STEP 3: LEGALLY BINDING AGREEMENTS AND CONTRACTS Contract Rules and Examples. Erin Rock, Secretary

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1 STEP 3: LEGALLY BINDING AGREEMENTS AND CONTRACTS Contract Rules and Examples Erin Rock, Secretary

2 PROCESS CHECK 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.

3 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

4 PLAN FCC 470 EVALS FCC 471 ADMIN WINDOW CONTRACT PIA FCC 486 INVOICE 4

5 AFTER THE EVAL What IS a Binding Agreement? 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 A written offer from a service provider and acceptance from the applicant that includes all the material terms and conditions and is legally binding.

6 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 from the applicant telling the service provider the bid was selected.

7 AFTER THE EVAL What is NOT a Binding Agreement? A verbal offer and/or acceptance will not be considered evidence of the existence of a legally binding agreement.

8 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.

9 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 (2)(b), Florida Statutes

10 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

11 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

12 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.

However, the applicant is in the progress of extending the contract through

13 COMPLIANCE EXAMPLE: 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?

14 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

15 COMPLIANCE Month-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.

16 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.

17 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.

18 BEST PRACTICES- SLA S 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 in the Forms section. Agree Disagree Explanation: 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, Agree Disagree Explanation:

19 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

State Master Contracts & State Replacement Contracts

State Master Contracts & State Replacement Contracts What We Do and Why We Do It Schools and Libraries Division Washington, DC Seattle Denver Chicago Newark Los Angeles Atlanta September/October 2008 Overview