1. Quilt Regional Optical Networking Workshop, June 2004 1 Michigan LambdaRail (MiLR) Fiber RFP Process W. Scott Gerstenberger External Networking Manager University of Michigan

2. Quilt Regional Optical Networking Workshop, June 2004 2 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

3. Quilt Regional Optical Networking Workshop, June 2004 3 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

4. Quilt Regional Optical Networking Workshop, June 2004 4 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

5. Quilt Regional Optical Networking Workshop, June 2004 5 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

6. Quilt Regional Optical Networking Workshop, June 2004 6 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

7. Quilt Regional Optical Networking Workshop, June 2004 7 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

8. Quilt Regional Optical Networking Workshop, June 2004 8 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)

9. Quilt Regional Optical Networking Workshop, June 2004 9