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

B -- UPDATE OF OIL INDUSTRY LABOR FACTORS FOR THE ALASKA MANPOWER MODEL SOL 3907 DUE 031798 POC Wallace Adcox (703) 787-1362 WEB: MMS Homepage. Contains general information about agency and mission., http://www.mms.gov. E-MAIL: Contracting Officer's E-mail, wallace.adcox@mms.gov. The Minerals Management Service (MMS) of the Department of Interior intends to competitively award a contract for an update of oil industry labor factors in the Beaufort Sea Planning Area for our Alaska Manpower Model. The purpose of this study is to improve the accuracy of projections of direct OCS employment, secondary employment, and population so that MMS can develop credible and valid economics sections of the economic impact statements (EIS), environmental assessments (EA), and other National Environmental Policy Act (NEPA) actions. The study results will also provide more accurate projections to be used in decisions regarding post-lease mitigation. We anticipate a one year period of performance at an estimated cost of between $100,000-$134,000. PLEASE READ THIS ENTIRE NOTICE CAREFULLY AS IT CONSTITUTES THE ONLY NOTICE THAT WILL BE ISSUED. BACKGROUND: The Outer Continental Shelf Lands Act, as amended, established a policy for the management of oil and natural gas in the Outer Continental Shelf (OCS) and for protection of the marine and coastal environments. The Act authorizes the conduct of studies in areas or regions of sales to determine the "environmental impacts on the marine and coastal environments of the OCS and the coastal areas which may be affected by oil and gas development." The MMS is the administrative agency responsible for leasing submerged Federal lands. The NEPA requires use of the natural and social sciences in any planning and decision making that may have an effect on the human environment. To this end the MMS prepares Environmental Impact Statements (EIS) and environmental assessments (EA); acquires marine environmental data; analyzes data, literature surveys, socioeconomic studies, and special studies; and holds public conferences. The first development and production on the Alaskan OCS is proposed in the Beaufort Sea at the Liberty Prospect. A development and production plan for the Liberty unit was submitted in early 1998. The Liberty unit is located about 10 miles northeast of the pipeline infrastructure centered at Prudhoe Bay. Initial production from this unit is planned for 2000. Also a draft EIS for a development plan for the Northstar unit is being formulated. The Northstar unit is located about 10 miles north of the pipeline infrastructure centered at Prudhoe Bay. A diagram showing these areas is available upon request. Please contact the Contracting Officer via e-mail for a copy. The results from updating our oil industry labor factors for the Alaska Manpower Model will be used to make labor projections which will become part of EIS's and EA's related to sales and anticipated activity on the Arctic OCS. The Manpower Model was created in the late 1970's and refined in the early 1980's to project the number of workers directly employed in proposed OCS exploration, development, and production activities. These data are used in another model to predict secondary employment and population. The employment data from the Manpower Model and the secondary employment and population data are used in EIS's. The input factors to the Manpower Model were based on information, no more current than the early 1980's, from industry on the actual number of workers used for 20 work units through the full range of activity from exploration and development to production. Since the early 1980's, technology has changed to the extent that the input variables to this model should be re-examined and adjusted appropriately. With labor factors updated in the Manpower Model, projections of direct OCS employment, secondary employment, and population in Arctic region EIS's will be more accurate. This information will be useful for EIS's and EA's for lease sales in the Arctic in the 1997-2002 5-year program and the following 5-year program. More accurate projections may be used in decisions regarding post-lease mitigation. SCOPE OF WORK: Industry representatives and possibly, knowledgeable consultants to the oil and gas industry will be utilized as information sources to determine the actual number of workers and amount of time needed to complete the units of work and tasks defined in the Manpower Model. These updated oil- industry-labor factors will be input to the Manpower Model. The Manpower Model will be tested to ensure it is functioning properly with the updated factors. The current Manpower Model has one set of factors for all of Alaska. THE UPDATE WILL BE FOR ARCTIC OPERATIONS ONLY. The Manpower Model consists of three portions of a spread sheet: Part1: Labor Factors; Part 2: Manpower Projections by Work Units and Tasks; and Part 3: Manpower Projections by Job Type. The Part 1 labor factors are linked to the projections in Parts 2 and 3. The Manpower Model is available on disk upon request. Please contact the Contracting Officer via e-mail for a copy. The updated Manpower Model shall be in the spreadsheet software of Corel Quattro Pro 7. The tasks of the Scope of Work are as follows: 1) Review the existing Manpower Model; 2) Determine if units and tasks are appropriate for current operations and technologythat would be used for oil and gas exploration, development, and production on the Arctic OCS offshore of Alaska. All possible technologies and operational methods, technology and equipment on the Alaska Arctic OCS, currently known, should be included; 3) Modify titles of units and tasks to conform to operational methods, technology, and equipment that may be used on the Alaskan Arctic OCS as is currently known, if appropriate; 4) Determine labor factors, current as of 1998, for executing each unit and task based on existing documentation and/or direct inquiry with knowledgeable persons in the oil and gas industry and/or consulting fields. This inquiry will not utilize a fixed (or forced) set of questions which will be asked of 9 or more people; 5) Input the updated labor factors into the Manpower Model; 6) Change the years forecast from each year 1999 through 2014 and 2019 and 2024 to each year 2000 through 2035; 7) For laying of offshore and onshore pipe (Units 10 and 11), change the units of measure from "100's of miles" to "miles"; 8) Test all functions of the updated Manpower Model and make any adjustments needed to ensure that it is running properly and output data are accurate; 9) Write a draft report describing the sources of the updated labor factors; the changes in technologies and operational methods, technology and equipment on the Alaska Arctic OCS, as are currently known; how the updated Manpower Model is functioning; and any adjustments made to enable proper functioning of the Model. The model and any macros within it shall be fully documented to allow ease of revision at a later date. Include, where appropriate, pictures or diagrams of equipment; 10) Submit the updated Manpower Model and draft report to the COTR for review (MMS will review the updated model and draft report in conjunction with appropriate reviewers external to MMS); 11) Make any adjustments to the Manpower Model and the draft report based on comments from MMS. Submit the updated Manpower Model and the final report with adjustments as requested by MMS and, if necessary, letter explaining any adjustments not made; 12) Prepare and submit a peer-reviewed journal article. RELEVANT SKILLS/EXPERIENCE: We anticipate the offeror's project team to have capability and experience in economics, petroleum engineering, oil and gas labor specialist, econometric modeling, and other related disciplines. HOW TO RESPOND: In order to compete for this contract interested parties MUST demonstrate that they are qualified to perform the work by providing, BY FOUR O'CLOCK EASTERN TIME ON MARCH 17, 1998, a Capabilities Statement detailing: (1) your key personnel (those who would have primary responsibility for performing and/or managing the study) with their qualifications and specific experience; (2) your organizational experience and facilities; and (3) specific references (including contract number & project description, period of performance, dollar amount, client identification with the point of contact & telephone number) for previous work of this nature that your key personnel or organization has performed within the last four years (references will be checked). If you believe the Government will find derogatory information as a result of checking your past performance record, please provide an explanation and any remedial action taken by your company to address the problem. Following review of all Capabilities Statements, we will establish a list of those deemed most qualified to perform the work. Offerors will then be contacted and told their evaluation. We will provide additional proposal instructions at that time. Proposals will essentially consist of an oral technical presentation and written cost/business proposal. Further details of proposal requirements and logistical considerations will be provided at a later date. Your Capabilities Statement will be evaluated based on your key persons' skills, abilities and experience; your organization's experience and past performance (including number, size, and complexity of similar projects, adherenceto schedules and budgets, effectiveness of program management, willingness to cooperate when difficulties arise, general compliance with the terms of the contracts, and acceptability of delivered products.) Questions should be faxed or E-mailed as soon as possible to fax (703)787-1387 or E-mail "wallace.adcox@mms.gov." Please include with your question(s) your full name, the RFP number & title, your organization, complete address, and phone and fax numbers. TELEPHONIC QUESTIONS OR REQUESTS ARE STRONGLY DISCOURAGED. (0054)

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