Redacted JOFOC.pdf

SOLE SOURCE FOR AN ACTION EXCEEDING THE

SIMPLIFIED ACQUISITION THRESHOLD

USING SIMPLIFIED PROCEDURES FOR

CERTAIN COMMERCIAL ITEMS

(AUTHORITY: FAR 13.501(a), 41 U.S.C. 1901)

1. Identification of the agency and contracting activity, and specific identification of the document as a “Sole Source Justification Under Simplified Procedures for Certain Commercial Items (Federal Acquisition Regulation (FAR) 13.5)”

The U.S. Department of Energy (DOE) Headquarter Procurement Services, located in Washington, DC, proposes to enter into a contract on the basis of other than full and open competition with S&P Global Platts for its Petroleum Industry Research Associates, Inc.

(PIRA) Global Crude Oil and Petroleum Products Retainer and related services. This action is in support of the U.S. Energy Information Administration (EIA), Office of Energy Analysis (OEA). This document sets forth the justification and approval for the use of a sole source acquisition found at Federal Acquisition Regulation (FAR) Subpart 13.5 and in accordance with 41 U.S. Code § 1901 and FAR Subpart 13.5 procedures.

2. The nature and/or description of the action being approved, i.e., sole source under procedures for certain commercial items in accordance with FAR 13.5.

EIA intends to award a Firm-Fixed- Price (FFP) contract to S&P Global Platts for up to 25 seats for its PIRA Global Crude Oil and Petroleum Products Retainer and related services.

This award will consist of a one-year base as follows:

Period of Performance:

Base Year: February 5, 2024 to February 4, 2025

Vendor Information:

S&P Global, Inc. (dba S&P Global Platts, large business) 2 Penn Plaza, 25th Floor New York, NY 10121 DUNS: 136635336 Cage Code: 3JPT2

UEI: KQ8HAWRKG8F1

3. Description of Supplies/Services required to meet the Agency’s Needs including the estimated value:

The requirement consists of a subscription to a full membership to online services for the following:

Global Crude Oil and Petroleum Products Retainer Service

A. World Oil Market Forecast. Sent to clients at the end of each month, the World Oil Market Forecast presents PIRA's short- and medium-term outlook for world crude and petroleum product markets. Price forecasts (12-18 months out) are provided for West Texas Intermediate (WTI) and Brent crude, as well as for petroleum products at United States Gulf Coast (USGC) and New York Harbor (NYH). A comprehensive overview of the underlying supply/demand fundamentals is also provided, along with any changes to PIRA's world oil balances, including Organization of the Petroleum Exporting Countries (OPEC) crude production, non-OPEC oil supply, world stocks, and global demand.

B. DOE Weekly Analysis. Sent to clients every Wednesday after the U.S. Department of Energy releases its "Weekly Petroleum Status Report," this report provides PIRA's market perspective and analysis of the most recent U.S. crude oil and petroleum product supply, demand, and inventory data.

C. Current News & Analysis. PIRA provides timely, insightful reports on market-moving events that cover world and regional oil markets, as well as OPEC-member country developments. More than just covering the facts, these reports analyze the effects these events have on fundamentals and what they mean for oil price trends.

Special attention is paid to results of OPEC meetings, where PIRA typically has a consultant on site to provide clients an up to date, "on-the-ground" recap and analysis of the ministers' decisions. Current New and Analysis items include "Bulletins," which are brief assessments or data presentations covering topics that are of immediate market relevance and can influence trading strategy.

PIRA quarterly monitor reports cover:

Iraq China demand India demand Asia-Pacific market forecast European market forecast

Japan (weekly)

D. Global Crude Oil and Petroleum Products Annual Retainer Client Seminar. Held every October in New York, the Seminar presents PIRA's medium- and long-term view of oil, natural gas, and electricity markets. The Seminar also examines the major structural changes expected in various world energy markets. The event is an opportunity for clients and PIRA's staff to engage in dialogue on energy markets, as well as an ideal time for industry colleagues to connect with one another.

E. World Petroleum Demand Monitor. This monthly slide show tracks the latest global demand for light and heavy products. It covers historical data back to 2001, as well as demand for specific products, including total demand for all major products compared to the demand for light and heavy petroleum products.

F. World Petroleum Product Yield Monitor. This quarterly slide show monitors crude oil runs and refinery product yields for 38 countries. Highlights include: year-on-year changes in crude runs and refinery yields, product output divided by crude runs for gasoline, naphtha, kerosene-jet, gasoil/diesel, and heavy fuel oil. Detailed summary charts and data tables are included.

G. U.S. Refinery Turnaround Schedules. Published twice a year (late summer and at year-end), this confidential survey of the U.S. refining industry's turnaround plans is presented by Petroleum Administration for Defense Districts (PADD).

H. Weekly U.S. Rig Monitor. Published on Fridays, the report—along with a supporting Excel data file—provides a detailed summary of U.S. oil and gas drilling activity in selected plays and regions since February 2011.

I. Fracking Policy Monitor. This quarterly report examines the latest U.S. policy developments at the local, state, and federal level. The analysis underpins PIRA's fundamental assessments of future prospects for liquids and gas from fracking, which are critical to both short- and longer-term balances for North American gas and, to an increasing extent, North American and global oil. Highlights include: regulatory actions, legislative initiatives, court rulings, trends in public opinion and scientific studies that influence future production.

J. Oil Bulletins and OPEC Logs. These short, timely reports, delivered on an "as events dictate" basis cover topics of immediate importance relating to breaking oil market developments and input from OPEC meetings (often attended by PIRA consultants), along with how these affect PIRA's market outlook.

K. Global Oil Special Reports. These periodic reports deliver more in-depth analytical views of ongoing developments and medium-term trends in the global oil market.

Highlights include: regular economic recaps, an annual North Sea production forecast and coverage of political events that may affect the oil market.

L. Global Political Risk Alerts. Sent "as events dictate," risk alerts are insightful assessments of regional or global political events with the potential to alter short- and long-term market prices or trends.

M. Weekly Country Risk Scorecard. This one-page scorecard tracks political developments in major oil producing and consuming countries, while assessing price impact (bullish, neutral, bearish).

petroleum product markets through a series of deliverables that offer unsurpassed market intelligence and fundamental analysis of oil market developments, including supply/demand insight, price forecasts, online databases, and superior follow-up client servicing.

Other vendors such as IHS and Hart Energy do not provide a unique perspective on oil market economics, nor do they utilize as a broad an approach, which draws on expertise from upstream supply issues, demand drivers, geopolitics, global economic conditions, and refinery economics. Further, the proprietary data offered by S&P Global Platts are critical to properly address inquiries from EIA stakeholders on market disruptions, prices, and economic variables used for research and other emerging issues in energy. Losing access to this proprietary data and services would compromise EIA’s ability to deliver on its congressional mandate to collect, analyze, and disseminate independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practical, including whether a notice was or will be publicized as required by Subpart 5.2 and if not, which exception under 5.202 applies:

The DOE Procurement Services/MA-642.1 Contracting Officer posted a notice of intent to sole source to System for Award Management (SAM), as required by FAR 5.2, on January 5, 2024 to ensure offers are solicited from as many potential sources as practicable for this sole source FFP type contract. No other vendor responded to the notice of intent by the time of its closing on January 20, 2024.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

No award shall be made until the Contracting Officer determines the cost to the Government to be fair and reasonable. This determination will be based on a comparison of the proposed price with prices found reasonable on previous purchases and market research.

8. A description of the market research conducted and the results.

Market research was conducted to determine whether other sources of this data exist. First, EIA made inquiries to S&P Global Platts about vendors authorized to sell its PIRA subscription and S&P Global Platts responded with a letter on January 5, 2024 stating the required web-based subscription was solely provided by S&P Global Platts (i.e., no authorized reseller available). Second, on January 5, 2024, a notification of this proposed contract action was posted to SAM.gov with a closing date of January 20, 2024. This was an opportunity for vendors other than S&P Global Platts to reach out to EIA with their capability statements. No responses were received by the closing date.

Finally, as a purchaser of myriad data to satisfy its agency mission, EIA continuously conducts market research for new data providers. Should this research reveal any other vendors that can offer the same breadth of real-time data, analyses, tools, research, and articles as S&P Global Platts, then the requirement will be competed.

9. Any other facts supporting the use of other than full and open competition.

There are no additional facts supporting the use of other than full and open competition.

10. A listing of any sources that expressed a written interest in the acquisition.

No sources expressed interest in the acquisition.

11. A statement of actions, if any, that were taken to remove or overcome any barriers to competition:

EIA is in the process of developing an organization-wide plan to manage subscription services and third-party data purchases. Ultimately, this process should result in fewer sole-source procurements.

In the meantime, no other vendors have been identified as capable of providing the unique detailed real-time data, research, articles, and systems/tools that are supplied by S&P Global Platts and currently required for EIA to meet its congressionally mandated requirements for reports and publications. However, as noted above, EIA continuously conducts market research for new data providers and if this research reveals any other vendors that can offer the same breadth of real-time data, analyses, tools, research, and articles as S&P Global Platts, then the requirement will be competed.

CERTIFICATION

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

, Contracting Officer’s Representative Date

REVIEWS AND APPROVALS

I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief.

, Contracting Officer Date