**Before the**

**Federal Communications Commission**

**Washington, DC 20554**

In the Matter of )

)

Request for Review of the )

Decision of the )

Universal Service Administrator by )

)

Crookston Public Schools ) File No. SLD-50583 102180

Crookston, Minnesota )

)

Federal-State Joint Board on ) CC Docket No. 96-45

Universal Service )

)

Changes to the Board of Directors of the ) CC Docket No. 97-21

National Exchange Carrier Association, Inc. )

**order**

**Adopted: December 20, 1999 Released: December 21, 1999**

By the Common Carrier Bureau:

1\. The Bureau has under consideration a Letter of Appeal filed by
Crookston Public Schools (Crookston) on August 30, 1999, seeking review
of a decision issued by the Schools and Libraries Division (SLD) of the
Universal Service Administrative Company (Administrator). Crookston
seeks review of SLD\'s denial of its request to change a service
provider for the 1998 funding year.[^1] This process is referred to as a
Service Provider Identification Number (SPIN) change request. For the
reasons set forth below, we deny the Letter of Appeal.

2\. Under the schools and libraries universal service support mechanism,
eligible schools, libraries, and consortia that include eligible schools
and libraries, may apply for discounts for eligible telecommunications
services, Internet access, and internal connections.[^2]

3\. In a letter to SLD, dated March 30, 1999, Crookston requested
permission to change the SPIN of the telecommunications service provider
listed in its April 15, 1998 FCC Form 471. US West was the vendor listed
on Crookston's FCC Form 471. Crookston informed SLD that the SPIN change
was necessary because it had recently learned that the school district's
business manager had signed a new contract with a different vendor
(FirsTel) for telecommunications services. On August 18, 1999, the
Administrator issued a decision denying the SPIN change. The
Administrator explained that it was SLD\'s policy to grant SPIN change
requests in only three circumstances:

1.  When the service provider refuses to participate in the E-rate
    program.

2.  When the service provider has gone out of business.

3\. When the service provider has breached its contract with the
applicant.

Because Crookston's request did not satisfy any of these conditions, its
request was denied.

4\. Upon review, we uphold the determination of the Administrator. In
the *Universal Service Order*, the Commission determined that
competitive bidding is the most efficient means for ensuring both that
eligible schools and libraries are informed about all the choices
available to them and that prices are not needlessly high. Thus, the
Commission required eligible schools and libraries to seek competitive
bids for all services eligible for discounts.[^3] In order to maintain
the integrity of the competitive bidding system, SPIN changes generally
are not permitted. Nevertheless, as noted in the Administrator's
decision, SLD, with Commission approval, determined that in a limited
number of circumstances, SPIN changes would be allowed where the
originally chosen provider was unwilling or unable to provide service.
In this case, based on Crookston's explanation to SLD, the need to make
a SPIN change was not necessitated by any default on the part of the
original vendor. Rather, it resulted from the school's own voluntary
action. Based on our finding that Crookston's SPIN change request does
not fall within one of the enumerated exceptions, we conclude that the
Administrator correctly denied the request.

5.  In its Letter of Appeal to the Commission, filed August 30, 1999,
    Crookston characterizes the need for the SPIN change differently
    than it did in its letter to the Administrator. In the instant
    Letter of Appeal, Crookston states that it erroneously identified US
    West as its service provider in the FCC Form 471, when in fact
    FirsTel was its provider. Assuming this explanation to be true, it
    does not provide a basis for granting Crookston's appeal. Crookston
    bears the responsibility for reviewing the forms it files with SLD
    for any discrepancies or errors. Its failure to rectify its error in
    a timely manner provides an insufficient basis for granting the
    requested relief.

6\. ACCORDINGLY, IT IS ORDERED, pursuant to authority delegated under
sections 0.91, 0.291, and 54.722(a) of the Commission's rules, 47 C.F.R.
§§ 0.91, 0.291, and 54.722(a), that the appeal filed by Crookston Public
Schools on August 30, 1999, IS DENIED.

FEDERAL COMMUNICATIONS COMMISSION

Yog R.Varma

Deputy Chief, Common Carrier Bureau

[^1]:     ^?^ Section 54.719(c) of the Commission\'s rules provides that
    any person aggrieved by an action taken by a division of the
    Administrator may seek review from the Commission. 47 C.F.R. §
    54.719(c).

[^2]: ^    ?^ 47 C.F.R. §§ 54.502, 54.503.

[^3]: *See* *Federal-State Joint Board on Universal Service*, CC Docket
    No. 96-45, Report and Order, 12 FCC Rcd. 8776, 9029, para. 480
    (1997) (*Universal Service Order*), as corrected by Errata (rel.
    June 4, 1997*), affirmed in part, reversed in part, remanded in part
    in* *Texas Office of Pub. Util. Counsel v. FCC*, 183 F. 3d 393
    (5^th^ Cir. 1999).