A16_JOFOC_Oseberg_RDS_Redacted_1.pdf

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7A--OFO Oseberg's Atla software with the Oklahoma Dataset
Solicitation number
140L4025Q0034
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About this file

This document is a Justification for Other Than Full and Open Competition issued by the Bureau of Land Management (BLM) Oklahoma Field Office, seeking a sole-source contract with Oseberg, an oil and gas data information provider. The BLM aims to purchase an Oseberg subscription to automate manual processes related to their drainage program, idle well program, orphan well program, and bond review program. Oseberg uses publicly available information transformed through proprietary methods, providing a unique digital and mappable data set that no other vendor offers.

The contract is valued over $250,000, with pricing for a base year and two option years. Key benefits include accelerating revenue from the drainage and diligence (D&D) program, reducing internal costs, improving data processing efficiency, and enabling proactive identification of potential drainage issues. Market research was conducted, including a Sources Sought Notice and Notice of Intent to Sole Source, which found no alternative vendors capable of fulfilling the requirement. The BLM argues that Oseberg's proprietary data processing and estimation capabilities provide unique value, allowing faster identification of value-destructive activities and potential revenue losses.

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United States Department of the Interior

BUREAU OF LAND MANAGEMENT

https://www.blm.gov

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

Over $250,000

This document sets forth the justification and approval as required by FAR 13.501 and FAR 13.106- 1(b)(2).

1. Identification of the Agency and the Contracting Activity:

The Department of the Interior, Bureau of Land Management (BLM), Oklahoma Field Office requests the New Mexico State Office, 301 Dinosaur Trail, Santa Fe, NM 87508, to contract on a sole source basis.

2. Nature and/or description of the action being approved:

Oseberg is an oil and gas data information provider. They use publicly available information and transform it using proprietary methods. This allows oil and gas professionals to create automated

3.

estimated value:

Oseberg will mainly support the BLM through their drainage program (43 CFR 3162.2, 43 CFR

Purchasing an Oseberg subscription automate many of our current manual processes. We will use the data Oseberg provides in conjunction with GIS functions that were written out of other Field and drainage prioritization, which will allow for data to be loaded quickly and easily integrated into internal systems.

Base Year $ Option Year 1 Option Year 2 Total $

4. An identification of the statutory authority permitting other than full and open competition:

X_41 U.S.C. 1901 Simplified acquisition procedures (use when the simplified procedures for purchases of property and services for amounts (1) not greater than the simplified acquisition threshold;

and (2) greater than the simplified acquisition threshold but not greater than $5,000,000 for which the contracting officer reasonably expects, based on the nature of the property or services sought and on market research, that offers will include only commercial products or commercial services.

__41 U.S.C 1903 Special emergency procurement authority (applies when in support of a contingency operation as defined in section 101(a) of title 10 or to facilitate the defense against or recovery from nuclear, biological, chemical, or radiological attack against the United States).

5.

acquisition requires use of the authority cited:

Diligence and drainage have produced an estimated multiple millions of dollars. This data would assist us with prioritization which would reduce our internal costs as well as accelerate the revenue gained from our D&D program.

This software will also increase our ability to process additional cases. This would include requests from the BIA, some of which are currently being outsourced to the IESC. Those IESC resources could be reallocated to higher priority projects within the BLM and BIA.

Currently, we have access to this data in files that have been uploaded to the OCC website. These files are currently being combed through manually which can be very time consuming and inevitably lead to error. Oseberg provides a unique data set that can be combed through digitally and presented in a map format. No other company offers this data in a database format.

This procurement allows us access to additional information that can be distributed within the Oklahoma Field Office. Oseberg has a proprietary process to estimate production on a quicker timeframe than we currently have access to. This can lead to identifying value destructive activities more quickly and the government losing less revenue. Information such as Oklahoma Corporation Commission Increased Density Orders can be filed a year prior to the potential need for drainage production. This would allow the BLM to be PROACTIVE in identifying potential diligence and drainage issues.

Oseberg provides information in an easily searchable and mappable method that no other vendor provides. Most of the information is publicly available, but in a format that is unusable at a large scale. Some of the data is derived from public data and would be solely owned by Oseberg. This includes production and manually fixed data from public documents such as mistyped information.

Currently a form data aggregator is being subscribed to for approximately $ /year. This product would replace and expand on that product which was recently bought by Enerdeq.

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

Market research was conducted to identify potential vendors. A Sources Sought Notice and a Notice of Intent to Sole Source were posted; however, no vendors were identified as capable of fulfilling the requirement. The results of this market research are consistent with prior findings from similar research conducted within the past 18 months.

7. A determination By the Contracting Officer that the anticipated cost to the Government will be fair and reasonable:

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