01035 Limited Sources Justification_Redacted.pdf

PR: 52800PR240001035

Hard Drive Disintegrator

Limited-Sources Justification

Pursuant to the Multiple Award Schedule Program (as authorized by 40 U.S.C. § 501), this justification is prepared in accordance with the requirements of Federal Acquisition Regulation

(FAR) 8.405-6(c) for the use of sources limited to fewer than those required in FAR 8.405-1, FAR 8.405-2, and FAR 8.405-3. The circumstance justifying restriction is FAR 8.405-

6(a)(1)(i)(B) through the following facts and rationale:

(1) Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Command, Control, Communications, Computers, Cyber, and Intelligence Service Center (C5ISC) Contracting and

Procurement, Kearneysville Division (CG-9142-2) located at 408 Coast Guard Drive, Kearneysville, WV, proposes to enter into an order on the basis of a limited-sources justification.

(2) Nature and/or description of the action being approved.

(a) Nature of action: USCG intends to award a delivery order under Data Security

Inc’s GSA Schedule for a SSMD 2-mm Solid State Media Disintegrator. Data

Security Inc is the sole manufacturer and provider of the disintegrator. This unit is used to destroy single state media, both unclassified and classified.

(b) Name and address of the contractor:

Data Security Inc

300 S. 7th Street

Lincoln, NE 68508

(c) Contract type: Firm-Fixed-Price

(d) Estimated total value (including options): The total estimated value for this requirement is .

(e) Type of funding: Operations and support funds

(f) Year of funding: Fiscal Year 2024

(g) Solicitation number: RFQ 01035

(h) Background information about the requirement:

The US Coast Guard C5I Service Center requires this purchase to maintain compliance with DOD, NSA, and CG regulations. C5ISC WFD-CSB is in need of an NSA approved solid state media disintegrator to destroy single state media, both classified and unclassified. C5ISC Kearneysville alone has destroyed 3,138 lbs of hard drives since June of 2022. There is currently over 1,500 lbs of hard drives awaiting destruction. With the inherent nature of work that C5ISC does, destructions of hard drives will continue to be a constant need for several years.

Currently, hard drives and other media to be destroyed are brought to C5ISC

Kearneysville from USCG offices in BASE NCR and the Coast Guard Yard to await destruction as there is no alternative location for destruction. These units are stored at C5ISC Kearneysville and are driven to alternate locations for destruction. This requires two USCG members to physically transport these hard drives to maintain security procedures.

(3) Description of Supplies/Services.

The requirement is to acquire a solid state media disintegrator, the Data Security Inc SSMD 2-mm Solid State Media Disintegrator. The USCG is required to be compliant with Department of

Defense (DoD), National Security Administration (NSA) and Coast Guard regulations by ensuring all media is destroyed to a 2mm particle size.

(4) Identification of the justification and the rationale.

• FAR 8.405-6(a)(1)(i)(B) – Only one source is capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized

Data Security Inc is the sole manufacturer and provider of the SSMD-2mm Solid State Media

Disintegrator and there are no resellers. This is the ONLY approved disintegrator on the NSA

Evaluated Products List (NSA EPL-SS, January 2024) that utilizes single phase power. This device meets the following additional needs:

• Disintegrator must be evaluated and approved by the National Security Agency for the physical destruction of solid state media, such as SIM cards, flash drives, solid state drives, circuit boards, smart phones and tablets and optical media, such as CDs, DVDs and Blu-Ray to 2mm particle size.

• Device must be simple, automatic push-button operation.

• Device must have an internal brain to sense overload and momentarily reverse automatically to clear and prevent jams.

• Device must have an automatic bin-full sensor.

• Device must have Life-Extend destruction blades, grinders and screens that must be easily reused, adjusted, and replaced.

• Device acoustics must be 85 dB or less.

• Device must use a self-contained, 3-stage air filtration system consisting of pre, carbon and HEPA filters.

• Device must have a main power switch that must be able to accept a lock for

• Lockout/Tagout in the OFF position.

• Device must have a footprint no greater than 30”W x 43”D x 49”H for space considerations.

• Device must not weigh more than 1,200 lbs.

• Device must have castor wheels.

• Device must be 200-240V, 1 phase, 50/60 Hz, 6A.

• Device must be manufactured in the USA, as required by Executive Order 14005.

Currently, the closest option for unclassified media destruction is to utilize UNICOR services, 123 miles away; for classified media, the closest option for destruction is the NSA, 86 miles away. This causes significant loss of man hours as with each transit, at bare minimum two people need to be with the drives at all times. C5ISC Kearneysville alone has destroyed 3,138 lbs of hard drives since June of 2022. There is currently 1,500 lbs of hard drives awaiting destruction.

With the inherent work that C5ISC does, destruction of hard drives will continue to be a constant need for several years. This disintegrator would also be utilized CG-wide for destruction of unclassified and classified media.

(5) Determination by the ordering activity Contracting Officer that the anticipated order represents the best value consistent with 8.404(d).

The Contracting Officer has determined that issuing the proposed delivery order to Data Security

Inc represents the best value and will result in the lowest overall cost alternative, considering price and administrative costs, to meet the Government’s needs. The ordering activity has considered the following:

a) No other manufacturer can provide a disintegrator that can meet the Government’s needs and remain in compliance with the NSA.

b) Data Security Inc has advised they are the sole manufacturer and sole provider of the disintegrator.

(6) A description of the market research conducted among schedule holders and the results or a statement of the reason market research was not conducted.

Market research was conducted using the NSA Evaluated Products List. While other disintegrators are available, they utilize three phase power, do not destroy all required media types to the required 2mm size, or cannot destroy both unclassified and classified media.

Additionally, Data Security Inc has confirmed there are no resellers for the disintegrator as they are the sole manufacturer and provider.

(7) A statement of actions, if any, the agency may take to remove or overcome any barriers that preclude the agency from meeting the requirements of 8.405-1 and 8.405-2 before any subsequent acquisition for the supplies or services is made.

Government is at the mercy of the NSA Evaluated Products List. In order to destroy TS/SCI and below media, the disintegrator must be approved by the NSA EPL. The NSA EPL is updated regularly with updated products as well as products that no longer meet the NSA standard for destruction of TS/SCI media. If/when it is time to purchase a new disintegrator, the government will once again evaluate all needs as described above and if other disintegrators meet the requirements of C5ISC and is approved by the NSA, then a re-evaluation of which source to purchase from will be made at the lowest possible cost.

(8) Contracting Officer’s Certification.

I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

(9) Technical/Requirements Personnel Certification.

I certify that this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for the justification, is accurate and complete.