Attachment 3 Redacted Justification for Other Than Full and Open Competition 70Z03826QH0000040_Redacted.pdf

JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3205

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 Pa1i 12, FAR 6.103, FAR Class Deviation 25-11 for FAR Paii 6 and in accordance with the requirements of RFO 6.104, the justification for the use of the statuto1y 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 Logistic Center (ALC), Long Range Smveillance (LRS) Product Line (PL), 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, LRS PL intends to procure, on a sole source basis, a Fiim-Fixed Price contract for the procurement of actuator, oil coolers for invento1y control point (ICP) to be used on the HC- 130J afrcraft.

(a) Name and address of the contractor:

CEF Industries, Inc.

320 Church Street Addison, IL 60101 Cage Code: 00268

(b) Contract Type: The USCG intends to awai·d a Fiim-Fixed Price (FFP) purchase order for this requirement.

(c) Estiinated total value (including options):

( e) Type of funding: Operation & Suppo1i Funding (O&S), Reconciliation Funding

(f) Yeai· of funding: Fiscal Year 2026

(g) Solicitation number: 70Z03826QH0000040

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(h) Background information about the requirement: LRS PL has a requirement for the purchase of actuator, oil coolers for inventory control point spares. This procurement was previously satisfied through the firm-fixed-price purchase order 70Z03826PC0000013, awarded to Dyess Aviation, Inc. (DA) on 11/21/2025.

3. Description of Supplies/Services.

The USCG, ALC, LRS PL supports the HC-130J aircraft by providing logistics, inventory management and sustainment support for USCG aviation assets utilized by Air Stations geographically located in and outside the Continental United States. As a part of this responsibility, LRS PL has a requirement for the purchase of actuator, oil coolers for inventory control point spares. To maintain integrity of the system, ensure compatibility of the replacement components and safe operation of the aircraft, these components must come from the OEM, or an OEM’s authorized distributor.

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 as implemented in FAR 12.102 (FAR Class Deviation 25-21), “Restricting Competition”.

5. Identification of Exception to the Buy American Statute.

This requirement for the purchase of actuator, oil coolers for inventory control point spares does not take exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2). Therefore, the Buy American Act will be included in the terms and conditions of this contract.

6. Demonstration that the proposed contractor’s unique qualifications or the nature of the acquisition requires use of the authority cited.

(a) Rationale for using the authority cited in section 4 of the J&A:

CEF is the Original Equipment Manufacturer (OEM) for the actuator, oil cooler on the HC-130J aircraft. All specifications, manufacturing drawings, test equipment, and tooling required to manufacture the components and are proprietary to CEF. The USCG did not purchase the rights to the proprietary data required to foster a competitive environment as part of any original provisioning for use on the HC-130J aircraft. To maintain integrity of the system, ensure compatibility of the replacement components and safe operation of the aircraft, these components must come from the OEM, or an OEM’s authorized distributor.

(b) Details covering what events led 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:

LRS Engineering Officers have determined that interested parties must be the OEM or an OEM’s authorized distributor capable of providing new manufactured

Last Updated 03/05/26 3 commercials components traceable to OEM. The USCG is prohibited from disclosing any technical documents in their possession as these were developed at private expense by CEF and are proprietary. For these reasons, other than full and open competition procedures are necessary for the requirement, and no portion of the services can be segregated to allow for competition.

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

Alternative procurement sources, such as unauthorized third-party manufacturers or reverse-engineered components, are unauthorized by engineering and the subject matter experts for the actuator oil cooler. These sources lack access to the OEM’s (CEF) proprietary technical data, manufacturing drawings, and specialized test equipment. Consequently, non-OEM sources cannot guarantee the quality, system compatibility, or safety standards required for mission readiness. Furthermore, unauthorized alternatives lack necessary OEM traceability, introducing unacceptable risks to safe aircraft operation.

(d) Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided:

Failure to approve this J&A would result in a critical shortage of actuator, oil coolers for the HC-130J fleet. The shortage would cause a severe degradation in the USCG's ability to conduct search and rescue, law enforcement, international ice patrol, marine environmental protection, and marine resources conservation, and various other missions.

(e) Rationale for use of the nonavailability exception to the Buy American statute, including detailed information explaining why the particular articles, materials, or supplies of the class or kind to be acquired, either as end items or components, are not mined, produced, or manufactured in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality:

This requirement for the purchase of actuator, oil coolers for inventory control point spares does not take exception listed under FAR 25.103(b)(2) or FAR 25.202(a)(2). Therefore, the Buy American Act will be included in the terms and conditions of this contract.

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

Potential Sources as is Practicable.

(a) If an entry was made in APFS, provide the publication date:

Forecast Record F2026072937 published on 2/10/2026.

(b) If an announcement has already been made in SAM.gov, provide the publication date:

Sources Sought Notice 70Z03826IH0000015 was posted to SAM.gov on 2/10/2026 and closed on 02/24/2026.

(c) If an announcement is being planned for posting in SAM.gov, provide the estimated publication date:

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It is anticipated that a solicaiton will posted 04/22/2026. Any capability statement or quote received in response to the combined synopsis/solicitation will be considered prior to award.

(d) If an announcement will not be published, identify the applicable exception under RFO Part 5:

The exception 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 the prices for this procurement will be fair and reasonable IAW FAR 12.204(a) (FAR Class Deviation 25-21). This will be based on comparison with similar items in a related industry and comparison to the IGCE.

9. Description of Market Research.

(a) Describe the market research techniques used, results, date(s) when the market research was conducted, and how the contracting officer used the market research to determine price reasonableness:

Market research was conducted IAW FAR Part 10 (FAR Class Deviation 25-06) from October 2025 through April 2026. Market research indicates that the procurement of the components identified in this requirement 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), DHS-Wide and Multi-Component Contract Vehicles, Excess for Other Agencies, AbilityOne, and Contracting Opportunities. These searches revealed no alternate supply sources. The OEM and the two (2) authorized distributors are the only known approved source to provide the required component. The procurement of the actuator, oil cooler for the HC-130J is 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.

Sources sought notice 70Z03826IH0000015 was posted to SAM.gov on 02/10/2026 and closed on 02/24/2026. No responses were received.

(b) Describe the market research results that support the determination that the items are nonavailable:

The exceptions under FAR 25.103(b)(2) or FAR 25.202(a)(2) do not apply to this requirement.

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:

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The procurement under this acquisition is highly specialized in nature and developed by a non-Government activity. The technical data required to manufacture the component from other sources other than the OEM, and OEM’s authorized distributors are not available.

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

The Government has not yet acquired or developed the technical data. If another potential source emerges, and the USCG is able to obtain the required technical date, the USCG will assess whether competition for any future requirement is feasible.

(c) For a proposed contract subject to the restrictions of RFO 6.103-for follow-on acquisitions as described in 6.103-1(c)(2)(i), all components must 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 subject to the restrictions of FAR 6.103-1 as described in FAR 6.103-1(c)(2)(i).

(d) For a proposed contract subject to the restrictions of RFO 6.103-2(c) or HSAR 3006.103-

2(c)(70), HSAR Class Deviation 25-01 and where RFO 6.103-2 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.

This requirement is not subject to the restrictions of FAR 6.103-2(c) or Homeland Security Acquisition Regulation (HSAR) 3006.103-2(c)(70).

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

A Sources Sought Notice was issued in SAM.gov on 02/10/2026 and closed on 02/24/2026 requesting that parties express their interest in writing to the contracting officer. Zero (0) responses were received.

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 USCG does not possess the technical data required to foster full and open competition for the procurement of actuator, oil cooler covered under this justification and approval. The USCG will continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for the future USCG requirements.

(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

Last Updated 03/05/26 6 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 to this requirement.

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