Exhibit 10.147

* Confidential Portion has been omitted pursuant to a request for confidential treatment by the Company to, and the material has been separately filed with, the SEC. Each omitted Confidential Portion is marked by three Asterisks.

TWELFTH AMENDMENT TO CONTRACT FOR ALASKA ACCESS SERVICES

This TWELFTH AMENDMENT TO THE CONTRACT FOR ALASKA ACCESS SERVICES (“Twelfth Amendment”) is entered into and effective as of the 13th   day of December, 2007 (“Effective Date”), by and between GENERAL COMMUNICATION, INC. and its indirectly, wholly-owned subsidiary, GCI COMMUNICATION CORP., both Alaska corporations (together, “GCI”) with offices located at ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇ and MCI COMMUNICATIONS SERVICES, INC., d/b/a Verizon Business Services (successor-in-interest to MCI Network Services, Inc., which was formerly known as MCI WORLDCOM Network Services (“Verizon”), with offices located at ▇▇▇▇ ▇▇^▇▇ ▇▇▇▇▇▇, ▇.▇., ▇▇▇▇▇▇▇▇▇▇, ▇.▇. ▇▇▇▇▇ (GCI with Verizon, collectively, the “Parties,” and individually, a “Party”).

RECITALS

WHEREAS, GCI and Verizon entered into that certain Contract for Alaska Access Services dated January 1, 1993 (“Original Agreement”), as amended by (i) the First Amendment to Contract for Alaska Access Services dated as of ▇▇▇▇▇ ▇, ▇▇▇▇, (▇▇) the Second Amendment to the Contract for Alaska Access Services dated as of January 1, 1998, (iii) the Third Amendment to Contract for Alaska Access Services dated as of March 1, 1998, (iv) the Fourth Amendment to Contract for Alaska Access Services dated as of January 1, 1999,  (v) the Fifth Amendment to Contract for Alaska Access Services dated as of August 7, 2000, (vi) the Sixth Amendment to Contract for Alaska Access Services dated as of February 14, 2001, (vii) the Seventh Amendment to Contract for Alaska Access Services dated as of March 8, 2001, (viii) the Eighth Amendment to the Contract for Alaska Access Services dated as of July 1, 2003, (ix) the Ninth Amendment to the Contract for Alaska Access Services dated as of January 23, 2005,  (x) the Tenth Amendment to the Contract for Alaska Access Services dated as of May 1, 2006, and (xi) the Eleventh Amendment to the Contract for Alaska Access Services dated as of January 1, 2007  (collectively,  “Agreement”) which set forth the general terms and conditions under which GCI provides certain telecommunications services to Verizon; and

WHEREAS, the General Services Administration (“GSA” or “Customer”) issued Networx Universal and Enterprise Solicitations for Telecommunication Services (“the Project”); and

WHEREAS, the Parties have agreed to incorporate into this Agreement the terms and conditions of the Teaming Agreement dated as of July 14, 2006, as amended by Amendment No. 1 dated as of March 23, 2007, both between GCI Communication Corp. and Verizon Services Corp., (collectively, the “Teaming Agreement”), wherein the Parties provide complementary talents, experience and capabilities to respond to the solicitations for and to perform telecommunications services for the Project, as described below.

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AGREEMENT

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

The above recitals are incorporated into the Agreement.

I.              Section 4.A.(2) of the Agreement is hereby revised to read as follows:  “The Party shall have failed to perform its obligations under the Agreement, coupled with a failure to remedy nonperformance within thirty days after receipt of written notice thereof from the other Party.”

II. Section 4.C. of the Agreement, as previously amended, is hereby deleted in its entirety and replaced with the following:

“C. DISPUTE RESOLUTION.

Any dispute, controversy or claim (collectively a “Dispute”) arising out of or relating to this Agreement will ***. Should resolution not occur ***, the Dispute will ***. If the Dispute cannot be resolved in good faith ***, the Parties may exercise any and all available remedies at law or equity (including injunctive relief) or may request that the Dispute be settled by binding arbitration. In the event the Parties agree to binding arbitration, which agreement shall be at their sole and absolute discretion, the costs of arbitration, including fees and expenses of the arbitrator, shall be shared equally by the Parties and each Party shall bear the cost of preparing its case.”

III.           Section 5 MISCELLANEOUS of the Agreement shall be hereby re-numbered to be Section 15 MISCELLANEOUS.

IV.           As of the Effective Date of this Twelfth Amendment, new Sections 5, 6, 7, 8, 9, 10, 11, 12,  13 and 14 of the Agreement shall be added as follows:

“5.           TEAMING ACTIVITIES.

A.            With the assistance ***, and subject to any necessary management approvals, *** proposal to the Customer for the Project. *** in the proposal as the prime contractor for the Project. *** proposal as a proposed subcontractor *** with the Project as generally described in the Exhibit As, attached to this Agreement and incorporated herein by this reference, and for the price(s) and/or fee(s) asset forth in Exhibit F hereto. *** acknowledges *** pre-award OSS Testing, Product Testing and Certification and Acceptance Testing as required by the Customer. *** and at no additional cost to ***.

B.            *** with all reasonable assistance in the development and preparation of any proposal(s) that may be required, including any best and final offer(s). The *** content of any *** the Customer ***. *** will include *** in its proposal(s) *** furnished ***. In its sole discretion, *** the provisions of the proposal.

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C.            Both Parties will make available their respective management and technical personnel as may be appropriate during the conduct of any discussions and negotiations with the Customer concerning the award of a prime contract for the Project to ***.

D.            Each Party hereby authorizes the other Party to use any information, data or drawings provided hereunder consistent with Section 10, PROPRIETARY INFORMATION, solely for the express purpose of developing and presenting the Project proposal and obtaining a prime contract award to *** for the Project (the “Purpose”).

6.             ALLOCATION OF COSTS.

Each Party will be responsible for and bear the cost of its own efforts in the preparation and support of its portion of the proposal requirements and other responsibilities set forth in this Agreement.

7.             INDEPENDENT CONTRACTORS.

This Agreement is not intended to constitute, create, give effect or otherwise recognize a joint venture, partnership, principal-agent or formal business organization of any kind, and the rights and obligations of the Parties shall be only those expressly set forth herein. At all times Verizon and GCI shall remain independent contractors, each responsible for its own employees. Neither Party assumes responsibility to the other for costs, expenses, risks and liabilities arising out of the efforts of the other Party under this Agreement.

8.             TEAMING AGREEMENT.

A.            Nothing contained in this Agreement shall be deemed to restrict either Party from quoting, offering to sell or selling to others any items or services that it may regularly offer for sale or license, even though such items or services may be included in the Project proposal contemplated by this Agreement. Notwithstanding the nature of the Parties’ relationship under this Agreement, the Parties do not intend to prejudice the Customer in any way with respect to any action that it may take in procuring goods or services on the basis of competitive proposals or the awarding of contracts on a split or other type basis.

B.            The Parties will continue to follow procedures established by and known to the Parties for the ordering, provisioning and inventory of Services until such time that the Parties further amend the Agreement with regard thereto by adding Exhibits H and I to the Agreement.

9.             SUBCONTRACT.

In the event *** is awarded a prime contract for the Project as a result of the proposal contemplated by this Agreement, and this Agreement or the provisions hereof relating to the Project have not been previously terminated pursuant to the applicable provisions hereof, *** negotiations with *** intended to culminate in a further amendment hereto consistent with this Agreement and the Exhibits hereto, to the extent the same is required in the prime contract, and

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further subject to: (a) any necessary approvals by the Customer; (b) the inclusion of any additional necessary or appropriate “flow-down” clauses and other provisions from the prime contract between *** and Customer as *** deems necessary in its sole discretion to enable it to comply with its prime contract obligations and to provide *** with the required control over *** of the Project; and (c) the negotiation of other mutually acceptable terms and conditions. *** acknowledges that it has read and understands the Solicitation and all amendments thereto issued prior to the Effective Date hereof.

10.           Section 15 D, as renumbered herein, is hereby deleted in its entirety and replaced with the following:

15. D. PROPRIETARY INFORMATION.

If in the course of performing this Agreement, either Party discloses any proprietary or confidential information to the other Party, such disclosure shall be governed by the following provisions:

A.            For purposes of this Agreement, the term “Proprietary Information” means all information (i) related to the Agreement or the Project that the Parties may exchange under this Agreement or otherwise for the Purpose stated in Section 5 of the Agreement or (ii) that, although not related to the Agreement or such Purpose, is nevertheless disclosed by a Party (“Owner”) to the other Party (“Recipient”) as a result of the Parties’ discussions in that regard, and is identified to be proprietary and confidential to the Owner, an Affiliate of the Owner or to a third party. The term “Affiliate” means any person or entity directly or indirectly controlling, controlled by, or under common control with a Party. Proprietary Information disclosed in written or other tangible form (including on magnetic media) shall be marked with legends that identify the information as confidential or proprietary. Proprietary Information disclosed by oral, visual or other non-tangible means shall be reasonably identified as such by Owner at the time of disclosure. Notwithstanding the foregoing, and except as provided in subsection (d) below, the following categories of information shall be deemed to be Proprietary   Information in all cases, regardless of the form of disclosure or identification or lack of identification by a Party: proprietary network engineering designs; software; pricing and financial information; names of clients; and/or future product offerings.

B.            Proprietary Information shall be used by the Recipient only in the performance contemplated by this Agreement and shall not be disclosed to any other person, firm, corporation or partnership or used for any other purpose than the Purpose contemplated by this Agreement without the prior written consent of the Owner.

C.            To protect the Owner’s Proprietary Information from unauthorized use or disclosure, Recipient shall use the same degree of care that it uses to prevent unauthorized use or disclosure of its own proprietary or confidential information, data or drawings of like importance, but in no event shall the Recipient use less than a reasonable degree of care.

D.            The obligation to protect Proprietary Information as set forth in this Agreement, shall not apply to any of the following:

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(1)           Information that is known to the Recipient without restriction when received, or thereafter is developed independently by the Recipient; or

(2)           Information that was obtained by Recipient from a source other than the Owner through no breach of confidence by the Recipient; or

(3)           Information that was in the public domain when received, or thereafter enters the public domain through no fault of the Recipient; or

(4)           Information that was disclosed by the Owner to a third party without restriction.

E.             GCI  hereby grants its consent for Verizon to disclose GCI’s Proprietary Information to the Customer, provided that Verizon shall identify any GCI Proprietary Information disclosed to the Customer as proprietary and shall request that Customer’s use of any such GCI Proprietary Information be restricted to use in reviewing and evaluating Verizon’s Project proposal as contemplated by this Agreement.

F.             Each Party’s obligations hereunder concerning Proprietary Information received from the other Party shall ***, notwithstanding any earlier expiration or termination of this Agreement. Upon expiration or termination of this Agreement, each Party shall cease use of Proprietary Information received from the other Party, and shall destroy all such Proprietary Information, including copies thereof, then in its possession or control, promptly furnishing the Owner with written certification of such destruction. Alternatively, at the request of the Owner, the Recipient shall return all such Proprietary Information and copies to the Owner. The rights and obligations of the Parties under this Section 15 shall survive any such return or destruction of Proprietary Information.

G.            The Parties agree that, in the event of a breach or threatened breach of the terms of this Section 15, the Owner shall be entitled to seek an injunction or other equitable relief prohibiting any such breach, without the necessity of posting a bond. Any such relief shall be in addition to and not in lieu of any appropriate relief in the way of money damages. The Parties acknowledge that Proprietary Information is valuable and unique and that unauthorized use or disclosure in breach of this Section 15 could result in irreparable injury to the Owner.

H.            All Proprietary Information received hereunder (including information in computer software or held in electronic storage media) shall remain the property of the Owner. Nothing contained in this Agreement, nor any disclosure hereunder, shall be construed as a grant of any right or license, express or implied, under any patent, copyright or other intellectual property right of the Owner.

11.           LIABILITY.

A.            Each Party will be solely responsible for liability arising out of its own acts or omissions occurring during the performance of its work under this Agreement. The performing

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Party further agrees to indemnify, hold harmless and defend the other from all costs of any nature whatsoever arising out of any third party claim or action against the other Party resulting from the acts or omissions of the performing Party. The indemnified Party shall: (i) provide written notice of the claim or action to the indemnifying Party promptly after becoming aware of the same, (ii) relinquish control of the defense and/or settlement of such action or claim to the indemnifying Party, and (iii) at the indemnifying Party’s request, provide reasonable assistance and cooperation to the indemnifying Party, at the indemnifying Party’s sole expense. The indemnified Party’s failure to comply with any of the foregoing shall not modify any of indemnifying Party’s obligations under this section except to the extent that the indemnifying Party’s ability to fulfill any of such obligations is materially prejudiced by such failure. This provision shall not be construed to mean that the Parties are precluded from resolving a claim against each other.

B.            In the event of an alleged breach of this Agreement, or any claim whether in tort (including negligence and strict liability), contract, equity or otherwise, arising out of or in connection with this Agreement, or the acts or omissions of either Party, its agents, representatives or employees in the performance of this Agreement, the Parties agree that the sole remedy available shall be limited to the recovery of direct costs and applicable overhead reasonably expended in performance of the services related to the Project.

C.            In no event shall either Party be liable to the other Party for any special, indirect, incidental, punitive or consequential damages, including but not limited to lost profits or revenue, or lost business opportunities, even if advised of the possibility of such damages.

12.           INSURANCE.

GCI shall maintain for the Term of the Agreement the following insurance:

A.            Commercial General Liability Insurance, on an occurrence basis, including but not limited to, premises-operations, broad form property damage, products/completed operations, contractual liability, independent contractors, and personal injury, with limits of at least $*** combined single limit for each occurrence.

B.            Commercial Automobile Liability, with limits of at least $*** combined single limit for each occurrence.

C.            Excess Liability, in the umbrella form, with limits of at least $*** combined single limit for each occurrence.

D.            Workers’ Compensation Insurance as required by Applicable Law and Employer’s Liability Insurance with limits of not less than $***.

E.             All risk property insurance policy to cover GCI’s property, furnishings, & equipment.

F.             The above limits may be satisfied by a combination of underlying/primary and excess/umbrella insurance. All policies provided by GCI shall be ***. GCI shall waive its right

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of subrogation for all insurance claims. The Commercial General Liability and Commercial Auto Liability policies must name Verizon, its subsidiaries and affiliates as additional insureds. GCI’s insurance companies must be licensed to do business in the applicable state(s) and must meet or exceed an A.M. Best rating of A-X or its equivalent.

G.            All insurance must be in effect ***. For all insurance, GCI must deliver an industry-recognized certificate of insurance evidencing the amount and nature of the coverage, the expiration date of the policy and the waiver of subrogation and stating that the policy of insurance issued to GCI ***. Also, where applicable, such certificate of insurance shall evidence the name of Verizon as an additional insured. GCI shall submit such certificates of insurance annually to Verizon as evidence that it has maintained all required insurance. GCI is responsible for determining whether the above minimum insurance coverages are adequate to protect its interests. The above minimum coverages shall not constitute limitations upon GCI’s liability.

13.           TERMINATION OF TEAMING ACTIVITIES.

Only Sections 5, 6, 8 and 9 of this Agreement, and all rights and obligations of each Party thereunder, shall automatically terminate upon the happening of any of the following:

A.            *** the Project or the *** the Customer, or *** the Customer of ***  under the Project allocated to *** under Exhibit A hereto;

B.            The Customer’s *** for the Project to a contractor other than ***;

C.            The Parties’ execution *** to perform the work allocated *** in Exhibit A hereto;

D.            The Customer’s refusal *** for the portion of the Project *** in the Exhibit As hereto, despite *** reasonable efforts to secure such approvals;

E.             Upon notice from *** to *** if, as a result of judicial action or ruling, *** or the Customer is prohibited from utilizing *** to perform the work allocated ***  in Exhibit A hereto, or is required to utilize a different subcontractor to perform the work allocated to *** in the  Exhibit As hereto;

F.             Lapse of ***, unless such term is extended by mutual agreement;

G.            Mutual agreement of the Parties to terminate Sections 5, 6, 8 and 9 of this Agreement; or

H.            A material, uncured breach by either Party of any of the provisions contained herein, as described in Section 4 hereof.

14.           PUBLICITY.

Any news release (including communication of any sort with the press whether direct or

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indirect, written or oral), public announcement or advertisement to be released in connection with this Agreement and the subject matter hereunder shall have the written concurrence of both Parties prior to release. The provisions of this Section 14 shall survive the termination or expiration of this Agreement.”

V.            NOTICES.

Section 15.C. of the Agreement is hereby deleted in its entirety and replaced with the following:

“All notices required or permitted to be given hereunder shall be in writing and be deemed effective (a) upon personal delivery, (b) on the calendar day following the date of confirmed transmission of telex, telegram, or electronic mail, or (c) upon receipt if sent by registered, certified or express mail to the Parties addressed as follows:

Either Party may change the address or addressee set forth above at any time or times, by  written notice to the other Party in accordance with this provision.”

VI.          As of the Effective Date of this Twelfth Amendment, Section 15.F. shall be deleted and replaced in its entirety with the following:

“F. Binding Effect and Assignment. This Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective permitted successor and assigns. Neither

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Party may assign, delegate, or transfer any part of this Agreement without the other Party’s prior written consent, which shall not be unreasonably withheld, except that either Party may assign this Agreement in part or whole  to an Affiliate. An affiliate for this purpose in an entity controlling, controlled by or under common control with the assigning party. Any attempted assignment not conforming with this provision shall be void.”

VII.         New Attachments. All of the following are hereby incorporated into the Agreement:

Exhibit A – Scope of Work

Exhibit B – Performance and Maintenance

Exhibit C – Networx Prime Contract “Flow Down”, provisions for Subcontractor

Exhibit D – FAR Provisions

Exhibit E – Technical Specification

Exhibit F – Pricing

Exhibit G – ICD – Billing Feed

Exhibit H – ICD – Order and Inventory  (Reserved)

Exhibit I – ICD – Manual ASR  (Reserved)

VIII.       Effect of Amendment. All other terms and conditions of the Agreement not expressly modified by this Twelfth Amendment shall remain in full force and effect. The Parties hereby affirm and agree such terms remain binding.

IX.          Further Assurances. The Parties shall cooperate in good faith, and enter into such other instruments and take such other actions, as may be necessary or desirable, to fully implement the intent of this Twelfth Amendment.

X.           Severability If any provision of this Agreement or any Service Order is found to be invalid or unenforceable, it shall not affect the validity and enforceability of any other provision of the Agreement, and the invalid or unenforceable provision shall be curtailed or limited only to the extent necessary to permit compliance with the minimum legal requirements, in a manner as consistent as possible with the intentions of the Parties and the economic position contemplated in the Agreement.

XI.          Entire Agreement. This Twelfth Amendment, together with the Agreement, including exhibits hereto and other documents incorporated herein by reference, contains the complete agreement of the Parties with regard to the subject matter herein and supersedes and replaces all other prior contracts and representations concerning its subject matter. In the event of a conflict between the terms of this Twelfth Amendment and the Agreement, the terms of this Twelfth Amendment shall control. Any further amendments to the Agreement must be in writing and signed by authorized representatives of both Parties.

IN WITNESS WHEREOF, the Parties hereto each acting with proper authority have executed this Twelfth Amendment as of the Effective Date first above written.

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10

Exhibit A

SCOPE OF WORK

COMBINED SERVICES

(1 OF 14)

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STATEMENT OF WORK

GCI Combined Services (CS)

Networx Universal Contract Volume I, Section 4.1.6

1.0          Objective

Verizon has selected GCI to meet the requirements for Combined Services, limited to Alaska, (CS). GCI will comply with all requirements for C.2.6.1 as outlined on the following pages.

Combined Services (CS) is a collection of separate telecommunications services packaged into a single service offering from a contractor. Agencies may utilize a Combined Services package to provide a core telecommunications service that suits their fundamental business needs.

2.0          Background

GCI shall offer a technical solution which meets the requirements of GSA’s Networx Universal and Enterprise RFPs (heretofore referred to as Networx RFPs) Section C.2.6.1, Networx Combined Services, as well as provide pricing in the structure provided for in Section B.2.6.2 of the Networx RFPs, limited to Alaska. If GCI does not provide any of the services described in Section C.2.6.1, then it will be GCI’s responsibility to identify a teaming partner or solution to meet all of the requirements in Section C.2.6.1 as it relates to Networx Combined Services, as it pertains to Alaska coverage.

3.0          Project Scope

GCI is only providing the local and Alaska LD for this service.  VZB is providing the long distance portion of the service.

Technical Requirements

Section C.2.6.1.1.4 of Networx Universal RFP

GCI shall offer a technical solution which meets the requirements of GSA’s Networx Universal and Enterprise RFPs (heretofore referred to as Networx RFPs) Section C.2.6.1, Networx Combined Services, as well as provide pricing in the structure provided for in Section B.2.6.2 of the Networx RFPs, limited to Alaska. If GCI does not provide any of the services described in Section C.2.6.1, then it will be GCI’s responsibility to identify a teaming partner or solution to meet all of the requirements in Section C.2.6.1 as it relates to Networx Combined Services, as it pertains to Alaska coverage. This includes:

·                  Providing CS Service transport between the subscribing Networx Agency’s Service Delivery Point (SDP) and the GCI trunking interface point to Verizon’s POP in Seattle.

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·                  Installing and maintaining Service Enabling Device(s) that may be ordered for the subscribing Agency’s SDP.

·                  Responding to Verizon trouble tickets reported to Verizon’s Help Desk.

·                  Providing SLA and KPI performance data shown in RFP Sections J.13.3.4 and C.2.6.1.4.1 respectively.

GCI shall work with Verizon on how it will provide Management and Operations (MOPS) data to support Verizon’s ability to deliver a MOPS solution and MOPS deliverables under the Networx contract(s), as defined by the requirements on Section C.3 of the Networx RFPs. This will include developing a data interchange interface with Verizon to support the MOPS requirements. Data interchange between Verizon and GCI will be defined prior to contract award and must support the requirement for Networx vendors to provide an Operational Capabilities Demonstration prior to contract award.

Verizon will provide all network connectivity for these services unless otherwise specified.

Service Overview

Verizon has selected GCI to meet the requirements for Combined Services, limited to Alaska, (CS). GCI will comply with all requirements for C.2.6.1 as outlined on the following pages.

Description of Approach to Service Delivery

Volume I, Section 4.1.6.1.1 of Networx Universal Contract

Verizon’s Combined Services (CS) solution meets all the requirements outlined in the Networx RFP. Verizon’s CS solution is designed to provide local, regional toll, and domestic (CONUS and OCONUS) long distance service to customers as a single, bundled package. For Agencies within the local footprint, our CS solution alleviates the burden of having to provision and manage both local and long distance dedicated access facilities for traffic processing. Verizon’s CS solution integrates long distance with our facilities-based Verizon® Local Service product. This is a comprehensive, feature-rich suite that uses combined access arrangements ranging from Business Lines to digital offerings such as ISDN PRI and full service digital T1s. Our CS extends beyond traditional dial tone, as calls are transported end-to-end over our wholly owned network.

Proven Performance = Lowered Risk. Verizon has successfully provided CS to large municipalities and state governments. Just as Verizon successfully migrated users to the FTS2001 services using a transition strategy designed to maintain service continuity while minimizing the effect on the user community, Verizon will migrate current FTS2001 users to the Networx CS offering, as well as any new Agency locations not currently using Verizon’s services. Agencies already using Verizon’s Voice Services will typically experience a transition similar to the original FTS2001 cutover to the

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Verizon Network. The experience and capability gained in providing long distance services for FTS2001 customers, and CS for both municipality and state wide customers, gives Verizon a unique insight into—and an ability to meet or exceed—the needs of Networx customers. This level of expertise means that existing FTS2001 customers will continue to receive the quality voice service they rely on for both local and long distance service, while new Networx customers can procure CS quickly, easily, and with minimal risk, from a single source. Verizon’s network provides a virtually non-blocking, P.001 grade of service POP-to-POP and a P.01 grade of service end-to-end for switched access originations to switched PSTN terminations. The network backbone availability is typically 99.9974%, 24x7x365. Verizon routinely provides service levels greater than any competitor, and offers:

·                  A Seamless Network. Local-to-global-to-local communications that eliminates geographic barriers to conducting business

·                  Customer-Focused Administration. A single point-of-contact for all service-related questions, issues, and requests

·                  Extensive Product Integration. Extensive product integration simplifies and streamlines communications.

·                  Cost Savings. Verizon’s Combined Services strategy helps reduce Networx customers’ overall communications costs by merging local and long distance maintenance and administrative costs into a single, total telecommunications solution that includes design, maintenance, and network management.

·                  Comprehensive Services. Verizon Facilities Based Local Service provides all the features and functionality the Government has come to expect from a world-class provider of local and long distance services. Be it local circuits to connect to Agency PBX or hybrid systems, or ISDN-PRI trunks to facilitate delivery of videoconferencing and Internet service, Verizon Local provides the last and most critical mile of network connection:  local dial tone service. Verizon’s CS will provide facilities-based digital service to many areas of 39 states, including Washington, DC. The local service delivery method for each Agency site will depend on its location relative to the Verizon SONET Ring as determined by Verizon. Provisioning options include on-ring/lit building or off-ring/non-lit building configurations.

Verizon’s proposed CS solution is fully compliant with all requirements for all services provided, and is not intended to imply that we are imposing conditions on compliance with CS requirements and hereby confirm that we do not in any way limit full compliance with the CS requirements in Section C.2.6.1.1.2 of the RFP.

·                  Reliable Local Service. Verizon’s CS will carry calls that begin and end within an SDP’s local calling area. Verizon understands that no communications solution is complete without reliable local service—an

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essential part of our CS solution. With over a decade of Local Service expertise, Verizon offers all the features and functionality our customers have come to expect from a premier service provider.

Architecture. Our SONET ring network, used for facilities-based local service, offers self-healing redundancy—in effect, the network will create an alternate path around any disruptions. As a result, this architecture offers Networx users consistent, reliable service. Our CS solution is based upon our facilities-based Verizon Local Service product domestically, the GCI local service product in Alaska, and other appropriate providers throughout the remaining CONUS and OCONUS regions. Both are comprehensive, feature-rich suites of local and long distance capabilities using combined access arrangements ranging from Business Lines to digital offerings, such as ISDN PRI and full service digital T1s. Our CS solution extends beyond traditional dial tone, as calls are transported end-to-end over our wholly owned network within a local calling area. Verizon is a proven alternative to other providers. We offer the service reliability that comes with over a decade in the local service business. In addition to our stature as one of the nation’s largest Competitive Local Exchange Carriers (CLECs), we own and operate our own fiber optic networks and local service switching systems. Verizon Local Service includes the following three offerings engineered for a digital generation:

Local Integrated Services Digital Network Primary Rate Interface (ISDN-PRI). This product provides a high-speed, intelligent connection to the Verizon network. Local ISDN-PRI supports voice, data, and video. It also provides Internet and remote LAN access, as well as simultaneous voice and digital data calls over an industry-standard primary rate interface T1.

Local Digital Trunk Service. Our Local Digital Trunk Service provides analog trunks and digital trunks. Local digital trunks are communication circuits between our Local End Office (Class 5) and the subscribing Networx Agency’s PBX or key system. Verizon offers basic trunks and trunks with direct inward dialing (DID) functionality. Local digital trunks can carry On-Net long distance traffic.

Full-Service Digital T1s. Our full-service digital T1s offer the ability to send and receive voice and data traffic over a single dedicated line. With a full-service digital T1, Agencies can integrate dedicated long distance and data frame relay, and/or dedicated Internet. Verizon also has an impressive array of local features that define and enhance our business line offering, including Call Forward, Call Transfer or Three-Way Conference Calling, Call Forward Busy, Call Forward No Answer, Speed Dial, Call Waiting/Cancel Call Waiting, Caller ID with Name, Caller ID Blocking and voicemail. Verizon Facilities Based Local Service provides all the features and functionality the Government has come to expect from a world-class provider of local service. From local circuits to connect to Agency PBX or hybrid systems, to ISDN-PRI trunks to facilitate delivery of videoconferencing and Internet service, Verizon

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Local provides the last and most critical mile of network connection:  local dial tone service.

·                  Verizon was one of the first providers to offer a full service solution for all of our customers’ communications needs. As a full-service pioneer, we have a proven track record of meeting business customers’ needs.

·                  As a full-service communications provider, Verizon is well-positioned to provide the Government with the integrated communications solutions that today’s businesses demand.

·                  Verizon provides facilities-based local, long distance, and Internet services over state-of-the-art fiber optic facilities that we own and operate. This is indicative of our consistent initiative to be at the forefront of the communications industry. Many other competitors offering integrated access solutions must lease their network from other service providers.

·                  Verizon is well-positioned to provide true one-stop shopping for Agencies.

·                  Our SONET ring network, used for Facilities Based Local Service, offers “self healing” redundancy, which means that the network will create an alternate path around any disruptions. This architecture is today’s finest and will provide Networx users with consistent, reliable service.

Verizon’s CS will carry calls that begin and end within an SDP’s local calling area. Verizon understands that no communications solution is complete without reliable local service. Local service is an essential part of our total integration package, as well as a key first step to providing all of the price, service, and technological benefits offered through Verizon. With over a decade of Local Service expertise, Verizon offers all the features and functionality our customers have come to expect from a premier Local Service Provider. Our Local Service offering includes:

·                  Standard Local Service Components

·                  Business Lines with features (including Voice Mail)

·                  Local Trunks

·                  Full Service T1 Integrated Solution

·                  Local ISDN/PRI

Business Lines. Business Lines are often referred to as “plain old telephone service” (POTS) Lines. Business Lines offer basic analog communication circuits between the Verizon local end office and the subscribing Agency’s telephone, key system, fax or modem. Business Lines are a reliable solution for routine business telecommunications applications and enable subscribers to make and receive calls, transmit and receive faxes, and access the Internet Standard business line components, including:

·                  Touch Tone (DTMF) capability

·                  Hunting (Serial or Circular)

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·                  Signaling (Loop Start or Ground Start)

·                  CNAM (Caller Name) Display

·                  Classes of Service (Toll Restrictions)

·                  Calling Party Number Delivery (Outbound) with Caller ID Blocking Selective Or Caller ID Blocking Complete

·                  Call Forward Variable

·                  Call Transfer

·                  Three-way Conference Calling

·                  Call Forward Busy

·                  Call Forward No Answer

·                  Speed Dial

Local Trunks. Verizon offers a full range of advanced services, including state of the art Local Trunk Service. For Agencies with a PBX or hybrid system, our Local Trunk Service provides both digital and analog capabilities to meet their mission needs today and tomorrow. Local Trunks are basic communication circuits between the local Verizon end office and the subscribing Agency’s SDP equipment. Local Trunks are available via two service options:

·                  Basic Local Trunk. Available for digital or analog trunks – provides a single connection that can carry two-way traffic. Basic Digital Local Trunks can carry inbound, outbound, or two-way traffic.

·                  Direct Inward Dialing (DID) Trunks. Available for digital trunks only–provide a digital connection that carries inbound traffic only. This option is configured to out-pulse from two to seven digits to the Agency’s CPE, enabling flexibility for the Agency’s internal extension plan. The digits received enable the Agency’s CPE to route an incoming call directly to an individual station without the intervention of a live or automated attendant.

·                  Two-way Direct Inward Dialing (DID) Trunks. Available for digital trunks only – provides DID capability with the added function of enabling the placement of outbound calls on the same trunks.

Analog and Digital Trunks. Analog Trunks provide non-digital connectivity from the Verizon Local end office to the subscribing Agency’s PBX. Although digital systems are dominant in today’s PBX market, Verizon realizes there is still a very large embedded base of analog PBXs and Key systems. Digital trunks provide digital connectivity from the local end office to the subscribing Agency’s PBX. Digital Trunks are provided via a T1 (1.544 mbps) link. Digital Systems are dominant in today’s PBX market. If a subscribing Agency has a digital PBX system, it is important to remember that such phone systems will require a digital DTI card to terminate a digital trunk. Digital trunks can be provisioned as one-way in, one-way out, or two-way; a 12 Digital Trunk

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Minimum applies. Verizon’s offering is comprised of standard local trunk product components include:

·                  Signaling. Touch tone (DTMF) (default) or Dial Pulse signaling.

·                  Hunting. Automatically forwards incoming calls from busy to available trunks according to a pre-programmed sequence or ▇▇▇▇ group. Hunting Options are:

·                  Serial. Calls start with the number of the trunk dialed and hunts up to the end of the trunk or ▇▇▇▇ group. For a 10-line ▇▇▇▇ group, if the fifth line is dialed, the switch attempts to place the call on the fifth line. If that line is busy, it hunts through lines 6-10, stopping at line 10 and sending back a busy signal if no lines are available.

·                  Circular. Calls start with the number of the trunk dialed. It hunts up to the end of the trunk or ▇▇▇▇ group; then starts at the beginning of the trunk group, and hunts back to the line that was dialed. For a 10-line ▇▇▇▇ group, if the fifth line is dialed, the switch attempts to place the call on the fifth line. If that line is busy it hunts through lines 6-10, then hunts lines 1-4 and sends back a busy signal if no lines are available.

·                  DLH (Distributed Line Hunting). Calls are distributed evenly among a trunk group or ▇▇▇▇ group by number of calls. For example, the first call goes to the first member of the group, the second call to the second member, until each member has received a call, at which point the next call goes to the first member.

·                  MIDL / LIDL (Most Idle/Least Idle). Incoming calls are sent to the trunk that has been idle the longest (MIDL) or shortest (LIDL) amount of time.

·                  CNAM (Caller Name) Display. This term refers to Verizon’s responsibility to our Local Service Customers to take all reasonable measures within our means to ensure that the Called Party’s Local Service Provider can accurately retrieve and display the Calling Party’s Name (CNAM) information on the Called Party’s Caller ID Display Box. CNAM Display is only available if CPN (Calling Party Number) Delivery is enabled. When the calling party number is NOT delivered to the called party, the called party’s local service provider is unable to retrieve and display the calling party’s name. Retrieving and displaying the Calling Party Name is always the responsibility of the called party’s local service provider.

·                  Calling Party Number (CPN) Delivery (Outbound). This is Inherent - Sending of customer’s originating Telephone Number on outgoing calls. For Trunks, this number is the associated BTN or Billing Telephone Number. This feature enables for the display/capture of the calling party’s telephone number at the destination they are calling.

·                  Caller ID Blocking (Complete). This feature blocks the calling party telephone number from being transmitted on ALL calls and is optional via Special Assembly for Digital Trunks (CPN Delivery and Caller ID Blocking are Mutually exclusive).

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Full Service T-1 Integrated Solution. With Verizon Full Service T-1 Integrated Solution, your T-1 becomes the single interface for all of your telecommunications needs. A FST-1 Integrated Solution delivers 24 multi-use channels, which can be used for:

·                  Local – Digital trunks, Basic and/or DID

·                  Long Distance – Outbound / Inbound

·                  Data – (Frame Relay, Private Line, Internet, ATM)

·                  All of the above

Local ISDN PRI. Verizon Local Integrated Services Digital Network / Primary Rate Interface (ISDN-PRI) provides a high-speed, intelligent connection to the Verizon network. Local ISDN-PRI supports voice, data, video, and applications such as Internet access, remote LAN access, call centers, disaster recovery and file transfer. This service supports simultaneous voice and digital data calls over an industry standard primary rate interface T-1 (1.544 Mbps).

Table 3.1.1-1. Standard Features and Capabilities of ISDN PRI

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Figure 3.1.1-1 below illustrates Verizon’s CS architecture for business lines, including Agency telephones or key sets that are directly connected to a Verizon Local Class 5 switch. A single line is used to transport all telephone calls, including local, long distance, international long distance, private network, toll free, 900 calls, emergency calls (e.g., 911), and information calls (i.e., 411). The Verizon Class 5 switch routes calls as follows:

·                  All dialed numbers are screened by Verizon’s Vnet database in our Network Control System to separate Networx virtual private network numbers from PSTN numbers.

·                  Dialed numbers matching private network numbers are routed to Verizon dedicated facilities using Verizon’s “Forced On-Net” capability, which provides savings over the use of switched PSTN terminating facilities.

·                  Local calls are completed via Verizon’s Local facilities where possible (e.g., to other Verizon Combined Services subscribers) or to other LEC PSTN facilities.

·                  Long distance PSTN calls are routed over Verizon’s domestic network to appropriate PSTN facilities. This is identical to routing for Verizon’s Voice Services offering.

·                  International calls are directed at either Verizon’s international gateway switches for call completion or at Agency discretion, IDDD calls may be pre-subscribed to an alternate carrier of the Agency’s choice. As a CLEC, Verizon Local facilities include FG-D switched access facilities with most major inter-exchange carriers.

·                  Toll free calls result in the Verizon Class 5 switch performing an SMS database “lookup” to determine the carrier associated with the toll free number. The call is then routed to that carrier over existing FG-D switched access facilities. If Verizon is the designated carrier, the call is directed to Verizon’s Long Distance network and routed appropriately. This processing is identical to the Networx Toll Free Services offering.

·                  If authorized by the Agency, 900 calls are processed, but the Agency has the discretion to block outbound 900 calls.

·                  The Verizon Local switch routes 911 emergency calls to the appropriate E911 center for the area, where the caller’s ANI is matched to a database showing the physical location of the calling station to facilitate dispatch of responders. Non-emergency calls are directed per local area arrangements.

·                  Directory assistance and informational calls are answered by Verizon Local operators and provided with the appropriate treatment.

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Figure 3.1.1-1. Verizon Combined Services Architecture for Business Lines

Figure 3.1.1-2 below illustrates the Verizon CS architecture using analog or digital trunks or ISDN PRI trunks from subscribing Agency PBXs. Agency PBXs are directly connected to a Verizon Local Class 5 switch. A single trunk group is used to transport all telephone calls including local, long distance, international long distance, private network, toll free, 900 calls, emergency calls (i.e., 911), and information calls (i.e., 411). The Verizon Class 5 switch call processing is identical to the steps described above.

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Figure 3.1.1-2. Verizon Combined Services Architecture for PBX Trunks

Technical Capabilities

Volume I, Section 4.1.6.3.1.1 of Networx Universal Contract

GCI will comply with all technical requirements for C.2.6.1.1.4 as follows.

1             The Verizon CS core package offers unlimited usage of a bundled solution designed to assist subscribing Agencies with controlling calling patterns, tracking expenses, establishing a local presence, and reaching critical departments faster, by integrating local, regional toll, and domestic (CONUS and OCONUS) long distance into a single combined service package.

2             The Verizon CS core pacakge offers unlimited usage for Call Forwarding, Call Transfer, Call Waiting, Caller ID, Caller ID Block, Remote Access to Call Forwarding, Speed Dial, Three-Way Calling, and Voice Mail. The package supports the following capabilities:

·      Directory Assistance

·      Operator Services

·      911 Support

·      Accounting Codes

·      Invoice Options

·      Access Options

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·      Calling Range Privileges

·      Private Dialing Plans

·      Toll Free Remote Access

·      Optional Features

Directory Assistance. Verizon provides Directory Assistance at 1-NPA-555-1212 (NPA is the Numbering Plan Area or area code). Callers are routed directly to Verizon Operators, or in some cases to the terminating local Regional ▇▇▇▇ Operating Company’s live operators.

Operator Services. Verizon operators are always available to help customers with general information or calling problems, either directly or by connecting the customer to Verizon Customer Service. Assistance can range from dialing instructions to providing the time of day. Operators can also offer personal service by helping Government employees complete different types of calls, ranging from third party billed to person-to-person collect. We offer operator assistance in a diverse range of languages ranging from Arabic to Spanish.

911 Support. In almost all instances, Verizon provides Enhanced (11 (E-911) service as the standard 911 emergency service offering. E- 911 is an advanced form of 911 service that does provide ALI (Automatic Location Information) and ANI (Automatic Number Identification Information) to the 911 operator. With
E-911, the telephone number of the caller is transmitted to the PSAP where it is cross-referenced with an address database to determine the caller’s location. The information is displayed on a video monitor for the dispatcher to direct public safety personnel responding to the emergency. This enables them to find callers who cannot orally provide their precise location.

Accounting Codes. Accounting Codes make cost management simple and encourage employees to make fewer and shorter non-business calls because calls can be tracked on a management report by individual, department, and project. This helps reduce costs and improve employee productivity. Users are prompted for a code before the call can be completed. Accounting Codes (1-11 digits) can be used from specified Dedicated Access line groups, Dial “1” ANIs, or Toll Free Remote Access numbers. While the code itself is not verified, the number of digits entered must match the pre-selected number.

Invoice Options. Verizon Long Distance offers Agencies a choice of customized invoice options:  Centralized billing (billed to GSA), or direct billing (billed directly to Agencies). For both types of billing, Verizon can provide consolidated or location-level billing.

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Consolidated billing provides centralized invoicing for all locations and location-level billing provides separate invoicing for multiple locations.

Access Options. As part of our On-Net voice offering, Verizon’s Long Distance offers a choice of two access/egress types:

·      Switched Access. Originates and/or terminates on independent Local Exchange Carrier (other than Verizon) owned and operated facilities. This is also referred to in the FTS2001 contract as Virtual On-Net or VON.

·      Dedicated Access. Originates and/or terminates on dedicated access facilities provisioned to the Government organization’s site by Verizon or by the Local Exchange Carrier on Verizon’s behalf. This also includes government-provided access.

Calling Range Privileges. Provide control over long distance costs and deter employee call misuse by restricting calling to specific geographic areas. This “tailored” approach reduces or eliminates non-work related calls that can reduce overall telecommunications costs while increasing productivity. There are three types of Calling Range Privileges available:

·      Universal Calling Range Privileges. Available in five ranges, and can be assigned to locations with switched access, dedicated access, and the network Verizon Calling Card. By offering up to 256 combinations of Range Privileges, Verizon exceeds the Government’s requirements for a minimum of 128 combinations.

·      Customized Calling Range Privileges. Offers an even greater level of control. Ranges for each Dedicated Access Line (DAL) group, ANI, Verified Accounting/ID Code, or Calling Card can be defined, as well as ranges based on states, NPA, NPA/NXX, and country codes. Up to 256 custom ranges can be defined and assigned as needed.

·      10/15 Digit Restrictions. Helps control non-work-related calls by enabling Government Agencies to block calls to specific 10/15-digit numbers, or ranges of 10/15-digit numbers, such as:  Single Number:  ▇▇▇-▇▇▇-▇▇▇▇ or NPA-NNXs:  212-555-0000 through 9999. This restriction is not location-specific and callers from outbound locations will be unable to reach blocked numbers, regardless of Calling Range Privileges. This restriction is also capable of blocking a particular international direct-dialed number.

Private Dialing Plans. Verizon offers flexible private dialing plans to suit individual customer needs. This includes:

·      10-Digit Private Dialing Plans. If an Agency does not want to change phone directories or re-train employees on a new dialing pattern, or if it no longer requires vanity numbers, 10-digit private dialing plans are the right choice. This option can preserve normal

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dialing patterns, and it emulates all of the organization’s direct dial phone numbers by emulating the (NANP) North America Numbering Plan.

·      Variable-Length Private Dialing Plans. Variable-Length Private Dialing Plans are currently available through DAL (Dedicated Access Line) access and Toll Free Remote Access only, and enable Agencies to define dial plans of variable lengths. Dialing plans of between 1-15 digits are available to provide greater flexibility in defining dial plans that meet specific Agency needs. For example, this feature enables Agencies to define dial plan formats that line up with a particular country (e.g., an 8-digit private dial plan for Japan locations, a 15-digit plan for Germany, and a 10-digit plan for the U.S).

Toll Free Remote Access. Reduces the potential for fraud or abuse by limiting callers to placing private dialing plan calls only. It also eliminates the need for employees to carry change for pay phones or to place collect calls. Toll Free Remote Access enables users to dial Private Dialing Plan numbers from anywhere in the U.S., Canada, Puerto Rico, and the U.S. Virgin Islands. Access numbers are specific to each organization and can be used with Verified Accounting/ID Codes or Accounting Codes for easy charge-back and tracking. Toll Free Remote Access is especially useful for employees such as field technicians, remote employees and telecommuters, and cellular phone users, who travel and need to call the office.

Optional Features. Optional features are available for customers that need specific solutions for their unique communication needs, including:

·      Automatic Number Identification (ANI). Verizon will include ANI digits in the signaling message for all outbound calls. For subscriber lines, this corresponds with the station DDD number. This feature enables for the display/capture of the calling party’s telephone number at the destination they are calling. For trunks, the ANI transported is typically the associated Billing Telephone Number. If out-of-band signaling is used (e.g. ISDN or SS7), the Calling Line ID will also be included in the signaling message if provided by the subscribing Agency’s premise equipment (typically a PBX switch).

·      Instant Virtual Ringdown. Provides nearly immediate ring on the distant end of a call without dialing. When the caller goes “off-hook” (the handset is off-hook, the keyset has seized the line, or, from behind the PBX, the appropriate digits have been dialed to seize the line), the network dials a pre-stored number and the call is routed to its correct location. This service tracks usage based on pricing for the long haul instead of a fixed, monthly expense. It also

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offers the flexibility of a virtual network-based transport instead of the single point of failure of traditional foreign exchange circuits.

·      Remote Exchange/Virtual FX. Enables Agency employees to establish a local phone number and access their agency or department outside of their office location. Combines the capability of a fixed-cost private line with virtual network usage-sensitive rates without the need to locate in a distant area or use special equipment. Includes a local circuit in the distant city where Long Distance calls originate and at the terminating city where the Agency is located. Customers can select dedicated or switched terminations.

·      Multiple Network IDs. Enables Networx customers to establish up to 98 independent Private Dialing Plan sub-networks under the umbrella of one corporate ID. With Multiple Network IDs, Agencies can have their own Private Dialing Plan, yet share the benefit of combining all traffic volumes into a total Long Distance invoice.

·      Point of Origin Routing. Enables Agencies to override the DAL specified in the dialing plan based on the originating switch and the intended terminating switch. For example, if a customer has two established Human Resources (HR) departments and then opened a third, Point of Origin Routing could be used to route certain calls typically intended for one of the two centers to the third HR center. This would give the third center a chance to become established. The Point of Origin Routing settings could be modified once the new HR department became stabilized.

·      Virtual Network Connection (VNC). Enables calls from Verizon’s network in the U.S. to terminate on VPNs in foreign countries. VNC provides a powerful “bridge” between the overseas carrier and Verizon On-Net Voice Services that results in competitive rates relative to International Direct Distance Dialing (IDDD) and the overseas telecommunications company’s VPN. Although interconnections like VNC do not have inherent features in and of themselves, calls going abroad can benefit from features offered by the foreign carrier. Inbound calls can benefit from Verizon features such as Network Call Redirect.

·      Customized Message Announcements (CMAs). There are two types of CMA features:

·      Intercept CMA. Intercept CMA will enable Networx customers to record a 30-second customized message. The message is stored in Verizon’s network and delivered when specific numbers are dialed during intercept conditions (e.g., “The ID Code you have dialed is invalid.”).

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·      Route to CMA. Route to CMA provides up to three minutes of recorded message, which is stored in our network and accessed via a private dialing plan number. These messages can play agency announcements such as news lines or changed number notifications (e.g., “Due to last night’s snow storm, our office is closed today” or “The number you have dialed has been changed; the new number is... “).

·      Verified Accounting/ID Codes. Enables customers to define calling areas at the level of the individual user. Verified Accounting/ID Codes offer the same management reporting benefits as Accounting Codes, but are verified in our intelligent network database to determine whether the caller has authorization to place the call. Like Accounting Codes, employees enter Verified Accounting/ID Codes digits after they dial the phone number.

·      Network Call Redirect. Routes calls to other locations to ensure call completion, regardless of whether there is an outage, overflow/busy condition, or when employees are not present to respond to the calls. Customers can configure Network Call Redirect to route calls to a pre-defined alternate location, such as network announcements and other domestic or international Agency locations. Agencies will have choices for how to route calls based on trunk group, type of service (both inbound and outbound), or individual toll-free/On-Net number. Network Call Redirect works with both Verizon and LEC access facilities and can overflow to a domestic or international location.

3             Verizon’s CS service will support the requested optional non-domestic calling package. However, Verizon respectfully declines to offer optional wireless, toll free and Internet. Verizon will support wireless, toll free, and Internet services within their respective service offerings.

4             The Verizon CS package offers government organizations a choice of customized invoice options:  Centralized Billing (billed to GSA), or Direct Billing (billed directly to agencies). For both types of billing, Verizon can provide Consolidated or Location Level Billing. Consolidated Billing provides centralized invoicing for all locations and Local Level Billing provides separate invoicing for multiple locations.

5             Verizon’s CS offering complies with all applicable local and FCC regulatory requirements, including Local Number Portability (LNP) and emergency services (911 or E911) requirements to identify the location of an originating station and route them to the appropriate Public Safety Answering Point (PSAP).

6             The Verizon CS package includes non-domestic calling as a required service feature for government users, with an option for subscribing Agencies to place complete or selective IDDD blocking restrictions on

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usage by ANI, trunk group or authorization code. Verizon will support Agency selection of an alternate provider of non-domestic calling services if directed. Verizon will use pre-subscription capabilities to segregate non-domestic calls from CS flat rated local, regional toll and long distance calls. The non-domestic calls will be transported to the alternate provider via PSTN or direct trunking arrangements as directed by the Agency.

Other Contract Requirements

Volume FLAG Section FLAG of Networx Universal Contract

In preparation of the proposal response, GCI shall describe how it will support Verizon in responding to the Price Management Mechanism as defined in Section H.7 of the Networx Universal RFPs.

Interfaces

Section C.2.2.1.3 of Networx Universal RFP

GCI shall describe how it will provide all of the interfaces identified in Section C.2.2.1.3.1 (Voice Service) of the Networx RFPs that were bid by Verizon (note:  support for the optional OC-1 interface was not proposed and the E1 and E3 interfaces are not applicable to GCI).

Voice Service Interfaces

The contractor shall support the User-to-Network Interfaces (UNIs) at the SDP for each individual service offered under CS as described in this section. The contractor shall refer to Section C.2.2.1 Voice Services, for the interface requirements associated with the core CS service package. Refer to the following sections for the appropriate network interface requirements for CS optional services:

1.            C.2.2.3 Toll-Free Service (TFS)

2.            C.2.4.1 Internet Protocol Services (IPS)

3.            C.2.14.1 Cellular / Personal Communications Services (CPCS):

Table 6.1-1. Voice Service Interfaces

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Features

Section 2.6.1.2 of Networx Universal RFP

GCI shall describe how it will provide all of the features identified in section C.2.6.1.2.1 of the Networx RFPs (note:  support for the optional calling card, Internet, toll free service, and wireless service features were not proposed).

CS Features

Volume I, Section 4.1.6.3.1.2 of Networx Universal Contract

GCI will comply with all feature requirements for C.2.6.1.2.1 as follows.

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1             The Verizon core CS package includes a Call Forwarding feature that enables station users to choose to reroute incoming calls to another specified telephone number as follows:

1a           Call Forwarding enables the user to forward calls on a busy, no answer, or all calls basis.

1b           Call Forwarding enables the participating Agency to have the option to limit call forwarding to local and/or long distance numbers.

1c            Call Forwarding enables outgoing calling when call forwarding is activated.

1d           Call Forwarding enables the participating Station user to have the option of activating or canceling the Calling Forwarding feature.

1e           Management of the Verizon Call Forwarding feature is flexible, and can be administered on a station by station basis, as determined by customer needs.

2             The Verizon core CS package includes a Call Transfer feature that:

·      Enables a station user to transfer any call in progress to another telephone number unassisted.

·      Management of the Verizon Call Transfer feature is flexible, and can be administered on a station by station basis as determined by customer needs.

3              The Verizon core CS package includes a Call Waiting feature that:

·      Enables a call to a busy station line to be held waiting while a tone signal is directed towards the busy station user. (Only the called station user will hear this tone).

·      Enables the subscriber to disable the service temporarily, on a per call basis.

The Management of the Verizon Call Waiting feature is flexible, and can be administered on a station by station basis.

4             The Verizon core CS package includes a Caller ID feature that provides the capability to transmit the Automatic Number Identification (ANI) full ten digit number or non-domestic equivalent, when available, to the terminating station.

5             The Verizon core CS package includes a Caller ID Block feature for outgoing calls that provides the participating Agency with the option to activate or deactivate the Caller ID transmission from an originating station on a permanent or per call basis.

6             The Verizon core CS package includes a Remote Access to Call Forwarding feature that:

·      Provides participating subscribers with the option to remotely activate or deactivate the Call Forwarding feature.

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·      Offers flexible Management of the Verizon Remote Access to Call Forwarding feature, and administration on a station by station basis.

7             The Verizon core CS package includes a Speed Dial feature offering that enables abbreviated single digit dialing capability on a per station basis.

7a           Speed Dial enables a station user to reach any of a pre-selected group of stations by dialing single-digit codes.

7b           Speed Dial makes available a minimum of eight programmable speed dial codes.

7c           Speed Dial can be administered on a station by station basis.

8             The Verizon core CS package includes a Three-Way Calling feature that enables a station user to establish a multiparty conference connection of up to a minimum of three conferees including themselves, without attendant assistance. Management of this feature is flexible, and can be administered on a station-by-station basis.

9             The Verizon core CS package includes a Voice Mail feature that includes 24/7 voice messaging transmission, reception, and storage except for periodic scheduled maintenance.

9a           Voice Mail provides at least thirty minutes of storage time (or 15 messages).

9b           Voice Mail provides the ability to remotely access voice mail services.

9c           Voice Mail provides secure access to voice mail via a password or PIN.

9d           Voice Mail provides automatic notification when a message is received. Options include:  (a) message waiting indication or (b) an outcall to a pager/cell phone.

9e           Voice Mail provides a minimum message length of two minutes.

9f            Voice Mail provides the capability to record custom voice mail greetings.

Our Voice Mail offering provides the capability to be administered on a station-by-station basis.

10           Not Proposed.

11           Not Proposed.

12           Verizon’s Combined Service offering will support the option for subscribing Agencies to dial non-domestic long distance locations via International Direct Distance Dialing (IDDD). The dialing sequence would be:  dial “01”+Country Code+City Code+Telephone Number. The calls will be placed using the same lines or trunks as local, regional toll, and domestic long distance calls. The Agency will have

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the ability to apply the authorization code features described in the Voice Services section. This includes the ability to establish up to 256 Class-of-Service (COS) restriction groupings which Verizon refers to as “range privileges”. The subscribing Agency will have the capability to enable or block calling to specific country codes by originating station ANI, trunk group or authorization code. The COS restrictions may be established at the time of initial order or later using the Verizon Customer Center portal to access the Outbound Network Manager tool. Alternately, COS changes may be made via the order entry change process.

The Verizon Global Network is one of the world’s largest international value-added networks. In addition to subscribing FTS2001 Agencies, it serves more than 3,000 domestic and international corporations and provides them with a cost-effective, flexible, and reliable means of communicating with global business operations. Verizon provides superior international switched voice service from the United States to more than 240 countries.

Verizon’s international call routing emphasizes the use of fiber optic cable transmission facilities for their quality and low delay characteristics. A mix of technologies is used to avoid loss of service in cases of failure. By establishing a series of parallel domestic and international digital paths, Verizon’s Global Network provides unprecedented technological diversity and route redundancy.

13           Not Proposed.

14           Not Proposed.

Service Level Agreements

Volume II, Appendix B.3, Attachment 1 of Networx Universal Contract

GCI shall describe how it will meet its budget portion of the Performance Metrics as defined by Section C.2.6.1.4.1 of the Networx RFPs for the Networx Combined Services (note:  budget allocations are to be determined).

Combined Services SLA

·      Availability. Availability is captured for each NEID. Availability is calculated as follows.

Availability metrics are calculated for the Agency Bureau level by summing up Tex and Tou for all the NEID under the Agency Bureau for a calendar month and reported as a percentage.

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Availability metrics are calculated for the Agency level by summing up Tex and Tou for all the NEID under the Agency for a calendar month and reported as a percentage.

·      Call Blockage. Call Blockage is calculated using the information switches on the following.

·      Total attempts

·      Total calls blocked

Call blockage is calculated as Total calls blocked / total attempts.

Call Blockage metrics for Agency bureau level is calculated by aggregating the values of total calls blocked and total attempts for a particular Agency Bureau and applying the same calculation.

Call Blockage metrics for Agency level is calculated by aggregating the values of total calls blocked and total attempts for a particular Agency and applying the same calculation.

Performance Metrics

Section C.2.6.1.4 of Networx Universal RFP

Combined Services Performance Metrics

GCI will comply with all performance metric requirements for CS.

The performance levels and Acceptable Quality Level (AQL) of Key Performance Indicators (KPIs) for the local voice service component of the core Combined Services package shall be measured and monitored as defined in Section C.2.6.1.4.1.

Table 8.2.1-1. Combined Services Performance Metrics

The optional services presented in Section C.2.6.1.2.1 shall comply with the performance metrics for each individual service offering as described in this

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section.  The contractor shall refer to the appropriate section for the performance metrics associated with each optional service:

1.     C.2.2.3 Toll-Free Service (TFS)

2.     C.2.4.1 Internet Protocol Service (IPS),

3.     C.2.14.1 Cellular / Personal Communications Service (CPCS)

Notes:

(1)   Availability is measured end-to-end and calculated as a percentage of the total reporting interval time that the CS is operationally available to the Agency.  Availability is computed by the standard formula:

(2)   Grade of Service (Call Blockage) is the proportion of calls that cannot be completed during the busy hour because of limits in the call handling capacity of one or more network elements.  For example, 0.01 indicates that 1% of the calls are not being completed successfully (e.g. 1 out of 100 calls).

(3)   See Section C.3.3.1.2.4 for the definitions and measurement guidelines.

Service Quality and Performance Metrics

Volume I, Section 4.1.6.2.1 of Networx Universal Contract

Verizon complies with all performance metric requirements for this service. Verizon Combined Services network provides a P.01 grade of service and network availability of 99.9974%, around the clock. Verizon maintains these standards through strict adherence to internal operations standards, frequent testing, and a highly fault-tolerant hierarchical switched network design.

Monitoring and Measuring KPIs and AQLs

Volume I, Section 4.1.1.2.2 of Networx Universal Contract

Verizon exceeds industry standards and guarantees higher performance specifications than those published by all other carriers. Verizon’s P.01 grade of service means that subscribing Agency callers will experience less than one-percent call blockage during the busiest traffic hour primarily through the design of the access facilities. Verizon’s service has historically exceeded this objective. Verizon’s traffic engineering groups monitor blockage at Regional and National Network Management Centers (NMC); blockage is based on the busiest hour of the busiest day of each month with no averaging. Verizon records statistics from a network analysis system are based on call detail records and on-line switch statistics. If abnormally high traffic causes blockage rates greater than one percent, engineers can re-allocate routing over less congested network paths. Network traffic is

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restored and re-routed via a mix of technologies within seconds of blockage detection.

GCI shall meet all required metrics through monitoring and measuring systems as follows:

·      Availability for POP-to-POP. Verizon will use Digital Cross-Connect Systems to monitor and measure the required availability KPIs. This performance data is continuously reported to Verizon’s Network Management System. Business rules are built into the system that recognize major alarms or when service degrades below the allowable performance limits (e.g., bit error rates). Alarms generated are sent to NMC surveillance personnel. Timestamps for the alarms or service degradation are recorded along with the restoration time points. The difference between these timestamps will be considered out-of-service time and will be used to calculate the service availability. This will be recorded and made available for reporting to the applicable Government Agency.

·      Availability for SDP-to-SDP. Verizon will use premise-based equipment to monitor and measure both routine and critical service levels. Like the equipment at Verizon’s POPs, the performance data is continuously reported to Verizon’s NMC. When a loss of continuity occurs, the equipment will utilize backup arrangements, such as switched dial backup or DSL arrangements to restore alarm and performance reporting to Verizon’s NMC.

·      Time to Restore. Verizon will create “rules” in the network management host such that a trouble ticket is automatically opened when an out-of-service condition is recognized. Verizon’s Operations personnel will then troubleshoot and repair the failure and close the trouble ticket. The time stamps between the start of the out-of-service condition and the time it is returned to service will be used to calculate the “time to restore” KPI. This will be recorded and made available for reporting to the Agency.

·      Grade-of-Service (Call Blockage). Verizon will monitor and measure via switch call records, which record whether a call was completed, and if not, identify why not. Copies of the call records will be sent to Verizon’s Customer Center Traffic Reporting 2.0 platform and counted to show calls attempted, calls completed, and calls incomplete for cause codes, including network congestion, termination busies, or class-of-service restrictions. The difference between calls attempted vs. calls completed will be used to calculate the resulting grade-of-service (GOS) performance. The cause code for incomplete calls will differentiate between POP-to-POP GOS (affected by network incompletions) vs. SDP-to-SDP GOS (affected by termination incompletions). This will be recorded and made available for reporting to the Agency. The P.01 grade of service means that Networx customers will experience less than one-percent call blockage during the Government’s busiest hour.

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Training

Volume II, Section 3.11 of Networx Universal Contract

GCI shall offer sales training to the Verizon Government Markets sales organization to facilitate the selling of GCI CS Service FLAG both under the Networx contract umbrella.

GCI shall offer training materials to Verizon and its customers in order to support Verizon’s ability to deliver training to Networx customers as defined by Section C.3.7 of the Networx RFPs.

9.1          Training Content

GCI will provide content for CS training in accordance with the requirements of RFP Section C.3.7.2.

Training Development

Team Verizon’s solution for training development meets or exceeds all requirements found in RFP Section C.3.7.2.1.

Training Availability

Team Verizon’s solution for training availability meets or exceeds all requirements found in RFP C.3.7.2.2.

Training Maintenance

Team Verizon’s solution for training maintenance meets or exceeds all requirements found in RFP C.3.7.2.6.

Within 30 business days following any changes to Team Verizon’s Networx program that would result in any changes or modifications to the training program, all affected training material will be updated and made available to the Government. These modifications will be provided at no cost.

Partner Meetings/Sales Opportunities

FLAG DOES NOT MAP TO NETWORX PROPOSAL/CONTRACT.

GCI shall support meetings with Verizon Networx Partners.

GCI shall assign sales representatives to support the FTS2001 and Networx opportunities. GCI shall support Sales Opportunity Reviews to ensure collaborative planning.

4.0          Project Term

This agreement will run concurrent with Verizon’s Networx Universal and Enterprise contracts with the GSA.  Time period will be upon issuance of a Purchase Order thru 2011.

5.0          Deliverables

See Project Scope.

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6.0          Contact Information

VerizonBusiness

Name

Title

Address

City, State  Zip

Phone number

Fax number

Email address

Supplier Name - GCI

Name - ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇

Title - Senior Account Manager

Address

City, State  Zip

Phone number - ▇▇▇ ▇▇▇ ▇▇▇▇

Fax number - ▇▇▇ ▇▇▇ ▇▇▇▇

Email address - ▇▇▇▇▇▇▇▇▇▇▇▇@▇▇▇.▇▇▇

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7.0          Project Staffing

Not applicable.

8.0          Work Performance

·              Security – N/A

·              Hours & Overtime – Pre-approval of time/materials above what is identified in the Cost & Schedule section is required when they impact project costs

·              Travel & Expense Guidelines – N/A

9.0          Assumptions/Risks/Dependencies

Refer to Exhibit B prime contract “flow down provisions”

10.0        Verizon Responsibilities

See Project Scope

11.0        Cost and Schedule (TBD)

The value of this SOW is estimated to be approximately $X,XXX,XXX.00 for the term of the SOW.

Year 1 (2007) = $

Year 2 (2008) = $

Year 3 (2009) = $

Year 4 (2010) = $

Pricing Structure

Section B.2.6.1 of Networx Universal RFP

GCI shall provide competitive pricing to Verizon. GCI shall comply with the Pricing Structure outlined in Section B.2.6.2 of the Networx RFPs.

Combined Services (CS)

The technical requirements for Combined Services (CS) are specified in Section C.2.6.1.

CS Pricing Structure

The price structure for CS shall comprise the following elements:

a.                                       Non-Recurring Charge per line

b.                                      Monthly Recurring charge per line

Prices for any associated SEDs shall be listed in Section B.4.

Core and Optional Packages

The CS offering consists of a core package, a Non-Domestic Calling Service (NDCS), and an optional package. A package is a combination of different services. The core CS package consists of an unlimited usage of local, regional toll and domestic long distance services. The domestic long distance

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service is equivalent to the service described in Section C.2.2.1. The contractor shall provide a MRC and NRC for the core package. The optional CS package consists of the core package, a non-domestic calling service, and any combination of the optional services listed in Table B.2.6.5-1. NDCS is mandatory to provide and is equivalent to the non-domestic service described in Section C.2.2.1.

The contractor may provide a MRC and NRC for an optional package.

For the core and optional CS packages, the contractor shall price the service in two geographical regions:  CONUS and OCONUS. Within the CONUS region, the contractor shall provide a single, fixed MRC by state for each contract year. For the OCONUS region, the contractor may provide different, fixed MRCs based on the Country/Jurisdiction ID where the service is provided. The contractor shall identify the CS price(s) in the CONUS and OCONUS regions using the standard two-letter postal code state abbreviations, and the Country/Jurisdiction ID codes provided in Section B.6.6 respectively.

In addition, the contractor shall provide an MRC for the core and optional service packages based on the following types of local loop required by the customer:

a.                                       Analog.

b.                                      ISDN BRI.

c.                                       ISDN PRI.

d.                                      Analog trunk.

e.                                       Digital T1.

The contractor may charge a NRC for the installation of a new local loop required for a core or optional service. However, the MRC for the local loop shall be included in the MRC of the core package or appropriate optional service. If the customer has previously purchased local loop from the contractor, then the customer may use the existing local loop to provide the core or optional package of services. The MRC for the existing local loop shall be separate from the MRC of the core or optional package.

If the contractor prices a core or optional package at the Routine Service Level, then the contractor shall provide all of the services within the core or optional package at the Routine Service Level. Similarly, if the contractor prices a core or optional package at the Critical Service Level, then the contractor shall offer all of the services within the core or optional package at the Critical Service Level. The Routine and Critical Service Level metrics are defined in Section C.2.6.1.

The contractor shall provide any regulatory fees and surcharges, such as local number portability and directory assistance, which are applicable to the Government, as pass-throughs of actual cost with no additional markup. The contractor shall provide prices for foreign wireless termination in Table

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B.2.2.1.3-11 Non-Domestic Mobile Termination Add-On Prices and prices for payphone compensation in Table B.2.2.3.3-3 Domestic Payphone Add-On Prices.

Core Package Prices and NDCS Discount Percentages

If the contractor chooses to provide only a core package, then the contractor shall list the monthly recurring charges and non-recurring charges at the Routine Service Level for the core package in Table B.2.6.4-1 for the CONUS region and in Table B.2.6.4-2 for the OCONUS regions. Table B.2.6.4-3 provides the applicable charging units for the core package within the CONUS and OCONUS geographic regions at the Routine Service Level. Similarly, the contractor shall list the monthly recurring charges and non-recurring charges at the Critical Service Level in Table B.2.6.4-4 for the CONUS region and in Table B.2.6.4-5 for the OCONUS regions. Table B.2.6.4-6 provides the applicable charging units for the core package within the CONUS and OCONUS geographic regions at the Critical Service Level. The contractor shall price the Critical Service Level for the core package on an individual case basis (ICB). The contractor shall charge a non-recurring charge for installation of a new local loop only.

The contractor shall offer NDCS at a percent discount off of the per six-second increment charges for the service as defined in Section B.2.2.1. The contractor shall provide only the discount percentage for service and shall not propose any additional access charges for the service. The contractor shall list the discount percentages for NDCS in Table B.2.6.4-7, Table B.2.6.4-8, Table B.2.6.4-9, and Table B.2.6.4-10, respectively. Table B.2.6.4-7 provides these percentages at the Routine Service Level for the CONUS region, while Table B.2.6.4-8 provides these percentages at the Routine Service Level for the OCONUS regions.

Similarly, Table B.2.6.4-9 provides the discount percentages at the Critical Service Level for the CONUS region, while Table B.2.6.4-10 provides these percentages at the Critical Service Level for the OCONUS regions.

If the contractor chooses to provide an optional package, then the contractor shall provide the core package.

Table 0-1. CS Core Package Prices – OCONUS (Routine)

*    For Country/Jurisdiction ID codes, see Section B.6.6

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Table 0-2. CS Core Package
Pricing Instructions – Routine Performance

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Table 0-3. CS Core Package Prices – OCONUS (Critical)

*    Case number applies to ICB CLINs

**  For Country/Jurisdiction ID codes, see Section B.6.6

Table 0-4. CS Core Package
Pricing Instructions – Critical Performance

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Table 0-8. CS OCONUS – NDCS Discount Percentage (Routine)

*    For Country/Jurisdiction ID codes, see Table B.6.6-1

Table 0-10. CS OCONUS – NDCS Discount Percentage (Critical)

*    For Country/Jurisdiction ID codes, see Table B.6.6-1

CS Feature Prices

The contractor shall provide the features listed in Table B.2.6.6-1. In addition, the contractor shall provide the limited set of Toll Free Service features listed in Table B.2.6.6-2 whenever Toll Free Service is offered. For all other optional services, the contractor shall provide the same set of features as those offered in the separate Networx service pricing section.

The contractor shall not price any features separately for any service in the core package. Thus, all feature charges shall be included in the MRC for the core package. Also, the contractor shall not price any features separately for any optional service priced on a flat MRC basis. For any optional service priced on a percent discount basis, the discount percentage shall be the same for the basic service and features. Therefore, the contractor shall propose a single discount percentage off of all the charges for an optional service.

Table 0-5. Combined
Services Features

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Table 0-6. Toll-Free Service Features

12.0        Bonding Requirements

Not applicable.

13.0        Invoicing Requirements

In order for you to receive payment, receipts must be completed and all ORIGINAL invoices must be submitted to Accounts Payable.  In the event an original invoice was sent to the Verizon end user, it will be the responsibility of the Verizon end user to ensure the original invoice is forwarded to Accounts Payable.

A valid invoice MUST contain the following:

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The payment terms for such work will be Net 30 days from date of an authorized invoice.

Failure to follow the above directions may result in delay of payment.

14.0        Applicable Documents

GCI ICDs

GCI ICD_P_II_SPIM_v2.8_06072007.doc

GCI SV_7 2_ICD_GCI_v4 0.doc

GCI ICD_GCI_ASR_v2.1_01182007.doc

GCI Pricing

See attached excel worksheet.

Verizon will provide any working documents that may be required to complete the work effort.  All content will be the exclusive property of Verizon.   “GCI” will secure prior approval from Verizon before any materials are shared publicly.  Because Verizon will have provided content and approve on all material, Verizon will have sole responsibility for accuracy of contents.

15.0        Vendor Outsourced Activity

No third party subcontractor shall be added to a Statement of Work by the Consultant without obtaining prior approval from Verizon’s Primary contact above.

16.0        SOW Change of Scope Procedure (if applicable)

Any change to this Statement of Work shall be provided in writing and accepted by both Parties before being accepted and included as a part of this SOW Agreement.

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17.0        Acceptance Criteria

Acceptance shall be given when all of the deliverables have been received or completed, including receipt of all documents and data produced during this project.  Approval of invoice for work performed is acknowledgement of acceptance criteria.

The parties agree that this engagement letter/SOW describes certain Services to be performed by GCI for Verizon. GCI acknowledges and agrees that the Services described herein shall not commence until GCI receives from Verizon a Purchase Order incorporating this engagement letter/SOW.  THERE IS NO BINDING OBLIGATION BETWEEN GCI AND VERIZON WITH REGARD TO THE SPECIFIC PROJECT DESCRIBED IN THIS SOW UNTIL THE CORRESPONDING PURCHASE ORDER IS ISSUED.  FAILURE TO OBTAIN BOTH A VALID PURCHASE ORDER AND AN APPROVED ENGAGEMENT LETTER OR SOW WILL RESULT IN VERIZON HAVING NO LIABILITY OF ANY KIND FOR ANY PERFORMANCE OF SERVICES DESCRIBED HEREIN.

In WITNESS WHEREOF, the parties have entered into this Statement of Work as a part of an agreement.

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Exhibit A