Attachment 3 - Redacted J and A - 70Z03826RB0000001.pdf

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JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3204(a)(1)

SOLICITATION NO. 70Z03826RB0000001

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) 6.103 (FAR Class Deviation 25-111) 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 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: 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. 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. 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 Forum Drive Grand Prairie, TX 75052 Cage Code: 3GSZ1

(c) Contract Type: Firm-Fixed Price Indefinite Delivery Requirements Type

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1 In this document, citations to RFO Parts 6, 10, 15, 25 are citations specifically to 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 25-09 Rev.1 for FAR Part 25, which were issued as part of the Revolutionary FAR Overhaul (RFO), implemented in response to Executive Order 14275, Restoring Common Sense to Federal Procurement, signed April 15, 2025.

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(d) Estimated total value (including options): $35,686,604, broken down as follows:

Period Length of Period Total

Base Year

12 mo.

$6,083,012

Option Year 1 12 mo. $6,569,653 Option Year 2 12 mo. $7,095,225 Option Year 3 12 mo. $7,662,843 Option Year 4 12 mo. $8,275,870 Total $35,686,603

Note: This is a follow-on contract from current contract 70Z03822DB2000014, Period of Performance 01/01/2022 – 12/31/2026.

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year Fiscal Year Operation and Support Funds will be provided annually for Fiscal Years 2027 through 2031.

(g) Solicitation number: 70Z03826RB0000001

(h) Background information about the requirement: The USCG currently operates a fleet of MH-65E aircraft. These specialized aircraft play a crucial role in supporting key missions, including search and rescue, law enforcement, and homeland security. Due to their high demand and unique capabilities, it is essential to ensure that all MH-65E aircraft remain fully operational and continue to meet the USCG's mission requirements. The parts under this justification were previously procured under a Requirement type contract 70Z03822DB2000014 that expires on December 31, 2026.

3. Description of Supplies/Services. As the Aviation Inventory Control Point (AICP), ALC must provide effective supply support for all USCG aviation units and for the Programmed Depot Maintenance (PDM) Program. This requirement is to be awarded to AHI, the OEM only authorized distributor, that has access to the original OEM parts and can provide traceability. These parts are crucial to meet the USCG’s many missions.

The material and estimated quantities to be procured are based on current and past usage data. Projected stocking levels are based on failure and corrosion trends; current upgrades and modifications in process; experience and project scrap rates; and procurement lead times. Stock level recommendations are also obtained from the USCG’s forecasting tool to help ensure we can support all our mission requirements. The part numbers for this requirement are listed in Tab 3 of the contract file.

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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)(1) implemented by FAR Subpart 6.103 (FAR Class Deviation 25-11) entitled “Only one responsible source and no other supplies or services will satisfy agency requirements.” Responsible sources are limited to the OEM and their authorized distributors.

5. Identification of Exception to the Buy American Statute. 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, 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 source of supply for North American customers, their affiliates, AHI, located in Grand Prairie, TX (See Attachment 1).

The USCG self-certifies its’ aircraft in accordance with 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. In accordance with 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.

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 in accordance with OEM specifications and standards, conform to original form, fit, and function, and are compatible and interchangeable with existing components.

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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. 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.” is necessary because AHI is the only OEM authorized distributor in North America.

(b) In 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 the fact there are no known approved FAA PMA for the parts in the solicitation that meet or exceed OEM specifications and subsequently, pass 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 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) Number F2026072311 at http://apfs.dhs.gov, published February 6, 2026, and included in the DHS Forecast of Small Business Opportunities. There were no inquiries received in response to the published APFS.

(b) An announcement has not been made in SAM.gov.

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(c) The proposed contract action will be advertised on the Contract Opportunities website, www.SAM.Gov as a combined sole source synopsis/solicitation. IAW FAR 5.207(c)(16)(ii), the solicitation/synopsis will include a statement that all responsible sources may submit a proposal with a capability statement, which shall be considered by the agency. The estimated date of publication is July 1, 2026.

(d) The exceptions under FAR 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 anticipates that the prices for this procurement will be fair and reasonable. This will be based on comparison of proposed prices found fair and reasonable on previous purchases (FAR Part 15.404- 1(b)(2)(i)), comparison with similar item in a related industry) FAR Part 15.404- 1(b)(2)(ii)), comparison with competitive published price lists, FAR Part 15.404-1(b)(4), and comparison to the Independent Government Cost Estimate (IGCE) (FAR Part 15.404- 1(b)(5)).

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 January 2025 through April 2026, and it did not produce any other OEM authorized distributors that could provide the spare parts in this requirement. A Sources Sought Notice 70Z03826IB0000005 was posted on SAM.Gov from February 12, 2026, with a closing date of March 11, 2026. Two responses were received, one from the OEMs authorized distributor, Airbus Helicopters, Inc. (AHI), and another from Ineo Global. Ineo Global provided a list of the Contract Line Item Numbers (CLINs) they could provide from the requirements spreadsheet. However, due to the sole source nature of this requirement, any quote from any vendor other than the OEMs authorized distributor, AHI, will be found not technically acceptable.

(b) 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.

(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 parts. 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 parts, 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 services to RFO 6.103-1(c)(2)(i).

(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 other sources have expressed interest in this acquisition. The Contracting Officer will evaluate any inquiries or responses received prior to the award of contract. AHI is the only North American distributor authorized by the OEM to sell parts identified in this requirement. The proposed contract action will be advertised on the SAM.Gov website and will include a statement that all responsible sources may submit a proposal with a capability statement, which shall be considered by the agency.

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.

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(b) Extensive internet database research was conducted, and requirements were advertised on Contract Opportunities (SAM.Gov). In support of the Competition in Contracting Act, ALC established the New Product Development Branch (NPD), and a representative of the NPD Branch is assigned to the SRR Product Line. This representative has the responsibility to search for alternate sources of supply/services and alternate acceptable products. Engineering, Contracting, and NPD representatives continuously conduct market research to ensure that vendors interested in doing business with the USCG are given every opportunity to compete for requirements. NPD is exploring avenues of reverse engineering for some of the hard to find or expensive to repair items, which should further encourage competition, however, this process is lengthy, costly, and labor intensive.

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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.

Kristen R. Copeland Date Contracting Officer, USCG, ALC, SRR

14. Technical/Requirements Personnel Certification.

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

Dawn O’Connor Date Item Manager, USCG, ALC, SRR

RECOMMENDED FOR APPROVAL OR APPROVAL

Tabitha L. Callon Date Level Above Contracting Officer Deputy, Chief of The Contracting Office, USCG, ALC

David S. Burgess Date Chief of The Contracting Office, USCG, ALC

Shreena L. Morris Date Procuring Activity Advocate for Competition (PAAC)