We propose hierarchically distributed path computation elements (HDPCEs) that manage a multilayered GMPLS network and provide traffic engineering paths for end-to-end routes. We apply HDPCEs to provide a VPN service on optical networks for IP customers. One of the VPN services that HDPCEs provide is individual-flow-based bandwidth allocation, which assures end-to-end QoS. However, conducting flow-based bandwidth assurance has been difficult because of the heavy burden on the admission controller (AC) and its routing delay. We made conducting flow-based bandwidth assurance possible by distributing ACs and advanced route creation. Another service provides resilient paths that are free from failure in the optical domain. There is no clear SLA on an individual path basis for the path backup policy. HDPCEs provide backup methods, such as protection, preplanned restoration, and active restoration according to the SLA with the customer.