JA for Stichting Joint Impact Model_Redacted.pdf

United States International Development Finance Corporation Justification & Approval

Less Than the Simplified Acquisition Threshold (SAT) FAR 13.106-1(b)(1)

1. Identification of the agency and the contracting activity.

The United States Development Finance Corporation (DFC) Office of Acquisitions 100 New York Avenue, N.W.

Washington, DC 20527

2. Description of supply or service required to meet the agency’s needs.

DFC requires a subscription-based environmental and economic impact modeling (EEIM) tool which will assist agency staff to estimate critical development impact metrics. The tool will be accessible to all DFC staff interested in the climate, economic, and labor impact of Agency investments. DFC staff require such a tool to assist with the following core business practices:

estimating impact of potential DFC transactions during pre-investment due diligence;

monitoring project implementation progress against agreed criteria; evaluating the post-investment impact of DFC’s financing; facilitating the reporting of data to DFC senior management, the interagency, and international bodies.

The contractor shall provide an online service that performs the following functionality:

Access to global economic and environmental input/output datasets. These datasets must come from authoritative, globally focused institutions, such as the International Labor Organization (ILO), International Energy Agency (IEA), and International Monetary Fund (IMF).

Online interface to upload data sets for assessment using the model with a Microsoft Excel-based template for uploading data.

Automated generation of modeled results provided to the user following the upload of data to the online interface.

Unlimited access for any DFC users – no cap on number of users or number of data sets run within the license period.

Impact indicators must include:

Employment: all working aged people (15 years and older) who are engaged in any activity to produce goods or provide services for pay or profit, expressed in number of people. Employment is further broken down in:

o Female employment: all working age females (15 years and older) engaged in any activity to produce goods or provide services for pay or profit.

o Formal employment: all working aged people (15 years and older) hired by an employer under an established working agreement.

o Informal employment: all working aged people (15 years and older) working for an organization despite not being provided with a working agreement.

o Youth employment: all people, regardless of gender, between 15 and 25 years old who are engaged in any activity to produce goods or provide services for pay or profit.

Value added: the sum of wages, taxes and savings, equivalent to gross domestic product, expressed in monetary value.

o Wages (salaries): value of net wages paid to all full-time and part-time employees of the organization during the reporting period.

o Taxes: all transfers to the government made by a client over the reporting period.

o Savings (profit): value of the organization's net earnings (profit).

Green House Gas (GHG) emissions: the sum of CO2 and non-CO2 emissions, expressed in CO2-eq:

o CO2 emissions: CO2 emitted from the combustion of fossil fuels.

o Non-CO2 emissions: methane (CH4), nitrous oxide (N2O) and fluorinated gases (F-gases) emitted.

The scope of the impact indicators must include the following:

Direct: impacts at the client company/ project.

Supply chain: impacts at the client company/ project’s suppliers and their suppliers.

Induced: impacts associated with the spending of wages earned by employees of the client company/ project, its suppliers and their suppliers.

Finance enabled: impacts at companies, suppliers of companies and their suppliers associated with the financial intermediary’s lending.

Power enabled: impacts associated with the additional output generated by companies using the additional power generated by the client project, as well as by the companies’ supply chain.

The tool must have the ability to enter data into sectoral mapping lists for NACE (levels 1-4), ISIC (levels 1-4), GICS (levels 1-3), and GTAP sectors.

The model must be updated at least once per year.

The model data sets uploaded for assessment must be secure and not stored. All communications between the online interface and the server must be securely encrypted. The tool must provide the physical security measures at least equivalent to the following:

Continuous surveillance at data center;

Secure entrance using biometric identification;

Secured Server unit;

ISO 270001 and NEN 7510 certification.

3. Rationale or circumstances for limiting competition.

The Stichting Joint Impact Model is the only vendor that offers Joint Impact Model (JIM) subscription. JIM subscription is the only Economic & Environmental Impact Model (EEIM) subscription in the marketplace that can fulfill every aspect of the current requirement to include employment metrics, economic value added, and Green House Gas emissions. Their subscription is used by DFC’s peer institutions, co-investors, and clients. DFC’s use of the same tools as our co-investors and clients ensures harmonization and standardization so that DFC can compare impact data with our peer institutions and client base. Alternative options lack automation that DFC requires. Without the automated functionality, current staff in the Office of Development Policy (ODP) would need to add on a significant amount of labor hours to achieve the same result, which would lead to additional bottlenecks in clearance and monitoring processes, affecting the ODP team to make effective decision to fulfill DFC’s mission.

Furthermore, without an automated output feature, DFC may incur additional costs to procure statistical analysis software (e.g., Stata, JMP, SPSS), which would be necessary to produce modeled results using the datasets supplied by alternative providers. A tool with an automated interface saves both staff time and budget resources.

4. Description of Market Research Conducted OR Statement of Reason Market Research Not Conducted.

Market Research was conducted, no other sources were found that provided the data needed to fulfill DFC’s mission. Stichting Joint Impact Model is the only qualified vendor. Other options have serious drawbacks: Exiobase does not allow for modeling of multiple metric types (i.e., only environmental metrics); EORA and OECD Inter-Country Input–Output database lack automated functionality, meaning that they only supply dataset(s) but that DFC staff would have to perform the statistical analysis to produce modeled data, further impacting staff time and slowing clearance and monitoring processes in ODP.

5. Estimated price, including all options, if applicable.

BASE YEAR SUBTOTAL: $16,200.00

OPTION YEAR 1 SUBTOTAL: $17,026.20

OPTION YEAR 2 SUBTOTAL: $17,894.54

OPTION YEAR 3 SUBTOTAL: $18,807.16

PROCUREMENT TOTAL: $69,927.90

6. Recommended source(s)

Stichting Joint Impact Model

7. Contracting Officer Certification.

I have reviewed this justification and certify it to be accurate and complete to the best of my knowledge and belief.

Jason Jamula Contracting Officer

JASON

JAMULA

Digitally signed by

JASON JAMULA

Date: 2024.08.12 21:00:49 -04'00'