Schools and Libraries

Step 3: Run an Open and Fair Competitive Bidding Process

Form 470 Information

Applicants must ensure an open and fair competitive bidding process to receive Schools and Libraries support.

The competitive bidding process begins when the Description of Services Requested and Certification Form (Form 470) is posted to USAC's website. In Form 470, the applicant describes the types of products and services desired and for which bids are accepted. The applicant must conduct a fair and open competitive procurement in which a service provider is selected and products and/or services are ordered and reported on the Services Ordered and Certification Form (Form 471).

The applicant must be ready to accept bids once the Form 470 is posted on the USAC website. The applicant also must take an affirmative role in evaluating such bids. Applicants may not delegate the evaluation role to anyone associated with a service provider.

Request for Proposals. A Request for Proposals (RFP) is not required, but it is a good idea to have one. An RFP describes the project undertaken, with sufficient details to inform potential bidders of the scope, location, and any other requirements for the project. If an RFP exists, the applicant must indicate on Form 470 where the RFP is available, whether on a website or from a contact person. If state or local procurement regulations impose additional requirements, such as eligibility requirements for bidders, these requirements must also be noted on Form 470.

Competitive Bidding. The goal of competitive bidding is to have as many bidders as possible respond to a Form 470, RFP, or other solicitation method so that the applicant can receive better service and lower prices.

The competitive bidding process must be fair and open. "Fair" means that all bidders are treated the same and that no bidder has advance knowledge of the project information. "Open" means there are no secrets in the process – such as information shared with one bidder but not with others – and that all bidders know what is required of them. The Form 470, RFP, or other solicitation method should be clear about the products, services, and quantities the applicant is seeking and must be based directly on the applicant's technology plan. In addition, the applicant must avoid using generic or encyclopedic service descriptions on their Form 470, RFP, or other solicitation method. Using a generic RFP or Form 470 does not comply with Federal Communications Commission (FCC) competitive bidding requirements. Also, using an encyclopedic RFP or Form 470 does not comply with FCC competitive bidding requirements. Such generic or encyclopedic requests will inhibit service providers from composing a responsive bid without additional information or insight into the applicant's bid solicitation.

  • Examples of a generic Form 470 or service description may include "all eligible services," "any E-Rate products," or "all telecom services". 
  • Examples of an "encyclopedic" service description are replications of the entire Eligible Services List or a "grocery" list of services that does not cover a specific service or product.

In order to be sure that a fair and open competition is achieved, any marketing discussions held with service providers must be neutral, so as not to taint the competitive bidding process. That is, the applicant should not have a relationship with a service provider prior to the competitive bidding that would unfairly influence the outcome of a competition or would furnish the service provider with "inside" information or allow it to unfairly compete in any way. For example, a conflict of interest exists when the applicant's consultant is associated with a service provider that is selected and is involved in determining the services sought by the applicant and the selection of the applicant's service provider(s).


Last modified on 3/31/2008