CRSP_-_Sole_Source_Justification.pdf

Form # USPTO-OP-026.v1.0 (12/2015) Page 1 of 4

SOLE SOURCE JUSTIFICATION (SSJ)

(FAR 13.501)

Program Office: Office of Policy and

International Affairs Program Office

POC:

Julie Ables Chapin

Title of Procurement:

Center for Research in Security Prices Subscription

Contracting Officer:

Corey V. Forshee

Contracting Activity:

USPTO Office of Procurement

Contracting Officer Phone:

(571) 272-6721 PR Number: 147P1601546

1. Description of the Action

The United States Patent and Trademark Office (USPTO), Office of Policy and International Affairs, Office of the Chief Economist (OCE), has a requirement for economic research. The OCE requires access to business, financial, economic, and marketing data through a self-managed service with centralized access, a high volume of cross-disciplinary data, flexibility of delivery including computing cloud access, and orientation toward academic research. In an effort to obtain access to this information, OCE is seeking to procure a subscription to the Center for Research in Security Prices (CRSP) US Stock Database and CRSP/Compustat Merged Database.

2. Description of the Supplies/Services

The CRSP US Stock Database contains daily and monthly market and corporate action data for securities with primary listings on the NYSE, NYSE MKT, NASDAQ, and Arca exchanges and include CRSP broad market indexes. CRSP databases are characterized by their comprehensive corporate action information and highly accurate total return calculations.

The CRSP/Compustat Merged (CCM) Database provides CRSP and Compustat subscribers the ability to access CRSP’s stock data and Compustat’s Xpressfeed fundamental data within a single linked database. The CRSPLink® maps complex relationships over time between CRSP and Compustat company and security permanent identifiers. The level of accuracy is superior to that found when linking by other methods, such as by CUSIP* or Ticker.

The anticipated base period of each subscription is 30 September 2016 through 29 September 2017.

Additionally, four (4) subsequent 12-month subscriptions will be acquired; spanning from 30 September 2017 through 29 September 2021.

3. Statutory Authority

This action is being executed under the procedures in FAR subpart 13.5, used in accordance with 41 U.S.C. 1901 (Simplified Acquisition Procedures).

4. Unique Vendor Qualifications or Nature of the Acquisition

The CRSP, a research center at the Booth School of Business of The University of Chicago, maintains the most comprehensive collection of security price, return, and volume data for the NYSE, AMEX and NASDAQ stock markets. For more than 55 years CRSP has maintained the level of quality and industry standards set in the formation of CRSP. With a staff of nearly 80 professionals, CRSP continues its commitment to providing research data for the most rigorous tests in academic research, and in backtesting applications by practitioners.

Form # USPTO-OP-026.v1.0 (12/2015) Page 2 of 4

Today, nearly 470 leading academic institutions in 35 countries rely on CRSP data for academic research and to support classroom instructions. Commercial subscribers of CRSP include the leading asset management firms, hedge funds, mutual funds, insurance, pension funds and endowments. In the government segment, CRSP historical data is relied on by researchers in regulatory agencies, Federal Reserve Banks and other governmental entities.

CRSP data contains security-level historical descriptive information and market data on more than 27,000 stocks (inactive and active companies) from the NYSE, NYSE MKT, NASDAQ, and Arca exchanges. CRSP developed a unique permanent security-level identification number, called PERMNO. Together with PERMCO, CRSP unique and permanent company identification number, CRSP can identify all NYSE, ARCA, NYSE MKT, and NASDAQ companies and their share classes. CRSP also provides complete name history, all historical Committee on Uniform Security Identification Procedures (CUSIPs), Tickers, Standard Industrial Classifications (SICs), share classes codes, exchange codes, and security delisting information. Unlike CUSIP or ticker, CRSP PERMNO and PERMCO identifiers are permanent. That means that once the identifier is assigned, it is never reassigned. This allows for extremely accurate historical analysis because CRSP identifiers track any and all changes over time in the issues of a company, in its name, CUSIP, ticker, exchange or other company identifiers.

5. Efforts to solicit as many potential sources as possible

A Sources Sought Notice was posted, from 26 August 2016 to 5 September 2016, on FedBizOpps.Gov; see attached documents for details. The objective of this notice was to unearth businesses capable of providing a CRSP or equivalent database subscription. Despite being posted for eleven days, not a single vendor responded to the Sources Sought Notice.

Additionally, a comprehensive search of the internet failed to discern any product comparable to that of CRSP.

Furthermore, Rachanna Haffner (Sr. Account Manager, CRSP) asserted in writing that The Center for Research in Security Prices at The University of Chicago is the sole source to purchase the CRSP platform; see attached document for details.

6. Determination by the Contracting Officer that anticipated cost will be fair and reasonable

The anticipated cost of this acquisition will be fair and reasonable as evidenced by the signature of the Contracting Officer. Detailed documentation and justification of price reasonableness will be disclosed in the Acquisition Form Documentation (AFD) to be prepared upon completion of negotiations.

7. Market Research

A comprehensive search of the internet failed to discern products comparable to that of CRSP.

Additionally, The University of Chicago is the sole supplier of CRSP data products.

8. Other Facts Supporting the Justification

OCE currently has subscriptions to the CRSP US Stock Database and CCM Database. Employees are trained and proficient in the functionality of these databases. Additionally, countless reports and documents were developed utilizing data derived from them. The acquisition of other products would require further training and reproduction of reports/documents.

Form # USPTO-OP-026.v1.0 (12/2015) Page 3 of 4

9. Listing of sources that expressed interest in writing

The University of Chicago

10. Actions to remove or overcome barriers to competition

Prior to exercising option periods market research will be accomplished to discern if comparable products have been make available to fulfill

11. Contracting Officer’s certification

The contracting officer’s signature on the signature page evidences that he/she has determined this document to be both accurate and complete to the best of his/her knowledge and belief.

12. Program Office certification of completeness and accuracy

As evidenced by their signatures on the signature page, the technical and/or requirements personnel have certified that any supporting data contained herein which is their responsibility are both accurate and complete.

13. Approving Official determination

The approving official’s signature on the signature page evidences review and approval as required by 13.501(a)(2).

Form # USPTO-OP-026.v1.0 (12/2015) Page 4 of 4

SOLE SOURCE JUSTIFICATION (SSJ)

COORDINATION AND APPROVAL PAGE

(<$700,000)

Contracting Activity: USPTO Office of Procurement

Purchase Request Number:

147P1601546

Program Name:

Center for Research in Security Prices Subscription

Estimated Price of the Order (w/options):

$191,886.37

Authority:

FAR 13.501

Type Determination:

Individual

Concurrence:

Program Office Representative: ____________________________ 09/12/2016

Julie Ables Chapin Date Signed Contracting Officer Representative

Approval:

Contracting Officer: ____________________________ ______________ Corey V. Forshee Date Signed

Contracting Officer

Attachments:

1. Sources Sought Posting

2. Sources Sought Posting Confirmation

3. Letter from Rachanna Haffner (Sr. Account Manager, CRSP)