Attachment A - E-rate Supplemental Terms and Conditions B-53292.docx

ATTACHMENT A

E-RATE SUPPLEMENTAL TERMS AND CONDITIONS

Signed copy to be returned with response.

Identifiers Illinois Department of Innovation and Technology (“DoIT” or “Applicant”) Bidder (“Service Provider”)

The Telecommunications Act of 1996 established a fund by which Schools and Libraries across the Country could access discounts on eligible telecommunications products and services. The program is commonly known as the E-rate Program. The eligibility for discounts on internet access, telecommunications products and services, internal connection products, services and maintenance is determined by the Federal Communications Commission (FCC). Funding is made available upon application approval by the Schools and Libraries Division (SLD) of the Universal Service Administrative Company (USAC), which was established by the Act. The amount of discount is based on the numbers of students eligible to receive free and reduced-price meals using the USDA’s National School Lunch Program eligibility guidelines or another approved alternative measure of poverty.

SERVICE PROVIDER REQUIREMENTS

The Applicant expects Service Providers to make themselves thoroughly familiar with any rules or regulations regarding the E-rate program.

Service Providers are required to have E-Rate expertise relative to managing compliance with FCC rules and USAC procedures particularly as it relates to invoicing.

Service Providers are required to be in full compliance with all current requirements and future requirements issued by the SLD throughout the contractual period of any contract entered into as a result of this IFB.

Service Providers shall have a valid Service Provider Identification Number (SPIN) from the Universal Service Fund’s Schools and Libraries Program throughout the term of the resulting contract. Proof must be submitted prior to contract execution. More information about obtaining a SPIN/Form 498 ID may be found at this website: https://www.usac.org/e-rate/service-providers/step-1-obtain-a-spin/

Service Providers shall have a valid Federal Communications Commission (FCC) Registration Number (FCC RN) throughout the term of the resulting contract. Proof must be submitted prior to contract execution. More information about obtaining an FCC RN may be found at this website: https://fjallfoss.fcc.gov/coresWeb/publicHome.do

Service Providers are responsible for maintaining FCC Green Light Status throughout the term of the resulting contract. Proof must be submitted prior to contract execution. More information about FCC Red and Green Light Status may be found at this website: http://www.fcc.gov/debt_collection/welcome.html

Products and services must be delivered before billing can commence. At no time may the Service Provider invoice before July 1, 2026.

Prices will not increase for the duration of the associated E-rate Funding Year(s) or until all work associated with the project is complete (including any contractual and USAC approved extensions). It is also expected that should pricing for contracted services drop during the term of the contract, the Applicant will realize those cost savings.

Goods and services provided shall be clearly designated as “E-rate Eligible”. Non-eligible goods and services shall be clearly called out as 100% non-eligible or shall be “cost allocated” to show the percentage of eligible costs per SLD guidelines.

In the event of questions during an E-rate pre-commitment review, post-commitment review and/or audit inquiry, the awarded Service Provider is expected to reply within 3 days to questions associated with its proposal.

Services providers must comply with the FCC rules for Lowest Corresponding Price ("LCP"). Further details on LCP may be obtained at USAC's website: https://www.usac.org/e-rate/service-providers/step-2-responding-to-bids/lowest-corresponding-price/ . To the extent that USAC or the FCC finds a violation of LCP and, therefore, makes any type of adjustment to the E-rate Funding, Service Provider agrees to solely bear all costs for the difference in E-rate Funding and the reduction in that funding as a result of the LCP violation.

SERVICE PROVIDER ACKNOWLEDGEMENTS

The Service Provider acknowledges that no change in the products and/or services specified in this document will be allowed without prior written approval from the Applicant and a USAC service substitution approval (with the exception of a Global Service Substitutions).

The Service Provider acknowledges that all pricing and technology infrastructure information in its bid shall be considered as public and non-confidential pursuant to §54.504 (2)(i)(ii).

The Service Provider acknowledges that its offer is considered to be the lowest corresponding price pursuant to § 54.511(b). Should it not be the lowest corresponding price, the service provider must disclose the conditions leading to the applicant being charged in excess of lowest corresponding price.

This offer is in full compliance with USAC’s Free Services Advisory https://www.usac.org/e-rate/applicant-process/competitive-bidding/free-services-advisory/. There are no free services offered that would predicate an artificial discount and preclude the applicant from paying its proportionate non-discounted share of costs. The service provider agrees to provide substantiating documentation to support this assertion should the applicant, USAC, or the FCC request it.

The Service Provider attests that its offer will not violate the FCC’s Reports and Orders in the matter of “Protecting Against National Security Threats to the Communications Supply Chain Through FCC Programs”, WC Docket No. 18-89. Action by the Commission November 22, 2019 by Report and Order, Further Notice of Proposed Rulemaking, and Order (FCC 19-121) and can be found at https://docs.fcc.gov/public/attachments/FCC-19-121A1.pdf. In the Supply Chain Second Report and Order, the FCC adopted a second, additional rule (47 CFR Section 54.10) to implement the Secure and Trusted Communications Networks Act of 2019. More information can be found at https://www.usac.org/about/reports-orders/supply-chain/.

INVOICING

The Service Provider agrees to bill and receive a portion of the payment for the provisions of goods and services described herein directly from USAC via the Form 474 Service Provider Invoice (SPI). The Applicant will only be responsible for paying its non‐discounted share of costs and does not intend to use the BEAR process (Form 472). The maximum percentage the Applicant will be liable for is the pre-discount amount minus the funded amount as shown on the FCC Form 471 Funding Request(s) and any identified ineligible costs. Alternatively, should the Applicant decide that it is in the best interest of the Applicant to file a Form 472, the Applicant will inform the Service Provider of its intent.

All Service Provider invoicing to USAC must be completed within 120 days from the last day of service. Should the Service Provider fail to invoice USAC in a timely manner, the Applicant will only be responsible for paying its non-discounted share.

FCC/SLD AUDITABILITY

The E-rate program requires that all records be retained for at least ten (10) years from the last date of service provided on a particular funding request. Service Provider hereby agrees to retain all books, records, and other documents relative to any Agreement/Contract resulting from this IFB for ten (10) years after receipt of service(s). The Applicant, its authorized agents, and/or auditors reserves the right to perform or have performed an audit of the records of the Service Provider and therefore shall have full access to and the right to examine any of said materials within a reasonable period of time during said period.

I, the undersigned, as an authorized agent of ______________________________ (Service Provider Name), hereby certify that I have read the E-rate Supplemental Terms and Conditions, am fully compliant and intend to cooperate with the E-rate process as outlined above.

Signature: _______________________________ Title: _______________________________

Phone Number: __________________________ Email: _____________________________

Service Provider Name: _________________________________________________________