Attachment 2- JOFOC EOXLive (s).pdf

CUI//PROCURE/SSEL

JUSTIFICATION FOR

OTHER THAN FULL & OPEN COMPETITION

JUSTIFICATION FOR

OTHER THAN FULL & OPEN COMPETITION

PROJECT NAME:

EOX Natural Gas and Power Forward Curve Data

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 data from reseller, the Vendor. EOXLive is a trading platform for over the counter (OTC) trading, including for the natural gas and power markets. Reseller, 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. Commission program offices 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.

The following Justification for Other than Full & Open Competition is prepared in accordance with FAR Subpart 6.303-2.

1. ORGANIZATION:

Federal Energy Regulatory Commission Office of the Executive Director Acquisition Services Division 999 North Capitol Street, NE Washington, DC 20426

2. NATURE AND/OR DESCRIPTION OF ACTION BEING APPROVED:

It is the intent of the Federal Energy Regulatory Commission is to obtain procuring EOX Power Forward Curve and EOX Natural Gas Curve data from the Vendor, for the aforementioned location.

The basis for limiting the sources for this acquisition is as follows:

EOXLive is the only source for this data. 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.

3. DESCRIPTION OF REQUIREMENT:

In accordance with Core Functions 1.2.1 and 1.2.2 of Objective 1.2 as well as Core Function 1.1.1 of Objective 1.1 of the FY22-26 Strategic Plan, access to EOX data enables staff to better conduct oversight, monitoring, and surveillance of the natural gas and electric markets to detect anomalies and potential market manipulation and conduct investigations of potential violations of Commission regulations or market rules (Core Function 1.2.2 of Objective 1.2). Further, better access to price formation data enables deeper analysis upon filings by jurisdictional entities, ensuring establishment of Commission rules and policy (Core Function 1.1.1 of Objective 1.1).

4. STATUTORY AUTHORITY:

OTHER THAN FULL & OPEN COMPETITION

The statutory authority permitting other than full and open competition is 41 U.S.C. 253(c)(3) in accordance with:

[X] FAR 6.302-1, only one responsible source and no other supplies and services will satisfy Agency Requirements;

[ ] FAR 6.302-2, Unusual and compelling urgency;

[ ] Other, defined below:

FAR 6.302-3 Industrial mobilization; engineering development or research capability; or expert services.

5. DEMONSTRATE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS:

Given OTC Global Holdings’ dominance as a commodities broker, covering both financial and physical instruments, Commissions staff anticipate the most coverage by depending on EOX data for price and volume discovery at both liquid and non-liquid trading locations and tenors.

Commission's surveillance processes depend on understanding commodities pricing from the physical and financial markets. Currently, there is no other source that provides as much coverage as EOX from which surveillance could gather this proprietary data.

6. SOURCES SOUGHT EFFORTS:

Staff observes no other liquid nationwide market exchanges for over-the-counter trading of physical and financial natural gas and electricity. This is based on observations from market outreach and the trade press. Staff finds no other vendors which provide the coverage that the EOX data provides.

7. DETERMINATION OF FAIR & REASONABLE PRICING:

Staff observes that pricing is in line with data feeds from other third-party data vendors; however, EOX provides significantly more coverage than sources sought.

8. DESCRIPTION OF MARKET RESEARCH CONDUCTED & RESULTS:

Staff observes no other liquid nationwide market exchanges for over-the-counter trading of physical and financial natural gas and electricity. This is based on observations from market outreach and the trade press. Staff finds no other vendors which provide the coverage that EOX data provides.

9. ANY OTHER FACTORS SUPPORTING THE USE OF OTHER THAN FULL AND OPEN

COMPETITION:

Without EOX data, staff are not capable of seeing what traders can see, cannot access and retain vital trade information, and will not have real-time situational awareness of the markets. The Commission's surveillance processes will use this data in market screens and other offices will use data for economic studies. Not gaining this access would prevent Commission staff from obtaining a multi-year times series dataset.

OTHER THAN FULL & OPEN COMPETITION

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN

THE ACQUISITION.

None

11. A STATEMENT OF THE ACTIONS, IF ANY, THE AGENCY MAY TAKE TO REMOVE OR

OVERCOME ANY BARRIERS TO COMPETITION BEFORE ANY SUBSEQUENT ACQUISITION FOR

THE SERVICES REQUIRED:

None

12. CERTIFICATIONS & APPROVALS: (Signatures are required)

Technical & Requirements Certification:

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

Date

Division of Analytics and Surveillance Office of Enforcement Federal Energy Regulatory Commission

Contracting Officer Certification:

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Date Contracting Officer Acquisition Services Division Office of the Executive Director Federal Energy Regulatory Commission

BEATRICE SCOTT Digitally signed by BEATRICE SCOTT Date: 2024.06.18 10:20:23 -04'00'