P25_Illinois - JA_FY25-00176_redact.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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

J&A No.: FY25-00176

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, Office of Procurement Operations (DHS/OPO), Federal Protective Service (FPS), Acquisition Division (AD) proposes to extend the ordering period of contract 70RFP418DE5000001, with Paragon Systems, Inc., for Armed Protective Security Officer (PSO) services throughout Illinois on the basis of 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 five (5) months from July 1, 2025, through November 30, 2025 to allow time to finalize award of the competitive follow-on contract and allow adequate time for transition. This action will result in a modification to extend the ordering period under the current contract to allow placement of a task order to continue critical PSO services throughout the state of Illinois. The task orders will only be issued under this contract for the necessary length of time required, but not to exceed five (5) months. The current contract is set to expire on June 30, 2025. The follow-on procurement is currently in the pre-award phase. During the past two (2) 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. This follow-on effort will require an appropriate transition period of from the date of award to the start of performance. As such, this extension period will allow time to complete the award documentation reviews 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: Five months – $19.7 Million

Period of Performance

Hours Rate Total

PSO

Services

7/1/2025 – 11/30/2025 229,881 $84.40 $19,401,956.00

ESS 7/1/2025 – 11/30/2025 2,917 $105.50 $307,744.00

Total $19,709,700.00

(e) Type of funding: Operations and Maintenance Funds

(f) Year of funding: Fiscal Year 2025

(g) Solicitation number: 70RFP424QE5000002

(h) Background information about the requirement:

Background information about the requirement: FPS AD intends to obtain 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 throughout the Illinois statewide area.

3. Description of Supplies/Services

The requirement is to provide Armed PSO services throughout the state of Illinois. Paragon Systems, Inc. is currently performing under a J&A extension pursuant to FAR 6.302-1 under competitively awarded contract 70RFP418DE5000001 which was authorized via P00022 on June 28, 2024. Services will end under this contract on June 30, 2025. To complete the competitive procurement process 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 five (5) months of service under the authority for other than full and open competition cited herein. This will extend the ordering period under contract 70RFP418DE5000001 from July 1, 2025, through November 30, 2025 in the event all five (5) months are needed.

The instant action is necessary to allow FPS to continue procuring Armed PSO services from Paragon Systems, Inc. under contract 70RFP418DE5000001 while finalizing the award of the competitive follow-on task order and providing an appropriate transition period to the successful offeror. This will ensure uninterrupted security services throughout the state of Illinois 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 processed and will also cover the appropriate transition time needed for the new vendor to train and meet all requirements of the new task order prior to security personnel standing post.

The solicitation was issued on September 17, 2024 under Track #1 (Large Business) Multiple Award Contract, to provide Protective Security Officer and related services. 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 five (5) months of additional PSO services from July 1, 2025, through November 30, 2025; at an approximate value of $19,709,700.00.

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)(1) implemented by the FAR Subpart 6.302-1 entitled “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 satisfactorily performing Armed PSO services under contract 70RFP418DE5000001 throughout the state of Illinois. The contract is set to expire on June 30, 2025. FPS AD is in the process of processing a competitive follow-on task order, however the Government requires additional time to award the follow-on task order and allow for an appropriate transition period. During the past two (2) months, FPS incurred unexpected delays due to a variety of policy updates that led to procedural changes, thus requiring additional documentation which increased review and processing timelines for procurement actions.

The follow-on requirement under this contract is estimated to be awarded on or before September 1, 2025, with an anticipated performance start date on or before December 1, 2025. The follow-on task order will have an appropriate transition period 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, 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 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 ordering period under the current contract 70RFP418DE5000001 with Paragon Systems is required to allow placement of a new competitive task order to provide uninterrupted service, e n s u r e a seamless transition, and e liminate 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 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 will post this requirement on SAM.gov on or before June 25, 2025 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 hourly rate of $84.40 for basic PSO services throughout the state of Illinois for the proposed five (5) month extension 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 and Western Zone to the price established 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.

Only the basic PSO rate is being used for comparison as it makes up the majority of services ordered under this contract.

Contractor

Contract Number Location Hourly Rate

Difference

Paragon 70RFP418DE5000001 IL $84.40 $0.00

AUS 70RFPW25FRWA0005 EWA/ID $79.85 $4.55

Triple Canopy

70RFP225FREC00018 DC $79.94 $4.46

Note: As the PSO hourly Basic Rate comprises the preponderance of hours ordered, the basic rate was used for price comparison purposes.

The chart above reflects the hourly rates as compared to the rates for other PSO services in the marketplace. 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 Agreement (CBA). Although the rates for Illinois are higher than what is currently being paid ($69.24/hour), this increase can be attributed to a wage and health and wellness rate increase to the CBA effective July 1, 2025, current market conditions, and estimated inflation during the period of performance. Based on the analysis above, the Basic PSO hourly rate proposed by Paragon Systems, Inc. is 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.

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 throughout the state of Illinois, 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, Paragon Systems, Inc. is performing satisfactorily as documented under the Contractor Performance Evaluation Assessment Report (CPAR), it is in the best interest of the government to extend the ordering period for up to five (5) months under contract 70RFP418DE5000001with 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 70RFP418DE5000001 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 September 1, 2025, with performance to start by December 1, 2025. It is essential that Armed PSO services continue without interruption for the security of federal facilities throughout the state of Illinois to ensure the safety of government employees, government facilities, and its visitors at these locations.

1. Contracting Officer’s Certification. I certify that the data supporting the recommended use of other than full and open competition is accurate and complete to the best of my knowledge and belief.

Contracting Officer Date

2. Technical/Requirements Personnel Certification. I certify this requirement meets the Government’s minimum need and that the supporting data, which forms a basis for this justification, is complete and accurate.

Technical Representative Date

APPROVAL:

Head of Contracting Activity Date Office of Procurement Operations or Designee