POST_AWARD_Posting_-__Sole_Source_Justification_FAR_13_501_Redacted_1.pdf

United States Department of the Interior

INTERIOR BUSINESS CENTER

Washington, DC 20240

SOLE SOURCE JUSTIFICATION

SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

AUTHORITY: FAR 13.501(a), 41 U.S.C. 1901

Solicitation # 140D0423Q1029 S&P Global Commodity Insights Subscription Services

1. Identification of the agency and contracting activity, and specific identification of the document as a “Sole Source Justification.”

This document is a Sole Source Justification for the Department of the Interior, Interior Business Center, Acquisition Services Directorate, Division V, Branch V on behalf of the Office of Natural Resources Revenue (ONRR).

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

The purpose of this justification is to procure a follow-on purchase order for S&P Global Platts Services Subscription which requires a single provider for web-based subscription services that provide industry information and pricing data for the crude oil, natural gas and coal energy markets.

The specific vendor considered for award is:

Standard and Poor’s (S&P) Global 55 Water Street

New York, NY 10041-3205

Government Business POC: Lakshmi Kumaran lakshmi.kumaran@spglobal.com

(609) 426-5000 Ext: 7047

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

ONRR requires subscription services to S&P Global Commodity Insights publications to provide industry information and pricing data for the crude oil, natural gas and coal energy markets. These publications are used by both government and industry as the standard for business data, information and daily pricing per Federal Regulation 30 CFR §1206.101 and 30 CFR §1206-104.

A complete listing of the crude oil, natural gas and coal market data and pricing information required is contained on ONRR’s requirements document attached to this justification. The S&P Global Commodity Insights Subscription Services anticipated to meet these needs are shown below:

➢ Market Data Enterprise License Package (Web) - Includes Market Data categories below:

• Market Data - Natural Gas - GD Package - North America Daily

Attachment 1: Redacted Sole Source Justification - FAR 13.501

Solicitation # 140D0423Q1029

S&P Global Commodity Insights Subscription Services

In accordance with CFR Title 30, Chapter XII, Subchapters 1206.104 and 1206.172, ONRR periodically publishes the index zones, New York Mercantile Exchange (NYMEX) price and Alaska North Slope (ANS) spot price based on publications buyers, sellers and lessees utilize for valuation in the Federal Register (see attached § 1206.172 and § 1206.104).

The most recent notice of approved publications in the Federal Register are 76 FR 37828 (effective August 1, 2011) and 65 FR 37043 (effective date June 1, 2000). As authorized by §1206.172 and §1206.104, the following S&P Global publications are approved – Inside Federal Energy Regulatory Commission (FERC) Market Report and Oilgram Price Report. The mentioned S&P Global publications are one of three ONRR approved publications required for use by ONRR.

The other ONRR approved publications include Natural Gas Intelligence Bidweek Survey and the Argus Natural Gas Americas and Oil Price Information Service (OPIS).

The information provided by the Inside FERC and OilGram Price Report publications meets the industry approval criteria for spot price of oil for specific geographical areas and royalty valuation of gas produced from Indian leases located in an index zone. These publications are utilized by ONRR to establish oil value for royalty due on Federal leases and royalty on Indian gas and oil leases. These publications can only be provided by S & P Global – pricing from other publications cannot be utilized in audits conducted by ONRR to verify royalties.

6. A description of 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 FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A Sole Source Notice of Intent was posted to SAM.gov notifying potential offerors of the Government’s intent to award a sole source action to S&P Global Inc. The notice invited interested businesses to submit a response that demonstrated their ability to fulfill the requirements. The notice stated that the government would consider information received to determine whether to conduct a competitive procurement. The notice stated that if no affirmative responses were received by 2:00 PM ET, August 18, 2023, an RFQ would be provided to S&P Global Inc. as the only source, and a purchase order would be issued without any additional notices being posted. This post did not result in any companies showing interest in providing the required services. In accordance with FAR 13.501(a)(1)(iii), this justification will be publicly made available within 14 days after contract award.

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

The Contracting Officer determines the anticipated estimated Purchase Order value of will be determined fair and reasonable using price analysis techniques described at FAR 13.106-3 (2)(ii), comparison to historical prices paid and FAR 13.106-3(2)(vi), comparison to the Independent Government Estimate.

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.

Market Research revealed only one qualified source for this web-based Subscription Service, S&P Global Commodity Insights Subscription Services

S&P Global Commodity Insights (formerly S&P Global Platts). S&P Global is the exclusive provider of the crude oil, natural gas, and coal industry data and pricing information required by the Government. No other company can provide on-line subscriptions to the Federal Energy Regulatory Commission (FERC) and Oilgram publications. The S&P Global Commodity Insights publications are the only publications that comply with ONRR’s complete list of data requirements.

The S&P publications, Inside FERC and the Oilgram Price Report, are the only publications authorized by the Federal Government under §1206.172 and §1206.104.

9. Any other facts supporting the use of other than full and open competition, such as:

ONRR is responsible for the collection of certain rents, royalties, and other payments; for the receipt of sales and production reports; for determining royalty liability; for maintaining accounting records; for any audits of the royalty payments and obligations; and for any and all other functions relating to royalty management on Federal and Indian oil and gas leases. In order to perform these obligations, publications independent from ONRR must be utilized.

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

Not Applicable.

11. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required.

In accordance with 30 CFR §1206.172 and §1206.104, ONRR-approved publications must be utilized for determining prices. These publications must utilize adequate survey techniques, including estimates based on daily surveys of buyers and sellers of crude oil, and for ANS spot prices, buyers and sellers of ANS crude oil.

Per 30 CFR §1206.103 (b), any publication may petition ONRR to be added to the list of acceptable publications.

12. Contracting officer certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

I certify that this justification is accurate and complete to the best of my knowledge and belief.

13. Requirements personnel certification.

I certify that the technical data which forms a basis for this justification is complete and accurate and meets the Government’s minimum needs.

S&P Global Commodity Insights Subscription Services

14. Reviews and Approvals

Concur

Approve