1Quilt Regional Optical Networking Workshop, June 2004

Michigan LambdaRail (MiLR)

Fiber RFP Process

W. Scott Gerstenberger

External Networking Manager

University of Michigan

2Quilt Regional Optical Networking Workshop, June 2004

MiLR Fiber RFI

• RFI for dark fiber issued in May 2003

• intended as a discovery process

• asked for budgetary pricing

• received 10 responses

• met with many potential providers

• initial business plan developed and approved as a result

• learned enough to write the MiLR Collaboration Agreement and issue a fiber RFP

3Quilt Regional Optical Networking Workshop, June 2004

•Retained fiber acquisition consultant (Victor Braud)

•Project Team from the three schools developed RFP with University of Michigan Purchasing

•RFP issued in September 2003

•specified 750-mile ring (Detroit-Ann Arbor-Chicago-East Lansing-Detroit), 20-year IRU

•8-page RFP, email only, 2.5 weeks to respond

•sent to 30 vendors, received 11 responses

•emphasized desire to be flexible, to seek innovative solutions, multiple providers OK

MiLR Fiber RFP

4Quilt Regional Optical Networking Workshop, June 2004

•listed desired topology (long-haul, metro, and campus laterals)

•left strand count flexible

•fiber acquisition by IRUs, but specified separate, 5-year renewable O&M and colocation contracts

•specified intent to light with DWDM

•evaluation criteria: compliance with specs, ease of metro/lateral interconnects, customer references, and overall cost

MiLR Fiber RFP Elements

5Quilt Regional Optical Networking Workshop, June 2004

•Selected two providers to cover all the needed segments

•Expected long-haul price points met, O&M cost invariant for 2, 4, or 6 strands

•Notified FiberCo/Level 3 and WilTel in November 2003 of intent to award purchase of 6 strands subject to contract negotiation

•Retained outside legal counsel to work with the two carriers and the university lawyers

•Took ~90 days to negotiate contracts

MiLR Long-Haul Fiber Selection

6Quilt Regional Optical Networking Workshop, June 2004

•Metro fiber prices were fairly high

•Considered building some Detroit and Chicago segments using WilTel as a contractor (based on use of SBC duct)

•Kept Purchasing Departments involved throughout

• In November, started to engage other schools for shared Chicago fiber buy

• In February, a subset of the CIC CIOs decided to push hard on the idea of a common buy for Chicago fiber

MiLR Metro Fiber Selection

7Quilt Regional Optical Networking Workshop, June 2004

•With agreement of University of Illinois Purchasing, Michigan issued a fast turn around Addendum to original RFP but only asking for Chicago fiber and in larger quantities

•Received much lower pricing for ring strands, strand-count independent lateral charges, and made feasible a new diverse lateral build into StarLight

•Group has decided buy 38 pairs on three loops at an average price of $35k per pair including 20 years of maintenance paid up-front

MiLR Metro Fiber Evaluation

8Quilt Regional Optical Networking Workshop, June 2004

Fiber Acquisition Decisions

•Summary of three fiber IRU acquisitions:

•FiberCo/Level 3: Detroit-Ann Arbor-Kalamazoo-Chicago (325 miles) plus Detroit metro (45 miles)

•WilTel: Detroit-East Lansing-Grand Rapids-South Bend-Chicago (375 miles)

•Buying 10 strands in 9-university CIC 76-strand group buy of Chicago metro fiber from Level 3 and Looking Glass (~15 miles)

9Quilt Regional Optical Networking Workshop, June 2004