Investigating the current methodological issues facing the Consumer Price Index (CPI) program

The Bureau of Labor Statistics (BLS) intends to award on a sole-source basis, a cost reimbursement contract to the National Research Council (NRC) Committee on National Statistics (CNSTAT). CNSTAT is a part of The National Academies of Sciences, Engineering, and Medicine ("the Academy") located at 500 Fifth Street NW, Washington DC 20001. The requirement is for services needed to convene an Expert Consensus Panel to investigate the current methodological issues facing the Consumer Price Index (CPI) program in the areas of elementary index methodology, upper-level aggregation methodology, and price measurement for hard-to-measure categories. The Panel shall conduct a public workshop to identify stakeholder and public perspectives on the topic. Based on results from that workshop and gathered expert opinions, the Panel shall conduct internal deliberations and produce a consensus report providing recommendations and explanations for them. Market research efforts have established that the Academy is the only source capable of providing the services at the level of expertise required. Given the importance of the data for economic policy, recommendations for measurement objectives must be based on research which is highly credible, widely accepted, and valued by the stakeholders. Only a study by the Academy is able to meet these criteria. Created by a Congressional Charter signed by President Abraham Lincoln in 1863, the Academy is a federally chartered non-profit institution dedicated to the furtherance of science and its use for the general welfare. The Congressional Charter is codified at 36 USC Ch. 1503. Although the Academy is a private non-profit corporation, it is called upon by the terms of its Congressional Charter to act as an official, yet independent advisor to the federal government. The capacity of the Academy to play a unique role in advising the Federal government stems from three interrelated attributes: 1. To a degree unmatched elsewhere, the Academy can elicit the participation of virtually any expert whom it invites to serve. As a consequence, there are at any one time numerous committees that are addressing an enormous diversity of problems. 2. The credibility of Academy Reports is maximized by the recognized impartiality of the institution, which manufactures no product, possesses no funds to disperse, has no power of decision and enjoys no executive or regulatory authority. Thus, there is no vested interest in the outcome of deliberations and the independent advice is of unparalleled objectivity. 3. Finally, for those studies that involve sharply divergent and well-fixed points of view, the Academy has repeatedly been able to bring together persons who have been reluctant to address issues outside of this setting. Committees are composed of the nation's top experts, all of whom volunteer their time to study specific concerns. Nominees for membership in committees at the Committee are subjected to rigorous procedures for appointment. These procedures ensure the selection of the most qualified experts who represent a broad range of views and who, as a group, represent the spectrum of thought in a subject area. The Academy's unique status was confirmed by President George Bush in Executive Order 12832 (January 19, 1993), which specifically recognizes the Academy's unique qualifications, and the appropriateness of sole source awards to the Academy: "When a department or agency of the executive branch of the Government determines that the Academy, because of its unique qualifications, is the only source that can provide the measure of expertise, independence, objectivity, and audience acceptance necessary to meet the department's or agency's program requirements, acquisition of services by the Academy may be obtained on a noncompetitive basis if otherwise in accordance with applicable law and regulations." These unique qualifications were confirmed by the General Accounting Office in Moshman Associates (B-216107), which upheld the Department of Education's sole source justification for an award to the Academy. The Comptroller General agreed with the agency that only the Academy could "provide a combination of the highest caliber of scientific expertise, independence, impartiality, credibility and audience acceptance." The GAO specifically relied on the special independent status of Academy as a nonprofit organization, congressionally chartered for the purpose of conducting studies for the government, and that the Academy historically has enjoyed a high degree of credibility, that its scientific expertise and resources are of the highest caliber, and that it is a "distinguished and respected body." Most importantly, for this project the Academy will partner with experts, representing various areas of expertise in methodological issues facing CPI program. There is no other organization of its standing in the United States capable of providing such collaboration and expertise. No personal remuneration is made for the services of the experts serving on Academy committees and, by law, no fee or profit is paid to the Academy. Therefore, it is in the public interest to receive the independent advice of unparalleled objectivity of the highest quality that provides an inherent degree of acceptability. Considering the volunteer nature of committee members as well as the independence, objectivity, quality and acceptance of Academy recommendations, the Academy represents a cost effective means for examining the critical issues of this project. The award will be made in accordance with FAR 6.302-1. This is not a request for competitive quotes; however all interested sources who believe they can meet the requirements may submit a capability statement no later than 5:00pm ET August 6, 2019 to the point of contact listed below. Information received as a result of this notice will be considered solely for the purpose of determining whether to conduct a competitive procurement and will be at the sole discretion of the Contracting Officer. Procurement Point of Contact: Laura Holstein, 202-691-6074 holstein.laura@bls.gov