HSAM 3016.507-6 Justification for Exception to Fair Opportunity Exceeding the Simplified Acquisition Threshold

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JEFO No.: FY26-0058

1. Agency and Contracting Activity.

The Department of Homeland Security (DHS), Office of Procurement Operations (OPO), Federal Protective Service Acquisitions Division (FPS AD), prepared this Justification for an Exception to Fair Opportunity.

2. Nature and/or description of the action being approved.

DHS/OPO/FPS AD intends to extend task order 70RFPW25FRW800006 with Diversified Protection Corporation, under FPS multiple award contract (MAC) 70RFP224DEC000004, without considering other awardees under the FPS MAC for Protective Security Officer (PSO) services in accordance with Federal Acquisition Regulation (FAR) 16.507-6(b)(2), FAR Class Deviation 26-04, Rev. 1 for FAR Part 161.

3. A description of the supplies or services required to meet the agency’s need (including the estimated value).

Armed PSO services are required throughout the States of Utah and Wyoming. The estimated value for the 3-month extension period (04/01/2026 – 06/30/2026) is approximately $5,521,021.44.

4. Identify the exception to fair opportunity and supporting rationale, including a demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the exception cited.

RFO FAR 16.507-6(b)(2). Only one awardee is capable of providing the supplies or services required at the level of quality required because the supplies or services ordered are unique or highly specialized.

Rationale:

Task Order 70RFPW25FRW800006 was awarded to Diversified Protection Corporation on March 1, 2025, under multiple award contract 70RFP224DEC000004 for PSO services throughout the states of Utah and Wyoming covering the period of performance of 04/01/2025- 03/31/2026. All MAC awardees were given fair opportunity to be considered for the original order.

1 FAR Class Deviation 26-04, Rev. 1 for FAR Part 16 was issued as part of the Revolutionary FAR Overhaul (RFO), which was implemented in response to Executive Order 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025. Any subsequent citations to FAR Part 16 in this document will be cited as “RFO FAR” for brevity, and are referring specifically to FAR Class Deviation 26-04, Rev. 1 for FAR Part 16.

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Diversified Protection Corporation’s current task order must be extended for a period of up to three (3) months to continue PSO services throughout the states of Utah and Wyoming allowing time to complete the follow-on task order award and internal reviews as well as to accommodate a reasonable transition period. Due to extensive screening, training, health, licensing, and transition requirements for PSOs under the FPS program, award to another PSO firm cannot immediately be made. If a new PSO firm were to immediately replace Diversified Protection Corporation under this effort, a significant and severe drop in overall security would result and subject Federal Government personnel, visitors, and assets to jeopardy. Another contractor would need to complete a transition period to obtain all necessary licenses, training, and other requirements for its PSOs in order to be able to stand post. The estimated cost for an additional three (3) months of service under this task order is $5,521,021.44 (summarized in Table 1). If the task order is not extended, FPS AD will suffer potential dollar impacts over and above $5,521,021.44. Issuance of a short-term task order to another company would result in substantial delay and duplication of startup costs, including new weaponry, uniforms, weapons permits, and other equipment that is best amortized over longer service periods. No other company can immediately take over staffing at Utah and Wyoming locations, which would result in posts not covered until another contractor completes all the requirements to stand post.

Diversified Protection Corporation is familiar with the post requirements and these locations and is the only contractor at this time that can immediately fulfill the requirement without delay and financial injury to the Government.

Table 1 Extension Amount Estimated Hours Bill Rate Total PSO Basic / TAS 81,693.75 $67.13 $5,484,101.44

ESS 500.00 $73.84 $ 36,920.00

Total 3-months: $5,521,021.44 -TAS=Temporary Additional Services -ESS=Emergency Security Services

5. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

Diversified Protection Corporation has agreed to continue providing Armed PSO services with an adjusted bill rate to incorporate updated wage and fringe benefits as a result of a Collective Bargaining Agreements (CBA) with PSO wage and fringe benefit increases that take effect on 04/01/2026 (See Table 2). Under the Service Contract Labor Standards (SCLS) the vendor is obligated to pay these increases to their employees.

Table 2 Current Rate:

04/01/2025- 03/31/2026

Proposed Bill Rate:

04/01/2026 – 06/30/2026

Percentage Increase:

PSO Basic/TAS $63.95 $67.13 4.9%

ESS $70.35 $73.84 4.9%

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Table 3 outlines the estimated value of the 3-month extension of the existing order (70RFPW25FRW800006), without ESS.

Table 3 Contract/Task Order Contractor Location PSO Rate Estimated

Extension Total Amount

70RFP224DEC000004 Diversified Utah $67.13 $5,484,101.44 70RFPW25FRW800006 Protection Wyoming

Corporation

The price analysis in Table 4 shows comparison in pricing from different MAC task orders that were awarded for Armed PSO Services by FPS AD to the price proposed by Diversified Protection Corporation for this extension period. All task orders have similar statements of work as they are all for Armed PSO Services. Additionally, each task order’s PSO rate was previously evaluated prior to award and was determined fair and reasonable. It is also noted that there have been no significant revisions to the scope of the contract or general market conditions that would significantly alter the competitive landscape upon which the prices were based.

Table 4 Contract/Task Order Contractor Location PSO Rate Difference from Current Task Order

70RFP224DEC000004

70RFPW25FRW800006

Diversified Protection Corporation

Utah Wyoming

$67.13

70RFP225DEC000006

70RFPW26FRWA00001

GXC Inc. Alaska $80.30 $13.17

70RFP225DEC000011

70RFPW26FRWA00002

Metro East Joint Venture

LLC

Eastern Washington, Idaho

$72.19 $ 5.06

Diversified Protection Corporation’s proposed rate for this extension period was compared to the competitively awarded rates established under similar task orders supporting FPS. Based on the detailed analysis above, the basic hourly rate proposed is lower than the current range of prices for similar services across the FPS portfolio of MAC task orders in the west zone. Emergency Security Services have not been used during the current period of performance ending 03/31/2026. 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. Overall, the anticipated cost to the Government is determined to be fair and reasonable.

6. Any other facts supporting the justification.

The Government requires additional time to complete the procurement prior to issuing the award of the follow-on task order and to accommodate a reasonable transition period. Unexpected and unavoidable delays occurred due to the following circumstances: The follow-on procurement is

- 4 -currently in the pre-award phase. The source selection phase took longer than expected due to delays with completing the technical evaluation, and the need to obtain revised pricing from the vendors before a best value determination and award could be made. The delays contributed to the need for the period of performance start date change. A post-closing amendment was issued to all evaluated vendors changing the period of performance due to the delay in award and allowing them sufficient time to resubmit their pricing. This caused further delays as all the award information had to be re-evaluated and award documentation re-written, leading to further upper management reviews to approve the award. The Government encountered challenges in securing customers funding outside of the contracting office's control. These circumstances necessitate the extension of the incumbent task order for PSO services throughout Utah and Wyoming to allow for the award of the follow-on MAC task order and the required transition period.

7. A statement of the actions, if any, the agency may take to remove or overcome any barriers that led to the exception to fair opportunity before any subsequent acquisition for the supplies or services is made.

FPS AD is preparing to award two competitive task orders under Track #2 of the current MAC contract for small business for this requirement. The follow-on task order for PSO services throughout Utah and Wyoming was awarded on March 9, 2026. Funding has still not been received to award the Odgen, Utah Internal Revenue Services task order but is estimated to be awarded on or before March 30, 2026, with an anticipated period of performance start date of July 1, 2026.

8. DHS intends to post this notification on SAM.gov in accordance with RFO FAR 16.507-6(f).

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9. Technical/Requirements Personnel Certification.

In accordance with RFO FAR 16.507-6(d)(2)(ix), I certify that this requirement meets the Government’s minimum need and that the supporting data, which form a basis for the justification, are accurate and complete.

Digitally signed by RODGER V SPEARS Date: 2026.03.12 10:12:50 -06'00'

Rodger Spears Date Alternate Contracting Officer Representative

10. Contracting Officer Certification In accordance with RFO FAR 16.507-6(d)(2)(viii), I certify that this justification is accurate and complete to the best of my knowledge and belief.

Digitally signed by PAUL W METZGER Date: 2026.03.12 08:27:05 -07'00'

Paul Metzger Date Contracting Officer

11. Approval.

I hereby determine that the circumstance in RFO FAR 16.507-6(b)(2) applies.

Digitally signed by DAVID A RITTER Date: 2026.03.29 16:23:18 -04'00'

Date Procuring Activity Advocate for Competition Or Designee Office of Procurement Operations

RODGER V SPEARS

PAUL W METZGER

DAVID A RITTER