The FCC should ensure bidding is competitive on a contract to man...
The FCC should ensure bidding is competitive on a contract to manage the E-rate program (CD May 2 p2), Sen. Sam Brownback, R-Kan., told Chairman Kevin Martin in a Friday letter. Bids on the contract closed Monday and a…
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spokesman said USAC wouldn’t comment on the number of bidders. Last week Brownback asked Martin to send his office by close of business Friday an addendum to the memorandum of understanding between the commission and the Universal Service Administrative Co. Brownback’s office said Monday it had not received the MOU addendum. “We are working with Sen. Brownback’s office to follow up on additional information they requested,” an FCC spokesman said. According to Brownback, companies interested in bidding have had trouble obtaining documents on the contract from USAC, a non-profit set up to manage the fund. “There appears to be great interest in this contract that could ultimately be worth over $200 million,” Brownback told Martin. “The fact that USAC originally attempted to enter into a sole-source contract with [incumbent] Solix raises further concerns about USAC’s impartiality and interest in a competitive bidding process,” he said. “I take great umbrage in your insinuation that I am placing ‘political pressure’ on FCC to interfere with this process because of ‘one disgruntled prospective bidder,'” Brownback added. “I do not care which bidder ultimately wins this contract, as long as every competitor gets a fair chance to participate.” More competition is better, he said, calling a “well-written” proposal inviting competition “the only way to achieve the goal of reducing the improper payments, and eliminating waste, fraud and abuse in these programs.”