Economic Modeling Service

Pursuant to FAR 13.106-1(b), the Department of Commerce, International Trade Administration (ITA), Office of Trade and Economic Analysis (OTEA) intends to issue a sole source purchase order to the Center for Global Trade Analysis at Purdue University (Purdue) for a Computable General Equilibrium (CGE) model of the US economy that will enable ITA to analyze the economic impact of policies at the subnational level. A state level CGE model of the US economy has recently been developed by the Wisconsin National Data Consortium (WiNDC) housed at the University of Wisconsin. However, the software used to create and solve the model is not that used at ITA. The main purpose of this project is to provide a modeling framework for the recently WiNDC database using the GEMPACK suite of software currently employed at ITA. The intention is to develop a GEMPACK-based model that hones closely to the GTAP-style: naming conventions for the database and model variables and model specification (where possible). This is intended to reduce required training for ITA economists familiar with the GTAP model, and could in the long-run facilitate the goal of linking of the WiNDC model with the GTAP model. The recently developed WiNDC database and software provides regional US coverage at the individual state level. However, the WiNDC model and database requires the General Algebraic Modeling System (GAMS) software suite not currently available to OTEA economists. The statutory and internal deadlines associated with some of this work requires that the analysis be completed within a relatively short time period. As a result, OTEA requires the development of a modified version of the WiNDC model and database written in the GEMPACK suite of software used at OTEA which can analyze policy actions applied to products at the required level of regional disaggregation. The Center for Global Trade Analysis is the only developer of the GTAP database and is the model for the most widely used CGE model and database written in the GEMPACK suite of software. This is the most complete global database compatible with the current models and software used by OTEA. The intent of this notice is not to request competitive quotations and no solicitation is available or will be issued. Any information received from interested parties will only be considered solely for the purpose of determining whether a competitive procurement should be conducted. Interested parties may submit a description of their firms' capabilities for satisfying the requirement, which demonstrates they possess the ability to successfully perform this effort. All questions concerning this matter should be addressed directly to Stephanie Rhodes at [email protected].