E-Rate for IT and network vendors

E-Rate is the FCC's Schools and Libraries program. It gives eligible schools and libraries in every state discounts on internet access and on the networks inside their buildings. It is run by the Universal Service Administrative Company (USAC). For small network, Wi-Fi and connectivity firms, it is one of the steadiest public markets in the US, because thousands of school districts and libraries go through the same process every year.

The school or library is your customer. E-Rate pays part of the bill, with discounts that depend on poverty levels and whether the area is rural.

How the cycle works

1. The applicant posts FCC Form 470. This describes the services or equipment it wants, sometimes with an attached RFP. It is filed in USAC's E-Rate Productivity Center (EPC) and becomes public.
2. The 28-day wait. The applicant must wait at least 28 days after the 470 is certified before it picks a vendor and signs a contract. This is the window in which you bid. The first day it may sign is called the allowable contract date.
3. Bid evaluation and contract. The applicant evaluates bids, chooses one and signs a contract. State and local procurement rules apply on top of E-Rate's rules, so some applicants run a longer, formal tender.
4. The applicant files FCC Form 471 during USAC's annual filing window to request funding for the contract.
5. USAC reviews and issues a funding decision. Work and invoicing follow, normally within the funding year that starts on 1 July.

Check the current filing window dates on USAC's E-Rate site, because they change each year.

Category One and Category Two

Category	What it covers
Category One	Getting data to the school or library: internet access and data transmission services, such as fiber and leased lines
Category Two	The network inside the building: internal connections such as switches, routers, wireless access points and cabling, managed internal broadband services, and basic maintenance of internal connections

Category Two spending is capped by a budget for each school or library, set over a multi-year cycle. Check current budgets and rules on USAC's site. What counts as eligible is set each year in the FCC's Eligible Services List. Read it before you bid, because ineligible items must be priced separately.

What you need as a vendor

• An FCC Registration Number (FCC RN), from the FCC's registration system (CORES).
• A SPIN (service provider identification number), sometimes called a 498 ID, from filing FCC Form 498 with USAC. Applicants cannot cite you on a Form 471 without it.
• The annual Service Provider Annual Certification (FCC Form 473) for each funding year, before USAC will pay your invoices.
• To check you are not barred by the FCC's red light rule, which holds up funding for parties with debts owed to the FCC.

Register early, so your SPIN is in place before you need it.

Competitive bidding rules

These rules protect the program. Breaking them can cost the applicant its funding and you the money already paid.

• Price comes first. The price of eligible products and services must be the primary factor in choosing a bid, weighted more heavily than any other single factor. Other factors, such as experience or local presence, are allowed.
• Stay out of the applicant's 470. A vendor that will bid must not help write the 470 or RFP, be the contact person on it, or take part in choosing the winner.
• Gift rules. The FCC restricts gifts from service providers to applicant staff, all year, not only during bidding. There are narrow exceptions for small items, but the safe rule is to give nothing. Check the current gift rules on USAC's site.
• Lowest corresponding price. You must offer the applicant a price no higher than the lowest you charge similarly situated non-residential customers for similar services.
• Keep records. Both sides must keep bidding, contract and delivery documents for years after the service ends. Check USAC's current retention period.

Getting paid: SPI and BEAR

The applicant chooses how the discount reaches it:

• SPI (Service Provider Invoice, FCC Form 474). You bill the applicant only its share and invoice USAC for the discount. This is better for the school's cash flow, but you wait for USAC.
• BEAR (Billed Entity Applicant Reimbursement, FCC Form 472). The applicant pays you in full and claims the discount back from USAC.

Confirm the method before you sign, and match invoices to the funded line items.

Where Form 470s are posted

Certified 470s are public in EPC and on USAC's Open Data platform, where you can search by state, service type and date. Some state E-Rate coordinators and consortia also publish lists. Search often: the 28-day window passes quickly.

StackBid reads open E-Rate Form 470s from USAC's open data daily and lists each one with its state and kind of work, and the allowable contract date as its closing date. For district tenders outside E-Rate, see selling to universities, schools and hospitals and selling IT to local government.

Common questions

Can a small IT firm bid on E-Rate work?

Yes. Many E-Rate contracts are for single schools, small districts or libraries, and suit local network firms. You need an FCC registration number and a SPIN from USAC before an applicant can request funding for your contract.

How long do I have to respond to a Form 470?

The applicant must wait at least 28 days after certifying its 470 before choosing a vendor. Some set a later bid deadline in an RFP, so always check the 470 and any attached documents for the actual due date.

Is the lowest price always the winner in E-Rate?

Not always. Price of the eligible products and services must be the primary factor, weighted more than any other single factor, but applicants may also score things such as experience, references and support.