A38_JEFO_IMPLAN_Redacted_1.pdf

Regulation (FR) 13.106(b)(1)(i) – Soliciting from a single source for purchases not exceeding the simplified acquisition threshold.

□ Exclusive Licensing Agreement

5. Rationale.

IMPLAN's products have unique and innovative capabilities and provide cost effective services not otherwise available to the Government.

In addition to the unique properties that IMPLAN’s products possess, it is essential to generate consistent data, analysis, and the integration of economic model data by the DOI from the various offices and bureaus. Consistency of data and analysis methodology is key to fulfilling DOI’s reporting responsibilities and meeting the needs of the decision-makers. In addition, when coordinating with other federal agencies, it is essentially to utilize the same platform for the various projects to ensure consistent data, methods, which is also easily sharable.

IMPLAN is the sole proprietor, distributor, and developer of the specific software tools, services, maintenance, and technical support that is applicable to DOI.

Although IMPLAN software is commercial, it is exclusively distributed only by IMPLAN Group, which has stated there are no other agents or dealers authorized to provide licensing, maintenance services, and support for IMPLAN software.

• IMPLAN is an economic input-output model that generates estimates of economic impact at a static point in time, and it is commonly used in the regional science literature on economic impact analysis. REMI is a computable general equilibrium model that allows for generating forecasts, which does not meet DOI needs particular to this contract.

• The IMPLAN model contains 528 economic sectors, whereas the REMI model contains only 53 sectors. DOI activities may impact a diverse group of economic entities in an economic contribution/impact analysis. A large set of industry sectors generally allows for more specificity in input-output modeling, resulting in a more unambiguous characterization of the sectors.

• The two models also produce different impacts. IMPLAN generates economic impacts in terms of (i) output, (ii) income, (iii) value added, (iv) jobs supported, among others, all of which are used by DOI economic analyses. REMI generates economic impacts in terms of (i) output, (ii) labor and capital demand, (iii) population and labor supply, (iv) wages and prices, and (v) market shares. They are fundamentally different models, and DOI’s needs are aligned with the impacts generated by the IMPLAN model.

• Economic literature has shown that systematic comparisons between the IMPLAN and REMI models have yielded very different results. Switching to the REMI model would be disruptive to the preparation of DOI’s Economic Contributions Reports and other analyses.

• PPA has been using the IMPLAN model to estimate economic impacts of DOI’s activities for the past 14 years. Switching to any new model would not allow for comparisons across time given the differences aforementioned between the type of results produced by both software.

6. Market Research.

The manufacturer confirmed that at they are the sole source for this product. Other software solutions were researched, but no other program provides the functionalities supplied by IMPLAN.

REMI modeling framework is the software that provides the most similar functions, but still falls short with the various limitations listed above when compared to

IMPLAN.

Under the authority of FAR 13.106(b)(1), the undersigned hereby determines the circumstances of this contract action deem only one source is reasonably available as supported herein.