PSO NE JA FY25-00195.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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

J&A No.: FY25-00195

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 70RFP118DE1000001, with Paragon Systems, Inc., for Armed Protective Security Officer (PSO) services at various sites throughout the New England territory (Maine, New Hampshire, Massachusetts, Vermont) 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, August 1, 2025 - January 31, 2026, to allow time to finalize award of the competitive follow-on Task Order 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 New England territory. 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 July 31, 2025. The follow-on procurement is currently in the pre-award phase with an anticipated award date no later than October 1, 2025. The follow-on effort requires a transition period of up to 120 days from the date of award to the performance start date. As such, this extension will allow time FPS AD to continue procuring Armed PSO services from the incumbent vendor in order to complete the award and 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

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

(d) Estimated total value:

(e) Type of funding: Operations and Maintenance funds

(f) Year of funding: Fiscal Year 2025& 2026

(g) Solicitation number: Not Applicable

(h) Background information about the requirement: FPS AD intends to procure 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 PSO services at facilities throughout the New England territory.

3. Description of Supplies/Services

The purpose of this extension is to provide armed PSO services at locations throughout New England territory. Paragon Systems, Inc. is currently performing under the four-month extension period authorized via Justification and Approval (J&A) FY25-087 on March 28, 2025, pursuant to FAR 6.302-1. Services are scheduled to end under this contract on July 31, 2025. To allow time to finalize the task order award and provide a 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 FAR 6.302-1. This will extend the ordering period under Contract 70RFP118DE1000001 from August 01, 2025, through January 31, 2026.

The instant action is to allow FPS AD to continue procuring PSO services from Paragon Systems, Inc. under contract 70RFP118DE1000001 while processing the award of the competitive follow-on task order and to provide an adequate transition period. This will ensure uninterrupted security services at federal facilities throughout the New England territory 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 award is being finalized and during the transition period for the new vendor to train and meet all requirements of the new task order prior to PSOs 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 considers 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 August 01, 2025, through January 31, 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)(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 satisfactorily performing PSO services under Contract 70RFP118DE1000001. The contract is set to expire on July 31, 2025. FPS AD is in the process of awarding a competitive follow-on task order which was solicited via the unrestricted track of the FPS AD Multiple Award Contract (MAC) via Request for Quotation (RFQ) 70RFP124QE1000001 and is currently in the award phase. Due to unexpected delays and circumstances beyond the control of the contracting office, the Government requires additional time to award the follow-on task order and allow up to a 120-day transition period. Over the past several months, FPS incurred unexpected delays due a variety of policy updates that led to procedural changes, thus requiring additional documentation which increased reviews and processing timelines for procurement actions.

While an award decision had been made and documentation finalized, the anticipated awardee rescinded their offer on July 10, 2025. This required rework of the award decision documents. Therefore, the circumstances listed above necessitate an extension of the incumbent contract to allow for the evaluation and award of the follow-on effort and the required transition period.

The follow-on requirement for this contract is estimated to be awarded on or before October 01, 2025, with an anticipated performance start date on or before February 01, 2026. The follow-on task order will have a transition period of up to 120 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 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 70RFP118DE1000001 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 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 6.302-1. Therefore, no exception to the FAR 5.2 notification requirement applies, and FPS AD posted this requirement to SAM.gov on July 23, 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 hourly rate of is the rate proposed by Paragon Systems for the period of performance from August 01, 2025, through January 31, 2026, which will be modified into the contract under modification P00024. The proposed price by Paragon Systems is currently being paid for under this contract. It is important to note that the vendor is required by the Service Contract Labor Standards to pay increased wages to PSOs under this contract in accordance with the incorporated Collective Bargaining Agreements (CBAs) . The increases in the rates under the CBAs will occur during this required extension period and are consistent with the increase requested for this period of performance. Additionally, the rates included the elimination of self-relief posts and an increase in other direct costs due to inflation.

The Contracting Officer has determined that the hourly rate of for PSO services throughout the New England territory (Maine, New Hampshire, Massachusetts, Vermont) proposed for the pending J&A six-month extension period 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 in hourly priced rates from different contracts that were competitively awarded for PSO Armed Guard Services for the FPS Eastern Zone to the price 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.

As shown above, the proposed rate for the extension period is competitive to the rates for the other FPS PSO contract performed within the FPS Eastern Zone. As Collective Bargaining Agreements 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 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.

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 our market research, other firms could provide PSO services at throughout the New England territory locations;

however, they could not do so by August 01, 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 federal facilities throughout the New England territory, the tenants that occupy those facilities and visitors, and the fact that Paragon is performing satisfactorily as documented under the current Contractor Performance Assessment Report (CPAR), it is in the best interest of the government to extend contract 70RFP118DE1000001 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 70RFP118DE1000001 until the competitive follow-on task order is awarded and transitioned to start. FPS AD is currently processing a follow-on requirement which is taking longer than originally projected. The agency plans to make award no later than October 1, 2025, with the new award to start no later than February 01, 2026. It is essential that services continue without interruption for the security of federal facilities throughout the New England territory to include government personnel and visitors at these locations.