ISE 1.1.1 (Fallback to local Vlan if radius server is found to be dead) not working

Question

We have configured following commands on switch to fallback to local Vlan if both radius server (policy persona's) is found dead. For test purpose we shutdown both servers (policy persona's) but fallback didn't work. We have 3750 switch running image 12.2(55)SE6 having following configuration.
We do not know whether we configured switch in proper way or do we need to modify it.
aaa new-model
aaa authentication dot1x default group radius
aaa authorization network default group radius
aaa authorization auth-proxy default group radius
aaa accounting update periodic 5
aaa accounting auth-proxy default start-stop group radius
aaa accounting dot1x default start-stop group radius
aaa accounting system default start-stop group radius
aaa server radius dynamic-author
client 10.10.10.10 server-key 7 12345678 (Policy Persona 1)
client 10.10.10.11 server-key 7 12345678 (Policy Persona 2)
server-key 7 12345678
ip device tracking
epm logging
radius-server attribute 6 on-for-login-auth
radius-server attribute 6 support-multiple
radius-server attribute 8 include-in-access-req
radius-server attribute 25 access-request include
radius-server dead-criteria time 30 tries 3
radius-server host 10.10.10.10 auth-port 1812 acct-port 1813 key 7 12345678 (Policy Persona 1)
radius-server host 10.10.10.11 auth-port 1812 acct-port 1813 key 7 12345678 (Policy Persona 2)
radius-server vsa send accounting
radius-server vsa send authentication
Port Configuration
interface GigabitEthernet0/1
switchport access vlan 305
switchport mode access
ip access-group ACL-DEFAULT in
authentication event fail action next-method
authentication event server dead action reinitialize vlan 305
authentication event server alive action reinitialize
authentication host-mode multi-auth
authentication open
authentication order mab dot1x
authentication priority dot1x mab
authentication port-control auto
authentication periodic
authentication timer reauthenticate server
mab
dot1x pae authenticator
dot1x timeout tx-period 10
spanning-tree portfast
Please help....
Thanks

Answer 1

Tabish-
The pre-auth ACL that you have on your port is used for what's called a "Low-Impact" mode type of setup. With Low-Impact mode you are allowing services defined in the pre-auth ACL until the user/devices is authenticated. Once authenticated the pre-auth ACL gets replaced with the dACL/authorization policy that you have defined in the authorization profile. As a result, it is not possible to use "fail-open" configuration with low-impact as there is nothing to replace that pre-auth ACL since your NAD device(s) are unavailable.
If you want to use the "fail-open" features you will have to use the "High Securty/Closed Mode." In that mode you cannot utilize the pre-auth ACL and essentially only EPoL traffic is allowed on port until authenticated.
For more info you should reference the TrustSec design guide located at:
http://www.cisco.com/en/US/solutions/ns340/ns414/ns742/ns744/landing_DesignZone_TrustSec.html
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