E-Rate Service Provider Selection
As outlined in previous HWC Consultants blog posts, once a Form 470 is filed, service providers can review the posted information and submit bids. In order to properly select a service provider, it is important to keep the following considerations in mind.
All applicants must keep a bid matrix, which compares all bids received. Keep in mind that USAC has a template applicants can utilize, as does HWC Consultants. Make sure that you save your bidding communications and documents for ten years, per E-Rate’s documentation retention requirements.
Your bid matrix should be designed to help you compare bids and make your final service provider determination. Although the factors and weights of the bid matrix can be individualized, cost must always be the highest rated factor. If any bidders are disqualified, ensure the disqualification criteria is explicitly listed on Form 470 and that you list the relevant disqualification criteria in the bid matrix.
USAC prefers that applicants receive more than one bid. If you only receive one bid, you should ask for more bids and note that you attempted to do so on the bid matrix. Applicants must ensure that the one bid is still cost effective. If you do not receive any bids, you can request bids.
What about if you are already in contract or month-to-month with a provider? An invoice from your current provider can be utilized as your “bid” if need be, and you can certainly request that your current provider submit a bid as well.
All bidders must have, or be willing to register for, a SPIN (Service Provider Identification Number), which is assigned by USAC via a simple online registration process. Also known as the service provider’s 498 ID, this will be needed by schools and libraries when they fill out their Form 471. Without a SPIN, bidders are ineligible to provide any services.
You will want to notify the provider with the winning bid as soon as possible. However, keep in mind that competitive bidding is 28 days, so you can’t notify any bidders or sign any contracts until the Allowable Contract Date (ACD). Remember to keep all communications with providers!
If you are going under contract, as opposed to month-to-month service, make sure that providers send you a contract for signature with the terms submitted on the bid. Make sure the contract is signed and ready to upload to EPC as soon as the Form 471 window opens.
In certain states, you may be eligible for a state master contract. A state master contract is a contract that is competitively bid and put in place by a state government entity for use by an eligible entity. The signed state master contract between the state and the service provider meets the FCC signed contract requirement.
If the applicant selects the state master contract as the most cost-effective option, applicable provisions of the state contract law, state and local procurement laws, and the state master contract must be followed. If the state master contract submitted its own Form 470, the applicant may cite that on its Form 471, or the applicant may use its own Form 470.
As you can see, it’s important that E-Rate competitive bidding rules must be followed and applicants must be aware of rules and timelines when selecting a service provider. Should you determine that you require consulting or assistance with your application for the E-Rate program, reach out to us at HWC Consultants. We provide E-Rate consulting services, telecom auditing, and telecom project management services.
