AGMA Security Service, Inc. (HSHQE2-13-R-00007)

B-418647 Jun 24, 2020 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights AGMA Security Service, Inc., of Hormigueros, Puerto Rico, a small business, protests the extension of a contract awarded to The COGAR Group, Ltd., of Falls Church, Virginia, by the Department of Homeland Security (DHS), Federal Protective Service, for armed protective security officer (PSO) services at Customs and Border Protection facilities in Puerto Rico. AGMA argues that DHS lacks a valid justification to extend COGAR's contract on a sole-source basis. We dismiss the protest. View Decision DOCUMENT FOR PUBLIC RELEASE The decision issued on the date below was subject to a GAO Protective Order. No party requested redactions; we are therefore releasing the decision in its entirety.   Decision Matter of:  AGMA Security Service, Inc. File:  B-418647 Date:  June 24, 2020 Alan Grayson, Esq., Law Office of Alan Grayson; and Alberto Fuertes Masarovic, Esq., Law Office of Alberto Fuertes Masarovic, for the protester. Howard W. Miller, Esq., and Denise A. McLane, Esq., Department of Homeland Security, for the agency. Paul N. Wengert, Esq., and Tania Calhoun, Esq., Office of the General Counsel, GAO, participated in the preparation of the decision. DIGEST Protest that agency improperly extended and increased the maximum value of the incumbent contract for protective security officer services is dismissed as untimely where the protest was filed more than 10 days after the agency posted a notice stating its intention to continue to obtain services from the incumbent contractor on the basis that the incumbent was the only source able to meet the agency’s requirements.   DECISION   AGMA Security Service, Inc., of Hormigueros, Puerto Rico, a small business, protests the extension of a contract awarded to The COGAR Group, Ltd., of Falls Church, Virginia, by the Department of Homeland Security (DHS), Federal Protective Service, for armed protective security officer (PSO) services at Customs and Border Protection facilities in Puerto Rico.  AGMA argues that DHS lacks a valid justification to extend COGAR’s contract on a sole-source basis.  We dismiss the protest.  BACKGROUND AGMA challenges a modification, issued on March 25, 2020 and valued at $4.7 million, to COGAR’s existing contract for PSO services.  The modification extends from April 1, 2020, to March 21, 2021, the 5-year contract[1] that initially was awarded to COGAR on April 2, 2014, under request for proposals (RFP) No. HSHQE2‑13‑R‑00007.  AR, Tab 2, Memorandum of Law (MOL), at 1.  This modification followed the issuance of an RFP by DHS on May 2, 2019, seeking proposals from participants in the Small Business Administration’s (SBA) section 8(a) program[2] to provide PSO services.  After reviewing proposals from multiple offerors, including AGMA, DHS announced that it had selected Diversified Protection Corporation for award.  A competitor then submitted a protest challenging Diversified’s eligibility for award as a small business, after which the SBA ruled that Diversified was not eligible for award.  In response to the SBA ruling, DHS canceled the award to Diversified, and stated that it would reevaluate the remaining proposals and select a new awardee.  However, on January 16, 2020, DHS notified the offerors that the RFP had been canceled, and a new RFP would be “released in the future.”  AR, Tab 17, RFP amend. 6, at 1.  On February 20, the contracting officer prepared a sole-source justification and approval (J&A) document to extend COGAR’s contract for one year, citing 41 U.S.C. § 3304(a)(1) and FAR 6.302-1 as the authority for the agency’s action.  AR, Tab 20, Justification and Approval for Other than Full and Open Competition, at 3, 7.  The cognizant DHS competition advocate approved the J&A on March 23.  Id. at 7. On the evening of March 25, DHS posted a notice on the website at beta.SAM.gov, stating that DHS “intends to issue a sole source extension of up to twelve months to the current ordering period of an existing indefinite delivery/indefinite quantity type contract” with COGAR.  AR, Tab 21, beta.SAM.gov posting, at 2.  The March 25 notice also included the following statement: The Government intends to solicit and negotiate on a sole source basis with The COGAR Group, Ltd. under the authority of 41 U.S.C. 3304(a)(1) as implemented by FAR 6.302-1, only one responsible source and no other supplies or services will satisfy agency requirements.  This notice of intent is not a request for competitive proposals.  A Request for Proposal (RFP) will not be made available.  Id.  On April 2, DHS issued a modification to COGAR’s contract that extended the term of the contract to March 31, 2021, increased the maximum value of the contract by $4.7 million, and increased the contract’s hourly labor rate.