TR_Eikon_SoleSource_FBO_Redacted.pdf

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

100 F STREET, NE

WASHINGTON, DC 20549

Office of Acquisitions

JUSTIFICATION FOR SOLE SOURCE ACQUISITION

RQ

J&A Log: 2018

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 other than full and open competition.”

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

2. Nature and Description of Action Being Approved:

The U.S. Securities and Exchange Commission (SEC) intends to award a sole source contract for a comprehensive real-time current and historical financial information for the U.S. and international financial markets, with analytical capabilities (Eikon terminals and Thomson Reuters eMAXX data) to Thomson Reuters (Reuters), 3 Times Square, New York, NY 10036-6564. This is a renewal contract action.

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

The SEC proposes to negotiate the purchase of continuing services for comprehensive 1) real-time current and historical financial information for the U.S. and international financial markets, with analytical capabilities and 2) fixed income ownership and institutional investor profile data. The information shall be provided via hosted Internet access to SEC-owned personal computers and by file download from the vendor’s databases.

Minimum Requirements/Capabilities:

a. Eikon:

- Real-time prices from more than 160 domestic and international exchanges, comprehensive news coverage of global equity markets on active shares, market reports, economic updates, and research and regulatory releases.

- Forecasts on bond yields, short term interest rates, currencies and economic indicators; real-time prices from market and broker sources across major currency and money markets for approximately 175 currencies globally; and real-time pricing from major commodities and futures exchanges worldwide.

- Access to Reuters’ real-time news from every major and emerging financial market, with a 180 day archive.

- Historical, analytical, fundamental, and technical information on equities.

- Comprehensive company related information including Estimates, Fundamentals, and Corporate Actions. Daily data on equities (including volume and high, low and close information) with an available archive of at least two years; weekly data for equities with an archive of at least five years; and monthly data archived for ten years.

- Domestic and international cross-asset information, with analytical functionality and the ability to download into Excel. Pre-built worksheets with market standard calculations and analysis, as well as the ability to customize worksheets, pages and views within the solution.

- Service available to multiple users on three terminals with real-time market data.

- Market data - Provide real-time access to the following exchange feeds at 3

Headquarters terminals and 1 in :

1. NYSE MKT (ASE)

2. Chicago Mercantile Exchange

3. Chicago Board of Trade

4. NASDAQ Level 1 UTP

5. NYSE Level 1

6. OPRA

7. ICE Futures US

8. Dow Jones Newswire

b. Thomson Reuters eMAXX data

- Deliver Thomson Reuters eMAXX fixed income ownership and institutional investor profile data to include historical data back to 1998 for fixed-income investors located in North America and will include the following asset classes: 1) corporates 2) municipals and 3) asset-backed. Delivery ftp. The files will include the following data fields, at minimum:

• Detailed asset breakdown

• Portfolios under management

• Investment decision-makers

• Issuer name or ticker

• Credit sector

• Instrument or collateral type

• Ratings

• Paramount and net change

The estimated contract value is for the base period and for the base and four (4) 12-month option periods.

4. An Identification of the statutory Authority for Other Than Full and Open Competition:

FAR Part 13.5 in accordance with 41 U.S.C. 1901 and 41 U.S.C. 3304, only one responsible source and no other supplies or services will satisfy agency requirements.

5. Demonstration that the proposed contractor's unique qualifications or nature of the acquisition requires use of the authority cited:

The SEC requires a comprehensive real-time current and historical financial information for the U.S. and international financial markets, with analytical capabilities (Eikon terminals and Thomson Reuters eMAXX data). As the primary regulator of the securities markets, the SEC needs access to all primary data feeds that relate to fulfilling its mission, to meet the requirement that the agency be as informed and educated on markets as possible. Although overlap in information is to be expected, the separate services each have unique data provision qualities. The Minimum Requirements/ Capabilities are set forth in paragraph 3 above.

Reuters Eikon provides a unique information service that aggregates a wide variety of financial data and news, includes Reuters' own copyrighted news, and makes information available via a platform that facilitates tracking markets, identifying and analyzing market movers, and integrating relevant news.

Reuters’ information product eMAXX is known to be the most comprehensive source of fixed income ownership and institutional investor profile data. The eMAXX service is unique in offering delivery of this information in flat text files. The SEC requires this information in this format so that the data can be searched and manipulated independently of any proprietary platform.

Reuters is the only service that offers broad breadth coverage over a single integrated platform, and is thus the only service that satisfies the SEC’s minimum requirements and capabilities.

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.

In accordance with FAR 5.203(a), a notice of intent to award a sole-source contract to Reuters for the services specified herein was posted to FedBizOpps.gov.

Zero (0) responses were received in response to the post.

7. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The anticipated cost to the government is determined to be fair and reasonable.

Before awarding a contract, the contracting officer will perform additional price analysis in accordance with FAR 15.404-1(b).

8. Description of a market research conducted and results or a statement of the reason market research was not conducted:

Extensive outreach was made to knowledgeable individuals in the agency to determine their needs and learn what other sources they were aware of in their work for the SEC and in many cases their previous work in the industry. A literature review was conducted to obtain information on market capabilities. From these efforts, the SEC concluded that the items/services provided by the contractor are unavailable elsewhere in the market. Reuters is the most comprehensive service over the full breadth of the various securities markets that the SEC must monitor currently offered in the commercial market. Reuters is the only service that satisfies the SEC's minimum requirements for such a broad breadth service.

Experts comparing Thomson Reuters’ Eikon to Bloomberg's similar product advised that while Bloomberg provides the best analytical tools, Reuters places a greater emphasis on delivering context and analysis in their coverage of financial news and specific markets. Having services from both sources helps fulfill the oversight and surveillance needs of Market Watch and Division of Enforcement.

9. Other Supporting Facts:

The SEC has access to data from known competitors:

None of these competitors are a substitute for

Thomson Reuters.

https://acquisition.gov/far/current/html/Subpart%205_2.html#wp1107980 https://acquisition.gov/far/current/html/Subpart%205_2.html#wp1107990

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

N/A

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:

The SEC will continue to perform market research for future acquisitions for the purpose of verifying the sole source nature of this requirement.

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

ORIGINAL SIGNED

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

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

Competition Advocate Approved: