SP-1272-21_Final.pdf

SP-1272-21 Page 1 of 4

REQUEST FOR SPECIAL PROCUREMENT NO. SP-1272-21

PART A. Requesting Agency must complete Items 1 through 13.

1. Requesting Agency Name: The Department of Administrative Services, Procurement Services (DAS PS) on behalf of the Office of the State Chief Information Officer (OSCIO), also known as Enterprise Information Services (EIS), Data Center Services (DCS)

2. Date of Request: January 29, 2021 3. Agency Number: 107090

4. Agency Contact Name: Laure Konseibo 5. Phone: (971) 349-2359

6. Type of Request: ____ Class Special Procurement _ X Contract-specific Special Procurement

7. Time Period Requested: From: March 1, 2021 To: February 28, 2026

8. Total Estimated Cost: $51,705

9. Title: Supplies and/or Services to be Acquired: Onsite Data Destruction Services

10. Request, Background, Current Need, and Proposed Contracting Procedure:

a. Request:

DAS PS, on behalf of EIS/DCS, requests approval of this Special Procurement (SP) No. SP-1272-21 to allow DCS to direct award a contract with DataSafe, Inc. (DataSafe), for onsite data destruction services for five (5) years, with a not-to-exceed (NTE) of $51,705.

b. Background:

Data Center Services (DCS) serves Oregonians by providing data center infrastructure services (managed computing, data network and data storage services), Information Technology professional services and enterprise email services to Oregon state agencies and other government entities.

DCS requires a contract for onsite, media destruction services to include; hard drives, thumb drives, tapes, compact discs (CDs) and digital versatile discs (DVDs). DataSafe is the only company that can provide volume Hard Disk Drive (HDD) destruction within a 500-800 mile radius of Portland, Oregon DataSafe provided the both offsite and onsite destruction services under Price Agreement (PA) No. 1547, which expired in July 2020. Price Agreement No. 1547 was awarded by DAS PS via a Request for Proposals (RFP) No. 102-1049-10 conducted in 2011.

DataSafe sold its physical storage business to Archive Systems, Inc. (Archive), but retained all digital Information Technology (IT) and destruction services. As a result, Archive’s services are limited to paper document destruction. Archive does not destroy HDD’s or tapes, and the National Association of Information Destruction (NAID) does not certify Archive for Mobile HDD / data destruction. Archive owns the expired Oregon Price Agreement No. 1547, including pricing, as the result of the buyout.

However, Archive cannot provide the media destruction services.

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DCS requires the company performing the destruction services be NAID certified (NAID AAA Certification® verifies secure data destruction companies’ services’ compliance with all known data protection laws through scheduled and surprise audits by trained, accredited security professionals, fulfilling customers’ regulatory due diligence obligations).

c. Current Need:

DCS requires onsite, media destruction services for hard drives, thumb drives, tape media, CDs and DVDs, etc. As part of hardware end of life decommissioning activities, and to comply with federal regulations governing asset sanitization and disposal, the State needs to make sure all media that could still contain data are securely disposed of in a manner that adequately protects the confidentiality of sensitive data and renders it unrecoverable. The purpose of secure media destruction is to protect against accidental exposure of any State of Oregon controlled data that may be stored on the media. It is important to ensure that media is properly destroyed or erased when it is time to retire the media. If not properly destroyed, the data may be accessed by unauthorized individuals, putting the State at risk of a data breach. If a computing device is to be sent to Surplus or it is removable media (USB Flash Drives, CD/DVD's), it should be securely erased, if possible, and the computer device's hard drives should be shredded. Removable media that is not erasable should be shredded.

The table below reflects an estimated total 5-Yr. Cost:

Year Description Total

2021-2022 On-site media destruction services $10,341

2022-2023 On-site media destruction services $10,341

2023-2024 On-site media destruction services $10,341

2024-2025 On-site media destruction services $10,341

2025-2026 On-site media destruction services $10,341

Total $51,705

d. Proposed Contracting Procedure:

• DAS PS will issue a public notice regarding approval of the SP request on the Oregon Procurement Information Network (ORPIN) as required by Oregon Administrative Rule (OAR) 125-247-0287, for seven (7) calendar days, regarding approval of the SP.

• The notice will include provisions that any affected person may protest approval of the SP.

• DAS PS will respond to and resolve protests, if any. If no protests to this SP are received or sustained, DAS PS will proceed with negotiation and direct award of a contract with Data Safe, Inc. for a term of five (5) years, with a NTE amount of $51,705.

11. Justification for use of Special Procurement: Describe the circumstances that justify the use of a

Special Procurement. Attach relevant documentation.

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An internet search determined that while there are several providers in the service area, there was no information available that vendors were able to perform the destruction at DCS location, ensuring that DCS can have a witness observing the integrity of the destruction process. DCS knows from working with DataSafe under the previous price agreement that DataSafe is able to perform the destruction services at the required location.

DCS needs the onsite, data destruction services approximately two (2) to four (4) times a year. The services are important component of DCS’ effort to safely eliminate data used by state agencies.

12. Findings to Satisfy the Required Standards: This proposed special procurement:

_X_ (a) will be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts because:

The onsite destruction services provided by DataSafe were originally obtained through a statewide agreement that was awarded from a competitive solicitation.

It is unlikely there will be a competition as DataSafe, Inc. is the only company that can provide volume HDD destruction within 500-800 miles of Portland, Oregon.

and

______ (b)(i) will result in substantial cost savings to the contracting agency or to the public or

______ (b)(ii) will otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with the requirements of ORS 279B.055, 279B.060, 279B.065, or 279B.070, or any rules adopted thereunder.

The purpose of secure media destruction is to protect against accidental exposure of any State of Oregon controlled data that may be stored on decommissioned media. It is important to ensure that media is properly destroyed or erased when it is time to retire the media. If not properly destroyed, the data may be accessed by unauthorized individuals putting the State at risk of a data breach and expose citizens’ personal information.

The use of another procurement method to obtain the needed services would likely result in the same outcome with an addition loss of resource and time for the State and DCS.

13. Signature: The actual signature of the Agency Head or designee (e.g., Designated Procurement Officer) is not required on the Request if it is submitted through ORPIN. Agency may elect to attach a signed Request.

Signature: e.g. Electronically in ORPIN _________________ Type Name: Date:

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PART B. The Department of Administrative Services completes Part B.

STATUTORY AND RULE AUTHORITY:

ORS 279B.085(2) states the Director of the Department of Administrative Services may approve a special procurement if the Director finds that a written request submitted under ORS 279B.085(4) demonstrates that the use of a special procurement as described in the request, or an alternative procedure prescribed by the Director will:

(a) Be unlikely to encourage favoritism in the awarding of public contracts or to substantially diminish competition for public contracts; and

(b) (A) Result in substantial cost savings to the contracting agency or to the public; or

(B) Otherwise substantially promote the public interest in a manner that could not practicably be realized by complying with requirements that are applicable under ORS 279B.055, 279B.060, 279B.065 or 279B.070 or under any rules adopted thereunder.

OAR 125-246-0170 delegates the authority of the Director of the Department of Administrative Services to approve special procurements to the State Chief Procurement Officer. OAR 125-247-0285 through 125-247-0288 implement

ORS 279B.085.

OAR 125-247-0700(2) Protests and Judicial Review of Special Procurements designates the State Chief Procurement Officer as the Contract Review Authority.

FINDINGS: The findings are accepted, adopted, and incorporated by reference herein.

CONDITIONS OF APPROVAL:

1. Notice Period. The Authorized Agency shall post the Public Notice on ORPIN. The Special Procurement may not be used until after the completion of the seven (7) day notice period required pursuant to OAR 125- 247- 0287(4), and either:

a. No Written protests are received by the Contract Review Authority, State Chief Procurement Officer, from an Affected Person in response to the notice, or

b. If any protest is received during the notice period, then not until:

i. the State Chief Procurement Officer or delegate issues a written disposition of the protest in accordance with ORS 279B.400 and OAR 125-247-0700 and OAR 137-047-0700, and

ii. confirms in writing the first possible date of use of the Special Procurement.

2. ORS 279A.165 Requirements. Authorized Agency shall comply with the requirements of ORS 279A.165 and

OAR 125-247-0287(12) regarding a report about this Special Procurement. Agency shall use a form and follow the instructions provided by the State Chief Procurement Officer or delegate.

3. Authorized Agency shall comply with all Enterprise Information Services (EIS) conditions and requirements prior to execution of any contracts or amendments and will obtain Department of Justice (DOJ) legal sufficiency review and approval, as may be required.

APPROVED:

Debbie Dennis, State Chief Procurement Officer, Date:

Department of Administrative Services

03/01/2021