Special Eligibility Conditions The following section additional requirements relating to eligible services and products. The Universal Service Administrative Company also maintains documents providing more details regarding the administration of the E-rate program on the Schools and Libraries Division website, available at . These documents are not included by reference in this Eligible Services List. Ancillary Use If a product or service includes ineligible functionality, then, in general, the proportionate cost of this functionality must be removed from funding requests through a cost allocation process. However, in certain limited cases, if any ineligible functionality is not significant and strictly ancillary to the principle uses of the product or service, the full product or service may be eligible for discounts. The following conditions are considered when evaluating whether ineligible functionality is ancillary: (1) a for the ineligible component cannot be determined separately and independently from the price of the eligible components, and (2) the specific package remains the most cost-effective means of receiving the eligible services, without regard to the value of the ineligible functionality. In addition, the applicant may not be specifically seeking one or more of the ineligible components. Funding requests that include only a single for components that contain both eligible and ineligible functionality, and fail to meet the requirements for Ancillary Use, are fully ineligible. Therefore, applicants are encouraged to utilize a cost allocation process to remove ineligible functionality whenever feasible. For further information, see . Cost Allocation If a product or service contains both eligible and ineligible features, an applicant may use cost allocation so that partial funding can be provided. Any must be based on tangible information that provides a reasonable and appropriate delineation between the eligible and ineligible components. When no cost allocation is provided for funding requests that require cost allocation, USAC will contact the applicant to request such cost allocation. See the USAC web document concerning cost allocation for additional information: Eligible Users and Educational purposes. E-rate support may be provided Locations only for eligible products or services that will be used primarily for educational purposes. Activities that are
Special Eligibility Conditions The following section additional requirements relating to eligible services and products. The Universal Service Administrative Company also maintains documents providing more details regarding the administration of the E-rate program on the Schools and Libraries Division website, available at . These documents are not included by reference in this Eligible Services List. Ancillary Use If a product or service includes ineligible functionality, then, in general, the proportionate cost of this functionality must be removed from funding requests through a cost allocation process. However, in certain limited cases, if any ineligible functionality is not significant and strictly ancillary to the principle uses of the product or service, the full product or service may be eligible for discounts. The following conditions are considered when evaluating whether ineligible functionality is ancillary: (1) a for the ineligible component cannot be determined separately and independently from the price of the eligible components, and (2) the specific package remains the most cost-effective means of receiving the eligible services, without regard to the value of the ineligible functionality. In addition, the applicant may not be specifically seeking one or more of the ineligible components. Funding requests that include only a single for components that contain both eligible and ineligible functionality, and fail to meet the requirements for Ancillary Use, are fully ineligible. Therefore, applicants are encouraged to utilize a cost allocation process to remove ineligible functionality whenever feasible. For further information, see . Cost Allocation If a product or service contains both eligible and ineligible features, an applicant may use cost allocation so that partial funding can be provided. Any must be based on tangible information that provides a reasonable and appropriate delineation between the eligible and ineligible components. When no cost allocation is provided for funding requests that require cost allocation, USAC will contact the applicant to request such cost allocation. See the USAC web document concerning cost allocation for additional information: Eligible Users and Locations Educational purposes. E-rate support may be provided only for eligible products or services that will be used primarily for educational purposes. Activities that are
DA-13-1513A1.docx