B-54583 SSJF Part I.pdf

Sole Source Justification Form

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Bulletin Reference Number 27-448DOIT-TELEC-B-54583

Requesting Agency/University Department of Innovation and Technology

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

Department/Bureau/Section: Department of Innovation and Technology/ Illinois Century Network (ICN)

Need Identified Date: Sep 2, 2026 Supply/Service Need By Date: Dec 1, 2026

Project Title: IRU Dark Fiber Lease

Vendor: Syndeo Networks, Inc.

Provide a description of the supplies or services required:

In order for the DoIT /ICN Dekalb Point of Presence (POP) Site to be fully redundant per internal and external Audit Requirements, Indefeasible Right to Use (IRU) of 4 strands along a new, redundant path from Northern Illinois University POP (375 Wirtz Drive, Dekalb, Illinois) and a point East of the POP Site along the Illinois Tollway, interconnected into the Illinois Tollway Fiber Optic Network (South Peace Road or Somonauk Rd).

Value: Actual Value of Initial Term, this Change Order or Amendment: 202,695.1

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

Section II - Proposed Term

One-Time Purchase Term Contract

Estimated Contract Begin Date: Dec 31, 2026

Estimated Contract End Date: 12/30/2046

Number of Potential Renewals:

Length of Each Renewal in Months:

Total Value of All Renewals:

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:

Current industry practice for Dark Fiber IRU contracts, a 20 year term is standard. Without allowing for the full term, the State would still pay the 20 year fee and only receive 10, or 5 years, not realizing benefits for the extra cost and causing the State to spend between 2 or 4 times respectively. (i.e. the initial cost is the same for 5, 10 or 20 years, which represents a not insignificant cost difference) This occurred with the initial ARRA (American Recovery and Reinvestment Act) Related IRUs that cost the state in this fashion.

Additionally, the ILCS code 30 ILCS 500/20-60 allows specifically DOIT to enter in to 20 year contract for Dark Fiber IRU as it is understood to be an long term infrastructure cost.

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

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Bulletin Reference Number 27-448DOIT-TELEC-B-54583

Requesting Agency/University Department of Innovation and Technology

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

Another justification that this purchase is only available from a sole source is because it is:

Not available from any other vendor (IFB was issued), referenced above, and no suitable response was received.

Another justification that this purchase is only available from a sole source is because it is:

Section V - Purchase History

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

Section VI - Business Rationale

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

In order for the DoIT /ICN Dekalb POP Site to be fully redundant per DOS/Audit Requirements, IRU of 4 strands along a new, redundant path. Dekalb POP Site managed by DoIT requires redundant fiber-optic connectivity which it currently lacks. This procurement will allow the State to reduce its risk to State Agencies, Education and Library constituents by providing a redundant path in and out of Dekalb to maintain services during a fiber hit, maintenance, relocate work or other unforeseen future service impacting events.

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

4 strands of IRU along a new, redundant path from Northern Illinois University POP (375 Wirtz Drive, Dekalb, Illinois) and a point East of the POP Site along the Illinois Tollway, interconnected into the Illinois Tollway Fiber Optic Network (South Peace Road or Somonauk Rd).

Syndeo Networks, Inc. Valuation Dark Fiber Path Name Miles Fiber Fiber Cost/Fiber IRU Fee Maintenance Annual Total Count Miles Mile Cost Cost Cost

Wirtz to W Locust 0.41 4 1.643 $1,700.00 $ 2,793.10 $250.00 $ 410.75 $11,008.10 W Locust to S 4th St 3.38 4 13.524 $1,700.00 $22,990.80 $250.00 $3,381.00 $90,610.80 S 4th St to Somonauk Rd 3.61 4 14.443 $1,700.00 $24,553.10 $250.00 $3,610.75 $96,768.10 Somonauk Rd to Somonauk Rd 0.16 4 0.643 $1,700.00 $ 1,093.10 $250.00 $ 160.75 $ 4,308.10 Interchange (41.900929 - 88.689454) Total 7.56 30.253 $51,430.10 $7,563.25 $202,695.10

The cost of each of the 4 strands is calculated by taking the number of fiber miles and multiplying it by the cost per fiber mile. This gives you a non-recurring IRU Fee. The annual, recurring costs are calculated by taking the fiber miles and multiplying it by a fixed maintenance fee. Then the recurring costs are multiplied by the term (20 yrs) and the non-recurring charge is added to that total to arrive at a 20-year total for that strand

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Bulletin Reference Number 27-448DOIT-TELEC-B-54583

Requesting Agency/University 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?

Based on the results of IFB B-50663 and subsequent technical review conducted by DoIT staff, Syndeo Networks is the only known provider capable of meeting the State's requirements. The IFB was publicly solicited and received no responses from vendors offering existing dark fiber for the required route. Following the unsuccessful solicitation, DoIT staff conducted a field and infrastructure review and verified the presence of existing fiber facilities along the required path between the Northern Illinois University Point of Presence (POP) and the Illinois Tollway Fiber Optic Network interconnection point. This review determined that Syndeo Networks owns and operates the existing fiber infrastructure necessary to provide a geographically diverse and redundant connection without requiring new construction. No other provider was identified as having existing facilities capable of delivering the required service. Accordingly, DoIT has reasonably concluded that Syndeo Networks is the only available source that can satisfy the State's technical, operational, and statutory requirements for this connection.

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:

The requested service is unique because it provides access to four strands of existing dark fiber along a specific 7.56-mile route connecting the Northern Illinois University (NIU) Point of Presence (POP) in DeKalb to the Illinois Tollway Fiber Optic Network. These two endpoints represent significant long-term State investments and require a geographically diverse, redundant connection to support State network operations. The proposed solution includes approximately 30.253 fiber miles under an Indefeasible Right of Use (IRU) agreement and utilizes existing infrastructure, avoiding the need for new construction.Through the State's competitive solicitation process (IFB B-50663), no vendors responded indicating they possessed existing fiber facilities capable of meeting this requirement. Subsequent review by DoIT confirmed the presence of existing Syndeo Networks fiber along the required route and did not identify any alternative providers with existing infrastructure capable of delivering the same connection. As a result, Syndeo Networks is the only known vendor able to provide the required dark fiber service between these specific endpoints without constructing a duplicate communications network. This unique combination of route availability, existing infrastructure, endpoint connectivity, and compliance with State requirements is not available from any other known source.

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

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Bulletin Reference Number 27-448DOIT-TELEC-B-54583

Requesting Agency/University Department of Innovation and Technology

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

DNA Communications was evaluated through its response to IFB B-50663, which was publicly solicited to obtain dark fiber connectivity between the Northern Illinois University (NIU) Point of Presence (POP) and the Illinois Tollway Fiber Optic Network. DNA Communications was the sole respondent to the solicitation.

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:

DNA Communications proposed constructing a new dark fiber route to satisfy the requirement. However, DNA Communications did not possess existing fiber facilities along the required route or another suitable route that would provide the necessary connection between the NIU POP and the Illinois Tollway Fiber Optic Network. As a result, the proposed solution required new construction, significantly increasing both project cost and implementation time. In contrast, Syndeo Networks owns and operates existing fiber infrastructure along the required path and can provide four strands of dark fiber through an Indefeasible Right of Use (IRU) agreement without constructing a new communications network. The State's requirement is to utilize existing infrastructure whenever feasible and avoid unnecessary duplication of communications facilities. The construction of a new fiber route where suitable existing infrastructure is available would not provide additional operational benefits to the State and would be inconsistent with the objectives of 20 ILCS 3921/10, which discourages unnecessary duplication of existing communications networks. Additionally, the proposed Syndeo solution has an estimated 20-year cost of approximately $202,695, substantially less than the alternative build solution, which was estimated at approximately $350,000.

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).

The market evaluation consisted of a publicly advertised competitive solicitation (IFB B-50663) for dark fiber services connecting the NIU POP and the Illinois Tollway Fiber Optic Network. The solicitation sought vendors with existing dark fiber infrastructure capable of supporting the required connection. The procurement resulted in a single response from DNA Communications, whose proposed solution required construction of a new fiber route rather than use of existing infrastructure.Following the solicitation, DoIT conducted a technical review of available infrastructure along the required route and identified existing fiber facilities owned by Syndeo Networks capable of meeting the State's requirements without new construction. DoIT also compared the proposed non-recurring and recurring costs associated with the Syndeo IRU against comparable dark fiber IRUs currently utilized by the State and determined the pricing to be consistent with prevailing costs for similar services. Based on the results of the solicitation, the infrastructure review, and the cost analysis, DoIT concluded that Syndeo Networks is the only known provider capable of delivering the required service using existing facilities while providing the most cost-effective solution for the State.

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?

DoIT took several steps to ensure the proposed pricing is fair and reasonable. First, the State conducted a competitive procurement through IFB B-50663, which provided market pricing for an alternative solution to satisfy the same requirement. The sole response received proposed construction of a new fiber route, resulting in an estimated cost of approximately $350,000, significantly higher than Syndeo Networks' proposed 20-year IRU cost of approximately $202,695.Additionally, DoIT reviewed the proposed non-recurring and recurring charges against pricing for comparable dark fiber IRU agreements and services currently in use by the State. The proposed IRU fee, maintenance costs, and overall cost structure were found to be consistent with rates paid for similar services. DoIT requested the vendor's best and final pricing; however, opportunities for further price reductions were limited due to the lack of alternative providers with existing infrastructure capable of meeting the State's requirements. Based on the competitive procurement results, comparison to existing State fiber agreements, and the substantial cost avoidance achieved by utilizing existing infrastructure rather than constructing a new network, DoIT has determined the proposed pricing to be fair and reasonable and in the best interest of the State.

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

Yes No

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Bulletin Reference Number 27-448DOIT-TELEC-B-54583

Requesting Agency/University Department of Innovation and Technology

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?

If this Sole Source procurement is not approved and a new competitive procurement is required, the State will experience a significant delay in obtaining the redundant fiber connection between the Northern Illinois University (NIU) Point of Presence (POP) and the Illinois Tollway Fiber Optic Network. The NIU POP currently relies on a single communications path, creating a potential single point of failure.

An interruption to that path could result in a loss of connectivity for State agencies and services that rely on the network connection.DoIT's Business Impact Analysis (BIA) identified substantial operational and financial impacts associated with network outages, including disruption of critical agency services, reduced service availability, and loss of productivity. The proposed Syndeo Networks solution provides a geographically diverse and redundant path that reduces these risks and improves overall network resiliency. Requiring a new competitive procurement would likely delay implementation and could ultimately result in a more costly solution, particularly if new fiber construction is required. Approval of this Sole Source allows the State to leverage existing infrastructure, avoid unnecessary duplication of communications facilities, and mitigate the operational risks associated with maintaining a single-path connection.

Historical DoIT Business Impact Analysis estimates identified outage costs exceeding $42,000 per hour for affected agency services;

however, the actual impact today is expected to be greater due to increased reliance on State network services.

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

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Bulletin Reference Number 27-448DOIT-TELEC-B-54583

Requesting Agency/University 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 Nov 4, 2026

Printed Name Jeffery DeMarco E-mail Address jeffery.demarco@illinois.gov

Phone Number 217-836-1890

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 charles.levy@illinois.gov

Phone Number 2176852791 Date Nov 4, 2026

Printed Name Charles Levy

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 217-685-9312 Date Nov 4, 2026

Printed Name Joshua Sergent E-mail Address joshua.sergent@illinois.gov

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Bulletin Reference Number 27-448DOIT-TELEC-B-54583

Requesting Agency/University 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

Additionally, the ILCS code 30 ILCS 500/20-60 allows specifically DOIT to enter in to 20 year contract for Dark Fiber IRU as it is understood to be an long term infrastructure cost.

Q2Answer: 4 strands of IRU along a new, redundant path from Northern Illinois University POP (375 Wirtz Drive, Dekalb, Illinois) and a point East of the POP Site along the Illinois Tollway, interconnected into the Illinois Tollway Fiber Optic Network (South Peace Road or Somonauk Rd).

Syndeo Networks, Inc. Valuation Dark Fiber Path Name Miles Fiber Fiber Cost/Fiber IRU Fee Maintenance Annual Total Count Miles Mile Cost Cost Cost

Wirtz to W Locust 0.41 4 1.643 $1,700.00 $ 2,793.10 $250.00 $ 410.75 $11,008.10 W Locust to S 4th St 3.38 4 13.524 $1,700.00 $22,990.80 $250.00 $3,381.00 $90,610.80 S 4th St to Somonauk Rd 3.61 4 14.443 $1,700.00 $24,553.10 $250.00 $3,610.75 $96,768.10 Somonauk Rd to Somonauk Rd 0.16 4 0.643 $1,700.00 $ 1,093.10 $250.00 $ 160.75 $ 4,308.10 Interchange (41.900929 - 88.689454) Total 7.56 30.253 $51,430.10 $7,563.25 $202,695.10

The cost of each of the 4 strands is calculated by taking the number of fiber miles and multiplying it by the cost per fiber mile. This gives you a non-recurring IRU Fee. The annual, recurring costs are calculated by taking the fiber miles and multiplying it by a fixed maintenance fee. Then the recurring costs are multiplied by the term (20 yrs) and the non-recurring charge is added to that total to arrive at a 20-year total for that strand

Historical DoIT Business Impact Analysis estimates identified outage costs exceeding $42,000 per hour for affected agency services; however, the actual impact today is expected to be greater due to increased reliance on State network services.