Federal B2B conference

1. Federal B2B conference Frontier and Verizon – Introduction to Federal Business

2. Legal and Regulatory Environment The Federal Government As a Customer …. • No one in the Federal Government is authorized to buy anything until they have warrants/permission to buy under law and regulation. • No one in the Federal Government is authorized to process a payment unless they can demonstrate that the goods and services have been received. • Federal procurement officials are remarkably open about how they make buying decisions. Once awards are made, processes are in place, and sales and service personnel are familiar with the requirements, the process works very smoothly. • A Frontier representative that focuses on Federal issues will be very effective addition to transition planning.

3. Major Federal Customers in Frontier/Project North States Agencies of the Executive Branch under Federal Acquisition Regulations • The General Services Administration • Regions 3 (WV), 4 (NC, SC), 5 (Great Lakes), 9 (CA, NV, AZ) and 10 (WA, OR, ID) • http://www.gsa.gov/Portal/gsa/ep/contentView.do?contentType=GSA_OVERVIEW&contentId=12350 • The United States Army • The Department of Justice and the Federal Bureau of Investigation • The Veteran’s Administration Governed by Separate Regulations • The United States Postal Service (an independent agency) Federal Contracts where an Integrator is Prime and Verizon Provides the Network elements • Harris Corporation – FAA Local Services • CSC – Department of Homeland Security, National Communication Services; Government Emergency Telecommunications Service.

4. Novation Agreement for Federal Government Contracts • Novation is the replacement of one party in a contract by a new party by mutual agreement of both parties. • No one can assign a Federal Contract to another party without government review and approval. (Federal Acquisition Regulation 42.1204) • A Government Contracting Officer must approve assignment of a federal Government contract from one legal entity to another. • Novation negotiations are with the agency with the largest book of current business with Verizon. • That agency will be a single point of contact for all novation agreements. • The final novation agreement cannot be submitted to the Government Contracting Officer until after the closing date. • Until the novation is approved the government retains its contractual relationship with the original prime.

5. Operational Implications of Novation • Novation of Federal Contracts cannot start until the sale is complete. • Novation has different requirements for Stock Transfer states and Asset Transfer states • Until Novation is accepted Frontier will be the owner operator but Verizon will remain accountable to the Federal Government for billing and contract performance. A business relationship must define the operating relationship between Verizon and Frontier during the Novation period. • To rapidly complete the Novation there are steps Frontier will need to execute. • Frontier must be registered in the Government’s Central Contractor Registry (CCR) to receive a contract award, purchase order, and any payment from the Government.  As a general rule, all prime contractors must be registered in the CCR. • Execute a change of name agreement to establish the new names for the operating companies. Change-of-name agreements in the FAR are somewhat easier than Novation. If the change-of-name agreement is used in the stock sale states the Government will not recognize Frontier as the new contractor until the change-of-name agreement is executed.

6. Who Does The Work Today • For Verizon: Order receipt, billing inquiries, bill adjustments, switch engineering and design, field forces, and management of Federal local services are all done in the local operating companies. • For the government: Local services are ordered by telecommunications branches of agencies. • They contact the local customer care center directly. • Most often the work requests are made by email. • Expect frequent formal price quotes by email to meet competition requirements. • The procurement officers placing the order rarely work in the same state as the users. • Maintenance calls come from users at the sites.

7. GSA Contracts for Local Services • The General Services Administration is a central purchasing agency for all Federal Agencies. It has executed Indefinite Delivery Indefinite Quantity contracts for local services in all its regions. Government agencies have the option to use these contracts and pay GSA a fee in addition to the service rates. • Verizon currently provides local contract services in Regions 3, 4, and 10 • http://www.gsa.gov/Portal/gsa/ep/channelView.do?pageTypeId=17112&channelId=-25245 • The contracts offer comprehensive local services which include analog and digital (ISDN) voice services, data services, T-1/3 and PRI services. • Feature-rich voice services. • Free local number portability. • No per-minute usage charges for local government-to-government calls. • Comprehensive support services include billing, ordering, network troubleshooting & repair. • Verizon’s has large GSA contracts serving Research Triangle Park, NC (LSA/LSC) and Beckley, Charleston, Huntington, and Morgantown, WV (Mid Atlantic) • Other GSA agreements are stand alone ICB price contracts such as the Naval Research Lab in Bayview, Idaho • A list of contracts with terms and conditions has been provided.

8. NC GSA Contract Billing • As part of the North Carolina GSA local services contract Verizon provides an ISOC based bill. These bills are currently produced out of the Indiana Verizon Customer Care Center. Today the billing group pulls the billing information from the portal to produce the manual bills. • The Environmental Protection Agency in Research Triangle Park uses a telecommunications management tool to reconfigure their network in near real time on the network switch. The switch is partitioned and the customer’s access is restricted to an assigned inventory of lines, features, and services.

9. Telecommunications Service Priority • Managed by the Dept of Homeland Security, National Communications Service. • Certain government or commercial services, identified by NCS, have either installation or restoration priorities. • TSP priority is requested only by a government agency and is granted and tracked by the NCS. • The priorities are identified by a TSP Code provided only through NCS. (http://tsp.ncs.gov/)

10. Site Access Badges and Security Clearances • There are no Federal contracts in the Verizon/Frontier states that require security clearances. • Support to Law Enforcement/National Security are provided by Verizon Security • In order to meet service level agreements for some Federal customers Frontier will need to maintain the existing pool of vetted personnel with access badges to meet service requirements. Local management is responsible for managing and dispatching employees with approved site access. • Agencies that require badges for unescorted site access: FBI, Dept of Homeland Security, FAA, Department of Defense, Uniformed Military Services, and Department of Energy. • Other civilian agencies, like Treasury, Agriculture, Health and Human Services, and the Social Security Agency will have their own access requirements at sensitive sites.

11. Government Billing • When orders are place by a Telecommunications Service Request or a Communication Service Agreement (TSR or CSA) those numbers must remain with the account record through the life of the service. • The change of operating support systems in WV may impact this. • Maintain the current processes for tracking T&M charges under Federal Contracts that meets or exceed FAR/DAFR requirements. • In order to provide accurate billing under the Federal Acquisition Regulations (FAR) and the Defense Federal Acquisition Regulations (DFAR) Frontier will need continue to maintain procedures to obtain customer signatures for all Time and Material work billed through Federal Contracts, backed up with time sheet records, and retain the documents for the life of the contract and three years after the end of the contract. • The data must be easily retrievable to support any billing dispute or contract audit.

12. USPS: Local Services • There are several contracts with the United State Postal Service for traditional local services and circuits. They are established by region with the individual operating companies. • USPS is an independent agency of the United State Government. USPS has its own regulations and do not follow Federal Acquisition Regulations. • USPS will not be part of the Novation process briefly described above. The transfer will follow USPS regulations and will be executed as a form of contract assignment.

13. HARRIS: FAA Contract • This is a commercial contract for a Federal customer • Verizon is a subcontractor to Harris communications and provides local services for the FAA across the United States. This contract requires assignment (not novation.) • Services range from low speed analog circuits to high bandwidth connections between sites within a LATA. Frontier will continue to provide these services, meet SLA for implementation and restoration, and continue to staff field forces appropriately with personnel that have FAA approved access to towers, control centers, and data centers.

14. CSC: GETS • The Government Emergency Telecommunications Service for local access is a tariff service under FCC tariff. All local switches in Verizon territory have been configured to use SS7 Features to provide routing priority, ingress and egress, for GETS calls in the event of an emergency. • Billing is done per switch as a subcontract between Verizon and the prime contractor, CSC. This is a commercial contract. • When local and long distance networks are overloaded, GETS calls are marked with a priority code that grants them Head of the Line privileges in queues for access to originating and terminating trunks. • This is an Advanced Intelligent Network feature that operates over the SS7 Network.