KG-175 Taclance Encryptors SSJ_Redacted.pdf

Single Source Justification (Simplified Acquisition)

FOR OFFICIAL USE ONLY

November 2018 FOR OFFICIAL USE ONLY Page 1 of 2

Section A: General Contract Information

Is this a Bridge Action as defined in the AF Bridge Action Reduction Plan? Yes No

Contracting Activity: 21 CONS/PKB Peterson AFB, Colorado

Project/Program Name: TACLANE-Flex (KG175) Encryptor and Fiber Adaptor

Purchase Request / Local ID Number: TBD

Estimated Contract Cost (including Options):

Section B: Description of the Supplies/Services Required

United States Space Command (USSPACECOM) has a requirement for TACLANE-Flex Type-1 encryption devices and fiber adaptors. The taclane encryptor is an in-line network encryptor (INE) for high-speed and wide area communications networks that uses the Internet Protocol (IP) standard and international commercial standard for packet data switching networks. This encryption device and fiber adaptor will be permanently located at Building 1038 on Peterson AFB and will enable SIPRNet access for USSPACECOM personnel located at that facility. SIPRNet access is required for USSPACECOM personnel to execute their mission.

Section C: Justification for Soliciting from a Single Source or Brand Name

All taclanes in the market are manufactured by General Dynamics. The TACLANE-Flex (KG-175) is a National Security Agency (NSA) certified Type-1 Communications Security (COMSEC) product that has reselling restrictions imposed by the NSA. The NSA Reseller Policy states that "the NSA is the controlling authority for the sale of TACLANE/Sectra CCI (Controlled Cryptographic Items). It is advised that orders submitted to the Manufacturer (General Dynamics) by a commercial reseller for CCI devices will not be approved by the NSA (and therefore won't be shipped) unless the reseller can show that they are providing some added value to the end user (Government). If orders are being placed with General Dynamics as an administrative convenience to the Government end user (or the prime contractor), the order will be rejected. If the reseller will be integrating the crypto with something else that the vendor is supplying to the end user, or if reseller will be providing installation services, those are examples of value-added situations." See 'Notes' section of Attachment 3 - Quote from General Dynamics for more information.

For this procurement, a reseller would not be providing additional value-added services to the Government. Thus, the NSA reseller policy would prohibit General Dynamics from selling this item to a reseller and, as a result, only General Dynamics is capable of providing this item for this acquisition.

For more information, reference:

Attachment 1 - General Dynamics Resellers and Distributors Statement for TACLANE, Attachment 2 - Email chain from General Dynamics stating NSA and GSA restrictions, Attachment 4 - Email; NSA Procurement Authorization.

Section D: Efforts to Obtain Competition

Single Source Justification (Simplified Acquisition)

FOR OFFICIAL USE ONLY

November 2018 FOR OFFICIAL USE ONLY Page 2 of 2

A Request for Information (RFI) was posted on GSA Advantage and NASA SEWP on 1 May 2020 and closed out on 6 May 2020.

Nine (9) responses were received from small business vendors on GSA Advantage stating they are capable of providing this product. Zero (0) responses were received from vendors on NASA SEWP. The product is not available through the AbilityOne program. Because the KG-175 Taclane Encryptor is a CCI, the NSA must approve the sale of this device to ensure it will not be used for illicit purposes and to prevent adversaries from obtaining the item. In light of the NSA reseller restrictions, on 12 May 2020 an e-mail was sent to all the companies that responded to the RFI asking them to confirm they are able to resell the taclane. Jem Computers, Inc. and E-Logic, Inc. responded stating they are unable to provide the item due to the NSA restrictions and General Dynamics' refusal to provide the device to the Government via a third party if value added services will not be provided. The other companies did not provide a response.

Section E: Steps to Preclude Future Single Source or Brand Name Awards

The NSA Reseller Policy prohibits the sale of this item to a reseller unless the reseller can prove it is also providing added value services to the Government. Otherwise, the item must be purchased directly from the manufacturer. Until the NSA changes its policy, resellers will be unable to sell this item to the Government, leaving General Dynamics as the only authorized source for the taclane encryptors. Additionally, General Dynamics is the only company that manufactures taclanes. Until other companies begin manufacturing taclanes that are NSA certified, the KG-175 will be the only taclane that can fulfill the Government's encryption needs. Therefore, there are no steps the Government can take in the near future to preclude single source or brand name awards for these items.

Section F: Contracting Officer's Determination

I have determined, in accordance with FAR 13.106-1(b)(1), that the circumstances of this contract action deem only a single source is reasonably available.

Date

21-May-2020

Typed Name and Rank/Grade of Contracting Officer

Jeremy O. Boggs, MSgt, Contracting Officer

Signature of Contracting Officer

BOGGS.JEREMY.O.12450768

Digitally signed by

BOGGS.JEREMY.O.1245076890

Date: 2020.05.21 14:48:55 -06'00'