Redacted JA FY25-00143.pdf

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JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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

J&A No.: FY25-00143

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 two locations (DC1476 and DC1477) located in Washington DC, within the National Capital Region (NCR), 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 two (2) months, from June 1, 2025, through July 31, 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 modification to continue critical PSO services at the two locations in Washington DC. The task order will only be extended under this contract for the necessary length of time required, but not to exceed two (2) months. The current contract is set to expire on May 31, 2025. Nine of the 11 sites originally on the have already been recompeted and are on an effort that began on March 1, 2025. These remaining two locations are being realigned to another recompete (under RFQ #70RFP225QEC000026) due to the geography of the locations being better situated with the sites under this other recompete. 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 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 Herndon, VA 20171

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

(d) Estimated total value: $514,983.96 (two (2) months)

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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)(l) 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.

Paragon Systems Inc. is currently performing Armed PSO services under contract 70RFP218DEC000002 at these two locations in Washington, DC. The contract is set to expire on May 31, 2025.

FPS AD has completed the solicitation, pre-award activities, and is prepared to make a selection for award on the competitive follow-on task order. However, the government requires additional time to complete the final steps in issuing the award and providing the necessary 30-day transition period to the eventual awardee. This will ensure uninterrupted security services at two locations in Washington DC between the expiration of the existing contract and the start of the full performance by the successful vendor under the follow-on effort. Unanticipated delays occurred previously as the original requirements package provided by the Program Office required revisions to accommodate FPS HQ operational priorities to include continuous coverage for breaks (relief) at all posts (including Supervisory PSO posts), among other changes made to the Statement of Work. FPS also prioritized the award of a nationwide small business Multiple Award Contract (MAC) that will be an agency wide contract vehicle with an ordering period anticipated to commence on 06/01/2025. Therefore, the circumstances listed above necessitates an extension of the incumbent contract to allow for the solicitation, 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 June 30, 2025, with an anticipated performance start date for these two locations on August 1, 2026. The follow-on task effort will have a transition period with a mandatory 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 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. Paragon is familiar with the instant requirements, facility locations, have fully qualified staff in place and are the only contractor at this time that can immediately fulfill the requirements 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 TO.

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 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

Page 4 of5 locations. Due to these critical roles, a modification to extend the current ordering period under contract 70RFP2 l 8DEC000002 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.

The circwnstance 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 5/13/2025 pursuant to FAR 5.201(b)(1)(ii). FPSAD intends to make this justification publicly available pursuant to FAR 6.305, via posting it on SAM no later than June 10, 2025.

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

The Contracting Officer (CO) 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 price proposal for the 2-month extension period, which was reviewed and determined to be fair and reasonable.

The PSO bill rate will increase from , and the rate also includes both PSO services and supervision under a single rate. The CO/CS have reviewed the vendor's price proposal and determined that these increases to the PSO bill rate are primarily a result of mandatory service contract labor standards (SCLS) increases to employee's wage and fringe benefits from annual CBAs negotiated increases.

Labor represents the most significant cost component and the SCLS requires minimum wages and benefits to be paid by vendors to the PSOs, the CO/CS confirmed that Paragon correctly priced the minimum wages and fringe benefits from the applicable collective bargaining agreement effective June 1, 2025 for this effort.

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/TO Location PSOHourly Rate

Difference From Contract

Paragon Systems, Inc. 70RFP2 l 8DEC000002 DC

Triple Canopy Inc 70RFP2 l 8DEC000018/

70RFP222FREC00019 DC

First Coast Security Solutions

70RFP224DEC000005/

70RFP224FREC00039 DC

Triple Canopy Inc 70RFP224DEC00001l/

70RFP224FREC00012 DC

Note: Difference is calculated from the highest anticipated rate on the current contract (PSO:

As shown above, the rates for the extension are competitive to the rates for other Armed PSO services in the marketplace. The CO/CS also notes that contract 70RFP218DEC000002 is the only remaining contract in FPS Region 11's PSO contract inventory that contains supervisory PSO costs in the PSO bill rate; therefore, the

Page 5 of5 comparison to other contract/task orders (that have separate CLINs for supervisory PSO services) may not be completely equitable. The PSO component of the bill rate would be significantly less if supervision was a separate billable element. Additionally, as Collective Bargaining Agreements (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-l(b)(3), no certified cost or pricing data will be required because the service is commercially available to the general public.

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 two locations in Washington DC, but not by June 1, 2025, 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 two (2) months under contract 70RFP2 I8DEC000002 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 Require

This requirement is for the sole purpose of issuing a modification to continue Armed PSO services under contract 70RFP2 l 8DEC000002 until the competitive follow-on effort is awarded and transitioned to start. FPS AD plans to make award no later than June 30, 2025, with services commencing at buildings DC1476 and DC1477 to start by August 1, 2025. The extension of the existing task order will only be issued under this contract for the necessary length of time required, but not to exceed two (2) months. It is essential that Armed PSO services continue without interruption for the security of the two locations in Washington DC to ensure the safety of government employees, government facilities, and its visitors at these locations.

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