NOTICE TO VENDORS REQUEST FOR PROPOSAL RFP HCF-01. IRHTP site to IRHTP Network Ethernet Bandwidth Connectivity (two locations)

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1 NOTICE TO VENDORS REQUEST FOR PROPOSAL IRHTP site to IRHTP Network Ethernet Bandwidth Connectivity (two locations) IRHTP Consortium site Internet Service Healthcare Connect Fund Network Expansion Project Ethernet Connectivity Mr. Art Spies Senior Vice President Iowa Hospital Association 100 East Grand Avenue, Suite 100 Des Moines, IA The Iowa Rural Health Telecommunications Program (IRHTP) will be receiving sealed bid proposals for HCF-01 until 3:00 p.m. CDST, On the 30th day after the posting of the RFP. 0

2 RFP HCP-01 INDEX IRHTP Site to IRHTP Network Connectivity (Two locations) Including build-out services if applicable. - IRHTP Consortium IRHTP hospital site Internet Service - Healthcare Connect Fund Network Expansion Project - Ethernet Connectivity to hospital owned sites. THIS REQUEST FOR PROPOSAL CONSISTS OF SEVEN (7) CHAPTERS, FOUR (4) ANNEXES, AND NINE (9) ATTACHMENTS. CHAPTER TITLE 1 Administrative Issues 2 Contractual Terms 3 IRHTP Hospital Ethernet Connections to IRHTP Network Attachment 1 List of HCP owned Link-Segments and Their Locations Attachment 2 List of HCP owned Switches and Their Locations Attachment 3 Vendor s Response to Chapter 3- IRHTP Hospital To IRHTP Network Connectivity 4 Internet Services For IRHTP Hospitals And Other Sites Attachment 4 IRHTP Hospital Locations Internet Pricing Attachment 5 Future Sites Internet Pricing 5 Ethernet Connectivity Attachment 6 Low and High Speed Internet Service Future Sites Attachment 7 List of Examples of Current Levels of Clinic Ethernet Connectivity Attachment 8 Vendor Response Sheet for Ethernet Connectivity Future Sites Attachment 9 Leased Lit or Dark Fiber Vendor Response Sheet 6 Testing Process and Procedures 7 Evaluation Process and Criteria Annex A Annex B Annex C Annex D Bid Proposal Compliance Form Authorization to Release Information Certification Letter Format IRHTP Participating Sites Listing 1

3 General Information Iowa Rural Health Telecommunications Program This RFP is divided into seven (7) Chapters: Chapter One; is dedicated to RFP administrative issues. Chapter Two: describes Contractual Terms and Conditions. Chapter Three is the first of three technical specification chapters. Its purpose is to secure pricing for a 1 GBs Ethernet platform and connection to two Iowa hospitals, one located in Grinnell, Iowa, and one located in Sigourney, Iowa. While initial bandwidths on these connections may only start out with 20 or 30 Mbs applications, the new healthcare electronic records system as well as future things such as radiology and Internet distribution will cause significant growth in the near future. By having a 1 GBs platform initially installed, the hospital will not have to experience outages while modifications are made to a smaller platform. Chapter Four is to secure pricing for various increments of Internet capacity for the 89 IRHTP member hospitals. The hospital will, in turn, disseminate this Internet over the Ethernet links being asked for in Chapter Five. Chapter Five asks for various increments of Ethernet capacity from the 89 aforementioned IRHTP member hospitals to their hospital owned and operated sites. In each case the A- Location is a member hospital and the Z-Location is one of their owned sites. Chapter Six is the Test and Acceptance specification. Chapter Seven is the Evaluation process. Responsible Party for This Project. The Iowa Rural Telecommunications Program, has submitted an application to become a non-profit 501(c) (6) organization. IRHTP is the consortium of record for this project. IRHTP is incorporated in the State of Iowa pursuant to section of the Revised Iowa Nonprofit Corporation Act. 2

4 CHAPTER 1 ADMINISTRATIVE ISSUES 1.0 General. The Rural Health Care Program of the Universal Service Fund (USF), administered by the Universal Service Administrative Company (USAC), is a support program authorized by Congress and designed by the Federal Communications Commission (FCC) to provide reduced rates to rural health care providers (HCPs) for telecommunications services and internet access charges related to the use of telemedicine & telehealth. The Iowa Rural Health Telecommunications Program (IRHTP) is a joint effort consisting of a consortium of 86 Iowa rural and urban hospitals, two South Dakota hospitals, and the Iowa Hospital Association (IHA). The IHA is functioning as the project coordinator and administrator for the Iowa Rural Health Telecommunications Program. The project coordinator is Arthur J. Spies, Senior Vice President with the Iowa Hospital Association; contact at or spiesa@ihaonline.org. The Iowa Hospital Association (IHA) was asked by the workgroup in December of 2006 to facilitate the development of a proposal to the FCC Rural Health Care Pilot Program. IHA facilitated the process and submitted the IRHTP proposal on behalf of participating Iowa hospitals. The Iowa Hospital Association has and will continue to have responsibility for the general project administration / management that includes: Meeting logistics for the IRHTP steering committee (face to face and conference calls) Communication with IHA Board and participating hospitals Serving as IRHTP project coordinator which Manages the administrative aspects of the build-out of the approved network Completes and submits program forms and supporting documentation; sign off on certifications, invoices, etc USAC payment management Serve as primary point of contact for the project Communicates any requirements/requests to participating entities Assures administrative project documentation Maintains project files Prepares for any audits. The Iowa Rural Health Telecommunications Program (IRHTP) and the Iowa IRHTP Association (IHA) received approval to proceed with the connection of 89 consortium IRHTP sites to the Iowa Communications Network using newly constructed or existing fiber optic cable facilities. IRHTP is now seeking bid proposals for Ethernet bandwidth and connectivity at various health care locations throughout the State of Iowa and surrounding states. The bid response pricing and methodology will be applied to unidentified future IRHTP site locations, as they desire to join the IRHTP consortium. 1.1 Notice. This project is subject to the USAC procurement rules. The IRHTP will submit a USAC Form 465, RFP, and supporting documentation to USAC which will review the 3

5 documentation and will post the RFP on the USAC website. All RFPs will be open for response and bidding for 30 calendar days after the posting. After documents are posted to the USAC website, the following process will commence. 1.2 Schedule and Submission of Proposal Questions and Answers. Vendors are invited to submit written questions and/or requests for interpretation/consideration/acceptance concerning this RFP within five (5) business days from the posting of this RFP. Vendors with questions concerning this RFP may submit questions in writing via to Art Spies at IRHTP will reply to all questions received within four (4) business days following the initial five (5) business day period. Oral questions will not be accepted, and verbal communications shall not override written communications. Only written communications are binding on IRHTP. If the questions, requests for clarifications, or suggestions pertain to a specific section of the RFP, the page and section number(s) must be referenced. IRHTP will prepare a written response to all pertinent questions submitted by Vendors and will post questions and responses on the USAC website; as well as the Iowa IRHTP website, within four (4) business days following the initial five (5) business day period. The IRHTP s written responses will be considered part of the RFP. If the IRHTP decides to adopt a suggestion, the IRHTP will issue an amendment to the RFP Verbal Representations. The IRHTP assumes no responsibility for verbal representations made by its consortium members and representatives unless such representations are confirmed in writing by the IRHTP and incorporated into this RFP Changes and Amendments. In the event it becomes necessary for IRHTP to amend, add to or delete any part of this RFP, the amendment will be posted on the IHA and USAC websites after approval by USAC. Vendor s bid proposal must include acknowledgment of all addenda issued by IRHTP Receipt of Bid Proposals. Bid Proposals must be received at IHA s office no later than 3:00 P.M. CST on the 30th calendar day after the posting of the RFP. This requirement is a mandatory requirement and is not a minor deficiency subject to waiver by the IRHTP. No bid proposals will be accepted after the date and time specified. A late bid proposal shall be returned unopened to the Vendor. Additionally, no bid proposal will be accepted by telephone, electronic mail or facsimile. The bid proposals must be mailed (with mailing in sufficient time to arrive on or before this deadline requirement) or be delivered as follows: Mailing Address: 4 Delivery To: Iowa Hospital Association Iowa Hospital Association Attn: Mr. Art Spies Attn: Mr. Art Spies IRHTP Project Coordinator IRHTP Project Coordinator 100 East Grand Ave. Suite East Grand Ave. Suite 100 Des Moines, Iowa Des Moines, Iowa If bid proposals are delivered by mail service, express courier, delivery service or company, or in person, it shall be the sole responsibility of the Vendor submitting the proposal to insure that such delivery takes place prior to the aforementioned deadline. There shall be no waiving of the deadline due to missed deliveries on the part of the

6 Vendor, Vendor s delivery staff or Vendor s choice of delivery service(s). Deliveries made directly to IHA must be received by an IHA staff person able to accept such delivery Bid Proposal Opening. Successful Vendors will be notified of selection for contract award within 30 calendar days after the end of the RFP posting period (30 calendar days). The bid proposals and the evaluation documents created by the IRHTP will remain confidential until the evaluation committee has evaluated all bid proposals submitted in response to this RFP and the IRHTP has issued a notice of award. The bid proposals submitted and the evaluation documents created by the IRHTP may be available for inspection subject to FCC and USAC guidelines or other applicable law only after the selection process is complete Failure to comply with or supply any and all information requested to accompany bid proposals may be cause for rejection of the proposal as noncompliant All bid proposals shall be firm for a period of 90 days to allow the evaluation committee to fully evaluate all proposals and make an award deemed to be in the best interest of IRHTP By submitting a bid proposal the Vendor agrees to the terms and conditions contained within this RFP. 1.3 Proposal Submission & Format Bid Proposals shall be printed on 8.5 x 11 paper. The proposals should be in 3- ring binders with appropriate tabs for reference. The original bid proposal must be in a package CLEARLY MARKED HCF-01 Proposal on the outer envelope or wrapping. This is necessary to insure that the response package is handled properly for verification of the RFP deadline. Lack of notation of the RFP number may affect the receipt timing and the evaluation process. Vendor should consider this item as a critical factor when submitting a response To achieve a uniform review process and the maximum degree of comparability, proposals shall be organized in the following manner: Title page that includes the subject of the bid proposal, the RFP number being responded to (IRHTP RFP HCF- 01), name of Vendor, address, name of designated contact person, telephone number, facsimile telephone number, address for Vendor s contact person (and, if applicable, the cellular telephone number of contact person) and the date Completed Bid Proposal Compliance Form (Annex A) Completed Authorization to Release Information Form (Annex B) Completed Certification Letter format (Annex C) Number of Copies. Vendors shall submit one (1) with original blue-ink signatures and three (3) copies; in addition four (4) soft copies of the bid proposal shall be provided on (4) CDs using Microsoft Word and Excel, if proposal contains spreadsheets. 1.4 Clarification of Proposals and Obtaining Information. IRHTP reserves the right to contact a Vendor after submission of bid proposals for the purpose of clarifying a bid proposal to ensure mutual understanding. This contact may include written questions, interviews, site visits, a review of past performance. This information may be used to evaluate the Vendor s bid proposal. However, the information received from the Vendor shall not be considered in the 5

7 evaluation of a Vendor s bid proposal if the information materially alters the content of the bid proposal. IRHTP reserves the right to obtain information concerning any Vendor or any proposal from any source and to consider such information in evaluating the Vendor s bid proposal. 1.5 Cost of Bid Proposal. IRHTP is not responsible for any costs incurred by a Vendor, which are related to the preparation or delivery of the bid proposal, or with any other activities carried out by the Vendor as it relates to this RFP. The costs of preparation and delivery of the bid proposal are solely the responsibility of the Vendor. 1.6 Bid Proposal Obligations. The contents of the bid proposal and any clarification thereto submitted by the successful Vendor shall become part of the contractual obligation and incorporated by reference into the ensuing Contract. 1.7 Bid Proposals Property of IRHTP. Except as otherwise stated herein, all bid proposals become the property of the IRHTP and shall not be returned to the Vendor unless all bid proposals are rejected. In the event all bid proposals are rejected, Vendors will be asked to send prepaid shipping instruments to the IRHTP for return of the bid proposals submitted. In the event no shipping instruments are received by the IRHTP, the bid proposals will be destroyed by the IRHTP. Additionally, the evaluation documents created by the IRHTP will be destroyed in the event all bid proposals are rejected. Otherwise, at the conclusion of the selection process, the contents of all bid proposals may be placed in the public domain and be opened to inspection by interested parties subject to appropriate FCC, USAC, and federal procurement regulations. 1.8 Rejection and Disqualification of Bid Proposals IRHTP reserves the right to reject any and all bid proposals, in whole or in part, received in response to this RFP at any time prior to the execution of a written Contract. Issuance of this RFP in no way constitutes a commitment by IRHTP to award the Contract. This RFP is designed to provide Vendors with the information necessary for the preparation of competitive bid proposals. This RFP process is for IRHTP s benefit and is intended to provide IRHTP with competitive information to assist in the selection of goods and services The IRHTP may reject a bid proposal outright and not evaluate the proposal for any one (1) of the following reasons: Failure of Vendor to deliver the bid proposal by the due date and time Failure to include the Bid Proposal Compliance Form signed by an officer of the Vendor submitting the bid proposal (Annex A) Failure to include the Authorization to Release Information Form (Annex B) Failure to include the Certification Letter (Annex C) Failure to submit completed Bid Proposal Submittal Forms (Attachment 3, Attachment 4, Attachment 5, Attachment 6, Attachment 8, and Attachment 9). Vendors should mark the attachments they are not bidding as No Bid The Vendor states that a technical requirement cannot be met The Vendor's response materially changes a technical requirement. 6

8 The Vendor s response limits the rights of the IRHTP The Vendor fails to respond to the IRHTP s request for information, documents, or references The Vendor s exceptions to the contract terms and conditions described in Chapter 2 and Annex A (Bid Proposal Compliance Form) materially changes the terms and conditions of that section or the requirements of this RFP The Vendor provides misleading or inaccurate responses The Vendor s proposal is materially unbalanced The Vendor cannot certify operational readiness by February 1, 2014 or a mutually negotiated contractual date. 1.9 Public Records and Requests for Confidentiality All information submitted by a Vendor may be treated as public information by IRHTP unless the Vendor properly requests that information be treated as confidential at the time of submitting the bid proposal. In the event the Vendor marks each page of its bid proposal as proprietary or confidential without adhering to the requirements of this Section, the IRHTP may reject the bid proposal as noncompliant Any requests for confidential treatment of information must be included in a cover letter with the Vendor s bid proposal and must enumerate the specific grounds which support treatment of the material as confidential and must indicate why disclosure is not in the best interests of the public. The request must also include the name, address and telephone number of the person authorized by the Vendor to respond to any inquiries by IRHTP concerning the confidential status of the materials Any documents submitted which contain confidential information must be marked on the outside as containing confidential information, and each page upon which confidential information appears must be marked as containing confidential information. The confidential information must be clearly identifiable to the reader wherever it appears. All copies of the proposal submitted, as well as the original proposal, must be marked in this manner. Failure to properly mark information as confidential shall relieve the IRHTP from any responsibility if the information is viewed by the public, a competitor, or is any way accidentally released In addition to marking the material as confidential material where it appears, the Vendor must submit one (1) hard copy (printed) of the bid proposal from which the confidential information has been excised. This hard copy of the proposal MUST be clearly marked as Excluding Confidential Materials. In addition to a hard copy, the Vendor must also include an electronic copy of the non-confidential portions of the proposal on CD-ROM using Microsoft Word and Excel as appropriate. The confidential material must be excised in such a way as to allow the public to determine the general nature of the material removed and to retain as much of the document as possible. The excised version must be submitted with the cover letter and may be made available for public inspection. This submittal is a mandatory requirement and is not subject to waiver. Failure to mark the confidential items and to provide the required one (1) copy with confidential information excised shall be defined as allowance for the entire proposal to be treated as a public record. 7

9 1.9.5 The Vendor s failure to request in the bid proposal confidential treatment of material pursuant to this Section and the relevant laws and administrative rules will be deemed by IRHTP as a waiver of any right to confidentiality which the Vendor may have had Restrictions on Gifts and Activities. No gifts or other items of value will be accepted by any IRHTP officer, board member, or employee 1.11 Restriction on Communication. Vendors should funnel all communications thru the Project Coordinator in order to receive the highest quality response from the consortium Nonmaterial and Material Variances. The IRHTP reserves the right to waive or permit cure of nonmaterial variances in the bid proposal if, in the judgment of the IRHTP, it is in the IRHTP s best interest to do so. Nonmaterial variances include minor informalities that do not affect responsiveness; that are merely a matter of form or format; that do not change the relative standing or otherwise prejudice other Vendors; that do not change the meaning or scope of the RFP; or that do not reflect a material change in the services. In the event the IRHTP waives or permits cure of nonmaterial variances, such waiver or cure will not modify the RFP requirements or excuse the Vendor from full compliance with RFP specifications or other contract requirements if the Vendor is awarded the contract. The determination of materiality is in the sole discretion of the IRHTP Copyrights. By submitting a bid proposal, the Vendor agrees that IRHTP may copy the bid proposal for purposes of facilitating the evaluation or to respond to requests for public records. The Vendor consents to such copying by submitting a proposal and warrants that such copying will not violate the rights of any third party. IRHTP will have the right to use ideas or adaptations of ideas, which are presented in the proposals. In the event the Vendor copyrights the bid proposal, the IRHTP may reject the bid proposal as noncompliant Conflict between Terms. IRHTP reserves the right to accept or reject any exception taken by the Vendor to the terms and conditions of this RFP. Substantial variations between the Vendor s terms and conditions and those contained in this RFP may be grounds for rejection of the Vendor s bid proposal as non-responsive and non-compliant Release of Claims. With the submission of a bid proposal, Vendor agrees that it will not bring any claim or have any cause of action against IRHTP or its consortium members based on any misunderstanding concerning the information provided herein or concerning IRHTP s failure, negligent or otherwise, to provide the Vendor with pertinent information as intended by this RFP Construction of RFP with Laws and Rules. Changes in applicable laws and rules may affect the award process or the resulting Contract. Vendors are responsible for ascertaining pertinent legal requirements and restrictions. Vendors are encouraged to visit the USAC Healthcare Connect Fund website: RFP Copy. Copies of the RFP will be available on the USAC Healthcare Connect Fund Program web site at The RFP will also be available to vendors via the Iowa IRHTP site Association web site: click on members and groups and then click on IRHTP. Vendors may also request a copy of the RFP electronic copy by contacting Mr. Art Spies at spiesa@ihaonline.org (515) (copy requested will be issued via ). 8

10 1.18 Downloading RFP from the Internet. The RFP, Amendments, and all responses to Vendor questions will be posted on the Iowa IRHTP site Association web site at Vendors are advised to check the IHA website periodically for amendments to this RFP as Vendors will not automatically receive Amendments and responses Definition of Contract. The full execution of a written contract shall constitute the making of a contract for services and no Vendor shall acquire any legal or equitable rights relative to the contract services until the Contract has been fully executed by the successful Vendor and the IRHTP Award Notice and Acceptance Period. The IRHTP will send an Award Notice to all Vendors submitting a timely bid proposal. Negotiation and acceptance of the contracts shall be completed with the successful Vendor no later than 60 days after the Award Notice. If an apparent successful Vendor fails to negotiate and deliver the executed contract by that date, the IRHTP may, in its sole discretion, cancel the award and award the contract to the next highest ranked Vendor. The IRHTP reserves the right to continue negotiations after 60 days if, in IRHTP s sole discretion, IRHTP deems it to be in the best interests of IRHTP to do so No Minimum Guaranteed. The IRHTP anticipates that the selected Vendor will provide services as requested by the IRHTP. The IRHTP will not guarantee any minimum compensation will be paid to the Vendor or any minimum usage of the Vendor s services Criminal History and Background Investigation. The IRHTP reserves the right to conduct criminal history and other background investigations of the Vendor, its officers, directors, shareholders, or partners and personnel retained by the Vendor for the performance of the Contract. 9

11 2.0 Contractual Terms Generally. CHAPTER 2 CONTRACTUAL TERMS General Contract Terms. The Contracts, which the IRHTP expects to award, will be based upon the bid proposal submitted by successful Vendors (Vendors awarded the Contract) and this solicitation. The Contracts between the IRHTP and the Vendor shall be a combination of the specifications, terms and conditions of the Request for Proposal, the offer of the Vendor contained in its bid proposal, written clarifications or changes made in accordance with the provisions herein, and any other terms deemed necessary by the IRHTP Negotiated Terms. Vendors should plan on negotiated terms being included in any Contract awarded as a result of this RFP. All costs associated with complying with these requirements should be included in any pricing quoted by the Vendor Acceptance/Exceptions. By submitting a bid proposal, each Vendor acknowledges its acceptance of these specifications, terms and conditions without change except as otherwise expressly stated in the appropriate section of the Bid Proposal Compliance Form (Annex A). If a Vendor takes exception to a provision, it must state the reason for the exception and set forth in Annex A of its bid proposal the specific Contract language it proposes to include in place of the provision. Exceptions that materially change these terms or the requirements of the RFP may be deemed non-responsive by the IRHTP, in its sole discretion, resulting in possible disqualification of the bid proposal. The IRHTP reserves the right to either award a Contract without further negotiation with the successful Vendor or to negotiate Contract terms with the selected Vendor if the best interests of the IRHTP would be served. 2.1 Additional Cost Items Not In Contract. IRHTP is unaware of any additional Contract terms that would add cost. Notwithstanding, should any Contract items arise that would cost additional monies; those costs shall be borne by the Vendor. 2.2 Additional Vendor Information. Service providers that intend to respond to this RFP must secure a Service Providers Identification Number (SPIN) from USAC. Service providers with existing SPIN numbers must submit a FCC form 498 to renew their eligibility. See the USAC website for details on how to secure a SPIN. 2.3 Mandatory Vendor Information Mandatory Vendor requirements The purpose of this paragraph is to identify the mandatory elements of information a Vendor must supply before any consideration will be given to a proposal.. All information listed below is required or at least an indication that the Vendor meets or exceeds the mandatory requirement for the following background information: Name, address, telephone number, fax number and address of the Vendor including all d/b/as or assumed names or other operating names of the Vendor Form of business entity, i.e., corporation, partnership, proprietorship, limited Liability Company. 10

12 State of incorporation (if a corporation). If a limited liability company, state of formation. The successful Vendor will be required to register the Iowa Secretary of State to do business in Iowa. If already registered, provide the date of the Vendor s registration to do business in Iowa Local office addresses and phone number Number of employees Type of business Name, address and telephone number of the Vendor s representative to contact regarding all contractual and technical matters concerning this proposal Name, address and telephone number of the Vendor s representative to contact regarding scheduling and other arrangements Vendor must provide the following legal or administrative information During the previous five (5) years, describe any damages or penalties or anything of value traded or given up by Vendor under any of its existing or past contracts as it relates to services performed that are similar to the services contemplated by this RFP and the resulting Contract. If so, indicate the reason for the penalty or exchange of property or services and the estimated account of the cost of that incident to the Vendor During the last five (5) years, describe any order, judgment or decree of any Federal or State authority barring, suspending or otherwise limiting the right of the Vendor to engage in any business, practice or activity. 2.4 Pricing and Cost Information. IRHTP will consider the purchase or lease of circuits and/or network equipment necessary to make a broadband service functional in conjunction with providing support for the broadband service. Equipment is defined as that hardware and software necessary to manage, control, or maintain a broadband service or a dedicated health care network. 2.5 Identify All Costs. Vendors submitting proposals should identify all costs associated with the solution or subset solution that they are quoting. Not all of the costs associated with the solutions will necessarily qualify for HCF funds, and it is critical that IRHTP and participants understand the complete cost of ownership. Quotes must include the following: For telecommunications solutions: Implementation Fees, including any cost of required hardware, for end-toend connectivity Ongoing transmission fees for end-to-end connectivity Tax/surcharge rate that will apply Any other costs associated with the solution and/or description of requirements that are prerequisites for the solution that may add additional cost to IRHTP and its participants For hardware and/or software solutions: Purchase price Installation costs Maintenance costs, including subscriptions, hardware, and software. 11

13 Shipping charges Ongoing support costs and support hour limits that may add costs Tax/surcharge rate that will apply Any other costs associated with the solution and/or description of requirements that are prerequisites for the solution that may add additional cost to IRHTP and its participants For Internet Services: Implementation Fees, including any cost of required hardware, for end-toend connectivity Ongoing transmission fees for end-to-end connectivity Ongoing subscription fees Any other costs associated with the solution and/or description of requirements that are prerequisites for the solution that may add additional cost to IRHTP and its participants For Ethernet Services Implementation Fees, including any cost of required hardware, for end-toend connectivity Ongoing transmission fees for end-to-end connectivity Ongoing subscription fees Any other costs associated with the solution and/or description of requirements that are prerequisites for the solution that may add additional cost to IRHTP and its participants. 2.6 Implementation Schedule Description Vendors should include a plan with a timeline that provides a clear understanding of the vendors capacity to implement each of the various methodologies by a given time. Unless otherwise noted, the optimal date for turn-up of many of these service requests is February 1, 2014, which corresponds to the beginning of the HCF funding cycle, though IRHTP recognizes that various projects will not be implemented as of that date. The Vendors implementation timeline should allow time for testing the implemented circuits/services. Additionally, please identify any circumstances that may create potential delays. Meeting healthcare provider mission critical timing requirements will be one of the proposal evaluation criteria. 2.7 Service and Performance Level Agreements The IRHTP consortium expects that any contracts resulting from this RFP will contain guarantees to the performance of the proposed solution to the specified speeds, transaction volumes, uptime rates, etc. Please include information regarding service levels and any service level guarantees associated with the solution, including uptime and response time guarantees. Vendors are encouraged to include strong guarantees, as this will be one of the proposal evaluation criteria. Please see Chapter 6, Paragraph Contracting Provisions The Healthcare Connect Fund provides an opportunity for HCPs to receive a significant subsidy relating to a wide range of eligible telecommunications products and services. However the rules of the program demand that consortia, HCPs, and vendors adapt their standard processes and contracts to effectively take advantage of this opportunity. Based on IRHTP s review of 12

14 the Healthcare Connect Fund Order and associated FAQs, we intend to require that vendors comply with the following contracting provisions: Payment. Vendors submitting bids should be aware that the payment process for the HCF may not reflect Vendors current billing practices. Contracted vendors will bill the IRHTP consortium directly for all contracted services IRHTP will have a separate invoicing arrangement with each participating HCP through which HCPs will contribute their 35% share plus their fair share of network administration, management, and equipment costs. Vendors will be required to incorporate payment term contract language that is consistent with the above process and guarantees the vendor will comply with the requirements of the Healthcare Connect Fund Once the bill is received by IRHTP, IRHTP will send the vendor a remittance in the amount of 35% of the billed amount. In order to receive the remaining 65% of the billed amount, the vendor will need to certify to USAC that certifies that the 35% payment was received from IRHTP and that the bill accurately reflects the services the HCP is receiving and that the invoicing package is accurate, after which the vendor will choose either to receive a direct payment or to off-set the vendors USF contributions by the 65% amount Existing Connections/Services. In some cases, bids are being requested for connections/services that already have circuits in place and are under existing contract. Vendors holding these contracts should view this RFP as an opportunity to extend or expand what is already in place and are under existing contract. If existing vendors bids are deemed to be the most cost effective, the existing vendors solutions may be selected with whatever contract modifications are required to meet the new circumstances and HCF rules. Alternatively, existing contracts that were bid through the traditional program may be evergreen Existing Infrastructure. The IRHTP consortium philosophy is to contract with multiple vendors to the extent that where sufficient vendor infrastructure is already in place, vendors have opportunity to provide beneficial pricing due to the previous investment. This being said, we are open to including Master Service Agreement (MSA) language with any selected vendors that allows us to add new network participants at specified pricing. Without such an MSA, IRHTP will need to undergo a new competitive bidding process every time a new participant wishes to join the consortium. To the extent that vendors are willing and able to include MSA language for a specific service area that meets the HCF requirements for specified pricing, proposals for such contract language are encouraged and will be considered. HCF FAQ language relating to MSAs and implications for adding new facilities are end noted at the end of this chapter Future Sites. As indicated in Chapter 4 of this RFP, the current 89 participating and eligible HCPs, as well as an unknown number of future eligible HCP sites, are the first phase of what is expected to be a growing number of HCP s that will decide over time to participate in the IRHTP consortium. It is feasible that over the next 15 years, the consortium may see many sites participating. IRHTP will be requesting that language be included in the contract in order to maximize our ability to grow in every case without issuing a new RFP Evergreen Contracts. IRHTP wishes to maximize the opportunity to Evergreen contracts that results from this RFP. According to HCF FAQ language, A new contract entered into by an HCP or consortium as a result of competitive bidding will be 13

15 designated as evergreen if it meets all of the following requirements: Signed by the individual HCP or consortium lead entity; Specifies the service type, bandwidth and quantity; Specifies the term of the contract; Specifies the cost of services to be provided; and Includes the physical addresses or other identifying information of the HCPs purchasing from the contract Variable Bandwidths. In those circumstances in which variable levels of bandwidth are being requested and quoted, vendors will be asked to incorporate the variable bandwidth levels and associated costs into the contract in order to allow HCPs to turn up their bandwidths without the need to engage in a new competitive bidding process Contract Extension Language. Vendors will be asked to incorporate contract language that allows HCPs to voluntarily extend their contracts beyond the first ten-year period by allowing one five-year renewal. HCF rules allow for such extensions to be executed without the need for a new competitive bidding process The following sample contract language would meet this contracting requirement: Prior to the expiration date, the customer shall have the option to voluntarily renew the initial 10-year Service Order for an additional Five (5) Year Service Period equaling a total of 15 years Another contracting consideration relates to the maximum three (3) year length of an HCF funding commitment. (See endnote #5) Even though it is anticipated that the HCF will fund connections/services for contracts resulting from this RFP for beyond the three (3) year guaranteed commitment, it s important for IRHTP and participant HCPs that cannot risk losing the subsidy after 3 years to structure contracts in a way that does not commit them beyond the three (3) year period. This can be achieved either by the vendor including term language that allows IRHTP participants to execute early termination of longer term contracts in the circumstance that HCF funding were to no longer be available after the three (3) year funding commitment Master Agreements will be between IRHTP and the vendor with HCPs signing subcontracts. The IRHTP project coordinator will facilitate and coordinate the contracting and payment process. (Refer to Chapter 1, paragraph 1.0) Each HCP participating in consortium contracting will be signing a service agreement with IRHTP that includes their vendor sub-contract as an addendum. We are in the process of considering how we propose to handle sub-contract severability language Additional contract terms, including any required by participating HCPs, will be discussed and negotiated with selected vendors. End note #3 An MSA is a contract (typically multi-year) between HCPs in a consortium and a vendor that contractually obligates the vendor to offer certain services to existing and/or future members of the consortium at specified pricing. An MSA under the Healthcare Connect Fund also may be a contract that has been negotiated by a federal, state, Tribal, or local government from which HCPs may be entitled to purchase services. Such MSAs must have been negotiated pursuant to competitive bidding. See HCF Order* at paras for more details regarding the circumstances under which HCPs may rely on MSA s 14

16 End note #4 Can consortia add new HCPs to their networks without going through the competitive bidding process? Yes, as long as adding new HCPs was contemplated in the original request for competitive bids. If adding additional HCP sites was not a part of the original bid solicitation, the applicant must conduct a new competitive bidding process. However, if adding new sites was contemplated in the original bid solicitation, applicants do not need to complete the competitive bidding process again to add new HCPs to the network. See HCF Order* at paras and for additional information. This is true even if a consortium requests more than $100,000 in funding in a year to add new sites to its network using its original bid solicitation. If either the first or the second renewal option is not exercised, this Service Order shall automatically renew for successive one-month terms unless either party terminates this Service Order by giving thirty (30) days prior written notice to the other party before the expiration of the current term. End note #5 Are applicants guaranteed a certain amount of funding through the Healthcare Connect Fund? No. Funding requests for all applicants are processed on a first-come, first-served basis, unless USAC has established a filing window, in which case all applications received within the window will be deemed to have been filed at the same time. The Commission has stated that it does not anticipate that it will reach the $400 million funding cap for all rural health care programs in the foreseeable future. However, because funding is not guaranteed, an applicant may choose to include in any contract it makes with a vendor a provision governing the effectiveness of the agreement if the applicant does not receive a funding commitment from USAC. See HCF Order* at paras for more information. Can an applicant receive support for a 36-month contract for eligible services if it covers a time period that spans more than three funding years? No. Applicants in the Healthcare Connect Fund can only receive a multi-year funding commitment that covers a period of up to three funding years. Accordingly, any months outside of the three funding years would not be covered by the commitment. For example, if an applicant requested a 36-month funding commitment for services starting on July 1, 2014, USAC could issue a 36-month funding commitment that would expire on June 30, 2017, and the applicant would receive a commitment for the full 36 month period. However, if an applicant requested a 36-month funding commitment for services that started on January 1, 2014, USAC could issue only a commitment for services for the remaining six months of funding year 2013, and all of funding years 2014 and Although the applicant s contract would also cover six months of funding year 2016, it would not be covered by the multi-year funding commitment. Accordingly, the commitment would end on June 30, See HCF Order* at paras for more information on multi-year funding commitments. 15

17 CHAPTER 3 HOSPITAL ETHERNET CONNECTIONS TO IRHTP NETWORK 3.0 Purpose of This Chapter. The Iowa Rural Health Telecommunications Program (IRHTP) is soliciting proposals from qualified fiber optic network providers to provide a 1 GBs Ethernet link-segment platform to two IRHTP hospitals. One hospital location is in Grinnell, Iowa and the other is located in Sigourney, Iowa. The connections will terminate at the nearest IRHTP aggregation point (See Attachments 1 and 2). 3.1 Evergreen Contracts. It is the intent of the IRHTP to establish Evergreen (automatically renewing) contracts with the Vendor Bandwidth Procurement. The initial bandwidth overlaid on these 1 GB Ethernet platform connections may only a 30 MBs application; however, the new healthcare electronic records system and future applications such as radiology and internet distribution will cause significant growth in the very near future. By requiring a 1 GBs Ethernet platform to be initially installed, the hospital will not have to experience outages while modifications are made to upgrade smaller bandwidth platforms. 3.3 Link-Segments A link-segment is generally defined as the fiber optic facility beginning at the health care provider s (HCP) Alcatel-Lucent 7210 edge switch and continuing on until terminated on the Alcatel-Lucent 1692 aggregation switch currently at a designated IRHTP aggregation point Each link-segment constructed or provided as part of this project is engineered and tested for a minimum of one gigabit of throughput from the local hospital to the specified IRHTP aggregation point. 3.4 Handoff. Methodology of the handoff will be negotiated with the successful vendor at contract signing. 3.5 Vendor Requirements The Vendor must submit a detailed overview of the proposed network, and how the vendor proposes to implement the installation, testing, and handoff of the new service The Vendor must detail the process on the method to accomplish the HCP incremental change of bandwidth and the respective change in billing process Vendor must fulfill all of the requirements of Chapter 6 of this RFP, Testing Process and Procedures The Vendor must detail the process for issuing reimbursements for lost service All installation charges resulting from the implementation of this Chapter 3 and all other fees and taxes or other charges must be imbedded in the monthly rate. IRHTP will pay no other costs other that the costs submitted on the Bid Submittal form Attachment 3 (Bid Response Sheet Hospital to IRHTP Network Connectivity) requires an inclusive initial 10-year term price, with one voluntary renewal term of five (5) years. All costs, installation, build out (if necessary), equipment, and maintenance must be included in the monthly rate) requires an inclusive initial 10-year term price, with one voluntary renewal term of five (5) years. All costs, installation, build out (if necessary), equipment, and maintenance must be included in the monthly rate. 16

18 3.6 Local Hospital. IRHTP has designated a local on-site coordinator at each participating hospital. The on-site coordinator has designated the location of the fiber termination within the building. Any service turn-up must be coordinated with this on-site coordinator. 3.7 Change Orders. The vendor must submit a firm fixed monthly price for each site bid for each increment listed on the Attachment 3 Bid Submittal Form. There are no funds set aside or budgeted for contingencies or change orders. 17

19 ATTACHMENT 1 LIST OF HCP OWNED LINK-SEGMENTS AND THEIR LOCATIONS Line HCP HCP Address Distance Distance Aggregation Point Address Grinnell Community Senior High School 1333 Sunset Street. Grinnell, Iowa 1 Grinnell Regional Medical Center th Avenue Grinnell, Iowa, mi 1.44 km Keokuk County Health Center Highway 149, Sigourney, IA mi Sigourney Jr/Sr High School 907 East.85 km Pleasant Valley ATTACHMENT 2 LIST of HCP OWNED SWITCHES AND THEIR LOCATIONS Line HCP HCP Address Aggregation Point Address MPLS Switch Location Grinnell Community Senior High Iowa Valley Comm College, 3700 School 1333 Sunset Street. South Center Street Marshalltown, 1 Grinnell Regional Medical Center Grinnell, Iowa Iowa Keokuk County Health Center th Avenue Grinnell, Iowa Highway 149, Sigourney, IA Sigourney Jr/Sr High School 907 East Pleasant Valley Indian Hills Comm College, 525 Grandview Ave. Ottumwa, IA

20 ATTACHMENT 3 VENDOR S RESPONSE TO CHAPTER 3 - HOSPITAL TO IRHTP NETWORK CONNECTIVITY BID SUBMITTAL FORM Note: The Bid Submittal Form consists of one (1) page. This page must be signed by an officer of the company and dated: Line # HCP name HCP Address 30 Mbs 60 Mbs 100 Mbs 200 Mbs 500 Mbs 1 Gb/s > 1 Gb/s 1 Grinnell Regional Medical Center th Avenue, Grinnell, Iowa Keokuk County Health Center Highway 149, Sigourney, IA Officer Signature Date 19

21 CHAPTER 4 INTERNET SERVICES FOR IRHTP HOSPITALS AND OTHER SITES 4.0 General Information: A consortium of Iowa hospitals, belonging to the Iowa Rural Health Telecommunication Program (IRHTP), is requesting proposals for Internet service to existing and future sites IRHTP is a FCC Pilot Program participant and therefore qualifies to submit this RFP and other documentation to receive funding through the newly created FCC Healthcare Connect Fund (HCF) as early as February 1, IRHTP is seeking proposals, which will receive partial funding through the Healthcare Connect Fund (HCF), for the non-recurring costs (NRC) associated with provisioning the leased service in addition to 10 years of monthly recurring costs (MRC) for all 89 of the IRHTP Consortium locations. The proposal should also include a voluntary renewal option for an additional five (5) years In the Pilot Program, IRHTP coordinated the installation of broadband access to 89 IRHTP hospital sites and other healthcare providers (HCPs). With the addition of the Healthcare Connect Fund and this RFP, IRHTP is expanding its focus to fund a wide range of healthcare-related broadband use locations for the 89 currently eligible Iowa HCPs that have signed Letters of Agency to allow IRHTP to request bids on their behalf Once the bids are received, these HCPs will determine their intention to proceed to the contracting phase of the process Those HCPs that proceed to contracting will authorize IRHTP to submit forms and process payments on their behalf for any accepted bids issued as a result of this RFP process Note that the current 89 participating HCPs listed in Attachment 4 are the first phase of what is expected to be a growing number of HCPs that decide over time to participate in the IRHTP consortium. It is feasible that over the next 15 years there will be additional sites participating. These sites are not identified in this RFP, but the Vendor must be willing to accept these future sites into the same pricing scenario as the initial 89 sites. 4.1 Bidding Instructions specific to this section Unless otherwise noted, bids for Internet service should be for an initial 10-year contract period beginning as early as February 1, USAC rules provide for one voluntary five-(5) year renewal Additionally, it should be noted that reasonable and customary installation charges up to $5,000 and upfront charges for service provider deployment of new or upgraded facilities up to an average of $50,000 per consortium member are eligible for funding through the HCF consortia program (unlike the traditional USAC program). Any requirements for upfront charges should be clearly stated in all proposals. All costs must be included in the vendor s response Upfront payments. Upfront payments include all non-recurring costs for services, equipment, or facilities, other than reasonable and customary installation charges of up to $5, Limitations. The following limitations apply to all upfront payments: 20