D--MONTCAR Modeling Software

Oil and Gas Resource and Economic Evaluation Modeling Software for the Outer Continental Shelf PLEASE READ THIS NOTICE CAREFULLY AS IT WILL BE THE ONLY NOTICE THAT WILL BE ISSUED. The U.S. Department of the Interior, Minerals Management Service (MMS), Procurement Operations Branch, is the contracting office for this procurement and the resultant contract administration. All vendors must be registered in the Central Contractor Registration (www.ccr.gov) in order to receive Government contracts. The Government intends to award a hybrid type contract with fixed price and cost reimbursable line items, with an anticipated period of performance of a twelve (12) month base year and four (4) option years for the effort described herein. The NAICS code for this acquisition is 541511, Custom Computer Programming Services. BACKGROUND: The Minerals Management Service (MMS) has the responsibilities to manage mineral leasing, exploration, and development on the Outer Continental Shelf (OCS) lands. The Offshore Energy and Minerals Management program (OEMM) (www.mms.gov/offshore), being one of two major MMS programs, regulates all OCS energy and mineral activities, ranging from resource assessment and lease offerings through exploration, production, and decommissioning. It also ensures that the public receives fair market value for lease rights conveyed on the OCS. OEMM has its headquarters located in Herndon, VA, and regional offices in Camarillo, CA, New Orleans, LA and Anchorage, AK. The OEMM Regional Directors are responsible for determining the adequacy of qualified high bids offered for tracts included in OCS oil and gas lease sales. In order to make this determination prior to awarding oil and gas leases on the OCS, the MMS utilizes a proprietary Tract Evaluation Model. It employs classical Discounted Cash Flow Analysis and Monte Carlo simulation in order to build feasible scenarios for exploration and production of the hydrocarbon resources on a leased tract. The Tract Evaluation Model computes a range of net present values for the evaluated tract, and the mean of that range is taken as a threshold value. Based on comparisons of the bids offered at the MMS lease sales by the prospective lessees with the threshold value per tract, the Regional Director is able to make acceptance or rejection decision with respect to the high bid on a tract. The same model also serves as an analytical tool in support of policy making with respect to lease terms, suspension volumes, royalties, and new governmental regulations.OBJECTIVE/GOAL: The objective of this effort is to acquire a customized commercial off-the-shelf (COTS) software package and technical support enabling MMS to conduct resource and economic evaluation of OCS tracts, based on a diverse set of economic, engineering, geological, geophysical, and other input parameters. The customized software COTS should be able to carry out Discounted Cash Flow Analysis, preferably with Real Options, while evaluating multiple exploration and production scenarios on a per-tract (OCS lease block) basis. It should be able to compute Minimum Economic Field Sizes (MEFS) related to oil and gas development projects, allow for fixed and sliding scale royalties, and utilize stochastic oil and gas price modeling concepts.The desired outcome of this effort is to replace the existing proprietary OEMM Tract Evaluation Model with the customized software COTS, to improve the current economic modeling capabilities of OEMM, to incorporate industry evaluation techniques into the MMS workflow, and to provide alternative, non-Government sources of software solutions and user support. HOW TO RESPOND: For a full copy of the Request for Proposal (RFP), please contact Lisa A. Algarin via email at contact@example.gov. Please include in your request the Solicitation Number M09PS00067 and title Oil and Gas Resource and Economic Evaluation Modeling Software for the Outer Continental Shelf, your organizations name, point of contact, Dunn & Bradstreet number, address, telephone and fax numbers and email address. Requests must be made no later than 5:00 P.M. Eastern Time/Date: June 4, 2009. PHONE CALLS ARE STRONGLY DISCOURAGED.