Federal Communications Commission

DA 13-1247

Before the
Federal Communications Commission
Washington, DC 20554
In the Matter of
Request for Review of a Decision of the
Universal Service Administrator by
Harbor Beach Community School District
Harbor Beach, MI
Schools and Libraries Universal Service
Support Mechanism

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File No. SLD-553882
CC Docket No. 02-6

ORDER
Adopted: May 31, 2013

Released: May 31, 2013

By the Chief, Telecommunications Access Policy Division, Wireline Competition Bureau:
1.
In this Order, we grant a request for review from Harbor Beach Community School District
(Harbor Beach)1 of a decision of the Universal Service Administrative Company (USAC) under the E-rate program (more formally known as the schools and libraries universal service support program) for funding year 2007.2 In its decision, USAC found that the vendor selected to provide eligible services under the E-rate program, Zimco, Incorporated/Air Advantage, LLC (Zimco/Air Advantage), assisted
Harbor Beach in filing its FCC Form 470; and therefore, denied Harbor Beach’s funding request.3
2.
Under the E-rate program, eligible schools, libraries, and consortia that include eligible schools and libraries may apply for universal service support for eligible services.4 E-rate program rules provide that these entities must seek competitive bids for services eligible for support.5 In accordance with the Commission’s competitive bidding rules, applicants must submit for posting on USAC’s website an FCC Form 470 requesting discounts for E-rate eligible services, such as tariffed telecommunications services, month-to-month Internet access, or any services for which the applicant is seeking a new contract.6 The applicant must describe the requested services with sufficient specificity to enable potential service providers to submit bids for such services.7 After submitting an FCC Form 470, the
1

See Letter from Ronald L. Kraft, Harbor Beach Community School District, to Marlene H. Dortch, Secretary,
Federal Communications Commission, CC Docket No. 02-6 (filed Sept. 24, 2010) (relating to application number
553882, funding request number (FRN) 1527997).
2

Section 54.719(c) of the Commission’s rules provides that any person aggrieved by an action taken by a division of
USAC may seek review from the Commission. 47 C.F.R. § 54.719(c).
3

See Letter from USAC, Schools and Libraries Division, to Steve Hill, Harbor Beach Community School District
(dated Aug. 16, 2010) (USAC Funding Commitment Decision Letter (FCDL)).
4

47 C.F.R. §§ 54.501-54.502 (2007); see also 47 C.F.R. §§ 54.501-54.502 (2012).

5

47 C.F.R. § 54.504 (2007); see also 47 C.F.R. § 54.503 (2012).

6

47 C.F.R. § 54.504(b) (2007); see also 47 C.F.R. § 54.503(c) (2012).

7

47 C.F.R. § 54.503(c) (1)(ii) (2012).

Federal Communications Commission

DA 13-1247

applicant must wait 28 days before making commitments with the selected service providers.8 The
Commission’s rules require applicants to carefully consider all submitted bids prior to entering into a contract, and that the price of eligible products and services must be the primary factor in selecting the winning bid.9 Once the applicant has selected a provider and entered into a service contract, the applicant must file an FCC Form 471 requesting support for eligible services.10 USAC assigns an FRN to each request for discounted services and issues FCDLs approving or denying the requests for discounted services.11 3.
The competitive bidding process must be fair and open and must not have been compromised because of improper conduct by the applicant, service provider, or both parties.12 Under the
Commission's rules, a service provider participating in the competitive bidding process cannot be involved in the preparation of the entity's technology plan, FCC Form 470 or RFP.13 In addition, all
8

47 C.F.R. § 54.504(b) (4)