Step 3: Sign Service Agreement With Applicant and Certify Compliance

Once the applicant has chosen the most cost-effective bid for one or more of the equipment/services requested on their FCC Form 470, the service provider can assist the applicant with the remainder of the application process.

Understand the Rules Around Contracts

Except for services to be delivered under tariffed or month-to-month arrangements, applicants must have a contract or other legally binding agreement with the service provider before signing and submitting a completed FCC Form 471 (Description of Services Ordered and Certification Form). Applicants may sign multi-year contracts or enter into a contract with voluntary extensions.

Please note the following:

  • If no contract is signed, there must still be a legally binding agreement in place between the applicant and the service provider. Services provided are considered contracted services, even if they are provided under tariff or on a month-to-month basis.
  • A contract or legally binding agreement must be in place before an FCC Form 471 may be filed.
  • Eligible products and services that fall under the Internal Connections and Basic Maintenance of Internal Connections service types are usually provided under contract and not under month-to-month or tariff arrangements.
  • In general, non-recurring services must be delivered and installed in a 15-month window after the start of a funding year (i.e., between July 1 and the following year’s September 30). Keep this in mind when determining the contract expiration date for these services. Special construction, which is also a non-recurring service, must be delivered and the network must be lit or in use by June 30 of the applicable funding year.

Review the posted information on contracts, state master contracts, and state replacement contracts. In the case of state replacement contracts, states (and applicants that rely on the state replacement contracts) must follow the specific steps for services provided under those contracts to be eligible for discounts.

After reviewing contract information, take the following steps.

File an FCC Form 473

Service providers must file an FCC Form 473 (Service Provider Annual Certification (SPAC) Form) to certify their compliance with E-Rate program rules. A SPAC Form must be filed for each 498 ID/SPIN, and for every funding year, the service provider participates in E-Rate.

  • SPAC Forms may be filed once the application filing window opens for the upcoming funding year.
  • Service providers must have filed a SPAC Form in order for USAC to pay FCC Form 472 (BEAR) or FCC Form 474 (SPI) invoices.
  • SPAC Forms are filed in EPC. Service providers who need to file a SPAC Form for an application from 2015 or prior should create a customer service case.
  • To verify that USAC has successfully processed a SPAC Form, navigate to EPC > Records > Service Providers, then search the service provider’s 498 ID/SPIN or name and look for the “FCC Form 473/SPAC Filed” field. Alternatively, you can use the E-Rate Service Provider Download Tool to view the funding years for which a SPAC Form was certified for a particular 498 ID/SPIN.

Find more information about the FCC Form 473 filing process in the FCC Form 473 User Guide.

Assist the Applicant with FCC Form 471

The FCC Form 471 (Description of Services Ordered and Certification Form) is the form through which E-Rate applicants request E-Rate program support. This form must include a detailed description of the equipment and services to be received. You can offer to assist applicants with filling out and answering questions about the “Funding Requests” section of the FCC Form 471.

As the applicant completes FCC Form 471, you may want to provide them with information such as:

  • Their internet connections and their speeds
  • Key form deadlines
  • Any mistakes noted in the FCC Form 471 Receipt Acknowledgment Letter (RAL) that USAC sends after an FCC Form 471 is certified
  • Questions sent by Program Integrity Assurance (PIA) reviewers following USAC’s receipt of FCC Form 471 (except for questions about the applicant’s service provider selection process)

USAC understands that some of the information requested during application review could be proprietary or sensitive. Applicants and service providers can request confidential treatment of information under FCC rules.

Next Step

Once applicants have completed PIA review and USAC has issued funding decisions in one or more Funding Commitment Decision Letters (FCDLs) in EPC, you can begin preparations to provide the approved, eligible discounted equipment/services.