Attachment 2 - Sole Source Justification_US Economic Service.pdf

JUSTIFICATION FOR

OTHER THAN FULL & OPEN COMPETITION

IHS Markit, Inc., US Economic Service Long Term & Capital Cost Service Subscription

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 888 First Street, NE Washington, DC 20426

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

It is the intent of the Office of Administrative Litigation (OAL) to obtain US Economic Service Long & Capital Cost Service subscription for the aforementioned location.

The basis for limiting the sources for this acquisition is that this economic and energy data is required by the Commission for specific source for credit ratings and related company research is required to determine nominal and real rate of return of equity figures.

3. DESCRIPTION OF REQUIREMENT:

In accordance with agency objectives, the government has a need to procure subscription services to obtain economic and energy information. OAL financial analysts obtain economic data such as inflation rates and gross domestic product figures. This information is essential in determining nominal and real rate of return on equity figures used in oil pipeline cases set for hearing before the Commission. The estimated dollar value of this procurement is $62,389.99 including base & four options years.

4. STATUTORY AUTHORITY:

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:

IHS Markit (now part of S&P Global) is a reputable, trusted source of data. The subscription includes short-, mid- and long-term US economic growth projections. The forecasts include energy prices, production and usage, GDP expenditure, volume and prices; business investment by sector, construction data, prices and wages, financial market indicators, industrial production by sector, employment data, and productivity and labor costs, all used in some form by OAL analysts. The subscription also provides financial sector forecast including Federal Reserve policy, economic and inflation trends, equity and credit markets, treasury yield curves, money and capital market rates, and cost of funds. Finally, the subscription provides executive summaries and data modeling tools.

6. SOURCES SOUGHT EFFORTS:

Some of the data provided can be obtained in some form (not necessarily the forecast) by researching and accessing multiple sources. However, the forecasting model used is proprietary and not available elsewhere. This is a source of data trusted by OAL and the Commission and is used by the analysts to support positions presented to the Commission in testimony and in settlements. In addition, the source is trusted by outside parties participating in cases set for hearing.

7. DETERMINATION OF FAIR & REASONABLE PRICING:

OAL has relied on this subscription for many years to support testimony. Historically IHS Markit’s pricing has remained very reasonable.

8. DESCRIPTION OF MARKET RESEARCH CONDUCTED & RESULTS:

Staff review determined that no other options were commercially available. IHS Global Markit is the sole source and provider of forecasts and analyses of commodity prices and wages by industry and therefore is not available without a license from IHS Global Markit.

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

COMPETITION:

If the current services are not renewed, the OAL analysts would need to research multiple sources to obtain some aspect of the data that would have otherwise been available, but potentially not all, and potentially not in the form needed. Valuable time will be spent accessing multiple alternative sources, reducing efficiency. In addition, since some of the data and forecasts are not available in the specific form provided with the subscription and are proprietary, OAL may not be able to provide to the Commission a complete, comprehensive recommendation, that otherwise could be provided by continued use of this subscription. As previously stated, this is a trusted source of data and projections used by the Commission and outside parties.

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.

Insert Name Date

(Insert Title & Department)

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