Goto Section: 54.502 | 54.504 | Table of Contents
FCC 54.503
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 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 bids 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:
(i) A list of specified services for which the school, library, or
consortium requests bids;
(ii) Sufficient information to enable bidders to reasonably determine the
needs of the applicant;
(iii) To the extent an applicant seeks the following services or
arrangements, an indication of the applicant's intent to seek:
(A) Construction of network facilities that the applicant will own;
(B) A dark-fiber lease, indefeasible right of use, or other dark-fiber
service agreement or the modulating electronics necessary to light dark
fiber; or
(C) A multi-year installment payment agreement with the service provider for
the non-discounted share of special construction costs;
(iv) To the extent an applicant seeks construction of a network that the
applicant will own, the applicant must also solicit bids for both the
services provided over third-party networks and construction of
applicant-owned network facilities, in the same request for proposals;
(v) To the extent an applicant seeks bids for special construction
associated with dark fiber or bids to lease and light dark fiber, the
applicant must also solicit bids to provide the needed services over lit
fiber; and
(vi) To the extent an applicant seeks bids for equipment and maintenance
costs associated with lighting dark fiber, the applicant must include these
elements in the same FCC Form 470 as the dark fiber.
(2) The FCC Form 470 shall be signed by a person authorized to request bids
for eligible services for the eligible school, library, or consortium,
including such entities.
(i) A person authorized to request bids on behalf of the entities listed on
an FCC Form 470 shall certify under oath that:
(A) The schools meet the statutory definition of “elementary school” or
“secondary school” as defined in § 54.500 of these rules, do not operate as
for-profit businesses, and do not have endowments exceeding $50 million.
(B) 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 have budgets that are
completely separate from any school (including, but not limited to,
elementary and secondary schools, colleges, and universities).
(C) 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.
(ii) A person authorized to both request bids and order services on behalf
of the entities listed on an FCC Form 470 shall, in addition to making the
certifications listed in paragraph (c)(2)(i) of this section, certify under
oath that:
(A) 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.
(B) 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 Web site designated for this purpose.
(4) After posting on the Administrator's Web site an eligible school,
library, or consortium 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 Web site 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, 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)(i)(C) of
this section, requiring schools and libraries to pay their own non-discount
share for the services they are purchasing.
(e) Exemption to competitive bidding requirements. An applicant that seeks
support for commercially available high-speed Internet access services for a
pre-discount price of $3,600 or less per school or library annually is
exempt from the competitive bidding requirements in paragraphs (a) through
(c) of this section.
(1) Internet access, as defined in § 54.5, is eligible for this exemption
only if the purchased service offers at least 100 Mbps downstream and 10
Mbps upstream.
(2) The Chief, Wireline Competition Bureau, is delegated authority to lower
the annual cost of high-speed Internet access services or raise the speed
threshold of broadband services eligible for this competitive bidding
exemption, based on a determination of what rates and speeds are
commercially available prior to the start of the funding year.
[ 75 FR 75412 , Dec. 3, 2010, as amended at 76 FR 56302 , Sept. 13, 2011; 79 FR 49199 , Aug. 19, 2014; 80 FR 5989 , Feb. 4, 2015]
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Goto Section: 54.502 | 54.504
Goto Year: 2014 |
2016
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