legally binding agreement…

PROCESS CHECK

4

PLAN FCC 470 EVALS

CONTRACTADMIN

WINDOWFCC 471

PIA FCC 486 INVOICE

What IS a Binding Agreement?

AFTER THE EVAL…

A written offer from a service provider and acceptance from the

applicant that includes all the material terms and conditions and is

legally binding.

After a commitment of funding, an applicant’s receipt of services consistent with the offer and with the applicant’s request for E-rate support

AFTER THE EVAL…Legally Binding Agreements

Offer

A bid for the services that includes all material terms and conditions provided in response to an FCC Form 470.

Acceptance

An email from the applicant telling the service provider the bid was selected.

What is NOT a Binding Agreement?

AFTER THE EVAL…

A verbal offer and/or acceptance will not be

considered evidence of the existence of a legally binding agreement.

WHAT IS AN E-RATE CONTRACT?

A contract under FCC E-rate rules:

– a binding agreement,

– enforceable by law,

– between two or more parties,

– and creates an obligation to do, or not do, something.

WHAT IS AN E-RATE CONTRACT?

Definitions and requirements are contained in each state's or territory's contract law.

“A written agreement or purchase order issued for the purchase of goods or services or a written agreement for the receipt of state or federal financial assistance.” § 215.985(2)(b), Florida

Statutes

EXAMPLES OF TYPES CONTRACTS

• Qualified existing contracts

• Tariffed services provided under contract

• Multi-year contracts or contracts with voluntary extensions

• Non-recurring service voluntary extensions

• Multi-year contracts for newly-eligible services or entities

CONTRACT STANDARDS

Examples of acceptable standards for applicant signature and date in a contract are:

– Applicant handwritten signature and signature date

– Date contract awarded contained in the body of the contract

– Date contract awarded in the opening statements of the contract

COMPLIANCE

• A minimum of a legally binding agreement must be in place at the time a referencing FCC Form 471 is filed.

• Contract and amendments must be executed before services start and preferably before a referencing FCC Form 471 is filed.

➢TIP: Maintain dated record of determinations and legally binding documents.

COMPLIANCEEXAMPLE:

A contract is set to expire on 6/30/2018

BEFORE the beginning of the 2018 FY.

However, the applicant is in the progress of extending the contract through 6/30/2019 (allowed under the contract), but the provider has yet to sign the extension.

QUESTION:

Can the applicant certify the 471 by the end of the filing window?

COMPLIANCE➢See audit checklist

– All related competitive bidding documents.

– Contracts for supported services.

– Amendments or addenda to contracts.

– List of all service providers supplying discounted services including contact information.

➢Additionally, you should have the following available to answer questions: Person who managed the bidding and award process

COMPLIANCEMonth-to-month agreements, while not a contract, are acceptable under E-rate rules and regulations.

➢Require a new 470 each year (no evergreen agreements).

BEST PRACTICE

➢Should be included at the end of ALL contracts to cover any delays during migration. ✓Would require a 470.

COMPLIANCE: STATE MASTER CONTRACTS

• If the state files an FCC Form 470:

– Follow the applicable provisions of the state master contract and state and local procurement laws.

– No separate bidding documents or contracts are required by the applicant citing the state's FCC Form 470, other than what is required by the state master contract and state and local procurement laws.

– The signed state master contract between the state and the service provider meets the FCC signed contract requirement.

COMPLIANCE: STATE MASTER CONTRACTS

• If the applicant files an FCC Form 470 and considers a state master contract as one of the bids:– The applicant must follow a competitive bidding process

pursuant to FCC requirements and state and local procurement law.

– If the applicant selects the state master contract as the most cost-effective alternative, the applicant is required to follow the applicable provisions of the state master contract, state contract law, and state and local procurement laws.

– The signed state master contract between the state and the service provider meets the FCC signed contract requirement.

BEST PRACTICES- SLA’S24.1.2 The VENDOR must agree to timely submit to the SLD a completed Form 473, Service Provider Annual Certification Form, which is a program requirement. The VENDOR must also agree to provide a copy of the completed Form 473 to the <ADD ENTITY NAME HERE>; upon request. This form is available on the SLD’s website at www.usac.org/sl in the Forms section.

Agree ☐ Disagree ☐ Explanation:

25.1.3 The VENDOR must agree to ship and/or deliver, and invoice for any services, goods and/or equipment requested in this Service Request on or after July 1, 2018.

Agree ☐ Disagree ☐ Explanation:

DOCUMENT RETENTION

• Signed and Dated Contracts/ Service Agreements/ Notice of Award Letters

• Contract Amendments/Addendums/Extensions

• State Master Contracts (printout or website reference)

• Vendor Correspondence