1. Contracts & Legally Binding Agreements

2. What is an E-rate Contract?
A contract under FCC E-rate rules is:
a binding agreement,
enforceable by law,
between two or more parties,
and creates an obligation to do, or not do, something.

3. What is an E-rate Contract?
Definitions and requirements are contained in each state's or territory's contract law.
“A written agreement or purchase order issued for the purchase of goods or services or a written agreement for the receipt of state or federal financial assistance.” § (2)(b), Florida Statutes

4. What is a Binding Agreement?
Evidence of a binding agreement:
Written offer from the service provider containing all the material terms and conditions and a written acceptance of that offer
After a commitment of funding, an applicant’s receipt of services consistent with the offer and with the applicant’s request for E-rate support
This is in line with the Florida definition of a contract:
“A written agreement or purchase order issued for the purchase of goods or services or a written agreement for the receipt of state or federal financial assistance.” § (2)(b), Florida Statutes
That would cover a purchase order or a service request in CSAB, for example.

5. What is Not a Binding Agreement?
A verbal offer and/or acceptance will not be considered evidence of the existence of a legally binding agreement.

6. Example of Legally Binding Agreement
Offer:
A bid for the services that includes all material terms and conditions provided in response to an FCC Form 470
Acceptance:
An from the applicant telling the service provider the bid was selected

7. Compliance: Contracts & Month to Month (MTM) Service Agreements
Adhere to scope of procurement and contract when developing.
Contract legally binding agreement should be dated.

8. Examples: Acceptable Standards
Examples of acceptable standards for applicant signature and date in a contract are:
Applicant handwritten signature and signature date
Date contract awarded contained in the body of the contract
Date contract awarded in the opening statements of the contract

9. Compliance: Minimums
A minimum of a legally binding agreement must be in place at the time a referencing FCC Form 471 is filed.
Contract and amendments must be executed before services start and preferably before a referencing FCC Form 471 is filed.
TIP: Maintain dated record of determinations and legally binding documents.

10. Minimum Documents to Retain
See audit checklist
All related competitive bidding documents.
Contracts for supported services.
Amendments or addenda to contracts.
List of all service providers supplying discounted services including contact information.
Additionally, you should have the following available to answer questions: Person who managed the bidding and award process