LSR Redacted.pdf

Limited Sources/Sole Source Rationale

1. REQUIRING AGENCY AND CONTRACTING OFFICE:

Requesting Agency:

Naval Sea Systems Command, Management Systems Support Division (NAVSEA

04I, MSSD)

Portsmouth Naval Shipyard, Building 170, 6th Floor Kittery, Maine 03904-1367

Contracting Office:

Defense Information Systems Agency (DISA)/ Defense Information Technology Contracting Organization (DITCO)/PL8321 2300 East Drive, Building 3600

Scott Air Force Base, Illinois 62225-5406

2. Procurement Title: Data Security Degausser Maintenance Renewal

Funding Document Number: N3225321MP14104 Contract Number: To be determined Estimated Value: XXXXX

3. Regulatory Authority Federal Acquisition Regulation 10 U.S.C. 2304(c)(b) and Regulatory Authority of Federal Acquisition Regulation (FAR) is FAR 13.106-1(b)(1):

Soliciting from a single source for purchases not exceeding the simplified acquisition threshold. Contracting officers may solicit from one source if the contracting officer determines that the circumstances of the contract action deem only one source reasonably available (e.g., urgency, exclusive licensing agreements, brand name or industrial mobilization).

4. Description of Action: The nature of this action is to procure the proprietary, commercial off-the-shelf, brand name Data Security degausser maintenance renewal for the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility (PHNSY & IMF). This procurement will be awarded as a firm- fixed-price purchase order to Data Security, Inc., the original equipment manufacturer. Data Security, Inc. has proprietary rights and is the sole provider of the required maintenance via the open market. The period of performance is November 20, 2020 through November 19, 2020 with three 1-year option periods. Fiscal year 2021, operation and maintenance funds have been provided on Military Interdepartmental Purchase Request number N3225321MP14104. The applicable North American Industrial Classification System code is 811211, Consumer Electronics Repair and Maintenance, sales size standard of $8,000,000. The total estimated price for the proposed acquisition is $8,135.00 per year for the base year and three 1-year option periods, with a life cycle cost of XXXXX.

The PHNSY & IMF computer operations organization performs degaussing as required for all hard drive and removable storage media in the PHNSY & IMF. This process is conducted in accordance with National Security Agency (NSA) approved degausser products list and guidelines. Extended warranty and support are required to assure continued compliance. Degaussing is the process of reducing or eliminating an unwanted magnetic field (or data) stored on tape and disk media such as computer and laptop hard drives, diskettes, reels, cassettes and cartridge tapes. When exposed to the powerful magnetic field of a degausser, the magnetic data on a tape or hard disk is neutralized, or erased. Degaussing is the guaranteed form of hard drive erasure, as such; it serves as the standard method of data destruction and information is no longer retrievable.

In order to continue utilizing the degausser equipment, it must be certified on a yearly basis and the equipment must be maintained in working order in its ability to meet Department of Defense (DoD) guidelines for purging classified/sensitive information.

This equipment is unique in capability, and no other manufacturer can meet the footprint and electromagnetic pulse discharge requirements in addition to the erasure capabilities of declassifying/sanitizing zip disks, jazz disks, and hard disk drives. To keep the degausser certified in accordance with the NSA approved standards, maintenance is required. Without maintenance and certification, PHNSY & IMF would not have the capabilities to properly dispose of media containing Unclassified Naval Nuclear Propulsion Information and/or Classified Naval Nuclear Propulsion Information. Data Security, Inc. is the manufacturer of the units and is the only source authorized to provide maintenance.

5. Proposed Sole Source Contractor: Data Security, Inc.

6. Market Research: Government market research was conducted from August through September 2020. Market research included discussions with industry, reviewing historically similar acquisitions, internet research, and availability on any existing DISA-wide acquisition contracts and other Government-wide acquisition contracts. Based on market research, only Data Security, Inc. has the ability to meet the Government’s requirement to maintain the already established system. Based on market research, the required Data Security degausser is proprietary and maintenance is available from only Data Security, Inc.

Market research revealed the required degausser maintenance is not available on a DoD Enterprise Software Initiative Blanket Purchase Agreement, General Services Administration Schedule, or the National Aeronautics and Space Administration, Solutions for Enterprise-Wide Procurement contract vehicles. Data Security, Inc. is the original equipment manufacturer and they do not authorize any resellers to maintain their products. It has been determined that this requirement can only be fulfilled by Data Security, Inc., a large business, via an open market procurement. Therefore, this requirement will be published on Contract Opportunities (beta.sam.gov) website as a sole source procurement. All available discounts will be requested for this sole source requirement, using technically acceptable price reasonable evaluation methodology.

Based on current market research, it has been determined that only the aforementioned brand name product and/or product support, Data Security, can fully support the Government’s need. This requirement is for proprietary products and/or product support and no competitor functional replacement products exist in the market at this time to meet the Government's need. The Government will continue to conduct market research to determine if there are changes in the market place that would enable future competitive actions, i.e. there are similar products and/or product support in the marketplace that provides the same functionality, the original equipment manufacturer releases ownership rights of product, or it is economically feasible to procure a new degausser.

7. Upon the basis of the following justification, I, as the Contracting Officer, hereby approve this sole source justification for the proposed contract action pursuant to the authority cited above as the particular product, service, brand-name product, service or feature is essential to the Government's requirements, and market research indicates other companies' products or services do not meet, or cannot be modified to meet, the agency's needs.

Based on the justification provided by PHNSY & IMF, a determination has been made to solicit as a sole source requirement to Data Security, Inc. via open market for the above-described requirement. A synopsis/solicitation for this sole source procurement will be posted to beta.sam.gov and provide to Data Security, Inc. The Government will request all available discounts from open market pricing for this price reasonable, technically acceptable requirement.

//signed// See EDMS tab 6 Prepared by: Joyce Racicot

NAVSEA 04I, MSSD

Betty A. Burris Contract Specialist

Approved:

Lauren J. O’Neill Contracting Officer Date: