Under this program, an eligible school or library identifies goods or services it needs and submits a request for competitive bids to the Universal Service Administrative Company (USAC). USAC posts these requests on its website for vendors to bid on. After reviewing the vendors' bids, the school or library selects the most cost-effective eligible products and services using price as the primary factor. It then applies to USAC for approval for the desired purchases. Next, USAC issues funding commitments to eligible applicants. When a vendor provides the selected services, either the vendor or the applicant submits requests to USAC for reimbursement of the approved discounts.