V3212040_IMPLAN24_SSJ_V1.pdf

Procurement Request No. V3212040

V220T.12 (12/23)

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE ASSISTANT SECRETARY FOR RESEARCH AND TECHNOLOGY

VOLPE NATIONAL TRANSPORTATION SYSTEMS CENTER (VOLPE CENTER)

Economic Analysis Division (V321)

SOLE SOURCE JUSTIFICATION

A. Description of Supplies/Services. The Volpe National Transportation Systems Center (Volpe Center) has been tasked by the U.S. Department of Agriculture (USDA) Agricultural Marketing Service (AMS) to produce a new version of its 2019 report The Importance of Inland Waterways to U.S. Agriculture. A central component of this project is an economic impact analysis of inland waterways on agricultural markets. Specially, Volpe will be analyzing near-, and long-term, these effects on employment, labor income, gross domestic product, and economic output across multiple U.S. states, including the states covered in the previous 2019 report (AR, IL, IN, IA, KY, LA, MN, MS, MO, OH, TN, and WI), as well as an additional eight states (AL, ID, KS, NE, OH, OK, OR, WA). This analysis will look to extend the previous one done in 2019, using the same analytical approach and methodology, describing the economic benefits accrued to the agriculture industry and the public via inland waterways by commodity, including corn, wheat, soybeans, rice, and fertilizer. The task will also draw from recent USDOT studies to describe the ability of inland waterways to expand forecasted traffic volumes relative to highways and railways. To ensure analytical consistency with the prior 2019 study, and match the economic impact methodology, which is critical as the new study is considered an update of the 2019 version, it is necessary to use the same IMPLAN economic impact model software. Using the IMPLAN model, which is distributed by IMPLAN in Huntersville, North Carolina, maintains consistency with the econometric and input-output framework behind estimating the economic impacts of the inland waterway on agriculture used in the previous study, allowing for meaningful comparisons. The IMPLAN model allows for analyzing the economic impact of changes in the composition and magnitude of spending by industry by U.S. state, and then tracing the transmission mechanism through which these changes will affect the broader economy (via changes in income and employment).

B. Market Research. IMPLAN is the sole source provider of the IMPLAN model software, therefore the only way to purchase this software is through a sole source with IMPLAN (the software does not operate through any third-party resellers or Government-wide acquisition vehicles such as GSA, FAA SAVES, or SEWP).

IMPLAN is the only entity licensed to provide the IMPLAN model software.

C. Supporting Rationale.

(1) Sole Source: Only one responsible source and no other supplies or services will satisfy agency requirements.

Due to the specific technical requirements of the USDA Inland Waterways study, and the need to have an analytical consistency with the previous study when estimating economic impacts, it is essential to use the same IMPLAN model as used for the 2019 study. This will allow for a consistent and credible analysis that is comparable with the 2019 study.

Based on market research conducted from August through September 2023, when the SOW was being developed, the requirement to use the IMPLAN model was confirmed and that there are no direct substitutes. The license for this product is only available directly through IMPLAN. Not using IMPLAN would mean the Volpe Center’s is unable to deliver the technical and comparable analysis required for the USDA Inland Waterway study. The Volpe Center risks the following consequences if the IMPLAN model is not contracted for economic impact analysis:

Procurement Request No. V3212040

V220T.12 (12/23)

(i) The Volpe Center would not be able to perform the work as described in the SOW, that requires a consistent and credible economic impact analysis (directly comparable with the previous study)

(ii) The Federal Government would not be able to complete its budgeted and require work on analyzing the importance and economic impact of the inland waters on the U.S. agriculture industry in a manner consistent with previous study.

(2) Brand Name: N/A

(3) Unusual and Compelling Urgency: N/A