B-33580 - Peoria POP SSJF - SPO Signed.pdf

Sole Source Justification Form

Version 7.01 Page 1 of 6

Bulletin Reference Number 23-448DOIT-TELEC-B-33580

Requesting Agency/University Illinois Department of Innovation and Technology

Sole Source Justification Form - Part I Section I - General Information

Department/Bureau/Section: DoIT / ICN

Need Identified Date: Jan 20, 2022 Supply/Service Need By Date: Jan 16, 2023

Project Title: ICN Peoria POP Colocation Contract

Vendor: Windstream

Provide a description of the supplies or services required:

This location is the Peoria point of presence (POP) space that houses DoIT/ ICN network equipment and fiber. This location provides bandwidth and other service to educational entities, municipalities, and state agencies in the western part of Illinois. This location is also a backbone POP for DoIT/ICN.

ICN has been at this location for over 20 years and relocation to another site is not economically feasible and could take up to 3-years to identify, physically build out, and migrate to a new location.

Value: Estimated Value of Initial Term, this Change Order or Amendment: 700,000

Will this Sole Source amend a Professional or Artistic Services contract? Yes No

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Type: New Sole Economically Feasible Source

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Bulletin Reference Number 23-448DOIT-TELEC-B-33580

Requesting Agency/University Illinois Department of Innovation and Technology

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: 1/16/2023

Estimated Contract End Date: 1/15/2028

Number of Potential Renewals: 0

Length of Each Renewal in Months: 0

Total Value of All Renewals: 0

If a Term Contract, does the term, including renewals, exceed 12 months? Yes No

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

DoIT/ICN need a 60 month term, as was done on the last contract, to provide long term security for the network and planning. This POP isn't something DoIT could pack up and move with little notice. The DoIT/ICN fiber network need long term POP contracts for planning and forecasting of deployment of equipment, fiber routes, and service decisions. The DoIT customers in this area all meet DoIT at this location for service, this includes both state agencies and educational customers. A longer term contract allows both DoIT and our customers to enter into longer term service agreement with vendors. DoIT and customers will get lower monthly charges from vendors if they are able to commit to terms. 60 month pricing for access circuits will be much lower than 12, 24, or 36 month terms. A 60 month term will allow for any one time charges to be waived, which is more savings for both DoIT and customers.

It could take up to 3 years and $3 million or more to move to a new POP location. This would include the following:

* hiring an engineering firm to evaluate all potential new locations

* contacting all local units of government to acquire permits and the associated costs

* contacting any railroads along all paths and paying them all associated fees for locates, flagging, crossing permits, etc..

* hiring a fiber construction vendor to provide quotes for locations

* entering into a contract with a new location and the associated costs

* contacting IDOT to coordinate all of the associated IDOT requirements and associated costs

* paying existing circuit and other types of access vendors to move circuits to new location and in some cases, like the backbone OC12, provisioning a new circuit with a higher cost.

* possible need/of: racks, generator, UPS, and central air at the new location so it meets our equipment needs

Section III - Funding Source Select the type of funding to be used (Check all that apply): State Appropriate Funds Federal Funds Other (Explain):

Section IV - Sole Source Justification

This purchase is economically only available from a single source primarily because it is: (If "Other" explain in one sentence)

Compatibility of Equipment, Accessories, Replacement Parts or Service

Are there secondary justification(s) for this sole source? Yes No

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Bulletin Reference Number 23-448DOIT-TELEC-B-33580

Requesting Agency/University Illinois Department of Innovation and Technology

Section V - Purchase History

Has the Agency or University Purchased these supplies or services in the past? Yes No

Term Term From Term To Value Description Contract Number Type

1 1/16/2018 1/15/2023 600,000 ICN Peoria POP Space CIC8068860 Sole Source

2 Jan 14, 2013 Jan 15, 2018 500,000 ICN Peoria POP Space CIC3735400 Sole Source

3 10/15/2012 1/14/2013 24,000 ICN Peoria POP Space CIC3739410 Small Purchase

4 Oct 15, 2002 Oct 14, 2012 700,000 ICN Peoria POP Space CICNMCRENT Sole Source

5 Sole Source

6 Sole Source

7 Sole Source

8 Sole Source

9 Sole Source

10 Sole Source

If more than 10, or if other comments, explain:

Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

DoIT/ICN network must have physical presence in the Peoria area. This location provides the physical and technical infrastructure needed to house an ICN POP, including: fiber; power; and, environmental controls for our equipment. This location has an ICN backbone circuit at this location and backbone ARRA fiber is terminated at this location. Essential state services to citizens would be degraded or unavailable to the citizens of Fulton County and beyond if the connectivity to the POP site was disrupted in any way.

2. Provide a list and describe in detail the specifications required to satisfy the need:

This location provides connectivity to DoIT/ICN customer base as well as other ICN backbone locations. An ICN POP must have the following specifications and this location meets those specifications:

* fiber optic cabling in and out of the building

* conduit access for fiber

* AC/DC power for the network equipment

* emergency generator

* Uninterrupted Power Supply (UPS)

* sufficient space for racks

* environmental controls including air conditioning to control temperature and humidity for equipment

* 24/7 security

* Unescorted access for DoIT/ICN staff

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Bulletin Reference Number 23-448DOIT-TELEC-B-33580

Requesting Agency/University Illinois Department of Innovation and Technology

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

This is a privately owned facility that meets all technical and physical needs. There is not another facility DoIT can move to without spending millions of dollars and years of planning and physically moving. This is the existing location for the ICN POP which houses backbone fiber, circuits and core equipment. This location is interconnected to all other ICN POP's. The cost to move the Peoria POP would be an estimated 3 million dollars as a shadow POP at another location would have to be established and operational before ICN could vacate this location. ICN recently moved another POP in another city and it took a little over 2 years and was very expensive. This move would likely take much longer and would be more expensive. The costs and time frame for this request are estimated based off that recent POP move, and past moves. This includes the cost of a new space for equipment, installation and re-routing of backbone fiber (this includes permits from several entities such as the city of Peoria and all railroads DoIT would cross).

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

DoIT ICN installed state owned and ARRA funded fiber at this location in 2013 which physically ties the ICN fiber backbone to this location. This is the only Windstream central office in downtown Peoria and the ICN POP needs to be in downtown Peoria as DoIT has invested money and physical infrastructure at this location.

5. Has the Agency or University considered alternative supplies or services to satisfy their need? Yes No

5a. If no, why weren't alternatives evaluated?

The cost to move to a new POP site is not feasible. DoIT/ICN would need to find another suitable location in the area that would be willing house us at similar per square foot cost. ICN would also have to hire an engineering firm to study if any potential new location would meet our technical and physical requirements. Local permitting and railroad studies would have to be conducted. A fiber construction vendor would have to be hired to quote moving and installing fiber to any new location.

6. Are there resellers or distributors?

Yes No N/A

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

Cost per square foot for this area of the state is between $10-$15 per square foot. Per square foot cost in downtown Peoria has been estimated at $14.50 as fair market value. Windstream is offering ICN this space at $4.60 per square foot, far less than ICN pays at other downstate POPs. Windstream has maintained these low lease rates for many years

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

Yes No

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

The engineering and construction cost to move to a new location would be millions of dollars and take several years. This location is a great value considering what DoIT is paying per square foot. Also, all the Peoria area state agencies and educational customers meet us at this location for service. If DoIT was no longer at this location, all of the customers would have to move their circuits to meet us at a new location, which will be costly no matter where the new POP was located. DoIT is also able to meet other vendors at this location and save money by cross connecting rather tan paying for expensive vendor circuits to a new location.

10. Is there any additional information you would like to add to justify this sole source?

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Bulletin Reference Number 23-448DOIT-TELEC-B-33580

Requesting Agency/University Illinois Department of Innovation and Technology

Section VII

Requesting Department Representative

Requesting Department Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

Date Dec 14, 2022

Printed Name Joel Vinson E-mail Address joel.vinson@illinois.gov

Phone Number 2175581104

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required

I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed)

E-mail Address Van.Austin@Illinois.Gov

Phone Number 217-524-2733 Date Dec 19, 2022

Printed Name Van Austin

Agency Bureau/Division Head or University Purchasing Director and Not a Designee

SPO Approval and Signature Required

I have reviewed and understand the contents of this Sole Source Justification and agree with the State Agency or University determination.

I have reviewed and understand the contents of this Sole Source Justification and do not agree with the State Agency or University determination. As a result, the State Agency or University must explore other sourcing methods to satisfy their need.

State Purchasing Officer Signature Phone Number 217-206-0722 Date 12/21/2022

Printed Name Kassandra Wilkin E-mail Address kassandra.wilkin@illinois.gov

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Bulletin Reference Number 23-448DOIT-TELEC-B-33580

Requesting Agency/University Illinois Department of Innovation and Technology

Sole Source Justification Form - Part II Section I - General Information

Project Title

Vendor

Initial Date of Procurement Bulletin Posting

Was a Sole Source hearing held per 30 ILCS 500/20-25?

Yes - Complete Section II and III below (Section II will only be visible when this option is selected)

No - Section II not required, go to Section III below Section III - CPO Approval and Signature Required

Based on my review, I authorize the Agency/University to proceed in accordance with the published Notice referenced above.

Based upon my review, I authorize the Agency/University to proceed with the following Changes.

Based on my review, the Agency/University is not authorized to proceed with this sole source as presented and my recommendation is that it be cancelled.

Other

CPO Signature CPO Phone

Printed Name Date

CPO E-mail

Version 7.01 Page of Sole Source Justification Form - Part I Section I - General Information Will this Sole Source amend a Professional or Artistic Services contract?

If yes, what was the original contract value?

*Sole Source may not be used for amendments for Professional or Artistic Services if the amendment would increase the value by more than 5% of the initial award or extend the term by more than 60 days.

Section II - Proposed Term If a Term Contract, does the term, including renewals, exceed 12 months?

If yes, provide a detailed justification including any economic benefit received for agreeing to a multi-year term:

Section III - Funding Source Select the type of funding to be used (Check all that apply):

Section IV - Sole Source Justification Are there secondary justification(s) for this sole source?

Section V - Purchase History Has the Agency or University Purchased these supplies or services in the past?

Term Term From Term To Value Description Contract Number Type Section VI - Business Rationale

1. Provide a detailed explanation of the need for the supplies or services:

2. Provide a list and describe in detail the specifications required to satisfy the need:

3. Provide detail explaining the justification selected in Section IV to explain why the requested supplies or services are the only ones available that can satisfy the agency or university requirements?

4. What are the unique features of the supplies or services that are not available in any other product or by any other vendor? Provide specific quantifiable factors/qualifications:

5. Has the Agency or University considered alternative supplies or services to satisfy their need?

5a. If yes, name the alternative vendors whose supplies or services were evaluated:

5b. If yes, what were the alternatives for each vendor and why were they unacceptable? Be specific with regard to features, characteristics, requirements, capabilities and compatibility:

5c. Explain how the market evaluation was conducted?

*This evaluation is to determine available options within a market. If the evaluation is to determine quality or best suited option, this is not the appropriate source selection. Under no circumstances shall the evaluation consist of testing alternative options. These activities must be conducted in a competitive transparent environment (i.e. IFB or RFP).

5a. If no, why weren't alternatives evaluated?

6. Are there resellers or distributors?

7. What efforts were made to get the best possible price (i.e. did the agency/university negotiate) and how did you determine the price for this purchase is considered fair and reasonable?

8. Will this purchase obligate the State to this vendor for future purchases such as maintenance, licensing or continuing need?

8a. If yes, please provide details regarding future obligations and/or needs:

9. What will be the financial or other impact to the State if this sole source is not approved and a competitive bid is required?

10. Is there any additional information you would like to add to justify this sole source?

Section VII Requesting Department Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed.

State Agency Bureau/Division Head or University Purchasing Director Approval and Signature Required I know and understand the contents of this Sole Source Justification and attest that all statements are true and correct and the fairness and reasonableness of the price was adequately confirmed. (All prior form fields will lock once this e-signature is completed) SPO Approval and Signature Required Sole Source Justification Form - Part II Section I - General Information Was a Sole Source hearing held per 30 ILCS 500/20-25?

Section II - Sole Source Hearing Details The State posted to the Illinois Procurement Bulletin a description of the State's need, the justification for the sole source decision, and information regarding the opportunity to submit comments and testify at a public hearing. Notice of the hearing was also posted outside of the hearing room 48 hours prior to the hearing.

The public hearing was conducted for the purpose of receiving testimony regarding the sole source determination. The Hearing Officer recommends the following:

The following relevant documents are attached:

Section III - CPO Approval and Signature Required 9.0.0.2.20101008.1.734229

ICN has been at this location for over 20 years and relocation to another site is not economically feasible and could take up to 3-years to identify, physically build out, and migrate to a new location.

It could take up to 3 years and $3 million or more to move to a new POP location. This would include the following:

* hiring an engineering firm to evaluate all potential new locations

* contacting all local units of government to acquire permits and the associated costs

* contacting any railroads along all paths and paying them all associated fees for locates, flagging, crossing permits, etc..

* hiring a fiber construction vendor to provide quotes for locations

* entering into a contract with a new location and the associated costs

* contacting IDOT to coordinate all of the associated IDOT requirements and associated costs

* paying existing circuit and other types of access vendors to move circuits to new location and in some cases, like the backbone OC12, provisioning a new circuit with a higher cost.

* possible need/of: racks, generator, UPS, and central air at the new location so it meets our equipment needs

* fiber optic cabling in and out of the building

* conduit access for fiber

* AC/DC power for the network equipment

* emergency generator

* Uninterrupted Power Supply (UPS)

* sufficient space for racks

* environmental controls including air conditioning to control temperature and humidity for equipment

* 24/7 security

* Unescorted access for DoIT/ICN staff