Updated January 2018
A consortium (plural consortia or consortiums) is a group of E-rate eligible entities that seeks competitive bids or E-rate funding for eligible services on behalf of its members. Schools and/or libraries can form consortia for the purposes of the Schools and Libraries (E-rate) Program to aggregate demand in order to lower prices and promote more efficient use of shared facilities.
Some consortia, for example, library consortia, may have been formed originally for reasons unrelated to the E-rate Program.
One entity should be designated as the lead member of the consortium. The consortium leader may or may not be eligible for discounts.
The consortium leader is responsible for ensuring that necessary certifications are made and for responding to USAC inquiries on behalf of the consortium members during both pre- and post-commitment processes. (USAC's issuance of a Funding Commitment Decision Letter (FCDL) is the event that separates pre-commitment from post-commitment.)
The consortium leader also has certain record-keeping responsibilities and, unless membership in the consortium is specifically required by state statute or authorized in some other way, must retain a Letter of Agency (LOA) or other documentation from each consortium member to demonstrate that that member was aware of, and had expressly authorized, the action that would be taken on its behalf by the consortium leader.
If services are shared by both eligible and ineligible entities, the consortium lead member must perform a cost allocation to ensure that only the eligible entities receive the benefit of discounted services.
When the consortium leader makes the FCC Form 471 certifications, the leader is certifying that, among other things:
The leader may be asked during a Program Integrity Assurance (PIA) review to provide documentation that supports these certifications.
The consortium leader is also responsible for ensuring that the services for which the consortium requests discounts are the services that the consortium is authorized to procure on behalf of its members. Failure to do so may result in the denial or modification of funding requests for consortium members.
The consortium leader must collect from each consortium member a signed FCC Form 479, Certification by Administrative Authority to Billed Entity of Compliance with the Children's Internet Protection Act, to establish that member's status under the Children's Internet Protection Act (CIPA). After all FCC Forms 479 have been collected, the consortium leader can complete the FCC Form 486, Receipt of Service Confirmation and Children's Internet Protection Act and Technology Plan Certification Form.
The FCC Form 479 is not required if the consortium requested funding only for services to which CIPA does not apply.
Records must be retained for a period of ten years after the last day of service delivered for a particular funding year and may be requested during an audit or other review process.