Bloomberg Fully Signed SSJ_16PBGC26Q0007.pdf

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1. AGENCY AND CONTRACTING ACTIVITY

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

3. DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY’S NEED

4. STATUTORY AUTHORITY PERMITTING OTHER THAN FULL AND OPEN COMPETITION

5. DEMONSTRATION THAT THE CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE NATURE OF THE

ACQUISITION REQUIRES THE USE OF THE AUTHORITY CITED

JUSTIFICATION FOR OTHER THAN

FULL AND OPEN COMPETITION

(FOR OPEN MARKET PROCUREMENTS ABOVE SAT)

Contracting Organization: Pension Benefit Guaranty Corporation (PBGC) / Procurement Department (PD)

Requisition Number: RQ-23-26-000018

Procurement Action Type: Follow-on Contract

Contract Number: TBD

Contractor Name or Brand Name Product: Bloomberg L.P.

Supplies or services to be procured:

The PBGC Investment Portfolio evaluates the individual investment mandates by comparing the investment returns of the portfolios against appropriate investment benchmarks over different time periods. These benchmarks are codified in the investment guidelines with each manager and were determined by the Corporate Investment Department ("CID") to be appropriate for each investment mandate. A significant number of fixed income mandates utilize Bloomberg, LP ("Bloomberg") as the benchmark provider. The current contract with Bloomberg ends in January 2026 and CID continues to require access to these benchmarks.

The period of performance is twelve months. The estimated value of the prospective contract is reflected in the IGCE.

Total Estimated Value: $57,180.48

Only one responsible source and no other supplies or services will satisfy agency requirements (41 USC § 3304(a)(1), as implemented by FAR 6.302.1).

Expert Services (41 USC § 3304(a)(3) or 41 USC § 1901, as implemented by FAR 6.302-3).

a. Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements:

CID recommends that the procurement be pursued on a sole-source basis as the market research findings indicate there is only one company (Bloomberg) capable of providing the required service and costs are deemed reasonable.

Note - this is a commercial requirement under FAR 12 & 13, and this utilizing procedures specified in FAR 13.500.

The PBGC Investment Portfolio evaluates the individual investment mandates by comparing the investment returns of the portfolios against appropriate investment benchmarks over different time periods. These benchmarks are codified in the investment guidelines with each manager and were determined by the Corporate Investment Department to be

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7. DETERMINATION BY THE CONTRACTING OFFICER THAT THE ANTICIPATED COST TO THE

GOVERNMENT WILL BE FAIR AND REASONABLE

8. DESCRIPTION OF THE MARKET RESEARCH CONDUCTED AND THE RESULTS, OR A STATEMENT

OF THE REASON MARKET RESEARCH WAS NOT CONDUCTED

9. OTHER FACTS SUPPORTING THE USE OF SOLE SOURCE

10. LISTING OF SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE ACQUISITION appropriate for each investment mandate. A change to a different benchmark could be inappropriate for a specific mandate, would require a change to the investment guidelines, result in comparative evaluation that may not match the investment mandate, cause transaction costs as the mandate would need to be brought in line with the new benchmark, and certain other impacts.

The overwhelming majority of benchmarks utilized on the fixed income portion of the PBGC Investment Portfolio are provided by Bloomberg L.P. ("Bloomberg") and there are no other third parties that provide this data. Bloomberg is the sole creator of Bloomberg indexes and is Bloomberg's intellectual property. Therefore, Bloomberg is the sole vendor. Based on the existing contract, the estimated one year cost of the contract is approximately $57,180.48. This is based on the existing cost for each individual CLIN.

The market research found that Bloomberg is the only source available that can satisfy these requirements as the indices and data produced via Bloomberg's product are Bloomberg's intellectual property. Bloomberg does not license third party vendors to distribute its data and indices. If other vendors emerge over the performance period of the instant acquisition who can produce the same type of data at the level and quality of Bloomberg's product, the program office will note them and research those vendors when market research is completed for this effort again.

A determination that the cost/price is fair and reasonable shall be made before the contract action is issued. Actions to be taken:

The contracting officer will utilize procedures set forth in FAR 13.106-3 to determine the negotiated price is fair and reasonable, including the following: 1) Comparison of proposed prices to historical prices; 2) current price lists/catalog; and 3) comparison to the IGCE.

As outlined in section 5, the PBGC Investment Portfolio evaluates individual investments based on PBGC mandates.

It is these mandates combined with the required indexes for the mandates that Bloomberg alone and no other vendor can provide, evidenced by market research, and based on Bloomberg not having any authorized resellers of the indexes, that this requirement is deemed to be a sole source.

NA

NA

6. DESCRIPTION OF EFFORTS MADE TO ENSURE THAT QUOTATIONS OR OFFERS ARE SOLICITED

FROM AS MANY POTENTIAL SOURCES AS PRACTICABLE

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11. STATEMENT OF THE ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY

BARRIERS TO COMPETITION BEFORE MAKING ANY SUBSEQUENT ACQUISITION FOR THE

SUPPLIES OR SERVICES REQUIRED

13. CONTRACTING OFFICER’S REVIEW OR APPROVAL

No actions can be taken prior to this acquisition to remove barriers to competition as Bloomberg is the sole provider and does not license third party vendors to distribute its services. If PBGC is not able to establish a contract with Bloomberg, CID would no longer have access to the benchmarks effective the end of the current Bloomberg contract.

This would be highly disruptive and also have cost implications. CID would need to find other suitable benchmarks and establish licensing arrangements with those entities, which would likely result in similar sole source contracts.

This is an industry wide issue in which benchmark providers are increasingly seeking to monetize and protect the intellectual property of its data, and not specific to Bloomberg. Investment guidelines would need to be changed with each impacted manager. Portfolios would need to be rebalanced, at a cost, to take into account the new benchmark.

There would be numerous other ancillary implications that would make the inability to establish a contract with Bloomberg adversely impactful to CID, its investment managers, as well as the entire PBGC portfolio.

I hereby certify that this Justification, and all supporting data, are accurate and complete to the best of my knowledge and belief.

Chirag Patel Program Office/COR

Signature Date

I hereby certify that this Justification, and all supporting data, are accurate and complete to the best of my knowledge and belief.

Justification does not exceed $700K - I approve this Justification.

Justification exceeds $700K

Marius Morgan Contracting Officer

Date

Signature

12. TECHNICAL OR REQUIREMENTS PERSONNEL’S CERTIFICATION