The E-rate Process

The E-rate process can be outlined into the following steps:

First, before any form is posted or filed, an applicant develops a technology plan.  The technology plan must be drafted before any application paperwork is submitted, but it does not need to be officially approved until services start the following year.  The SLD has outlined five criteria that must be on a technology plan.  The approved technology plan must state goals and objectives, detail a professional development plan, contain a needs assessment, budget and evaluation process.  During the creation of the technology plan service providers can give only "technically neutral advice".  The technology plan must be approved by a USAC-certified technology plan approver.  The applicant must also be able to demonstrate to the SLD it will be able to pay the non-discounted portion of the total price, and that it has this money available.

Next, based on the technology plan, the applicant files the FCC Form 470 to announce that they are seeking E-rate support to purchase eligible goods and services.  The applicant will also need to comply with all local and state procurement rules and regulations.  The E-rate requirements do not trump local procurement rules, but add a layer of requirements onto the rules already in place.

When the Form 470 is posted to the SLD's website, a 28-day period begins in which interested service providers may submit proposals and bids to provide service to the applicant.

After the 28 day posting period, the applicant reviews the bids and proposals, selects a service provider, and signs a contract or service agreement.

Then the applicant submits the FCC Form 471 which tells the SLD which service provider was selected, the goods and services for which the applicant will be requesting E-rate support, and the costs of those goods and services.

Once the application has been reviewed, the SLD will issue a Funding Commitment Decision Letter, or a FCDL.  The applicant then submits the FCC Form 486 to signify that services have begun.  Finally, payment paperwork is submitted to realize the savings in E-rate discounts.

Want to know more? Read about the history of the E-rate Program and organizations overseeing the E-rate program.