FCC Record, Volume 27, No. 7, Pages 5674 to 6652, May 23 - June 15, 2012 Page: 5,686
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RFP and therefore violated the Commission rule that applicants post for 28 days the services for which
they are seeking bids.'9
5. In its request for review, Birmingham does not contest the denial of funding for
Cyberpatrol License Renewal and McAfee Netshield.2 With regard to server maintenance, Birmingham
asserts that the service was competitively bid and that the selected vendor offered better pricing over a
three-year period as opposed to a one-year period.2' Birmingham acknowledges, however, that E-rate
program rules limit funding to a one-year period and, therefore, appeals USAC's denial of funding for
server maintenance support for one year.22 Additionally, Birmingham renews its request for Novell
Netware support and states that the amount requested would cover the labor needed to install or upgrade
the software on servers across the school district.23 Finally, Birmingham argues that the cost for
installation and repair replacement services was based on past experience and anticipated needs, and that
it intended to use the hourly rates of the vendor to perform these tasks only as required with the funding.24
6. After reviewing the record, we find that USAC correctly denied Birmingham's request for
support for Cyberpatrol License Renewal and McAfee Netshield because neither service is eligible for E-
rate funding." We find, however, that USAC erred in denying support for server maintenance and Novell
Netware on the ground that 30 percent or more of FRN 755102 did not comply with E-rate program
rules.26 Under USAC's 30 percent processing procedure utilized during application review at that time, if
30 percent or more of a request for discounts made in an FCC Form 471 was for ineligible services,
USAC would deny the entire request.27 Based on our review of the record, FRN 755102 contained
requests totaling approximately $1,126,000 for six different products or services, including two ineligible
services: Cyberpatrol License Renewal and McAfee Netshield, totaling approximately $126,000.28 The
remaining services included in the FRN, which total approximately $1.1 million, were denied funding for
reasons other than eligibility.29 Even under USAC's policy at the time, the first year of server
9 Id.; 47 C.F.R. 54.504 (2002), amended by 47 C.F.R. 54.503 (2011).
20 Request for Review at 3.
2S See USAC website, Schools and Libraries, Eligible Services List (dated Oct. 18, 2002),
htp:!'www.usac.org! res'docuinenits'sl!pdf'ESL archive/EligibleServicesList 101802pdf (last visited June 7,
26 See USAC Decision on Appeal at 2-3.
27 See Brooklyn Order
28 See Birmingham FCC Form 471.
29 Birmingham requested approximately $500,000 for installation, $340,000 for repair replacement; $233,000 for
one year server maintenance; and $133,000 for Novell Netware. As discussed above, USAC denied funding for the
second and third years of server maintenance because the services would be delivered outside of the funding year.
USAC denied funding for installation and repair replacement services because Birmingham did not seek competitive
bids for the services. USAC also denied funding for Novell Netware services because it violated the 30 percent
processing benchmark. See supra para. 4; Request for Review at 2-4.
Federal Communications Commission
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United States. Federal Communications Commission. FCC Record, Volume 27, No. 7, Pages 5674 to 6652, May 23 - June 15, 2012, book, June 2012; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc111171/m1/29/: accessed May 26, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.