FY25-00181 Redacted.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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

J&A No.: FY25- 00181

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 70RFP419DE7000002, with North American Security., Inc (NAS) for Armed Protective Security Officer (PSO) services at various sites throughout the state of Arkansas (AR) 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 Armed PSO services on a noncompetitive basis for up to seven (7) months from, July 1, 2025 through January 31, 2026, to allow time to solicit, evaluate offers, and award a competitive follow-on contract and allow adequate time for the transition. This action will result in a modification to extend the ordering period of the current contract and to allow placement of a task order to continue critical PSO services throughout the state of AR. The task orders will only be issued under this contract for the necessary length of time required, but not to exceed seven (7) months. The current contract is set to expire on June 30, 2025. The follow-on procurement is currently in the pre-solicitation phase. This follow-on effort will also require a transition period of 120 days from the date of award to the performance start date. As such, this request will allow FPS AD to continue procuring Armed PSO services from the incumbent vendor under the contract to allow for the award of the competitive follow-on effort and the necessary transition period.

(b) Name and address of the contractor:

North American Security., Inc 1701 S. Kelly Avenue Edmond, OK 73013

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

(d) Estimated total value:

Period of Performance Description CLIN Rate Hours Amount July 1, 2025 – January 31, PSO Services 6001

ESS 6002

Total

(e) Type of funding: Operations and Support Funds

(f) Year of funding: Fiscal Year 2025 and Fiscal Year 2026.

(g) Solicitation number: Not Applicable

(h) Background information about the requirement:

FPS AD intends to procure Armed PSO services pursuant to FAR 6.302-1, as only one responsible source and no other sources will satisfy agency requirements for the continuation of Armed PSO services at facilities throughout the state of AR.

3. Description of Supplies/Services.

The requirement is to provide Armed PSO services throughout the state of Arkansas. NAS is currently performing under the six (6) month option period available under FAR 52.217-8, Option to Extend Services, of competitively awarded contract 70RFP419DE7000002. The Procuring Activity Advocate for Competition (PACC) approved the Determination & Finding (D&F) to exercise the option available under FAR 52.217-8 on December 13, 2024 for the period of performance starting on January 01, 2025 and ending June 30, 2025. To complete the competitive procurement process and provide a transition period for the new follow-on effort, FPS AD finds it necessary to request approval for up to an additional seven (7) months of service under the authority for other than full and open competition cited herein. This will extend the ordering period under Contract 70RFP419DE7000002 from July 1, 2025, through January 31, 2026 in the event all seven months are needed.

The instant action is requested to allow FPS AD to continue procuring Armed PSO services from

NAS under Contract 70RFP419DE7000002 while processing the solicitation, evaluation, and award of the competitive follow-on effort and provide the necessary transition period. This will ensure uninterrupted security services at federal facilities throughout the state of AR 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 uninterrupted services are provided while the follow-on effort is being solicited, evaluated, and awarded and will also cover the 120-day transition for the new vendor to train and meet all requirements of the task order 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 seven (7) months of additional Armed PSO services from July 1, 2025 through January 31, 2026, at an approximate value of 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, NAS 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 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 by detecting firearms, hazardous materials, and suspicious packages at these locations. Due to these critical roles, a modification to extend the current Contract 70RFP419DE7000002, with NAS is required to allow placement of a new competitive task order under the FPS Small Business MAC 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 intends to post this requirement to SAM.gov on or about June 25, 2025, 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 current hourly rate for PSO services on the contract is for the 52.217-8 extension period. The proposed rate for the J&A extension period is . While the rate is higher per hour, approximately , than the current contract rate, this is attributed to current market conditions, estimated inflation, increased costs for all other direct costs, such as ammunition, fuel, intermediate weapons, and uniforms during the period of performance, and wage rate increases to the Collective Bargaining Agreements (CBAs), effective January 1, 2025, through this extension, PSO wages will have increased of . It is important to note that the vendor is required by the Service Contract Labor Standards to pay increased wages and fringe benefits to PSOs under this contract in accordance with the incorporated CBAs.

The Contracting Officer (CO) has determined that the proposed 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). The price analysis table below shows the comparison of hourly priced rates from different contracts that were competitively awarded for Armed PSO Services, to the current negotiated fixed hourly rate which is proposed for the J&A period. All contracts have similar SOW and similar training/certification requirements as they are all for Armed PSO services.

Contractor

Contract Number

Location

Basic Hourly Rate

Difference

70RFP419DE7000002 AR

70RFP124DE4000005 S. FL

70RFP424DE5000002 OH

70RFP424DE5000001 IN

Based on the analysis above, the PSO hourly rate proposed by NAS for the extension period is competitively in line with the current range of prices for similar services and is determined to be fair and reasonable. 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 proposed rate for the extension period is competitive when compared to the rates for other PSO contracts.

Only the PSO hourly Basic/TAS rate was evaluated for price comparison purposes as these services comprise the preponderance of the hours that will be ordered.

9. Description of Market Research.

The agency has conducted market research for the new requirement and is familiar with the other potential sources and their qualifications. Based on the market research, other firms could provide Armed PSO services in the state of AR, however they could not do so by July 1, 2025, causing unacceptable delays or potentially jeopardizing the safety of government employees or 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, and the fact that the current contractor, NAS is performing , as documented under the Contractor Performance Assessment Report (CPAR), it is in the best interest of the Government to extend the ordering period for up to seven (7) months under Contact 70RFP419DE7000002 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 70RFP419DE7000002 until the competitive follow-on is awarded and transitioned to start. The agency is currently processing a follow-on requirement which is taking longer than originally projected due to unanticipated issues and delays. FPS AD plans to make award no later than October 3, 2025, with the new award to start by February 1, 2026. It is essential that Armed PSO services continue without interruption for the security of federal facilities throughout the state of AR to ensure the safety of government employees, government facilities, and its visitors at these locations.

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