Justification Approval FY26-0002 - Upstate NY_Redacted.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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

J & A No.: FY26-0002

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) 6.103 (FAR Class Deviation 25-11) and in accordance with the requirements of FAR 6.104 (FAR Class Deviation 25-11), the justification for the use of the statutory authority under FAR 6.103 (FAR Class Deviation 25-11) is justified by the following facts and rationale required under FAR 6.104-1 (FAR Class Deviation 25-11) 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 70RFP120DE2000002, with Paragon Systems, Inc., for Armed Protective Security Officer (PSO) services at various sites throughout the Upstate, New York area on the basis of other than full and open competition.

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

(a) Nature of action: FPS AD intends to procure protective security officer services on a noncompetitive basis for up to six (6) months, November 01, 2025 – April 30, 2026, to allow time to finalize award of the competitive follow-on effort and provide adequate time for transition. This action will result in a modification to extend the ordering period of the current contract to allow placement of a task order to continue critical PSO services throughout the Upstate, New York area. The task order will only be issued 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 October 31, 2025. This follow-on procurement is currently in the Solicitation phase and will be awarded no later than January 1, 2026.

This follow-on effort will require a transition period of 120-days from the date of award to the performance start date. As such, this extension will allow time to provide an adequate transition period to the new effort for this requirement.

(b) Name and address of the contractor.

Paragon Systems, Inc.

13900 Lincoln Park Drive Suite 300 Herndon VA 20171-3244

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

(d) Estimated total value: Six (6) months -

Period of Performance

Hours Rate Total

PSO

Services

11/1/2025 – 4/30/2026

190,000.00

ESS 11/1/2025 –

4/30/2026

1,750.00

191,750.00

(e) Type of funding: Operations and support funds

(f) Year of funding: Fiscal Year 2026

(g) Solicitation number: Not Applicable

(h) Background information about the requirement: FPS AD intends to procure protective security officer services pursuant to FAR 6.103-1 (FAR Class Deviation 25-11) as only one responsible source and no other sources will satisfy agency requirements for the continuation of PSO services at facilities throughout the Upstate, New York area.

3. Description of Services

The requirement is to provide Armed Protective Security Officer services at various locations throughout the Upstate New York area. Paragon Systems, Inc. is currently performing under the six (6) month option period available under FAR 52.217-8, Option to Extend Services, of the competitively awarded contract. The Procuring Activity Advocate for Competition (PACC) approved the Determination & Finding (D&F) to exercise the option available under FAR 52.217-8 on April 16, 2025. Services will end under this contract on October 31, 2025. To complete the competitive procurement process and provide an adequate transition period for the new follow-on task order, FPS AD finds it necessary to request approval for up to 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 70RFP120DE2000002 from November 1, 2025, through April 30, 2026, in the event all six months are needed.

The instant action is to allow FPS AD to continue procuring PSO services from Paragon Systems, Inc. under contract 70RFP120DE2000002 while processing the solicitation, evaluation, and award of the competitive follow on effort as well as during the required transition period. This will ensure uninterrupted security services at federal facilities throughout the Upstate New York 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 during the 120-day transition for the new vendor to train and meet all requirements of the contract prior to the security personnel standing post.

The requirement fulfills an existing government need and the extension of the existing contract is the most advantageous and only practical 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 PSO services from November 1, 2025, through April 30, 2026; at an approximate value of

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 6.103-1 (FAR Class Deviation 25-11), 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.

Paragon Systems, Inc. is currently satisfactorily performing PSO services under Contract 70RFP120DE2000002, at various locations throughout the Upstate New York area. The contract is set to expire on October 31, 2025. The follow-on requirement is currently in the solicitation phase and will be awarded no later than January 1, 2026, with an anticipated performance start date of May 1, 2026. The follow-on task order will have a transition period of 120-days from the date of award to the performance start date. Due to unexpected delays throughout the Solicitation phase the government requires additional time to complete the solicitation phase, evaluate quotes, make an award decision, and provide the required 120-day transition period in order to avoid a detrimental break in services. Over the past several months, competing operational priorities across FPS diverted resources from supporting the acquisition planning to more pressing efforts to avoid security lapses due to more imminent expirations across multiple states. In addition, a complete procurement package was not received from the program office until June 2025. This delay was a result of changes to the requirement including SOW exhibit updates, several edits to the Post Exhibit, and a new operational mandate that required 100% audit of all PSO files. Therefore, these circumstances necessitate an extension of the incumbent contract to allow time to award the follow-on effort and provide the required 120-day transition period. This transition period enables the follow-on contractor to obtain all necessary equipment, licenses, training, and other certifications/ suitability requirements for its employees to be able to begin standing post at the start of performance. Due to extensive screening, training, licensing, and transition requirements for PSOs under the FPS program, another PSO firm cannot immediately replace the existing contractor without a severe and unacceptable degradation in overall security jeopardizing federal government personnel, visitors, and assets. For these reasons, 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 or interruption of services. As a result, an 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 therein. 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 task order is appropriately transitioned. Effective PSO services are integral to the FPS mission to respond to terrorist attacks, domestic workplace violence, trespassing, disorderly conduct, and emergency medical situations. PSO services also mitigate threats by detecting firearms, hazardous materials, and suspicious packages at these locations. Due to these critical roles, a modification to extend the current contract 70RFP120DE2000002 with Paragon Systems, 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 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 requirement is that “only one responsible source and no other supplies or services will satisfy agency requirements,” pursuant to FAR 6.103-1 (FAR Class Deviation 25-11). Therefore, no exception to the FAR 5.2 notification requirement applies, and FPS AD posted this requirement to SAM.gov on October 14, 2025, pursuant to FAR 5.201(b)(1)(ii). FPS AD intends to make this justification publicly available pursuant to FAR 6.301 (FAR Class Deviation 25-11).

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 hourly rate of is 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 increased the hourly rate from due to inflation and other direct costs related to the contract term exceeding the projected duration. Paragon further provided that these increases were necessary due to 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, its visitors, and the fact that the current contractor, Paragon Systems, Inc. is performing satisfactorily as documented under the Contractor Performance Assessment Report (CPAR), it is in the best interest of the government to extend contract 70RFP120DE2000002 for up to six (6) months 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 PSO services under Contract 70RFP120DE2000002 until the competitive follow-on task order is transitioned to start no later than May 01, 2026. It is essential that services continue without interruption for the security of federal facilities throughout the Upstate New York area to include government personnel and visitors at these locations.