JA Hana FY24-00188 Redacted.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

41 U.S.C. 3304(a)(1)

J&A No.: FY24-00188

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3 and in accordance with the requirements of FAR 6.303-1, the justification for the use of the statutory authority under FAR Subpart 6.3 is justified by the following facts and rationale required under FAR 6.303-2 as follows:

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), Office of Procurement Operations (OPO), Federal Protective Service (FPS), Acquisition Division (AD) proposes to extend the ordering period of contract 70RFP218DEC000019, with Hana Industries, Inc., for Armed Protective Security Officer (PSO) services at two (2) IRS locations in the Washington DC and Maryland area on a basis other than full and open competition.

2. Nature and/or Description of the Action being Approved.

(a) Nature of the action: FPSAD intends to procure protective security officer services on a noncompetitive basis for up to six (6) months, June 1, 2024, through November 30, 2024, to allow time to award the competitive follow-on contract and provide adequate time for transition.

This action will result in a modification to extend the ordering period under the current contract to allow placement of a task order to continue critical PSO services at two (2) IRS locations in the Washington DC and Maryland area. The task order will only be extended under this contract for the necessary length of time required, but not to exceed six (6) months. The current contract is set to expire on May 31, 2024. The follow-on procurement is currently in the pre-solicitation phase.

The Program Office submitted a requirements package to the contracting office on September 19, 2023. This follow-on effort will also require a transition period of at least 30 days from the date of award to the performance start date. As such, this extension will allow time to complete the award and provide an adequate transition period to the new effort for this requirement.

(b) Name and address of the contractor:

Hana Industries, Inc.

841 Bishop Street Suite 1050 Honolulu, HI 96813

(c) Contract type: Indefinite Delivery, Indefinite Quantity (IDIQ), Firm Fixed Price

(d) Estimated total value: $6,011,256.86 (six (6) months) post. The Program Office submitted a requirements package for this follow-on effort which was received by FPS AD on The requirement fulfills an existing Government need and the extension of the existing contract is the most advantageous method of fulfilling the Government’s need, price and other factors considered. This contract extension also takes into account the government’s need for continuity of operations and potential costs of disrupting operations. The period of performance for this extension is for up to six (6) months of additional Armed PSO services from June 1, 2024, through November 30, 2024, at an approximate value of $6,011,256.86.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 41 U.S.C. 3304(a)(1) implemented by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.

5. Identification of Exception to the Buy American Statute

Not Applicable

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

Hana Industries, Inc. is currently performing Armed PSO services under contract 70RFP218DEC000019 at two (2) IRS locations in the Maryland and Washington, DC area. The contract is set to expire on May 31, 2024. FPS AD is in the process of processing a competitive follow-on contract. However, due to unexpected delays, throughout the pre-solicitation process, the government requires additional time to complete the procurement prior to issuing the award of the follow-on contract, which requires a minimum of a 30-day transition period.

Unexpected and unavoidable delays occurred due to the following circumstances: While the Program Office submitted the original requirements package to the contracting office in September 2023, it had to be revised several times and the final requirements package was j not received until December 2023, still with a need for the Contracting Officer to obtain some follow-up information from the Program Office regarding requirements.. .. It is noted that the FPS Region 11 program office was prioritizing recompete packages for over ten (10) separate Multiple Award Contract (MAC) protective security officer requirements. Track #1 (unrestricted) of the MAC was awarded in December 2023 with a start date of January 1, 2024. This recompete cycle has put a strain on both FPS AD and the FPS Region 11 Program Office, which has further necessitated delays in receiving an updated requirements package for this effort. Furthermore, other priority recompetes based on more imminent expiring deadlines of other incumbent contacts, which resulted in new single award IDIQ small business set-aside contracts, took precedence over the present requirement because FPS had to strategically chose to focus its very limited resources on these specific procurements based on the contracts expiring to avoid an unacceptable lapse in essential services. Therefore, the circumstances listed above necessitates an extension of the incumbent contract to allow for the evaluation and award of the follow-on contract and the required transition period.

The follow-on requirement under this contract is estimated to be awarded on or before November 1, 2024, with an anticipated performance start date on or before December 1, 2024. The follow-on contract will have a transition period with a minimum of approximately 30 days from the date of award to the performance start date. This transition period enables the follow-on contractor to obtain all necessary equipment, licenses, training, and other certification/suitability requirements for its employees to be able to begin standing post at the start of performance. Due to extensive screening, training, health, licensing, and transition requirements for required for Armed PSOs under the FPS program, another Armed PSO firm cannot immediately replace the existing contractor without a significant and severe drop in overall security jeopardizing federal government personnel, visitors, and assets. Accordingly, it is also not feasible for any portion of the work to be segregated to allow for competition. The incumbent contractor, Hana Industries, Inc., is familiar with the instant requirement, facility locations, and has a fully qualified staff in place and is the only contractor at this time that can immediately fulfill the requirement without delay and interruption of services. As a result, a short-term extension of services under the current contract is necessary to ensure a seamless transition takes place from the existing requirement to the follow-on effort.

Title 40 United States Code (U.S.C.) §1315 gives DHS the responsibility to protect Federal facilities and the people thereon. Presidential Policy Directive 21 (PPD-21), and the National Infrastructure Protection Plan (NIPP) further refine DHS’s responsibility to protect buildings, grounds, and property that are owned, occupied, or secured by the Federal Government. These documents also establish U.S. policy for the protection and resilience of the Nation’s critical infrastructure and provide a framework for integrating efforts designed to enhance the safety of critical infrastructure. Given the reality of terrorist threats, it is in the best interests of DHS and the public to continue to allow the incumbent contractor to provide services until the follow-on contract is appropriately transitioned.

Effective Armed PSO services are integral to the FPS mission to respond to terrorist attacks, domestic workplace violence, trespassing, disorderly conduct, and emergency medical situations. Armed PSO services also mitigate threats be detecting firearms, hazardous materials, and suspicious packages at these locations. Due to these critical roles, a modification to extend the current ordering period under contract 70RFP218DEC000019 with Hana Industries, Inc. is required to allow placement of a new task order to provide continued services to ensure uninterrupted service, a seamless transition, and to eliminate potential disruption in Armed PSO services.

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

The circumstance restricting competition for this acquisition is that “only one responsible source and no other supplies or services will satisfy agency requirements,” pursuant to FAR 6.302-1. Therefore, no exception to the FAR 5.2 notification requirement applies, and FPS AD posted this requirement on SAM.gov on 5/22/2024, pursuant to FAR 5.201(b)(1)(ii). FPS AD intends to make this justification publicly available pursuant to FAR 6.305.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer has determined that the proposed rates will be fair and reasonable based on comparison of the proposed prices to historical prices paid for the same or similar items in accordance with FAR 15.404-1(b)(2)(ii). Hana Industries Inc. submitted a revised price increase for