Justification_Redacted_1.pdf

Solicitation 140D0426Q0610

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (JOFOC)

FOR COMMERCIAL PRODUCTS/SERVICES OVER THE SIMPLIFIED

ACQUISITION THRESHOLD (SAT) USING SIMPLIFIED PROCEDURES

AUTHORITY: Revolutionary FAR Overhaul (RFO) 12.102(b) and 41 U.S.C. 1901

1. Identification of the agency and the contracting activity, and specific Justification for Other than Full and Open

Competition.

This document is a Justification for Other than Full and Open Competition for the Department of the Interior (DOI), Interior Business Center (IBC), Acquisition Services Directorate (AQD), Division 5, Branch 5 on behalf of the Office of Natural Resources Revenue (ONRR).

2. Nature and/or description of the action being approved.

This is a follow on requirement, sole source purchase order for the Department of Interior (DOI), Office of Natural Resources Revenue (ONRR), for reports on crude oil and coal markets in the US Gulf coast, midcontinent, west coast, Canada and Latin America from Argus Media Inc., 2929 Allen Parkway, Suite 700, Houston, TX 77019.

3. A description of supplies or services required to meet (including the estimated value).

This requirement is for a daily published report that covers crude oil markets and U.S.

coal markets.

The crude oil market report must cover the U.S. Gulf coast, midcontinent, west coast, Canada and Latin America. The report must identify the method of trades and represent the entire market range of transactions throughout the entire trading day. The report must include spot market prices, including volume-weighted averages of deals done.

The list of deals done must be published in the report along with full market commentary.

The U.S. coal market daily published report must provide coal market intelligence, pricing and analysis for the U.S. coal markets. The report must assess prices in traditional spot markets for physical and over-the-counter coal. U.S. coal prices, analysis and news must be delivered promptly. Specific trading and delivery requirements of dry-bulk fuels markets, with daily assessments of standardized trading products and weekly assessment of less-liquid spot physical transactions must be included in the report.

All data must be available via a functional (Application Programming Interface) API delivery for Audit Compliance and Market Analysis.

Currently, this requirement is performed by Argus Media, Inc, under sole source purchase order 140D0421P0212.

This is a follow-on requirement for a single award, firm-fixed-price, purchase order with a base year and four option years, with a period of performance of 10/01/2026 to 09/30/2031. The total estimated dollar value

4. An identification of the statutory authority permitting other than full and open competition.

This is an acquisition conducted under the authority of the Simplified Procedures for Acquisition of Commercial Products and Commercial Services. The statutory authority permitting restricting competition is 41 U.S.C 1901 as implemented by RFO 12.102(b).

5.

nature of the acquisition requires use of the authority cited.

Argus is the only known capable vendor who can provide the data ONRR requires.

ONRR manages and ensures full payment of revenues owed for the development of the

Federal and Indian lands. As part of their mission ONRR initiates and conducts audits relating to the scope, nature and extent of compliance by lessees, operators, revenue payors, and other persons with rental, royalty, net profit share and other payment requirements on a Federal or Indian oil and coal lease. To perform these audits, ONRR personnel need to verify the prices used in the oil and coal purchase contracts match what the companies are using to calculate their royalties due. To do this, ONRR must subscribe to the same name brand trade publications, now referred to as Price Reporting Agencies (PRAs) that the companies use in their contracts.

The last publication notice of approved publications in the Federal Register is 65 FR 37043 (see attached). Petroleum Argus Americas Crude is one of three publications authorized in accordance with § 1206.104.

Argus is currently providing the requirement under sole source purchase order 140D0421P0212. Market research conducted showed that Argus is the only product that meets the full requirement for ONRR to have the required data. This is proprietary and no other source provides this requirement.

6. A description of the efforts made to ensure that offers are solicited from as many potential sources as practicable, including whether a notice was or will be publicized as required by RFO part 5 and, if not, which exception under Part 5 applies.

This requirement will be solicited as a combined synopsis/solicitation in accordance with FAR 12.201. This justification will be made publicly available with the combined synopsis/solicitation and will again be publicly posted within 14 days of resultant award, in accordance with the requirements of RFO 12.202(b) and Part 5.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer will determine whether the proposed price is fair and reasonable. This determination will be made in accordance with the guidance in RFO 12.204. The price analysis will compare the quoted price with prices paid for similar acquisitions and the Independent Government Estimate (IGE).

8. A description of the market research conducted (see part 10), and the results or a statement of the reason market research was not conducted.

The Contracting Officer conducted market research to determine if new federally approved pricing publications had been announced in the Federal Register and through historical procurement data for identical services. Market research is limited due to the highly specialized data required and the size of the commercial market.

9. Any other facts supporting the use of other than full and open competition;

such as:

ONRR is federally mandated to initiate and conduct audits relating to the scope, nature and extent of compliance by lessees, operators, revenue payors, and other persons with rental, royalty, net profit share and other payment requirements on a Federal or Indian oil and coal leases. To perform these audits, ONRR personnel need to verify the prices used in the oil and coal purchase contracts match what the companies are using to calculate their royalties due. To do this, ONRR must subscribe to the same name brand trade publications, now referred to as Price Reporting Agencies (PRAs) that the companies use in their contracts.

10. A listing of the sources, if any, that expressed an interest in the acquisition in writing.

Argus Media Inc., 2929 Allen Parkway, Suite 700 Houston, TX 77019