Redacted JA-FY25-0094.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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

J&A No.: FY25-094

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 70RFP218DEC000009, with Paragon Systems, Inc., for Armed Protective Security Officer (PSO) services at locations throughout Washington DC on a basis other than full and open competition.

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

(a) Nature of the action: FPS AD intends to procure protective security officer services on a noncompetitive basis for up to four (4) months, April 1, 2025, through July 31, 2025, to allow time to award the competitive follow-on Multiple Award Contract (MAC) task order (TO) and provide adequate time for transition. This action will result in a modification for a new ordering period under the current contract to allow placement of a task order to continue critical PSO services at locations in Washington DC. The task order will only be issued under the extension period for the necessary length of time required, but not to exceed four (4) months. The current contract is set to expire on March 31, 2025. The follow-on procurement is currently in the pre-solicitation phase and is anticipated to be solicited in April 2025. This follow-on effort will also require a transition period of at least 60 days from the date of award to the performance start date.

As such, this extension will allow time to complete the award of the follow-on task order 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: $6,727,590.09 (four (4) months)

70RFP218DEC000009 Period of Performance Hours Rate Total PSO Services _______________ ___________407, D_____________)

04/01/2025 - 07/31/2025

Supervisory PSO Services ) 04/01/2025 - 04/30/2025 ------- ______ _______ Supervisory PSO Services 04/01/2025 - 07/31/2025 ------- ______ _________ Supervisory PSO Services ) 04/01/2025 - 07/31/2025 ------ ______ _______ Totals _________ $6,727,590.09

(e) Type of funding: Operations and Support Funds

(f) Year of funding: Fiscal Year2025

(g) Solicitation number: Not Applicable

(h) Background information about the requirement:

FPS AD intends to procure protective security officer 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 the seven (7) following locations in Washington DC covered under this contract:

Building Address

3. Description of Supplies/Services.

The requirement is to provide Armed PSO services at locations in Washington DC. Paragon Systems, Inc. is currently performing under the six (6) month extension in accordance with FAR 6.302-1 of competitively awarded contract 70RFP218DEC000009. The Procuring Activity Advocate for Competition (PACC) approved the previous Justification and Approval (J&A) FY24-00324 on September 26, 2024, for Paragon Systems to continue performing PSO services for the period October 1, 2024, through March 31, 2025. To complete the competitive procurement process and provide a transition period for the new follow-on MAC TO, FPS AD finds it necessary to request approval for up to an additional four (4) months of service under the authority for other than full and open competition cited herein. This will extend the ordering period under contract 70RFP218DEC000009 from April 1, 2025, through July 31, 2025, in the event all four months are needed.

The instant action is to allow FPS AD to continue procuring Armed PSO services from Paragon Systems, Inc. under contract 70RFP218DEC000009 to allow for the award of the competitive follow-on MAC TO and the necessary transition period. This will ensure uninterrupted security services at 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 follow-on requirement is being solicited, evaluated, and awarded as well as during the entire transition period 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 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 four (4) months of additional Armed PSO services from April 1, 2025, through July 31, 2025, at an approximate value of$6,727,590.09.

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 70RFP218DEC000009 at several locations in the Washington DC area. The contract is set to expire on March 31, 2025. FPS AD is in the process of processing a competitive follow-on task order under the FPS PSO MAC. However, the Government requires additional time to complete the procurement prior to issuing the award of the follow-on task order under the MAC, which requires a minimum of a 60-day transition period.

Unexpected and unavoidable delays occurred due to the following circumstances: One of the larger facilities on this effort, ______, will have a significant reduction in PSO coverage. Since DHS moved out of this facility, ______has been the sole stakeholder at ______. After several months of discussions, ______ and FPS recently agreed on the revised PSO requirements for this facility resulting in this reduction of services. The result of these changes is a total reduction of 7 continuously staffed PSO posts and the addition of 1 supervisory staffed post. G______ has publicly indicated that it plans to sell this facility which would result in the eventual cancellation of PSO services at this location. In addition, another stakeholder requested cancellation of PSO services at ______ at the end of April 2025 and PSO services at this facility will be removed from the recompete altogether. Further, several other stakeholders requested revised PSO/Supervisory PSO coverage at their facilities which necessitated revisions to the requirements package. Requirements are being finalized at this juncture.

Therefore, the circumstances listed above necessitates an extension of the incumbent contract to allow for the solicitation, evaluation, 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 May 31, 2025, with an anticipated performance start date on or before August 1, 2025. The follow-on task order will have a transition period with a minimum of approximately 60 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 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 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 MAC TO is awarded and 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 ordering period under contract 70RFP218DEC000009 with Paragon Systems, Inc. is required to allow placement of a new task order to provide continued services is needed 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 posted this requirement on SAM.gov on 03/17/2025, pursuant to FAR 5.201(b)(l)(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 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- l(b )(2)(ii). Paragon Systems Inc. submitted a price increase for the 4-month extension period, which was reviewed, negotiated, 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

Location PSO Hourly Rate

Dollar Difference

Percentage Difference

Supervisor Hourly Rate

Dollar Difference

Percentage Difference

Paragon Systems, Inc. 70RFP2 I8DEC000009 DC ______ __ ___ ______ ______ ______ First Coast Security Solutions 70RFP224FREC00039 MD ______ ____ ___ ______ ______ ______ Triple Canopy 70RFP225FREC00012 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 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, 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.

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 Washington DC, but not by April 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 four (4) months under contract 70RFP2 l 8DEC000009 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 70RFP218DEC000009 until the competitive follow-on MAC TO is awarded and transitioned to start.

FPS AD plans to make award no later than May 31, 2025, with performance to start under the new Task Order award by August 1, 2025. The task order will only be issued under the extension period for the necessary length of time required, but not to exceed four (4) 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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