BidtallyE-rate bid evaluation matrix: price as the primary factor
Every E-rate applicant that receives bids must evaluate them before selecting a provider, and the evaluation has to show that the price of the eligible products and services was the primary factor. The FCC rule (47 CFR 54.503(c)(2)(ii)(B)) says applicants may consider other relevant factors, but "price must be the primary factor considered". This page explains what that means in numbers, with USAC's own examples.
1. The weighting rule
- Price of eligible products and services must weigh more than any other single factor. It does not have to be more than 50%.
- Price may not include ineligible costs. Ineligible costs may be scored only in a separate factor that weighs less than price.
- In a multi-round evaluation, add up the price points of all rounds: the total must still be larger than any other factor's total.
- Disqualification requirements (for example a state procurement registration or a SPIN) must be announced on the Form 470 or RFP in advance and are met / not met, not scored.
2. USAC's example matrices
| Example 1 factor | Weight | Example 2 factor | Weight |
|---|---|---|---|
| Price of eligible products and services | 30% | Price of eligible products and services | 50% |
| Prior experience | 25% | Prior experience | 20% |
| Personnel qualifications | 20% | Ineligible cost factors | 15% |
| Management capability | 15% | Management capability | 10% |
| Environmental objectives | 10% | Local vendor | 5% |
Both are compliant: in example 1 price (30%) weighs more than prior experience (25%); in example 2 price (50%) weighs more than the ineligible cost factor (15%). USAC's multi-round example gives price 50 points in round 1 and 40 in round 2, 90 in all, more than any other factor.
3. How price points are usually computed
A common method gives the lowest qualified bid the full price weight and every other bid a share: price points = price weight × lowest eligible price ÷ this bid's eligible price. Other factors are scored on a fixed scale (for example 0–10) and weighted. In Bidtally's made-up sample, Valley Fiber bid $54,000 against a lowest qualified bid of $47,500: 30 × 47,500 ÷ 54,000 = 26.39 price points, and 82.89 points in total, the highest score, so it may win although it is not the cheapest.
4. The 28-day wait
You may not select a provider or sign a contract until at least 28 days after the Form 470 was certified (47 CFR 54.503(c)(4)); USAC publishes this as the allowable contract date. A new RFP document or an amendment restarts the 28 days, and a bid due date before the allowable contract date cuts the bidding window short.
5. Why it matters
In FY2025 USAC denied 370 funding requests from 205 applicants, worth $50.7 million before discounts, with reasons that cite the price factor, competitive bidding, the 28-day wait or the Form 470 (USAC FRN Status open data, read 30 October 2026). Keep the Form 470, the RFP, every bid, the scoring sheets and the contract for at least 10 years after the last day of service (47 CFR 54.516).
Check your own bids
Bidtally checks the weights, the 28-day wait and the selection, scores every bid and writes the memo you sign, in your browser. Try it free with the sample or see pricing.