SECHQ116P0064_JAMOD_Redacted.pdf

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JUSTIFICATION FOR OTHER THAN FULL AND

OPEN COMPETITION (OTFAOC)

Purchase Request Number:

Contract Number: SECHQ116P0064 Procurement Title: BrokerTec Data

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION (OTFAOC)

Justification for OTFAOC Number: 2016- Modification 0001

The purpose of this modification is to add tick history historical data to the current contract. The current contract value is increased by an estimated from to .

JUSTIFICATION

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

U.S. Securities and Exchange Commission 100 F Street, NE Washington, DC 20549

2. NATURE/DESCRIPTION OF ACTION(S): This modification to the original Justification and Approval (J&A) is to award a contract action as an exception to the requirement for full and open competition to ICAP Global Information Services to provide tick history historical data from 2001 to 2016.

3. DESCRIPTION OF SUPPLIES/SERVICES:

DERA requests the acquisition of current and historical U.S. Treasury intraday trade and quote data derived from the BrokerTec electronic interdealer platform. This will include all fields of information stored in the Trade, Order Book Change, and Workup tables maintained by BrokerTec. Historical data will include all information collected from January 1, 2001 through December 31, 2016 and will be delivered via USB Flash Drive. Current data will be delivered on a monthly basis beginning in January of 2017 and will also be delivered via USB Flash Drive.

BrokerTec is wholly owned by ICAP.

The actual value of the originally awarded 12-month base period of performance was in FY 2016 funding (with a 12-month option period in the amount of ). The increase for the addition of the historical data is estimated at in FY 2016 funding.

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4. IDENTIFICATION OF STATUTORY AUTHORITY: FAR 13.501, Test Program for Certain Commercial Items in accordance with 41 U.S.C. 1901

6. FEDBIZOPPS ANNOUNCEMENT/POTENTIAL SOURCES: The SEC’s Office of Acquisitions (OA) posted a Synopsis on FedBizOpps with notice of the SEC’s intent to award a sole source award to ICAP Global Information Services in accordance with FAR 5.201. No responses were received.

7. DETERMINATION OF FAIR AND REASONABLE COST: The anticipated cost to the government is determined to be fair and reasonable. The prices are based on the contractor’s commercial prices and the prices are comparable to other government contracts for similar requirements.

8. MARKET RESEARCH: Market research included numerous web queries of electronic interdealer markets as well as a review of academic literature related to this market. In their academic research, Flemming and Nguyen (2013) estimate that over their sample period from 2006 to 2011, BrokerTec had market shares of between 57% and 60% for the 2-, 5-, and 10-year notes. In addition to having the largest market share, BrokerTec provides the full order book of quotes, which the next largest vendor is unable to provide.

9. ANY OTHER SUPPORTING FACTS: N/A

10. LISTING OF INTERESTED SOURCES:

During our market research, we discovered that Thomson Reuters has a revenue-sharing agreement with BrokerTec that allows clients to contract with BrokerTec for the data but accept delivery through the Thomson Reuters Tick History product. Unfortunately, the Tick History product doesn’t contain all the fields of information collected by BrokerTec and therefore does not meet our technical requirements.

11. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME BARRIERS

THAT LED TO THE EXCEPTION TO FULL AND OPEN COMPETITION. The SEC will continue to perform market research for future acquisitions of this data for the purpose of verifying the sole source nature of this requirement.

12. REFERENCE TO THE APPROVED ACQUISITION PLAN (AP): N/A

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TECHNICAL & REQUIREMENTS CERTIFICATION: I certify that the supporting data under my cognizance which are included in the J&A are accurate and complete to the best of my knowledge and belief.

NAME: SIGNATURE:

TITLE/ORGANIZATION: PHONE:

DATE: _ _

CONTRACTING OFFICER CERTIFICATION: I certify that this justification is accurate and complete to the best of my knowledge and belief. Since this effort exceeds $150K but does not exceed $700K, this certification serves as APPROVAL:

NAME: SIGNATURE: _

TITLE/ORGANIZATION: Contracting Officer/OA PHONE:

DATE: _

ALL QUESTIONS REGARDING THIS JUSTIFICATION ARE TO BE REFERRED TO Anke Taylor at taylorank@sec.gov