Florida Rural Broadband Alliance Invitation to Negotiate ITN Network Owner/Operator

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1 Florida Rural Broadband Alliance Invitation to Negotiate ITN Network Owner/Operator ITN # Released: January 22, 2015 Due: February 9, :00PM EST Contact: Michelle Boylan,

2 1.0 Notice to Prospective Respondents 1.1. Notice is hereby given that the Florida Rural Broadband Alliance ( FRBA ) will accept Proposals from qualified respondents to this Invitation to Negotiate for a Network Owner/Operator. Proposals will be accepted by FRBA until 5:00pm ET, Monday, February 9, Responses must be received in electronic PDF format only and delivered by to mboylan@flaheartland.com by the date and time indicated in Section For additional information about the FRBA, the federal award and the Wireless Broadband Middle Mile Network, please visit websites at or or ITN Process 2.1 Schedule FRBA has declared that an emergency exists and, therefore, this process will be conducted on an expedited basis After the release of the ITN on January 22, 2015, please visit or to determine if there are any changes to the instructions cited above Any questions should be ed to Michelle Boylan at mboylan@flaheartland.com. All questions must be received by January 29, 2015 at 5:00 p.m. ET Answers to all questions will be posted at or by February 2, 2015 by 5:00 p.m. ET Deadline for Submission of Proposal is February 9, 2015 by 5:00 p.m. ET. All submissions must be sent electronically through to mboylan@flaheartland.com Proposal Opening Date: February 10, :00 a.m. ET at Florida s Heartland REDI, Inc. located at 212 Pomegranate Ave. Sebring, Florida Negotiation with Respondents will begin immediately. FRBA s Co-Managers will negotiate with Respondents and meet to discuss best and final proposals Recommendation to the Opportunity Florida Executive Committee and the Florida s Heartland REDI Executive Committee will be on February 23, Once approved by both Boards, respondents will be notified Contact with any FRBA officials, including members of the Opportunity Florida Executive Committee or Florida Heartland REDI Executive Committee, other FRBA officials including the Co-Managers, except as otherwise provided herein, is prohibited and may be grounds for disqualification.

3 2.2 Addenda FRBA will record responses to inquiries and any additional submittal instructions in the form of written addenda to this ITN If revision to the ITN becomes necessary for any reason, FRBA will provide written addenda, which will be posted at or It is the responsibility of all respondents to visit or to obtain any updates on a daily basis. All respondents shall indicate by signing the Certification Page (Attachment A) that they have received and read the addenda posted on the website FRBA will utilize a selection process that evaluates proposals based on business qualifications, technical qualifications, and operational qualifications FRBA will evaluate all timely submitted, complete Proposals and will select the Respondent that, solely at the FRBA s discretion, best meets the interests of the FRBA. Any proposals received after 5:00 p.m. on February 9, 2015 will not be considered To receive an Award under this ITN, FRBA must determine, in its sole and absolute discretion that the Respondent must be a Responsive and Responsible Offeror. A Responsible Offeror shall mean an offeror who has the capability, in all respects, to perform fully the contract requirements, and the experience, integrity, perseverance and reliability, capacity, facilities, equipment, and credit, which will assure good faith performance. A Responsive Offeror shall mean a bidder or offeror who has submitted a proposal that conforms in all material respects to the invitation to bid or request for proposal FRBA maintains the right to request clarifications of information submitted of any Respondent. FRBA shall be the sole judge of its own best interest and the qualifications of Respondents If FRBA determines that additional information should be obtained from all valid Respondents, all Respondents will receive an identical request for information All decisions made by the FRBA Co-Managers will be final Final selection and negotiations will be governed by the laws and procurement regulations of FRBA and the State of Florida. The selected Respondent will be required to comply with certain requirements of the U. S. Department of Commerce s National Telecommunications and Information Administration s Broadband Technology Opportunities Program (BTOP) and any other applicable regulations FRBA reserves the right to accept responses in whole or in part, or to reject any and all submittals, or to waive any and all non substantial irregularities in submittals received whenever

4 such acceptance, rejection or waiver is in the best interest of FRBA. In the event that any or all submittals are rejected or waived, FRBA reserves the right to solicit and re advertise for other qualified respondents. Final Respondent selection and contract negotiations will be governed by FRBA s policies and procedures. The selected vendor will be required to comply with certain requirements of the Broadband Technology Opportunities Program (BTOP) as administered by the National Telecommunications Information and Administration and any other applicable regulations. No grant funding of any source remains for this project. 3.0 Preparation and Organization of Documents 3.1 Respondent shall provide and complete the following information and include them in their Proposal Submittal under the tabs identified below. Tab 1: Background and Qualifications a. Company Goals and Objectives b. Qualifications and Experience Tab 2: References a. Similar Projects b. References Tab 3: Proposed Ownership/Operation a. Proposed Compensation Options b. Potential Marketing Approach Tab 4: Additional Information a. Any documents, literature, or alternative methods that you want to provide or alternative methodology Respondent would like to recommend. 3.2 The Respondent is encouraged to include as much pertinent data and information under each section as necessary to better advance negotiations. 4.0 Issuing Entity 4.1 FRBA is equally co-owned by its Managing Members, Florida s Heartland Regional Economic Development Initiative, Inc. ( FHREDI ) and Northwest Florida Business Development Council, d/b/a/ Opportunity Florida ( Opportunity Florida ). Both of the Managing Members are 501 c(6) non-profit organizations established to promote economic development within their respective regions, South Central Florida for FHREDI and Northwest Florida for Opportunity Florida. More information on these two non-profit organizations can be found here: FHREDI: Opportunity Florida:

5 4.2 FRBA s participating communities include: FHREDI Participating Communities Southern Region Hendry County Okeechobee County DeSoto County Highlands County Glades County Unincorporated Area of Immokalee in Collier County Opportunity Florida Participating Communities Northern Region Holmes County Washington County Gadsden County Calhoun County Liberty County Gulf County Jackson County Franklin County 4.3 For additional information about FRBA, the federal award and the Wireless Broadband Middle Mile Network, please visit or Background In 2010, FRBA applied for BTOP federal grant funding, provided pursuant to the 2009 American Recovery and Reinvestment Act (ARRA) to build a Wireless Broadband Middle Mile Network (the Network ) to serve 15 counties in Northwest and South Central Florida. In August of 2010, the National Telecommunications and Information Administration (NTIA), Department of Commerce, awarded ARRA BTOP funds to FRBA to deploy the new network. The BTOP Grant awarded total funding of $23,693,665. Since award, FRBA has completed the construction of the network. The Network supports ubiquitous broadband Internet, transport, colocation and other services for local communities, governmental entities, businesses, anchor institutions and wholesale/last-mile providers within or near the Network s service area consisting of its member counties. The main purpose of the Network is to provide non discriminatory, affordable and scalable fixed broadband wireless infrastructure supporting Internet access for all constituencies, as well as last mile providers. Key to the network is the new availability to wholesale services, such as backhaul transport, IP, colocation and related services which create new supply of scarce wholesale capacity in the region. FRBA s grant invested over $21 million in network assets to provide advanced wireless broadband services across the 14-County region. These assets were primarily composed of equipment, IRU capacity and prepaid tower lease agreements used to build the regional wireless broadband system. FRBA s primary and statutory objective is to connect community anchor institutions ( CAIs ) consisting of local governments, schools, healthcare organizations, public

6 safety organizations and other organizations by the end of the BTOP grant period. Beyond these CAIs, there is a need to continue expanding advanced broadband services throughout the regions in an effort to bolster economic development and the regions overall competitiveness. 6.0 Business Opportunity The prospective Owner/Operator will be transferred all available assets and resources on the FRBA network. This includes all middle-mile capacity, transport, backhaul, IP, colocation, equipment and related assets. These substantial assets will provide the basis to allow the Owner/Operator to generate revenues and provide a large return on investment in the project. The FRBA is looking for an Owner/Operator in the sense the project is completed and operational with large amounts of capacity that can be marketed and managed with significant revenue potential. In sum, FRBA is seeking an Owner/Operator in accordance with state and federal laws. 6.1 Wholesale Services A key opportunity for the Owner/Operator will be the sale of wholesale transport, IP, colocation and related services across the FRBA network. The network has been designed predominantly as a middle-mile transport system, whereby telecommunications providers can purchase wholesale capacity in various configurations including: On-net transport between any points in the system, with the capability to provide pointto-point and multi-point services; Type 2 transport between the FRBA network and interconnection/peering points, providing tail circuits to customer premises; Transport + IP services, for smaller last-mile providers that require Internet services across the FRBA s network; Colocation and interconnection services in FRBA s Orlando and Tallahassee leased data centers, enabling carriers and last-mile providers to establish presence in these locations; Combinations of the above variations. 6.2 Value-Added Services The FRBA encourages the Owner/Operator to develop a value-added services platform on the FRBA network. The FRBA network has significant equipment assets in its data centers in Orlando and Tallahassee that should be used to further develop value-added services to be deployed on the network and within the data centers. The Owner/Operator will have full access to this equipment, which includes storage area network equipment, blade servers and related equipment. 6.3 Network Expansion The FRBA encourages the Owner/Operator to identify ways that will enable it to sustainably expand the network to promote further growth of broadband services in the North and South

7 Florida regions. In addition to the core network assets, the Owner/Operator will have access to certain in-kind assets contributed to the project, some of which are currently in use within the FRBA Network and others that be placed in use. In-kind assets include but are not limited to towers, ground space, facilities, land and other assets. 7.0 Potential Owner/Operator Requirements The network is already designed and built. The opportunities include financial, business, operational, organizational and other areas that can be negotiated with a potential Owner/Operator. The main focus should remain on the capacity and the access it provides to such a large area 15+ counties. Under Tab 3 of your proposal, please outline your proposed Ownership addressing some of the key areas and how you would utilize the existing assets and capacity. The following options would need to be addressed: 7.1 General Business and Operations The FRBA is looking for an Owner/Operator to assume business and operational functions for the FRBA network. This includes functions such as sales and marketing, network management, maintenance and repairs, field services, billing and collections, upgrades and renewal and replacement. The FRBA network provides substantial opportunity if marketed properly and at the same time ensuring long-term sustainability and growth of the network. 7.2 Financial Responsibilities The Owner/Operator will need to be responsible for all ongoing costs of operating the network and business, including, but not limited to maintenance, repairs, network operations, tower leases, in-kind build outs, general business functions such as sales, marketing, finance and accounting, insurance costs and all other business and operational costs incurred. The Owner/Operator will be responsible for providing adequate insurance on the Network to cover damage or destruction to the Network. Upon completion of an agreement, the Owner/Operator would be expected to cover the operating costs and settle any remaining debt from constructing the network. Additionally, the Owner/Operator will be responsible for all maintenance CAPEX, as well as any success-based CAPEX for network expansion into new service areas. The Owner/Operator will be responsible for managing any renewal and replacement or other recurring CAPEX program. Continued expansion to support the last mile providers and end user connections would continue to be a priority.

8 7.3 Operational Responsibilities Network Management The network must be monitored on a 24/7/365 basis and distribute network fault alarm notifications to appropriate personnel. Thresholds for alarms, network performance and service level agreements (SLAs) will be set to levels that ensure continuity and accuracy of reporting. Dispatch personnel, using established operating procedures and mindful of customer SLA provisions, to respond to network alarms, resolve network performance issues, and repair damage. Failure to respond may result in violation of SLA provisions with customer contracts. Tracking all trouble events from initial notification through resolution using a formal trouble process and ticketing system. The trouble ticket system should include an escalation protocol based upon the nature of a particular event. Procedures for handling trouble events, escalation, dispatch and other activities shall be developed. Support the last mile service providers in troubleshooting problems with their underlying customers to ensure that the FRBA network is not the source of the difficulty. Coordinate with other transport service, Internet access providers and collocation providers (such as Level 3, tower owner/operators) that support the FRBA network to monitor and maintain network reliability. This would include the call to these supporting entities, initiation, monitoring and escalation as necessary of trouble tickets. Provide secure connectivity to network elements and associated data centers for operation, monitoring and management as required. Maintain network security, firewalls, intrusion detection/prevention and access management as well as support for the owner/operator s internal IT department which included OSS/BSS, server infrastructure, database management, regular system backups and migration to an internal platform. FRBA has purchased a full suite of modules for SolarWinds, which it currently hosts on its datacenter servers for interim monitoring, network management, assignment and tracking of IP addresses and traffic management. The Owner/Operator must provide their own Operational Support Systems (OSS), and may integrate with the existing platforms mentioned above. Please provide a clear, well thought plan and a detailed description of your approach to OSS.

9 The Owner/Operator must periodically update or upgrade electronics, software systems and other components of the Network such that its customers can be assured of adequate access to bandwidth services. It will be important to update components of the Network to keep equipment up to date and maintain the quality, security and reliability of services offered on the Network. Note that any software/firmware upgrades will be provided by the manufacturer through the warranty period. Software/firmware costs should not be included as part of your proposal. Upgrades to the capacity and performance of the Network may also be required to meet rising levels of demand and to enable the Owner/Operator to provide new or enhanced services over the Network. The Owner/Operator will be required to participate in these upgrades and enhancements in order to ensure that the NOC can continue to manage and monitor the network. Provide disaster recovery plans including emergency dispatch and possible need for additional resources and backup power. Information included should describe their plans in case of loss of service of their primary NOC. Consideration should also be given to regular backup of network configuration, pertinent OSS records and other information. Any Owner/Operator must continue to apply FCC s Internet Policy Statement, FCC All network management policies must be displayed in a prominent location on the company s web page and providing notice to customers on any changes to these policies. The Owner/Operator must offer interconnection, where technically feasible without exceeding current or reasonably anticipated capacity limitations, on reasonable rates and terms negotiated with requesting parties. FRBA is obligated, for the useful life, which is typically ten years, of the network facilities funded through the FRBA BTOP Grant Award, to operate and maintain its Network properly and efficiently for the general and specific purpose of BTOP and the particular FRBA Grant Award. The Owner/Operator therefore must operate the network in accord with these requirements, including: The federal interest in real property and equipment, including broadband facilities, that FRBA acquired or improved in whole or in part with Federal funds, which, among other things, requires that (i) Owner/Operator may not sell, transfer, convey, or mortgage any interest in the real property and equipment, including broadband facilities, during its estimated useful life, as specified by NTIA; (ii) Owner/Operator may not use such real property and equipment, including broadband facilities, for purposes other than the purposes for which the award was made. Federal property management standards, including equipment inventory and asset control requirements that restrict disposition of BTOP funded property and require the periodic preparation and submission of physical inventories.

10 Federal financial standards including the requirement that FRBA track and report program income, as defined in 15 C.F.R Field Services Field services would include the responsibility for any civil work, installation, maintenance and support of the network. Any work must maintain the integrity of the existing architectural design and methodology. Additional items must be addressed with an Owner/Operator in conjunction with the appropriate NOC. Some of these items would be: 1. To help implement a preventative maintenance program to minimize deterioration of equipment and service 2. Define Emergency response procedures and resolution to network alarms, network performance issues and repair damage. 3. Provide recommendations for on call personnel as well as resources to be able to troubleshoot network issues and conduct on site repair/replace tasks as needed. 4. Supply vehicles, tools, test equipment, and other hardware or software required for operation and maintenance. 5. Receive and process ordered materials and equipment. 6. Coordinate vendor warranty, repair and return services. 7. Manage spares and inventory in vehicles and warehouse. The FRBA currently rents a warehouse in Lake City and Lake Placid for Network equipment. 8. Update design documents to represent as built conditions at the completion of maintenance activities. 9. Install and provision extensions of the network from backbone network to in kind assets and other last mile service provider meet me points. 10. Conduct field surveys in support of FRBA engineering design of network and customer service locations. The Owner/Operator would be expected to work towards having personnel with certifications in the following areas. 1. Cisco Certification or equivalent; 2. Ceragon Radios; 3. Calix/Occam Switches; 4. Respondent must be authorized to work on American Tower, Crown Castle, TowerCo, and SBA tower sites as part of the Ownership/Operation. 5. If Respondent is not trained/certified/authorized in any of the areas identified above, Respondent must commit to completing training/certifications within a mutually agreed time frame. 6. The Jessica Lunsford Act applies to contractors performing work on

11 school sites. Because schools are among our Community Anchor Institutions, future installations of network extensions may require work at school sites. In the event any future installation and pathing work is to be performed on a school site, the company performing the work will be required to comply with the Lunsford Act requirements, including registration with the local school districts. 8.0 Disqualification of Respondents. Any of the following causes will be considered as sufficient grounds for disqualification of a Respondent and rejection of the Proposal: 1. Submission of more than one Proposal for the same subject matter by an individual, firm, Owner/Operator, or corporation under the same or different names. 2. Evidence of collusion among Respondents. 3. Submission of materially false information with the Proposal. 4. Information gained through checking of references or other sources which indicates that Respondent may not successfully perform the work. 5. Incomplete contractual commitment(s) to other persons or entities, which, in the sole judgment of the FRBA, may hinder or prevent the prompt completion of the work if awarded to Respondent. 6. Respondent has defaulted on a previous contract with the FRBA. 7. The evidence submitted by Respondent, or the FRBA s investigation of Respondent, fails to satisfy the FRBA that Respondent is properly qualified to carry out the obligations of the Agreement in a manner acceptable to the FRBA and within a timely manner. 8. Any other cause that is sufficient to raise doubt regarding the ability of a Respondent to perform the work in a manner that meets the FRBA s objectives for the ITN.

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