F03_JOFOC_Form_SAM__-_Redacted_1.pdf

Attachment 1: Description of Requirement

The Bureau of Ocean Energy Management (BOEM) has the authority to issue leases, easements, and rights-of-way on the Outer Continental Shelf (OCS) using a competitive or a non-competitive process. When BOEM uses a competitive process, it awards offshore lease areas through a simultaneous ascending clock auction format using a configurable web-based application in a cloud hosted environment.

For each lease sale, the number and configuration of lease areas to be offered is determined by

BOEM. BOEM anticipates up to five sales each year within this effort and resulting Period of

Performance, however, no number of auctions are guaranteed.

For each lease sale, BOEM publishes a Proposed Sale Notice (PSN) in the Federal Register, followed by a 60-day comment period. The PSN includes a statement of the proposed auction format and related parameters and procedures. During the PSN comment period, BOEM and the auction services provider host a public auction seminar to discuss the auction process and format.

After an undetermined period of comment review, BOEM publishes a Final Sale Notice (FSN) in the Federal Register, followed by a 30-day waiting period before an auction may take place. The

FSN provides the detailed auction rules, parameters, and procedures, and it reflects any changes to the PSN in response to public comments received or further internal review by BOEM.

Bidders at BOEM’s offshore auctions are required to be legally, technically, and financially qualified in advance of the auction. Bidders submit their qualification applications directly to

BOEM. A list of qualified bidders is transmitted by BOEM to the auction services provider approximately five days after the FSN is published in the Federal Register.

The auction services provider configures the auction system based on information provided by

BOEM and conducts the lease sale auction. Following the conclusion of the auction, the auction services provider closes the auction and provides final data and reporting services to BOEM.

Winning bidders are notified in writing by BOEM of bid acceptance in writing following the auction.

BOEM seeks a Cloud Service Offering to provide both cloud web hosting and Infrastructure as a

Service (IaaS)/Platform as a Service (PaaS) technical support with the requisite IT security services along with auction services and auction software to hold ascending auctions for outer continental shelf acreage.

The scope was awarded to Power Auctions via a competition under solicitation

140M0122Q0025. The original solicitation anticipated that there could be up to 3 lease sales per period. The purpose of this sole source is to increase number of anticipated of lease sales from 3 to 5 per period.

A scope of a lease sale entails the following as described in 140M0123P0002:

2.1.1.1 PSN Consultation

BOEM will consult with the Contractor and request an initial auction rules and system configuration recommendation prior to the publication of the Proposed Sale Notice (PSN). In its request, BOEM may explain any key auction issues that might affect the recommendations.

Within 7 days of being provided the electronic draft PSN by BOEM, the Contractor will provide written comments about any auction-related issue in it, reflecting their knowledge of auction implementation, helping to ensure against omissions of key information, and preventing misunderstanding among bidders.

2.1.1.2 Auction Application Configuration

The contractor will configure its auction system to accommodate the auction format and the corresponding rules determined by BOEM, the auction configuration recommendation and any addition information provided by BOEM (such as list of qualified bidders or the asking price increments).

2.1.1.3 Public Seminar

The Contractor will help to provide a public seminar about the auction with BOEM. This will take place during the PSN comment period, at a place and time announced by BOEM in the

PSN. The purpose of the seminar is to introduce potential stakeholders to the auction format provided in the PSN, explain the auction rules, and demonstrate the auction process through examples. The Contractor will work closely with BOEM staff to coordinate the agenda, speaking assignments, and presentation materials to be provided, which will be posted to BOEM’s website.

2.1.1.4 Auction Configuration and Rules Report

Following the conclusion of the comment period for the PSN, the Contractor will write detailed auction rules for inclusion in the FSN consistent with the stipulated format identified by BOEM and provide additional consulting on any auction issues raised in the PSN. The Contractor will identify any potential issues with the proposed auction format presented in the PSN or revised by

BOEM reflecting comments and will recommend alternatives to address with BOEM.

2.1.1.5 Configuration Verification

BOEM may request a live interactive demonstration of the configured auction software to confirm it works correctly. The interactive demonstration will include functions such as verification of the rules, configuration, or server and communications performance. This demonstration will be based on the auction specification provided in either a past lease sale or a

PSN or FSN for an upcoming sale, at BOEM’s discretion. The Contractors’ demonstration will include a scripted trial auction with at least ten (10) government personnel participating as surrogate bidding agents or monitors.

The Contractor can lead the demonstration remotely or from either its own facility or BOEM’s offices depending on specific needs. The demonstration auction must be conducted using the same cloud platform as will be used in the actual auction with BOEM staffers logging into the system via the internet from multiple locations. Examples of phone bids must be included in the demonstration. Following the demonstration auction, BOEM will notify the Contractor of any problems or concerns identified during the demo. The Contractor must resolve these matters prior to the upcoming auction. BOEM may request another demonstration auction to verify the revised system works as needed.

2.1.1.6 Review Draft FSN

Within 7 days of being provided the electronic draft FSN by BOEM, the Contractor will provide written comments about any auction-related issue in it, reflecting their knowledge of auction implementation, helping to ensure against omissions of key information, and preventing communication issues with bidders.

2.1.1.7 Mock Auction for Bidders

The Contractor will conduct a mock auction for bidders shortly before the monetary auction to:

• give qualified bidders a hands-on opportunity to learn based on realistic bidder specifications and conditions using the same auction software to be used in the actual auction.

• ensure qualified bidders can connect to the auction system from multiple locations/devices prior to the start of the mock auction.

• provide the opportunity for BOEM to gain experience in monitoring the auction environment in real time.

Scripted bidding scenarios are preferred, and any scripts for the bidders will be developed by the

Contractor. The mock auction must follow format and procedures specified in the FSN.

2.1.1.8 Conduct Monetary Auction

The Contractor is expected to conduct the lease sale monetary auction, with participation of designated government personnel, and determine provisional winning bids and prices based on all the specifications provided in the FSN, including the auction format, parameter specifications, and bidding procedures.

The auction will be directed and conducted in a secure, cloud environment following criteria described in section 2.3.4.3 – Security, 2.4 – Auction Software Requirements, and 2.8 Security

Objectives and Service Level Agreements.

The Contractor shall also provide a secure room to conduct the auction.

2.1.1.9 Auction Reports and Data Files

Following the sale, the Contractor must complete and provide the following:

• Auction Validation Report

Validate the auction results are consistent with the inputs received from bidders at the conclusion of the auction. The deliverable will be a letter or short report certifying the provisional winning bid results and providing analysis to assist BOEM in identifying issues that could provide cause to reject bids, such as anti-competitive behavior, auction system errors, or the presence of unusual bidding patterns.

• Complete Auction Data File

The Contractor will provide an electronic file to BOEM with all auction data including all data inputs provided by the bidders (including telephone recordings or transcripts), bidder information, bid data, results, and audit tracking data collected during the auction by the auction environment, including but not limited to data and time stamps for each bid. This electronic file will be used to fulfill records management purposes. The file must be provided in common office automation format agreed upon by the Contractor and

BOEM.

This file will be delivered following any security protocols defined in section 2.3.4.3 -

Security and 2.4 – Auction Software Requirements.

• Auction Final Report

The Contractor will provide a summary of auction operations, confirm auction results are authentic and accurate, and identify any lessons learned or potential best practices based on the conduct of the auction within 10 business days.

• Auction Close-Out

All data are property of the government. The Contractor is to restrict Bid Representative access to the auction online site within 24 hours of the completion of the auction. BOEM is to continue to have access to the auction cloud site for 30 days following the completion of the auction for purposes such as downloading reports. The Contractor is not permitted to disseminate any BOEM information beyond what is permitted in this order without explicit written notice from the Contracting Officer’s Representative

(COR).

• Auction Shut-Down

After the 30 days, the Contractor will shut down access to the lease sale cloud system and ensure no information is accessible after this time. Upon completion of the work related to the contract, the Contractor must provide evidence that all government (bureau) data has been purged from any systems used. Auction data must be permanently removed from the cloud system, from all development or test systems and any backups or images wiped according to criteria in 2.4 – Auction Software Requirements.

2.1.1.10 Ad Hoc Reports and Review

BOEM may request that the Contractor provide additional reports/information on an as-needed basis before and/or after the completion of the auction as well as review any related documents.

2.1.1.11 Overlapping Schedules

The Contractor must be able to conduct multiple tasks at the same time in the event BOEM has overlapping sales schedules. An example of this is performing Pre-PSN Consultation tasks for one auction in the same week of a Mock Auction for another auction.

2.1.1.12 Additional Consulting Services

The Contractor may be called upon from time to time to provide subject matter expert consulting services and other activities necessary to support an active auction process not anticipated at the time this SOW was prepared.

2.1.1.13 Request to Halt Work

The potential tasks supporting a single sale are covered in this section. However, BOEM may request to stop work on an auction task if the corresponding lease sale is cancelled.