Attachment D - Redacted Justification for Other Than Full and Open Competition.pdf

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JUSTIFICATION AND APPROVAL FOR

OTHER THAN FULL AND OPEN COMPETITION

10 U.S.C. § 3204(a)(1) Solicitation Number 70Z03826RL0000005 (Repair of APS-143C(V)3 Radar System)

Pursuant to the requirements of the Competition in Contracting Act (CICA) as implemented by the Federal Acquisition Regulation (FAR) 6.103 (FAR Class Deviation 25-11) 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:

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, North Carolina, proposes to enter into a contract on a basis other than full and open competition.

Nature and/or Description of the Action being Approved. Address the following:

Nature of the action: USCG intends to procure on a sole source basis the repair services for APS-143C(V)3 radar system.

Name and address of the contractor:

Telephonics Corporation 815 Broad Hollow Road, Farmingdale, NY 11735

Contract Type: Fixed Price Requirements Contract

Estimated total value (including options):

(e) Type of funding: Operations and Support funds

(f) Year of funding: Fiscal Year 2026

(g) Solicitation number: 70Z03826RL0000005

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(h) Background information about the requirement: The Original Equipment Manufacturer (OEM) for the APS-143C(V)3 radar system is Telephonics Corporation and they hold the technical data required for the repair of these assets.

Description of Supplies/Services.

This requirement is primarily for the acquisition of services to repair components of the APS-143C(V)3 radar needed to support the HC-144 Maritime Patrol Aircraft (MPA). It is an airborne pulse compression surveillance and imaging radar. It provides the airborne platform with the means to search for and detect surface targets while performing overwater surveillance.

The USCG APS-143C(V)3 radar system consists of three major components: the Receiver/ Transmitter (R/T), the Signal Data Processor (S/P), and the Antenna Pedestal (A/P). As the OEM of these components, Telephonics Corporation, specifically stated to the government that their data is proprietary and would not be released to any company. This is typical of firms within the aircraft electronics field who are dependent on tightly holding their data rights in order to recoup their significant investments in research and development of technology like the APS-143 radar. In such an environment, there is no expectation that any source, other than the OEM, will compete for this business. The OEM tightly holds the exclusive proprietary technology. Telephonics Corporation is the only company that can provide the services required for repair of the APS-143C(V)3 radar system.

Identification of Statutory Authority Permitting Other Than Full and Open Competition. 10 U.S.C. § 3204(a)(1) implemented by the RFO Subpart 6.103-1 entitled “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.”

Identification of Exception to the Buy American Statute. Not Applicable.

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

Rationale for using the authority cited in section 4 of the J&A. The Coast Guard did not purchase the data as part of the initial system acquisition for the HC-144A aircraft and as a result, it would be difficult to foster a competitive procurement effort.

Details covering what events lead to the situation requiring use of other than full

Last Updated 05/04/26 3 and open competition procedures including whether any portion of the work can be segregated to allow for competition; The data, including complete specifications and drawings, required to support repair of these components is proprietary to Telephonics Corporation, the OEM. At this time, there are no other known sources for repair. The OEM is the only known source able to provide the required services as only this firm possesses the proprietary data which includes the necessary tooling, design information, service bulletins, drawings, specifications, manuals, and parts.

Summarize alternatives considered and why they will not work; A Sources Sought Notice (70Z03826IL0000001) was posted to SAM.gov on December 3, 2025, with a closing date of December 16, 2025. No responses were received.

Impact to the mission that would result if the J&A is not approved and, consequently, the product or service not provided. Repairs performed using data developed by sources (only the OEM data is known to exist) other than the OEM would compromise the integrity of the aircraft, including the aircraft’s sensors, integrated output with other aircraft data, and data to shore transmissions.

(Section is required to be completed when the J&A includes the exception listed under RFO 25.103(b)(2) or RFO 25.202(a)(2)). Not Applicable.

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

If an entry was made in APFS, provide the publication date. APFS Record F2026072732 was published on February 4, 2026.

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

The repair of the APS-143C(V)3 radar components was advertised in SAM.gov under ources ought otice 70Z03826IL0000001. The notice was published on December 3, 2025, and closed on December 16, 2025. No responses were received.

If an announcement is being planned for posting in SAM.gov, provide the estimated publication date. Sources Sought Notice 70Z03826IL0000001 was published on December 3, 2025, and closed on December 16, 2025. No responses received.

If an announcement will not be published, identify the applicable exception under RFO Part 5. Not Applicable.

Determination by the Contracting Officer that the Anticipated Cost to the Government will be Fair and Reasonable. The Contracting Officer determines that the anticipated prices will be fair and reasonable based on historical pricing from previous purchase orders .

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9. Description of Market Research.

(a) The market research reveals that the components of the APS-143C(V)3 radar system are commercial in nature, and that the repair services for these components are currently being offered for a variety of aircraft, both military and commercial. Telephonics, the OEM of these components, provides these services contemporaneously to the public and federal government. Telephonics has advised that the APS-143C(V)3 radar is a commercial item previously developed with the firm’s R&D funds and under commercial programs. The OEM has stated that their data (including drawings, computer software, etc.) is proprietary and would not be furnished to any other firm. Provided as documentation with this sole source justification is the market research report and associated attachments that explain in detail the analysis and research conducted. The report provides information on the timeframe, the participants, the market research techniques and sources utilized, and other topics. The market research revealed no other source for repair of these radar components other than Telephonics Corporation.

(b) (Section is required to be completed when the J&A includes the exception listed under RFO 25.103(b)(2) or RFO 25.202(a)(2)). Not Applicable.

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

(d) Telephonics has advised that the APS-143C(V)3 radar is a commercial item previously developed under commercial programs. The OEM has stated that their data (including drawings, computer software, etc.) is proprietary and would not be furnished to any other firm.

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. Technical data packages including drawings, specifications, manuals, and publications required to develop additional sources for manufacture of these parts were not procured by the government. These are proprietary to Telephonics, the OEM.

(b) Discuss why your requirement cannot be modified to enhance competition. The services to be procured are complex and must meet critical operational and reliability requirements. The achievement of which requires unique production techniques and extensive and/or sophisticated testing, and the Government has not yet acquired or developed the technical data. 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 future USCG requirements. In an effort to increase competition, HC-144 program members intend to conduct internet database research and ensure procurements are advertised in SAM.gov. In addition, the USCG will investigate the feasibility of purchasing technical data from the OEM. If another potential source emerges, and the USCG is able to obtain the required technical data, the USCG will

Last Updated 05/04/26 5 assess whether competition for any future requirements 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), you must provide an estimate of the cost to the Government that would be duplicated and detailed information on how the estimate was derived. There would be a substantial cost to the USCG that is not expected to be recovered through competition. The USCG did not procure the engineering or data rights from the OEM to solicit competition.

(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. Not Applicable.

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

To date, no responses have been received by the Contracting Officer. Any responses received prior to the award of the procurement will be evaluated by the Contracting Officer.

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 HC-144 are not available to the USCG.

The USCG does not possess technical expertise, nor the data rights to drawings, specifications, and manuals purchased as part of the initial system acquisition for the HC-144 aircraft. As the Aircraft Inventory Control Point (AICP), ALC is tasked with supporting systems that have been deployed for use in the aviation community.

Complete specifications and drawings are not available and the cost to procure them is not easily quantifiable. The data for manufacturing/repair of these parts is proprietary to the OEM and therefore future competition for this effort is not known. Our budget does not include funding to procure data for these systems. As a result of the above, it would be difficult to foster a competitive procurement effort. However, in an effort to increase competition MRS Engineering, Item Managers and Contracting continuously conduct market research to ensure that companies interested in doing business with the USCG are given every opportunity to compete for our requirements. The USCG will check annually with Telephonics on the availability of technical data released in order to promote competition. If any additional viable sources are identified through response to the solicitation, ALC will make a determination to compete the services based on limited competition.

(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

Last Updated 05/04/26 6 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.