Federal Communications Commission DA 12-189 Before the Federal Communications Commission Washington, DC 20554 In the Matter of ) ) Requests for Waiver and Review of ) Decisions of the ) Universal Service Administrator by ) ) Canon City School District Fremont RE-1 ) File Nos. SLD-483730, et al. Canon City, Colorado, et al. ) ) Schools and Libraries Universal Service ) CC Docket No. 02-6 Support Mechanism ) ORDER Adopted: February 15, 2012 Released: February 15, 2012 By the Deputy Chief, Telecommunications Access Policy Division, Wireline Competition Bureau: 1. Consistent with precedent,1 we grant 27 requests from petitioners2 seeking review of decisions made by the Universal Service Administrative Company (USAC) under the E-rate program (more formally known as the schools and libraries universal service support program).3 In each decision, USAC found violations of the Commission’s competitive bidding requirements. Based on our review of the record, we find that the petitioners complied with the Commission’s competitive bidding 1 See, e.g., Requests for Review of Decisions of the Universal Service Administrator by Dimmitt Independent School District, et al., Order, 26 FCC Rcd 15581 (Wireline Comp. Bur. 2011). See also Schools and Libraries Universal Service Support Mechanism, Third Report and Order and Second Further Notice of Proposed Rulemaking, CC Docket No. 02-6, 18 FCC Rcd 26912, 26939, para. 66 (stating that a fair and open competitive bidding process is critical to preventing waste, fraud, and abuse of program resources); Request for Review by Mastermind Internet Services, Inc., Federal-State Joint Board on Universal Service, Changes to the Board of Directors of the National Exchange Carrier Association, Inc., CC Docket No. 96-45, Order, 16 FCC Rcd 4028 (2000) (Mastermind Order) (finding that the FCC Form 470 contact person influences an applicant’s competitive bidding process by controlling the dissemination of information regarding the services requested and, when an applicant delegates that power to an entity that also participates in the bidding process as a prospective service provider, the applicant impairs its ability to hold a fair competitive bidding process). All potential bidders and service providers must have access to the same information and must be treated in the same manner throughout the procurement process. Mastermind Order, 16 FCC Rcd at 4033, para. 10. See also Request for Review by Dickenson County Public Schools, Federal-State Joint Board on Universal Service, CC Docket No. 96-45, 17 FCC Rcd 15747, 15748, para. 3 (2002); Request for Review by Approach Learning and Assessment Center, Federal-State Joint Board on Universal Service, CC Docket No. 96- 45, 22 FCC Rcd 5296, 5303, para. 19 (Wireline Comp. Bur. 2007) (finding that service provider participation may have suppressed fair and open competitive bidding). For Woodward Independent School District 1, we also grant its appeal because we find that the applicant sufficiently listed the services it sought on its FCC Form 470. See 47 C.F.R. § 54.503(c)(ii)(2011); see also Request for Review of the Decision of the Universal Service Administrator by Ysleta Independent School District, CC Docket Nos. 96-45, 97-21, Order, 18 FCC Rcd 26407, 26408-09, paras. 7, 25 (2003). 2 The requests for waiver and review are listed in the appendix. 3 Section 54.719(c) of the Commission’s rules provides that any person aggrieved by an action taken by a division of USAC may seek review from the Commission. 47 C.F.R. § 54.719(c). Federal Communications Commission DA 12-189 2 requirements, and therefore we grant their requests. On our own motion, we also waive section 54.507(d) of the Commission’s rules and any USAC procedural deadlines, such as the invoicing deadline, that might be necessary to effectuate our ruling.4 We find good cause to waive section 54.507(d) because filing an appeal of a denial is likely to cause petitioners to miss the program’s subsequent procedural deadlines in that funding year.5 2. We therefore remand the underlying applications listed in the appendix to USAC for further action consistent with this order. To ensure that the underlying applications are resolved expeditiously, we direct USAC to complete its review of each application listed in the appendix and issue an award or a denial based on a complete review and analysis no later than 90 calendar days from the release date of this order. In remanding these applications to USAC, we make no finding as to the ultimate eligibility of the services or the petitioners’ applications. We direct USAC to discontinue recovery actions based on the denials reviewed in this order against the parties whose requests are addressed herein. 3. ACCORDINGLY, IT IS ORDERED, pursuant to the authority contained in sections 1-4 and 254 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151-154 and 254, and sections 0.91, 0.291, 1.3 and 54.722(a) of the Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, 1.3 and 54.722(a), the requests for review or requests for waiver filed by the petitioners listed in the appendix ARE GRANTED and their underlying applications ARE REMANDED to USAC for further consideration in accordance with the terms of this order. 4. IT IS FURTHER ORDERED, pursuant to the authority contained in sections 1-4 and 254 of the Communications Act of 1934, as amended, 47 U.S.C. §§ 151-154 and 254, and sections 0.91, 0.291, 1.3 and 54.722(a) of the Commission’s rules, 47 C.F.R. §§ 0.91, 0.291, 1.3 and 54.722(a), that section 54.507(d) of the Commission’s rules, 47 C.F.R. § 54.507(d), IS WAIVED for the petitioners listed in the appendix to the limited extent provided herein. FEDERAL COMMUNICATIONS COMMISSION Gina M. Spade Deputy Chief Telecommunications Access Policy Division Wireline Competition Bureau 4 47 C.F.R. § 54.507(d) (requiring non-recurring services to be implemented by September 30 following the close of the funding year). 5 Generally, the Commission’s rules may be waived if good cause is shown. 47 C.F.R. § 1.3. The Commission may exercise its discretion to waive a rule where the particular facts make strict compliance inconsistent with the public interest. Northeast Cellular Telephone Co. v. FCC, 897 F.2d 1164, 1166 (D.C. Cir. 1990) (Northeast Cellular). In addition, the Commission may take into account considerations of hardship, equity, or more effective implementation of overall policy on an individual basis. WAIT Radio v. FCC, 418 F.2d 1153, 1159 (D.C. Cir. 1969); Northeast Cellular, 897 F.2d at 1166. Waiver of the Commission’s rules is appropriate only if both (i) special circumstances warrant a deviation from the general rule, and (ii) such deviation will serve the public interest. NetworkIP, LLC v. FCC, 548 F.3d 116, 125-128 (D.C. Cir. 2008); Northeast Cellular, 897 F.2d at 1166. Federal Communications Commission DA 12-189 3 APPENDIX Petitioner Application Number(s) Funding Year Date Request for Review/Waiver Filed Canon City, School District Fremont RE-1 Canon City, CO 483730 498243 544204 606907 671908 764414 2005 2006 2007 2008 2009 2010 Oct. 13, 2010, June 21, 2010 Oct. 13, 2010 Oct. 13, 2010, June 21, 2010 Oct. 13, 2010 Oct. 13, 2010 Oct. 13, 2010, June 21, 2010 Charlotte County School District Port Charlotte, FL 606829 2008 Nov. 1, 2010 Fountain Fort Carson School District 8 Fountain, CO 498944 596832 2006 2008 Jan. 24, 2011 May 31, 2011 Lewis-Palmer School District 38 Monument, CO 441721 507363 622216 674533 733603 2005 2006 2008 2009 2010 Dec.1, 2010 Dec.1, 2010 Dec.1, 2010 Dec.1, 2010 Dec.1, 2010 Nederland Independent School District Nederland, TX 604325 604557 604595 604629 604662 661218 660400 660592 660368 661617 724986 724929 724960 724887 724947 2008 2008 2008 2008 2008 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 Nov. 16, 2010 Nov. 16, 2010 Nov. 16, 2010 Nov. 16, 2010 Nov. 16, 2010 Nov. 8, 2010 Nov. 8, 2010 Nov. 8, 2010 Nov. 8, 2010 Nov. 8, 2010 Nov. 8, 2010 Nov. 8, 2010 Nov. 8, 2010 Nov. 8, 2010 Nov. 8, 2010 New Education for the Workplace (NewCorp) Oceanside, CA 537090 537176 537265 536824 694279 694690 728420 733636 2006 2006 2006 2006 2009 2009 2010 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Northeast Texas Regional Education Telecommunications Network Mt. Pleasant, TX 669497 756191 2009 2010 Dec. 6, 2010 Feb.14,2011 Palestine Independent School District Palestine, TX 689728 759855 2009 2010 Dec. 9, 2010 Dec. 9, 2010 Region 6 & 8 Southwest/West Central 517167 2006 Feb. 18, 2011 Federal Communications Commission DA 12-189 4 Petitioner Application Number(s) Funding Year Date Request for Review/Waiver Filed Service Cooperative Marshall, MN 557244 604558 611581 663148 663276 684875 717487 717487 2007 2008 2008 2009 2009 2009 2010 2010 Feb. 18, 2011 Feb. 18, 2011 Feb. 18, 2011 Feb. 18, 2011 Feb. 18, 2011 Feb. 18, 2011 Feb. 18, 2011 Feb. 18, 2011 School for Integrated Academies and Technologies (SIATech) Oceanside, CA 536126 584060 635031 635283 695002 686078 728534 2006 2007 2008 2008 2009 2009 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Dec. 10, 2010 Sunnyside Unified School District 12 Tucson, AZ 507386 552301 601984 669222 2006 2007 2008 2009 Apr.4, 2011 Nov. 24, 2010 Nov. 24, 2010 Jul.8, 2010 Woodward Independent School District 1 Woodward, OK 765953 2010 Dec. 6, 2010 Trillion Partners, Inc. Austin, TX (Bristol Borough School District Bristol, PA) 687656 754050 2009 2010 Nov. 18, 2010 Nov.18, 2010 Trillion Partners, Inc. Austin, TX (Canon City, School District Fremont RE-1 Canon City, CO) 483730 498243 544204 606907 671908 764414 2005 2006 2007 2008 2009 2010 Nov. 3, 2010 Nov. 3, 2010, Nov. 29, 2010 Nov. 3, 2010, Nov. 29, 2010 Nov. 3, 2010, Nov. 29, 2010 Nov. 3, 2010, Nov. 11, 2010 Nov. 3, 2010 Trillion Partners, Inc. Austin, TX (Charlotte County School District Port Charlotte, FL) 463795 498259 560949 606829 2005 2006 2007 2008 Mar. 9, 2011 Mar. 9, 2011 Mar. 9, 2011 Nov. 9, 2010 Trillion Partners, Inc. Austin, TX (Fountain Fort Carson School District 8 Fountain, CO) 481508 498944 582253 596832 649848 712326 2005 2006 2007 2008 2009 2010 Jan. 10, 2011 Jan. 10, 2011 Jan. 10, 2011 Jan. 10, 2011 Jan. 10, 2011 Jan. 10, 2011 Trillion Partners, Inc. Austin, TX (Lewis-Palmer School District 38 Monument, CO) 441721 507363 622216 674533 733603 2005 2006 2008 2009 2010 Nov. 11, 2010 Nov. 11, 2010 Nov. 11, 2010 Nov. 11, 2010 Nov. 11, 2010 Federal Communications Commission DA 12-189 5 Petitioner Application Number(s) Funding Year Date Request for Review/Waiver Filed Trillion Partners, Inc. Austin, TX (Nederland Independent School District, Nederland, TX) 443709 445012 445556 447549 515596 515547 515442 557454 557425 557384 555276 661617 661218 660592 660400 660368 724947 724986 724960 724929 724887 2005 2005 2005 2005 2006 2006 2006 2007 2007 2007 2007 2009 2009 2009 2009 2009 2010 2010 2010 2010 2010 Apr. 29, 2011 Apr. 29, 2011 Nov. 15, 2010 Nov. 15, 2010 Nov. 15, 2010 Nov. 15, 2010 Nov. 15, 2010 Nov. 15, 2010 Nov. 15, 2010 Nov. 15, 2010 Nov. 15, 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Trillion Partners, Inc. Austin, TX (NewCorp, Oceanside, CA) 583858 583950 584000 635394 635691 694279 694690 728420 733636 2007 2007 2007 2008 2008 2009 2009 2010 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Trillion Partners, Inc. Austin, TX (Newton County School District Decatur, MS) 685420 764153 2009 2010 Feb. 4, 2011 Feb. 4, 2011 Trillion Partners, Inc. Austin, TX (Northeast Texas Regional Education Telecommunications Network Mt. Pleasant, TX) 669497 756191 2009 2010 Nov. 3, 2010, Nov. 12, 2010 Nov. 3, 2010, Feb. 1, 2011 Trillion Partners, Inc. Austin, TX (Palestine Independent School District Palestine, TX) 689728 759855 2009 2010 Dec. 3, 2010 Dec. 3, 2010 Trillion Partners, Inc. Austin, TX (Plaquemines Parish School Board Belle Chasse, LA) 631488 689631 759349 2008 2009 2010 Nov. 12, 2010 Nov. 12, 2010 Nov. 12, 2010 Trillion Partners, Inc. 517167 2006 Nov. 3, 2010, Mar. 11, 2011, Federal Communications Commission DA 12-189 6 Petitioner Application Number(s) Funding Year Date Request for Review/Waiver Filed Austin, TX (Region 6 & 8 Southwest/West Central Service Cooperative Marshall, MN) 557244 604558 611581 663148 663276 684875 717487 717487 2007 2008 2008 2009 2009 2009 2010 2010 June 21, 2010 Nov. 3, 2010, Mar. 11, 2011 Nov. 3, 2010, Mar. 11, 2011, June 21, 2010 Nov. 3, 2010, Mar. 11, 2011 Nov. 3, 2010, Nov. 12, 2010 Nov. 3, 2010, Nov. 12, 2010, June 21, 2010 Nov. 3, 2010, Nov. 12, 2010, June 21, 2010 Nov. 3, 2010, Nov. 12, 2010 Nov. 3, 2010, Nov. 12, 2010, June 21, 2010 Trillion Partners, Inc. Austin, TX (SIATech, Oceanside, CA) 584060 635031 635283 686078 728534 2007 2008 2008 2009 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Dec. 13, 2010 Trillion Partners, Inc. Austin, TX (Sunnyside Unified School District 12 Tucson, AZ) 507386 552301 601984 2006 2007 2008 Mar. 11, 2011 Nov. 9, 2010 Nov. 9, 2010 Trillion Partners, Inc. Austin, TX (Walton County School District Defuniak Springs, FL) 648381 726967 2009 2010 Nov. 9, 2010 Nov. 9, 2010 Trillion Partners, Inc. Austin, TX (12 Applicants) Oct. 1, 2010 Trillion Partners, Inc. (7 Applicants) Oct. 10, 2010 Trillion Partners, Inc. (Master Appeal) Nov. 3, 2010