Goto Section: 54.502 | 54.504 | Table of Contents

FCC 54.503
Revised as of October 1, 2013
Goto Year:2012 | 2014
§  54.503   Competitive bidding requirements.

   (a) All entities participating in the schools and libraries universal
   service support program must conduct a fair and open competitive
   bidding process, consistent with all requirements set forth in this
   subpart.

   Note to paragraph ( a ): The following is an illustrative list of
   activities or behaviors that would not result in a fair and open
   competitive bidding process: the applicant for supported services has a
   relationship with a service provider that would unfairly influence the
   outcome of a competition or would furnish the service provider with
   inside information; someone other than the applicant or an authorized
   representative of the applicant prepares, signs, and submits the FCC
   Form 470 and certification; a service provider representative is listed
   as the FCC Form 470 contact person and allows that service provider to
   participate in the competitive bidding process; the service provider
   prepares the applicant's FCC Form 470 or participates in the bid
   evaluation or vendor selection process in any way; the applicant turns
   over to a service provider the responsibility for ensuring a fair and
   open competitive bidding process; an applicant employee with a role in
   the service provider selection process also has an ownership interest
   in the service provider seeking to participate in the competitive
   bidding process; and the applicant's FCC Form 470 does not describe the
   supported services with sufficient specificity to enable interested
   service providers to submit responsive bids.

   (b) Competitive bid requirements. Except as provided in §  54.511(c),
   an eligible school, library, or consortium that includes an eligible
   school or library shall seek competitive bids, pursuant to the
   requirements established in this subpart, for all services eligible for
   support under §  54.502. These competitive bid requirements apply in
   addition to state and local competitive bid requirements and are not
   intended to preempt such state or local requirements.

   (c) Posting of FCC Form 470. (1) An eligible school, library, or
   consortium that includes an eligible school or library seeking to
   receive discounts for eligible services under this subpart, shall
   submit a completed FCC Form 470 to the Administrator to initiate the
   competitive bidding process. The FCC Form 470 and any request for
   proposal cited in the FCC Form 470 shall include, at a minimum, the
   following information, to the extent applicable with respect to the
   services requested:

   (i) A list of specified services for which the school, library, or
   consortia including such entities, anticipates they are likely to seek
   discounts; and

   (ii) Sufficient information to enable bidders to reasonably determine
   the needs of the applicant.

   (2) The FCC Form 470 shall be signed by the person authorized to order
   eligible services for the eligible school, library, or consortium
   including such entities and shall include that person's certification
   under oath that:

   (i) The schools meet the statutory definition of "elementary school" or
   "secondary school" as defined in §  54.500(c) or (k) of these rules, do
   not operate as for-profit businesses, and do not have endowments
   exceeding $50 million.

   (ii) The libraries or library consortia eligible for assistance from a
   State library administrative agency under the Library Services and
   Technology Act of 1996 do not operate as for-profit businesses and
   whose budgets are completely separate from any school (including, but
   not limited to, elementary and secondary schools, colleges, and
   universities).

   (iii) All of the individual schools, libraries, and library consortia
   receiving services are or will be covered by:

   (A) Technology plans for using the services requested in the
   application; or

   (B) No technology plan is required by Commission rules.

   (iv) To the extent a technology plan is required by §  54.508, the
   technology plan(s) has/have been/will be approved consistent with
   §  54.508.

   (v) The services the school, library, or consortium purchases at
   discounts will be used primarily for educational purposes and will not
   be sold, resold, or transferred in consideration for money or any other
   thing of value, except as allowed by §  54.513.

   (vi) Support under this support mechanism is conditional upon the
   school(s) and library(ies) securing access to all of the resources,
   including computers, training, software, maintenance, internal
   connections, and electrical connections necessary to use the services
   purchased effectively.

   (vii) All bids submitted for eligible products and services will be
   carefully considered, with price being the primary factor, and the bid
   selected will be for the most cost-effective service offering
   consistent with §  54.511.

   (3) The Administrator shall post each FCC Form 470 that it receives
   from an eligible school, library, or consortium that includes an
   eligible school or library on its website designated for this purpose.

   (4) After posting on the Administrator's website an eligible school's,
   library's, or consortium's FCC Form 470, the Administrator shall send
   confirmation of the posting to the entity requesting service. That
   entity shall then wait at least four weeks from the date on which its
   description of services is posted on the Administrator's website before
   making commitments with the selected providers of services. The
   confirmation from the Administrator shall include the date after which
   the requestor may sign a contract with its chosen provider(s).

   (d) Gift restrictions. (1) Subject to paragraphs (d)(3) and (4) of this
   section, an eligible school, library, or consortium that includes an
   eligible school or library may not directly or indirectly solicit or
   accept any gift, gratuity, favor, entertainment, loan, or any other
   thing of value from a service provider participating in or seeking to
   participate in the schools and libraries universal service program. No
   such service provider shall offer or provide any such gift, gratuity,
   favor, entertainment, loan, or other thing of value except as otherwise
   provided herein. Modest refreshments not offered as part of a meal,
   items with little intrinsic value intended solely for presentation, and
   items worth $20 or less, including meals, may be offered or provided,
   and accepted by any individuals or entities subject to this rule, if
   the value of these items received by any individual does not exceed $50
   from any one service provider per funding year. The $50 amount for any
   service provider shall be calculated as the aggregate value of all
   gifts provided during a funding year by the individuals specified in
   paragraph (d)(2)(ii) of this section.

   (2) For purposes of this paragraph:

   (i) The terms "school, library, or consortium" include all individuals
   who are on the governing boards of such entities (such as members of a
   school committee), and all employees, officers, representatives,
   agents, consultants or independent contractors of such entities
   involved on behalf of such school, library, or consortium with the
   Schools and Libraries Program of the Universal Service Fund (E-rate
   Program), including individuals who prepare, approve, sign or submit
   E-rate applications, technology plans, or other forms related to the
   E-rate Program, or who prepare bids, communicate or work with E-rate
   service providers, E-rate consultants, or with USAC, as well as any
   staff of such entities responsible for monitoring compliance with the
   E-rate Program; and

   (ii) The term "service provider" includes all individuals who are on
   the governing boards of such an entity (such as members of the board of
   directors), and all employees, officers, representatives, agents, or
   independent contractors of such entities.

   (3) The restrictions set forth in this paragraph shall not be
   applicable to the provision of any gift, gratuity, favor,
   entertainment, loan, or any other thing of value, to the extent given
   to a family member or a friend working for an eligible school, library,
   or consortium that includes an eligible school or library, provided
   that such transactions:

   (i) Are motivated solely by a personal relationship,

   (ii) Are not rooted in any service provider business activities or any
   other business relationship with any such eligible school, library, or
   consortium, and

   (iii) Are provided using only the donor's personal funds that will not
   be reimbursed through any employment or business relationship.

   (4) Any service provider may make charitable donations to an eligible
   school, library, or consortium that includes an eligible school or
   library in the support of its programs as long as such contributions
   are not directly or indirectly related to E-rate procurement activities
   or decisions and are not given by service providers to circumvent
   competitive bidding and other E-rate program rules, including those in
   paragraph (c)(2)(vi) of this section, requiring schools and libraries
   to pay their own non-discount share for the services they are
   purchasing.

   [ 75 FR 75412 , Dec. 3, 2010, as amended at  76 FR 56302 , Sept. 13, 2011]

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Goto Section: 54.502 | 54.504

Goto Year: 2012 | 2014
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