THE CITY OF NEW YORK DEPARTMENT OF INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS REQUEST FOR PROPOSALS FOR FRANCHISES AUTHORIZING CONSTRUCTION AND PROVISION OF LATERAL DUCTS AND RELATED FACILITIES TO HOUSE TELECOMMUNICATIONS FIBER LINKS TRANSMITTING LOCAL HIGH-CAPACITY TELECOMMUNICATIONS SERVICES BETWEEN MAINLINE SYSTEMS AND BUILDING ENTRANCES IMPORTANT : IT IS UNLAWFUL TO ENGAGE IN ACTIVITY THAT UNDERMINES OR THWARTS THE FAIR AWARD OF THE CONTRACT RELATED TO THIS RFP. THE NEW YORK CITY COMPTROLLER IS CHARGED WITH THE AUDIT OF CONTRACTS IN NEW YORK CITY. IF YOU BELIEVE THAT THERE HAS BEEN UNFAIRNESS, FAVORITISM OR IMPROPRIETY IN CONNECTION WITH THIS PROPOSAL PROCESS, PLEASE CONTACT THE COMPTROLLER, OFFICE OF CONTRACT ADMINISTRATION, ONE CENTRE STREET, ROOM 835, NEW YORK, NEW YORK 10007, TELEPHONE NUMBER (212) 669-3000. AUTHORIZED AGENCY CONTACTS: AGOSTINO CANGEMI, GENERAL COUNSEL (718) 403-8076 [email protected]DEBRA SAMUELSON, DEPUTY GENERAL COUNSEL (718) 403-8505 [email protected]Facsimile (718) 403-8130 11 METROTECH CENTER, 3 RD FLOOR BROOKLYN, New York, 11201
25
Embed
THE CITY OF NEW YORK DEPARTMENT OF INFORMATION TECHNOLOGY AND ...
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
THE CITY OF NEW YORK
DEPARTMENT OF INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS
REQUEST FOR PROPOSALS FOR
FRANCHISES AUTHORIZING CONSTRUCTION AND PROVISION OF LATERAL DUCTS AND RELATED FACILITIES TO HOUSE TELECOMMUNICATIONS
FIBER LINKS TRANSMITTING LOCAL HIGH-CAPACITY TELECOMMUNICATIONS SERVICES BETWEEN MAINLINE SYSTEMS AND
BUILDING ENTRANCES
IMPORTANT: IT IS UNLAWFUL TO ENGAGE IN ACTIVITY THAT UNDERMINES OR THWARTS THE FAIR AWARD OF THE CONTRACT RELATED TO THIS RFP. THE NEW YORK CITY COMPTROLLER IS CHARGED WITH THE AUDIT OF CONTRACTS IN NEW YORK CITY. IF YOU BELIEVE THAT THERE HAS BEEN UNFAIRNESS, FAVORITISM OR IMPROPRIETY IN CONNECTION WITH THIS PROPOSAL PROCESS, PLEASE CONTACT THE COMPTROLLER, OFFICE OF CONTRACT ADMINISTRATION, ONE CENTRE STREET, ROOM 835, NEW YORK, NEW YORK 10007, TELEPHONE NUMBER (212) 669-3000.
AUTHORIZED AGENCY CONTACTS: AGOSTINO CANGEMI, GENERAL COUNSEL (718) 403-8076 [email protected] DEBRA SAMUELSON, DEPUTY GENERAL COUNSEL (718) 403-8505 [email protected] Facsimile (718) 403-8130 11 METROTECH CENTER, 3RD FLOOR BROOKLYN, New York, 11201
2
RELEASE DATE: December 13, 2002
3
TABLE OF CONTENTS
SECTION 1.0 INTRODUCTION 1.1 BACKGROUND 1.2 RFP TIMETABLE 1.3 GENERAL INFORMATION 1.3.1 STATUS OF INFORMATION 1.3.2 APPLICANT INQUIRIES 1.3.3 COMMUNICATION WITH DoITT 1.3.4 ADDENDA 1.3.5 MODIFIED PROPOSALS; LATE PROPOSALS AND
MODIFICATIONS 1.3.6 COSTS INCURRED BY APPLICANTS 1.3.7 ORAL PRESENTATIONS AND INTERVIEWS 1.3.8 NEGOTIATIONS 1.3.9 APPLICANT ACCEPTANCE OF FRANCHISE PROVISIONS 1.3.10 FRANCHISE AWARD 1.3.11 RFP POSTPONEMENT OR CANCELLATION 1.3.12 CONFIDENTIAL OR PROPRIETARY INFORMATION 1.4 PROPOSAL EVALUATION PROCEDURES 1.4.1 EVALUATION COMMITTEE 1.4.2 PROPOSAL EVALUATION CRITERIA 1.4.3 PROPOSAL PACKAGE 1.4.4 PROPOSAL SUBMISSION REQUIREMENTS 2.0 SPECIAL INSTRUCTIONS 3.0 RESERVATION OF RIGHTS
4
TABLE OF EXHIBITS
EXHIBIT A: THE COUNCIL OF THE CITY OF NEW YORK RESOLUTION NO. 225-A EXHIBIT B: INVESTIGATION CLAUSE, MACBRIDE PRINCIPLES, AND
AFFIRMATION EXHIBIT C: PROPOSAL SUBMISSION FORM EXHIBIT D: E-MAIL AUTHORIZATION FORM
5
1.0 INTRODUCTION The City is seeking proposals for franchises authorizing the installation,
maintenance and operation of ducts (also sometimes known as conduits) that
would provide housing for fiber optic or similar telecommunications lines
connecting so-called “mainline” or “backbone” telecommunications systems,
running down main streets, with the individual buildings where customers for
telecommunications services are located.
Over the past ten years or so, the City of New York (“the City”) has granted more
than a dozen franchises permitting a wide variety of telecommunications
companies to use City streets to run fiber optic and other telecommunications
lines. The result of this effort is that in many areas of the City, especially central
business districts, there is a robust availability of fiber capacity from a number of
different telecommunications providers. Such robust availability of fiber capacity
is a key prerequisite to continuing and expanding the City’s status as the world’s
greatest center of commerce, culture and communications. The events of
September 11, 2001 have made it even more evident that a powerful and
capacious telecommunications infrastructure is central to the City’s continuing
vitality.
Although existing franchising policy is successfully enabling the construction of
state-of-the-art fiber optic telecommunications lines in the City, the City’s
Department of Information Technology and Telecommunications (“DoITT” or the
6
“Agency”) has become aware of an increasing need to facilitate the ability of
telecommunications providers to connect these lines to the buildings where their
customers are located, and to do so in a manner that minimizes the impact on
traffic, pedestrians and the neighborhoods where the relevant lines and buildings
are located.
Generally, fiber optic telecommunications systems in the City’s streets can be
divided into two sections1: (1) the “mainline”, “backbone” or “trunk” section, which
consists of the thickest cables with the highest number of fiber strands, usually
running down a neighborhood’s main streets (in Manhattan, for example, such
mainline or backbone fiber cable generally runs under avenues and two-way
streets); and (2) the “lateral” section, which generally consists of somewhat
narrower cables, branching off of the backbone system and linking the backbone
system down subsidiary streets to individual buildings. For many years, the City
has maintained a system in Manhattan and part of the Bronx in which
telecommunications ducts and conduits—the pipes that house the optical fiber
cable—are constructed and maintained by a central provider responsible for
providing common duct space for the cables of multiple telecommunications
companies. A company known as Empire City Subway is the primary provider of
common ducts in Manhattan and the Bronx, although Con Edison recently
agreed to be an additional provider of common telecommunications ducts in the
1 All references to fiber, optical fiber, etc., throughout this RFP are intended to refer to and include any other land-based medium, such as copper wire or coaxial cable, that can also be used for telecommunications transmission, and such references should be read to be thus inclusive.
7
City. Under this common duct approach, telecommunications companies share a
common duct system provided by Empire City or Con Ed, instead of building
individual duct systems. Such sharing both reduces costs for the
telecommunications companies involved and reduces the need for repetitive
street construction projects that damage street surfaces, interfere with traffic and
adversely affect neighborhood life. The Empire City common duct approach has
proven relatively effective with respect to backbone systems and has contributed
to the rapid expansion of backbone fiber capacity in the City. However, the
Empire City common duct approach has thus far not proven as effective with
respect to the lateral sections of telecommunications systems. Substantial
portions of the duct that houses lateral sections of new fiber systems are being
built separately and individually by each telecommunications provider – a method
that, compared with the common duct system, is both more expensive for each
provider and more burdensome on communities, streets and traffic. One result
of the limited use of common duct for lateral fiber has been that the powerful new
backbone fiber systems built in recent years are not being as fully utilized as they
might be if they could be more efficiently connected to the buildings where
telecommunications service customers are located.2 In addition, repeated
installations of non-common duct in City streets adds substantial street
maintenance costs for the City and shortens the effective life of street surfaces
2 The problem of efficiently connecting backbone fiber to building locations is an issue not just in the City but also in many other areas of the country, where it is sometimes referred to as the “last mile” issue, because it involves connecting cable that has run tens, hundreds or thousands of miles across the “last mile” to the customer. In New York City, the issue generally involves far less than a mile, indeed frequently involves less than 150 feet.
8
and infrastructure. It is the goal of this RFP to seek one or more entities to build,
administer and maintain common ducts for lateral fiber optic lines in the City, thus
facilitating the expansion of the City’s telecommunications infrastructure while
reducing the number of entities who need to perform duct construction in City
streets and thus mitigating the deleterious effects of duct construction on
neighborhoods, streets and traffic.
It is anticipated that the determination of the scope and location of the ducts to be
built under any franchise granted hereunder will be primarily, though not
necessarily exclusively, market-driven and, thus, will be in the franchisee’s
discretion. Thus the primarily goal of this RFP is to enable one or more qualified
franchisees to respond to or anticipate demand for common duct space where it
is arising or is likely to arise, and to charge users for such duct space at market
rates, in a manner that would permit the franchise operation to be economically
self-sustaining, that is, without any subsidy from the City. However, DoITT also
recognizes that certain public benefits may arise from the construction of
common duct space even in locations where short-term market considerations
may not immediately drive such construction (such public benefits might include
the creation of infrastructure that could encourage long-term economic
development, and the long term protection of streets from future repetitive
construction demands). Therefore, DoITT is encouraging proposers to offer
some level of binding commitment to build common ducts in at least some
locations, even without definitive market support for such construction, and
9
proposers should be specific about what portions of their construction proposal
would fall into this guaranteed construction category.
On a related note, DoITT also recognizes that, under ordinary conditions, it will
be in the economic interest of the franchisee or franchisees building and
managing common duct as contemplated herein to maximize the number of
potential tenant-occupants (presumably provided that they are responsible and
financially sound), thus maximizing revenue, and not to prohibit or effectively
prohibit any potential occupants from using the ducts. However, it is conceivable
that under some circumstances, a franchisee, particularly if such franchisee is
itself a telecommunications service provider (or is related to such a provider),
may have an incentive, external to the economics of the duct system operation
itself, to fail to make duct space available to others in a neutral manner. Because
such a failure would be inconsistent with DoITT’s purposes in issuing this RFP,
proposers should be aware that any eventual franchise contract or contracts
granted in connection with this RFP will include provisions assuring that if the
franchisee is or becomes a telecommunications provider (or is or becomes
related to such a provider), that the franchisee would be or become obligated to
meet certain obligations to offer space in common ducts on a neutral basis.
Nothing in this RFP or in any franchise contracts granted pursuant hereto is or
shall be intended or construed to limit the obligations of Empire City Subway
Company or Con Edison.
10
1.1 BACKGROUND Pursuant to Section 363 of the Charter of The City of New York, the
Commissioner of DoITT has made the initial determination of the need for
franchises in connection with the provision of local, high-capacity
telecommunications services.
Pursuant to Section 363 of the Charter of The City of New York, the Mayor
submitted to the Council of The City of New York (“the Council”) a proposed
authorizing resolution for such franchises.
On November 20, 2002, the Council, after making several modifications thereto,
adopted said authorizing resolution (Resolution No. 225-A, attached hereto as
“Exhibit A”, referred to hereinafter as the “Resolution”) and thereby authorized
DoITT to grant non-exclusive franchises for the installation of facilities and
equipment on, over and under the inalienable property of the City to be used in