Redacted JA FY25-00141.pdf

JUSTIFICATION AND APPROVAL FOR OTHER THAN FULL AND OPEN

COMPETITION

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

J&A No.: FY25-00141

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 70RFP218DEC000019, with Hana Industries, Inc., for armed Protective Security Officer (PSO) services at two (2) Internal Revenue Service (IRS) locations in the Washington DC and Maryland area, within the National Capital Region (NCR), 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 twelve (12) months, June 1, 2025, through May 31, 2026, to allow time to award the competitive follow-on effort and provide 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 at two (2) IRS locations in Washington, DC and Maryland, which includes the IRS Headquarters facility. The task order will only be extended under this contract for the necessary length of time required, but not to exceed twelve (12) months. The current contract is set to expire on May 31, 2025. The follow-on procurement is currently in the pre-solicitation/solicitation phase with internal documents and reviews being completed in order to solicit. We anticipate that the solicitation will be issued on or before 09/01/2025. This follow-on effort will also require a transition period of 120 days at a minimum from the date of award to the performance start date. As such, this request will allow FPS AD to continue procuring Armed PSO services from the incumbent vendor under the IDIQ Contract to allow for the award of the competitive follow-on effort and the necessary transition period.

(b) Name and address of the contractor:

Hana Industries, Inc.

841 Bishop Street Suite 1050 Honolulu, HI 96813

(c) Contract type: Indefinite Delivery, Indefinite Quantity (IDIQ), Firm Fixed Price proposed sole source extension will ensure services are provided while the award 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 effort prior to the security personnel standing post.

The requirement fulfills an existing Government need, and the extension of the existing contract is the and potential costs of disrupting operations. The period of performance for this extension is for up to twelve (12) months of additional armed PSO services from June 1, 2025, through May 31, 2026, at an approximate value of $13,646,164.50.

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 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.

acquisition requires use of the authority cited.

Hana Industries, Inc. is currently performing Armed PSO services under contract 70RFP218DEC000019 at two (2) IRS locations in Maryland and Washington, DC. The contract is set to expire on May 31, 2025. FPS AD is in the process of processing a competitive follow-on effort, for which the follow-on procurement is currently in the pre-solicitation/solicitation phase with internal documents and reviews being completed in order to solicit. However, due to unexpected delays, throughout the pre-solicitation process, the government requires additional time to complete the procurement prior to issuing the award of the follow-on effort, which now requires a minimum of a 120-day transition period.

Unanticipated delays occurred previously as the original requirements package provided by the Program Office required revisions to accommodate FPS HQ operational priorities to include continuous coverage for breaks (relief) at all posts (including Supervisory PSO posts), among other changes made to the Statement of Work. These changes were communicated by the Program Office determined these changes were necessary. Furthermore, FPS mandated that all follow-on effort now require a minimum of a 120-day transition period, which in turn extends the procurement timeline.

FPS also prioritized the award of a nationwide small business Multiple Award Contract (MAC) that will be an agency wide contract vehicle with an ordering period anticipated to commence on 06/01/2025. Therefore, the circumstances listed above necessitates an extension of the incumbent contract to allow for the solicitation, evaluation and award of the follow-on effort and the required transition period.

The follow-on requirement under this contract is estimated to be awarded on or before February 1, 2026, with an anticipated performance start date on or before June 1, 2026. The follow-on effort will have a transition period with a minimum of approximately 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 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 for the required for armed PSOs under the FPS program, another armed 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, Hana Industries, Inc., is familiar with the instant requirement, facility locations, and has 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, an extension of services under the current contract is necessary to ensure continuous coverage and that 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 that are owned, occupied, or secured by the Federal Government. These documents also establish de 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 effort is 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 70RFP218DEC000019 with Hana Industries, Inc. is required to allow placement of a new task order to provide continued services 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.

-1. Therefore, no exception to the FAR 5.2 notification requirement applies, and FPS AD posted this requirement on SAM.gov on 5/13/2025, pursuant to FAR 5.201(b)(1)(ii). FPS AD intends to make this justification publicly available pursuant to FAR 6.305, via posting it on SAM no later than June 10, 2025.

8. Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable.

The Contracting Officer (CO) 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 15.404-1(b)(2)(ii). Hana Industries Inc. submitted a price proposal for the 12-month extension period, which was reviewed by FPS AD and determined to be fair and reasonable.

The PSO bill rate will increase from $61.08 to $63.46 (3.9% increase) and the supervisory PSO bill the best interest of the government to extend the ordering period for up to twelve (12) months under contract 70RFP218DEC000019 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 70RFP218DEC000019 until the competitive follow-on effort is awarded and transitioned to start. FPS AD plans to make award no later than February 1, 2026, with the new award to start by June 01, 2026. The new task order will extend services under this contract for the necessary length of time required, but not to exceed twelve (12) months. It is essential that armed PSO services continue without interruption for the security of the two (2) IRS locations in Maryland and Washington, DC to ensure the safety of government employees, government facilities, and its visitors at these locations.

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