Tennessee Valley Authority, 1101 Market Street, (WR 3H-C), Chattanooga, Tennessee 37402-2801

70 -- SUBREGIONAL ECONOMIC MODEL POC Contracting Officer: James L. Posey, Phone 423/751-2076. TVA wishes to solicit information relative to the potential purchase of the following goods or services: A PC-based multi-area economic forecasting and simulation model. The model must be customized for each of the seven economic subregions of TVA's power service area; these subregions are composed of county aggregations. The economic model will be used in-house by TVA. TVA staff will use proprietary data to define and validate scenarios used to produce economic forecasts and simulations of economic impacts in said subregions. Such analyses include studies of economic development proposals, transportation infrastructure, and electricity prices. The economic model must have a proven track record of such use. A record of publication of professional papers on the economic model and demonstrated use thereof by other government agencies and electric utilities over several years will serve to substantiate this. Necessary requirements for the economic model are as follows: 1) The economic model must be customized for the seven TVA-specified subregionis so that it reasonably reflects the historical data for the subregional economics. Historical data used to calibrate the model must be provided. 2) The model must be a multi-area model for the seven subregions, that is, the simulations and forecasts for any one subregion must be interlinked with and influence the results of the other subregions as according to economic theory. 3) The model must have comprehensive economic sector detail. At a minimum, the model must be specified in employment and income and/or product at the standard industrial classification (SIC) level of sector detail described in the attachment. The model must also provide information on major income aggregates, population, and labor force. 4) The model must provide information on major income aggregates, population, and labor force. 4) The model must also provide this output over both short-term and long-term forecast horizons on a year-by-year basis. 5) The model must be sensitive to and capable of simulating the economic effects of changes in a variety of economic variables, specifically including labor costs and electricity prices. 6) The model is to be PC-based, resident on TVA computers, and run by TVA staff. The vendor must be capable of providing excellent support and training of TVA staff as needed and must be able to provide telephone consultation. The vendor must be able to deliver the model within two months of entering into a contract with TVA. Only written responses with complete documentation of qualifications will be accepted. Vendors should provide sufficient information allow TVA to determine the adequacy of the products and services being described to meet TVA's needs. For more information contact Contracting Officer, Fax: 423/751-7222. (134)

Loren Data Corp. http://www.ld.com (SYN# 0371 19960515\70-0003.SOL)