REDACTED JOFOC_Bloomberg Virtual Terminal.pdf

SOLE SOURCE FOR AN ACTION EXCEEDING THE

SIMPLIFIED ACQUISITION THRESHOLD

USING SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

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

1. Identification of the Agency and the Contracting activity:

The U.S. Energy Information Administration (EIA) proposes to enter into a contract on the basis of other than full and open competition for Bloomberg Professional Terminal Services. This document sets forth the justification and approval for the use of a sole source acquisition found at Federal Acquisition Regulation (FAR) 13.5 and in accordance with 41 U.S. Code § 1901 and FAR subpart

13.5 procedures.

2. Nature and/or Description of Action being approved:

EIA intends to award a Firm Fixed Price (FFP) contract to Bloomberg Finance L.P. with a one-year base period of March 15, 2024 to March 14, 2025.

EIA’s post-COVID posture for its workforce has moved from staff being in-office to most staff working remotely. To meet the needs of its evolving workforce and allow analysts to access the data required to complete their objectives, EIA must pivot from one physical Bloomberg terminal accessible only at EIA’s office in Washington, D.C. to a contract for 14 individual licenses allowing remote access for analysts anywhere in the contiguous United States.

Bloomberg will provide all hardware and software requirements to access Bloomberg Professional Services remotely via Bloomberg Anywhere. This will allow real-time access to the Chicago Mercantile Exchange (CME), New York Mercantile Exchange (NYMEX), and Inter-Continental Exchange (ICE) markets, which are essential to EIA’s mission, and provide access to the latest information, data, and news stories related to energy markets. The data from the Bloomberg service may also be used in EIA’s Daily Energy Report, Weekly Petroleum Status Report, Today in Energy, and other publications.

3. Description of Supplies/Services required to meet the Agency’s Needs including the estimated value:

Bloomberg Anywhere licenses provide remote access to the Bloomberg terminal, which is comprised of resources and tools that enhance EIA’s approach to energy market analysis. EIA requires 14 Licenses for Bloomberg Anywhere (remote access to terminal) licenses.

Anticipated Dollar Value of the Proposed Acquisition.

The Anticipated Dollar Value for the Base Year is

4. An identification of the statutory authority permitting the sole source acquisition:

The statutory authority permitting the sole source acquisition is 41 U.S. Code § 1901 as implemented by FAR 13.501(a).

5. Determination that proposed Contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

The government will procure 14 Bloomberg Anywhere Terminal Subscriptions. These subscriptions and additional access licenses will provide industry-standard broker/dealer access for EIA analysts that cannot be obtained anywhere else. Bloomberg’s data and its proprietary tools position the company as the only responsible source.

EIA takes advantage of Bloomberg’s unique services for the following:

Utilizing evolving Bloomberg tools to enhance EIA’s approach to market analysis;

Providing staff development training and support through Wholesale Energy Market

Analysis community;

Delivering quarterly Liquefied Natural Gas (LNG) market updates within EIA, drawing heavily upon Bloomberg data and tools related to LNG netbacks, spot and forward prices for global gas, Russian gas flow dynamics, shipping issues and constraints, European gas demand, and Asian and European weather updates;

Reviewing sub-county well analysis, in which Bloomberg data allows for tracking revenue and capital expenditures of exploration and production (E&P) and service companies to derive well cost and spending outlook for the upcoming year;

Accessing news and extensive company coverage that enables EIA analysts to filter for the key information relevant to energy-specific analysis, allowing analysts to make extensive use of buy/sell side investment coverage providing industry coverage research;

Gathering data and other information for analysis of petroleum and liquid fuels markets;

Exploring current market issues and finding detailed data on energy markets that isn’t readily available elsewhere;

Responding to market disruptions and other emerging issues, which require access to

Bloomberg’s up-to-date information;

Accessing specific data series that can only be drawn from the terminal itself, as opposed to the daily Bloomberg download. These include implied volatilities and options information (prices, open interest, volume) for all commodity futures which EIA often needs to provide probability density functions (probability of futures prices expiring above certain levels) in real-time, or to use for internal analysis.

The proprietary data offered by Bloomberg Finance L.P. are critical to properly address inquiries from EIA stakeholders on market disruptions, prices, and economic variables used for research and other emerging issues in energy, including petroleum and liquid fuels. Losing access to this proprietary data and services would compromise EIA’s ability to deliver on its congressional mandate to collect, analyze, and disseminate independent and impartial energy information to promote sound policymaking, efficient markets, and public understanding of energy and its interaction with the economy and the environment.

6. A description of efforts made to ensure that offers are solicited from as many potential sources as is practical, including whether a notice was or will be publicized as required by Subpart 5.2 and if not, which exception under 5.202 applies:

On December 4, 2023, a notification of this proposed contract action was posted to SAM.gov with a closing date of December 19, 2023. No responses were received in response.

7. A determination by the contracting officer that the anticipated cost to the

Government will be fair and reasonable:

No award shall be made until the Contracting Officer determines the cost to the Government to be fair and reasonable. This determination will be based on a comparison of the proposed price with prices found reasonable on previous purchases and market research.

8. A description of the market research conducted:

Market research was conducted to determine whether other sources of this data exist. First, EIA made inquiries to Bloomberg about vendors authorized to sell its Anywhere subscription and Bloomberg responded with a letter stating the required web-based subscription was solely provided by Bloomberg Finance L.P. (i.e., no authorized reseller available). Second, on December 4, 2023, a notification of this proposed contract action was posted to SAM.gov with a closing date of December 19, 2023. This was an opportunity for vendors other than Bloomberg Finance L.P. to reach out to EIA with their capability statements. No responses were received in response.

Finally, as a purchaser of myriad data to satisfy its agency mission, EIA continuously conducts market research for new data providers. Should this research reveal any other vendors that can offer the same breadth of real-time data, analyses, tools, research, and articles as Bloomberg Finance L.P., then the requirement will be competed.

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

There are no additional facts supporting the use of other than full and open competition.

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

No sources expressed interest in the acquisition.

11. A statement of actions, if any, that were taken to remove or overcome any barriers to competition:

No other vendors have been identified as capable of providing the unique detailed real-time data, research, articles, and systems/tools that are supplied by Bloomberg and currently required for EIA to meet its congressionally mandated requirements for reports and publications. However, as noted above, EIA continuously conducts market research for new data providers and if this research reveals any other vendors that can offer the same breadth of real-time data, analyses, tools, research, and articles as Bloomberg Finance L.P., then the requirement will be competed.