SECHQ1117R0011JAred.pdf

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

100 F STREET, NE

WASHINGTON, DC 20549

OFFICE OF

ACQUISITIONS

JUSTIFICATION FOR SOLE SOURCE ACQUISITION

Requisition Number:

Procurement Title: Access to financial data sets Estimated Value:

Statutory Authority: FAR Part 13.5 in accordance with 41 U.S.C. 1901

JUSTIFICATION FOR SOLE SOURCE ACQUISITION

JUSTIFICATION NUMBER: 2017-0030

Upon the basis of the following justification, I, as the Competition Advocate, hereby approve the use of limited competition of the proposed contractual action pursuant the authority of FAR Part 13.5 in accordance with 41 U.S.C. 1901, only one responsible source and no other supplies or services will satisfy agency Requirements.

1. IDENTIFICATION OF THE AGENCY AND THE CONTRACTING ACTIVITY, AND

SPECIFIC IDENTIFICATION OF THE DOCUMENT AS A “JUSTIFICATION FOR

SOLE SOURCE ACQUISITION”

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

This document serves as Justification for a sole source acquisition.

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

The U.S. Securities and Exchange Commission (SEC) intends to award a contract on a sole source basis to S&P Global Market Intelligence, LLC. for financial data services.

This contract is for a base period of 12 months with four (4) 12-month option periods.

This award will be Firm Fixed Price (FFP) and will be funded with FY 2017 funds.

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE

AGENCY’S NEEDS (INCLUDING THE ESTIMATED VALUE)

The requirement is for the following services:

Compustat North America and Compustat Global via Wharton Research Data Services (WRDS). These databases provide both current and historical financial statement data for both active and inactive publicly traded companies. Annual and quarterly data for North American and international companies is provided on a monthly basis. Data for North American companies includes stock price history and dividend earnings history.

CRSP/Compustat Merged database via WRDS merges historical financial data provided by CRSP (University of Chicago Graduate School of Business, Center for Research in Security Prices) and by Standard and Poor’s. This merged database uses permanent identifiers shared by both services, permitting a seamless time-series examination of companies and securities, regardless of ticker or CUSIP changes.

Compustat Unrestated Quarterly Data via WRDS consisting of at least 20 years of historical quarterly financial statements as they were originally filed by registrants, to include: the most recent, restated or final values for each unrestated item such as financial data coverage on active and inactive North American companies;

unrestated quarterly data and restated quarterly data for comparison; unrestated finalized quarterly numbers back to 1987; all company quarterly historical fundamental data reported by Compustat including income statement, balance sheet, and cash flow statements

CapitalIQ Financials & Valuation is a web-based service that provides a broad range of highly structured key financial data on a significant number of public and private companies back to 2001. The coverage provided 88,000 public companies and 13,000 private companies. This service provides current and historical data on company asset levels, their securities offerings, shares outstanding, stockholders of record, and the number of shares held by large shareholders as well as data for smaller reporting companies and non-reporting private companies. In addition it provides profiles of 62,000 public and 4.4 million private firms that include contact information, competitors and business relationships, auditors, comparables, corporate governance.

Execucomp via WRDS provides information on executive compensation in companies that are part of the S&P 1500 plus companies, and those that were once part of the 1500 plus companies, have been removed from the index, but are still trading. The information includes data on top executives’ salaries, bonuses, options and stock awards since 1992 for the S&P 500 companies and from 1994 for all others. This data set includes over 80 different compensation characteristics, including the top five executive officers for each company, and over 35 measures of company financial performance taken from Compustat.

The estimated value for the Base Period is , and the total estimated value of the contract is for the base and all option periods.

4. AN IDENTIFICATION OF STATUTORY AUTHORITY PERMITTING SOLE

SOURCE ACQUISITION

FAR Part 13.5 in accordance with 41 U.S.C. 1901, only one responsible source and no other supplies or services will satisfy agency requirements.

5. A DEMONSTRATION OF CONTRACTOR’S UNIQUE QUALIFICATIONS OR THE

NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED

S&P Global Market Intelligence is the only source that can provide the content delivered in the format required by the SEC. The data that the SEC requires to be deliverable through the Wharton Research Data Services (WRDS) platform is available only from S&P Global Market Intelligence. S&P Global Market Intelligence compiles and publishes the data, and provides it to WRDS. These data sets are: Compustat North America and Compustat Global, CRSP/Compustat Merged, Compustat Unrestated Quarterly Data, Execucomp.

These products are the only ones in these categories that are offered via the WRDS platform. The WRDS platform enables Commission staff to conduct studies more efficiently, since the data can be accessed through the statistical platform currently used for analysis. WRDS is a user-friendly, web-based, data management system designed to retrieve information from a wide variety of financial and economic data sources, and to facilitate large-scale data research.

Research Insight is the only software that enables analysis of S&P CapitalIQ Compustat North America and Compustat Global data and data downloading to the Windows environment.

Compustat North America and Compustat Global are the only services available on WRDS platform that provide both current and historical financial statement data for active and inactive companies that goes at least 20 years of data for North American companies and at least 12 years of data for foreign companies. Annual and quarterly data for North American companies shall be provided on a monthly basis; annual data for international companies shall be provided on a monthly basis. Data for North American companies includes stock price history and dividend earnings history.

CRSP/Compustat Merged database is the only service available via WRDS that provides merged CRSP and CapitalIQ Compustat historical financial data provided.

This is the only data that merges databases using permanent identifiers shared by both services and permitting a seamless time-series examination of companies and securities, regardless of ticker or CUSIP changes.

Compustat Unrestated Quarterly Data is the only service available via WRDS that provides the most comprehensive data of historical quarterly financial statements as they were originally filed by registrants. The data includes the most recent, restated or final values for each unrestated item, financial data coverage on active and inactive North American companies, both unrestated quarterly data and restated quarterly data for comparison; unrestated finalized quarterly numbers back to 1987.

CapitalIQ Financials & Valuation provides the most comprehensive financial data on small private firms and small companies. The coverage is provided for 88,000 public companies and 13,000 private companies, including downloadable financials in bulk into spreadsheet format. It has data on capital raising by small firms, including venture capital investments, as well as outcomes such as IPOs, acquisitions and bankruptcies going back to 2001.

Execucomp is the only service available via WRDS that provides information on executive compensation in companies that are part of the S&P 1500 plus companies, and those that were once part of the 1500 plus companies, have been removed from the index, but are still trading. The information includes data on top executives’ salaries, bonuses, options and stock awards since 1992 for the S&P 500 companies and from 1994 for all others. This data set includes over 80 different compensation characteristics, including the top five executive officers for each company, and over 35 measures of company financial performance taken from CapitalIQ Compustat.

Execucomp is the only service that has the deepest historical coverage that goes to 1992.

6. A DESCRIPTION OF EFFORTS MADE TO ENSURE THAT OFFERS ARE

SOLICITED FROM AS MANY POTENTIAL SOURCES AS IS 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

The SEC Office of Acquisitions posted a synopsis on FedBizOpps on 23 March 2017 to provide notification that the SEC intends to award a sole source procurement to S&P Global Market Intelligence in accordance with FAR 5.201. Any response to the notice will be reviewed and any sources that express interest in the procurement will be added to a list being maintained in the contract file (see number 10).

7. A DETERMINATION BY THE CONTRACTING OFFICER THAT THE

ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR AND REASONABLE

The Contracting Officer has determined that the anticipated price is fair and reasonable.

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

Knowledgeable individuals in the Division of Economics, Risk, and Analysis (DERA) and business librarians were consulted, and research was conducted on the Internet. It was verified through this research that no other sources can provide the required financial data in the format required by the SEC. The SEC has a commission-wide license to the WRDS platform and the required databases are the only databases/services of its kind available via WRDS. A market research report was completed to document research efforts for this requirement. The report is included in the contract file.

9. ANY OTHER FACTS SUPPORTING THE USE OF A SOLE SOURCE

ACQUISITION:

N/A

10. A LISTING OF THE SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN

INTEREST IN THE ACQUISITION:

A list of sources that express an interest in actions under this sole source justification will be maintained in the contract file.

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:

a) Procurement History: SECHQ114P0077 was awarded on a sole source basis for a period of performance of 1 May 2014 through 30 April 2017.

b) The Commission will continue to survey the capabilities of the marketplace to determine if similar products/services may be utilized to fulfill these requirements in the future.

Technical & Requirements Certifications I certify that the facts and representations under my cognizance, which are included in this justification, are complete and accurate.

(Signature) _ ___ _ Date: _____________

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

(Signature) _ __ Date: _____________ Contracting Officer

General Counsel Review Based upon the facts and rationale presented herein, this justification appears legally sufficient.

(Signature) _ ______ ____ Date: _____________

Competition Advocate Approved:

(Signature)___ _ ______ Date: ____________ , Competition Advocate

3/28/2017

, cn=Taylor, A V D '

Date: 2017.03.28 14:43:11 -04'00'

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