SP-1268-21_Final~1.pdf

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REQUEST FOR SPECIAL PROCUREMENT No. SP-1268-21

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

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

2. Date of Request: January 1, 2021 3. Agency Number: 107090

4. Agency Contact Name: Lori Nordlien 5. Phone: (971) 707-0122

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

7. Time Period Requested: From: February 15, 2021 To: January 31, 2026

8. Total Estimated Cost: $1,903,500

9. Title: Supplies and/or Services to be Acquired:

Colocation services within the OneNeck IT Solutions, LLC (OneNeck) data center

10. Request, Background and Proposed Contracting Procedure:

a. Request:

DAS PS, on behalf of EIS/DCS, requests approval of this Special Procurement (SP) No. SP-1268-21 to direct award a contract to OneNeck IT Solutions, LLC, for colocation services in the OneNeck data center in Bend, OR. The contract will allow for relocating core network equipment that is current located in the Oregon Department of Transportation (ODOT) Region 5 (Bend) Headquarters and computer and storage equipment used for possible recovery currently located in the Montana state data center in Helena, Montana.

This core network equipment must be moved to realize the $2,500,000 investment Office of the State Chief Information Officer (OSCIO) has made into Link Oregon. The resulting contract will for be for five (5) years, with a not-to-exceed (NTE) cost of $1,903,500.

b. Background:

Data Center Services (DCS) provides information technology services to state agencies including a statewide data network as required by ORS 276A.206. 276A.406 and 283.140 that connects state office locations to one another and to the State Data Center facility in Salem and to the Internet.

This data network is composed of a network core of data circuits connected to central Points of Presence (PoP) in key cities across the state that aggregate local data traffic from circuits that connect to each state office building in a manner somewhat similar to a hub and spoke arrangement. The network core circuits have a bandwidth capacity of 10 Gb and are leased from telecommunications service providers that have price agreements with DCS.

An Inter-Governmental Agreement (IGA), effective August 1, 2019, between the OSCIO and Oregon

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State University (OSU) related to rights and obligations for a non-profit organization, Oregon Fiber Partnership, dba Link Oregon replaced a previous IGA from 2017 that created the Oregon Fiber Partnership to establish, operate, administer and maintain a statewide fiber optic network. This fiber optic network will be capable of providing long-haul circuits with significantly higher bandwidths at a much lower cost to the state and other qualified entities than are currently available from commercial carriers.

OSCIO paid OSU for $2,500,000 for the fiber optic purchase share per terms of the original 2017 IGA.

This payment allowed Link Oregon to procure the fiber optic right of way agreements and is available to be used as credit for services DCS receives from Link Oregon. Colocation services, which are composed of floor space, rack space to hold computing, storage and networking equipment, power, cooling and other appropriate environmental and security controls, are required in order to realize the benefits of this previous investment.

Current Need:

Colocation services will exist at the OneNeck data center facility located at 63090 Sherman Road, Bend, OR. Link Oregon selected this data center facility as the Link Oregon network Point of Presence in Bend.

The Link Oregon fiber ring will terminate its fiber ring in this location and DCS will install network routing and switching equipment in the OneNeck data center. This network equipment will allow DCS to connect to other telecommunications service providers who also have network equipment in the One Neck data center and who provide circuits to state agencies in the region. The DCS equipment in this location will allow DCS to aggregate state agency network traffic from the state agency field offices and route that traffic to destinations on the state network such as the State Data Center or to the Internet.

Years 1-5 Monthly Charges Annual Total Year 1-Months 1-6 $2,250 $13,500 Year 1-Months 7-12 $35,000 $210,000 Year 2 $35,000 $420,000 Year 3 $35,000 $420,000 Year 4 $35,000 $420,000 Year 5 $35,000 $420,000

Total 5-Yr. Cost: $1,903,500

c. Proposed Contracting Procedure:

• DAS PS will issue a public notice on the Oregon Procurement Information Network (ORPIN) as required by Oregon Administrative Rule (OAR) 125-247-0287, for seven (7) calendar days, regarding approval of the SP request.

• Advertisement of the SP will include provisions that any affected person may protest the approval of the SP. DAS PS will respond to and resolve protests, if any.

• If no protests to this SP are received or sustained, DAS PS will proceed with negotiation and direct award to OneNeck as described in this SP and will obtain DOJ legal sufficiency review and EIS approval, as may be required.

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

Data Center Services (DCS) is in the process of migrating the state’s core network from the leased carrier circuits to Link Oregon circuits for the initial fiber ring Link Oregon is deploying (Ring A) which connects Portland, Salem, Corvallis, Eugene and Bend. This ring will initially upgrade the bandwidth capacity available to the state from 10 Gb to 100 Gb with the ability to increase even higher in the future.

As more state office buildings require higher bandwidth connections, the result is that the total aggregate capacity of the office circuits exceeds the bandwidth of the core circuits. Upgrading the network core to 100 Gb will alleviate this over-subscription.

In most cases, the Link Oregon PoP is in a location DCS current has a presence through an Inter-Agency Agreement (IAA), IGA or a commercial lease except for Bend. In Bend, the Link Oregon PoP will be the OneNeck data center. Currently, the DCS PoP in Bend is in the ODOT Region 5 Headquarters. The ODOT Region 5 Headquarters is not a data center and does not provide the redundant facilities that exist in a purpose built data center facility, nor the access to multiple telecommunications service providers. As such, it does not meet the minimum standards necessary for Link Oregon.

OSCIO has invested in $2,500,000 in Link Oregon which will allow the state to deliver much high bandwidth to state agencies at a much lower cost than is otherwise possible. In order to realize the higher bandwidths and lower costs, DCS must collocate the network routing and switching equipment in the One Neck data center to aggregate the data traffic from the region.

As neither the ODOT Region 5 Headquarters, nor any other state-owned facility on the east side of Cascades has data center facilities, the state has used a state of Montana data center in Helena, MT as a disaster recovery (DR) facility for most of the past decade. Moving the DCS PoP to One Neck will allow for inexpensive access to the Link Oregon network and allow for additional space to locate back-up compute and storage equipment on the east side of the Cascades in the event of a disaster or other incident impacting DCS’ ability to provide services from the State Data Center facility in Salem.

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

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

DCS currently procures over 600 circuits from commercial carriers. Migration of the network core circuits to Link Oregon’s Ring A will reduce the number of circuits procured from commercial provider by less than 1%. The current DCS PoP in Bend is in a state owned facility, as is the back-up data center in Montana.

Therefore, commercial providers are not losing existing state business.

There are three commercial data center providers in eastern Oregon that could potentially provide services as a disaster recovery site, however only OneNeck was identified by Link Oregon to serve as its PoP.

Therefore, DCS using a commercial data center other than OneNeck would introduce additional points of failure (additional routers at each site and an additional circuit) and significant expense ($10,000-20,000 per month for a network connection to the ODOT Region 5 Headquarters for a 100 Gb circuit as an example).

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

or

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

Link Oregon will extend fast, reliable, cost-effective internet and shared network services to K-12, higher education, libraries, Native Tribes, public health care organizations, other public and non-profit facilities and more than 500 state agency locations across Oregon. Access to colocation services in the OneNeck Data Center in Bend is a crucial component to realizing the full range of benefits across all of the participating organizations. This additionally provides the foundation on which disaster recovery infrastructure can be relocated to a more accessible location than Montana while remaining protected on the east side of the Cascades in the event an incident such as Cascadia significantly disrupts state agency operations. Locating this infrastructure on the Link Oregon fiber ring eliminates additional potential points of failure and will allow the state to recover operations more quickly and efficiently.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through ORPIN. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in ORPIN Type Name: Date:

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PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

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

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and

(b) (A) Result in substantial cost savings to the contracting agency or to the public; or

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

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

ORS 279B.085.

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

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

CONDITIONS OF APPROVAL:

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

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

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

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

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

2. ORS 279A.165 Requirements. Authorized Agency shall comply with the requirements of ORS 279A.165 and

OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. Authorized Agency shall comply with all Enterprise Information Services (EIS) conditions and requirements prior to execution of any contracts or amendments and will obtain Department of Justice (DOJ) legal sufficiency review and approval, as may be required.

APPROVED:

Debbie Dennis, State Chief Procurement Officer, Date:

Department of Administrative Services

02/18/2021