ESBD_387540_1734731345298_Complete_with_Docusign_Proprietary_Purchase_.pdf

Proprietary Purchase Justification

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This form, or a formal justification on agency letterhead, may be used to document the Proprietary Purchase Justification.

A proprietary purchase is one where the specifications or conditions of the proposed purchase are proprietary to one vendor and do not permit an equivalent product or service to be supplied. The term “proprietary” refers to a product or service that has a distinctive feature or characteristic which is not shared or provided by competing or similar products or services.

When a specification for a proposed purchase is drafted so narrowly that there is only one viable product or one vendor eligible for contract award, the agency must document the rationale for the restrictive specification by placing a written Proprietary Purchase Justification in the procurement file.

For more information, reference the Texas Procurement and Contract Management Guide, Texas Government Code §2155.067, 34 TAC §20.209, and 34 TAC §20.25(b)(45)

Contact Information

Agency

Texas Water Development Board Program/Dept/Division

BRACS/GW/WSC

Contact Name

Connie Beniquez Email

Connie.Beniquez@twdb.texas.gov Phone #

512-475-1712 Purchase Information

Competitive

The specified product or service is available for purchase through more than one vendor e.g., dealers, distributors, resellers, authorized service providers. Examples of competitive proprietary purchases include brand-specific replacement parts for equipment available through multiple Original Equipment Manufacturer authorized dealers and software that a software publisher makes available to the public through several resellers.

XSole Source

The specified product or service is only available for purchase through a single vendor e.g., manufacturer, publisher, service provider. Examples of sole source proprietary purchases include a back issue of a magazine available from only the publisher and an educational conference available from only the conference sponsor.

Proprietary Purchase Justification

Vendor Name

Seismic Exchange Inc.

Requisition Number (if known)

0000003341 Purchase Amount

$150,000.00 NOTE: Purchase amount includes ALL anticipated renewals and extensions

A. Describe the product or service the agency proposes to purchase, and provide a statement regarding the agency's business need and planned use.

Texas Water Development Board (TWDB) is seeking an exemption from public bidding for the purchase of seismic data. The TWDB has authorized a study of the Brackish aquifers in the Yegua- Jackson Formation through Contact #2300012709 which requires the use of seismic data in that region. The study is in accordance with appropriated funds provided by the Texas Legislature for brackish aquifer studies. TWDB plans to use the seismic data to support delineation of brackish aquifers in the Yegua-Jackson Formation, especially their volumes which can be a source of future water for Texas.

Docusign Envelope ID: 473027F1-8973-4C80-A7A3-8C2108E9726E mailto:Connie.Beniquez@twdb.texas.gov

Proprietary Purchase Justification

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B. Explain why the agency specifications for the product or service are written as they are, and why those specifications are necessary to accomplish the agency's goal for the procurement.

The TWDB study of the Yegua-Jackson Formation requires legacy 2-D high-resolution seismic data to ensure that details of the formation’s subsurface structures are captured. High level details are necessary to help us accurately spatially determine the volume of groundwater that exists in the brackish aquifers. Legacy data was specified as a means of cost containment for this project, since newer data as well as 3-D data would have been cost prohibitive.

The data will be in SEG-Y format developed by Society of Exploration Geophysicists and must be read using compatible software which our Contractor possesses. This will ensure seamless integration and prevent additional costs and/or delays associated with data conversion. Moreover, the seismic lines must be proximal to existing key wells in the study information so that cross-correlation of the seismic lines can be conducted with key study wells.

C. State the reason that no other competing products or services will satisfy the need of the agency and provide examples of the technical, practical, or operational risks that would occur if competing products or services are selected. (See Examples of Non- Compliant Proposed Proprietary Purchase Justifications below)

TWDB contractor, Collier Geophysics has extensive experience working with seismic data sets and has given their recommendations to TWDB on suitable seismic lines meeting our requirements to purchase based on their experience with seismic datasets. The proprietary seismic lines held by Seismic Exchange are near the key wells identified by Collier in the study and meet TWDB requirements. Other vendors of seismic data considered included American Geophysical, a reseller with additional costs; Geophysical Pursuit which had insufficient volume and data type; and Schlumberger which had only 3-D data and was cost prohibitive. In addition to being proprietary, Seismic Exchange data are designated as trade secrets. Access to this data requires a license from the vendor, which was already granted to the TWDB on Nov. 10, 2023 through a Supplemental Agreement and Master Licensing Agreement.

Examples of Non-Compliant Proprietary Purchase Justifications

● “Our professionals have identified [vendor's product] as the most durable, safe, and efficient system of its kind.”

● “[The vendor] has claimed their technology is proprietary and we agree.”

● “[Vendor] is the exclusive patent holder of US Patents [X, Y, and Z]. No other manufacturer can legally produce [the product] with the same properties.”

● “Our agency has performed research [on these products]. The manufacturer can provide [a range of products] that will enable [our agency] to [meet our statutory requirement]."

● This vendor is our incumbent and only their products will work with the equipment we already have.

● “Our staff tested [these products] against others, and only [the identified products] that passed our rigorous qualification process were placed on the agency's approved products list. We can only buy products on our approved products list; therefore, these products are proprietary.”

● “The [brand] furniture purchased will be used to provide a comfortable and aesthetically pleasing work environment for employees' working in the office so they may provide customers frequenting the building excellent customer service in a welcoming atmosphere.”

Agency Approval – Signature of an individual to whom signature authority has been properly delegated in the Agency Procurement Plan on file with the Statewide Procurement Division

Agency Approver Signature (REQUIRED) Date (MM/DD/YYYY)

Select...

Printed Name

12/4/2024 Executive Administrator

12/4/2024

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September 27, 2024

Denver * Houston * New Orleans * Tulsa

Texas Water Development Board P-02-195691-0Invoice #:

1700 Congress Avenue Customer #: 125194

Austin, TX 78701 Ref #: 24-0055

Terms: PREPAY

Attn: Olga Bauer

INVOICE FOR SERVICES RENDERED

DESCRIPTION AMOUNT

Requisition Number: #0000002831

This license is contingent upon pre-payment of the charges shown below prior to the delivery of data.

Line# MileageBSP Location PriceESP

Initial License

504.0 1,031.072-117-332 TX-Jasper 30,000.00 15.000 $2,000.00

127.0 390.0G92551-255-06 TX-Grimes, TX-Montgomery 22,000.00 11.000 $2,000.00

237.0 500.0G92583-528-4 TX-Austin, TX-Washington 22,000.00 11.000 $2,000.00

124.0 459.0G92583-528-7 TX-Austin, TX-Waller, TX-Washington

28,000.00 14.000 $2,000.00

113.0 272.0GTO31-1 TX-Jasper, TX-Newton 20,000.00 10.000 $2,000.00

103.0 438.0HE-LW-4 TX-Montgomery 28,000.00 14.000 $2,000.00

75.000 Subtotal - Initial License Mileage 150,000.00

TOTAL DUE SEI USD $150,000.00

Email Remittance:

Routing No:

Account Name:

Account No:

ACH/Wiring Information

Frost Bank

P.O. Box 1315

Houston, TX 77251 acctg@seismicexchange.com

114000093

Seismic Exchange, Inc.

502672677

Correspondence/Remittance Address

Seismic Exchange, Inc

4805 Westway Park Blvd

Houston, TX 77041

(832) 590-5100

Invoicee shall be responsible for any fee(s) charged by the initiating bank for wire transfer or ACH transactions and shall ensure that the full invoiced amount is remitted to Seismic Exchange, Inc.