A02.14 Sole Source Justification Under SAT - Agriculture Commodity Data - SAM.gov.docx

SOLE SOURCE MEMORANDUM FOR ACTIONS UNDER THE SAT

IAW FAR 13.106-1(b)(1)(i)

1. Contracting Activity: The United States Army Corps of Engineers (USACE), Humphreys Engineer Center Support Activity (HECSA)

2. Description of Action: Requesting approval for a new Firm Fixed Price contract using Civil Works (Remaining Items) funding, Transportation Systems Program.

3. Description of Supplies/Services: Acquisition of Agricultural and Commodity Data for Analysis in Support of the Waterborne Navigation Program of the U.S. Army Corps of Engineers (USACE): USACE is proposing the acquisition of agricultural and other commodity reports, data, forecasts to support verification of data assembled by the Waterborne Commerce Statistics Center (WCSC) and for use in economic evaluations of inland navigation costs and efficiencies by the Institute for Water Resources (IWR) and USACE at large. Per regulations, USACE is required to perform rigorous economic evaluations for its water resource projects. Its navigation mission requires a host of unbiased data and forecasts which are incorporated into the decision-making process. To support these requirements, the Institute of Water Resources (IWR) requires a commercial agricultural and natural resources transportation report and forecast subscription. The period of performance for this contract will be one year and the estimated value of the contract is $XX,XXX.XX.

4. Authority Cited: 10 U.S.C. 2304(C)(1) or 41 U.S.C. 253(C)(1) as implemented in FAR 13.106-1(b)(1)(i)

5. Reason for Authority Cited: S & P Global/IHS Markit, Inc. (formerly Informa) is an international firm specializing in analysis of agricultural production, trade and policy issues and was created following the merger of the WEFA Group and DRI, two widely recognized and respected leaders in U.S. macro-economic and industrial sector forecasting. IWR had a history of contracting for the services of both firms when they were separate entities. No other firm offers the same off-the-shelf subscription services to provide historic and forecast data for U.S. agriculture and commodities based on easily tracked production indices.

In addition to providing consulting services and occasionally providing customized multi-client studies, I.H.S. Markit provides a commercial-off-the-shelf subscription forecasts for agricultural and other commodity transportation analyses. These forecasts are vital to IWR’s analytical and technical support mission with respect to USACE Headquarters, Division and District offices. Over time, I.H.S. Markit has grown and has absorbed/acquired several firms specializing in commodity forecasting. As a result of past acquisitions combined with the improved level of detail for analysis and evaluation, S & P Global/I.H.S. Markit has, to our present knowledge, become the primary and arguably the most authoritative source for the nature and detail of information and related products as described by the PWS and needed by USACE for application to the evaluation of waterborne navigation studies. In addition, past experience and general inquiry has shown that S& P Global/I.H.S. Markit to be the most cost-effective source of described data and associated professional services. Another reason for USACE acquisition of I.H.S. Markit data and forecast products is that S& P Global/I.H.S. Markit has been employed routinely by USACE in the past and consequently they provide the advantage of continuity of their products supporting analytical practice and procedures.

S & P Global/I.H.S. Markit Inc. offers unique off-the-shelf economics and transportation forecast subscription services not provided to the same level by any other vendor. Their approach of providing historical and forecast production indices for key economic sectors is essential for the development of Corps of Engineers forecasts relating to national inland and deep draft navigation investment needs in general, and performance measurements to assess the return on investment from continued navigation Operations & Maintenance expenditures during a period of budget constraints. These studies will determine the economic feasibility of billions of dollars of navigation investments at coastal harbors and on inland waterways. As an independent, non-partial vendor, S & P Global/I.H.S. Markit provides real-time reports and forecasts of very specific commodities such as grain, oil, and wheat, among others. And while some Federal agencies such as the Department of Agriculture and Department of Energy publish broad forecasts, they may potentially contain bias and are not published as frequently as those by S & P Global/I.H.S. Markit which offers weekly and even daily updates. In fact, many Federal agencies contract with S & P Global/I.H.S. for this very reason. Having up-to-date, unbiased information in key to USACE decision-making credibility and reducing liability from litigation. In addition, S & P Global/I.H.S. Markit has offered to bundle the subscription services at a substantial discount of 40% off the cost if purchased separately from them through Library of Congress’ FEDLINK vendor service. As with the previous IHS Inc. contract, IWR will share the subscription products with planning offices throughout the Corps of Engineers, providing the Government with substantial savings compared to each Corps office purchasing these products individually. This also ensures consistency of economic assumptions used by planners throughout the Corps Civil Work Navigation Program.

Consequently, the objective has been, subject to considerations of budgets and resource limitations, acquiring the economics and trade data with the most complete coverage both in terms of the number of commodities as well as the constituent data and statistics for individual vessel specifications or parameters. The easy to access reports allow users to quickly pull up commodity and trade data and forecasts, thereby saving countless time and money for the user to have to hunt down the data on their own.

Acquisition of agricultural and trade data from IHS-Markit is requested as a sole-source acquisition as the product represents the largest single repository of data related to economics, trade and shipping data. With considerations for limitations on budgets, S & P Global/I.H.S. represents the single best and most cost- effective source for providing required data pertaining to economics and shipping data needed for economic analysis. Given further consideration about the critical need for such data and information to support statistical verification and compilation of data for economic evaluation of the USACE navigation program, it is requested that subject acquisition of the commercial vessel register be acquired as quickly as processes for acquisition permit.

6. Efforts to Obtain Competition: Two other credible and independent firms compile and publish economics and trade data and forecasts that could be applied to USACE navigation studies, Clarkson’s and Lloyd’s Fairplay. Based on a review of their products, including using a 7-day trial of the product, the Deep Draft and Inland Planning Center of Expertise, felt that the coverage provided by Clarkson’s and Lloyd’s Fairplay were not to the level that S & P/Global I.H.S. provides. Correspondingly, it is requested that the contract for described product be placed with I.H.S. Markit subject to budgetary constraints and funding after any efforts of contracting authority to advertise for the minimum period required prior to issuing a non-competitive award under the Simplified Acquisition Threshold.

7. Actions to Increase Competition: USACE will continue to evaluate products from other vendors in the market to determine whether a comparable product is produced in the future, prior to any subsequent award.

8. Market Research: Presently only two other credible and independent firms compile and publish economics and trade data and forecasts that could be applied to USACE navigation studies. These include Clarkson’s and Lloyd’s Fairplay. However, based on a review of their products, including using a 7-day trial of the product, the Deep Draft and Inland Planning Center of Expertise, felt that the coverage provided by Clarksons and Lloyds were not to the level that S & P/Global I.H.S. provides. Another alternative would be to request information by other Federal agencies such as the Department of Energy and Department of Agriculture, but these agencies do not publish forecasts as routinely and to the same level of detail as IHS Global Insight. Having up-to-date, unbiased information in key to USACE decision-making credibility and reducing liability from litigation. Having an open competition at this point would result in unacceptable delays to the delivery of the product while not resulting in a different product.

9. Interested Sources: To date, no other sources have written to express an interest. Notices required by FAR 5.201 shall be published and any bids and proposals received shall be considered.

10. Other Facts: Procurement history.

W912-HQ-19-F-0117 (Base Year + 2 Option Years) = Total Cost = $220,000 The prior contract was a Firm Fixed Price Sole Source procured under 10 U.S.C. 2304(c)(1), FAR 6.302-1, and DFARS 206.302-1, Only One Responsible Source and no other supplies or services will satisfy agency requirements. Each contract provided off-the-shelf subscription services unique to the vendor that justified sole source procurement actions. The firm, S & P Global (a subsidiary of I.H.S. Markit) is now comprised of previously separate firms DRI, the WEFA Group and Reebie Associates. The proposed contract will combine and continue analytical and economic forecast services required for ongoing IWR support to HQ and Corps Division and District planning staffs. By bundling the several forecast subscription services, S & P Global/I.H.S. will provide these services at up to a XX% discount compared to obtaining them separately from I.H.S. through FEDLINK or commercial acquisition.

Acquisition data availability. Acquisition Data is not available. The contract services sought are ongoing, continuously updated off-the-shelf Long-Term Economic, Energy, Agriculture, World Trade, Rail Cost and Barge Cost historic and forecast indexes unique to S & P Global/IHS, Inc. The company has a worldwide client base for these services. It would be prohibitively expensive for another company to develop competitive forecasting services solely to meet IWR needs and specifications.

11. Fair and Reasonable Cost Determination: I hereby determine that the anticipated price to the Government for this contract action will be fair and reasonable, based on use of these products over time, knowledge of the current market, and recent evaluation of products as described above. Per FAR 15.403-1(b)(3), certified cost and pricing data is not required.

David A. Kaplan Procuring Contracting Officer Phone: 703-428-8487

12. Contracting Officer Certification: I certify that this justification is accurate and complete to the best of my knowledge and belief.

David A. Kaplan Procuring Contracting Officer Phone: 703-428-8487

Approval Based on the foregoing justification, I hereby approve award of a firm fixed price contract to S & P Global/I.H.S. Markit in the amount of $XX,XXX.XX on an other than full and open competition basis pursuant to the authority of FAR 13.106-1(b)(1)(i), subject to availability of funds, and provided that the services and property herein described have otherwise been authorized for acquisition.

David A. Kaplan Procuring Contracting Officer

Prepared by:

Bart P. Dziadosz Contract Specialist