Fiber Enterprise Strategy & Pro Forma

The City of Palo Alto Utilities is requesting proposals for consulting services to develop an updateable Fiber Enterprise Pro Forma and supporting financial analysis, with proposals due October 30, 2026 at 3:00 p.m. and questions due October 21, 2026 at 1:00 p.m.

The scope encompasses four primary tasks: project initiation and information review; supporting market, customer, and operating analysis to validate key model assumptions; Fiber Enterprise Pro Forma development and testing; and findings, recommendations, and knowledge transfer. The work must produce a transparent, staff-maintainable financial model that supports scenario analysis of the City's existing dark fiber services, backbone investments, internal City use, residential fiber internet service, and potential future service offerings and expansion phases. The model should evaluate financial implications of timing, sequencing, scale, and operating approaches for future expansion.

The contract is structured as a Not-To-Exceed Budget Per Task agreement with payment based on percentage of project completion for progress invoicing. Virtual meetings and remote work are expected to be the primary service delivery method; proposers must identify any anticipated in-person meetings or site visits and obtain prior written approval from the City Project Manager before conducting travel not in the approved work plan.

Proposers must submit evidence of financial stability through audited financial statements, reviewed financial statements, a letter from a financial institution or CPA, or a Dun & Bradstreet report prepared within the last twelve months. Evaluation criteria are weighted as follows: proposal quality (10 percent), proposed solution (20 percent), experience (20 percent), cost (15 percent), financial condition and stability (5 percent), timely performance (10 percent), prior government performance record (5 percent), compliance (5 percent), and model usability and knowledge transfer (10 percent). Optional services may be identified and priced separately from the base scope.

Insurance requirements include workers' compensation and employer's liability at statutory limits, general liability of $1 million per occurrence and aggregate, automobile liability of $1 million per occurrence and aggregate, and professional liability including errors and omissions of $1 million all damages. The City must be named as an additional insured on all policies except workers' compensation, employer's liability, and professional insurance. All work product becomes the exclusive property of the City.