Allied Crane JA_Redacted.pdf

J&A No. N10424Q0116

JUSTIFICATION AND APPROVAL (J&A)

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity: Department of the Navy, Military Sealift Command (MSC) Norfolk

2. Description of the Action Being Approved: Award of a purchase order on a sole source basis to the sole provider, Allied Systems Company, of the ALLIED CRANES Model Nr. TB35- 40/TB30-35 installed on the T-AH Class Ships. Allied Systems Company is the Original Equipment Manufacturer (OEM) and sole provider of the required repair parts for the upcoming availabilities for the USNS MERCY (T-AH 19) and the USNS COMFORT (T-AH 20), using other than full and open competition.

3. Description of Supply Services: Provide the material to overhaul the Allied Cranes for the T-AH

Class to ensure the items are available for upcoming availabilities. The estimated combined dollar value is which will be funded utilizing fiscal year 2024 Navy working capital funds.

4. Statutory Authority Permitting Other Than Full and Open Competition: 10 U.S.C. 3204(a)(1)

Only one responsible source and no other supplies or services will satisfy agency requirements.

5. Rationale Justifying Use of Cited Authority: The T-AH Class Allied Cranes are nearing end of service life for the lift and luffing cylinders and have had repeated crane failures attributed to worn cylinders, worn cylinder seals, and boom extend and retract slides and pucks. The Allied Cranes are critical equipment that is used to load and off load ships stores, ships equipment, MTF Stores, and MTF Equipment on USNS MERCY and USNS COMFORT. Allied Systems Company owns the proprietary drawings and manufacturing processes for the installed equipment and all repair parts. Allied Systems Company sells direct to the Government, there are no authorized distributors.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable: No sources sought was posted for this requirement as there is sufficient historical data showing that there are no other capable vendors of providing Allied Systems Company OEM material. MSC contracts N3220524P0072, N3220522P0044, N3220522P0137, and N3220522P2064 can be referenced as evidence of this data. MSC perpetually seeks submissions from non-OEM contractors for consideration of qualification of their parts and/or services as an acceptable alternative to the OEM at https://www.msc.usff.navy.mil/Business- Opportunities/Contracts/Qualification-for-Items-Critical-to-Shipboard-Safety-on-MSC-Vessels/. The Government intends to post a sole source combined synopsis and solicitation notice along with this justification at the Government Point of Entry to award a firm-fixed-price purchase order.

7. Determination of Fair and Reasonable Cost: The Contracting Officer has determined the anticipated cost to the Government of the supplies covered by this J&A will be fair and reasonable.

8. Actions to Removed Barriers to Future Competition: For reasons set forth in paragraph 5, MSC has no plans at this time to allow for non-OEM suppliers in future contracts or purchase orders for the types of supplies covered by this document. If another potential source emerges, MSC will assess whether competition for future requirements is feasible.

J&A No. N10424Q0116

CERTIFICATION AND APPROVALS