A02.14 SSJ Under the SAT - RECONS - SAM.gov.docx

CUI

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: Approval is requested for a new, firm fixed price type of contract using Civil Works Funding in the amount of $XXX,XXX.XX.

3. Description of Services: The subject requirement is for professional services entitled “Enhancement, Technical Support, and Maintenance for the Regional Economic System (RECONS) Model.” The U.S. Army Corps of Engineers (USACE) Regional Economic System (RECONS) Model is the only certified regional economic modeling tool for the USACE, which provides accurate and defensible estimates of the regional economic impacts and contributions associated with USACE projects, programs, and infrastructure across all Civil Works (CW) business lines. Regional economic impacts and contributions are measured as economic output, jobs, income, and value added, and estimates are provided simultaneously at three levels of geographic impact area: local, state, and national. The RECONS model supports USACE HQ in response to the Assistant Secretary of the Army Civil Works Memo (“Comprehensive Documentation of Benefits in Feasibility Studies”) by providing the primary means for analyzing the regional economic development (RED) benefits.

To ensure the proper and appropriate operability of the RECONS model for all users across the USACE enterprise, it requires continued maintenance and updates to the data, model operations, back-end algorithms, including IMPLAN industry multipliers, front-end user interface/website functions, and servers. Additionally, as a USACE-certified model, the RECONS model is due for recertification in FY26. In support of this, great deal of effort must be put forth in FY25 to prepare for the recertification. Failure to get the model recertified would result in the only USACE-approved RED analysis tool to lose its certification.

In support of the RECONS model – for both its operability as well as its continued availability to all USACE economists as a certified model, this contract seeks to acquire professional services and technical support for the following: (1) Support for the general maintenance and update; (2) Support for customized requests; (3) Support for the development of annual reports; (4) Support for BIL Impact analysis; (5) Support for Enhancements in RECONS Model and Website Functions; (6) Support for preparation of IMPLAN industry multiplier update; and (7) Support for preparation of RECONS model recertification. Additionally, there are optional tasks, which include: (O1) Implementation of IMPLAN multiplier update; (O2) Implementation of enhancements for RECONS; (O3) Support for customized generic simulation module and explore new stemming-from modules; (O4) Support for the RECONS model recertification process; and (O5) Support for spending profile update in the recreation visitor spending economic impact module.

The Period of Performance (POP) for the base tasks is expected to be 20 months from the date of Notice to Proceed (NTP)/contract award. Optional tasks, if determined to be necessary and add value, may be exercised at any point during the POP (timing will be determined as operational needs dictate; some optional tasks are dependent on the completion of the base tasks). Exercising optional tasks may extend the total POP.

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: The identified contractor is Michigan State University (MSU). MSU’s employee Dr. Yue Cui, an Assistant Professor at the School of Planning, Design and Construction has extensive experience in regional economic impact analysis, input-output modeling work, and navigation, flood risk management, recreation, and natural resources management-related economic research for USACE Institute for Water Resources (IWR) and USACE Engineering Research and Development Center (ERDC), dating back to 2010. Dr. Cui and her team are uniquely qualified for the tasks outlined in this contract as she is a pioneering member of the RECONS initial development team. Dr. Cui was part of the original team that developed the RECONS model and responsible for the architectural and back-end development for the model. Since the inception of the model, Dr. Cui has provided continued support that is critical to the functionality and operability of the RECONS model.

Acquiring Dr. Cui’s professional services for this work would be exceptionally cost- and time-efficient, and optimal for the model’s continuity and consistency for the government and the RECONS team. By using someone other than Dr. Cui, there would be significant delays caused by the necessity of a new contractor learning the RECONS model which would also result in increased costs to the Government. The estimated impact in time, at minimum, is an increase of 50% for each task which stems from an estimated amount of training that would be required for a new contractor to learn the model. Additionally, if award is made to other than Michigan State University (other than Dr. Cui) for Task 7 and Optional Task 4 (tasks related to recertification support), the time increase will be significantly more than a 50% increase due to Dr. Cui’s unique and intricate understanding and experience with the RECONS model and certification and recertification processes (roughly 100% increase in time). This would result in a cost increase of an additional $XXX,XXX.XX (a 58.6% increase from estimated cost if using comparable labor rates similar to that of Dr. Cui). Further, there is a significant risk of creating inconsistencies in the data and errors in the critical processes.

6. Efforts to Obtain Competition: Market research has shown that it is not practical to compete this requirement. Given Dr. Cui’s exceptional qualifications and extensive understanding of the model’s intricate inner workings, attempting this action without Dr. Cui would be highly inefficient and costly. Nonetheless, this requirement will be synopsized on the Contract Opportunities section of the SAM.gov website for 15 days. Interested vendors will be given the chance to respond to the Notice of Intent if they are capable of meeting the requirement.

7. Actions to Increase Competition: As a means of increasing competition, IWR performed market research by considering academia as well as various USACE contract vehicles, including the Blanket Purchase Agreements for Independent External Peer Review of Water Resources Projects, and IWR considered other entities. Due to the highly unique qualifications of Dr. Cui, especially her role as a pioneering member of the RECONS development team, it would cost significantly more in both funds and time to compete this requirement.

8. Market Research: Market research has not identified a comparable entity with a sufficient understanding of the unique and intricate requirements of the USACE RECONS model. Market research indicates a sole source contract to MSU with Dr. Yue Cui at the School of Planning, Design and Construction is required for this procurement.

9. Interested Sources: To date, no other sources have written to express an interest. The notices required by FAR 5.201 will be published, and any response received will be considered.

10. Other Facts: None.

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 FAR 13.106-3(a)(2)(vi) “Comparison to an independent Government estimate.” Per FAR 15.403-1(b)(3), certified cost and pricing data is not required.

David A. Kaplan Procuring Contracting Officer Email: David.A.Kaplan@usace.army.mil

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

Approval Based on the foregoing justification, I hereby approve award of a firm fixed price contract in the amount of $XXX,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:

Quan Nguyen Contract Specialist Email: Quan.Nguyen@usace.army.mil

CUI

(Source Selection information - See FAR 2.101 and 3.104-4)