Sole Source Justification_1.pdf

PR # 40498020

JUSTIFICATION AND APPROVAL

Justification for Other Than Full and Open Competition (FAR 13.106-1)

1. Contracting Agency and Activity. The Department of the Interior, United States Geological Survey, Reston Acquisition Branch plans to contract by means other than full and open competition. This document sets forth the justification and approval for use of one of the exceptions to full and open competition allowed under the Competition in Contracting Act (CICA) of 1984.

2. Nature of Action Being Approved. This action involves the licensing of reprocessed two-dimensional seismic reflection data from the National Petroleum Reserve in Alaska (NPRA).

The proposed awardee is 3D Imaging Technology located in Denver, Colorado.

3. Description of Supplies or Services. The Geology, Minerals, Energy, and Geophysics Science Center, Alaska Petroleum Systems project requires the acquisition of reprocessed, digital, two-dimensional (2D), seismic reflection data from the NPRA. These seismic data are required to comply with Secretarial Order 3352, which directs the USGS to conduct on an accelerated schedule updated assessments of undiscovered, conventionally recoverable oil and gas resources of the Alaska North Slope, with an emphasis on Federal lands (including NPRA).

In addition, the USGS is providing scientific support to the Department of the Interior (DOI) and the U.S. Bureau of Land Management (BLM) to better understand the undiscovered oil and gas potential of the NPRA. Results are used by DOI and BLM to formulate and administer land-use decisions pertaining to leasing, lease-sale administration, and oversight of oil exploration activities within NPRA.

The subject 2D seismic data were collected during 1974 to 1981 by contractors working at the direction of the USGS, and the original raw data are available at no cost from the following USGS website: https://certmapper.cr.usgs.gov/data/apps/npra/.

3D Imaging Technology obtained the original raw seismic data from the USGS web site and reprocessed the data using state-of-the-art technology and software to (1) improve the resolution of the data, (2) produce derivative products that enhance the utility of the data, and (3) deliver digital products that can be easily loaded into digital workstations. The USGS cannot conduct similar reprocessing of the data because we lack (1) the appropriate sophisticated and expensive software and (2) personnel with advanced technical knowledge. Although the original raw seismic data are available to the public, no other company has downloaded and reprocessed the data to generate the products available from 3D Imaging Technology.

4. Estimated Dollar Value.

5. Statutory Authority. The proposed action may be awarded without full and open competition under 41 U.S.C. 253(a)(1) as implemented in FAR 13.106-1.

https://certmapper.cr.usgs.gov/data/apps/npra/

PR # 40498020

6. Rationale Supporting Use of Citation in No. 5.

a. 3D Imaging Technology is the only vendor that acquired and reprocessed a significant amount of vintage 2D seismic data in the NPRA needed for the USGS to complete the work described in section 3.

b. The USGS has conducted a search of all companies that offer licenses for reprocessed 2D seismic reflection data in the NPRA. Using defined parameters as selection criteria, the data offered for licensing by 3D Imaging Technology in the NPRA are unique.

7. Other Information. N/A

8. The Efforts to Identify Additional Sources Including the Market Research Conducted.

a. Other than 3D Imaging Technology, no other seismic processing company has obtained the original raw data from the USGS and reprocessed that data across a broad part of NPRA where the USGS has the greatest need. We know this because (1) we monitor which companies download the original raw data from the USGS web side and (2) we maintain knowledge of all seismic processing companies that currently conduct work in the region.

All seismic vendors known to the USGS to offer data for license in the Alaska North Slope were evaluated regarding whether data are available in specific areas. Each company serves an interactive digital map on its web site plus downloadable shapefiles or pdf maps showing locations of 2D seismic data.

b. Regular interactions with the oil industry community in Alaska and State and Federal agencies responsible for overseeing oil exploration activities in Alaska enables the USGS to know historical seismic data collection and to monitor ongoing surveys. In addition, public domain files from the Alaska Department of Natural Resources – Division of Oil and Gas, U.S.

Bureau of Land Management, and U.S. Bureau of Ocean Energy Management describing seismic survey permits issued were searched. No additional seismic companies offering 2D seismic data in the NPRA were found.

9. Future Plans to Permit Competition.

There are very few seismic companies that own data-for-license in the Alaska North Slope, and virtually all data are in unique locations, so there is little that can be done by the Government to increase competition. Moreover, most new seismic surveys are three-dimensional (3D), and most 3D surveys are prohibitively expensive to license. However, future requirements will undergo market research and be competed to the maximum extent practical.

JUSTIFICATION AND APPROVAL