JOFOC_UPLAN_Dec_2015_FBO.pdf

Justification for Other than Full and Open Competition RTM - Procurement Services/EI-10

Requiring Organization: EI-30

PR #: 16EI000047

1. Identification of Agency/Contracting Activity

The Office of Energy Analysis (OEA, EI-30) in the Energy Information Administration (EIA) plans to renew a three (3)-user license for the 1) UPLAN Network Power Model (UPLAN-NPM)/ market simulation model and 2) Plato Data Model [zonal database for the Eastern Interconnection, Western Electricity Coordinating Council (WECC) and Electric Reliability Council of Texas (ERCOT)]. This document sets forth the justification and approval for the use of one of the exceptions to full and open competition allowed under the Competition in Contracting Act of 1984 (CICA).

2. Nature and/or Description of the Action Being Approved

This is a sole-source action to purchase the UPLAN-NPM market simulation model with zonal database.

Name and address of vendor desired:

LCG Consulting Attn: Julie Chien 4962 El Camino Real, Suite 112 Los Altos, CA 94022, U.S.A.

Tel: +1.650.962.9670x110 Fax: +1.650-962-9615 E-Mail: julie.chien@energyonline.com url: www.energyonline.com

DUNS #: 148221989 Cage Code: 5BRW6

Sponsoring program office:

U.S. Department of Energy, U.S. Energy Information Administration, Office of the Assistant Administrator for Energy Analysis, Office of Electricity, Coal, Nuclear, and Renewables Energy Analysis. Subject Matter Experts: Chris Namovicz, Tyler Hodge and Laura Martin; OEA Contract Officer Representative: Stephen E. Calopedis.

3. Description of Supplies/Services to be acquired

UPLAN-NPM is a production cost simulation model that can be used to perform detailed analysis of generator unit commitment, economic dispatch and wholesale pricing in United States electricity markets. EIA staff plans to use UPLAN-NPM for scenario analysis, discussion papers and today-in-energy (TIE) analysis, and to evaluate UPLAN-NPM forecasts for potential future incorporation in the Short Term Energy Outlook (STEO) for electricity generation modeling.

For more information, see: http://www.energyonline.com/Products/Uplane.aspx.

mailto:julie.chien@energyonline.com http://www.energyonline.com/ http://www.energyonline.com/Products/Uplane.aspx

The Period of Performance is: January 15, 2016-January 14, 2017.

4. Cite the Specific Exception of the Act Allowing this Action

This sole source contract under the authority of 41 U.S.C. 3304(a)(1) and FAR 6.302-1(a)(2)(ii)(B), only one responsible source and no other supplies or services will satisfy any agency requirements.

5. Demonstrate that the Proposed Contractors Unique Qualifications or the Nature of the

Acquisition Requires Use of the Authority Cited

LCG Consulting is the vendor for the UPLAN-NPM model. The Electricity Analysis team staff conducted a scoping study of production cost simulation models in 2013, and decided that the other competing models were less sufficient than UPLAN-NPM. UPLAN best fulfilled the OEA team modeling needs. Electricity Analysis team staff subsequently evaluated the UPLAN-NPM model between January, 2014 and May, 2014. The UPLAN-NPM model was determined a potentially valuable tool for performing scenario analysis on the electricity sector and for potential incorporation into the Short Term Energy Outlook process. LCG Consulting is the single vendor that develops and licenses the UPLAN suite of models and is the sole source for UPLAN software maintenance and technical support services. LCG Consulting is also the single vendor that develops and licenses the PLATO regional electric system databases and the sole source for PLATO Data Model update and technical support services.

Furthermore, EIA has spent substantial time and effort developing data sets and model structures specifically for use in the UPLAN-NPM model. Use of an alternative model would require that EIA staff train on a new software platform, and that they then spend substantial time, effort, and government resources re-creating, re-formatting, and testing data sets and model structures to conform to the new model platform. Use of the UPLAN-NPM model is the only alternative which does not require this additional, time consuming, non-cost effective effort.

6. Unique Qualifications of the Proposed Contractor

LCG Consulting is the single vendor that develops and licenses the UPLAN suite of models and is the sole source for UPLAN software maintenance and technical support services. LCG Consulting is also the single vendor that develops and licenses the PLATO regional electric system databases and the sole source for PLATO Data Model update and technical support services. EIA has developed data and model structures that are specific to the UPLAN-NPM model that would need to be substantially revised and re-evaluated for use in any other model platform. In addition to familiarity advantages, staff is not aware of any other production cost simulation model that provides the full range of features contained within UPLAN, including the ability to optimize across hydro systems such as the Columbia River system, among others.

7. Anticipated Dollar value of the Proposed

The estimated cost of a three-user license for UPLAN –NPM and Plato Data Model, with zonal database for WECC, ERCOT and the Eastern Interconnection is $140,000. The dollar value estimate is based on historical information/price details and based on prior experience with similar modeling software.

8. Market Survey and Results

A market survey was performed in 2013 by Electricity Analysis Team staff. The following competing models were evaluated to determine whether any other models could also meet OEA modeling needs:

• Ventyx Market Power

• PLEXOS Integrated Energy Model

• EPIS AuroraXMP

After meeting with representatives from the three models, the Electricity Analysis team determined that these models were less sufficient than UPLAN-NPM. UPLAN-NPM best fulfilled OEA team modeling needs. Specifically, the UPLAN-NPM package stood out for the following reasons:

• UPLAN’s model structure was more robust than some of the others

• UPLAN’s default database was easiest to update with EIA data

• UPLAN’s interface was most user-friendly

• None of the other production cost simulation models provide the full range of features contained within UPLAN, including the ability to optimize across hydro systems such as the Columbia River system, among others.

It was therefore determined that the UPLAN model was the only currently existing model that can satisfy OEA modeling needs.

9. Other Facts Supporting Use of other than Full and Open Competition

LCG Consulting provided timely product support throughout the evaluation period as well as during the initial license period in FY2015. In addition to developing a process for incorporating UPLAN- NPM model results into EIA’s Short Term Energy Outlook (STEO) process, Electricity Analysis Team staff have initiated and/or completed several analyses using UPLAN-NPM and license renewal will ensure continuity with EIA’s processes.

10. Other Sources Expressing Written Interest in the Requirement None

11. Potential Actions by the Agency to remove/Overcome barriers to Competition: State What Actions Will be Taken to Assure Competition

After using the UPLAN-NPM during the initial license period staff was pleased with the performance of the software and the support provided by LCG Consulting and has concluded that retention of this software will allow EIA to seamlessly perform its analyses and further refine the use of UPLAN-NPM into its modeling process. Consideration of alternative model platforms must account for the substantial time and effort that EIA has already spent both learning and developing model-specific data and model structure as well as any future feature enhancements in this class of model that may increase the attractiveness of other models.

Because of the substantial resource commitment involved with learning and operating this model, EIA must ensure that any future competition to provide this software to EIA does not create significant additional burden on the government to periodically re-learn and re-code the model if such an effort is not supported by any incremental value provided by the alternatives.

CERTIFICATION:

The information contained in this Justification for other than Full and Open Competition is certified accurate and complete to the best of my knowledge and belief.

Acquisition Initiator:

STEPHEN

CALOPEDIS

Digitally signed by STEPHEN CALOPEDIS DN: c=US, o=U.S. Government, ou=Department of Energy, cn=STEPHEN CALOPEDIS, 0.9.2342.19200300.100.1.1=89001000468249 Date: 2016.01.05 11:41:21 -05'00'

Stephen E. Calopedis Date Contracting Officer’s Representative Office of Energy Analysis Quality Assurance and Budget Management Team U.S. Energy Information Administration

Contract Specialist:

Digitally signed by David J. Lione DN: c=us, o=u.s. government, ou=department of energy, ou=Energy IT Services, ou=Energy Information Administration, ou=People, cn=David J.

Lione

Date: 2016.01.05 13:53:37 -05'00'

David Lione Date Contract Specialist (CONTRACTOR SUPPORT) Office of Planning, Budgeting, Procurement, and Evaluation Office of Resource and Technology Management

Contracting Officer:

Digitally signed by Lolita Neal DN: c=us, o=u.s. government, ou=department of energy, ou=Energy IT Services, ou=Energy Information Administration, ou=People, cn=Lolita Neal Date: 2016.01.06 09:17:39 -05'00'

Lolita Neal Date Contracting Officer Office of Planning, Budgeting, Procurement, and Evaluation Office of Resource and Technology Management

Team Leader:

NADINE

RAFAELS

Digitally signed by NADINE RAFAELS DN: c=US, o=U.S. Government, ou=Department of Energy, cn=NADINE RAFAELS, 0.9.2342.19200300.100.1.1=89001003021658 Date: 2016.01.14 14:31:53 -05'00'

Nadine Rafaels Date Team Leader/Contracting Officer Office of Planning, Budgeting, Procurement, and Evaluation Office of Resource and Technology Management U.S. Energy Information Administration

David J. Lione

Lolita Neal