Department of the Interior, Minerals Management Service, Procurement Operations Branch, MS2500, 381 Elden Street, Herndon, Virginia 20170-4817

D -- IMODEL LEASING SIMULATION PROGRAM SOL 1435-01-99-RP-16091 DUE 072199 POC Dotty Quinn, Contracting Officer, (703) 787-1365 This notice is a combined synopsis/request for quotation for a commercial item in accordance with Federal Acquisition Regulation Part 13 and Subpart 12.6. This announcement constitutes the only request; quotations are being requested and a written Request for Quotations will not be issued. This acquisition is a 100% set aside for Small Business. The Government estimates the effort at 6 months and cost estimated of $50,000 to $100,000. PLEASE READ THIS ENTIRE NOTICE CAREFULLY AS IT CONSTITUTES THE ONLY NOTICE THAT WILL BE ISSUED. PROJECT: Upgrade existing IMODEL leasing simulation program. TASKS: 1. Rewrite the IMODEL simulation program in C++ programming language. 2. Ensure that changes in minimum bid levels are being addressed appropriately within the model. 3. Provide technical documentation and a revised user's guide for IMODEL. The upgraded system must be Y2K compliant. Contractor must provide a Y2K compliance certification with the system documentation. INTRODUCTION: Among Minerals Management Service's (MMS) responsibilities is the periodic estimation of bonus bids likely to be generated by Outer Continental Shelf (OCS) gas and oil lease sales as well as the evaluation of alternative leasing systems, including the provisions of the Deep Water Royalty Relief Act (DWRRA) of 1995. In response to these responsibilities, the MMS conducts analysis that assists in the development of bonus revenue estimates and examines the effects of alternative leasing systems and royalty relief options as applied to specific lease sales. OBJECTIVE: The major analytical tool used by the MMS in developing bonus revenue estimates and evaluating the effects of alternative leasing systems is the IMODEL leasing simulation program. In projecting bonus receipts, IMODEL allows the MMS to simulate the potential response of the oil industry to proposed schedules of OCS gas and oil lease sales. For the sales within a proposed schedule, IMODEL estimates the number of tracts that could be acquired and the bonus that will be received in each sale, based on the geological and economic assumptions specified by the MMS. These estimates form the basis of the agency=s bonus forecasts. In examining alternative leasing systems, IMODEL can simulate the potential effects of changes in leasing parameters from values that traditionally are used in OCS lease sales. IMODEL aids the MMS in studying potential effects (relative to a set of baseline lease terms and conditions) of changes in minimum bid level, rental rate, length of lease term, and royalty rate, either singly or combined, on bidding activity in a sale. The original IMODEL simulation program was developed more than ten years ago. Although IMODEL has withstood the test of time and continues to be a valuable analytical tool, modification of the model is needed to meet evolving needs. This contract will allow for the improvement of IMODEL by incorporation of features to refine and expand the capability available in the program. BACKGROUND: IMODEL consists of about 10,000 lines of code (excluding comments), of which about 6,000 lines are in FORTRAN and 4,000 lines are in C. Some of the FORTRAN code is unchanged from the original version of IMODEL (1984-85) and most of the C code dates from the creation of the Windows interface in 1993-94. Recoding the program will provide the opportunity to make some overdue structural changes including the use of Aobject-oriented programming@ features of C++. This will enable large data structures to be handled more efficiently within the model. The goal of the recoding is to make the code simpler, more modular and more transparent, so that any future revisions to the model would be simpler to implement. The IMODEL simulation program is game theoretic. It represents the bidding process as a non-cooperative game among an uncertain number of bidders each with private information. Two key parameters are set by the user: the expected number of bidders and a parameter related to the amount of private information available to each bidder. One limitation is that these parameters must have the same value for all tracts in a sale segment. Another key determinant of tract value, the success probability, is also set by the user and must be the same for all tracts in a sale segment. Revising the bidding model will provide the basis for evaluating the soundness of the current model and provide the opportunity to make changes in the specification of bidding parameters, as appropriate. TASK 1. Rewrite in C++ Programming Language. Rewrite the IMODEL simulation program in C++ to allow the program to function more effectively in a Windows operating environment. TASK 2. Sensitivity of Bids to Changes in Minimum Bid Levels. Ensure that changes in minimum bid levels are being addressed appropriately within the model, especially as they apply to bid formulation. The contractor will provide an option within the model that allows the user to limit the field size classes that respond to changes in minimum bid levels. TASK 3. Technical Documentation. Provide technical documentation and a revised user's guide for IMODEL that explains the features developed in Tasks 1 and 2. REPORTS AND DELIVERABLES: 1. Progress Reports. Send monthly progress reports to the COTR by the 15th of each month during the contract. The progress reports shall include: a summary of work performed in the preceding month and correspondence to the schedule in the approved work plan; a summary of problems encountered and solutions proposed; and a description of any other actions that could affect the successful completion of the contract. 2. Draft Work Plan. Within 15 days of contract award, the Contractor shall meet with the Contracting Officer's Technical Representative (COTR) and provide a written Draft Work Plan that describes how the tasks will be accomplished. The COTR will provide the Contractor by telephone comments on the plan (with follow-up in writing) within 5 days. The review will be completed and the Contractor contacted no later than 20 days after the effective date of the contract. 3. Final Work Plan. Final Work Plan that responds to the review comments on the Draft Work Plan. The Final Work Plan shall be submitted within 30 days of contract award. 4. Draft Computer Program and Technical Documentation. Within four months of contract award, the Contractor shall submit to the COTR a working computer program incorporating the modifications in Tasks 1 and 2 as well as draft technical documentation. At that time the MMS will have 30 days to test the program and suggest revisions. Agreed upon revisions will be incorporated in the upgraded version of IMODEL. 5. Final Computer Program and Technical Documentation. Within six months of contract award, the Contractor shall provide the final, upgraded version of IMODEL and the associated technical documentation and user's guide. The upgraded version of IMODEL shall be provided on 3.5 inch microdisks, capable of running in IBM-compatible computers. The technical documentation and user's guide shall be provided as a printed report as well as computer files either in Microsoft Word orCorel WordPerfect. HOW TO RESPOND: In order to compete for this project, interested parties must demonstrate that they are qualified to perform the work by providing before 4:00 PM, ET, July 21, 1999, a brief Capabilities Statement and Cost Proposal. Capabilities Statement detailing: 1. key personnel (those who would have the primary responsibility for performing and/or managing the project) with their qualifications and specific experience; 2. your organization=s experience with programming and developing simulation models and a description of your facilities; and 3. past performance with specific references (including project identifier/ contract number and description, period of performance, dollar amount, client name and current telephone number) for work of this nature that your personnel or organization is currently performing or has completed within the last year. Include any negative references and your rebuttal explaining your side of the story. All references will be checked to validate the information provided. Cost Proposal citing the price for Task 1, 2, and 3. Offerors shall submit an original and five copies of Capabilities Statements and Cost Proposal to Ms. Dotty Quinn, Contracting Officer, Minerals Management Service, Procurement Operations Branch, 381 Elden St., MS 2510, Herndon, VA 20170-4817. Your Capabilities Statement will be evaluated based on the following: 1. the skills, abilities, education, professional credentials and experience of proposed key personnel; 2. the experience of your organization, including number, size, location of projects, and complexity of similar projects completed by the proposed project team and your organization to determine your potential for success and contract award; and 3. the past performance of your organization, including adherence to schedules and budgets, effectiveness of cost control, the acceptability of previous products delivered, effectiveness of program management, and the offeror=s willingness to cooperate with the customer in both routine matters and when confronted by unexpected difficulties. Cost Proposal based on Task 1, 2, and 3 for best value. Following review of all Capabilities Statements and Cost Proposals received, those firms judged most qualified to successfully perform the effort and best value may be asked to provide an oral presentation during the week of August 2, 1999. The oral presentation will be 45 minutes or less and must be given by a key person assigned to this project rather than corporate sales or executive personnel who will not work on the project. The government will evaluate each oral presentation to determine the most effective firm, including schedule, coordination, options, technology, testing and methodology and best value. There will be a question and answer session lasting 45 minutes following each presentation. Oral presentations will take place in Herndon, VA. Each firm invited to provide an oral presentation must submit the following documents by 4 PM, ET, August 2, 1999: (1) a written oral presentation summary in bullet form; and (2) a project plan. The evaluation criteria are equal in value and a best value analysis will determine which offeror will receive the award. Price to perform the basic work will be evaluated along with other factors. The following provisions Federal Acquisition Regulations clauses are incorporated by reference: FAR 52.212-3, Offeror Representations and Certifications-Commercial Items (MAY 99), 52.212-4 (MAY 99), 52.212-5, Contract Terms and Conditions Required to Implement Statutes or Executive Orders-Commercial Items (MAY 99). In accordance with FAR 39.106 the software shall be certified to be year 2000 compliant. Offerors can retrieve these clauses on the INTERNET at www.gsa.gov/far or obtain a hard copy of the clauses by faxing a request to Ms. Dotty Quinn on (703) 787-1387, or e-mail to dotty.quinn@mms.gov. Questions about this requirement must be in writing and submitted by fax or e-mail. Telephone inquiries are strongly discouraged. All inquiries must include the RFQ number, your full name, organization name, address, phone and fax numbers and be received before July 16, 1999, noon. It is the responsibility of the offeror to ensure the Capabilities Statement and written presentation summary, schedule and pricing are received before the date/time shown above. Small Disadvantaged Business Regulatory Change Notice: The Federal Acquisition Regulation authorizes the use of price and evaluation credits in industries where SDB prime contractors and subcontractors have been underutilized. We ask that you inform your SDB subcontractors that they should contact SBA's Office of Certification and Eligibility at 800-558-0884 to obtain an application, or to log on to SBA/s Website (www.sba.gov.sdb). If you are an SDB prime contractor who is not SBA-certified, we also ask that you apply for certification. Effective October 1, 1998, certified SDB prime contractors were eligible for a price credit when bidding on Federal prime contracts. Effective January 1, 1999, prime contractors who subcontract with SBA-certified or self-certified SDBs are eligible for evaluation credits. Please note that prime contractors may continue to rely on self-certification of their SDB subcontractors through October 1, 1999. For solicitations issued on or after October 2, 1999, prime contractors must use SDB-certified SDB subcontractors in order to be eligible for evaluation credits. Posted 06/30/99 (W-SN349131). (0181)

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