• In order to apply for discounted services under the Universal Service Fund (or "E-rate"), schools and libraries must demonstrate that the pre-discount prices/rates were arrived at through a competitive bid process. Many of the contracts established by the Office of General Services meet this requirement. Other contracts which were negotiated directly with manufacturers offer competitive pricing and include guidelines for contract users to negotiate best and final pricing when making larger purchases.

• OGS contracts offer competitive pricing and added value. The pre-discount price (for E-rate purposes) is the price established under these contracts or the best and final price negotiated by the school or library.

• Considering this is the price BEFORE application of the E-rate discount and the contracts were arrived at through a competitive bid process or negotiation, it makes for a great starting point for the E-rate process.

A school or library planning to file for an E-Rate discount under an OGS contract is encouraged to first post its service need on the Schools and Libraries Web site by filing its own Form 470. Once a Form 470 has been posted for 28 days, the applicant can then select an OGS contract vendor and file a funding request via a Form 471.

IMPORTANT: The "Contract Award Date" (Form 471 Item 18) on which the vendor is selected must be on or after the "Allowable Vendor Selection/Contract Date" (Form 471 - Item 17) established by the Form 470. Ideally, the applicant will document the "Contract Award Date" with a letter or purchase order indicating the applicant's intention to use that vendor in the upcoming funding year.

WARNING: Generally, an applicant should NOT use the actual OGS contract date as the Form 471 "Contract Award Date" unless the applicant has an earlier Form 470 "Allowable Vendor Selection/Contract Date." As a back up for a school or library that did not file its own Form 470 in time, certain OGS contracts may qualify under a Statewide Form 470. The Statewide Form 470 Application Numbers and Allowable Contract Dates are as follows:

ALTERNATIVE: For telephone services obtained under OGS contracts, an applicant can file a Form 471 funding request specifying "T" for tariff, rather than indicating a specific OGS contract. Similarly, for cellular, PCS, paging, and monthly Internet services obtained under OGS contracts, an applicant can file using the "MTM" (month-to-month) option.