GAMS JOTFOC-fJust-rcj.doc

TO:

Contracting Officer, Office of Procurement and Property Management, Procurement Operations Division

FROM:

USDA- OCE

SUBJECT:

Justification for Other than Full and Open Competition

Nature of Action Being Approved

This is a request for the sole source acquisition of the General Algebraic Modeling System (GAMS) software and CPLEX solver so that the Forest and Agricultural Sector Optimization Model (FASOM) can be run at USDA-OCE.

Description of Supplies or Services Required

Provide a detailed description of the supplies and services required to meet the Agency's needs including the estimated value and the period of performance.

To be purchased are the GAMS Base Module ($3200), GAMS CPLEX Solver ($6400), and GAMS User Manual and DVD ($50). The license fee covers a perpetual license to use the software. In the first year after the purchase of the software, maintenance and support (M&S) is free. After the first year the optional annual fee for M&S is 20% of the listed price for all licensed modules. M&S allows free updates, technical support and platform switching without additional charge.

Statutory Authority

41 U.S.C. 253(c)(1) - Only one responsible source and no other supplies or services will satisfy Agency requirements; The GAMS programming language and CPLEX solver are necessary to run the FASOM model (see below). There are no other suppliers of GAMS or other programs that could run this model.

41 U.S.C. 253(c)(2) - Unusual and compelling urgency; Improvements to the FASOM model are currently underway. In order to assist in those improvements and to incorporate them into current agency decisions, it is necessary to be able to run the model at USDA-OCE.

41 U.S.C. 253(c)(7) - Public Interest; having the modeling capabilities to run FASOM at USDA-OCE will enhance the information available to agency decision makers at a lower cost and greater speed than contracting this analysis out to non-governmental contractors.

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Justification for Other Than Full and Open Competition

Supporting Rational For Authority Cited

The FASOM model runs in a programming language called GAMS. USDA has several working agreements with FASOM model developers at Texas A&M University, Duke University, and Oregon State University to improve the model for USDA use. In order to fully take advantage of those modeling improvements it will be necessary to run versions of the FASOM model at USDA.

Efforts to Secure Competition

The GAMS Development Corporation maintains the model and incorporates updates to the software. There are no other companies that provide similar software that could run the FASOM model. The FASOM modeling team at Texas A&M and Oregon State University indicate that CPLEX is the only solver that can come to a solution in the current FASOM model.

Fair and Reasonable Cost

A trial use of the software from May 2010 through July 2010 was completed to ensure that the FASOM model would run at USDA-OCE. Other USDA agencies also have purchased this software and solver package from GAMS Development Corporation. USDA-ERS is using the same software package for some of their modeling activities. A single user license was selected for USDA-OCE instead of a multiple user license to minimize costs.

Market Survey

The General Algebraic Modeling System (GAMS) is a high-level modeling system for mathematical programming and optimization. It consists of a language compiler and numerous integrated high-performance solvers. GAMS is tailored for complex, large scale modeling applications, and allows the building of large maintainable models that can be adapted quickly to new situations. The model developed by Texas A&M in coordination with Oregon State University, termed the Forest and Agricultural Sector Optimization Model (FASOM), uses GAMS for its programming and operation. The U.S. Environmental Protection Agency and the U.S. Department of Agriculture are using FASOM to estimate the impacts of several agricultural and energy policies on land use decisions and greenhouse gas emissions. The U.S. Department of Agriculture – Office of Chief Economist (OCE) supports the enhancement of the FASOM model to address future agricultural policies and to improve modeling capabilities to assist decision making on current issues.

Other Supporting Facts

The General Algebraic Modeling System (GAMS) is specifically designed for modeling linear, nonlinear and mixed integer optimization problems. The system is especially useful with large, complex problems. GAMS is especially useful for handling large, complex, one-of-a-kind problems which may require many revisions to establish an accurate model. The system models problems in a highly compact and natural way.

Continued on the next page Justification for Other than Full and Open Competition

Interested Sources

Provide a listing of the sources, if any, that expressed an interest in the acquisition, and why each is ineligible. The reasons that another source cannot be developed should be discussed here.

No other sources provide this software.

Actions To Overcome Barriers to Competition

Provide a statement of the actions, if any, the Agency may take to remove or overcome any barriers to competition before any subsequent acquisitions for the supplies or services required.

No actions required.

Technical/

Requirements Cognizance Certification

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Contracting Officer Certification/ Approval

I certify that this justification is accurate and complete to the best of my knowledge and belief, and that the anticipated cost to the Government shall be fair and reasonable.

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