FCC Issues Contract to Evaluate E-Rate Program
The FCC has given a nonprofit consulting group a contract worth up to $750,000 to see if the Commission can improve how it runs the E-rate program, we have learned. The study, recommended by the FCC’s inspector general, comes amid criticism of the E-rate program by Congress (CD Sept 23 p5). The consulting group, the National Academy of Public Administration (NAPA), is made up of former federal govt. officials who assist federal agencies, congressional committees, state and local govts.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The decision to conduct a study doesn’t mean the agency is critical of the administration by the Universal Service Administrative Co. (USAC), an FCC official said. The FCC wants to find out if the current process can be improved and how other federal agencies handle such a multibillion-dollar grant program, he said. There are advantages to the current system, including that USAC has 8 years’ experience; but there also has been criticism, so it’s best to get an analysis by an outside expert, the official said. “We wanted to get an objective view,” said another.
NAPA will be given $400,000 for an analysis of the current system and alternatives used by others, a process that’s expected to take 5-6 months. The FCC has the option of paying $350,000 for a 2nd phase in which NAPA would make specific recommendations for improvements if required. FCC Chmn. Powell signed the contract a few days ago, it was learned. One FCC official emphasized that the issue isn’t that the FCC thinks USAC isn’t operating properly, but rather the agency wants to be sure “we're asking all the right questions,” in light of recent criticism of the program. “Obviously, we will ask if the current structure is the best or would an alternative structure be better,” he said.
Powell told USAC CEO Lisa Zaina of the study in a March letter that asked her to make USAC representatives available. “In light of recent events and the public attention focused on these issues, I believe it is important to create a process that will allow for an objective high level review of the program,” Powell said in the letter. He said the review is expected to “strengthen the effectiveness of USAC, the Commission’s oversight, and ultimately the program.” The E-rate, part of the universal service program, helps fund projects to connect schools and libraries to the Internet.
“We welcome any fair and independent review of our administration and our relationship with the FCC that will strengthen the good work we do,” said Zaina.