Sole_Source_Justification_for_Simplified_Acquisitions_Redacted_(1)_1.pdf

United States Department of the Interior

INTERIOR BUSINESS CENTER

Washington, DC 20240

SOLE SOURCE JUSTIFICATION

SIMPLIFIED PROCEDURES FOR CERTAIN COMMERCIAL ITEMS

AUTHORITY: FAR 13.501(a), 41 U.S.C. 1901

Solicitation # 140D0424Q0455 Standard and Poor’s (S&P) Global Commodity Services Model (CSM+) Enterprise Access Subscription Services

1. Identification of the agency and contracting activity, and specific identification of the document as a “Sole Source Justification.”

This document is a Sole Source Justification for the Department of the Interior, Interior Business Center, Acquisition Services Directorate, Division V, Branch V on behalf of the Office of Natural Resources Revenue (ONRR).

2. Nature and/or description of the action being approved.

The purpose of this justification is to procure a purchase order for S&P Global Commodity Services Model (CSM+) Enterprise Access Subscription Services which are limited to a single provider. These web-based subscription services provide industry information and pricing data for the crude oil, natural gas and coal energy markets.

The specific vendor considered for award is:

Standard and Poor’s (S&P) Global 55 Water Street

New York, NY 10041-3205

Government Business POC: Kathy Maher kathy.maher@spglobal.com

303-324-9755

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

ONRR requires subscription services to S&P Global CSM+ publications to provide industry information and pricing data for the crude oil, natural gas and coal energy markets. These publications are used by both government and industry as the standard for business data, information and daily pricing per Federal Regulation 30 CFR §1206.101 and 30 CFR §1206.104.

The S&P Global CSM+ Subscription Services anticipated to meet these needs are shown below:

Market Insight - Crude Oil Package (CSM+) Market Data - Crude Oil Package (CSM+) Market Data - Americas Gas and Power Package (CSM+) Market Insight - Americas Gas and Power Package (CSM+) Market Data - Fuels and Refining Package (CSM+) Market Insight - Fuels and Refining Package (CSM+)

S&P Global CSM+ Enterprise Access Subscription Services

(effective August 1, 2011) and 65 FR 37043 (effective date June 1, 2000). As authorized by §1206.172 and §1206.104, the following S&P Global publications are approved – Inside Federal Energy Regulatory Commission (FERC) Market Report and Oilgram Price Report. These publications are provided under the Crude Oil and America Gas and Power Subscription Packages. These S&P Global publications are one of three ONRR approved publications required for use by ONRR. The other ONRR approved publications include Natural Gas Intelligence Bidweek Survey and the Argus Natural Gas Americas and Oil Price Information Service (OPIS).

The information provided within the Crude Oil and America Gas and Power publications meets the industry approval criteria for spot price of oil for specific geographical areas and royalty valuation of gas produced from Indian leases located in an index zone. These publications are utilized by ONRR to establish oil value for royalty due on Federal leases and royalty on Indian gas and oil leases. These publications can only be provided by S & P Global – pricing from other publications cannot be utilized in audits conducted by ONRR to verify royalties.

Failure to acquire the CSM+ Subscription Services by S&P Global will severely impact ONRR's core responsibility to collect, account for, verify, and disburse energy and mineral revenues due to the States, American Indians, and the U.S. Treasury as the data provided under these services is critical to non-arm's length valuation, assessing compliance and performing audits.

6. A description of efforts made 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 FAR Subpart 5.2 and, if not, which exception under FAR 5.202 applies.

A Sole Source Notice of Intent was posted to SAM.gov notifying potential offerors of the Government’s intent to award a sole source action to S&P Global Inc. The notice invited interested businesses to submit a response that demonstrated their ability to fulfill the requirements. The notice stated that the government would consider information received to determine whether to conduct a competitive procurement. The notice stated that if no affirmative responses were received by 2:00 PM ET, June 3, 2024, an RFQ would be provided to S&P Global Inc. as the only source, and a purchase order would be issued without any additional notices being posted.

This post did not result in any companies showing interest in providing the required services. In accordance with FAR 13.501(a)(1)(iii), this justification will be publicly made available within 14 days after contract award.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable.

The Contracting Officer determines the anticipated estimated Purchase Order value of will be determined fair and reasonable using price analysis techniques described at FAR 13.106-3 (2)(ii), comparison to historical prices paid and FAR 13.106-3(2)(iii) current price lists, catalogs, or advertisements.

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.

Market Research revealed only one qualified source for these web-based Subscription Services, S&P Global. As stated above, a Sole Source Notice of Intent was posted to SAM.gov on May 23, S&P Global CSM+ Enterprise Access Subscription Services

2024. No responses were received which supports the conclusion no other business entity is capable of providing the required subscription services. While research shows numerous sources provide subscription-based commodity data and insights (Bloomberg, OPIS, LexisNexis, Thomson Reuters, Morningstar, RBN Energy, etc.), they neither provide the level of detail and depth that ONRR requires nor are they identified as ONRR-approved publication sources. ONRR Approved Publication providers are currently limited to S&P, National Gas Intelligence (NGI), Argus and OPIS in accordance with the federal non-arm's-length Natural Gas and Crude Oil valuation regulations as described in 30 CFR Parts §§ 1206.141(c) & 1206.142(d) and 30 CFR Parts §§ 1206.103, 1206.113 & 1206.114, respectively.

Market Research indicates there are no Small Business Concerns capable of providing these subscription services. The sole source, S&P Global Inc., is a not a small business entity. An approved DI-1886 Small and Disadvantaged Business Acquisition Screening Form can be found in the Contract File.

9. Any other facts supporting the use of other than full and open competition, such as:

ONRR is responsible for the collection of certain rents, royalties, and other payments; for the receipt of sales and production reports; for determining royalty liability; for maintaining accounting records; for any audits of the royalty payments and obligations; and for any and all other functions relating to royalty management on Federal and Indian oil and gas leases. In order to perform these obligations, publications independent from ONRR must be utilized.

10. A listing of the 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.

In accordance with 30 CFR §1206.172 and §1206.104, ONRR-approved publications must be utilized for determining prices. These publications must utilize adequate survey techniques, including estimates based on daily surveys of buyers and sellers of crude oil, and for ANS spot prices, buyers and sellers of ANS crude oil.

Per 30 CFR §1206.103 (b), any publication may petition ONRR to be added to the list of acceptable publications.

12. Contracting officer certification that the justification is accurate and complete to the best of the contracting officer’s knowledge and belief.

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

S&P Global CSM+ Enterprise Access Subscription Services

13. Requirements personnel certification.

I certify that the technical data which forms a basis for this justification is complete and accurate and meets the Government’s minimum needs.

14. Reviews and Approvals

Concur

Approve