70Z03825RL0000004-Attachment 3- Redacted J and A.docx

JUSTIFICATION FOR OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. 3204(a)(1) Solicitation 70Z03825RL0000004

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) Subpart 6.3, the following facts and rationale justify the use of such authority:

1. Agency and Contracting Activity.

The Department of Homeland Security, United States Coast Guard (USCG), Aviation Logistics Center (ALC), Medium Range Surveillance (MRS) Division, Elizabeth City, NC, proposes to enter into a contract on the basis other than full and open competition.

2. Nature and/or Description of the Action being Approved.

(a) Nature of the action: The USCG, ALC, MRS Division seeks approval to award a firm fixed price (FFP) Indefinite Delivery Requirements contract on a sole source basis to Airbus DS Military Aircraft, Inc., the Original Equipment Manufacturer (OEM), for the procurement of the HC-144 Component Repair Services as identified on the attached Schedule to support the HC-144 Maritime Patrol Aircraft (MPA).

(b) Name and address of the contractor:

Airbus DS Military Aircraft, Inc.

8100 Airbus Military Drive Mobile, AL 36608 Cage Code: 0DAF1

(c) Type of action: FFP, Indefinite Delivery Requirements Contract

(d) Estimated total value (including options):

Period Total

Base Year

$8,184,956

Option Year 1

$8,931,018

Option Year 2

$9,734,809

Option Year 3

$10,610,942

Option Year 4

$11,565,927

Services are currently provided under USCG contract 70Z03821DL0000002 with a period of performance end date of January 12, 2026.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2026

(g) Solicitation number: 70Z03825RL0000004

(h) Background information about the requirement: This requirement is a follow-on requirement for Airbus DS Military Aircraft Inc, repair and overhaul services provided under USCG contract 70Z03821DL00000002 that expires in January 2026. These services provide operational capability and continuity for the USCG HC-144 aircraft.

3. Description of Supplies/Services.

The contract is for services to repair and overhaul accessories and components to support HC-144 aircraft. The USCG has identified 222 line items for the base period and each of the four additional option periods, with estimated quantities needing repair or overhaul. These items listed are essential for safe operation of the aircraft as well as mission success. See attached list of items for repair/overhaul.

4. Identification of Statutory Authority Permitting Other Than Full and Open Competition.

The statutory authority permitting other than full and open competition is 10 U.S.C. § 3204(a) 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 Act.

Not Applicable.

6. Demonstration that the Proposed Contractor’s Unique Qualifications or the Nature of the Acquisition Require Use of the Authority Cited.

(a) Rationale for using the authority cited in section 4 of the J&A: Airbus DS Military Aircraft, Inc., is the OEM of the accessories and components for the HC-144 aircraft. The data rights relative to the repair/overhaul of these accessories and components are proprietary to the OEM and are not available from another source. Airbus DS Military Aircraft Inc is the only OEM authorized repair/overhaul facility authorized for the components identified in this requirement. The USCG does not have adequate technical data to provide to potential offerors to promote competition.

(b) Details covering what events lead to the situation requiring use of other than full and open competition procedures including whether any portion of the work can be segregated to allow for competition.

The USCG self-certifies its aircraft in accordance with the standards established by the Federal Aviation Administration (FAA) and promulgated in CFR Title 14. The USCG will only procure parts which have airworthiness approval. The CFR Title 14, Aeronautics and Space, Part 21, Certification Procedures for Products and Articles, governs the procedural requirements for issuing and changing design approvals, production approvals, airworthiness certificates, and airworthiness approvals. Title 14 CFR 21 defines airworthiness approval as a document issued by the FAA for an aircraft, aircraft engine, propeller, or article which certifies that the aircraft, aircraft engine, propeller, or article conforms to its approved design and is in a condition for safe operation.

(c) Summarize alternatives considered and why they will not work.

The USCG is prohibited from disclosing any technical documents in their possession as these were developed at private expense by Airbus DS Military Aircraft, Inc and are proprietary to the HC-144 aircraft. As the OEM, Airbus is the only source in possession of the proprietary data, engineering design change, and product improvement capability. No alternative sources were considered as the data rights are proprietary to the OEM or any OEM authorized repair/overhaul facilities. The USCG is not able to reverse engineer any of the identified components nor share any repair/overhaul documents to find additional sources and facilitate competition for this requirement.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided. The repairs and overhauls of HC-144 components require technical data and engineering resources which are supplied by the OEM. The OEM also provides access to up-to-date manuals and publications that are required to ensure availability of operational aircraft in support of USCG missions. Failure to approve this J&A will jeopardize the performance of the USCG’s mission due to grounding of the aircraft because of insufficient airworthy parts that will result in un available parts for issue.

(e) Section is required to be completed when the J&A includes the exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2)).

Not applicable

7. Description of Efforts Made to Ensure that Offers are Solicited from as Many Potential Sources as is Practicable.

(a) Sources Sought Notice 70Z03825IL0000002 was posted on SAM.gov on January 10, 2025. The USCG received one timely response to the Sources Sought Notice, from this acquisition is forecasted in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), number: F2024066114 published on December 11, 2024, and can be found at https://www.apfs.gov.

(b) If an announcement is being planned for posting in Contract Opportunities, provide the estimated date of publication. The Justification for Other than Full and Open Competition (J&A) will be posted to the Government-wide Point of Entry (GPE), via https://www.sam.gov, with the Notice of Intent that USCG intend to award to Airbus on a sole source basis. Any capability statement, or quotation received will be considered prior to award and the Contracting Officer will make a determination to solicit the requirement based on limited competition, if appropriate.

(c) If an announcement will not be published, identify the applicable exception under FAR 5.202.

Not applicable

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

The contracting officer anticipates that prices will be determined fair and reasonable based on prior procurement history and the IGCE. The Contracting Officer will evaluate all proposals in accordance with FAR 15.404-1(b)(2).

9. Description of Market Research.

(a) Describe the market research techniques used, results, date when the market research was conducted, and how it was used by the contracting officer to determine price reasonableness. Market Research indicates that the components are not listed on a General Services Administration (GSA) contract or available through GSA Advantage. Market research also consisted of querying the Acquisition history, Internet Search, Inventory Locator System (ILS), Catalog and product literature, DHS-Wide and Multi-Component Contract Vehicles, Excess from Other Agencies, AbilityOne, Contracting Opportunities, and the Acquisition Planning Forecast System all revealed no alternate supply sources. The OEM, Airbus DS Military Aircraft Inc, is the only approved source to provide the required repair and overhaul services. These repair and overhaul services for the HC-144 are commercial in nature and are prevalent in private aviation and commercial aviation. All terms and conditions are not expected to differ from customary terms and conditions in the marketplace or standard Government practices.

(b) Describe the market research results that support the determination that the items are not available.

This J&A requirement does not include the exceptions at FAR 25.103(b)(2) or FAR 25.002(a)(2) for the Buy American Act.

(c) If market research was not conducted, state why. Not applicable

(d) If patents, copyrights, and/or intellectual property are applicable to the acquisition, describe the circumstances for acquiring a patented or copyrighted product on the representation of the intellectual property holder that has not been licensed for resale.

This requirement does not have nor requires patents, copyrights, and/or intellectual property.

10. Any Other Facts Supporting the Use of Other Than Full and Open Competition.

(a) An explanation why technical data packages, specifications, statement of work, or purchase descriptions are not suitable for full and open competition.

Airbus DS Military, Inc., is the only approved source to provide the identified services. Therefore, this requirement is not suitable for full and open competition. The technical data package, including drawings, specifications, manuals, and publications required to develop additional sources to provide the repair and overhaul services were not procured by the Government and are proprietary to the OEM.

(b) Discuss why your requirement cannot be modified to enhance competition.

The services to be procured cannot be modified to enhance competition because the components and the subsequent technical data are not available from any company other than the OEM.

(c) For a proposed contract subject to the restrictions of FAR 6.302-1 for follow-on acquisitions as described in 6.302-1(a)(2)(iii), provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived.

This requirement is not a follow-on for the continued provision of highly specialized services pursuant to FAR 6.302-1(a)(2)(ii).

(d) For a proposed contract subject to the restrictions of FAR 6.302-2(d) or HSAR 3006.302-270 and where FAR 6.302-2 is cited as the authority, describe the exceptional circumstances allowing for an award for a period of performance in excess of the one-year limitation (applicable to all federal agencies) or the DHS-specific statutory 150-day limitation.

Not applicable to FAR 6.302-2(d) or HSAR 3006.3020270. This is not considered unusual and compelling urgency.

11. A Listing of the Sources, if Any, that Expressed, in Writing, an Interest in the Acquisition.

Airbus DS Military Aircraft, Inc responded to the Sources Sought notice posted. No other sources have expressed an interest in this requirement.

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.

a. Will the Government revise overly technical specifications, acquire data rights, etc?

The manufacturing, performance, and acceptance data are proprietary to the aircraft OEM. The USCG does not possess adequate and appropriate technical data to provide to potential offerors.

Airbus DS Military, Inc., has not expressed any interest nor a desire to sell the proprietary data rights for the propellers and propeller components identified in this requirement. There are no actions the USCG can take to remove or overcome barriers to competition for this requirement. In the event Airbus DS Military, Inc. chooses to release proprietary data rights, the acquisition of the identified services will be pursued on a full and open basis.

The USCG will continue to research maintenance and repair web-based subscription services, alternate approved systems, and industry periodicals, and sends representatives to various aviation trade shows and conferences to seek out all possible legally achieved purchase/service options and source.

b. When a J&A is issued for the purposes of acquiring goods or services while a competitive procurement is being conducted, the justification should include a detailed timeline for completion of the competitive procurement. The period of performance for the sole source action should fairly balance the time needed to complete the competitive procurement. The focus should be on minimizing the need for additional sole source awards.

Not applicable

**Review and Approval signatures are in contract file.**