Redacted Sole Source Justification - ARC.pdf

JUSTIFICATION FOR SOLICITING FROM A SINGLE SOURCE

1. IDENTIFICATION OF THE AGENCY AND CONTRACTING AGENCY:

Contracting Activity: Office of The Senior Procurement Executive (OSPE)

Office of the Assistant Secretary for Administration &

Management (OASAM)

Customer Agency: Bureau of Labor Statistics, Division of International Prices

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

This action approves and justifies the issuance of a firm-fixed-price Sole Source Order for

Airlines Reporter Corporation (ARC). The base year period of performance will be March 1, 2022 – February 28, 2023 with a one-year Option Year. During this period, ARC will provide data for Traffic and Fare Analysis of Non-US Operating Carriers for US Outbound

Markets and Traffic and Fare Analysis of Non-US Operating Carriers - Canada Markets to support the Bureau of Labor Statistics’ monthly publication of the Import Air Passenger

Fares Price Indexes.

3. DESCRIPTION OF SUPPLIES/SERVICES REQUIRED TO MEET THE AGENCY’S

NEEDS (Including the Estimated Value):

The primary purpose of this contract is to provide Traffic and Fare Analysis data on a monthly basis to support the Bureau of Labor Statistics’ monthly publication of the Import and Export Air Passenger Fares Price Indexes on a monthly basis.

The proposed action is estimated to cost of $40,000.00 for the base year, and $42,000.00 for option year 1 totaling $82,000.00 for the entire estimate.

4. AN IDENTIFICATION OF THE STATUTORY AUTHORITY PERMITTING

OTHER THAN FULL AND OPEN COMPETITION:

6.302-1 Only One Responsible Source and No Other Supplies or Services Will Satisfy

Agency Requirements. The subscription and the software are proprietary to ARC and they have no current resellers

5. A DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE

QUALIFICATIONS OR THE NATURE OF THE ACQUSITION REQUIRES USE OF

THE AUTHORITY CITED:

The data ARC provides has key components of the airline market which impacts the quality and accuracy of the published indexes. ARC is the only company that can provide the specific international routes and associated price data at a level of detail that is required to produce import air passenger indexes. ARC is the only data provider that can provide the data on a monthly basis in a timeframe that enables BLS to publish the monthly indexes on time. The information ARC can provide in their reports are:

• Non-US Operating Carriers for US Outbound Markets

• Non-US Operating Carriers for Canada Markets

• US Operating Carriers for US Inbound Markets

• US Foreign-to-Foreign Markets

• US Operating Carriers for Canada Markets

• Country Market (Based on World Area codes)

• Number of tickets, total fares, and average fare for Premium fares (including First and

Business)

• Number of tickets, total fares and average fare for Non-Premium fares (including

Economy and all others).

• Fares provided will be the taxed fare, but not include fees (baggage or otherwise, or other charges)

• Country to U.S. Imports

6. A DESCRIPTION OF EFFORTS TO OBTAIN COMPETITION 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 SUBPART 5.2 AND IF NOT, WHICH

EXCEPTION UNDER 5.202 APPLIES:

In past years, BLS has searched extensively for alternative data sources to meet its needs via the internet, discussions with industry trade associations, academic researchers, and past public notices. These searches have not identified a viable alternative to the selected contractor for providing the necessary data at the best value to the BLS.

This requirement will be awarded to ARC as a sole source award under 519190 – All Other

Information Services. In accordance with FAR 5.203, synopses must be published 15 days before the issuance of a solicitation or negotiations with a sole source. Exception – for commercial items acquisitions, the Contracting Officer (CO) may (1) establish a shorter period for issuance of the solicitation; or (2) use the combined synopsis and solicitation procedure (see 12.603). Since this requirement is a reoccurring BLS purchase and since we have not received interest from other capable vendors, the CO has decided to post a synopsis to FBO for 5 business days before entering into negotiations for sole source.

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNEMENT WILL BE FAIR AND

REASONABLE:

In accordance with 13.106-3, it is anticipated that the cost will be fair and reasonable based on previous purchases of similar scope. BLS will conduct a price fair and reasonable determination before issuing an Order.

8. A DESCRIPTION OF MARKET RESEARCH CONDUCTED (PART 10) AND THE

RESULTS OR A STATEMENT OF THE REASON MARKET RESEARCH WAS

NOT CONDUCTED:

The BLS Division of International Prices, Consumer Goods and Services Section reviewed 6 potential data sources to determine the most accurate and detailed data set. These data sources were identified in recommendations to the Section Chief for Consumer Goods and

Services. The Section Chief considered Airlines for America (A4A), Department of

Transportation (DOT), Airline Tariff Publishing Company (ATPCO), SABRE, BLS’

Producer Price Index company-level data, and Airlines Reporting Corporation (ARC) data. It was determined that the ARC data was the most comprehensive data set available and able to be accessed on a monthly basis in a timely manner to publish the BLS monthly indexes. See

Section 5 for more information.

9. ANY OTHER SUPPORTING FACTS SUPPORTING THE USE OF OTHER THAN

FULL AND OPEN COMPETITION:

Not Applicable.

10. A LISTING OF 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:

Before exercising the next Option Period, BLS will conduct market research prior to the renewal of this subscription one year from now to see if any new competing subscriptions or databases are available for this procurement.