KCNA - Wholesale Services

The Commonwealth of Kentucky Finance and Administration Cabinet, on behalf of the Kentucky Communications Network Authority (KCNA), seeks a qualified wholesaler to lease dark fiber and lit fiber services from the KentuckyWired network to Internet Service Providers (ISPs) and other broadband providers on an open-access, non-discriminatory basis. The KentuckyWired network is a 3,400-mile state-owned fiber optic infrastructure spanning all 120 Kentucky counties, currently serving state agencies, universities, community colleges, and courts. The selected vendor must market and lease available middle-mile network capacity while relying on existing network operators for infrastructure support and maintaining non-discriminatory standards across all customer relationships. Key vendor qualifications include experience in commercializing middle-mile fiber networks, establishing separate pricing structures with non-recurring fees for construction and initial expenses plus monthly maintenance charges and transport fees, and complying with a Service Level Agreement requiring specified availability targets and restoration timeframes with associated financial penalties. Technical proposals will be evaluated on 1,700 points across six criteria: Executive Summary (400 points), Company Background (300 points), Technical Approach (200 points), Implementation Plan (300 points), Timeline and Milestones (200 points), and Project Management Plan (300 points); cost proposals are worth 1,000 points; and oral presentations may add up to 500 additional points for a maximum total of 3,200 points. Proposals scoring below 50 percent of maximum technical points will not advance to cost evaluation. The proposal submission deadline is January 21, 2026, at 3:30 p.m. ET, with vendor questions due by December 22, 2025. The initial contract term is four years from the effective award date, with three optional two-year renewal periods available by mutual agreement. Mandatory requirements include submission of technical and cost solutions, a transmittal letter, a mandatory requirements checklist, tax registration forms if applicable, required affidavits, and Commercial General Liability Insurance of $1,000,000 per occurrence and $3,000,000 aggregate prior to award.

Kentucky resident bidder preferences and qualified bidder preferences apply per KRS 45A.490, 45A.492, and 45A.494, potentially benefiting Kentucky-based entities and nonprofit organizations serving individuals with severe disabilities. All proposals must exclude federal excise tax and Kentucky sales or use tax, as the Commonwealth is tax-exempt. Pricing shall be submitted on a firm fixed-unit price basis for the first twelve months; thereafter, price increases require written justification based on industry-wide changes submitted at least thirty days in advance, while price decreases must be implemented immediately. The cost proposal form requires vendors to submit annual total minimum lump sum payments to KCNA and revenue share percentages for both Dark Fiber and Lit Fiber Services based on gross revenue across a ten-year contract period. No incumbent contractor is specified in the RFP documents, and no specific award value or budget range is disclosed; however, the cost evaluation is based on proposed pricing for services over the initial four-year term plus optional two-year renewal periods. The Commonwealth reserves the right to negotiate with the highest-ranked vendor and, if unsuccessful, proceed sequentially to lower-ranked vendors, and retains the right to reject all proposals and decline to award a contract.