Impact of Modernization on the E‐rate Competitive Bidding Process: Funding Years 2017 to 2021

To receive E-Rate support, applicants must follow specific procedures established by the Federal Communications Commission and use an online portal called EPC. Applicants use the EPC system to notify vendors of Requests for Proposals (RFPs), report the results of their local competitive bidding process, and submit funding requests to USAC, the E‐rate program administrator. The purpose of this white paper is to provide data and applicant feedback about the performance of the current system. Data transparency was emphasized when the FCC updated the E‐rate program in 2014. The FCC required that winning bid information be made public, including names of winning vendors, unit pricing, quantities, model numbers, and other details about the goods and services being delivered with support from the E-rate program. The FCC’s stated intent was to increase competition and drive down prices. Analyzing the publicly available bidding information, we can now see the results. The level of competition has increased significantly while the price of goods and services has dropped dramatically. From 2017 to 2021:

• E‐rate applicants collectively received 419,972 bids and awarded 144,625 contracts.
• The number of proposals received per contract increased 26% from 2.57 to 3.23.
• The percentage of contracts awarded based on less than two bids dropped from 41% to 25%.
• The median price per megabit paid by K‐12 schools dropped 71% from $4.80 to $1.39.
• The average price per wireless access point dropped 49% from $1,414 to $716 per unit.
• The portion of requests tied to non‐negotiated contracts dropped to a record low of 3%.