Simultaneous SPIN Change / Service Substitution

In general, applicants are allowed to change service providers and equipment manufactures for an approved E-rate funding request.  However, there are several steps that are required, so let’s have a look at each individually.

First, a change in service provider is allowable per SLD regulations.  However, a few conditions must be satisfied in order for the change to be compliant with regulations.  In order for a SPIN change to be approved, the SLD requires that the following conditions be met: 

1.    the SPIN change is allowed under the applicant’s state and local procurement rules,
2.    the SPIN change is allowable under the terms of any contract between the applicant and its original service provider, and
3.    the applicant has notified its original service provider of its intent to change service providers.

Provided that the applicant meets these criteria, the service provider change would be allowable under E-rate regulations.  SPIN change requests consist of a simple request letter (the details of which are outlined in the link above) and are submitted to the SLD via mail, e-mail, or fax.  Generally speaking, they can take anywhere from 30 to 60 days for processing and approval.  It is important to remember that SPIN changes may only be submitted after an applicant has been approved for funding on the applicable funding request(s).

Next, the SLD does allow applicants to make minor changes to the equipment being delivered as a part of an E-rate transaction.  There are multiple requirements for an equipment change as well. The SLD outlines four major requirements for service substitutions:

1. The substituted services or products must have the same functionality as the services or products contained in the original proposal.
2. The substitution does not violate any contract provisions or state or local procurement laws.
3. The substitution does not result in an increase in the percentage of ineligible services or functions.
4. The requested change is within the scope of the controlling FCC Form 470, including any Requests for Proposal, for the original service.

As an example for the functionality requirement, an applicant may substitute one network switch for another (a different product line, a different port frame size, a different manufacturer) but may not substitute a PBX or e-mail server for an originally requested switch.  If the new products are more expensive than the ones originally requested, this is acceptable, but the amount of funding approved by the SLD will not increase for any reason.  Therefore, in most cases the customer will be responsible for the cost(s) incurred in excess of their approved funding commitment(s). 

Service substitutions are also submitted via a request letter (mail, e-mail, or fax) and also take approximately 30 to 60 days for approval.  Service substitutions and SPIN changes may be submitted at the same time when applicable.  Provided that the applicant can satisfy the criteria above, there are few regulations that would prevent applicants from submitting SPIN changes and/or service substitution requests if they so desire.