A04 JA Patent Data 2.1.2021 (DD sign).pdf

DEPARTMENT OF DEFENSE

WASHINGTON HEADQUARTERS SERVICES

1155 DEFENSE PENTAGON

WASHINGTON, DC 20301-1155

ACQUISITION

DIRECTORATE

Control No. 2021-WHS-0041

SOLE SOURCE JUSTIFICATION UNDER SIMPLIFIED PROCEDURES

FOR CERTAIN COMMERCIAL ITEMS

UNDER FEDERAL ACQUISITION REGULATION (FAR) 13.5

1. AGENCY AND CONTRACTING ACTIVITY:

The requesting agency for this action is the Office of the Under Secretary of Defense, Research & Engineering, Advanced Capabilities, Strategic Intelligence Analysis Cell (OUSD/R&E/AC/SIAC). The contracting activity for this action is Washington Headquarters Services, Acquisition Directorate, Enterprise Research & Engineering Division, Technical, Technology Analysis & Services Branch (WHS/AD/ERED/TASB).

2. DESCRIPTION OF ACTION:

This action is for a new contract titled Patent Data. The contract type will be a Firm- Fixed Price using RDT&E funds. The contract will have a 12-month base period with three 12-month options.

3. DESCRIPTION OF SUPPLIES/SERVICES:

This is a web-based subscription for the access of datasets to enable SIAC to research, analyze, combine, and report emerging trends around the world. The web-based information is unclassified and commercially available. The periods of performance and estimates for the base and all options are listed in the table below. The estimated total is $6,500,000.00.

Performance Periods

Performance Period Dates Amount

Base Period February 15, 2021 – February 14, 2022

$1,250,000.00

Option Period I February 15, 2022 – February 14, 2023

$1,500,000.00

Option Period II February 15, 2023 – February 14, 2024

$1,750,000.00

Option Period III February 15, 2024 – February 14, 2025

$2,000,000.00

Base + All Options $6,500,000.00

4. AUTHORITY CITED:

This action is being obtained using the procedures of Federal Acquisition Regulation (FAR) 13.5 under the authority of:

☒41 U.S.C. 1901, Simplified Acquisition Procedures ☐41 U.S.C. 1903, Special Emergency Procurement Authority

5. REASON FOR AUTHORITY CITED:

a. Background information about the requirement; The SIAC is responsible for conducting technology forecasting through horizon scanning and data trend analysis to inform Department of Defense senior leadership of emerging and potentially disruptive technologies with military applicability. The primary objectives of SIAC’s Technology Watch/Horizon Scan (TW/HS) branch are to:

Identify and contextualize emerging technologies that have potentially disruptive military application; Detect global technology trends that could challenge fundamental assumptions underpinning current operations and shaping the future of war; and to Apply analytics to acquired data sources to forecast future technologies in support of research and development efforts. The patent and financial dataset will assist OUSD (R&E) and SIAC in conducting bi-annual Horizon Scans and support technology watch and analysis of emerging technologies.

b. Details covering what events lead to the situation requiring use of other than full and open competition procedures; A previous SIAC report on TW/HS program requirements included a section on potential data sources to support mission requirements. This report, developed by the Institute for Defense Analyses (IDA), outlined a list of potential data sources SIAC should consider for evaluation. From this list, SIAC analysts reviewed potential vendors based on known gaps in data coverage as well as soliciting input from subject matter experts, including both the Government and nonprofit/not-for-profit data analytic centers. After identifying several vendors that appeared to meet some of the basic requirements, SIAC tested all datasets to insure that all data required by this action is included and downloadable. Through this market research the SIAC determined that only one source has all of the elements to meet their requirements. The company Bureau Van Dijk (BvD) owns proprietary global patent information and company data and web-accessible data platform, Orbis.

This dataset includes data on global patents, patent valuations, global companies and their business activities, and mergers and acquisitions information. No other vendor’s dataset that was tested included all of this information and fully functioning web-accessible data platform. Without this information the trend analysis required for the SIAC mission would be incomplete. The Contracting Officer conducted additional research by posting a Sources Sought. Results are documented in section (e) of this document.

c. Why considered alternatives will not work; Of the nine vendors contacted, including two additional vendors through the Sources Sought, only Bureau Van Dijk (BvD), with their Orbis dataset contained all required data that met SIAC’s needs. A summary of what was missing in the other vendor’s datasets is listed below:

- Dataset does not include patent information or patent valuation information, as stated in the Statement of Work section 1.1.1.

- Dataset is missing the patent valuation and chronological patent transactions, as required in the Statement of Work section 1.1.1..

- Dataset can only be used through their proprietary Terminal, which is a hardware solution that can only be accessed outside of SIAC offices in a less secure environment, which fails to meet section 1.2 of the PWS

d. Which authority applies and why; This action is authorized under 41 U.S.C. 1901 and the exception to full and open competition is implemented by Federal Acquisition Regulation (FAR) Subpart 13.5 - Simplified Procedures for Certain Commercial Items.

e. Results of Request for Information or Sources Sought Notice (IAW PGI 206-303- 2); A sources sought notice was published on Beta.sam.gov on December 18, 2021 with questions due on December 23, 2020, updated with questions and answers on December 28, 2020, and responses due to WHS/AD on December 31, 2020. There were four responses received which were technically evaluated by the Program Office. The results are as follows:

1. 1115 Industries - Capabilities statement does not include specific details as required in the Sources Sought (number of documents, company, etc.) of the data set nor web-based platform. It merely repeats the requirements stated in the Source Sought document.

2. Bureau van Dijk - Met all 7 criteria with most diverse/comprehensive set of information and data included. Only solution that offers beyond the patent info, such as financial information and ownership/company data.

3. DK Shin Laboratories - No relevant information was provided as required in the Sources Sought Notice; the vendor's main focused area is to provide SW platform and its associated analytic services, vice actual patent/company information. Did not provide the number of patent documents nor company/ownership data.

4. Clarivate – Clarivate’s proprietary database, Derwent, only offers approximately 1.5M companies in their data set. The Clarivate solution does not contain patent valuation or chronological patent transactions as required by section 1.1.1 of the SOW or IPO/Private equity/venture capital as required by section 1.1.1 of the SOW.

This information obtained by the Sources Sought has supported that the vendor Bureau van Dijk is the only source that meets the requirements of this action in their entirety.

f. Explain the impact to the mission that would result if the J&A is not approved and, the product or service not provided; If this dataset is not procured with this vendor, then the SIAC’s mission of the Technology Watch/Horizon Scan branch will be severely restricted, and consequently, unable to fully support the National Strategy for Critical and Emerging Technologies, published by the White House annually on 15 October. Without the dataset, SIAC is unable to identify what technology is most important to protect; that is, what adversaries are interested and pursuing, and how that differs and/or is similar to our interest, and as a result, ensuring our interest and priorities are protected.

6. EFFORTS TO OBTAIN COMPETITION:

All vendors that could have possibly owned the dataset that the SIAC could use to complete their mission were tested and evaluated, as illustrated in section 5b. Also, a Sources Sought was completed to ensure that we have reached out to all interested vendors. Only the Orbis dataset owned by Bureau Van Dijk (BvD) provides the SIAC the necessary information and downloadable content to meet the mission.

7. FAIR AND REASONABLE COST DETERMINATION:

The Contracting Officer determines that the anticipated prices will be fair and reasonable by using the techniques identified at FAR 15.404-1(b) to ensure award will be at fair and reasonable prices. Also, the Contracting Officer will utilize the information provided by the requesting agency’s Independent Government Cost Estimate, which was developed using their market research quote from the vendor. The estimated potential savings is a total of $1,500,000.00 for the total period of performance, as shown below.

Performance Periods

Commercially Available Price

Market Research Quote

Potential Savings

Base Period $2,000,000.00 $1,250,000.00 $750,000.00 Option Period I $2,000,000.00 $1,500,000.00 $500,000.00 Option Period II $2,000,000.00 $1,750,000.00 $250,000.00 Option Period III $2,000,000.00 $2,000,000.00 Base + All Options $6,500,000.00 $1,500,000.00

Certified Cost and Pricing Data; Because the dataset is available commercially there is no requirement to obtain certified cost and pricing data.

8. MARKET RESEARCH:

The SIAC program office conducted market research through meeting with seven vendors to get briefed on their dataset products. Each of the datasets were tested. After testing the commercially available datasets from seven different vendors, the only dataset that met all of SIAC needs is the Orbis Dataset from the vendor Bureau Van Dijk (BvD).

The sources listed below were the result of the market research.

Bureau Van Dijk (BvD) Crunchbase

Bloomberg Terminal S&P global Intelligence CB Insights Refinitiv Eikon Clarivate

The Contracting Officer conducted additional research by posting a Sources Sought, results are documented in section (e) of this document. The sources sought notice was published on Beta.sam.gov on December 18, 2021 with questions due on December 23, 2020, updated with questions and answers on December 28, 2020, and responses due to WHS/AD on December 31, 2020. There were four responses received which were technically evaluated by the Program Office. WHS/AD received 4 responses from the sources sought notice, which are listed below:

1115 Industries DK Shin Laboratories Bureau van Dijk Clarivate

9. ANY OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE:

No other supporting facts.

10. INTERESTED SOURCES:

The sources listed below are interested parties from the Sources Sought Notice:

1115 Industries LLC Bureau van Dijk DK Shin Laboratories Clarivate

11. ACTIONS TO INCREASE COMPETITION:

Is this acquisition for a non-competitive follow-on acquisition previously awarded on a non-competitive basis?

☐Yes. A copy of the previous justification is attached. The actions to remove any barriers to competition cited on the previous justification ☐ were ☐ were not completed.

☐No. The original acquisition was conducted on a competitive basis.

☒Not Applicable. This is a new requirement.

CERTIFICATION

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

Eric Kim Contracting Officer Representative/Program Office

Date

Sharon A. Hilton Contracting Officer

APPROVAL

This justification is approved.

David H. Kao Competition Advocate