JA_LRE-15-0007.pdf

Control No: LRE-JA-15-0007

Justification Review Document for Other than Full and Open Competition

Program/Equipment: FY15 Soo Major Rehabilitation Report (MRR): Economic Impact Analysis Software

Authority: FAR 6.302-1 (a)(2)(ii)(A)- Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.

Amount: $121 ,500.

Prepared by:

Typed Name: Tonya K. Harrington Telephone:

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Contracting Officer:

Typed Name: Robert W. Austin

Signature:

Technical Representative:

Typed Name: Tonya K. Harrington

Signature:

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Requirements Representative:

Typed Name: Steven G. Check

Signature:

Telephone:

Date Reviewed:

Telephone:

Date Reviewed:

Telephone:

Date Reviewed:

313-226-3443

313-226-6819

313-226-3443

313-226-207 4

REVfEWS: I have reviewed this justification and find it adequate to support other than full and open competition .

Program Manager

Typed Name: Steven G. Check

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Signature: ORY.1 096027083

District Contracting Chief

Name: Robert W . Austin

Signature:

District Office of Counsel

Name:

Signature:

Deputy for Small Business

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Typed Name: ______________ _

Signature:

Field Competition Advocate

Name: LTC. James L. Booth , Deputy Commander, Detroit District

Signature:

Telephone:

Date Reviewed :

Telephone:

Date Reviewed:

Telephone:

Date Reviewed :

Telephone:

Date Reviewed :

Telephone:

Date Reviewed :

313-226-207 4

313-226-6819

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Justification Review Document for Other than Full and Open Competition

1. Contracting Activity:

USACE - Detroit District- Contracting Branch 477 Michigan Avenue, Room 700 Detroit, Michigan 48226

2. Description of Action: .

This simplified contract action involves a new contract for purchase of an economic impact software model in support of the Major Rehabilitation Report (MRR), Soo Locks, Sault Ste. Marie, Michigan. This is to be a firm fixed price purchase of commercial software with a usage license. The supplier offers annual license renewal that may be considered as a follow-on action in the future. This program is O&M funded.

3. Description of Supplies/Services:

The REM I model is an economic impact model that is used for dynamic economic forecasting and policy analysis. It is a commercial software model that provides regional economic forecasting and policy analysis and databases which fully integrate economic theory to provide year-by-year (i.e., dynamic) simulation forecasts. The REM I model uniquely incorporates four types of assessment tools (econometric, input-output, computable general equilibrium and economic geography models) into a single model with a feature suite that is not currently offered in any other pre-programmed model. The model satisfies an essential research, development, and reporting capability within the U.S. Army Corps of

I

Engineers. It is used across multiple Corps districts to assess potential and actual impacts to critical resources and infrastructure. It is the only model that integrates econometric, input-output, computable general equilibrium and economic geography models into one tool to provide truly dynamic simulation forecasts.

The REM I 9-region, multi-sector model, including technical assistance with modeling and training as required and unlimited phone support is valued at $121 ,500.00.

4. Authority Cited:

The statutory authority permitting other than full and open competition is 10 U.S. C.

2304(c)(1 ), as implemented by FAR 6.302-1 (a)(2)(ii)(A), Only one responsible source and no other supplies or services will satisfy agency requirements -- it is likely that award to any other source would result in substantial duplication of cost to the Government that is not expected to be recovered through competition.

5. Reason for Authority Cited:

The Corps of Engineers has determined that the software developed by Regional Economic Models, Inc. (REM I) is currently the only available source of prepared economic impact models that can satisfy the Government's requirements. Other

Control N<K LRE-JA-15-0007 companies have attempted to introduce competitive software products in recent years, but each has subsequently withdrawn from this market segment.

The only recognizable alternative to this sole source procurement would be to purchase professional software development and programming services with the intent that an entirely new model be created to compete with REM I. Such an action would involve development costs and a timeline that could not be accommodated.

The costs are not knowable, but they would be significant and would result in a net increase in cost to develop and utilize an alternative source for the subject action.

By purchasing a software installation and a license from REMI, the Government has the benefit of using a mature product for which research, development, and startup costs have already been borne and distributed across REMI's customer base. The Government will be purchasing the software model from a source that has been limited by actual market factors and not by an administrative or procedural restriction.

6. Efforts to Obtain Competition:

Market research as described in paragraph 8 was conducted to determine if other sources were available for potential competition. Corps of Engineers personnel conducted internet searches, catalog research, reviews of past projects, telephone interviews with potential sources, and meetings with vendors who represent available models. To date, no other sources have expressed an interest and ability to support the contract action as needed. The proposed sole source element of this procurement will be noticed in accordance with FAR 5.201, and any communications or proposals received shall be considered.

7. Actions to Increase Competition:

The Corps of Engineers will publicize the contract action. Any communications from interested providers shall be received and considered. The Corps of Engineers will also continue to stage regular industry days and conferences to invite comment and input from contractors on the means and methods by which our contract requirements are conceived and executed.

8. Market Research:

Immediately prior to the development of the proposed specification, Corps of Engineers personnel conducted market research to determine the availability of open market sources for the procurement. Efforts included the following:

A. Contacting knowledgeable individuals in Government and industry regarding available models to meet requirements.

B. Reviewing the results of recent market research undertaken to meet similar or identical requirements.

C. Reviewing model publications and other generally available regional modeling literature published by government, educational institutions and private industry as available on-line.

9. Interested Sources:

No other sources have expressed either a written or verbal interest in this procurement.

10. Other Facts:

This procurement action is similar to a software purchase that was researched and fulfilled by Purchase Order W911XK-11-P-0066 in July 2011. At that time, the Corps of Engineers similarly concluded that there was only one available supplier who could satisfy the requirement. The software license from that action currently resides with the USAGE Chicago District.

CERTIFICATIONS

11. Technical Certification:

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Tonya K. Harrington RealOJJiaLEC.QJlOQJJst •, o;9;,, 11y,;gnedby

HA'KKINGTUI\1.1 UN. HARRINGTON.TON YAK1246232985

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12. Requirements Certification:

Telephone:

Date Reviewed:

313-226-3443

I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Typed Name: Steven G. Check Project Manager

Telephone:

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13. Fair and Reasonable Cost Determination:

313-226-207 4

I hereby determine that the anticipated cost to the Government for this contract action will be fair and reasonable. The estimated cost is based on extensive market research that included a review of recent similar purchases by the Government.

Typed Name: Robert W. Austin Contracting Officer

Signature:

14. Contracting Officer Certification:

Telephone:

Date Reviewed:

313-226-6819

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

Typed Name: Robert W. Austin Contracting Officer

Signature:

Telephone:

Date Reviewed:

313-226-6819