Attachment 3 - Redacted J and A - 70Z03826QB0000045.pdf

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JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3205

SOLICITATION NO. 70Z03826QB0000045

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by Federal Acquisition Regulation (FAR) 12.102(b), FAR Class Deviation 25-21 Rev. 1 for FAR Part 121, FAR 6.103, FAR Class Deviation 25-11 for FAR Part 6 and in accordance with the requirements of RFO 6.104, the justification for the use of the statutory authority under RFO 6.103 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 prepared this justification full and open competition.

2. Nature and/or Description of the Action being Approved. The USCG, ALC, SRR Product Line Division intends to procure on a sole source basis, various spare parts used on the USCG MH65E aircraft. The parts are manufactured by Airbus Helicopters, France (AHF), the Original Equipment Manufacturer (OEM). The only authorized distributor in North America is Airbus Helicopters, Inc. (AHI), who handles the parts and products on behalf of the manufacturer as indicated in Attachment 1.

(a) Nature of the action: The USCG, ALC, SRR Product Line Division intends to procure on a sole source basis various spare parts used on the USCG MH-65E aircraft.

(b) Name and address of the contractor:

Airbus Helicopters, Inc.

2701 N. Forum Drive Grand Prairie, TX 75052-7099 Cage Code: 3GSZ1

(c) Contract Type: The USCG intends to award a Firm Fixed-Price Indefinite

Delivery Requirements type contract consisting of a seven (7) month Base Period and four (4) one-year Option Periods, if exercised. With the knowledge that the OEM, AHF will only allow an option period to end on December 31st each option

In this document, citations to RFO Parts 12, 6, 10, 15, and 25 are citations specifically to Federal Acquisition Regulation (FAR) Class Deviation 25-21 Rev. 1 for FAR Part 12, FAR Class Deviation 25-11 for FAR Part 6, FAR Class Deviation 25-06 for FAR Part 10, FAR Class Deviation 26-08 Rev. 1 for FAR Part 15, and FAR Class Deviation 26-09, Rev. 1 for FAR Part 25, which were issued as part of the Revolutionary FAR Overhaul (RFO), which was implemented in response to Executive Order 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025.

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5. Identification of Exception to the Buy American Statute.

This J&A requirement does not include the exception at RFO 25.103(b)(2) or RFO 25.202(a)(2) for the Buy American Act, due to the fact these parts are manufactured by a foreign entity.

6. Demonstration that the proposed contractor�s unique qualifications or the nature of the acquisition requires use of the authority cited. ALC has a requirement to purchase, on a recurring basis, spare parts manufactured by the OEM, AHF. AHF has one (1) authorized distributor for North American customers, their affiliates, AHI, located in Grand Prairie, TX (See Attachment 1).

The USCG self-certifies its� aircraft in IAW standards established by the Code of Federal Regulations (CFR) and the Federal Aviation Administration (FAA). 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 approval.

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.

The USCG will only procure parts which have airworthiness approval. IAW 14 CFR 21.9, with limited exceptions, only a replacement or modification article produced under a type certificate or produced under an FAA production approval is suitable for installation on a type-certified product. The CFR Title 14, Subpart K, covers the procedures for the FAA Parts Manufacturer Approval (PMA). The FAA PMA process is acceptable for an alternate manufacturer for the parts listed in this requirement, provided that the vendor submits a complete data package ensuring that the parts meets or exceed OEM specifications and subsequently, passes the USCG form, fit, and function requirements. To date, there are no known approved FAA PMA�s for the parts listed in this requirement.

The FAA issued Advisory Circular (AC) 20-62(series) to provide information and guidance for use in determining the eligibility, quality, and identification of aeronautical replacement parts and materials intended for installation on United States (U.S.) type-certificated products and articles, and to enable compliance with CFR Title 14. The AC states that acceptable replacement articles should be identified using one of the following methods:

1) If applicable, Certificate of Conformance;

2) FAA Technical Standard Order (TSO) markings;

3) FAA PMA symbol;

4) Production Approval Holder�s PAH) documents or markings;

5) Direct ship authority. In order for manufactured parts with direct ship authority to

Last Updated 03/05/26 4 be recognized as being produced under a manufacturer�s FAA production approval, the manufacturer must specifically authorize the shipping supplier, in writing, and must establish procedures to ensure that the shipped parts conform to the approved design and are in condition for safe operation;

6) Maintenance release document;

7) Identification of critical components; and

8) Marking of life-limited parts.

The AC also states that aircraft part distributors and aircraft supply companies cannot provide a certificate of conformance for the parts they advertise and/or sell, unless they are a PAH. Therefore, it is the installer�s responsibility to ensure airworthiness and request documentation establishing traceability to a PAH.

Parts provided that do not meet the CFR and FAA requirements could compromise structural and system integrity of the aircraft, putting aircrew personnel and Government property at risk. The USCG neither compromises nor makes exceptions in matter of human safety and protection of Government property and does not accept standards in these manners.

Use of OEM parts will ensure the parts are manufactured IAW OEM specifications and standards, conform to original form, fit, and function, and are compatible and interchangeable with existing components.

AHI is the only known vendor that can provide the traceability to the OEM as required by the CFR and FAA.

(a) The use of 10 U.S.C. 3205 implemented by the RFO 12.102(b), and RFO 6.103 entitled �Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.� is necessary because AHI is the only OEM authorized distributor in North America.

(b) In an attempt to promote competition, extensive market research was conducted.

However, because of the OEM having only one (1) authorized distributor, the probability of any distributors obtaining prices for the cage code(s) and part numbers in the requirement are unlikely.

(c) Alternate sources could not be considered due to there are no known approved FAA PMA for the part in the solicitation that meets or exceeds OEM specifications and subsequently, passes the USCG form, fit, and function requirements. In addition, there is only one (1) North American OEM authorized distributor.

(d) In order to maintain structural integrity of the aircraft and ensure complete compatibility of replacement parts, the parts listed in this requirement must be obtained from the OEM or an OEM approved source. Parts produced by another manufacturer will compromise structural and system integrity of the aircraft, putting aircrew personnel and Government property at a safety of flight risk. The USCG neither compromises nor makes exceptions in matter of human safety and protection of Government property and does not accept lower standards in these matters. Therefore, the mission will be impacted as a result of this J&A not being

Last Updated 03/05/26 5 approved as stated above and not having these parts will negatively impact flight operations of the SRR aircraft and progress of Programmed Depot Maintenance. In a fiscal and stockage environment requiring minimal investment in inventory, it is critically important to secure a reliable supplier that can satisfy the contract requirements needed to react to every-changing mission requirements.

(e) This J&A requirement does not include the exceptions at FAR 25.103(b)(2) for FAR 25.202(a)(2) for the Buy American Act.

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

Potential Sources as is Practicable.

(a) This procurement forecast was posted on the DHS-Acquisition Planning Forecast

System (APFS), APFS No. F2026073002 at http://apfs.dhs.gov, published March 05, 2026, and included in the DHS Forecast of Small Business Opportunities. There were no inquiries received in response to the published APFS.

(b) The estimated date of publication is April 2026.

(c) The exceptions under RFO 5.302 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. IAW RFO Part 10, various methods of market research were launched for this requirement:

(a) Market research was conducted during January 2026. During this time extensive research was conducted through reviewing previous procurement history, internet searches, and discussions with the OEM. The USCG conducted a Program Management Review (PMR) with AHI where it was determined there are no authorized distributors of these parts. Based on extensive research in conjunction with the letter provided by the OEM, a Sources Sought Notice was not issued because the procurement situation would not change. The USCG will maintain open communications with the OEM and will continually conduct market surveys to identify possible additional sources that may eventually receive OEM authorization to sell Airbus Helicopter, France products to North American customers.

(b) This J&A requirement does not include the exceptions at RFO 25.103(b)(2) or RFO 25.202(a)(2) for the Buy American Act.

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

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

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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 proprietary rights, it will be difficult to take steps to foster competition.

(b) The parts in the schedule cannot be reverse, 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 parts listed in this requirement must be obtained from the OEM and their authorized distributors.

(c) This requirement is not a follow-on for the continued provision of highly specialized services pursuant to RFO 6.103-1(c)(2)(i).

(d) Not applicable to RFO 6.302-2(d) or HSAR 3006.302-270, this is not an unusual and compelling urgency.

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

Acquisition. No other sources have expressed interest in 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.

(a) 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 on this requirement. 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.

Aéroport International Marseille-Provence, 13725 Marignane Cedex, France www.airbushelicopters.com

Airbus Helicopters, société par actions simplifiée au capital de 586 212 416,10 Euros R.C.S. Aix-en-Provence 352 383 715

Aéroport International Marseille-Provence 13725 Marignane Cedex Commercial Operation Distribution & Services Network

Our Ref: EBONL 0032-2026

Subject: Airbus Helicopters Products for H-65 and Drawing Design Rights.

Airbus Helicopters has authorized our U.S. affiliate, Airbus Helicopters, Inc., in Grand Prairie, Texas, to be the only approved source of supply in North America for parts and products for the H-65 aircraft. AH and AHI, as the OEM of the H-65 aircraft, cannot be held liable, provide part certification or warranty protection on parts purchased from brokers, vendors, or any third parties.

AH and AHI will not release drawings or data rights to any outside third party for the purpose of reverse engineering or re-manufacturing under a different part number.

If you have any questions, please do not hesitate to contact us.

Thank you again for the opportunity to support the Coast Guard mission.

Sincerely yours, Valery DELISLE Airbus Helicopters Commercial Operations Partners Network Animation Head of North & South America, Africa & Middle East Mobile : 33 6 71 36 08 41 Email : valery.delisle@airbus.com

Marignane, January 15th 2026

Mr Kristen R. Copeland Supervisory Contracting Officer US Coast Guard Aviation Logistics Center Short-Range Recovery Division Elizabeth City, North Carolina 27909