B08_Attachment_A_Redacted_SSJ.pdf

SOLE SOURCE JUSTIFICATION FOR ACQUISITION UNDER THE

SIMPLIFIED ACQUISITION THRESHOLD

1. Contracting Agency and Activity. The Department of the Interior, United States Geological Survey, plans to contract on a sole source basis. This document sets forth the justification and approval as required by FAR 13.106-1(b)(1).

2. Nature of Action Being Approved.

The United States Geological Survey (USGS), The Geosciences and Environmental Change (GEC) Science Center conducts geologic investigations into the geologic framework of the United States. GEC projects carried out as part of the USGS National Cooperative Geologic Program (NCGMP) require subsurface information that is supplied mainly through borehole data and multichannel reflection seismic data. These data sources are used to determine geologic structure, stratigraphic relationships, and geologic history as they relate to the construction of regional 3D earth models.

To this end, the USGS currently requires a seismic data broker to furnish and deliver two dimensional (2-D) multichannel seismic reflection data from an area of interest (AOI) in the United States mid-continent. This is a new contract to acquire the rights to specific datasets held by the broker. The USGS proposes Seismic Exchange, Inc. (“SEI”) as the proposed awardee.

3. Description of Supplies or Services.

The contractor shall provide the USGS access to its data library of 2-D multichannel seismic reflection data within an area of interest as defined in the original sources sought notice. The seismic data broker is to furnish and deliver two dimensional (2-D) multichannel seismic reflection data according to the description of data, minimum seismic data acquisition parameters, and minimum processing parameters as described in the original sources sought notice. These data are required through the USGS Geosciences and Environmental Change Science Center, by a mapping project funded by the USGS National Cooperative Geologic Program.

4. Estimated Dollar Value.

Estimated dollar value of action

Maximum dollar value of action

Dollar values include (1) a 2D seismic data license, priced on a per-mile basis, (2) the Final Processed Data version, priced on a per-mile basis, (3) the Unprocessed Field Data version, priced on a per-mile basis, and (4) any additional costs for electronic media to transfer the data to the USGS.

5. Statutory Authority. The proposed action may be awarded on a sole source basis under the authority of FAR 13.106-1(b)(1) – only one source reasonably available.

6. Rationale Supporting Use of Citation in No. 5.

a. 2-D multichannel seismic reflection data are not generally available through multiple outlets.

These are one-of-a-kind scientific data acquired and processed at great expense. Typically, data are 100%-owned and/or controlled by a specific seismic data brokerage and available only through them. Duplicates or substitutes for these data are unavailable through other sources.

b. The USGS has interest in specific 2-D multichannel seismic reflection data to support subsurface geologic interpretations and to complement five seismic lines to which the USGS currently holds seismic rights to, as described in the original sources sought notice. Seismic Exchange, Inc. (“SEI”) is the only seismic data broker who hold the rights to the seismic lines of interest. These data are not available from another source. Data held by other seismic brokers are along lines many miles away from the interest area and are not acceptable substitutes.

7. Other Information.

An explanation of seismic reflection data and the licensing of such data for use is necessary to provide background for this procurement.

Seismic reflection data: The objective of this procurement is to obtain a license to speculative, multi-client (non-exclusive), 2-D digital seismic reflection data. Companies that specialize in the collection of seismic data commonly identify regions of interest to the oil industry and design speculative seismic surveys. The seismic company bears the entire cost of designing, collecting, processing, and marketing the seismic data.

After data are collected and processed, they are made available for a fee to any organization that has interest in the region, and the data can be acquired either as individual seismic lines or as an entire set of seismic lines. The right to use the data is transferred as a license, and the license fee typically is set as a per-mile (or per-kilometer) charge. Speculative seismic data are considered multi-client, or non-exclusive, because multiple organizations may purchase a license to the same data. However, the data are considered confidential and may not be shared with parties outside the licensing organization.

Because the seismic data collected by a specific company are exclusive to that company, no two companies offer for licensing the same data. Therefore, a number of parameters must be considered in selecting seismic data for licensing, including:

(i) Location - the seismic data must be located in areas pertinent to the work to be conducted.

(ii) Line orientation - the seismic data must be oriented in specific geographic coordinates to perform the work to be conducted.

(iii) Line length - longer continuous seismic lines typically are more useful for mapping subsurface rock layers than shorter seismic lines.

(iv) Vintage -typically newer data is better than older data because of incremental improvements that have been made in data collection and processing.

(v) Energy source - seismic data are collected by introducing sound waves into the earth using vibroseis (large vehicles with hydraulic pads that vibrate), compressed air (when data are collected from water surface), or dynamite; the energy source influences the quality of data obtained.

(vi) Fold- this is a measure of the number of seismic receivers (instruments that collect the sound waves that are reflected off of rock layers and return to the earth's surface) used to produce a single seismic trace in the data; larger fold data typically are better quality. This parameter typically is related to vintage, as newer data usually are of greater fold than older data.

(vii) Reprocessed data - the quality of older seismic data commonly is improved by "reprocessing," which involves the application of advanced computer algorithms to improve the resolution of the data.

a. SEI offers 2D seismic data licenses in areas required by the USGS.

8. The Efforts to Identify Additional Sources Including the Market Research Conducted.

GEC Science Center’s Market Research: All seismic vendors known to the USGS to offer data for license in the area of interest (AOI) in the United States mid-continent were evaluated with regards to whether data are available in specific areas required for our work. Each company serves an interactive digital map on its web site plus downloadable shapefiles or pdf maps showing locations of 2D seismic data. SEI was the only vendor with data available in specific areas required for our work.

CO’s Market Research: The Contracting Officer issued a sources sought notice via SAM.gov (Contract Opportunities) for seven (7) days for market research purposes and did not receive any responses.

9. Future Plans to Permit Competition.

There are very few seismic companies that own data-for-license in the area of interest (AOI) in the United States mid-continent, and virtually all data are in unique locations. Should future requirements for similar needs materialize, competition will be sought to the maximum extent practical after market research is conducted.

10. Recommendation and Certification from Program Office

Based on the above, I recommend this acquisition be conducted on a sole source basis and certify the above statements are true and accurate.

The U.S. Geological Survey (USGS) considers employee signatures to be Personal Protected Information, and therefore all employee signatures have been redacted. By posting this document, the Contracting Officer attests all appropriate signatures have been obtained.