Sole source justification for UFR FY25 ONI-N7 Maintenance Plan for IT Destruction Devices UFR PR KAW KO FE_Redacted.pdf

DEPARTMENT OF THE NAVY

OFFICE OF NAVAL INTELLIGENCE

4251 Suitland Road Washington, DC 20395

Date: 30 Apr 2025

JUSTIFICATION FOR AN EXCEPTION TO FAIR OPPORTUNITY

1. IDENTIFICATION OF REQUESTING AGENCY AND CONTRACTING OFFICE:

a. Agency Name:

b. Contracting Activity:

2. NATURE AND/OR DESCRIPTION OF THE ACTION BEING APPROVED:

This action is for the sole source procurement of a one-year maintenance and extended warranty support plan for NSA-evaluated Information Technology Destruction Devices manufactured and serviced exclusively by Data Security, Inc. The covered devices include the CR-4KR Solid State Media Cracker, LM-1 Degausser, DX-8 Destruction Device, and SSMD-2mm Solid State Media Disintegrator, which are essential for secure media sanitization in support of the

The maintenance plan includes on-site preventative maintenance, warranty repair services, and extended warranty coverage for each device. These services are critical to sustaining secure, compliant destruction of classified and sensitive media per federal and Intelligence Community security mandates. Data Security, Inc. is the original equipment manufacturer (OEM) and the only authorized source for maintenance, warranty services, and parts for the specified equipment. As stated in their sole source letter, no third-party vendors are certified to perform maintenance or repairs on their systems, and they do not authorize the resale or distribution of warranty support to any other providers. This procurement will ensure the continued operability, security compliance, and availability of mission-critical sanitization equipment used in safeguarding classified information at the National Maritime Intelligence Center (NMIC).

3. A DESCRIPTION OF THE SUPPLIES OR SERVICES REQUIRED TO MEET THE AGENCY NEED

(INCLUDING THE ESTIMATED VALUE):

requires maintenance and extended warranty support services for government-owned IT destruction devices used to sanitize classified and sensitive media. The covered equipment includes:CR-4KR Solid State Media CrackerLM-1 DegausserDX-8 Destruction DeviceSSMD-2mm Solid State Media Disintegrator. The required services include:One-year extended warranty coverage for all listed devices On-site preventative maintenance visits for the LM-1, DX-8, and SSMD-2mm devices. Repair services, including inspection, replacement of defective components, cleaning, and calibration to maintain proper functionality. Support for identifying and replacing consumable parts not covered by warranty. These services are essential to sustain the operational readiness and compliance of directives. Without these services, risks device failure, extended downtime, and potential compromise of information assurance processes.

5. IF PURSUING AN EXCEPTION PER FAR 8.405-6 (b)(1) NAME BRAND DESCRIBE IN DETAIL

WHY A PARTICULAR BRAND NAME, PRODUCT, OR A FEATURE OF A PRODUCT, PECULIAR

TO ONE MANUFACTURER MUST BE USED. IF PURSUING AND EXCEPTION PER FAR 16.505,

PROVIDE JUSTIFICATION AND RATIONALE FOR USING THE AUTHORITY. THIS IS DIFFERENT

FROM THE JUSTIFICATION FOR THE REQUIREMENT. DESCRIBE HOW THIS ACTION

REQUIRES THE USE OF THE AUTHORITY CITED. IF APPLICABLE, IDENTIFY THE PROPOSED

OR POTENTIAL CONTRACTOR(S), AND INCLUDE A DISCUSSION OF THE PROPOSED

CONTRACTOR'S UNIQUE QUALIFICATIONS TO PROVIDE THE REQUIRED SUPPLY OR

SERVICE.

This procurement action invokes an exception under FAR 8.405-6(b)(1) to acquire brand-name only maintenance and extended warranty services for Data Security, Inc. IT destruction devices. These services are required specifically for the following Data Security, Inc. proprietary systems:CR-4KR Solid State Media CrackerLM-1 DegausserDX-8 Destruction DeviceSSMD-2mm Solid State Media Disintegrator Data Security, Inc. is the original equipment manufacturer (OEM) and the sole provider of authorized warranty and preventative maintenance support for these systems. According to the vendor’s official sole source letter, Data Security, Inc. does not authorize any third-party resellers or service providers to perform maintenance, repairs, or warranty-related support. The company does not distribute proprietary parts, technical manuals, or diagnostic tools necessary to perform these services to any other entity. Therefore, only Data Security, Inc. technicians are qualified and certified to service the equipment in accordance with the original design specifications and NSA evaluation requirements.Use of any other vendor would risk voiding existing warranties, result in substandard repairs, increase the likelihood of equipment failure, and potentially compromise ONI’s ability to meet federal information destruction and security requirements. Furthermore, maintenance by unauthorized entities may violate policy requirements for the destruction of classified media under DoD Manual

5200.01 Vol. 3 and NSA/CSS Evaluated Products List standards.Proposed Contractor:Data Security, Inc.300 South 7th StreetLincoln, NE 68508Phone: (800) 225-7554Data Security, Inc.’s unique qualifications lie in its position as the OEM and exclusive service provider for the aforementioned destruction devices. The company possesses proprietary technical specifications, certified repair components, and cleared personnel trained specifically to support NSA-evaluated destruction equipment used in classified environments.

6. DETERMINATION BY THE ORDERING ACTIVITY CONTRACTING OFFICER THAT THE ORDER

REPRESENTS THE BEST VALUE (FAR Part 8) OR FAIR AND REASONABLE (FAR Part 16):

Competition will / has been sought from any source and has not been identified as being available from any re-sellers. The software company has indicated that they do not sell their software support via a re-seller, and the resultant order will represent the best value (as defined in FAR 2.101) and result in the lowest overall cost alternative (considering price, special features, administrative costs, etc.) to meet the Government's needs.

7. DESCRIPTION OF MARKET RESEARCH CONDUCTED AMONG SCHEDULE HOLDERS AND

RESULTS,

-OR-

STATEMENT OF REASON MARKET RESEARCH WAS NOT CONDUCTED:

8. OTHER FACTS SUPPORTING JUSTIFICATION:

Market research included searches on GSA Advantage, DLA FedMall, and Google, as well as direct outreach to vendors that advertise data destruction equipment services. No vendors were identified that are authorized to perform maintenance or warranty support on the specific Data Security, Inc.

equipment. The manufacturer confirmed in writing that they are the sole provider of these services and do not authorize third parties. As a result, no other sources were found capable of meeting the requirement.

9. ACTIONS THE AGENCY MAY TAKE TO REMOVE OR OVERCOME ANY BARRIERS THAT LED

TO THE RESTRICTED CONSIDERATION BEFORE ANY SUBSEQUENT ACQUISITION FOR

SUPPLIES OR SERVICES IS MADE:

Future acquisitions will include periodic market research to determine whether other vendors have