Attachment 3 - Redacted J and A - 70Z03826QB0000008.pdf

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

41 U.S.C. § 1901(e)(2)

SOLICITATION NO. 70Z03826QB0000008

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) 12.102(b) (FAR Class Deviation 25-111), the justification for the use of the statutory authority under RFO 12.102(b) is justified by the following facts and rationale required under RFO 6.104-1 as follows:

1. Agency and Contracting Activity. The Department of Homeland Security, United States Coast

Guard (USCG), Aviation Logistics Center (ALC), Short Range Recovery (SRR) Product Line Division proposes to enter into a contract on a basis other than full and open competition.

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

(a) Nature of the action: This is a sole source acquisition. The SRR Procurement Branch requests to solicit and award on a sole source basis, a contract for various spare parts used on the USCG MH-65E aircraft. This requirement will provide replacement ready for issues supplies for the fleet and programmed depot maintenance program. These supplies are manufactured by Spectrum Associates, Inc., the Original Equipment Manufacturer (OEM) and the only authorized distributor as indicated in Attachment 1.

(b) Name and address of the contractor:

Spectrum Associates, Inc.

183 Plains Road Milford, CT 06461 Cage Code: 55723

(c) Type of action: The USCG, ALC, SRR Division intends to award a Firm Fixed- Price Indefinite Delivery Requirements type contract consisting of a one-year Base Period and four (4) one-year Option Periods, if exercised. The supplies will be procured using individually funded firm fixed-price delivery orders.

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1 FAR Class Deviation 25-11 is implemented as a result of Revolutionary FAR Overhaul, referred as RFO, following Executive Order 14275, Restoring Common Sense to Federal Procurement. All citations in this document follow applicable DHS RFO Deviations therefore are referred as RFO.

(d) Estimated total value (including options): $743,691 broken down as follows:

Period Length of Period Total Base 12 Months $126,767 Option One 12 Months $136,908 Option Two 12 Months $147,861 Option Three 12 Months $159,690 Option Four 12 Months $172,465

Total $743,691

Note: These supplies were previously awarded under purchase orders.

(e) Type of funding: Operations and Support funds.

(f) Year of funding: Fiscal Year 2026 through 2031 funds will be used as appropriate.

(g) Solicitation number: 70Z03826QB0000008.

(h) Background information about the requirement: The item in this requirement are various spare parts which provide effective supply support for the MH-65E Aircraft.

Additionally, they have all been identified through their Acquisition Method Code (AMC) and their Acquisition Method Suffix Code (AMSC) as being sole source to the OEM, Spectrum Associates, Inc.

3. Description of Supplies/Services. This requirement is for the supplies for the various spare parts to be provided by the OEM, Spectrum Associates, Inc. This requirement will provide replacement ready for issue supplies for the fleet and programmed depot maintenance program.

The part numbers for this requirement are listed in Tab 3 of the contract file.

The MH-65E aircraft utilizes these various spare parts. The USCG currently operates a fleet of ninety-seven (97) MH-65E aircraft. This specialized, high demand aircraft currently enables the USCG to perform missions such as search and rescue, law enforcement, international ice patrol, marine environmental protection, and marine resource conservation. With a demanding operational tempo, aircraft condition and availability are essential to mission success.

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. 1901(e)(2) as implemented by RFO Subpart 12.102(b), Restricting Competition. Responsible sources are limited to the OEM and their authorized distributors.

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) The use of 41 U.S.C. 1901(e)(2) is necessary because Spectrum Associates, located in

Milford, CT, is the OEM of the MH-65E aircraft supplies to be purchased under this requirement and only authorized distributor in North America. All supplies purchased and delivered under the contract will require clear, documented traceability to the OEM.

Supplies produced by another manufacturer may compromise form, fit and function which will compromise the structural integrity of the aircraft thereby creating a safety of flight risk. A safety of flight risk is never acceptable, therefore, no alternate supplies or deviations from OEM specifications will be considered for this purchase.

(b) In an attempt to promote competition, extensive market research was conducted (see Section 9 below for market research details). The USCG contacted Spectrum Associates on October 6, 2025, to determine whether Spectrum Associates remains the OEM authorized distributor in North America. In response, Spectrum Associates provided a statement of letter dated October 9, 2025, stating that Spectrum Associates was the only authorized distributor for the supplies in this requirement.

(c) Alternatives could not be considered because Spectrum Associates is the OEM and only approved source selling these products. Use of only the OEM will ensure all supplies are manufactured to OEM specifications for form, fit, and function and will include documented traceability of supplies to the OEM. The supplies must operate effectively with various components eliminating safety flight risks.

(d) If this sole source justification and Approval (J&A) is not approved, it will jeopardize performance of the USCG’s mission due to grounding of the aircraft as a result of no stock being available as components are required. Additionally, in a fiscal and stock age environment requiring minimal investment in inventory, it is critically important to secure sources that can satisfy the contractual requirements needed to react to ever-changing mission requirements. In order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement supplies, the supplies listed in this requirement must be supplied by the OEM or an approved source. Components supplied by an unauthorized OEM supported facility will compromise structural and system integrity if the aircraft, putting aircrew personnel and aircraft at a safety of flight risk. The USCG neither compromises nor makes exceptions in matters of human safety and protection of Government property and does not accept lower standards in these matters.

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

Sources as is Practicable.

(a) This requirement was forecast in the Department of Homeland Security (DHS) Acquisition Planning Forecast System (APFS), APFS No. F2025072156, published October 22, 2025 and included in the DHS Forecast of Small Business Opportunities. There were no inquiries received in response to the published APFS.

(b) In accordance with RFO 5.201(a) and RFO 12.202, the proposed contract action will be advertised on the contract opportunities website at SAM.gov as a combined sole source synopsis/solicitation.

(c) The estimated date of publication is February 2025.

(d) The exceptions under RFO 5.202 do not apply to this requirement.

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

The contracting officer determines that the anticipated price(s) will be fair and reasonable based on comparison to historical prices paid or similar items in a related industry.

9. Description of Market Research.

In accordance with RFO Part 10, various methods of market research were launched for this requirement:

(a) Market research was conducted during August 2025 through October 2025 and consisted of internet searches utilizing General Services Administration (GSA) Advantage and Defense Logistics Agency’s Federal Mall (FEDMall). A review was conducted of the Asset Maintenance Management Information System (AMMIS) database history. Existing DHS-wide and multi-component contract vehicles with DHS Strategic Sourcing Program Office and on the DHS Enterprise Wide Contract Vehicle Portal were reviewed and were determined out of scope for this requirement. Based on the extensive research in conjunction with the statement provided by the OEM, on October 9, 2025, this requirement will be Sole Source. A Sources Sought Notice was not issued because the procurement situation would not change. The USCG will maintain open communication with the OEM and will continually conduct surveys to identify possible additional sources that may eventually receive OEM authorizations to distribute these supplies.

(b) Not Applicable.

(c) Market Research was conducted. See Section 9(a).

(d) This requirement does not have or require patents, copyrights, and/or intellectual property.

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

(a) The USCG does not own the necessary technical data required to support the manufacture of the required supplies. The drawings and technical data are proprietary and available only from the OEM. The USCG did not purchase the rights as part of the original acquisition. Due to the proprietary rights, it will be difficult to take steps to foster competition.

(b) The supplies in the schedule cannot be reversed, engineered and/or modified by other sources, because in order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement supplies, the supplies listed in this requirement must be obtained from the OEM or an OEM approved source.

(c) The proposed contract shall not be subject to restrictions of RFO 6.302-1 for follow-on acquisitions as described in RFO 6.302 (a)(2)(iii).

(d) Not applicable to RFO Subpart 6.302-2(d) or HSAR 3006.302-270. 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.

No capable sources have expressed interest in writing, in regard to this acquisition.

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.

Complete specifications and drawings for the components are proprietary to the OEM and therefore not available to the USCG. The USCG does not possess the technical expertise nor the software data rights for the components. It is difficult to take steps to foster competition as the manufacturing, performance, and acceptance data are proprietary to the OEM. As the AICP, ALC is tasked with supporting systems that have been deployed for use in the aviation community. In an effort to increase competition among manufacturers, affiliates, and distributors, SRR Product Line members attend annual aviation trade shows and host industry days at ALC.

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13. 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.

Luis Mojica Date Contracting Officer, USCG, ALC, SRR

14. Technical/Requirements Personnel Certification.

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

Maggie D. Cox Date Technical Representative/Item Manager, USCG, ALC, SRR

APPROVAL

Luis Mojica Date Contracting Officer, USCG, ALC, SRR