What is eligible for E-rate discounts?

What is eligible for E-rate discounts?

This article is designed to answer any questions you may have on the eligibility of E-rate funding for the products and services provided by the Foundation for Educational Services (FES).

FES has made every attempt to ensure the accuracy of information posted on this website. Changes to the E-rate program may occur at any time. We undertake no obligation to publicly update this information. Nor do we make any claim the information posted is complete. The Universal Service Administrative Company (USAC) has the final authority to approve eligibility and to speak on behalf of the E-rate program.

SOCS Content Management System (CMS)
USAC will only cover the Web Hosting component of a Content Management System. Costs associated with design, website creation, installation and training are not eligible for discounts.

Under the Internet Access Category of the Eligible Services List, Web Hosting is listed as needing allocation delineation between eligible and ineligible components. In order to better serve our clients, FES has established a cost allocation model that fairly defines our web hosting costs. 

FES has cost allocated the web hosting component as 57% of the total license agreement. Your total discount will based on your Free and Reduced Lunch Program as determined by USAC.

If you are filing for an E-rate discount on SOCS, you will want to list Web Hosting Services as 57% of your total yearly SOCS license cost on the Form 471. All components within the 57% are covered. However, be sure to list the “Ineligible Components” at 0%. Here is an example of a Form 471 based on a $3,500 contract. Here is an example Item 21 Attachment.

Start up Fees
100% of startup fees are eligible for E-rate funding. SOCS services with start up fees that are covered by E-rate are:

• SOCS Content Management System
• Parent Teacher Conference Registration.

 SOCS Services Not Eligible for E-rate Funding

• Email Archiving
• SOCSlockers.

Selection Requirements
Schools are not required to select the lowest cost provider when considering bids from vendors. However, according to the USAC website, “Price must be the primary factor when constructing the evaluation of bid responses.”

Application Assistance
FES continues to pro-actively research E-rate updates and pending legislation. Our legal team provides added consulting benefits. However, FES cannot assist applicants with some areas of the E-rate program. Since the E-rate program requires an applicant to conduct an open, competitive bidding process, FES cannot help write or develop a Request for Proposals (RFP) or technology plan, help an applicant prepare a Form 470, or be involved in the evaluation of bids received.

Once an applicant selects FES as a service provider, our team may assist customers in the completion of their Form 471, Item 21 Attachment, product eligibility questions and payment processes.

If you have any questions regarding E-rate funding for SOCS contact us at erate@socs.org. For more information on E-rate requirements visit the USAC website at www.universalservices.org/sl