SSJ_NatFireRiskMethod_20230815_CO_CORsigned_Redacted.pdf

Sole Source Justification (SSJ) Test Program for Certain Commercial items for procurements exceeding the Simplified Acquisition

Threshold (> $250,000) pursuant to FAR Subpart 13.5, including Brand Name

Sole Source Justification for Simplified Acquisitions under the Test Program for Certain Commercial Items for acquisitions exceeding $250,000, including brand name for use when applicable.

SSJ No.: XX-XXX -

SSJ No.: XX-XXX

Date: August 18, 2023 PR Number: WX06078Y2023T

Pursuant to the requirements under the authority of the test program for commercial items at 41 U.S.C. 1901 or the authority of 41 U.S.C. 1903 Special emergency authority as implemented by Federal Acquisition Regulation (FAR) Subpart 13.501 and consistent with the content requirements of FAR 6.303-2.

1. Agency and Contracting Activity. Identification of the agency and the contracting activity, and specific identification of the document as a “sole source justification.”

The Department of Homeland Security, Federal Emergency Management Agency (FEMA), intends to award a sole source contract.

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

FEMA intends to award a sole source contract to Headwaters Economics 270 W. Kagy, Suite G Bozeman, MT 59715 using Commercial Test procedures without seeking competition for the evaluation and development of a national fire risk index that supports wildfire, WUI, structure fire risk methods and models in the context of climate change variables. This action is being taken pursuant to FAR 13.501. Headwaters Economics is the only entity that is the nation’s leading independent, nonprofit research group informing decision making on wildfire, climate change, and community development by making complex data understandable and interactive through empirically-based practical solutions. Headwaters Economics is the leading independent, nonprofit research group that the US Forest Service, Bureau of Land Management, and other Federal agencies rely upon to develop practical data-focused solutions on wildfire and climate change to improve community development and land management solutions.

3. Description of Supplies/Services. Describe the supplies or services to be acquired. Provide the estimated total value (including options, if any).

The requirement is to evaluate existing wildfire, wildland urban interface (WUI), and structure fire spatial risk indices and existing risk analytical methodologies currently in use and/or in development today. This effort also requires a technical approach to be developed to achieve the most effective and accurate fire risk index and assessment methodology based on available data, methods, and models. This requirement culminates in the development of a prototype a national fire risk index and assessment methodology using public, nationally available data for validation. The resulting fire risk index will be applied at a national scale and transferred into a USFA/FEMA GIS environment. The total cost of this requirement is $ .

Threshold (> $250,000) pursuant to FAR Subpart 13.5, including Brand Name

Sole Source Justification for Simplified Acquisitions under the Test Program for Certain Commercial Items for acquisitions exceeding $250,000, including brand name for use when applicable.

SSJ No.: XX-XXX -

Period Unit Price Total Base Year 24 mo $ $

Total $

4. Identification of the authority. This action is being taken under the authority of the Test Program for Commercial Items, 41 U.S.C. 1901.

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

This requirement is for a National Fire Risk Index must be developed by a neutral, nonpartisan research organization recognized as the national leader in perfoming rigorous research and data science focused speficially at the interface of wildfire and climate change - charged with improving community development and land management decisions. There is only one entity that fulfills these unique qualifications to perform this workd.

Further, it is imperative that the National Fire Risk Index be developed by the same independent research entity entrusted by Federal interagency partners, US Forest Service and Department of Interior, to develop the Wildfre Risk to Communities to maximize unification of effort and ensure that the National Fire Risk Index is developed in part as an expansion of the USFS Wildfire Risk to Communities technical methodology. In order to use an alternate source, FEMA/USFA would have to absorb additional costs for a different vendor to redevelop the wildfire risk to communities methodology. This would substantially increase the cost of this procurement.

6. Description of efforts made to ensure that offers are solicited from as many potential sources as is practicable. (The discussion should include whether a SAM.gov notice was or will be publicized, as required by FAR Subpart 5.301, 6.305(a). If the justification covers a brand name item, this section should address compliance with FAR 5.102(a)(6)).

Significant market research was carried out by FEMA/USFA to determine the most appropriate source for the development of the National Fire Risk Index. In addition to performing standard market research on DHS strategic sourcing vehicles and GSA Federal Supply Schedules, USFA performed interviews with several leaders in fire and social science research as well as an Federal interagency review on wildfire, WUI, structure fire, and climate change risk assessment methodologies and associated performers. FEMA/USFA performed research on existing Federal investments on interreated efforts, validated alignment with USFA’s unique requirements, and assessed the cost benefit of leveraging of the most relevant, existing efforts underway and the

Threshold (> $250,000) pursuant to FAR Subpart 13.5, including Brand Name

Sole Source Justification for Simplified Acquisitions under the Test Program for Certain Commercial Items for acquisitions exceeding $250,000, including brand name for use when applicable.

SSJ No.: XX-XXX -associated performers. Details on this are captured in the accompanying market research report.

7. Determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable. (Use information such as commercial pricelists or prior acquisition history that will help the Contracting Officer determine the anticipated cost is fair and reasonable or discuss the application of any of the techniques described at FAR 13.106-3(a)(2) and/or 13.106-3 (b)(3)).

The contracting officer determines that the anticipated price(s) will be fair and reasonable based on the level of effort assessed for this work in alignment with the performance objectives and deliverables. Further, an Independent Government Cost Estimate (IGCE) was developed to assess the anticipated costs, which applies labor categories and rates consistent with fair market value. Additionally, the selected performer for this requirement, Headwaters Economics, is a 501 C 3 nonprofit, public charity organization, which is not permitted underlaw to profit. In sum, the cost for this project, performed by the selected entity, is anticipated to be fair and reasonable.

8. Description of market research. (Market Research is required by FAR Part 10 and HSAM 3010, and the DHS Market Research Guide. Describe the results of your market research or provide a statement of the reason why market research was not conducted).

Significant market research was carried out by FEMA/USFA to determine the most appropriate source for the development of the National Fire Risk Index. In addition to performing standard market research on DHS strategic sourcing vehicles and GSA Federal Supply Schedules, USFA performed interviews with several leaders in fire and social science research as well as an Federal interagency review on wildfire, WUI, structure fire, and climate change risk assessment methodologies and associated performers. Further, USFA performed research on existing Federal investments on interreated efforts, validated alignment with USFA’s unique requirements, and assessed the cost benefit of leveraging of the most relevant, existing efforts underway and the associated performers.

The market research showed that only Headwaters Economics is the only entity that meets the specific requisite criteria to serve as the lead in the development of the National Fire Risk Index.

9. Any other facts supporting the justification. (You must explain why technical data packages, specifications, statements of work, or purchase descriptions are not suitable for enhancing competition or not available. Discuss why your requirement cannot be modified to increase competition. If you are contending only one source can meet the Government’s minimum need, you must document the reason why and describe the extent to which the Government will be

Threshold (> $250,000) pursuant to FAR Subpart 13.5, including Brand Name

Sole Source Justification for Simplified Acquisitions under the Test Program for Certain Commercial Items for acquisitions exceeding $250,000, including brand name for use when applicable.

SSJ No.: XX-XXX -harmed if not acquired from that vendor. Address any potential duplication of cost, if applicable.)

If Headwaters Economics is not selected for award, the new contractor will have to re-define and re-develop 50% of the existing methodology for assessing wildfire risks to communities – since it will be an integral component of the National Fire Risk Index.

Wildfire is one of the 3 fire environments that must be accounted for in the National Fire Risk Index, as well as the social and community dimension and associated data analysis methodology.

If a new contractor were selected, FEMA/USFA would have to absorb the cost associated with re-developing 50% of those costs, which would represent at least $200,000 in additional costs and would directly duplicate past Federal investments and efforts. This estimate is based on half of the estimated costs associated with this project based on the IGCE developed, and represents a conservative estimate. It is imperative that FEMA/USFA leverage the existing Federal investments from US Forest Service for the wildfire risk to communities methodology, to maximize cost effectiveness and not duplicate investments already being made by the Federal government.

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 supplies or services required. (Include a statement of actions taken or will be taken to increase competition for future acquisitions of the same item/service).

The scope of work includes a specific task and associated deliverables that requires the performer to develop and submit detailed technical methodology documentation for the new National Fire Risk Index. Requiring this technical documentation will ensure a maximum level of technical knowledge transfer from the performer to the US government in support of maintaining the the National Fire Risk Index. Further, FEMA/UFSA is requiring, per the statement of work, that the performer transition the derivative data for the National Fire Risk Index into FEMA/USFA’s existing enterprise geospatial environments in fully accessible and interoperable data formats. These measures remove all potential barriers to competition before any subsequent acquisition for follow-on service in future development can occur.

12. DHS/FEMA intends to post the requirement pursuant to FAR 13.501(a)(1)(iii) and 6.305(a) or for brand name FAR 13.501(a)(1)(iv) and 5.102(a)(6).

13. Technical/Requirements Personnel Certification. I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Threshold (> $250,000) pursuant to FAR Subpart 13.5, including Brand Name

Sole Source Justification for Simplified Acquisitions under the Test Program for Certain Commercial Items for acquisitions exceeding $250,000, including brand name for use when applicable.

SSJ No.: XX-XXX -