08._Sole_Source_Justification_-_Draft_Post.pdf

(Draft)Justification for Other than Full and Open Competition Western Area Power Administration

FAR 6.302-1 Sole Source

PR# 17WA121197

1. Identification of the agency and the contracting activity.

Department of Energy, Western Area Power Administration (WAPA), Rocky Mountain Region (RMR), Loveland, Colorado.

2. The nature and/or description of the action being approved.

The Western Area Power Administration (WAPA), Rocky Mountain Region (RMR) plans to contract by means of other than full and open competition due to circumstances described below. This document sets forth the justification and approval for the use of a firm fixed-price, sole source contract for a base period of one year and four (4) one-year options (five year total) with Open Access Technologies International, Inc. (OATI) for Web-Hosted Software Applications and Support utilized by the Operations, and Merchant Divisions of WAPA. This procurement is a renewal of existing services being provided to WAPA Western.

3. A description of the supplies or services required to meet the agency’s needs.

WAPA requires renewal of the existing services which include: 24x7x365 subscription-based electronic tagging (E-Tagging and Reporting Tool), WebTrans with PCM/CCO/SSW/RISS modules, WebOASIS, WebSAS, OATINet, Report Builder, WebOASIS Test Services, FERC Order Impact, WebAccounting, QA Test System, Additional Service Features, WebData, Curtailment Manger, WebCARES Digital Certificates, WebTrader, Report Generator for MTMSS, CISO Bidding Module, MRTU Interface, WebCalc, CAISO Market Scheduling Module, Market Solution Premium Compliance Service, WebCarb Reporting Service and OATINet services.

webTag - E-tagging provides the balancing authorities a reliable approval and agent tagging service and addresses a critical business requirement. It is imperative for business continuity and reliability that Western continues with this subscription uninterrupted.

webTrans automates the management of the Open Access Same Time Information System (OASIS) transactions submitted by the open market customers. WAPA is procuring the use of the OATI webTrans subscription for this purpose. This option does not function without the use of the OATI OASIS subscription.

webTrans webScheduling Module automates the management of scheduling and e-Tag transactions submitted by customers. WAPA is procuring the use of the OATI webTrans webScheduling module subscription for this purpose. This option does not function without the use of the OATI webTrans subscription.

webTrans Curtailment Module automates the reliability management of scheduling and e-Tag transactions submitted by customers. WAPA is procuring the use of the OATI webTrans Curtailment module subscription for this purpose. This option does not function without the use of the OATI webTrans subscription.

webOASIS posts unused capacity and receives transmission purchases from open market via an OASIS. In addition, WAPA is a member of the WesTTrans association of Transmission Providers which requires the use of OATI’s webOASIS subscription.

webData automatically converts the E-tagging data into scheduling data contained within an in-house developed scheduling system. OATI developed a subscription product webData to fulfill this need. This option does not function without the use of OATI E-tagging subscription.

webSAS operates several of the WECC qualified paths and addresses Unscheduled Flow Assessments within WECC. WECC contracted with OATI to develop a tool that would fulfill this need. OATI developed the subscription service named webSAS that provides WECC customers with the ability to implement Unscheduled Flow (USF) reductions based upon the WECC requirements. OATI is the only vendor contracted by WECC to provide this subscription.

Direct Link (OATInet) dedicates communication connections between the hosted subscriptions and their local data center. OATI provides a subscription named OATInet that provides a dedicated private managed connection between its data center and its clients.

Report Builder Module builds reporting calculations based on WAPA business requirements.

The Report Builder module is a sub-component of the webTrans webScheduling module. OATI developed a subscription product, Report Builder, to fulfill this need. This option does not function without the use of OATI webTrans and webTrans webScheduling Module subscription.

WAPA is a member of WestTrans, and OATI has developed an independent OASIS testing environment specifically for WestTrans participants. OATI is the only vendor to supply this subscription service and this service does not function without the OATI webOASIS subscription service.

WAPA is in need of subscription services that adhere to the FERC Order No’s. 676-E and 729.

This subscription service ensures that all integrated subscription services are compliant with these orders. Open Access Technology is the developer of software applications and is the only known source of supply for software support of these proprietary applications.

webTag Tag Reporting is to build reports and query data from the webTagging subscription service. This subscription service provides this functionality and does not function without the webTagging subscription service.

webAccounting with Settlements and Invoicing is used to build custom calculations and custom reports utilizing WAPA meter data, webTrans TSR data, webTrans webScheduling data, and other data from integrated systems. This subscription service provides this functionality.

QA Test System mirrors the production environment of all integrated subscription services procured for both Quality Assurance (QA) and training purposes. This subscription service provides this functionality.

Additional Service Features are services used for WAPA meter data and interfaces with the WebAccounting service. This subscription service provides this functionality.

Curtailment Manger provides Transmission Providers to manage the curtailment of transmission schedules. The module automatically handles OASIS posting obligations required of the Transmission Provider, as specified in applicable FERC regulations and NAESB Business Practice Standards. This subscription service provides this functionality.

WebCARES Digital Certificates provides digital certificates to administer and manage the OATI systems. This subscription service provides this functionality.

WebTrader gives WAPA’s marketers a flexible and comprehensive web-based trading system designed for unique enterprise requirements. It offers unprecedented integration of financial and physical trading with webOASIS, webTag, WebCalc, webSmartTrader and scheduling, into a system.

This subscription service provides this functionality.

Report Generator for MTMSS allows WAPA to create detailed reports with a simple point-and-click user interface in the WebTrader Service. This subscription service provides this functionality.

CISO Bidding Module is used by WAPA for the California ISO (CAISO) that meets the specific requirements of CAISO Scheduling Coordinators. This subscription service provides this

MRTU Interface is used by WAPA for the California ISO (CAISO) that meets the specific requirements of CAISO Scheduling Coordinators. This subscription service provides this

WebCalc is used by WAPA for defining calculation in the WebTrader Service. This subscription service provides this functionality.

CAISO Market Scheduling Module is used by WAPA for the California ISO (CAISO) that meets the specific requirements of CAISO Scheduling Coordinators. This subscription service provides this functionality.

Market Solution Premium Compliance Service is used by WAPA for the California ISO (CAISO) that meets the specific requirements of CAISO Scheduling Coordinators. This subscription service

WebCarb Reporting Service is used by WAPA for the California Greenhouse Gas Annual Reporting that meets the specific requirements of the state of California. This subscription service

These services are already in place and are intended to relieve WAPA of the administrative, development, and maintenance duties associated with North American Energy Standards Board (NAESB) standards for transmitting information regarding every electric power interchange transaction.

All of the services provided must be compliant with Federal Energy Regulatory Committee (FERC), North American Electric Reliability Corporation (NERC) and WAPA Electricity Coordinating Council (WECC) and NAESB regulations and standards. The system must be highly reliable, responsive, and capable of integrating and interacting “real-time” with the utility industry participants’ third party systems and WAPA’s internal systems. In order to facilitate the functionality needed to be compliant with these standards, WAPA is required to use Open Access Technology, Inc.’s (OATI) web-hosted software applications and related support.

4. The statutory authority permitting other than full and open competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. 253(c)(1).

5. A statement demonstrating the unique qualifications of the proposed contractor or the nature of the action requiring the use of the authority.

No other vendors were taken into consideration due to the following:

A. WAPA has been using OATI’s software applications for the past 20 years to facilitate the functionality needed to be compliant with the FERC, NERC, NAESB and WECC standards.

It is imperative for business continuity and reliability that WAPA continues its subscription for these software applications uninterrupted. The various software applications are interdependent and cannot run without the other.

B. All members of WesTTrans, which includes WAPA, are required to use the same OASIS system. OATI is the vendor that hosts and maintains the WesTTrans OASIS; therefore, WAPA is required to use the OATI webOASIS product.

C. All members of WECC are required to use the WECC webSAS tool to mitigate unscheduled flow across qualified transmission paths throughout WECC. WECC selected OATI to develop and host this service. Access to the webSAS interface is only offered by OATI.

D. The integration between the current mission-essential WAPA in-house developed systems and all of the OATI systems utilized by WAPA are connected via the OATInet direct connection. This direct connection will be the communications path utilized to access the OATI suite of services.

WAPA’s internal developed systems and Commercial-off-the Shelf (COTS) software have been fully integrated with OATI’s services, which, without the continued use of this service, WAPA would not be able to perform its Operation and Merchant functions of scheduling to meet WAPA’s firm contract obligations. WAPA has spent significant money, time and resources to integrate these systems with OATI’s services to be compliant with industry standards and practices. It would require approximately 2 years’ worth additional time of six developers and one tester, and cause significant cost to WAPA to integrate these new systems with another vendor’s products, that would not be recovered through competition, not to mention it would disrupt the continuity of the Operation’s and Merchant’s function.

This does not include any customizations or enhancements that may be required of another vendor’s product. The cost of these activities would not likely be recovered through competition. Without these OATI services, the Operation’s and Merchant’s will not be able to perform their contractual obligations with WAPA’s firm power customers to schedule their energy loads.

The only known source of supply is Open Access Technology International, Inc., 3660 Technology Drive NE., Minneapolis, MN 55418.