[OPLINTECH] Important E-rate information re:SOMACS T1 circuits

[Stephen Hedges]

On January 30 I sent out an email about E-rate discounts on AT&T T1
circuits that are purchased for $400 per month from the statewide
SOMACS contract (e.g. to a branch library). I thought then I would
have some definitive information by now about possible changes to
that contract starting July 1.

Unfortunately, I have no "official" news yet, and time is running
short as we approach the February 12 deadline for filing E-rate 471
applications.

Here is what we know at this point --

The state Office of Information Technology (OIT) and AT&T, the
parties to the SOMACS contract, now agree that the SOMACS contract
is not "month-to-month," that the term has been 12 months starting
every July 1 and ending every June 30. AT&T is requesting that when
the contract is renewed this July 1, the term becomes 24 months. If
an existing SOMACS T1 is disconnected before the end of the 24-month
term (June 30, 2011), the customer would owe AT&T 50% of the monthly
rate for the remaining term.

It looks like OIT is going to concede this point to AT&T, but is
also asking that AT&T offer a true month-to-month rate that would
allow customers to cancel the circuit at any time without penalty.
AT&T has offered to provide this service for $450 per month.

In light of these likely changes, we are recommending that you use
the following information on your E-rate Form 471 for SOMACS T1s --

** If you intend to keep your $400 T1 for 24 months **
FIRST, if you can wait until February 11 or 12 to submit your 471
for SOMACS T1s, it would be to your advantage. It looks like the
signing of the new contract is imminent, possibly tomorrow, and if
it happens in time to use the new, correct information, it will save
you the trouble of making changes later. However, if you really want
to file now, or it happens that the contract is not signed in time,
use this information on your application --
SPIN: 143999999
Service provider name: STATE REPLACEMENT CONTRACT
Contract number: SRCSOMACS
Contract award date: July 1, 2009
Service start date: July 1, 2009
Service end date: June 30, 2010
Contract expiration date: June 30, 2010
(see the instructions for "State master contracts expiring before
the funding year" at
http://www.usac.org/sl/applicants/step04/state-replacement-contracts.aspx
and in your Item 21 attachment you can reference 
http://oit.ohio.gov/sdd/contracts/T1Service.aspx as the expiring
contract.)

** If you intend to switch to $450 month-to-month on July 1 **
This option is easier to handle, since most of the information is
what you would expect --
Contract number: MTM
Contract award date:
Service start date: July 1, 2009
Service end date: June 30, 2010
Contract expiration date:
 Just be sure to change your monthly charges to reflect the higher
rate.

IF YOU HAVE ALREADY FILED your Form 471 --
Depending on which option your choose ($400 or $450), there are two
ways to make the changes, both based on the "RAL Funding Requests
Report" that you will receive with your Form 471 Receipt
Acknowledgment Letter. That letter will show a date when your
corrections are due; we recommend that you wait until we have the
new contract information before you send in your corrections.

IF YOU WANT THE $400 option: File a _new Form 471_ prior to the
filing window deadline of 11:59 p.m. EST on Thursday, February 12,
2009; put ~only~ the SOMACS Funding Request on this new application.
Then when you get your RAL Funding Requests Report for the old Form
471, check the option to cancel your old SOMACS Funding Request.

IF YOU ARE WILLING TO CHANGE to the $450 month-to-month option: 
When you get your RAL Funding Requests Report for your Form 471,
change the "Monthly Charges" line on your SOMACS Funding Request.

In either case, you will then return the RAL Funding Requests Report
to USAC. See
http://www.universalservice.org/sl/applicants/step07/receipt-acknowledgement-letter.aspx
for more information about the Receipt Acknowledgment Letter.

Lorrie Germann (lorrie.germann at etech.ohio.gov, 614-485-6050) or
Steve Crumbacher (steven.crumbacher at etech.ohio.gov, 614-485-6010)
should be able to answer any technical questions you have about the
change process.


-- 
Stephen Hedges, Executive Director
Ohio Public Library Information Network (OPLIN)
2323 W. 5th Avenue, Suite 130
Columbus, Ohio  43204
614-728-5250    AIM: hedgesst