FCC Grants and Denies Several Appeals
Message Posted May 5, 2009

In the last three years the FCC has granted nearly all of pending appeals that were the result of ministerial or clerical errors where no abuse or fraud had occurred, in what the FCC termed as Global Resolution Orders (GROs). In keeping with the favorable GRO pattern, the FCC recently granted 39 appeals; however, they also denied 31 other appeals, suggesting that the FCC will only bend the E-rate rules so much. The only appeal granted from PA was for the Saltsburg Free Library.

In the FCC's recent Albert Lea Area Schools decision (DA 09-825) (http://hraunfoss.fcc.gov/edocs_public/attachmatch/DA-09-825A1), 39 appeals were granted involving the following issues:

-- Clerical error in contract dates listed on 471
-- Service posted on 470 but in wrong category
-- Wrong Form 470 number listed on 471
-- Contract signed or Form 471 submitted before 28 day bidding window was complete (by 1-3 days)

In the last issue, the FCC stated that these applicants "only missed the 28-day deadline by a minimum number of days (i.e, one to three days) and therefore their requests for discounted services were subject to competitive bidding for a meaningful period of time. We emphasize the limited nature of this decision... the competitive bidding rules ensure more efficient pricing for telecommunications and information services. Many other E-rate applicants fully complied with these rules, and our action here does not eliminate the 28-day competitive bidding requirement. Applicants are not free to disregard the 28-day rule based on their own determination that only one service provider can provide the desired services – they must use the bidding process to determine whether this is the case. All applicants must comply with our current rules and procedures and continue to submit complete and accurate information to USAC as part of the application review process."

The appeals that were granted were limited in nature and the FCC did not direct USAC to disregard such infractions in the future. In other words, although the FCC granted these appeals, any applicant that happens to fall into similar circumstances will be required to appeal to the FCC for relief -- a process that typically takes years for a decision to be made. But if you do fall into one of the same situations as listed in this GRO, be sure to cite the Albert Lea Area Schools decision in your appeal.

The 31 appeals that were denied involved situations where the applicant signed contracts before posting a Form 470 or without posting a Form 470 at all.

If you have any questions, please don't hesitate to contact me.

-- Julie

Julie Tritt Schell