108674_AMD-1_1268-21_EIS-DCS_Colocation_Approved.pdf

REQ-10700-00108674 (1268-21), AMD-1_CoLocationSvcs_DCS Page 1 of 6

REQUEST FOR SPECIAL PROCUREMENT (SP) No. REQ- 10700-00108674 (previously SP-1268-21), Amendment No. 1

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: Department of Administrative Services, State Procurement Services (DAS SPS) on behalf of the Office of the State Information Officer (OSCIO), also known as Enterprise Information Services (EIS), Data Center Services (DCS)

2. Date of Request: October 22, 2025 3. Agency Number: 10700 for 107009

4. Agency Contact Name: Rachel R. Smith 5. Phone: 971-707-0263

6. Type of Request: ___ Class Special Procurement _X__ Contract-specific Special Procurement

7. Amendment Time Period Requested: From: January 1, 2026 To: September 30, 2031

8. Total Estimated Cost for Amendment Time Period: $5,400,000

Note: With approval of this SP AMD-1 Request, the cumulative Total Estimated Cost approved under the SP will be $7,303,500.

9. Title: Supplies and/or Services to be acquired: Colocation services with the U.S. Signal (formerly OneNeck IT Solutions, LLC) (OneNeck) data center

10. Amendment Request, Background, Current Need, and Proposed Contracting Procedure:

a. Amendment Request:

DAS SPS, on behalf of EIS/DCS requests approval of this Special Procurement (SP) No. REQ-10700- 00108674 (previously SP-1268-21), Amendment No. 1 (SP AMD-1) to amend Master Services Agreement No. PO-10700-00012964 (MSA) with U.S. Signal Company, LLC, (previously OneNeck IT Solutions, LLC) for colocation services in Bend as follows:

1. reinstate the MSA (if needed) in accordance with Oregon Administrative Rule (OAR) 125-246-

0570, making the MSA in full force and effect as of January 1, 2026;

2. extend the MSA for an additional five (5) years ending on September 30, 2031; and

3. increase the not-to-exceed (NTE) by $5,400,000 for a new NTE of $7,303,500.

This renewal will continue to support the relocation and operation of core network equipment and disaster recovery infrastructure at the Bend Facility.

b. Background:

The State Data Center moved its core network recovery equipment from Helena, Montana to the new Data Center core network equipment and disaster recovery infrastructure Bend facility. DCS has fully transitioned away from reliance on the Montana State Data Center in Helena, MT, which had historically served as a secondary disaster recovery location. DCS now maintains Bend, Oregon, as its sole disaster recovery site. The Bend colocation site (formerly OneNeck, now U.S. Signal)

REQ-10700-00108674 (1268-21), AMD-1_CoLocationSvcs_DCS Page 2 of 6 provides purpose-built, secure, and redundant data center facilities located on the Link Oregon fiber ring. This site has been designated as the critical east-of-Cascades disaster recovery location for State of Oregon systems.

This contract renewal will ensure continuity of:

• Colocation Services (rack space, power, cooling, and environmental/security controls).

• Disaster Recovery Readiness (compute, storage, and backup capacity positioned east of the

Cascades to ensure resilience in the event of a Cascadia-level event or Salem facility outage).

• Core Network Aggregation (leveraging the Bend Point of Presence (PoP) on the Link Oregon ring to provide 100 Gb+ capacity at reduced cost).

The following transactions have occurred under the MSA since the Original SP-1268-21 was approved and noticed in March 2021:

1. September 1, 2021: DAS and One Neck Solutions entered into a Master Services Agreement

(MSA) with a five-year initial term.

2. September 9, 2021: PO13296 was issued in the amount of $62,550 for SOW 2020-22000 establishing colocation services for one cabinet and two fiber optic cross connects for 36 months with a term of 9/3/21 to 9/2/24. This cabinet established the new PoP for the state network.

3. November 11, 2021: PO14024 was issued in the amount of $12,585 with a term of 12/3/21 to 5/24/24 for Change Order ID# 2021-24481, adding two additional fiber cross connects and Change Order ID# 2021-24484 for additional fiber work for the state network POP.

4. October 26, 2022: PO14698 was issued in the amount of $814,950 for Change Order ID# 2022- 26160, establishing colocation services for 21 cabinets for 36 months with a term of 11/01/2022 to 1/31/26. These cabinets are the initial foundation for the new resilient site for the state. A project begins installing new compute and storage infrastructure.

5. February 7, 2023: PO-10700-00015447 was issued for additional conduit for the resilient site infrastructure.

6. March 10, 2023: PO-10700-00017233 was issued for conduit work for the resilient site infrastructure.

7. May 1, 2023: PO-10700-00018946 Change Order ID#2023-27112, 2 additional cabinets were ordered for the resilient site infrastructure.

8. June 27, 2023: PO-10700-00021372 was issued for an additional network cross-connect for the network POP.

9. May 24, 2024 The initial term for PO14024 expired and services moved to month to month as describer in Section 2 of the MSA

10. September 2, 2024 The initial term for PO14024 expired and services moved to month to month as described in Section 2 of the MSA.

For additional historical and background information see SP_Attachment-1, Original SP-1268-21.

c. Current Need:

Colocation services will exist at the U.S. Signal (formerly OneNeck IT Solutions) data center facility located at 63090 Sherman Road, Bend, OR. Link Oregon selected this facility as the Link Oregon network PoP in Bend. The Link Oregon fiber ring will terminate at the Bend location and DCS will install network routing and switching equipment in the U.S. Signal data center. This equipment will

REQ-10700-00108674 (1268-21), AMD-1_CoLocationSvcs_DCS Page 3 of 6 enable DCS to connect with other telecommunications service providers who also maintain network equipment in the Bend facility, providing circuits to state agencies in the region. By aggregating state agency network traffic from field offices at this site, DCS can efficiently route that traffic to statewide destinations such as the State Data Center in Salem or directly to the Internet.

This configuration strengthens network resiliency and ensures continuity of service while leveraging the State’s investment in the Link Oregon network.

The Cost Table 10.c.1 below represents both the past spend and the future spend of the MSA related to this SP:

Table 10.c.1

Years 1-5 Network PoP Resilient Site

2021 Total $3,273 $0 2022 Total $26,337 $0 2023 Total $73,350 $654,595 2024 Total $15,550 $676,664 2025 Total $15,550 $345,150

Total Spend through July, 2025 $134,059 $1,676,409

$1,810,468

Years 6-10 Monthly Charges

Annual Total

2026 (Year 6) $70,000 $840,000 2027 (Year 7) $80,000 $960,000 2028 (Year 8) $100,000 $1,200,000 2029 (Year 9) $100,000 $1,200,000 2030 (Year10) $100,000 $1,200,000 Total Spend through September 2031 5-year cost: $5,400,000

d. Proposed Contracting Procedure:

1. DAS SPS will issue a public notice (Notice) on OregonBuys® as required by Oregon Administrative

Rule (OAR) 125-247-0287, for seven (7) calendar days, regarding approval of the SP AMD-1 request.

2. Advertisement of the SP will include provisions that any Affected Person(s) may protest the approval of the SP AMD-1.

3. DAS SPS, in coordination with EIS/DCS, will respond to and resolve protests, if any.

4. If no protests to this SP AMD-1 are received or sustained, DAS SPS will proceed with amending the

MSA as described in Section 10.a.

5. Pursuant to OAR 137-045-0015, DAS SPS will work with Oregon Department of Justice (DOJ) and obtain legal sufficiency approval prior to executing the MSA Amendment, as required.

6. DAS SPS will work with EIS and obtain its endorsement prior to executing the MSA Amendment.

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11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a Special Procurement. Attach relevant documentation.

After the Original SP (SP_Attachment-1) was approved, the MSA became authorized within the provisions of the SP. Consequently, any amendments to the MSA outside of the approved Original SP – whether for additional time, services, or related costs - must first be requested and approved by DAS SPS through an amendment to the SP.

Renewing this MSA with U.S. Signal will:

• Maintain disaster recovery readiness by securing the State’s single east-side DR site in Bend.

• Provide ongoing access to the Link Oregon PoP in Bend, eliminating additional points of failure and costly redundant circuits.

• Recognize the corporate acquisition of OneNeck IT Solutions by U.S. Signal, ensuring service continuity under the new ownership.

• Promote the public interest by ensuring the State can sustain critical Information Technology

(IT) services in the event of regional disruption, aligned with resiliency objectives of the Governor and Enterprise Information Services.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

___X___ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

DCS currently procures over 600 circuits from commercial carriers. Migration of the network core circuits to Link Oregon’s Ring A will reduce the number of circuits procured from commercial providers by less than 1%. The current DCS Point of Presence (PoP) in Bend is in a state-owned facility; however, this facility does not provide the redundancy and resiliency required for enterprise operations.

There are three commercial data center providers in eastern Oregon that could potentially provide services as a disaster recovery site; however, only U.S. Signal (formerly OneNeck IT Solutions) was identified by Link Oregon to serve as its designated PoP. Therefore, DCS utilizing any other commercial data center would introduce additional points of failure (additional routers at each site and an additional circuit) and significant expense ($10,000–20,000 per month for a 100 Gb network connection to the ODOT Region 5 Headquarters as an example).

and

______ (b)(i) will result in substantial cost savings to the contracting agency or to the public because:

or

_X__ (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder because:

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Link Oregon will extend fast, reliable, cost-effective internet and shared network services to K-12, higher education, libraries, Native Tribes, public health care organizations, other public and non-profit facilities and more than 500 state agency locations across Oregon. Access to colocation services in the U.S. Signal (formerly OneNeck) Data Center in Bend is a crucial component to realizing the full range of benefits across all of the participating organizations. This facility now provides the foundation for the State’s designated disaster recovery site on the east side of the Cascades, eliminating the need for reliance on the former Montana data center. Locating this infrastructure within the Bend facility on the Link Oregon fiber ring ensures higher resiliency, eliminates additional potential points of failure, and allows the state to recover operations more quickly and efficiently in the event of a regional disruption such as a Cascadia-level incident.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request submitted through OregonBuys®. Agency may elect to attach a signed Request as a pdf file through OregonBuys® or submit a signed hard copy Request.

Signature: e.g. Electronically in OregonBuys® _________________ Name/Title: Date:

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PART B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and (b)(A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125- 247-0288 implement ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on OregonBuys®. The Special Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125-247-0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Authorized Agency shall comply with the requirements of ORS 279A.165 and OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. Authorized Agency shall comply with all Enterprise Information Services (EIS) conditions and requirements prior to MSA amendment execution, if any.

4. Upon completion of the Notice (section 1) the DAS PPO’s approval applies retroactively to January 1, 2026.

APPROVED:

Jay Jackson, Procurement Policy Officer Date:

Department of Administrative Services, State Procurement Services

12/9/2025