**Before the**

**Federal Communications Commission**

**Washington, DC 20554**

In the Matter of )

)

Request for Review of the )

Decision of the )

Universal Service Administrator by )

)

Academy of Careers and Technologies ) File Nos. SLD-418938, *et al*.

San Antonio, TX, *et al.* )

)

Schools and Libraries Universal Service ) CC Docket No. 02-6

Support Mechanism )

**order**

**Adopted: May 2, 2006 Released: May 19, 2006**

By the Commission:

#  Introduction

1.  In this Order, we grant 30 appeals of decisions by the Universal
    Service Administrative Company ("Administrator" or "USAC") denying
    134 requests for funding from 96 participants in the schools and
    libraries universal service support mechanism on the grounds that
    they violated the Commission's competitive bidding rules.[^1] As
    explained below, we find that USAC improperly denied the requests
    for funding without sufficiently examining whether the Commission's
    rules were violated due to improper third-party participation in the
    applicants' competitive bidding processes, and remand the underlying
    applications associated with these appeals to USAC for further
    action consistent with this Order. In addition, we direct the
    Administrator to conduct further investigation and analysis prior to
    denying funding for suspected competitive bidding violations of the
    type addressed herein, and to provide applicants with an opportunity
    to demonstrate that they did not violate the Commission's
    competitive bidding rules. To ensure that the underlying
    applications are resolved expeditiously, we direct USAC to complete
    its review of each application (and issue an award or a denial based
    on a complete review and analysis) listed in the Appendix no later
    than 120 days from release of this Order.

#  BACKGROUND

2.  Under the schools and libraries universal service support mechanism,
    eligible schools, libraries, and consortia that include eligible
    schools and libraries, apply for discounts for eligible
    telecommunications services, Internet access, and internal
    connections.[^2] The applicant, after developing a technology plan,
    files the FCC Form 470 ("Form 470") with the Administrator to
    request discounted services.[^3] The Form 470 is posted on USAC's
    website for at least 28 days, during which time interested service
    providers may submit bids to provide the requested services.[^4] The
    applicant must consider all submitted bids prior to entering into a
    contract; price must be the primary factor in selecting a bid.[^5]
    Under the Commission's competitive bidding rules, the service
    provider may not participate in the bidding process.[^6] After
    entering into a contract for eligible services, the applicant files
    the FCC Form 471 ("Form 471").[^7] USAC assigns a funding request
    number ("FRN") to each request for discounted services, and issues
    funding commitment decision letters ("FCDLs") approving or denying
    the requests for discounted services.

3.  Among other things, USAC is responsible for administering the
    application process for the schools and libraries universal service
    support mechanism.[^8] Pursuant to this authority, USAC developed a
    procedure to detect applications that may be in violation of the
    Commission's competitive bidding rules by searching for similar
    language used in Form 470s filed by other schools, libraries, and
    consortia that selected the same service provider through their
    competitive bidding processes.[^9] This procedure, described by USAC
    as "pattern analysis," contemplates the possibility that a group of
    applicants, all with the same service provider, violated the
    competitive bidding rules.

4.  The Commission has under consideration 30 appeals filed by parties
    that have requested funding for discounted services under the
    schools and libraries universal service support mechanism.[^10]
    Petitioners appeal decisions denying requests for funding from the
    schools and libraries universal service support mechanism due to a
    failure to comply with the Commission's competitive bidding rules,
    as identified by USAC's "pattern analysis" procedure. These 30
    applicants had in total selected eight service providers.[^11] Many
    of these applicants are among the neediest schools and libraries in
    the country; we estimate that more than 75% of these applicants were
    eligible for a 90 percent discount on eligible services. We further
    estimate that these 30 appeals involve approximately \$38 million in
    funding for 99 applicants for funding during Funding Years
    2002-2004, and note that these funds have already been collected and
    held in reserve. Therefore, our actions taken in this Order should
    have minimal impact on the Universal Service Fund ("USF").[^12]

5.  After identifying applications that incorporate similar language
    through its "pattern analysis" procedure, USAC typically informs
    applicants that "similarities in Forms 470 among applicants
    associated with this vendor indicate that the vendor was improperly
    involved in the competitive bidding and vendor selection process,"
    and rejects the applicants' FRNs.[^13] Although the precise language
    may vary slightly, the record before us indicates that no other
    detail concerning a violation of Commission rules is provided to
    applicants.[^14] That is, USAC denied the applicants' requests for
    funding solely based on this pattern analysis procedure; the record
    does not indicate that USAC made any formal findings or gathered
    additional facts prior to denying the requests for funding, or that
    USAC identified any school-specific violations of our competitive
    bidding rules.

#  DISCUSSION

6.  After reviewing the record, we grant the instant Requests for Review
    and remand them to USAC for further consideration. We conclude that
    USAC denied the requests for funding without sufficiently
    determining that the service providers improperly participated in
    the applicants' bidding processes. In short, USAC presumed that
    these schools violated the competitive bidding rules based on a
    review of another applicant's information, and without performing
    any applicant-specific evaluations. The "pattern analysis" procedure
    may be helpful to identify applications for further review to
    determine if the applicant violated our competitive bidding rules;
    however, the mere presence of similar language in Form 470s by
    different program participants ultimately selecting the same service
    provider is not sufficient evidence of a rule violation. Indeed,
    there are many legitimate reasons why applicants could have used
    similar language in their applications; for example, they may have
    used the same consultant, attended the same seminar or training
    program, or modeled their responses from the same website.[^15] None
    of these legitimate reasons would support a finding that the school
    or library violated the competitive bidding rules. It appears from
    the record, however, that USAC never attempted to ascertain the
    reason for similar applications prior to denying funding based on
    its "pattern analysis" procedure or obtain additional information to
    determine whether the applicant violated the competitive bidding
    rules. In one group of denied Funding Year 2004 applications, for
    example, one of the "similarities" was the school identifier
    assigned by the state.[^16] According to this petitioner, SEND
    Technologies, "USAC remained unaware that the similarities were
    easily explained and were not indicative of rule violations or
    impermissible service provider involvement."[^17] In addition, the
    record reflects that USAC failed to identify the specific language
    in the Form 470s that it deemed "similar."[^18] We agree with the
    Petitioners that without specific information to determine the basis
    for the denial, applicants cannot provide comprehensive responses to
    USAC's arguments.

7.  For these reasons, we find that when USAC suspects that a service
    provider has improperly participated in an applicant's bidding
    process due to the results of its "pattern analysis" procedure, it
    is incumbent on USAC to conduct further investigation and analysis
    prior to denying funding.[^19] Specifically, USAC should review
    these applications fully, and should not issue summary denials of
    requests for funding solely because applications contain similar
    language. If an entity is able to demonstrate that it fully complied
    with all program rules and did not, for example, violate the
    Commission's competitive bidding rules, then USAC should not deny
    funding on the basis of the "pattern analysis" procedure. We
    therefore grant the Requests for Review listed in the Appendix
    attached to this Order and remand the underlying applications
    associated with these appeals to USAC for further action consistent
    with this Order.[^20] To ensure these issues are resolved
    expeditiously, we direct USAC to complete its review of the
    applications (and issue an award or a denial based on a complete
    review and analysis) listed in the Appendix no later than 120 days
    from release of this Order.

8.  We recognize that some beneficiaries may have violated the
    competitive bidding rules and that shared facts may help uncover
    violations of our rules or waste, fraud, and abuse committed by
    other beneficiaries. Indeed, we recognize the utility of USAC's
    pattern analysis of helping to identify malfeasance. A pattern
    analysis alone, however, does not determine that an applicant has
    violated program rules or engaged in waste, fraud, or abuse. Based
    on the existing program rules, USAC should not stop its review of an
    application and conclude that the applicant violated program rules
    (and then deny the funding request) solely because the application
    shares some language with that of another applicant who selected the
    same service provider. Instead, USAC should continue its evaluation
    to determine whether funding is warranted and whether the applicants
    violated program rules, including those concerns initially
    identified through the "pattern analysis" process. As part of its
    review, USAC may request that applicants submit documentation
    establishing the source of the language that is similar to that
    found in other applications. Upon completing its review, if USAC
    finds that the application complies with all applicable program
    rules and that USF funding is warranted, it should authorize
    funding. We recognize that, after USAC completes its application
    review procedures for the appeals identified in this Order, it may
    conclude that funding is not warranted and deny the request.

#  ORDERING CLAUSES

9.  ACCORDINGLY, IT IS ORDERED that, 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 1.3, and
    54.722(a) of the Commission's rules, 47 C.F.R. §§ 1.3 and 54.722(a),
    this Order IS ADOPTED.

10. IT IS FURTHER ORDERED that any and all pending appeals before this
    Commission identified in the Appendix of this Order ARE REMANDED to
    the Administrator for further consideration in accordance with the
    terms of this Order.

11. IT IS FURTHER ORDERED that, 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, USAC SHALL COMPLETE its review of each
    remanded application (and issue an award or a denial based on a
    complete review and analysis) listed in the Appendix no later than
    120 days from release of this Order.

    FEDERAL COMMUNICATIONS COMMISSION

    Marlene H. Dortch

    Secretary

APPENDIX

**A. Requests for Review Filed By Applicants for E-Rate Funding**

+-----------------------+--------------------+------------+-----------+
| **Applicant**         | **Service          | **A        | **Funding |
|                       | Provider**         | pplication | Year**    |
|                       |                    | Number**   |           |
+-----------------------+--------------------+------------+-----------+
| Academy of Careers    | RGC and            | 418938     | 2004      |
| and Technologies      | Associates, Inc.   |            |           |
|                       |                    |            |           |
| San Antonio, TX       |                    |            |           |
+-----------------------+--------------------+------------+-----------+
| El Paso School of     | RGC and            | 408268     | 2004      |
| Excellence            | Associates, Inc.   |            |           |
|                       |                    |            |           |
| El Paso, Texas        |                    |            |           |
+-----------------------+--------------------+------------+-----------+
| Lake Grove at Maple   | Ed Tec Solutions,  | 380920     | 2003      |
| Valley, Inc., Lake    | LLC                |            |           |
| Grove Schools         |                    |            |           |
|                       |                    |            |           |
| Wendall, MA           |                    |            |           |
+-----------------------+--------------------+------------+-----------+
| Lake Grove Durham     | Ed Tec Solutions,  | 380528     | 2003      |
| School, Lake Grove    | LLC                |            |           |
| Schools               |                    |            |           |
|                       |                    |            |           |
| Durham, CT            |                    |            |           |
+-----------------------+--------------------+------------+-----------+
| Lake Grove Schools    | Ed Tec Solutions,  | 381301     | 2003      |
|                       | LLC                |            |           |
| Lake Grove, NY        |                    |            |           |
+-----------------------+--------------------+------------+-----------+
| Mountain Lake         | Ed Tec Solutions,  | 380723     | 2003      |
| Children's Residence, | LLC                |            |           |
| Inc., Lake Grove      |                    |            |           |
| Schools               |                    |            |           |
|                       |                    |            |           |
| Lake Placid, NY       |                    |            |           |
+-----------------------+--------------------+------------+-----------+
| Positive Solutions    | RGC and            | 409745     | 2004      |
| Consortium            | Associates, Inc.   |            |           |
|                       |                    |            |           |
| San Antonio, TX       |                    |            |           |
+-----------------------+--------------------+------------+-----------+
| Rosemead Elementary   | Spectrum           | 303357     | 2002      |
| School District       | Communications     |            |           |
|                       | Cabling Services,  |            |           |
| Rosemead, CA          | Inc.               |            |           |
+-----------------------+--------------------+------------+-----------+
| Webster Parish School | SEND Technologies, | 363968     | 2003      |
| District              | LLC                |            |           |
+-----------------------+--------------------+------------+-----------+
| Yeshiva Masoras Avos  | Communications     | 294999     | 2002      |
|                       | Data and Security, |            |           |
| Lakewood, NJ          | Inc.               |            |           |
+-----------------------+--------------------+------------+-----------+
| Yeshiva Masoras Avos  | Communications     | 347572     | 2003      |
|                       | Data and Security, |            |           |
| Lakewood, NJ          | Inc.               |            |           |
+-----------------------+--------------------+------------+-----------+
| Yeshivath Viznitz     | Communications     | 287318     | 2002      |
| D'Khal Torath Chaim   | Data and Security, |            |           |
|                       | Inc.               |            |           |
| Monsey, NY            |                    |            |           |
+-----------------------+--------------------+------------+-----------+

**B. Requests for Review Filed by Service Providers on Behalf of
Individual Applicants**

+-----------------------+---------------------+------------+----------+
| **Service Provider**  | **Applicant**       | **A        | *        |
|                       |                     | pplication | *Funding |
|                       |                     | Number**   | Year**   |
+-----------------------+---------------------+------------+----------+
| American Internet     | Plymouth            | 428762     | 2004     |
| Group, LLC            | Educational Center  |            |          |
|                       | Charter Schools     |            |          |
|                       |                     |            |          |
|                       | Detroit, MI         |            |          |
+-----------------------+---------------------+------------+----------+
| Independent Computer  | Al-Ghazaly          | 310917     | 2002     |
| Maintenance, LLC      | Elementary School   |            |          |
|                       |                     |            |          |
|                       | Jersey City, NJ     |            |          |
+-----------------------+---------------------+------------+----------+
| Independent Computer  | Dar Al-Hikmah       | 310459     | 2002     |
| Maintenance, LLC      | Elementary School   |            |          |
|                       |                     |            |          |
|                       | Prospect park, NJ   |            |          |
+-----------------------+---------------------+------------+----------+
| Independent Computer  | Horizon School      | 316671     | 2002     |
| Maintenance, LLC      |                     |            |          |
|                       | Livingston, NJ      |            |          |
+-----------------------+---------------------+------------+----------+
| Independent Computer  | Kearny Christian    | 307730     | 2002     |
| Maintenance, LLC[^21] | Academy             |            |          |
|                       |                     |            |          |
|                       | Kearny, NJ          |            |          |
+-----------------------+---------------------+------------+----------+
| Independent Computer  | New Visions Academy | 309196     | 2002     |
| Maintenance, LLC      |                     |            |          |
|                       | Newark, NJ          |            |          |
|                       | (Diversified        |            |          |
|                       | Computer Solutions  |            |          |
|                       | was former service  |            |          |
|                       | provider)           |            |          |
+-----------------------+---------------------+------------+----------+
| Spectrum              | Corona-Norco        | 362456     | 2003     |
| Communications        | Unified School      |            |          |
| Cabling Services,     | District            |            |          |
| Inc.                  |                     |            |          |
|                       | Norco, CA           |            |          |
+-----------------------+---------------------+------------+----------+
| Spectrum              | Rosemead Elementary | 366569     | 2003     |
| Communications        | Unified School      |            |          |
| Cabling Services,     | District            |            |          |
| Inc.                  |                     |            |          |
|                       | Rosemead, CA        |            |          |
+-----------------------+---------------------+------------+----------+

**C. Consolidated Requests for Review Filed by Service Providers on
Behalf of Individual Applicants**

> 1\. Applications Consolidated in a Request for Review filed by
> Communications Data and Security, Inc., filed June 14, 2004:

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| Bais Chinuch Hayoshen | 294981                    | 2002             |
|                       |                           |                  |
| Monsey, NY            |                           |                  |
+-----------------------+---------------------------+------------------+
| Bais Tova             | 287825                    | 2002             |
+-----------------------+---------------------------+------------------+
| Bais Yaakov High      | 287451                    | 2002             |
| School of Lakewood,   |                           |                  |
| Inc.                  |                           |                  |
+-----------------------+---------------------------+------------------+
| Beth Rivka School     | 287822                    | 2002             |
|                       |                           |                  |
| Brooklyn, NY          |                           |                  |
+-----------------------+---------------------------+------------------+
| Bnos Chayil           | 288799                    | 2002             |
+-----------------------+---------------------------+------------------+
| Congregation Bnai     | 300877, 293323, 322057    | 2002             |
| Yoel                  |                           |                  |
|                       |                           |                  |
| Monroe, NY            |                           |                  |
+-----------------------+---------------------------+------------------+
| Congregation          | 293889                    | 2002             |
| Machzikei Hadas of    |                           |                  |
| Belz                  |                           |                  |
+-----------------------+---------------------------+------------------+
| Congregation Noam E.  | 287796                    | 2002             |
| Lizensk               |                           |                  |
+-----------------------+---------------------------+------------------+
| Congregation Noiam    | 296699, 322734            | 2002             |
| Mgodim                |                           |                  |
+-----------------------+---------------------------+------------------+
| Generation Christian  | 297919                    | 2002             |
| Academy               |                           |                  |
+-----------------------+---------------------------+------------------+
| Kavanas Halev         | 294702, 287455            | 2002             |
+-----------------------+---------------------------+------------------+
| Lakewood Cheder       | 287220                    | 2002             |
| School                |                           |                  |
+-----------------------+---------------------------+------------------+
| Machne Karlin Stolin  | 313957                    | 2002             |
+-----------------------+---------------------------+------------------+
| Midrach L'Man Achai   | 324976, 300353, 294833    | 2002             |
+-----------------------+---------------------------+------------------+
| Shaar Ephraim         | 287472                    | 2002             |
+-----------------------+---------------------------+------------------+
| Talmud Torah Bais     | 287833                    | 2002             |
| Yechiel               |                           |                  |
+-----------------------+---------------------------+------------------+
| Talmud Torah of       | 287134, 287198            | 2002             |
| Lakewood              |                           |                  |
+-----------------------+---------------------------+------------------+
| Talmud Torah Tzoin    | 287216                    | 2002             |
| Yosef Pupa, Inc.      |                           |                  |
+-----------------------+---------------------------+------------------+
| Tiferes Academy       | 304794                    | 2002             |
+-----------------------+---------------------------+------------------+
| Toras Imecha          | 292962                    | 2002             |
+-----------------------+---------------------------+------------------+
| United Talmudical     | 295523, 295698, 295714,   | 2002             |
| Academy               | 307138, 293464, 291564    |                  |
|                       |                           |                  |
| Monroe, NY            |                           |                  |
+-----------------------+---------------------------+------------------+
| Viznitzer Chaider     | 293267, 293268, 294911    | 2002             |
| Tiferes Yisroel       |                           |                  |
+-----------------------+---------------------------+------------------+
| Westchester Special   | 298475                    | 2002             |
| Education School      |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Avir Yakov    | 294954, 295067, 305386    | 2002             |
+-----------------------+---------------------------+------------------+
| Yeshiva Beth David    | 300860, 300896            | 2002             |
| School                |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Bnos Ahavas   | 287293, 287295, 321381    | 2002             |
| Israel                |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Imrei Chaim   | 293311                    | 2002             |
| Viznitz of Borobark   |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Imrei Yosef   | 301267, 293315            | 2002             |
| School                |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Jesode        | 293419, 295822            | 2002             |
| Hatorah               |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Kehilath      | 316264                    | 2002             |
| Yakov School          |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Masoras Avos  | 294999                    | 2002             |
+-----------------------+---------------------------+------------------+
| Yeshiva Sharei        | 307166, 307180            | 2002             |
| Hayosher School       |                           |                  |
|                       |                           |                  |
| Brooklyn, NY          |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Toras Chaim   | 317828                    | 2002             |
+-----------------------+---------------------------+------------------+
| Yeshiva Tzemach       | 295300                    | 2002             |
| Tzadik Viznitz        |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Zichron Mayir | 287235, 287238            | 2002             |
+-----------------------+---------------------------+------------------+
| Yeshivath Viznitz     | 307499, 287319            | 2002             |
| D'Khal Torath Chaim   |                           |                  |
+-----------------------+---------------------------+------------------+

> 2\. Applications Consolidated in a Request for Review filed by Ed Tec
> Solutions, LLC, filed May 19, 2005:

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| California Academy    | 345392                    | 2003             |
| for Liberal Studies   |                           |                  |
|                       |                           |                  |
| Los Angeles, CA       |                           |                  |
+-----------------------+---------------------------+------------------+
| Crystal Springs       | 345507                    | 2003             |
| School                |                           |                  |
|                       |                           |                  |
| A Program of IDDI     |                           |                  |
|                       |                           |                  |
| Assonet, MA           |                           |                  |
+-----------------------+---------------------------+------------------+
| Green Chimneys School | 378380                    | 2003             |
|                       |                           |                  |
| Brewster, NY          |                           |                  |
+-----------------------+---------------------------+------------------+
| Leary School --       | 345527                    | 2003             |
| Prince Georges County |                           |                  |
|                       |                           |                  |
| Oxon Hill, VA         |                           |                  |
+-----------------------+---------------------------+------------------+
| Leary School of       | 345533                    | 2003             |
| Virginia              |                           |                  |
|                       |                           |                  |
| Alexandria, VA        |                           |                  |
+-----------------------+---------------------------+------------------+

> 3\. Applications Consolidated in a Request for Review filed by Ed Tec
> Solutions, LLC, filed May 18, 2005:

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| Family Charter School | 345475                    | 2003             |
|                       |                           |                  |
| Philadelphia, PA      |                           |                  |
+-----------------------+---------------------------+------------------+
| Green Chimneys School | 345498                    | 2003             |
|                       |                           |                  |
| Brewster, NY          |                           |                  |
+-----------------------+---------------------------+------------------+
| Westchester Special   | 345491                    | 2003             |
| Ed School             |                           |                  |
|                       |                           |                  |
| Yonkers, NY           |                           |                  |
+-----------------------+---------------------------+------------------+

> 4\. Applications Consolidated in a Request for Review filed by Ed Tec
> Solutions, LLC, filed May 19, 2005:

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| Audrey Lorde School   | 345394                    | 2003             |
|                       |                           |                  |
| New York, NY          |                           |                  |
+-----------------------+---------------------------+------------------+
| Graydon Manor School  | 345402                    | 2003             |
|                       |                           |                  |
| Leesburg, VA          |                           |                  |
+-----------------------+---------------------------+------------------+

> 5\. Applications Consolidated in a Request for Review filed by SEND
> Technologies, LLC, filed August 23, 2004:

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| Richland Parish       | 291953                    | 2002             |
| School District       |                           |                  |
|                       |                           |                  |
| Rayville, LA          |                           |                  |
+-----------------------+---------------------------+------------------+
| Morehouse Parish      | 301743                    | 2002             |
| School District       |                           |                  |
|                       |                           |                  |
| Bastrop, LA           |                           |                  |
+-----------------------+---------------------------+------------------+

> 6\. Applications Consolidated in a Request for Review filed by SEND
> Technologies, LLC, filed January 10, 2005 :

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| Jackson Parish School | 376220                    | 2003             |
| District              |                           |                  |
|                       |                           |                  |
| Jonesboro, LA         |                           |                  |
+-----------------------+---------------------------+------------------+
| Morehouse Parish      | 360815                    | 2003             |
| School District       |                           |                  |
|                       |                           |                  |
| Bastrop, LA           |                           |                  |
+-----------------------+---------------------------+------------------+

> 7\. Applications Consolidated in a Request for Review filed by SEND
> Technologies, LLC, filed January 18, 2006 :

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| Jackson Parish School | 423981                    | 2004             |
| District              |                           |                  |
|                       |                           |                  |
| Jonesboro, LA         |                           |                  |
+-----------------------+---------------------------+------------------+
| Morehouse Parish      | 409404                    | 2004             |
| School District       |                           |                  |
|                       |                           |                  |
| Bastrop, LA           |                           |                  |
+-----------------------+---------------------------+------------------+
| Franklin Academy      | 412894                    | 2004             |
|                       |                           |                  |
| Winnsboro, LA         |                           |                  |
+-----------------------+---------------------------+------------------+

> 8\. Applications Consolidated in Request for Review filed by Spectrum
> Communications Cabling Services, Inc., filed June 19, 2003:

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| El Monte Unified      | 311437                    | 2002             |
| School District       |                           |                  |
|                       |                           |                  |
| El Monte, CA          |                           |                  |
+-----------------------+---------------------------+------------------+
| Hemet Unified School  | 295589                    | 2002             |
| District              |                           |                  |
|                       |                           |                  |
| Hemet, CA             |                           |                  |
+-----------------------+---------------------------+------------------+
| Inglewood Unified     | 313520                    | 2002             |
| School District       |                           |                  |
|                       |                           |                  |
| Inglewood, CA         |                           |                  |
+-----------------------+---------------------------+------------------+
| Lucerne Valley        | 314228                    | 2002             |
| Unified School        |                           |                  |
| District              |                           |                  |
|                       |                           |                  |
| Lucerne Valley, CA    |                           |                  |
+-----------------------+---------------------------+------------------+
| Romoland Elementary   | 305956                    | 2002             |
| School District       |                           |                  |
|                       |                           |                  |
| Homeland, CA          |                           |                  |
+-----------------------+---------------------------+------------------+
| Rosemead Elementary   | 303357                    | 2002             |
| Unified School        |                           |                  |
| District              |                           |                  |
|                       |                           |                  |
| Rosemead, CA          |                           |                  |
+-----------------------+---------------------------+------------------+

> 9\. Applications Consolidated in Request for Review filed by VIP
> Technologies, LLC., filed March 8, 2005:

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| Alachua Learning      | 418579                    | 2004             |
| Center                |                           |                  |
|                       |                           |                  |
| Alachua, FL           |                           |                  |
+-----------------------+---------------------------+------------------+
| Audrey Lorde School   | 418559                    | 2004             |
|                       |                           |                  |
| New York, NY          |                           |                  |
+-----------------------+---------------------------+------------------+
| Bethesda Childrens'   | 411830                    | 2004             |
| Home                  |                           |                  |
|                       |                           |                  |
| Meadville, PA         |                           |                  |
+-----------------------+---------------------------+------------------+
| Chimes School         | 421161                    | 2004             |
|                       |                           |                  |
| Baltimore, MD         |                           |                  |
+-----------------------+---------------------------+------------------+
| Crystal Springs       | 411722                    | 2004             |
| School, a program of  |                           |                  |
| IDDI                  |                           |                  |
|                       |                           |                  |
| Assonet, MA           |                           |                  |
+-----------------------+---------------------------+------------------+
| Everglades            | 418626                    | 2004             |
| Preparatory Academy   |                           |                  |
|                       |                           |                  |
| Pahokee, FL           |                           |                  |
+-----------------------+---------------------------+------------------+
| Family Charter School | 411674                    | 2004             |
|                       |                           |                  |
| Philadelphia, PA      |                           |                  |
+-----------------------+---------------------------+------------------+
| Gateway-Lynde School  | 418701                    | 2004             |
|                       |                           |                  |
| Buffalo, NY           |                           |                  |
+-----------------------+---------------------------+------------------+
| Glades Academy of     | 418682                    | 2004             |
| Agricultural and      |                           |                  |
| Ecological Studies    |                           |                  |
|                       |                           |                  |
| Pahokee, FL           |                           |                  |
+-----------------------+---------------------------+------------------+
| Green Chimneys School | 411712                    | 2004             |
|                       |                           |                  |
| Brewster, NY          |                           |                  |
+-----------------------+---------------------------+------------------+
| Highville Mustard     | 420329                    | 2004             |
| Seed Charter School   |                           |                  |
|                       |                           |                  |
| Hamden, CT            |                           |                  |
+-----------------------+---------------------------+------------------+
| James M. Singleton    | 412567                    | 2004             |
| Charter Middle School |                           |                  |
|                       |                           |                  |
| New Orleans, LA       |                           |                  |
+-----------------------+---------------------------+------------------+
| Lakeview Charter      | 429410                    | 2004             |
| Academy               |                           |                  |
|                       |                           |                  |
| San Fernando, CA      |                           |                  |
+-----------------------+---------------------------+------------------+
| Lift for Life Academy | 418553                    | 2004             |
|                       |                           |                  |
| St. Louis, MO         |                           |                  |
+-----------------------+---------------------------+------------------+
| Macsa Academic        | 427482                    | 2004             |
| Calmecac              |                           |                  |
|                       |                           |                  |
| San Jose, CA          |                           |                  |
+-----------------------+---------------------------+------------------+
| North County Charter  | 431395                    | 2004             |
| School                |                           |                  |
|                       |                           |                  |
| Opalocka, FL          |                           |                  |
+-----------------------+---------------------------+------------------+
| School of Excellence  | 418635                    | 2004             |
| in Education Charter  |                           |                  |
| School                |                           |                  |
|                       |                           |                  |
| San Antonio, TX       |                           |                  |
+-----------------------+---------------------------+------------------+
| Survivors Charter     | 418464                    | 2004             |
| School                |                           |                  |
|                       |                           |                  |
| West Palm Beach, FL   |                           |                  |
+-----------------------+---------------------------+------------------+
| The Chiles Academy    | 412585                    | 2004             |
|                       |                           |                  |
| Port Orange, FL       |                           |                  |
+-----------------------+---------------------------+------------------+
| Torah High School of  | 425176                    | 2004             |
| Long Beach            |                           |                  |
|                       |                           |                  |
| Long Beach, NY        |                           |                  |
+-----------------------+---------------------------+------------------+
| Woods School          | 412885                    | 2004             |
|                       |                           |                  |
| Langhorne, PA         |                           |                  |
+-----------------------+---------------------------+------------------+
| Yeshiva Tiferes Torah | 430667                    | 2004             |
| School                |                           |                  |
|                       |                           |                  |
| Lakewood, NJ          |                           |                  |
+-----------------------+---------------------------+------------------+
| Youth Opportunities   | 418598                    | 2004             |
| Upheld, Inc.          |                           |                  |
|                       |                           |                  |
| Worcester, MA         |                           |                  |
+-----------------------+---------------------------+------------------+

> 10\. Applications Consolidated in a Request for Review filed by VIP
> Technologies, LLC., filed February 15, 2005:

+-----------------------+---------------------------+------------------+
| **Applicant**         | **Application Number**    | **Funding Year** |
+-----------------------+---------------------------+------------------+
| Florida International | 411456                    | 2004             |
| Academy               |                           |                  |
|                       |                           |                  |
| Miami, FL             |                           |                  |
+-----------------------+---------------------------+------------------+
| Golden Rule Charter   | 412493                    | 2004             |
| School                |                           |                  |
|                       |                           |                  |
| Dallas, TX            |                           |                  |
+-----------------------+---------------------------+------------------+
| Redemptive Life       | 415411                    | 2004             |
| Academy               |                           |                  |
|                       |                           |                  |
| West Palm Beach, FL   |                           |                  |
+-----------------------+---------------------------+------------------+
| New Frontier Charter  | 418517                    | 2004             |
| School                |                           |                  |
|                       |                           |                  |
| San Antonio, TX       |                           |                  |
+-----------------------+---------------------------+------------------+
| Tri-L Christian       | 424917                    | 2004             |
| Academy               |                           |                  |
|                       |                           |                  |
| Orlando, FL           |                           |                  |
+-----------------------+---------------------------+------------------+
| Parkway Academy       | 431407                    | 2004             |
|                       |                           |                  |
| Miramar, FL           |                           |                  |
+-----------------------+---------------------------+------------------+
| Northeast Academy 1   | 431840                    | 2004             |
|                       |                           |                  |
| Opalocka, FL          |                           |                  |
+-----------------------+---------------------------+------------------+
| Downtown Miami        | 432551                    | 2004             |
| Charter School        |                           |                  |
|                       |                           |                  |
| Miami, FL             |                           |                  |
+-----------------------+---------------------------+------------------+

[^1]: The list of appeals is attached in the Appendix. These Requests
    for Review were filed pursuant to sections 54.719-54.721 of the
    Commission's rules. 47 C.F.R. §§ 54.719-54.721.

[^2]: 47 C.F.R. § 54.505.

[^3]: If the technology plan has not been approved when the applicant
    files the Form 470, the applicant must certify that it understands
    that the technology plan must be approved prior to commencement of
    service. 47 C.F.R. § 54.504(b)(2)(vii).

[^4]: 47 C.F.R. § 54.504(b)(4).

[^5]: 47 C.F.R. § 54.511(a).

[^6]: *See Request for Review of Decisions of the Universal Service
    Administrator by MasterMind Internet Services, Inc., Federal-State
    Joint Board on Universal Service*, CC Docket No. 96-45, Order, 16
    FCC Rcd 4028, 4032-33, para. 10 (2000).

[^7]: This form is to request discounts on those services and it
    contains the discount calculation worksheet and the discount funding
    request. The Form 471 generally must be filed each time a school or
    library orders telecommunications services, Internet access, or
    internal connections. *See* 47 C.F.R. §§ 54.504, 54.511(c).

[^8]: *Changes to the Board of Directors of the National Exchange
    Carrier Association, Inc., Federal-State Joint Board on Universal
    Service*, CC Docket Nos. 97-21 and 96-45, Third Report and Order in
    CC Docket No. 97-21, Fourth Order on Reconsideration in CC Docket
    No. 97-21, and Eighth Order on Reconsideration in CC Docket No.
    96-45, 13 FCC Rcd 25058, 25064-65, para. 12 (1998).

[^9]: *See* email from Catriona Ayer, USAC, to Vickie Robinson, Deputy
    Chief, Telecommunications Access Policy Division, Wireline
    Competition Bureau, FCC (May 2, 2005).

[^10]: *See* Appendix.

[^11]: The selected service providers were: Spectrum Communications,
    Diversified Computer Solutions, SEND Technologies, Communications
    Data and Security, VIP Technologies, Ed Tec Solutions, American
    Internet Group, and RGC and Associates.

[^12]: *See, e.g.,* Universal Service Administrative Company, Federal
    Universal Service Support Mechanisms Fund Size Projections for the
    Fourth Quarter 2005, dated August 2, 2005. With further
    investigation, as discussed in this Order, USAC can determine which
    of these applications should be granted and which involve violations
    of our competitive bidding rules. In addition, USAC will ascertain
    whether the relief sought by the applicant was in fact granted in a
    subsequent year, but the applicant neglected to withdraw the appeal.

[^13]: This explanation is in the FCDLs for each of the applicants
    listed in the Appendix. In some of the files, the language varies,
    *e.g*., "similarities in Forms 470 and selective review responses
    among applicants associated with this vendor indicate that the
    vendor was improperly involved in the competitive bidding process."

[^14]: *See, e.g*., Consolidated Request for Review of the Decisions of
    the Universal Service Administrator, Morehouse Parish School
    District and Jackson Parish School District, at 4-5 (filed Jan. 10,
    2005) ("Morehouse and Jackson Appeal").

[^15]: *See, e.g*., Rosemead Elementary Unified School District Request
    for Review at 2-4 (filed Nov. 21, 2004).

[^16]: *See* Letter from Jennifer L. Richter, Patton Boggs LLP, Counsel
    to Nexus Systems, Inc. and Send Technologies, LLC to Marlene H.
    Dortch, Secretary, FCC, filed in CC Docket No. 02-6 (July 8, 2005)
    at 2 ("July 8, 2005 Letter").

[^17]: July 8, 2005 Letter at 2.

[^18]: *See, e.g.,* July 8, 2005 Letter at 2; Morehouse and Jackson
    Appeal at 4-5; Letter from Lila Wills Bronson, Ed.D, Director of
    Technology, Rosemead Elementary School District to Marlene H.
    Dortch, Secretary, FCC (June 20, 2003) at 4-5.

[^19]: During the application review process, USAC may request
    additional information from applicants. *See Request for Review of
    the Decision of the Universal Service Administrator by Nefesh
    Academy, Federal-State Joint Board on Universal Service, Changes to
    the Board of Directors of the National Exchange Carrier Association,
    Inc.,* File No. SLD-27881, CC Dockets No. 95-45 and 97-21, Order, DA
    99-2284, para. 3 (Com. Car. Bur., rel. Oct. 22, 1999) ("*Nefesh
    Academy Order*"). To ensure that the application review process for
    the schools and libraries program is not unduly delayed, USAC
    requires applicants to supply information within a reasonable time
    period or risk denial of the funding request. *Nefesh Academy Order*
    at para. 3.

[^20]: We note, however, that many of the pending appeals addressed in
    this Order date from Funding Year 2002, and that, due to the passage
    of time, such evidence may no longer be available. For example, the
    employees who prepared the Form 470 may have left the school system
    since the application was filed. USAC should look at the totality of
    the circumstances, including an explanation as to why evidence may
    no longer be available. On a going-forward basis, we expect that
    applicants will have better documentation to support their
    applications. *See Schools and Libraries Universal Service Support
    Mechanism,* CC Docket No. 02-6, Fifth Report and Order and Order, 19
    FCC Rcd 15808, 15823-24, para. 47 (requiring applicants and service
    providers to retain all records related to the application for,
    receipt and delivery of discounted services for a period of five
    years after the last day of service delivered for a particular
    funding year).

[^21]: Kearny Christian Academy also filed its own Request for Review
    for the same FCC Form 471 application number on August 30, 2004.