USACRural Health CareTelecommunications ProgramStep 2: Prepare For Competitive Bidding and Request Services
Fair & Open Process

Fair & Open Process

Applicants must ensure they conduct a fair and open competitive bidding process.

In the FCC Form 465 (Request for Services), the applicant describes the types of products and services desired. The competitive bidding process begins when the FCC Form 465 is approved and posted on the USAC website. The applicant must be ready to accept bids once the FCC Form 465 is posted. Service providers will review the applicant’s FCC Form 465 using the RHC Posted Services Tool on the USAC website and submit bids to provide the requested products and services. Applicants report the selected products and services on the FCC Form 466 (Funding Request Form)

Conducting a Fair and Open Competitive Bidding Process

The goal of the competitive bidding process is to have as many bidders as possible respond to an FCC Form 465, Request for Proposal (RFP), or other solicitation method so that the applicant can receive better service and lower prices. The applicant must take an affirmative role in evaluating bids. Applicants may not delegate the evaluation role to anyone associated with a service provider.

When reviewing bids, the applicant must conduct a fair and open competitive procurement.

  • “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.
  • “Fair” means that all bidders are treated the same and that no bidder has advance knowledge of the project information.

The FCC Form 465, RFP, or other solicitation method should be clear about the type and quantity of products and services the applicant is seeking and must be based directly on the applicant’s technology needs. In addition, the applicant must avoid using generic or encyclopedic service descriptions on their FCC Form 465, RFP, or other solicitation method. 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 FCC Form 465 or service description include “all eligible services,” “any Rural Health Care (RHC) program products,” or “all telecom services.”
  • Examples of an “encyclopedic” service description are replications of the entire Examples of Common Services list or a “grocery” list of services that does not cover a specific service or product.
  • If applicants cite a particular brand as reference, they must include the words “or equivalent,” and they must be willing to accept an alternate brand.

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. For example, the applicant should not have a relationship with a service provider prior to the competitive bidding process 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. Similarly, applicants must avoid conflicts of interest in the bidding process.

Similarly, applicants must avoid conflicts of interest in the bidding process. For example, a conflict of interest exists when the applicant or their consultant is associated with a selected service provider and is involved in determining the services sought by the applicant and the selection of the applicant’s service provider(s).