Attachment D - Business Case.pdf

MFN-3 Business Case i

Table of Contents 1 Executive Summary

1.1 Detailed Description of Services

1.2 Current Service Performance

1.2.1 SLA Report Generation & Review

1.3 Goals for Proposed Outsourcing

1.4 Outsourcing Authority

1.5 Descriptions of Available Options

2 Background

2.1 Overview and Background of MFN-2

2.1.1 MFN-2 Design Overview

2.1.2 MFN-2 Services

2.1.3 Service Level Agreements (SLA) Overview

2.2 Contract Improvements for MFN-3

2.2.1 Contract Flexibility to Support Emerging/Evolving Technologies

2.2.2 Contract Flexibility to Support Networking Solution Development

2.2.3 Decreased Level of Effort and Impacts Associated with Services Migrations

2.2.4 Increased Oversight on Last Mile Service Selection

2.2.5 Subscriber Consultative Services

3 Options and Cost Benefit Analysis

3.1 Telecommunications Market Conditions and Trends

3.1.1 Statewide Flat Rate versus Mileage-Based Pricing

3.1.2 Fixed-term Pricing versus Month-to-Month Charges

3.1.3 Use of Private versus Commercial Network Resources

3.1.4 Current Telecommunication Technologies

3.1.5 Analysis of Results from MFN-2 User Survey

3.2 Evaluation of MFN-3 Contracting Options

3.2.1 Last-Mile Services

3.2.2 Single-Award and Multi-Award Approach for Last Mile Services Comparison

3.3 Evaluation of MFN-3 Component Level Options

3.3.1 MFN-3 – Backbone Options

ii

3.3.2 MFN-3 Last-Mile Access Options

3.3.3 Core Services Integration Options

3.4 Option Groupings for Cost Benefit Analysis Examples

3.4.1 Single-Award Vendor-Owned Core and Backbone Infrastructure (Example 1)

3.4.2 Single-Award Vendor-Owned Core and Backbone, Multi-Award Last-Mile Services (Example 2)

4 FIRN Sourcing Options

5 State Business Processes and Policies

6 Performance Metrics Review

7 Projected Timeline

8 Public Records Law Compliance

9 Contingency Plan

10 Transition Plan

10.1 Transition Plan Overview

10.2 Resources

10.3 Knowledge Transfer

10.3.1 Communication Plan

10.3.2 Engineering Review

10.3.3 MFN Services Transition Plan

10.3.4 Provisioning Planning

10.4 Network Operations Center

10.5 Administrative Services

11 Americans With Disabilities Act Of 1990, As Amended

12 Contractual Provisions

13 Appendices

13.1 Appendix A – Glossary of Key Networking Concepts

13.2 Appendix B – MFN-2 User Survey

Table of Figures

Figure 1 – MFN-2 Core/Backbone Overview

Figure 2 – MFN-2 Core Node Design Details iii

Figure 3 – MFN-2 IAG Design

Figure 4 – MFN-2 Typical WAN Service Connectivity

Figure 5 – MFN-2 VRF Services

Figure 6 – MFN-2 Broadband Service Integration

Figure 7 – MFN-2 MAN Services Overview

Figure 8: MFN-3 Options

Figure 9: Vendor Bid Differential for networkMaryland Project

Figure 10: Basis of Estimated Cost Avoidance with Multi-Vendor Last-Mile Services Model

Figure 11 – MFN High Level Diagram

Figure 12 – MFN Level 2 Functional Diagram

Figure 13 – Current MFN-2 Multi-Subscriber Site Solution

Figure 14 – Consolidated MFN Multi-Subscriber Site Solution (mini-node)

Figure 15 - 10 Year MFN-3 Cost Model Comparison

Table of Tables

Table 1 – CPE Management and Ownership Comparison Table

Table 2 – Factors Affecting Last Mile Pricing

Table 3 – Circuits or Connections for Key Users

Table 4 – 10 Year MFN-3 Cost Model Comparison Summary

Table 5 - Example 1 Vendor-Owned/Vendor-Managed Single-Award Cost Model Detail

Table 6 - Example 2 Vendor-Owned/Vendor-Managed Multi-Award Cost Model Detail

Table 7 – MFN-2 Service Level Agreements

Florida Department of Management Services

1 Executive Summary The State of Florida’s MyFloridaNet-2 (MFN-2) contract is the second multi-year contract designed to provide data communications to all Florida State agencies as required under section 282.703 F.S. As MFN-2 reaches the end of its contract term, the State has begun the process of developing requirements for an MFN-3 contract. The State has retained the management consulting firm ISF and the telecommunications firm Skyline to create a business case for MFN-3.

The Department of Management Services (DMS) desires to have a competitive procurement process and outcome for the successor network or networks to the current My Florida Network (MFN-2), to be identified as MFN-3, at both the core level and for last-mile servicing. MFN-3 will continue to service both State of Florida government agencies, as well as K-12 districts statewide under the FIRN framework. The MFN network has been serviced and operated under the MFN-2 contract by L3Harris.

In evaluating options for MFN-3 core and backbone services, the State will continue the successful model implemented for MFN-2. To work toward iterative improvement on the MFN-2 contract, the State is considering the segmentation of last-mile servicing as a separate competitive procurement to promote local competition, increase value to the State, and to encourage cost-avoidance for each circuit purchased by MFN customers. This Business Case provides detailed research and advisement on current market conditions and other considerations to help guide the State’s decision-making process in the development of the MFN-3 procurement.

1.1 Detailed Description of Services

Section 287.0571 (4)(a), F.S. - A detailed description of the service or activity for which the outsourcing is proposed.

Services in the MFN portfolio are described as follows:

MyFloridaNet - is a comprehensive solution providing a rich and flexible enterprise communications infrastructure dedicated for the exclusive use of State of Florida customers.

The enterprise infrastructure is based on a core network using routers and Multi-Protocol Label Switching (MPLS) technology managed by a Network Operations Center (NOC) to provide security and robust connectivity. The result is a highly available (HA) and highly reliable (HR) statewide communication network (together HA/HR). MyFloridaNet is made up of layers of service and support that provide the telecommunications capability, infrastructure, and services through the implementation of:

o Core Access Methods o Service Features o Service Levels o Customer Premises Equipment (CPE) o Primary Data Center (PDC) o Regional Metropolitan Area Network (MAN) o Interstate Transport

Florida Information Resource Network (FIRN) - FIRN utilizes the structure of MFN to support its service delivery. FIRN supports data communications connectivity and internet access for K-12 schools. Schools pay for FIRN services almost exclusively using federal subsidies known as “E-rate” (averaging 70 percent). E-Rate subsidies come from the Federal Universal Service Fund (FUSF), which is financed through fixed fees charged to every user of interstate telecommunications services throughout the USA. The remainder of the cost is paid by the school using its budget resources. FIRN also includes some E-Rate qualified features, like email and special filtering.

Further analysis of the path forward for FIRN can be reviewed in Section 4: FIRN Sourcing Options.

MFN-3 is contemplated as a continuation of MFN-2 with a competitive procurement for the core and backbone services vendor. MFN-3 may also split out last-mile servicing as a multi-vendor contract as described in sections 3.2.1, 3.3.2, and 3.4.2.

1.2 Current Service Performance

Section 287.0571 (4)(b), F.S. - A description and analysis of the State agency’s current performance, based on existing performance metrics if the State agency is currently performing the service or activity.

While the State currently manages the MFN-2 contract, the operation of the MFN network under this contract is outsourced to a third-party vendor, L3Harris. There are 35 performance metric service level agreements (SLAs) organized into five (5) categories as detailed in Table 7 within section 6 that govern DMS’s management of this contract with L3Harris.

In most cases, the current metrics have served DMS well in managing the MFN-2 contract. In certain rare circumstances, SLA penalties to the MFN-2 vendor are lower than the cost to the vendor of providing services. This has led to service not being provided, with the decision made by the vendor to pay the SLA penalty rather than provide service. To address this issue, penalty caps should be re-evaluated in MFN-3 for increase and/or removal to ensure that requested services are delivered to all required MFN subscriber locations.

The Service Levels are currently divided into seven categories which align with elements of the MFN network, as listed in the bullets below:

Core Network Availability and Performance Degradation Internet Access Availability and Performance Degradation Local Loop Access, CPE Availability, and Performance Degradation Operational Remote Access VPN Service Security Migration

Core Network Availability and Performance Degradation - Service levels for the Core (the MPLS backbone network/routers) are measured in terms of service outage or performance characteristics as defined in the matrix in Section 6. One-minute, one-hour, and two-hour restoral thresholds are defined with associated user credits for service provider non-compliance. Core metrics also measure latency, packet loss and jitter service levels with four-hour and eight-hour restoral performance targets.

Internet Access Availability and Performance Degradation - Service levels for access and Customer Premises Equipment (CPE) are measured by defined service outage or performance characteristics.

Access and CPE are subject to four-hour and eight-hour restoral performance targets, as well as service levels for latency, packet loss, and jitter.

Local Loop Access, CPE Availability, and Performance Degradation - Service levels for Local Loop Access and CPE Availability measure service outage, latency, jitter, and packet loss. Thresholds are established for 4-hour restoration of outage, as well as appropriate thresholds for tolerance for latency, jitter, and packet loss.

Operational - General network operations and administration service levels are applied on a per incident basis, for the following activities:

Installations Moves, adds and changes CPE configuration changes Service outage notification Service degradation notification Initial problem identification

Remote Access VPN Service - Service levels for restoration in the event of an outage are included in the current MFN-2 SLAs. These define specific expectations for centralized as well as remote site VPN appliances. Associated credits per time period as well as maximum single event credits are well outlined. Additionally, the current SLAs governing VPN services also outline performance metric tolerances for appliance CPU/Memory utilization as well as transport service utilization. DMS should consider further refining these SLAs to account for anomalies in traffic patterns by adding in clarity around how the “average” utilization levels are tracked and reported. Due to the business day nature of most service utilization patterns DMS should consider leveraging a 95th percentile-based calculation method for average utilization determination to avoid ambiguity.

Security – Service levels for notification of cybersecurity incidents and timely mitigation of Direct Denial of Service (DDoS) attacks are indicated with caps on penalties. It may be appropriate to reevaluate penalty caps as part of the MFN-3 contract to account for increased costs in service and associated loss to the State due to the relative impact of security incidents.

Migration – A single service level for timely migration of MFN infrastructure to MFN-2 was initially included to ensure that the initial project migration is completed in a timely manner. A similar metric will be necessary for MFN-3.

1.2.1 SLA Report Generation & Review

The performance degradation raw data is extracted from information provided by the MFN vendor.

The MFN NOC Support Staff pull support ticket data. This data is utilized for the creation of the MFN SLA Violations report.

1.3 Goals for Proposed Outsourcing

Section 287.0571 (4)(c), F.S.- The goals desired to be achieved through the proposed outsourcing and the rationale for such goals.

In evaluating requirements for MFN-3, the State has the opportunity to review changes in modern technology and telecommunications market trends to provide improved service to agency users at the same or lower cost to Florida taxpayers. By continuing to outsource the MFN, the State will continue to provide the best value to State agencies as well as K-12 public education customers through the FIRN framework. The current implementation of MFN is a mature service offering utilized throughout the State. Agencies have built systems and processes that rely heavily on the continued technological structures that are in service today. The degree or intensity to which agencies are using MFN is widely variable depending on specific agency telecommunication needs. As with MFN-2, performance objectives for MFN-3 should continue to be guided by the following principles:

Improve the core customers service offering and support Improve customer service offerings to all Other Eligible Users (OEU)1 Improve pricing structures for all service layers Establish best-in-class statewide network solution Establish best value to the state through strategic sourcing, standardization, and process improvement Manage administrative costs through improved efficiencies of organizational oversight responsibilities Improve service layer capabilities based on DMS customer needs

The MFN-3 procurement should additionally address the following:

Ending/transition of the current MFN contract to ensure no customer impacting events take place

Provide improved service features based on evolving technological needs Competitively procure MFN-3 through negotiation to drive best value Drive down the current cost (approximately $60 million annually) Secure increased influence by DMS on decision-making related to last-mile vendor servicing

1.4 Outsourcing Authority

Section 287.0571 (4)(d), F.S.- A citation to the existing or proposed legal authority for outsourcing the service or activity.

Section 282.702(8), F.S., authorizes DMS to establish a telecommunication solution. Specifically, this section allows DMS “To control and approve the purchase, lease, or acquisition and the use of telecommunications services, software, circuits, and equipment provided as part of any other total telecommunications system to be used by the state or its agencies.” Based upon this authorization, DMS has twice procured a telecommunications solution known as MFN, with the most recent contract

1 Other eligible users of State Term Contracts include those local government entities identified in Rule 60A-1.005, Florida Administrative Code.

known as MFN-2. The Department of Management Services is seeking to continue services to state agencies through a competitive procurement of MFN-3 based on the findings of this business case.

1.5 Descriptions of Available Options

Section 287.0571 (4)(e), F.S. - A description of available options for achieving the goals. If State employees are currently performing the service or activity, at least one option involving maintaining State provision of the service or activity shall be included.

This business case examines two options specifically for the scope of continued support, integration, and installation of telecommunication services and ancillary features/capabilities following the expiration of the current MFN contract. In both options, an outsourced competitive solicitation is envisioned for core and backbone services. The second option envisions segmenting out last-mile servicing to promote local competition, increase value to the State, and encourage cost-avoidance for each circuit purchased by MFN customers.

These options were evaluated and included in this business case because they are within the scope for outsourcing as required by Chapter 287.0571, F.S. and they represent common procurement options utilized by the State for similar needs. The Division of Telecommunications at DMS currently operates multi-vendor contracts for other purposes similar to the method envisioned for last-mile servicing on this contract and will leverage this experience if this option is selected for MFN-3.

For the purpose of this business case, one or more competitive Procurements are envisioned for the MFN-3 contract:

Competitive Procurement - Section 287.057, F.S., and Department of Management Services (DMS) Rule 60A-1, Florida Administrative Code, provides:

Invitation to Negotiate (ITN) – Used when the agency knows the desired end result but is not sure how to get there; or, there are many ways to get to the end result; or, the qualifications of the provider and quality is more important than price. This option works best when highly technical and/or complex services are being acquired. The price structure for services is negotiated. Note: MFN was originally procured via ITN.

Invitation to Bid (ITB) – Used when the agency knows exactly what it wants. Price is the determining factor in the award.

Request for Proposal (RFP) – Used when the agency has a general idea of what it wants. Services and price are evaluated.

2 Background In planning for the future MFN-3 contract, a firm understanding of the existing technology footprint and business requirements is necessary. Respondents to an MFN-3 solicitation will be expected to support agency customers at a level of service and reliability that is achieved through the current-state implementation of MFN-2 documented below.

The overview and background section provides a description of the current services including the current contractor’s performance under the MFN-2 contract and any other information necessary to provide the reader with a detailed, foundational understanding of Florida's telecommunications infrastructure.

The contract improvements for MFN-3 section outlines the present telecommunication needs of the MFN subscriber community, to include the existing gaps in services such as a small number of rural circuits that should be accommodated through other technology options or emerging technologies.

This section also delves into desired improvements in the areas of contract flexibility, migration processes, oversight, decision-making, and consultation availability.

2.1 Overview and Background of MFN-2

The Department of Management Services (DMS) is the business and workforce arm of Florida government. The department excels in meeting the core business needs of State government and its employees so Florida's state agencies can focus on their core missions. The department serves more than 1 million customers through services for the State of Florida as a whole, including the administration of retirement benefits and health insurance, advising agencies on human resource policy, setting technology policy through Florida Digital Services, and maintaining the State's human resource information system (HRIS), PeopleFirst. DMS oversees the State's procurement procedures and also provides statewide telecommunication services, coordinates real estate construction and management, and monitors Florida's private prisons and fleet of vehicles, amongst other services.

The DMS Division of Telecommunications (DivTel) provides telecommunications services through a technology program known as SUNCOM which includes voice, data, wiring and cabling, and conferencing services. SUNCOM provides these cost-effective services to state and local governments, educational institutions, libraries, and non-profit organizations by achieving economies of scale with enterprise planning and procurement. DivTel data services are offered and available to the following entities:

State agencies

State universities and community colleges

City or county governments in Florida

Non-profit corporations receiving the majority of their funding from the state or local government

Select commissions and boards

Water management districts

Other eligible users (OEUs)

The Department of Management Services and L3Harris Technologies entered into the MFN-2 contract in 2016 to provide network services for state government and eligible users including Florida county and city governments, school districts, universities, community colleges, and non-profit organizations.

MFN-2 is a multi-year contract for Florida’s enterprise-wide area network (WAN service), regional metropolitan area networks (MAN), and related telecommunication services. The enterprise infrastructure is based on a Multi-Protocol Label Switching (MPLS) technology providing robust security and network connectivity, designed to offer a highly available (HA) and highly reliable (HR) statewide communication infrastructure. MFN-2 is a comprehensive solution providing a rich and flexible private enterprise communications infrastructure dedicated for the exclusive use of the State of Florida MFN/FIRN subscriber community. This enterprise infrastructure is based on MPLS technology and QoS (Quality of Service) mechanisms providing robust security and connectivity resulting in a highly available and highly reliable statewide communications network. MFN-2 provides service elements such as network core, local loop access, CPE, security, Internet access, NMS tools, design and engineering, and billing and ordering as a complete turn-key solution with flat-rate pricing statewide.

2.1.1 MFN-2 Design Overview

The MFN-2 network is comprised of three (3) primary architectural elements, the Core network, the Internet Access Gateway(s), and the edge/access.

The Core interconnects each region into a cohesive network communications fabric. Internet access gateways are collocated with two of the core nodes and are a comprehensive security boundary that extends MFN-2 communication into the public Internet. The edge/access environments comprise the infrastructure that extends services from the regional core points of presence to each MFN-2 connected facility. Details on these architectural elements are provided in the sections below.

2.1.1.1 MFN-2 Core Design

WAN service

A MAN service can be ordered as a layer-2 bridged service or a layer-3/2 routed service. Both variants provide the capability of creating a closed user group within a defined MAN boundary. For a single local loop provider, MAN sites have two management connections with unique VLANs terminating at geo-diverse core nodes as well as a third VLAN (data) for the closed user group, in other words, the broadcast domain. If a multi-local loop provider solution is required, customer sites will have two data VLANs back to the core. The management traffic will traverse the data VLAN and be leaked into the Management VRF. This redundant configuration is not available for E-rate customers. MFN-2 MAN service provides speeds ranging from 1.5 Mbps to 100 Gbps.

2.1.2.4 Remote Access VPN Services

A Virtual Private Network (VPN) is an alternative to a private network where the network owner exclusively uses the wired infrastructure. Typically, a VPN is used to traverse a layer 3 network path (Internet or wireless airspace), which is out of the control of the user. User data is encrypted before being sent across that path using an encrypted tunnel. The tunnel protects passing data from being snooped and the encrypted key exchange prevents Man-in-the-Middle attacks. On MFN-2, a VPN may exist between an individual machine and the MFN-2 network, or a remote network and the MFN-2 network. The MFN-2 VPN infrastructure requires strong encryption and authentication of remote users or peer devices and masks information about the private network topology from potential attackers on the public Internet.

MFN-2 supports two major flavors of access to the MFN-2 Intranet; distributed and centralized.

Distributed is also known as a site-to-site VPN and can be within the core (private WAN) or over the Internet.

The centralized flavor of VPNs includes three designs:

LAN-to-LAN

Client-to-LAN

Clientless

2.1.2.5 Primary Datacenter Services

MFN-2 provides a reliable, high-speed connection to the State’s PDC (primary data center), also known as the SSRC. The PDC service in Tallahassee enables MFN-2 backbone traffic and Tallahassee MAN traffic to flow into the PDC. The design provides three connectivity options: local bridged, local routed, and Statewide routed. The available bandwidth for all options is from 2 Mbps to 100 Gbps. With the substantial traffic requirements of the PDC, MFN-2 has implemented a “mini-node” at this facility where the MFN-2 service provider has provided physically diverse backbone fiber routes from the PDC implemented on the Tallahassee MAN. The service is provided with the same SLA guarantees as provided in the MFN-2 core. Traffic is monitored for malware by the IDS located at each core node.

2.1.2.6 FIRN Services

MFN-2 provides two (2) service offerings for FIRN subscribers. FIRN services are supported over the same MFN-2 core infrastructure but are logically isolated to ensure e-rate applicability for its subscribers. FIRN “Internet Bundled service” provides a basic firewall service bundled with high-speed Internet service for E-rate customers (FIRN). Other bundled security features such as malware protection are also provided as part of the service at no additional cost. Direct Internet Access (DIA) service provides a high-speed Internet-only service for E-rate customers (FIRN). The DIA service offering has direct access to the Internet and does not provide any security monitoring or services.

2.1.2.7 Cloud Connect Services

The MFN-2 Cloud Connect Service (CCS) provides transport connectivity between a supported cloud service provider and MFN-2, allowing the MFN-2 customer sites to access cloud services. CCS provides a more robust connection as compared to an encrypted tunnel over the Internet as it leverages private network service paths with more consistent performance (latency, jitter, packet loss).

CCS providers supported on MFN-2 include:

Amazon Web Services

Microsoft Azure Government

Microsoft Azure Private

Microsoft Azure Public

Microsoft Office 365

Oracle

The available bandwidth for all options is from 1 Mbps to 5 Gbps. Cloud Connect services are available in a layer-2 and a layer-3 options.

2.1.2.8 Interstate Services

The MFN-2 infrastructure also offers service connections extending beyond Florida’s state boundaries through its Interstate Service offering. These services are available as customized offerings which vary on engineered solutions and prices depending on the specific customer requirements. These services can be leveraged by MFN-2 subscribers for special projects or business needs that require integration with facilities outside of Florida, for example for disaster recovery services and/or specialized SaaS offerings. These solutions are customized based on the specific use case requirements and are supported on a case-by-case basis.

2.1.2.9 Ancillary Services

In addition to the base telecommunications services MFN-2 also provides a suite of services that are considered ancillary. These services assist subscribers with leveraging the base MFN-2 services as well as enhance the offerings to include additional over the top services that enable more cost-effective IT operations. Ancillary services are optional and as such, incur an additional cost beyond the standard service cost. An MFN-2 customer must subscribe to an MFN-2 network service to qualify for ancillary services. The following subsections describe the ancillary services available on MFN-2.

2.1.2.10 Customer Premise Equipment (CPE)

The MFN-2 contract allows for hardware to be provided by the customer outside of the MFN-2 contract or rented by the customer through the MFN-2 contract. Each option has some differences from a contractual standpoint related to installation, configuration, monitoring, and maintenance. CPE may be acquired from the MFN-2 contract for locations with service and includes CPE maintenance and installation. CPE may not be rented through the MFN-2 contract for sites that do not have services.

The table below provides some comparisons between the managed and owned options.

2.1.2.10.3 Maintenance

All devices rented via the MFN-2 contract must have MyFloridaNet-2 maintenance which provides a four-hour CPE restoral SLA. The 4-hour SLA restoration point will depend on the ability to have read-only SNMP access to the MFN-2 NOC/SOC for fault detection.

MFN-2 CPE maintenance and associated SLAs are not available for purchase under MFN-2 for standalone CPE. Customers are required to coordinate CPE repairs themselves. MFN-2 CPE management is available and at the customer’s direction the MFN-2 NOC will monitor, backup configurations, and notify the customer when CPE or other outages are detected. MFN-2 installation services are not available for CPE purchased outside the MFN contract.

CPE maintenance includes the following:

24 x 7 x 4-hour replacement of hardware parts and service restoral

Access to the CPE Vendor Technical Assistance Centers, engineering resources, as well as

MFN-2 NOC/SOC

IOS software updates on rented CPE - Any software update on customer managed CPE is the responsibility of the customer

2.1.2.10.4 Installation

As part of the CPE subscription installation of MFN-2 acquired CPE includes staging, configuration, and installation. For all customer provided CPE the customer is responsible for configuring and installing the hardware. All customer provided CPE must be certified and approved by the MFN-2 CPE roadmap.

2.1.2.10.5 Configuration Management

As long as the MFN-2 NOC has read-only SNMP access to the CPE the MFN-2 NMS tool will store the last 25 copies of each router’s configuration along with the User ID of who made each change. MFN-2 NMS allows the MFN-2 NOC/SOC the ability to perform side-by-side comparison of configurations for troubleshooting purposes. Unmanaged customers must enable the MFN-2 NMS access to their routers to be able to request access to stored configurations via the NOC/SOC.

2.1.2.10.6 After Hours Maintenance

The MFN-2 NOC/SOC will troubleshoot to the extent possible any circuit related issues. Any issues that require on-site access will require the customer to provide access to the site to receive CPE or allow for technician access to the CPE or the site in general. To ensure there are no issues with site access that could delay service restoration and to meet associated SLAs it is important that the customer identify and keep up to date on-site contacts for sites that require after-hours service restoral.

2.1.2.11 Ancillary General Services

General ancillary services are for all customers and include Telecommunication Service Priority (TSP), Demarcation Extension Service, After-Hour Installation Services, and Expedited Installation Services.

For E-rate eligible customers only, general ancillary services also include Email Service, Web Hosting Service, Emergency Webpage, Data Storage Service and District Support. Additional details on each of these general services are provided in the corresponding sections below.

2.1.2.11.1 Telecommunication Service Priority

The TSP program authorizes National Security and Emergency Preparedness (NS/EP) organizations to receive priority treatment for vital voice and data circuits or other telecommunications services. The two primary uses for TSP are:

Installing new service

Restoring existing service

TSP customers must provide their associated TSP Authority Code which is then validated by DMS for eligibility. Once validated TSP is then applied to the associated customer within the MFN-2 infrastructure.

2.1.2.11.2 Demarcation Extension Service (Copper Only)

Demarcation extension service includes the necessary equipment, wiring, cabling, inspection, and installation to extend the service demarcation within a customer facility per MFN-2 customer requirements. The MFN-2 service provider is responsible for maintaining and managing the demarcation extension for the life of the contract at no additional cost. There are options for extension associated with both copper and fiber cabling with varying costs.

2.1.2.11.3 After-Hours Installation Service

The MFN-2 service provider provides after-hours installations between 5:01 pm and 11:00 pm local time Monday through Friday. Holiday and weekend support for installation is provided with pricing on an individual case basis. These services are available upon request by the target customer and incur additional charges.

2.1.2.11.4 Expedited Installation Service

Expedited installation service allows customers to schedule service delivery prior to the normal installation intervals. MFN-2 customers can request expedited installations based on a standard fee schedule provided by the MFN-2 service provider. The MFN-2 service provider does not charge expedited service fees if expedited service date is not met.

2.1.2.11.5 Special Construction

Special construction includes the necessary equipment, wiring, cables, inspection, and installation labor to provide connectivity for MFN-2 services. The MFN-2 service provider is responsible for maintaining and managing the special construction for the life of the contract. Under the current MFN-

2 contract, service connections associated with bandwidth rates up to 12 Mbps will not incur charges to the customer. Service bandwidth speeds above 12 Mbps may incur additional costs and are negotiated on a case-by-case basis. If local loop access facilities exist from any provider to the target facility, there is no charge for special construction. If local loop access facilities do not exist to the facility from any provider, special construction charges may be incurred.

2.1.2.11.6 Email Service for E-rate Eligible Clientele

Under MFN-2, the service provider (L3Harris) provides an email service offering for E-rate eligible customers. The email solution has the option of filtering in accordance with the Children’s Internet Protection Act (CIPA) guidelines. This includes measures in place to guard against hacking, intrusion, or misuse of email addresses and complies with State, Federal, and E-rate record retention requirements. Email and content filtering services are not eligible for E-rate reimbursement.

2.1.2.11.7 Web Hosting for E-rate Eligible Clientele

Under MFN-2, the service provider (L3Harris) provides highly reliable, scalable, convenient, and easy to use web hosting for E-rate eligible customers. The website storage capacity is 20 MB per user and includes:

Website traffic

Disk space for applicant provided content

FTP transfer or web interface to upload files

DNS if required

The Web hosting portal is similar in look and feel to the MFN-1 FIRN portal. Website administration support is available Monday – Friday, 8 am – 5 pm Eastern time. Web hosting services are not eligible for E-rate reimbursement.

2.1.2.11.8 E-rate Emergency Webpage

The MFN-2 emergency Webpage service allows E-rate customers to disseminate important information during emergencies and disasters. A backup emergency webpage server provides failover so that webpage server availability is greater than or equal to 99.99%. Customer representatives typically access the emergency server webpage content through the MFN-2 Public VRF. Off-net access is also possible over the same Internet portal used to provide the emergency webpages to the web.

2.1.2.11.9 E-rate Data Storage

The MFN-2 Data Storage service provides a secure, high performance, local vault device at the customer location to provide a seamless interface to industry standard backup applications. The service provides easy integration with existing software, and adherence to existing backup policies. It also includes duplicate data storage off premises that allows for the replication of the data from the local vault device at the customer location to a secure vault at a secured offsite facility. This service is only available to e-rate MFN-2 subscribers.

2.1.2.11.10 E-rate District Support

Ad hoc District Support services are available on a subscription basis and are not E-rate eligible for reimbursement. District Support includes but is not limited to:

Established single point of contact

Emergency DNS and webhosting which provides customer with complete service for managing web services

Headquarters/District level consultation in all areas related to services provided

Email support

Dispatches as required to support ad hoc services including assistance related to customer’s

LAN

24x7x365 NOC support for customer’s internal network of sites not under MFN-2 provider.

o Limited to those services which can be provided by L3Harris such as proactive network monitoring, trouble tickets, DNS support, IP address management, two-hour response time to reported trouble, and performance monitoring and reporting

2.1.2.12 Ancillary Managed Security Services

MFN-2 ancillary Managed Security Services (MSS) are available to all MFN-2 customers and include security event monitoring and reporting, security device full lifecycle management service, vulnerability management and compliance service, log retention services, next generation content filtering/URL blocking service, security response and consulting, and security advisor feed. An MFN-2 eligible customer must subscribe to an MFN-2 network service such as WAN, MAN, or Broadband to qualify for subscription to MSS. Additional details on each of these service offerings are provided in the corresponding sections below.

2.1.2.12.1 Security Event Monitoring and Log Monitoring

The MFN-2 Security Event Monitoring and Reporting service includes:

Firewall event monitoring and reporting

Session Border Controller monitoring and reporting

Network Intrusion Detection or Prevention (IDS or IPS) monitoring and reporting

Device monitoring and reporting (servers, routers, switches)

2.1.2.12.2 Security Device Lifecycle Management Service

The MFN-2 Security Device Lifecycle Management service offers a fully managed solution for lifecycle management of customer-owned, customer facility premise-based security appliances. In addition to monitoring the availability and performance of the security appliances, this service also offers integration with the enterprise SIEM, ArcSight, and is monitored 24x7x365 by the MFN-2 NOC/SOC.

2.1.2.12.3 Vulnerability Management and Compliance Service

The MFN-2 Vulnerability Management and Compliance service identifies exposures and weak spots in customer environments by performing continual, accurate, external, and internal scanning across the MFN-2 network. Customer vulnerability results are integrated into the MFN ArcSight reporting system.

2.1.2.12.4 Log Retention Service

The MFN-2 Log Retention service supports a wide range of sources, allowing the capture and aggregation of millions of logs generated every day by critical information assets such as servers, routers, firewalls, databases, applications, and other systems.

2.1.2.12.5 Next Generation Content Filtering and URL Blocking Service

The MFN-2 Next Generation Content Filtering/URL Blocking service helps end-users enforce their protection policies and block inappropriate, illegal, and dangerous web content. This service can block access to multiple categories of objectionable web content, providing the necessary combination of control and flexibility to protect important resources.

2.1.2.12.6 Security Response and Consulting

MFN-2 provides customers access to a threat intelligence research team that aids customers in identifying threats and developing preventative countermeasures based on information collected from monitoring events world-wide.

2.1.2.12.7 Security Advisor Feed

The MFN-2 Security Advisor Feed provides customers with a weekly report of security threats, trends, and actionable information based on aggregated security intelligence feeds.

2.1.3 Service Level Agreements (SLA) Overview

To ensure the highest levels of reliability, availability, and delivery expectations on the MFN-2 contract are achieved for both the infrastructure and services provided, a set of SLAs have been put in place.

These service levels are applicable on a per incident basis applying to all service provider managed access types, except for broadband local access. Customer credits are provided based on the defined guaranteed response times and associated performance measurements in the contract.

SLA Categories include:

Core network availability and performance degradation

Internet access availability and performance degradation

Local loop access and CPE availability and performance degradation

Operational

Remote access VPN service

Security

Services excluded from SLAs:

Customer managed CPE SLAs only apply if customer provides access

When CPE maintenance is not purchased through MFN-2

Broadband local access if exempt from outage and performance degradation SLAs

During scheduled maintenance

2.2 Contract Improvements for MFN-3

Requirements for the MFN-3 contract can be broadly delineated into technology focused requirements, and business focused requirements. The technology requirements for MFN-3 are consistent with the existing technology requirements associated with MFN-2. The service offerings currently available through MFN-2, as written in the MFN-2 contract, should meet the telecommunication needs of the MFN subscriber community. However, the implementation of MFN-2 has surfaced several issues that primarily relate to issues with SLA violations. There are also several rural circuits that may be better supported by emerging technologies.

For those subscribers that are currently supported, it is expected that the need for bandwidth will increase to the degree that MFN subscribers continue to incorporate video conferencing, live streaming, artificial intelligence, and other digitization strategies. Subscribers will also continue to adopt SaaS service offerings and other cloud hosted applications and services that will further contribute to overall bandwidth demand. The “services” currently offered under MFN-2 will remain consistent with the expected requirements under MFN-3. While there may be needs to add additional “over the top” or “value-add” services in the future, the current foundational service offerings priced competitively with the market will continue to be required offerings for MFN-3.

In addition to translating the current MFN-2 requirements to MFN-3, DMS has identified several areas of improvement that are desired. These additional contracting considerations are detailed in the sections below.

2.2.1 Contract Flexibility to Support Emerging/Evolving Technologies

DMS identified that the current MFN-2 contract is restrictive with respect to the ability to add emerging technologies and tailor the service offerings to ensure DivTel can influence the solutions built to support MFN subscribers. MFN-3 would benefit from more open contracting terms that would permit DMS and the selected contractor to engage in a partnership, in contrast with the current transactional relationship. Emerging technologies could include new potential services like low earth orbit (LEO) satellite services and other last mile integration options.

2.2.2 Contract Flexibility to Support Networking Solution Development

Under the current MFN-2 solution, security services are engineered and provided directly by the MFN contractor. The transactional nature of the current MFN contract limits the level of influence and/or control by DMS on the security solutions and their engineering. The current transactional nature of the MFN-2 contract requires that all requirements for services be determined up front leaving the contractor to then design and implement a system to meet them. There is a low degree of flexibility in the current arrangement for a more collaborative approach to the solution development. Since the solution is completely outsourced, the vendor has full authority in terms of system design and architecture. MFN-3 would benefit from direct oversight and decision-making on which security solutions are implemented as well as how they are integrated into the MFN architecture. For MFN-3, direct selection of security solutions by DMS should be considered.

2.2.3 Decreased Level of Effort and Impacts Associated with Services Migrations

The migration efforts associated with MFN-1 as well as MFN-2 have proven costly and labor intensive for both Florida and the MFN contractors. Contract changes have resulted in a complete redeployment of the entire MFN infrastructure. While these migrations have helped to ensure upgrades to the infrastructure, the one-time nature of these migrations have a significant impact on staff and business disruption to the state during the migration periods. MFN-3, as well as future iterations, would benefit greatly if they could avoid these required wholesale migrations. Upgrades and infrastructure upgrades are still a required component of the MFN but a solution to allow these upgrades to occur organically over time vs. the previous contract change mandated instances would be much easier to support and less costly overall to both Florida and the MFN contractor.

2.2.4 Increased Oversight on Last Mile Service Selection

The current service model under MFN-2 does not afford DMS much influence over last mile vendor selection as these relationships are directly between the MFN contractor and its selected business partners. Under MFN-2 the MFN contractor makes all decisions regarding what last mile service provider is selected for extending connectivity to each MFN connected facility. MFN-3 should provide for more involvement and authority by DMS in this selection process. Under the current MFN-2 solution there have been situations where the cost for delivering service to an MFN facility is found to be higher than the penalties enacted on the vendor for not delivering the services. MFN-3 should address this to ensure that DMS can service all subscriber requirements. The vendor selection oversight and authority would also provide DMS with increased ability to protect the MFN subscribers from continuous extended outages in rural areas associated with poorly designed last mile service provider infrastructures. DMS could choose to migrate such sites with repeated outages to vendors with infrastructure designs more aligned with the MFN business needs despite potential cost differentials. MFN-3 should permit DMS to be directly involved in last mile vendor selection decisions.

2.2.5 Subscriber Consultative Services

MFN-3 would benefit from having the ability for subscribers to request and obtain design consulting and implementation services for network communications solutions that leverage the MFN. Subscriber consultative services are currently available when ordering WAN services, however, additional value will be realized if access to these consultative service offerings is expanded. Whether a subscriber is ordering new services or looking to redesign existing services, for example LAN services or rearchitecting reconfiguring an existing network, end subscribers will benefit from expanding these offerings. Often, subscribers lack the internal expertise required to effectively leverage the services provided by MFN. Having the ability to request assistance from MFN to design and implement solutions that leverage the MFN to meet a subscriber’s requirements would serve to improve subscriber satisfaction with the MFN. This additional support would ensure subscribers leverage MFN correctly as well as help to increase the state’s overall effective use of the investments in the MFN. This would also provide the potential to identify additional ancillary services that could be added to the overall MFN service portfolio as common requirements are found between MFN subscribers through these consultative engagements.

3 Options and Cost Benefit Analysis This section details the options that warrant consideration by DMS with respect to the next generation of MFN, beginning with a discussion of current telecommunications market trends. The options presented are complex in nature with respect to how they interrelate. The choices made with respect to some of the presented options can result in changes in applicability for others. The options in consideration by DMS are described in detail as individual components, and then are arranged into two groupings for the cost benefit analysis.

This analysis differentiates two outsourced contracting approach variations that pertain to last-mile and ancillary services:

1. Single Vendor

2. Multi-Vendor

In the single vendor approach, one vendor is sourced to own and operate the entire scope of the MFN-3 contract. In the multi-vendor approach, a purchasing vehicle with multiple contract categories is setup to enable multiple vendors to provide services for last mile servicing and certain professional services, while a single vendor is still selected to own or manage core MFN-3 services. Therefore, there are two categories of options provided in this analysis:

1. Current-State, Single-Vendor

2. Single-Vendor Core and Backbone, with Multi-Vendor Approach for Last Mile and Ancillary

Services

Within each of the two categories of options, there are multiple selections that can be considered by DMS that fall into the following 3 component types:

1. Backbone Options

a. Shared vs. Dedicated Infrastructure

b. Backbone PoP Facility Options

2. Last-Mile Access Service Options

a. Last mile service diversification

b. Mini-node Deployments for Multi-Tenant Facilities

c. SDWAN

3. Core Services Integration Options

a. Direct ISP Peering with MFN Subscriber SaaS/Content Service Networks

b. Direct MFN Integration with Cloud Services

See Figure 8 below which depicts the component level selections that apply to all three categories of options discussed in this document:

MFN-3 Business Case Page 32

Figure 8: MFN-3 Options

The MFN-2 solution is a fully outsourced model. Under this model, the MFN service provider contracted by DMS is the owner and operator of the solution and the MFN subscribers leverage the solution in an as-a-service manner. The contractor is the owner of record for all associated MFN equipment, physical Points of Presence (PoPs), software, systems, and leased services leveraged to support the MFN services delivered to the subscribers under the associated contract.