JA FY24-00296 - Redacted Version.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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

J&A No.: FY24-00296

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 70RFP218DEC000002, with Paragon Systems, Inc., for Armed Protective Security Officer (PSO) services at several locations in the Washington DC 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, September 1, 2024, through February 28, 2025, to allow time to award the competitive follow-on effort 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 locations in the Washington DC 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 August 31, 2024. The follow-on procurement is currently in the evaluation phase with quotes received by the Government. This follow-on effort will also require a transition period of at least 90 days from the date of award to the performance start date. As such, this extension will allow time to award the follow-on effort and provide an adequate transition period to the new effort for this requirement.

(b) Name and address of the contractor:

Paragon Systems, Inc.

3900 Lincoln Park Drive Suite 300 Herndon, VA 20171

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

(d) Estimated total value: $8,335,988.46 (six (6) months) an additional six (6) months of service under the authority for other than full and open competition cited herein. This will extend the ordering period under contract 70RFP218DEC000002 from September 1, 2024, through February 28, 2025, in the event all six months are needed.

The instant action is to allow FPS AD to continue procuring Armed PSO services from Paragon Systems, Inc. under contract 70RFP218DEC000002 to allow for the award of the competitive follow-on effort and the necessary transition period. This will ensure uninterrupted security services at several locations in the Washington DC area between the expiration of the existing contract and the start of full performance by the successful vendor under the follow-on effort. The proposed sole source extension will ensure services are provided while the evaluation and award process are completed as well as the entire 90-day transition period for the new vendor to train and meet all requirements of the task order prior to the PSOs standing post. As such, this extension will allow time to complete the award and provide an adequate transition period to the new effort for this requirement. The requirement fulfills an existing Government need, and the extension of the existing contract is the most advantageous method of fulfilling the need, price and other factors 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 September 1, 2024, through February 28, 2025, at an approximate value of $8,335,988.46.

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 unique qualifications or the nature of the acquisition requires use of the authority cited.

Paragon Systems Inc. is currently performing Armed PSO services under contract 70RFP218DEC000002 at locations in the Washington, DC area. The contract is set to expire on August 31, 2024. FPS AD is in the process of awarding a competitive follow-on task order via the FPS Multiple Award Contract (MAC) with quotes currently under evaluation. 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 90-day transition period.

Unexpected and unavoidable delays occurred due to the following circumstances: The continual funding challenges with FPS and tenant agencies result in significantly more actions having to be processed this fiscal year, thereby taking away valuable time from other contracts in the evaluation/award process. FPS is a fee for service agency that gets funding from various stakeholders with the Continuing Resolutions. There were significantly more funding issues this year. In Fiscal Year 2023 FPS executed 404 funding actions through July 31, 2023. In Fiscal Year 2024, FPS executed 627 funding actions through July 31, 2024. an increase of 223 actions between July 31, 2023, through July 31, 2024.

Once the requirements were finalized, a Request for Quotations was issued for this requirement with quotes being received in late May 2024. Quotes are currently under evaluation. Therefore, the circumstances listed above necessitates an extension of the incumbent contract to allow for the solicitation and award of the follow-on MAC TO and the required transition period.

The follow-on requirement under this contract is estimated to be awarded on or before December 1, 2024, with an anticipated performance start date on or before March 1, 2025. The follow-on task order will have a transition period with a minimum of approximately 90 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, Paragon Systems, 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 responsibility to protect buildings, grounds, and property that are owned, occupied, or secured by the Federal Government. These documents also establish 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 effort 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 70RFP218DEC000002 with Paragon Systems, Inc. is required to allow placement of a new competitive 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.

no other supplies or se -1. Therefore, no exception to the FAR 5.2 notification requirement applies, and FPS AD posted this requirement on SAM.gov on 8/14/2024, pursuant to FAR 5.201(b)(1)(ii). FPSAD 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). Paragon Systems Inc. submitted a revised price increase for the 6-month extension period, which was reviewed and determined to be fair and reasonable. The price analysis table below shows the comparison in hourly priced rates from different contracts that were competitively awarded for PSO Armed Guard Services in Region 11, the National Capital Region, to the current negotiated fixed hourly rate which is proposed for the J&A period. All contracts have similar Statements of Work and similar training/certification requirements as they are all for Armed PSO services.

Contractor Contract Number Locati on

Basic Hourly Rate

Difference From Current Contract

Paragon Systems, Inc. 70RFP218DEC000002 DC -

Simmons & Golden Security LLC

70RFP223DEC000002 MD

Triple Canopy

70RFP224FREC00012

MD

Triple Canopy 70RFP224FREC00024 DC

As shown above, the rates for the extension are competitive to the rates for other Armed PSO services in the marketplace. As CBAs are in place under this contract, any other contractor would be required to pay PSOs the same wages and fringe benefits as the current contractor, Paragon Systems, Inc. is currently paying its PSOs. In accordance with FAR 15.403-1(b)(3), no certified cost or pricing data will be required because the service is commercially available to the general public.

The Contracting Officer has determined that issuing the proposed extension of services to Paragon Systems Inc. will result in the most advantageous method of fulfilling the need, price, and other factors considered. This extension also takes i continuity of operations and potential costs of disrupting operations.

9. Description of Market Research.

FPS AD has conducted its market research for the new requirement and is familiar with other potential sources and their qualifications. Based on our market research, other firms could provide Armed PSO Services at several locations in the Washington DC area, but not by September 1, 2024, causing unacceptable delays or potentially jeopardizing the safety of government employees, government facilities, and its visitors. Accordingly, no other contractor can provide the services without an unacceptable interruption in service at this time.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

Since it is essential that services continue without interruption for the security of the facilities, its tenants, and visitors, it is in the best interest of the government to extend the ordering period for up to six (6) months under contract 70RFP218DEC000002 with the current contractor.

11. A Listing of the Sources, if Any That Expressed, in Writing, an Interest in the Acquisition.

Not Applicable.

12. A Statement of the Actions, if Any, the Agency May Take to Remove or Overcome Any Barriers to Competition Before Any Subsequent Acquisition for Supplies or Services Required.

This requirement is for the sole purpose of issuing a modification to continue Armed PSO services under contract 70RFP218DEC000002 until the competitive follow-on effort is awarded and transitioned to start. The agency received a finalized requirements package for the follow-on on January 25, 2024. FPS AD plans to make award no later than December 1, 2024, with the new award to start by March 1, 2025. The task order will only be issued under this contract for the necessary length of time required, but not to exceed six (6) months. It is essential that Armed PSO services continue without interruption for the security of several locations in the Washington DC area to ensure the safety of government employees, government facilities, and its visitors at these locations.

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