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Department of the Interior Bt,Jreau of Safety and Environmental Enforcement

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

(JOFOC for Acquisitions > SAT)

Opt1onarror Acqs s SAT}

I recommend that tpe BUREAU OF~rv ar:id Envlronrllental Enforcement tBSEE . I use other than full and open compeht1on fc:ir the acquisition of the following supphe or services If thts acqu1s1tlon 1s to be made with only one source or a llm1ted numt:>er of sources, negotiations will be conducted with the indicated proposed supplier(s)

1. Nature/Descript ion of the Acquisition [FAR 6.303-2(b)(2)J This is a sole source action to b

-Identify one statutory authorify for this acquisition to be conducled under "other than full and open competition" procedu~s [FAR 6.303-2(b)(4)]. Provide narrative justification associated with the respective stated authorify In block number 15.

THE COMPmTION IN CONTRACTING ACT OF 1984 (P.Lta-369)

8. !)(' 41 USC 253(c)(1)- OnlJ on. responslbla sourca

This authority shall be used In preference to the Public Interest justltlcatlon. Itshall notbe used when any of the other

circumstances are appllcable. (Explain what makes this contractor the only ress>,c;>nslble source: Le.. does this proposed

c;:c;>ntractor .~ve ~llltfes Qr equJpment th!lt Is speclalliec:t and vital to the effort? Is t~~roposed contractor the~ one that

effort? Why won't any othet prc>duct or service satisfy the need? Is the acquisition the result ofan unsolicited research proposal [see FAR 6302-1 (a)(2)(1)]1 Deplbe market survey and analysis efforts leading to this conclusion.)

9. r 41 USC 253(c)(2)-Un~l1nd comptllloll '8'1Pq This authority applies In those situations where (1) an \lnusyal and compelling urg~cy precludes f\.111 an open competition and (2) delay In award ofco~ctwould result In serlOUJ Injury, financial or other, to the Government. (Explaln why the agency's need fouhe S\lppli~ orservices IS ofsuch an unus~.al and compelllng urgency that the Government would be seriously Injured L1nless I~ limited the number Of SC>Urc.S. Sollcz~tlon from as many potential sourtaas ls pra~cable under the clrcumstanczes Is required.)

10. r 41 USC 25J(c)(J)-lnchllt.i.'fjl ~llllJD"9"1 q ....dnfr d*valopmantal, or~ capability,.,.. expert ...,,.ces Tlll$ authority appUes When It Is nKiis~rytoaward the ccmtrac:t to ' particularsource or sources In order (1) to establish or mal~ln an 9$Sent1,.1 capadty for-tlieQ~ei:lcal arialyses, '1CJ>foratory studll(!S, i;;r experiments In any field ofscience or technology, or (2) to ~~JIS~ or maintain an ~nttal 'n~!neerlnp. 11!$,ffl'Q~. ~r d"'~lopment capa~lllty to tftt provided by an educational or other nc:>flproflt Institution or a ~.der-.t.ly fl.!n~~ re;~rch and dellelomnent center, or (3) tp acquire the services ofan expert for any curmtt or antlclpateg lltl~,~!~ IJr ~fsp~e. (~ tl1e'pfor>9sed contraaor have facllltles and equipment that are vital In the event of~ n~tlonaJ emergehy7 1$ tile propQ$d CQntractto maintain properly balanced sources ofsupplyfor ~Ing the r~l)lrements Of acquisition ofpt0gra~ In~ Interestof Industrial moblllzatlon7 Is the proposed contract to aeate or mal~teln the required domestic eiiip~billtY for prod~ctlon ticritical supplies by limiting competition to Items manufactured In the l,lnlted States or Qmada1)

11. r 41 USC?U.3(cl(4) ... 1~~-~t This aqthotlty may be ~w~n1ht'ecq\i1Shlon Is to be relrnbursed by a fo~lgn cd\intJ)' th.it requires the product to be obtained from a p1~lar flrm "5$~- In pflkliil Wrltt~n direction such~ a Letter ofOff@r a.,d Acceptance; or, when $t!rYlces are to be perfopn~ or $Upplles ~re to be used Jn the sovereign terr1to7 ofanotier CQl,intr)' a.nd the terms ofa treaty or agre..ment spectfy or Qmlt th so"rc~$10 ~e sc;>llclted. (Cite~ lnternlrtk>nal agreement or treaty.betwee!' the United States and the fQreJgn g~en'lmentor lnte!'natlonal organ1Zat!9n that preclud~ full and open cornpetltlon. Pcovlde the wrlttn

dlreatfQ.rl$ ofthe foreign government reimbursing th' ~gency for the eost ofthe acquisition, which precl1.1des full and open

com~on.)

12. t' ~1 U5~5'(c)(SJ-AuthorlzedorrequlredlJ~ This ~~horlty may be ustld when a stittute expressly a\,lthorlzes trnrt the acqu1$1tlon be made through another agency or from a speclfl~ source.(Clte the ~Qthorlty that expressly aut~ortzes that the acquisition ht! made through another agency or from a spec;!fled source, Clnd a~ch ~ copy of the staMe.) Note: While this statutory except1o0 Includes the small disadvantaged

b"5iness Sea) set-aside prog,.m, a JOFOC Is Jlot reqUlred for this type of procurement.

13. r 41 USC 2$3(~)(1) ... Ntl~ntl Security This !lythc;>rJiY.m@y be used for JIY 1cqUl$lt~n w~n d~osure ofthe Government's needs would compromise national ~c;1.1r1ty. It wlll not l;ie used merely beCaUSC! the acqulsltlon Is claulfled, or merely because access to dassltled matter wlll be nec~ry tc> s1.1!1tnlt aproposal or to perform the contract. (Explain why the disclosure ofthe Govemment's needs would

cc>mPJC>i'n~ the national security or Violate security requirements.)

14. [" 41 use 253(c)(7)- Public lntarest This authority may be used when none of the other authorities above apply. Individual Justification, Seaetarlal approval,

and Congressional notification 30 days before award ofcontract are required.

2

http:dlreatfQ.rlhttp:der-.t.lyhttp:unus~.al

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15.JUmFICATION (Attach additional pages Ifneeded)

(a) Demonstration that the proposed contractor's unkNe qualtflc:atlons orthe nature ofthe acquisition requires use ofthe authority cited [FAR U03-2(b)(5)]. (Prepared by Program Office] Delmar Initiated a Mooring Risk AssessmentJoint Industry Project UIP) which enabled them to receive Input to the ConStat program from Industry experts In 2007. The result of the JIP was Delmar's ConStat risk assessmen~ program which Is a tool developed for use In V!lluatlng risks associated with operating a moored MODU during hurricane season In the GOM. ConStttt uses the most up-to-date BSEE Infrastructure databases to automatically locate and assess the consequences of potential mooring failure to floating facllltles, fixed production factlltles, pipelines, umbilicals, and produdng wells. Since there was no pHl 5iitii watewra(el)i dewlep a Mk155essmtrtt for MeEMft, Be!mca; ereeted th(&tmodel ft-om ground up and quantifies risk as piobGblliij of laiiu1e tiines the Wnsequtl!tes If fidluri! iiiiijjs; Thlii 1iituren11kii thfi coal unlqiie to Pilmar as other tools solely rely on cons,quence-based asse5$mentthat do not take In effect the probability offailure ofspecific mooring components and the probability ofdamages occurring. Therefore only Delmar's risk assessment tool can meet the Government's requirement to use a probability offailure approac:ti In reviewing MODU applications from oll and gas operators.

(b) Describe the efforts taken to ens\.lre offers were solicited from ~many potential sources as Is practicable, Including whether a Government-wide point of entry (GPE) notice was or will be published as required by FAR 5.2 and, If not, which exception under FAR 5.202 applies. (FAR UOJ2(b)(&)J. [Prepared by Program Office]

Apre-19Dcltatlon notice wlll be published via FedB~ps (FBO) announcing the Government's Intent to Issue a sole source contrai:t. In addition, theJustification wUI be published to FBO after award, to ensure that the public Is aware ofthe Intended activity.

(c) Demonstration thirt the anticipated cost to the Government wlll be fair and reasonable [FAR UD3-2fb)(7)]. [Prepared by ConttaGtlng Officer}

The Govemment wlll conduct a cost/ price analysis on the proposal received In accordance with FAR 15.404-1 In order to determinethe cost/ price proposed by the Offeror Is fair and reasonable.

3

15.JUSTIFICATION CONTINUED (Attach addltlonal pages Ifneeded)

(d) Describe the market research that was conducted and the results of that survey. Ifactions were taken by procurement personnel to satisfy this requirement such as a GPE sources sought synopsis, please specify. (FAR 6.103-2(b)(8)J. [Initiated by the Program Office and flnallzed In collaboratlon with the Contracting Offlcer] BSEE uses recommendations from the American Petroleum lnstltute's recommended Practice 9SJ, GOM Jackup Operations for Hurricane Season-Interim Recommendations, 1st edition, to guide BSEE's review and evaluation of the Information and data that demonstrate the jack-up rig's capabllltyto perform on proposed locations. BSEE Is aware ofany other assessment tools available or In the process of being developed that meet the risk assessment criteria that BSEE requires from MODU operators during lease appllcatlon stage. Noaunpettng tnp15w~e cflvnvfpad during market r\e!een:b tbat olfered psobabl~Offalh1Je ofspdc mo= ring cc rnp i:i n111t1 and tile p1e1blbllltf pfclan age "'*"11111 Ing da1 Ing hantu111 wasu11 bat Hr,_uas cuaseqaenL'I! bastd teals exist that lack the functionality of real-time Information on risks to MODUs during hurricane season.

(e) Desalbe any other documentation to support the JOFOC. [FAR U03-2(b)(t)J. [Prepared by Program Offlce] There are many reasons that BSEE believes contrl!;>ute to why more companies have not developed a detailed risk assessment

tool:

The Gulf of Mexico's tropical activity ls unique. The density of the Infrastructure for olJ and gas development has lnaeased greatly In recent years. No other area worldwide has this dense Infrastructure to be concerned about. There W!IS no past data that was accur~ enough to use to develop a risk assessmentfor MODUs. Operators and contractors who work In the Gulf of Mexico have different levels of acceptable risk based on their own co"!"pany's risk moClel. This makes It very difficultfor the l~ustrywork groups to reach agreement on how to measure risk and usually the end product lack details and conslsteney:. ., .

This tool wlll allow robust and conslstenhevlew of jack-up rig fitness during the hurricane season In GOM. Furthermore, the ConStat Risk Assessment tool ls not 5old-Commeidally and Is only available to the JJP partners that cosponsored to "develop this tool, and the BSEE as on of the sponso; IS..obtaining this tool on Ocenslng basis from the contractor ... (f) List sources. Ifany, that exp~, liiWrtung, an Interest In the acquisition. (FAR U03-2(b)(10)].

[Prepared by Program OfflceJ

No other sources have expressed Interest In the acquisition to date.

(g) List the actions the Bureau wlll take to promote competition on any subsequent acquisitions for similar supplles or servlCles. (FAR U03-2(b)(11)]. [Prepared by Contracting Officer]

' With BSEE's continuing responsibility to perform assessments on MODU appllcatlons within the GOM, Delmar's ConStat tool ls the only comprehensive tool that offers detailed assessments needed to make uniform decisions with respect to MODU rig fitness requests received from Industry partners and operators.The BSEE wlll continue Its outreach effort to find competing modelers that have slmllar characteristics and functlonelity ofConStat tool. Ifa suitable tool ls found In next few years, the BSEE wlll utilize full and open competition to obtain the Risk Assessment tool In future. .,

4

UntitledDepartment of the Interior Bt,Jreau of Safety and Environmental Enforcement JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION .(JOFOC for Acquisitions > SAT) .Opt1onarror Acqs s SAT} .I recommend that tpe BUREAU OF~rvar:id Envlronrllental Enforcement tBSEE . Iuse other than full and open compeht1on fc:ir the acquisition of the following supphe or services If thts acqu1s1tlon 1s to be made with only one source or a llm1ted numt:>er of sources, negotiations will be conducted with the indicated proposed supplier(s) approval. The BSEE (formerly Minerals Management Services and Bureau of Ocean Energy Management, Regulation, and EnfQrceml'nt> was one of the part1c1parits and cosponsorer In the Joint Industry Project from which this tool was developed S. .Name of Proposed Source's) Dtlm.ar System,, Irie 8114 Wist Highway 90 Broussard, LA 70518 OUNS: Oe98353 18 6. RliQU-=STING OFFICE CERTIFICATION I certlry tht this recommendation contains the information required by FAR 6.303-2 and its contents are accurate Requesting Office Rep IName S.Title) S1qnatvre; Phone No Jane Powers FOIA Exemption (b) (6) I 504 7362S58 7. PROCUREMENT OFFICE CERTIFICATION I certify that this 1ustificat1on Is accurate and complete to the best of m knowledge and belief. Contrac.tlng Officer (Name) Phone No SagarS. Damania i FOIA Exemption (b) (6) i 703-787 1276 I certify that this ustification IS accurate and complet.!to the best of my knowledge and belief Chief of the Contracting Office !Name) Phone N FOIA Exemption (b) (6) Douglas M Marr .703-787-1324 -Identify one statutory authorify for this acquisition to be conducled under "other than full and open competition" procedu~s [FAR 6.303-2(b)(4)]. Provide narrative justification associated with the respective stated authorify In block number 15. THE COMPmTION IN CONTRACTING ACT OF 1984 (P.Lta-369) 8. !)(' 41 USC 253(c)(1)-OnlJ on. responslbla sourca This authority shall be used In preference to the Public Interest justltlcatlon. Itshall notbe used when any of the other .circumstances are appllcable. (Explain what makes this contractor the only ress>,c;>nslble source: Le.. does this proposed .c;:c;>ntractor.~ve~llltfes Qr equJpment th!lt Is speclalliec:t and vital to the effort? Is t~~roposedcontractor the~one that .effort? Why won't any othet prc>duct or service satisfy the need? Is the acquisition the result ofan unsolicited research proposal [see FAR 6302-1 (a)(2)(1)]1 Deplbe market survey and analysis efforts leading to this conclusion.) 9. .r 41 USC 253(c)(2)-Un~l1nd comptllloll '8'1Pq This authority applies In those situations where (1) an \lnusyal and compelling urg~cyprecludesf\.111 an open competition and (2) delay In award ofco~ctwould result In serlOUJ Injury, financial or other, to the Government. (Explaln why the agency's need fouhe S\lppli~ orservices IS ofsuch an and compelllng urgency that the Government would be seriously Injured L1nless I~ limited the number Of SC>Urc.S. Sollcz~tlonfrom as many potential sourtaas ls pra~cable under the clrcumstanczes Is required.) .and the fQreJgn g~en'lmentor lnte!'natlonal organ1Zat!9n that preclud~full and open cornpetltlon. Pcovlde the wrlttn .ofthe foreign government reimbursing th' ~gencyfor the eost ofthe acquisition, which precl1.1des full and open .com~on.) 12. t' ~1U5~5'(c)(SJ-AuthorlzedorrequlredlJ~ This ~~horlty may be ustld when a stittute expressly a\,lthorlzes trnrt the acqu1$1tlon be made through another agency or from a speclfl~source.(Clte the ~Qthorltythat expressly aut~ortzesthat the acquisition ht! made through another agency or from a spec;!fled source, Clnd a~ch~copy ofthe staMe.) Note: While this statutory except1o0 Includes the small disadvantaged .b"5iness Sea) set-aside prog,.m, a JOFOC Is Jlot reqUlred for this type of procurement. .13. .r 41 USC 2$3(~)(1)... Ntl~ntlSecurity This !lythc;>rJiY.m@y be used for JIY 1cqUl$lt~nw~nd~osureofthe Government's needs would compromise national ~c;1.1r1ty. It wlll not l;ie used merely beCaUSC! the acqulsltlon Is claulfled, or merely because access to dassltled matter wlll be nec~rytc> s1.1!1tnlt aproposal or to perform the contract. (Explain why the disclosure ofthe Govemment's needs would .cc>mPJC>i'n~the national security or Violate security requirements.) .14. [" 41 use 253(c)(7)-Public lntarest This authority may be used when none of the other authorities above apply. Individual Justification, Seaetarlal approval, .and Congressional notification 30 days before award ofcontract are required. .2 15.JUmFICATION (Attach additional pages Ifneeded) (a) Demonstration that the proposed contractor's unkNe qualtflc:atlons orthe nature ofthe acquisition requires use ofthe authority cited [FAR U03-2(b)(5)]. (Prepared by Program Office] Delmar Initiated a Mooring Risk AssessmentJoint Industry Project UIP) which enabled them to receive Input to the ConStat program from Industry experts In 2007. The result of the JIP was Delmar's ConStat risk assessmen~program which Is a tool developed for use In V!lluatlng risks associated with operating a moored MODU during hurricane season In the GOM. ConStttt uses the most up-to-date BSEE Infrastructure databases to automatically locate and(b) Describe the efforts taken to ens\.lre offers were solicited from ~many potential sources as Is practicable, Including whether a Government-wide point of entry (GPE) notice was or will be published as required by FAR 5.2 and, If not, which exception under FAR 5.202 applies. (FAR UOJ2(b)(&)J. [Prepared by Program Office] Apre-19Dcltatlon notice wlll be published via FedB~ps(FBO) announcing the Government's Intent to Issue a sole source contrai:t. In addition, theJustification wUI be published to FBO after award, to ensure that the public Is aware ofthe Intended activity. (c) Demonstration thirt the anticipated cost to the Government wlll be fair and reasonable [FAR UD3-2fb)(7)]. [Prepared by ConttaGtlng Officer} The Govemment wlll conduct a cost/ price analysis on the proposal received In accordance with FAR 15.404-1 In order to determinethe cost/ price proposed by the Offeror Is fair and reasonable. 15.JUSTIFICATION CONTINUED (Attach addltlonal pages Ifneeded) (d) Describe the market research that was conducted and the results of that survey. Ifactions were taken by procurement personnel to satisfy this requirement such as a GPE sources sought synopsis, please specify. (FAR 6.103-2(b)(8)J. [Initiated by the Program Office and flnallzed In collaboratlon with the Contracting Offlcer] BSEE uses recommendations from the American Petroleum lnstltute's recommended Practice 9SJ, GOM Jackup Operations for Hurricane Season-Interim Recommendations, 1st edition, to guide BSEE's review and evaluation of the Information and data that demonstrate the jack-up rig's capabllltyto perform on proposed locations. BSEE Is aware ofany other assessment tools available or In the process of being developed that meet the risk assessment criteria that BSEE requires from MODU operators during lease appllcatlon s(e) Desalbe any other documentation to support the JOFOC. [FAR U03-2(b)(t)J. [Prepared by Program Offlce] There are many reasons that BSEE believes contrl!;>ute to why more companies have not developed a detailed risk assessment .tool: .. ., . This tool wlll allow robust and conslstenhevlew of jack-up rig fitness during the hurricane season In GOM. Furthermore,the ConStat Risk Assessment tool ls not 5old-Commeidally and Is only available to the JJP partners that cosponsored to "develop this tool, and the BSEE as on of the sponso; IS..obtaining this tool on Ocenslng basis from the contractor ... (f) List sources. Ifany, that exp~,liiWrtung, an Interest In the acquisition. (FAR U03-2(b)(10)]. [Prepared by Program OfflceJ No other sources have expressed Interest In the acquisition to date. (g) List the actions the Bureau wlll take to promote competition on any subsequent acquisitions for similar supplles or servlCles. (FAR U03-2(b)(11)]. [Prepared by Contracting Officer] ' With BSEE's continuing responsibility to perform assessments on MODU appllcatlons within the GOM, Delmar's ConStat tool ls the only comprehensive tool that offers detailed assessments needed to make uniform decisions with respect to MODU rig fitness requests received from Industry partners and operators.The BSEE wlll continue Its outreach effort to find competing modelers that have slmllar characteristics and functlonelity ofConStat tool. Ifa suitable tool ls found In next few years, the BSEE wlll utilize f.,