2011-IRS-0554-JOFOC_signed1.pdf

TDF-76-01.6 (03/11)

Prescribed by DTAP Part 1006 (Previous Edition Obsolete)

DEPARTMENT OF THE TREASURY

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(JOFOC)

I recommend that the U.S. DEPARTMENT OF THE TREASURY use other than full and open competition for the acquisition of the following supplies or services. If this acquisition is to be made with only one source or a limited number of sources, negotiations will be conducted with the indicated proposed supplier(s):

1. DESCRIPTION OF SUPPLIES OR SERVICES

The Office of Program Evaluation and Risk Analysis (OPERA) is conducting a multi-phase project involving agent-based simulation research. This contract is seeking a contractor to continue to build upon the prior research and to answer a set of open research questions that have been identified.

This new phase will expand the applicability of emerging simulation and analysis techniques by building upon the agent-based simulation conducted in a recently completed phase of this project.

The new phase will conduct follow on research into experimentation and analysis to increase understanding of individual taxpayer behaviors and potential responses to IRS interventions. The current emphasis is to develop the simulation functionality and peripheral analysis tools that will allow it to begin being more broadly applied by analysts around the Service. The goal of this project is to further the research effort to continue to develop a body of knowledge that can help the Service determine the bundling of education and outreach services to taxpayers and tax preparers.

Period of Performance – 09/26/2011 through 09/25/2012

2. REQUISITION NO.

M-1-M0-22-RO-O27 000

3. COST ESTIMATE

$290,000.00

4. NAME(S) OF PROPOSED SOURCE(S)

Carnegie Mellon University 5000 Forbes Ave.

Pittsburgh, PA 15213-3815

REQUESTING OFFICE CERTIFICATION

I certify that the attached justification is accurate, and contains complete data necessary to support the recommendation for other than full and open competition.

5. REQUESTING OFFICE

REPRESENTATIVE (Name & Title)

Kevin Cecco Acting Director, Office of Program Evaluation and Risk Analysis

(Signature)

For

(Phone No.)

(202) 874-0464

(Date)

9/13/2011

SMALL BUSINESS CERTIFICATION

I have conducted a search of vendor files, Central Contractor Registration (CCR), and the SBA’s Dynamic Small Business Search under the CCR System to locate potential offerors for this procurement. If any were found, a list is attached.

6. SMALL BUSINESS

SPECIALIST

(Name and Title)

LaTonya Richardson

(202) 283-6886

PROCUREMENT OFFICE CERTIFICATION

> This requirement [ ] will, [ X ] will not, provide for a bridge contract I certify that this submission is accurate, and that it contains complete information necessary to enable Approving Officials to make an informed recommendation for approval or disapproval.

7. ASSIGNED CONTRACTING

OFFICER (Name)

Debra M. Jacobs

(202) 283-1277

08/2/2011

Before requesting this procurement, state one statutory authority for this procurement to be conducted under “other than full and open competition” procedures. Provide narrative justification associated with the respective state authority in block number 15.

THE COMPETITION IN CONTRACTING ACT OF 1984 (P.L. 98-369)

(place “X” in appropriate box) 8.

X

41 USC 253(c)(1) – Only one responsible source; or brand name specification

This authority shall be used in preference to the Public Interest justification. It shall not be used when any of the other circumstances is applicable. (Explain what makes this contractor the only responsible source i.e., Does this proposed contractor have facilities or equipment that are specialized and vital to the effort? Is the proposed contractor the only one that can meet critical schedules? Does the proposed contractor have prior experience of a highly specialized nature vital to the effort? Why won’t any other product or service satisfy the need? What are the unique features of the product that are unavailable in any other brand or product? Why was this particular product and/or vendor chosen? Are these features available in other models?

Describe the rationale for the brand name specification. Describe the market survey and analysis efforts leading to this conclusion. In addition, for brand name, indicate that “the use of such descriptions in the acquisition is essential to the Government’s requirements, thereby precluding consideration of a product manufactured by another company.”)

9.

41 USC 253(c)(2) – Unusual and compelling urgency

This authority applies in those situations where (1) an unusual and compelling urgency precludes full and open competition, and (2) delay in award of contract would result in serious injury, financial or other, to the Government. (Explain why the agency’s need for the supplies or services is of such an unusual and compelling urgency that the Government would be seriously injured unless it limited the number or sources. Solicitation from as many potential sources as is practicable under the circumstances is required.) Note: The total period of performance under this authority is limited to the minimum contract period necessary to meet the requirements and to enter into another contract through the use of competitive procedures, and may not exceed one year unless the head of the agency entering into the contract determines that exceptional circumstances apply. The determination is in addition to the approval of the justification.

10.

41 USC 253(c)(3) – Industrial mobilization, engineering, developmental, or research capability; or expert services

This authority applies when it is necessary to award the contract to a particular source or sources in order (1) to maintain a facility, producer, manufacturer, or other supplier available for furnishing supplies or services in case of a national emergency or to achieve industrial mobilization, or (2) to establish or maintain an essential engineering, research, or development capability to be provided b an educational or other nonprofit institution or a federally funded research and development center, or (3) to acquire the services or an expert for any current or anticipated litigation or dispute. (Does the proposed contractor have facilities and equipment that are vital in the event of a national emergency? Is the proposed contract to maintain properly balanced sources of supply for meeting the requirements of acquisition of programs in the interest of industrial mobilization? Is the proposed contract to create or maintain the required domestic capability for production of critical supplies by limiting competition to items manufactured in the United States or the United States and Canada?)

11.

41 USC 253(c)(4) – International agreement

This authority may be used when the acquisition is to be reimbursed by a foreign country that requires the product to be obtained from a particular firm as specified in official written direction such as a Letter of Offer and Acceptance; or, when services are to be performed, or supplies are to be used in the sovereign territory of another country and the terms of a treaty or agreement specify or limit the sources to be solicited. (Cite the international agreement or treaty between the United States and the foreign government or international organization that precludes full and open competition. Provide the written directions of the foreign government reimbursing the agency for the cost of the acquisition, which preclude full and open competition.)

12.

41 USC 253(c)(5) – Authorized or required by statute

This authority may be used when a statute expressly authorizes that the acquisition be made through another agency or from a specified source. (Cite the authority that expressly authorizes that the acquisition be made through another agency or from a specified source, and attach a copy of the statute.) Note: While this statutory exception includes the small disadvantaged business 8(a) set-aside program, a JOFOC is not required for this type of procurement unless the amount exceeds $20 million.

13.

41 USC 253(c)(6) – National Security

This authority may be used for any acquisition when disclosure of the Government’s needs would compromise national security. It will not be used merely because the acquisition is classified, or merely because access to classified matter will be necessary to submit a proposal or to perform the contract. (Explain why the disclosure of the Government’s needs would compromise the national security or violate security requirements.)

14.

41 USC 253(c)(7) – Public Interest

This authority may be used when none of the other authorities above apply. Individual justification, Secretarial approval, and Congressional notification 30 days before award of the contract are required.

15. JUSTIFICATION (ADD PAGES IF NEEDED)

A. DEMONSTRATION THAT THE PROPOSED CONTRACTOR’S UNIQUE QUALIFICATIONS OR

THE NATURE OF THE ACQUISITION REQUIRES USE OF THE AUTHORITY CITED.

This work builds on approximately six years worth of research effort and simulation software developed at Carnegie Mellon University at significant cost to the Service in dollars and staff effort to familiarize CMU staff with IRS goals and processes. The Service investment leveraged a multi-million dollar simulation engine that is proprietary to Carnegie Mellon University and would require approximately two years and $2 million to replicate, even if the Service could locate a vendor with the requisite combination of skills and experience.

The key contractual leader of this effort is Professor Kathleen Carley of Carnegie Mellon University (CMU). She has led the CMU effort from the beginning and is an experienced professional with significant experience in advanced modeling techniques, and has supported many government agencies in the area of modeling, simulation development, analysis, and related research for many years. In additional to being the project leader Dr. Carley is currently the principal researcher and intellectual leader, who designed, created and implemented the simulations and analysis in the earlier phases of this project. Therefore, OPERA, in order to take advantage of her Knowledge and abilities, wants to continue to contract with Professor Carley and her Center at CMU to the continuity of effort we require to meet the immediate and urgent goals of the Service as stipulated in the Taxpayer Assistance Blueprint (TAB).

As indicated previously, the above requirements extend the knowledge, tools, and techniques developed during the initial phases of this project. Carnegie Mellon University holds exclusive rights to the underlying simulation engine that is being applied for this research.

They will continue to make this engine available at no cost to the Government for the purpose of continuing the research and for Government implementation of successful research efforts.

Dr. Carley received her Ph.D. in Sociology from Harvard University. She is an internationally recognized authority on the construction and analysis of multi-agent computational models of complex social systems and the generation of theoretical propositions through computational analysis. Her work combines ideas from organizational theory, sociology, social networks, distributed artificial intelligence, graph theory, communication, computational sociology, and computational organization theory. In addition, she employs a wide range of methodologies including computational analysis, simulation, social networks, statistics, computer aided text analysis, and analysis of archival data. She has developed new statistical tools for analyzing sets of social networks and new computer aided techniques for analyzing texts, focusing on relationships between concepts. Currently, Dr. Carley is Professor of Computation, Organization and Society at Carnegie Mellon University. Pittsburg, PA.

The same research process that was successfully applied to the previous phases of this project will be used. The existing foundational agent-based simulation environment called Construct will be used to produce the desired representations of individual behavior and the relevant population demographics. This will allow Dr. Carley and her group at Carnegie Mellon to focus on model development issues directly pertinent to IRS without investing significantly in simulation infrastructure. The CMU team is in the unique position of possessing knowledge of the intricacies of tax avoidance schemes and IRS problems in addressing the schemes. They have experience with related data and the appropriate domain understanding.

Dr. Carley and her CMU group can begin work on this new phase without delay due to their existing involvement with the project. To expend the time necessary to allow new contractors the opportunity to bid on this project would allow unacceptable delays and additional costs not necessarily beneficial to the Service.

Based on existing capabilities and knowledge, we request the selection of Carnegie Mellon University as a sole source contractor to satisfy this effort.

B. DESCRIBE THE EFFORTS TAKEN TO ENSURE OFFERS WERE SOLICITED FROM AS MANY

POTENTIAL SOURCES AS IS PRACTICABLE, INCLUDING WHETHER A GPE NOTICE WAS

OR WILL BE PUBLISHED AS REQUIRED BY SUBPART 5.2 AND, IF NOT, WHICH EXCEPTION

UNDER 5.202 APPLIES.

These required services are available from only one responsible source. Since CMU is the sole owner of the Construct software and only they have access to the code to make modifications, it is not technically feasible for another company to provide upgrades and/or enhancements to the product. However, this sole-source justification will be posted to FEDBIZOPPS upon approval by the SB Specialist. In the event that another source comes forward, they will be provided a copy of the statement of work.

C. DEMONSTRATION THAT THE ANTICIPATED COST TO THE GOVERNMENT WILL BE FAIR

AND REASONABLE

The Government will determine costs to be fair and reasonable by comparison with previous prices paid and the government estimate.

D. DESCRIBE THE MARKET SURVEY THAT WAS CONDUCTED AND THE RESULTS OF THAT

SURVEY. IF ACTIONS WERE TAKEN BY PROCUREMENT PERSONNEL TO SATISFY THIS

REQUIREMENT SUCH AS A GPE SOURCES SOUGHT SYNOPSIS, PLEASE SPECIFY.

In an informal market survey we identified two other University / Lab based software packages identified that do agent based simulation; SEAS out of Purdue University and REPAST from Argonne National Laboratories. These sources have the following critical shortcomings that fail to meet the demands of this acquisition:

1) The simulations do no represent multi-dimensional networks sufficiently to generate the detailed results the Service seeks concerning Taxpayer behavior, and

2) The staffs have no familiarity with tax administration related modeling and analysis.

3) Neither staff has an intellectual leader with Professor Carley’s stature and experience across the organizational and computational sciences.

E. DESCRIBE ANY OTHER DOCUMENTATION TO SUPPORT THE JOFOC.

N/A

F. LIST SOURCES, IF ANY, THAT EXPRESSED, IN WRITING, AN INTEREST IN THE

ACQUISITION

Carnegie Mellon University

G. LIST THE ACTIONS THE BUREAU WILL TAKE TO PROMOTE THE COMPETITION ON ANY

SUBSEQUENT ACQUISITIONS FOR SIMILAR SUPPLIES OR SERVICES

It is not possible for this requirement to be anything other than sole-source based on the information in Blocks 15a and 15b.

H. STATEMENT THAT REQUIREMENT DOES NOT RESULT FROM A LACK OF PLANNING OR

THE EXPIRATION OF FUNDS.

This requirement does not result from a lack of planning or the expiration of funds.

16. COMPETITION REVIEW BOARD RECOMMENDATION (OPTIONAL)

[ ] APPROVE [ ] DISAPPROVE

(Name and Title)

(Name and Title) (Signature) (Phone No.) (Date)

ADDITIONAL APPROVALS

O

VE

R

$6

,0

17. BUREAU COMPETITION

ADVOCATE (Name & Title)

[ ] APPROVE

[ ] DISAPPROVE

R $1

2.

M

IL

LI

N

18. BUREAU HEAD OR

SENIOR EXECUTIVE

SERVICE DESIGNEE

(Name & Title)

(Signature)

R

.5

M

IL

LI

N

19. SENIOR

PROCUREMENT

EXECUTIVE (Name & Title)

NOTE: Each review must be preceded by lower level approval(s). e.g., over $62.5 million all approvals are required. IN NO CASE WILL AN INDIVIDUAL SIGN MORE THAN ONE APPROVAL

LEVEL.