Energy 2020 Model Update, Maintenance and Support

ADVANCE CONTRACT AWARD NOTICE (ACAN)

Energy 2020 Model Update, Maintenance and Support

1. Advance Contract Award Notice (ACAN)
An ACAN is a public notice indicating to the supplier community that a department or agency intends to award a contract for goods, services or construction to a pre-identified supplier, thereby allowing other suppliers to signal their interest in bidding, by submitting a Statement of Capabilities. If no supplier submits a Statement of Capabilities that meets the requirements set out in the ACAN, on or before the closing date stated in the ACAN, the contracting officer may then proceed with the award to the pre-identified supplier.
The purpose if this Advance Contract Award Notice (ACAN) is to signal the Canada Energy Regulator’s intention to award a contract for services to the pre-selected supplier:

Systematic Solutions Inc,
1519 Heatherwood Trail,
Xenia, OH 45385 USA

2. Definition of the Requirement
The objective is to obtain services for providing modeling support and consultation related to the use of ENERGY 2020 simulation tool, which forecasts energy demand and supply as well as provides energy-related policy simulation capabilities.

Background

As part of its mandate, the CER advises and reports on energy matters as stated in the subsection 11(e) of the Canadian Energy Regulator Act, SC 2019, c 28 s 10 (CER Act). In addition, CER may, on request, provide advice about energy matters, sources of energy and the safety and security of regulated facilities and abandoned facilities (subsection 83(1) and section 86 of the CER Act the CER).

The CER has been publishing energy supply and demand projections since 1967, currently as part of its Canada's Energy Future (EF) report series. CER's Energy information BU models energy forecast for energy supply and demand. The largest segment of the modeling, the energy demand, uses Energy 2020 simulation tool and contractual services to perform its energy information activities such as modeling and publishing of the Energy Future series including Net Zero by 2050 modeling that was requested by Minister of Natural Resources. This work also contributes to other energy information products and/or publications.

The CER uses ENERGY 2020 simulation tool to develop scenario outlooks as reported in CER's Energy Futures report. The reporting schedule of the Energy Futures report is on a one to two-year update cycle and is subject to change. To develop future energy forecasts, CER requires support to update historical emissions and energy use, implement model additions, trouble shoot modeling errors, and training on model functionality.

CER requires ENERGY 2020 modeling support in the following areas:

Technical support in the development and update of CER's annual energy demand and supply forecast using ENERGY 2020.
Technical support in the modelling and analysis of policies and scenarios using ENERGY 2020.
Technical support for updating, modifying, and enhancing the energy demand and supply modules of ENERGY 2020.

Tasks:

Summarize enhancements to ENERGY 2020 modelling software over the previous year
Incorporate recent enhancements into the CER's version of ENERGY 2020 as directed by CER staff
If required, update key US data and calibrate US forecast to the most current EIA Annual Energy Outlook available.
Re-calibrate ENERGY 2020's model to the last historical year, debug, and create a new 'base case'
Model-development support: model additions, adjustments, updates, inclusion or modification of parameters related to new technologies, and troubleshooting
Model operation support: forecast adjustments, data input, execution, creation of output files, creating and testing files to model policies.

Training on an as-requested basis for explanations of model relationships.
Support for data exchange between other models in CER's modeling system.

3. Criteria for Assessment of the Statement of Capabilities
Any interested supplier must demonstrate by way of a statement of capabilities, the ability to undertake the following tasks:

i. provide general ENERGY 2020 modeling support in reviewing model relationships, developing and adjusting the forecast as required in developing its projections for the developing its energy forecast projections for the 2023 Energy Futures report;

ii. modeling support and consultation related to scenario or policy development and analysis using ENERGY 2020;

iii. update the model with key US historical variables through 2023/2028 as well as incorporate the best currently available historical data used in other versions of ENERGY 2020;

iv. update CER's version of model with enhancements from most current version of ENERGY 2020.Recalibrate model to 2023/2028; debug and create new base case; and

v. Provide training to CER staff on ENERGY 2020.

4. Trade Agreements
This procurement is subject to the following trade agreement(s):
Canada–Chile Free Trade Agreement, Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Canada–Colombia Free Trade Agreement, Canada–Honduras Free Trade Agreement, Canada–Panama Free Trade Agreement, Canada-European Union Comprehensive Economic and Trade Agreement (CETA), Canadian Free Trade Agreement (CFTA) Canada–Peru Free Trade Agreement, Canada–Ukraine Free Trade Agreement, World Trade Organization–Agreement on Government Procurement (WTO-AGP)

5. Justification for the Pre-Identified Supplier
The model is developed by the pre-identified supplier, SSI, who has Intellectual Property rights on Energy 2020 and have provided similar updates every year since the model was brought onboard at CER in 2006
We intend to deal directly with the supplier mentioned in section 10 below as; it is the only known supplier that meets the mandatory criteria set out in section 3 above.
Should Canada receive a statement of capabilities from a supplier that contains sufficient information to indicate that it meets the requirements set forth in this ACAN, a competitive process will be triggered with a technical and financial evaluation methodology of the bids proposed by the potential bidders

6. Exception to the Government Contracts Regulations
The following exception(s) to the Government Contracts Regulations is (are) invoked for this procurement under subsection 6(d) – “only one person is capable of performing the work.”
The identified provider, Systematic Solutions Inc., is the only one able to meet all of the criteria identified in paragraph 3 above.

7. Exclusions and/or Limited Tendering Reasons
Canadian Free Trade Agreement (CFTA) - Article 513: Limited Tendering (b)

8. Ownership of Intellectual Property Canada intends to retain ownership of any Foreground Intellectual Property arising out of the proposed contract on the basis that the main purpose of the contract is:
To augment an existing body of Crown Background as a prerequisite to the transfer of the expanded Background to the private sector, through licensing or assignment of ownership (not necessarily to the original contractor), for the purposes of Commercial Exploitation.

9. Contract Period
The contract period will be from award to June 30, 2024, with 4 (four) 1 (one) year option periods.

10. Estimated Cost $95,000.00 plus applicable taxes

11. Suppliers’ right to submit a Statement of Capabilities
Suppliers who consider themselves fully qualified and available to provide the services/goods described herein, may submit a Statement of Capabilities in writing, preferably by e-mail, to the contact person identified in this Notice on or before the closing date and time of this Notice. The Statement of Capabilities must clearly demonstrate how the supplier meets the advertised requirements.

12. Closing Date
The closing date for a submission of a Statement of Capabilities is July 6, 2023 @ 14:00 MDT.

13. Contract Authority
Karen-Anne Deslandes
Senior Procurement Specialist (Consultant)
Canada Energy Regulator

Email Karen-Anne.Deslandes@cer-rec.gc.ca

Contact phone
613-790-7177