Redacted LSJ.pdf

LSJ No.: 036P-12 Limited Source Justification

This acquisition is conducted under the authority of Section 201 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C.501) Multiple Award Schedule Program FAR

8.401 and is justified by the following facts and rationale required under FAR 8.405-6 (a)(1)(i)(b):

(1) Agency and Contracting Activity.

The Department of Homeland Security, Office of Procurement Operations, Federal Protective Service Acquisition Division, proposes to extend a current BPA with Security Consultants Group (SCG) for PSO services in the state of Tennessee, on a limited sources justification.

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

A follow-on acquisition for PSO service through the state of Tennessee is in process and performance under this follow- on effort is anticipated to begin on December 1, 2012. The current BPA, HSCEGI-07-A-00009, is set to expire on July 31, 2012. For reasons described below, this limited source justification would allow a four-month extension of services under the current BPA, until performance under the follow-on effort can begin in December. The contractor currently performing under BPA HSCEGI-07-A-00009 is:

Security Consultants Group (SCG) 102 Mitchell Rd Suite 100 Oak Ridge, TN 37830

The total amount of this extension is estimated at $2.3 million.

(3) Description of Supplies/Services.

The proposed procurement action is to extend PSO service throughout the state of Tennessee for four months until performance can begin under the follow-on contract. As a result of this action, services under SCG BPA HSCEGI-07-A-00009 will be extended for a total of four months, establishing the extension period for ordering and performing services as August 1, 2012 through November 30, 2012. The total amount of this extension is estimated at $2,300,575.76.

Hours Rate Total

Productive 78,384

$28.59

$2,240,998.56

TAS 1,880

$31.69 $ 59,577.20

Total

$2,300,575.76

LSJ No.: 036P-12

(4) Identification of the justification and the rationale.

This acquisition is being conducted under the authority of the Multiple Award Schedule Program in accordance with FAR 8.405-6, ‘Limited sources justification and approval.’ In accordance with FAR 8.405-6(a)(1)(i)(B), the circumstance restricting competition for this acquisition is there is only one source capable of providing the supplies or services required at the level of quality required because the supplies or services are unique or highly specialized.

Currently, SCG is performing PSO services at federally owned and leased facilities throughout the state of Tennessee under BPA HSCEGI-07-A-00009. This BPA is set to expire on July 31, 2012. The follow-on acquisition is in process with an anticipated award date of August 1, 2012 and an anticipated start date of December 1, 2012. It is noted that the contract has a 120 day transition period from the date of award to the performance start date to enable the winning contractor to obtain all necessary licenses, training and other requirements for its PSOs in order to be able to start standing post on December 1, 2012.

Due to extensive screening, training, health, licensing and transition requirements for PSOs under the FPS program, another PSO firm cannot immediately replace the existing contractor. In addition, issuance of a contract to another company would result in substantial duplication of start up costs, including new weaponry, uniforms, weapons permits and other equipment that is best amortized over longer service periods. SCG is familiar with post requirements and locations and is the only contractor at this time that can immediately fulfill the requirement without delay and financial injury to the Government. As a result, a short-term extension of services under the current BPA is necessary to ensure a smooth transition takes place from the existing requirement to the follow-on effort. This extension cannot be accomplished under 52.217-8 because that option period was not priced at the time of award.

It is noted that the delay in the award process which prevented the follow-on acquisition being awarded prior to August 1, 2012 was due to unanticipated amendments to the solicitation as well as extensive questions and answers.

(5) Determination by the ordering activity contracting officer that the anticipated order represents the best value consistent with 8.404(d).

The Contracting Officer has determined that issuing the proposed extension of service to SCG to continue this effort represents the best value and will result in the lowest overall cost alternative, considering price and administrative costs, to meet the Government’s needs. The hourly rates proposed for this extension compared to the existing BPA rates (with any applicable Service Contract Act Adjustment) will be used to further determine fair and reasonable pricing. Finally, the Contracting Officer will negotiate a fair and reasonable total price and may also seek additional discounts before proceeding with the execution of any modification.