Attachment 2 - DF Brand Name - TACLANE.pdf

Tracking No. Treasury Standard Form – 1013 (Rev 5/18) Prescribed by Treasury: DTAP 1013.501

DEPARTMENT OF THE TREASURY

SF 1013 - JUSTIFICATION & APPROVAL FOR FAR SUBPART 13.5 SOLE SOURCE

(INCLUDING BRAND NAME) ACQUISITIONS

1. Identification of the requiring activity and the contracting activity:

Contracting Activity: Internal Revenue Service (IRS), Office of Procurement, Office of Information Technology Acquisition Requiring Activity: Department of Treasury, Departmental Offices, OCIO COMSEC 2.a Nature and/or description of the action being approved:

The Department of the Treasury requires a sole source award to General Dynamics Mission Systems for the trade-in and replacement of TACLANE encryption systems that have reached End of Life (EOL). This procurement supports the Treasury’s annual refresh cycle to replace outdated systems within the Departmental Offices (DO). TACLANE devices are critical encryption solutions used across the cyber community to ensure secure data transmissions for the Department of Defense (DoD) and other Federal Government operations. The Department of the Treasury relies on these devices for daily communication with DoD and other Government agencies. To maintain compatibility and compliance, Treasury must continue to use TACLANE products. General Dynamics is the only authorized and approved provider of these encryption devices.

Vendor Information:

General Dynamics Mission Systems 150 Rustcraft Road Dedham, MA 02026 Point of Contact: Jason Sellers Email: jason.sellers@gd-ms.com Phone: (843) 708-7730 2.b Name of the vendor: General Dynamics Mission Systems (GD-MS) 2.c Requisition No.: 25PR-SSPDIR-0453 2.d Bridge contract: Yes No 2.e Brand name: Yes No 3.a A description of the supplies or services required to meet the agency’s needs:

The Department of the Treasury needs to purchase:

INDEPENDENT GOVERNMENT COST ESTIMATE FOR FIRM FIXED PRICE CONTRACT / ORDER

Item

Part

Number Qty

***TAA COMPLIANT REQUIRED***

1 FX1GTR-1

Trade- - – 1 Gb/s –

3.b Includes IT: Yes No

3.c IGCE/Estimated dollar value: $493,500

4. Identification of the authority being used (Check the box that applies):

41 U.S.C. 1901 – Simplified acquisition procedures.

41 U.S.C. 1903 – Special emergency procurement authority.

5. A demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited:

The TACLANE-1G/10G hardware and software are standard devices widely deployed across the Department of Defense (DoD) and other government agencies. By implementing these products, the Treasury Secure Data Network (TSDN) can streamline its infrastructure to align with inter-agency requirements and ensure consistency through the use of a common, proven solution. TSDN relies on TACLANE-1G/10G devices to support its mission-critical requirements, providing secure, reliable connectivity, sufficient bandwidth, and operational control for both Treasury and its customers. The adoption of these devices strengthens Treasury’s ability to meet stringent security, performance, and compliance standards while ensuring the integrity of its LAN, WAN, and associated systems.

This acquisition is a proprietary, sole-source procurement. Only General Dynamics, the original manufacturer, is authorized to provide TACLANE products. As the classified infrastructure within Treasury, TSDN requires this level of hardware and software assurance that only TACLANE devices deliver. Two fully operational domains within TSDN already depend on these devices; shifting to an alternate product—if one were available—would be prohibitively expensive and unsustainable within the current budget environment.

TACLANE is General Dynamics’ proprietary solution for securing networks and is certified by the National Security Agency (NSA), the governing authority for Communications Security (COMSEC) Controlled Items (CCI). The TACLANE devices are the only units certified to meet TSDN’s operational and security requirements. All CCI assets are tracked in NSA’s COR-managed inventory database, accessible only through designated COMSEC and Central Office of Record accounts. Furthermore, NSA has specifically approved the use of TACLANE encryptors for the TSDN program. These devices comply with NSA’s High Assurance Internet Protocol Encryptor (HAIPE) standard, version 4.1 (approved November 2013). Additionally, NSA has authorized the use of GEM-X for monitoring deployed TACLANE units, further ensuring secure, reliable network operations.

6. A description of efforts to ensure that offers were solicited from as many potential sources as is practicable, including whether a notice was or will be publicized as required by FAR subpart 5.2 and, if not, which exception under FAR 5.202 applies:

This justification will be posted on FBO, but this will be a sole source award as only the General Dynamics is authorized to provide this product.

7. A determination by the contracting officer that the anticipated cost to the Government will be fair and reasonable:

The Contracting Officer will determine the prices to be fair and reasonable based on previous awards made for similar equipment. The price will also be compared to the IGCE which was developed on market research from the program office.

8. A description of the market research conducted (see FAR part 10) and the results or a statement of the reason market research was not conducted:

Market research determined that General Dynamics is the only vendor capable of providing the required products. This conclusion was reached by reviewing prior awards for the same devices, which confirmed that Treasury employs the same equipment used by other agencies, including the DoD, FBI, NSA, and CIA, to ensure interoperability across classified networks through standardized encryption devices. Furthermore, the devices are NSA certified and ACC compliant. General Dynamics is the only NSA authorized and approved provider of these encryption devices.

9.a Any other facts supporting this justification:

TACLANE devices are not available for commercial sale and cannot be procured through GSA or other contracting vehicles. The National Security Agency (NSA) remains the controlling authority for the distribution of these encryptors; however, effective immediately, the NSA Direct Sale approval process has changed. Orders submitted to General Dynamics Mission Systems (GDMS) by commercial resellers for Controlled Cryptographic Item (CCI) devices, including encryptors, will no longer receive NSA approval.

For operational and logistical reasons, TACLANEs must now be procured directly from GDMS rather than through NSA-managed channels. Direct procurement enables faster delivery timelines—critical for mission readiness and rapid deployment—and allows for the selection of specific models, configurations, and accessories that may not be available through standardized NSA inventory.

Additionally, purchasing directly from GDMS ensures direct access to essential support resources, including technical integration assistance, firmware updates, and training services.

These capabilities are vital for sustaining long-term system performance and lifecycle management. By securing TACLANEs directly from the manufacturer, organizations maintain full NSA compliance and cryptographic integrity while gaining enhanced control, responsiveness, and supportability across the system’s life cycle.

For these reasons, direct procurement through General Dynamics represents the most effective, mission-aligned approach to acquiring and sustaining TACLANE capabilities.

9.b Attachments: Yes No

10. A listing of sources, if any, that expressed, in writing, an interest in the acquisition:

Based on market research, there are no other sources available to provide the Taclane equipment made by General Dynamics.

11. A statement of the actions, if any, the Requiring Activity or Contracting Activity may take to remove or overcome any barriers to competition before any subsequent acquisition for the supplies or services required:

Currently, it is not feasible because Treasury is not the lead agency for this government-wide solution. A true solution would only be possible if the Department of the Treasury were designated as the lead Federal Agency with authority to mandate the use of encryption devices across other Federal agencies. Until such authority is granted, Treasury must continue using these devices to ensure it maintains authorized access to the classified environment in coordination with other agencies.

TACLANEs remain the primary devices authorized for classified U.S. government communications because they meet the most stringent national security standards set by the National Security Agency (NSA). As one of the few devices certified as Type 1 encryptors, TACLANEs are uniquely approved to secure classified information up to the Top Secret/Sensitive Compartmented Information (TS/SCI) level. Their NSA certification, high-assurance security, and proven interoperability make them the only widely authorized option capable of safeguarding classified national security information with the required level of assurance.

12. Certifications and Approvals:

12.a Program Office certification (Requiring Activity). I hereby certify that any supporting information and data provided, which form the basis for this justification, are accurate and complete to the best of my knowledge and belief.

Name: Kristin L. Psaros Date: June 9, 2025

Signature:

12.b Contracting Officer certification and approval. I hereby determine the circumstances of this acquisition support the justification to acquire the item(s) on a sole source (including brand name) basis under the authority of FAR subpart 13.5. I also certify this justification is accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the authorized contracting officer for this acquisition, I hereby approve this justification.

Name: Date:

13. Additional Reviews and Approvals (As applicable):

28 August 2025Jon Carney

Kristin L. Psaros Digitally signed by Kristin L.

Psaros Date: 2025.08.27 11:14:45 -04'00'

Digitally signed by Jonathan W. Carney Date: 2025.08.28 13:48:39 -04'00'

13.a Bureau Chief Information Officer or Authorized Designee (for IT requirements that are over $5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification. (Note: The Bureau CIO may delegate their authority for proposed contracts over $5 million, but not exceeding $13.5 million to the Associate Bureau CIO(s).)

Name: Date:

Signature:

13.b Advocate for Competition (if over $700,000, but not exceeding $13.5 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the Advocate for competition, I hereby approve this justification.

Name: Date:

Signature:

13.c Head of the Procuring Activity or Authorized Designee (if over $13.5 million, but not exceeding $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, unless additional approvals are required as prescribed below, as the head of the procuring activity or authorized designee, I hereby approve this justification.

Name: Date:

Signature:

13.d Treasury Chief Information Officer (for IT requirements that are over $68 million). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief, and representative of the Government’s need. Therefore, I hereby consent to the approval of this justification.

Name: Date:

Signature:

13.e Senior Procurement Executive (if over $68 million) (Contracting Activity). I have reviewed this justification and find it to be accurate and complete to the best of my knowledge and belief. Therefore, as the senior procurement official, I hereby approve this justification.

Name: Date: