Attachment 1- SOW.pdf

CUI//PROCURE/SSEL

Federal Energy Regulatory Commission – Office of Enforcement Statement of Work

EOX Natural Gas and Power Forward Curve Data July 31, 2024

1. SCOPE

The Division of Analytics and Surveillance (DAS) in the Office of Enforcement (OE) and the Office of Energy Policy and Innovation (OEPI) are procuring EOX Power Forward Curve and EOX Natural Gas Curve. EOXLive is a trading platform for over-the-counter (OTC) trading, including for the natural gas and power markets. The reseller(s) collects, manages, and sells EOXLive trading data to third parties.

The EOX natural gas and power forward curve data being procured provides trade prices and volumes, particularly at illiquid trading locations and for illiquid forward periods. This data is essential for staff analyzing natural gas and power price formation across the US.

2. BACKGROUND

EOXLive and its parent, OTC Global Holdings, is the world’s largest independent institutional broker of commodities, covering both financial and physical instruments. The company is a leading liquidity provider on CBOT, ICE, NYMEX and NFX, ranking #1 amongst its peers in numerous derivatives contracts among many products, with the most relevant to FERC being natural gas and power.

Commission program offices such as OE and OEPI have a need to understand how wholesale natural gas and power prices form across the US. There are numerous locations across the US that are sparsely traded, making it difficult for Commission staff to understand how prices form. The EOX forward curve data will reduce the time it takes to complete pricing research. Additionally, absent the appropriate pricing data, staff often have to attempt to impute the values of forward curves that this data will otherwise provide.

Additionally, the reseller(s) will provide historical views of these EOX products, which will prove especially useful to analysts. Historical views of products will help FERC analysts better understand the fundamental view that market participants may have been seeing in the market at the time they were making their trades. This will provide crucial information and context as FERC analysts try to understand participant behavior and will allow staff to fact check what participants report as their rationale when we communicate with them.

OE and OEPI staff anticipate that this data will be useful in RTO markets as well as in the developing non-RTO markets where Order No. 760 data is not available. In these markets, almost all transactions are conducted bilaterally. The company that has the most insight into these bilateral trades is the broker that conducts them, namely EOXLive. Staff anticipates that these fundamental views of pricing will provide a large amount of understanding and transparency in these spaces that is not currently available in any data sources available to the Commission. The recent extreme weather events in the west, requiring extensive analysis of FERC’s jurisdictional markets, make this data especially valuable for Commission Analysts. The extreme fluctuations in both the natural gas and power markets in September and December 2022 are being actively studied for manipulative behavior by market participants. Having a clear idea of what prices participants were seeing in western markets, where there is no Order No. 760 data, will help analysts to better understand behavior and dismiss or flag potentially manipulative behavior.

3. TASKS

3.1 The Vendor shall provide access to the following data:

EOX Natural Gas Forward Curve Data Provides forward curves and assessments for all natural gas trading locations, including all the major natural gas hubs in North America. The coverage includes both physical and financial products including swaps and financial futures prices.

EOX Power Forward Curve Data Provides forward curves and assessments for nearly two hundred power trading locations, including all the major power hubs, nodes, and relevant trading locations in North America. The coverage will extend to all seven RTOs/ISOs in the United States, as well as providing data on trading in areas of the United States outside of RTO/ISO markets. It will also extend into Canada, providing brokerage data on the Ontario and Alberta system operators. The coverage would include forward curves for standard on-peak and off-peak forward contracts, heat rates, and transmission prices for these markets, as well as providing long-term views into less liquid future tenors.

In addition to providing the daily values for the above, the Vendor shall also provide the historical values.

The Vendor shall be directly responsible for ensuring the accuracy, timeliness, and completeness of all tasks under this effort.

The Vendor shall provide Commission-wide access to this data.

3.2 The Vendor shall make this data available via API so that Commission staff can setup automated processes that routinely download the data and make available on Commission systems.

The Vendor will provide help desk support for the data feeds identified above.

4. OTHER PERFORMANCE REQUIREMENTS

Not Applicable

5. SECURITY REQUIREMENTS

A security clearance is not required in performance of this effort.

5.1. Contractor Interfaces

Not applicable

5.2. Disclosure of Information

Information made available to the contractor by the Government for the performance or administration of this effort shall be used only for those purposes and shall not be used in any other way without the written agreement of the Contracting Officer.

The contractor agrees to assume responsibility for protecting the confidentiality of Government records, which are not public information. Each contractor or employee of the contractor to whom information may be made available or disclosed shall be notified in writing by the contractor that such information may be disclosed only for a purpose and to the extent authorized herein.

5.3. Limited Use of Data

Not Applicable

6. PLACE(S) OF PERFORMANCE

The data being procured from the Vendor is available online through the Vendor’s web-based application and all work will either be performed online or by phone.

7. PERIOD OF PERFORMANCE

Base Period - 1 year from contract award.

Option Period I - 1 year from the end of the based period

Option Period II - 1 year from the end of option period I

Option Period III - 1 year from the end of option period II

Option Period IV - 1 year from the end of option period III

All Option periods shall allow flexibility in the categories of market access beyond the core North American gas and power categories.

8. DELIVERABLES

The deliverable products required under this contract are on demand access to EOX Power Forward Curve and EOX Natural Gas Curve data.

8.1. Project Plan

Not applicable

8.2. Monthly Status Report

Not Applicable

8.3. Final Report

Not Applicable

8.4. Deliverable Table

Not Applicable

8.5. Inspection and Acceptance Criteria

Final inspection and acceptance of all work performed, reports and other deliverables will be performed at the place of delivery by the

8.6. General Acceptance Criteria

General quality measures, as set forth below, will be applied to each work product received from the contractor under this statement of work.

- Accuracy - Work Products shall be accurate in presentation, technical content, and adherence to accepted elements of style.

- Clarity - Work Products shall be clear and concise. Any/All diagrams shall be

- Easy to understand and be relevant to the supporting narrative.

- Consistency to Requirements - All work products must satisfy the requirements of this statement of work.

- File Editing - All text and diagrammatic files shall be editable by the Government.

- Format - Work Products shall be submitted in hard copy (where applicable) and in media mutually agreed upon prior to submission. Hard copy formats shall follow any specified Directives or Manuals.

- Timeliness - Work Products shall be submitted on or before the due date specified in this statement of work or submitted in accordance with a later scheduled date determined by the Government.

9. QUALITY ASSURANCE

The CORE will review all listed deliverables periodically in order to ensure accuracy and quality of product.

10. ADMINISTRATIVE CONSIDERATIONS

10.1. Correspondence

To promote timely and effective administration, correspondence shall be subject to the following procedures:

a) Technical correspondence (where technical issues relating to compliance with the requirements herein) shall be addressed to the Contracting Officer's Technical Representative (CORE) with an information copy to the Contracting Officer (CO) and the Contract Administrator (CA).

b) All other correspondence, including invoices, (that which proposes or otherwise involves waivers, deviations or modifications to the requirements, terms, or conditions of this SOW) shall be addressed to the Contracting Officer with an information copy to the CORE.

10.2. Points of Contact

10.2.1. Contracting Officer's Representative (CORE)

a) The Contracting Officer’s authorized representative, for this effort is as follows:

Federal Energy Regulatory Commission Office of Enforcement 888 1st Street, NE Washington, DC 20426

TBD

b) The CORE is the individual within the Program Management function who has overall technical responsibility for this effort The CORE supports the CO/CA during administration of this effort by:

1) Making final decisions regarding any recommended rejection of deliverables;

2) Providing technical clarification relative to overall workload matters;

3) Providing advice and guidance to the Contractor in the preparation of deliverables and services;

4) Providing acceptance of deliverable products to assure compliance with requirements.

c) The CORE also provides technical direction to the Contractor, i.e., shifting work emphasis between areas of work; fills in details, or otherwise serves to accomplish the purposes of this effort. Technical direction shall be within the general statement of work for this effort. The CORE does NOT have the authority to and may NOT issue any technical direction which:

1) Constitutes an assignment of work outside the general scope of this effort;

2) Constitutes a change as defined in the "Changes" clause;

3) In any way causes an increase or decrease in cost or the time required for performance;

4) Changes any of the terms, conditions, or other requirements of this effort; and

5) Suspends or terminates any portion of this effort.

d) All technical direction shall be issued in writing by the CORE or will be confirmed by the CORE in writing within 10 calendar days after verbal issuance. A copy of the written direction shall be furnished to the CO and the CA.

e) In addition to providing technical direction, the CORE will:

1) Monitor the Contractor's technical progress. including surveillance and assessment of performance, and recommend to the CO and CA, any changes in the requirement;

2) Assist the Contractor in the resolution of technical problems encountered during performance; and

3) Perform inspection and acceptance or recommendation for rejection of Contractor deliverables and identify deficiencies in delivered items. This does not replace any other quality assurance inspection requirements that are specified elsewhere within this SOW.

f) If in the opinion of the Contractor, any instruction or direction issued by the CORE is outside of their specific authority, the Contractor shall not proceed but shall notify the CO in writing within 5 working days after receipt of any instruction or direction, with an informational copy to the CA.

10.2.2. Contracting Specialist

The Contracting Specialist (CS) for this effort is as follows:

Federal Energy Regulatory Commission Acquisitions Services Division 888 1st St. NE Washington, DC 20426 Attn: Emmanuella Dade Emmanuella.Dade@ferc.gov

10.2.3. Contract Administration

Not Applicable

10.2.4. INVOICING

The Contractor will submit an original invoice to:

Federal Energy Regulatory Commission Office of Finance

Attn: dfs-invoices@ferc.gov

888 1st Street, NE Washington, DC 20426

To constitute a proper invoice, the invoice must include the following minimum information and/or attached documentation:

- Name of business concern/letterhead;

- Invoice date and separate/distinct number;

- Contract and Task Order number;

- Description of services and dates upon which services were rendered;

- Payment terms;

- Name, title, phone number and complete mailing address of responsible official to whom payment is to be sent or to contact in case of a defective invoice;

- Total charges for the billing period.

11. TRAVEL

Not Applicable

12. CENTRAL CONTRACTOR REGISTRATION (CCR) - NEW CONTRACTS

Not Applicable

13. POST AWARD EVALUATION OF CONTRACTOR PERFORMANCE

Not Applicable

14. SECTION 508 COMPLIANCE REQUIREMENTS

Any/all electronic and information technology (EIT) procured through this effort must meet the applicable accessibility standards at 36 CFR 1194. 36 CFR 1194 implements Section 508 of the Rehabilitation Act of 1973, as amended, and is viewable at http://www.section508.gov.

15. GOVERNMENT FURNISHED PROPERTY/INFORMATION

Not Applicable

16. PERSONNEL REQUIREMENTS

Not Applicable http://www.section508.gov./