Allied KBC JA 43125.0 Redacted.pdf

DEPARTMENT OF THE NAVY

NAVAL SEA SYSTEMS COMMAND

1333 ISAAC HULL AVENUE, S.E., M/S 2050

WASHINGTON NAVY YARD, DC 20376-2050

J&A Number:

Code: NAVSEA 0244

Notice ID: N0002426R4403

JUSTIFICATION AND APPROVAL

FOR USE OF OTHER THAN FULL AND OPEN COMPETITION

1. Contracting Activity

The Naval Sea Systems Command, Fleet Support Contracts Division, NAVSEA 024.

2. Description of the Action Being Approved

This Justification and Approval (J&A) supports the award of a series of a single award Indefinite Delivery Indefinite Quantity (IDIQ) contract on a Sole Source basis to Allied Systems Company, for repair, maintenance, and overhaul of Allied Knuckleboom Crane systems onboard LPD-17 class ships.

3. Description of Supplies/Services

This procurement includes Class A and Class B Knuckleboom crane overhauls; upgrade to MK II configuration; field services in support of both planned and unplanned maintenance; material required in support of field services; warehouse management associated with maintaining a rotable pool of inventory; and related testing and quality assurance necessary to ensure full working condition of Knuckleboom cranes without defect or delay.

The procurement will consist of a one-year base ordering period with up to four one-year option ordering periods.

The Government’s minimum needs have been verified by the certifying technical and requirements personnel.

The estimated value of this action is $21,791,712. The following table depicts the approximate total funding by fiscal year range and appropriation:

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Type of Funds FY26 – FY30

OMN $2,452,835

OPN $19,338,877

TOTAL $21,791,712

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 Statutory Authority

Allied Systems Company (Allied) is the Original Equipment Manufacturer (OEM) and sole proprietor of the detailed design, manufacturing drawings, and proprietary data package for the Allied Knuckleboom crane installed onboard all San Antonio-class (LPD 17) ships. The Navy does not possess, nor does it have licensed rights to the technical data required to enable competitive overhaul, upgrade, or repair. All design drawings, tolerances, assembly methods, specialized test equipment, and inspection procedures were developed by Allied at private expense and are proprietary.

The Knuckleboom cranes are mission essential equipment for launching and recovering small boats, making the crane critical to operational readiness. The cranes also support cargo handling, which is an important but secondary function that enhances mission flexibility. In the event the ships boat davit is not functional, the crane becomes an underway limiting system that must be fully functional to support Anti-Terrorism/Force Protection (AT/FP) operations and provide required ready-lifeboat capability. The cranes are mission essential equipment and thus could delay deployment schedules if the equipment is not maintained or if problems that arise are not found and repaired in a timely manner.

Between FY 2018 and FY 2023, multiple non-OEM repair attempts across LPD 17-class availabilities resulted in over 260 Days of Maintenance Delay (DoMD) and 59 percent average cost growth due to rework and failed testing. Representative examples include work items where non-OEM firms could not achieve system operational testing and required OEM intervention to complete critical repairs. This recurring pattern demonstrates that no

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Highlight other source can meet the Navy’s technical, schedule, and quality requirements without direct OEM involvement. By contrast, Allied has successfully executed all required services, leveraging its proprietary design data and specialized expertise to restore full system functionality and maintain fleet readiness.

Additionally, PMS 443 is implementing a System Sustainment Plan (SSP) for the Knuckleboom crane that includes a Class A and Class B overhaul cycle, as well as a MK II configuration upgrade under a Ship Change Document (SCD). These modernization efforts require non-recurring engineering (NRE) that can only be developed by the OEM, given the Navy’s lack of ownership of the underlying design documentation. As such, only Allied possesses the engineering data, tooling, and certified processes required to execute these changes safely and effectively.

Finally, the lack of formal Navy training programs and turnover in ship’s force personnel have degraded organic maintenance capability. OEM involvement is required to provide technical assistance, inspection, and training that restores safe and compliant operation across the fleet.

Awarding this requirement to any other source would introduce significant cost, schedule, and safety risks; jeopardize operational readiness; and potentially compromise compliance with critical load-certification and safety standards.

6. Description of Efforts Made to Solicit Offers from as Many Offerors as Practicable

The proposed contract action was synopsized on the website for federal contracting opportunities, SAM.gov, on 16 October 2025 in accordance with FAR 5.2 and FAR 6.305. The synopsis expressed the Government’s intent to contract on a sole source basis for the system engineering services, maintenance, material, and repair and rebuild of Allied Knuckleboom crane systems. The synopsis closed on 31 October 2025 and to date, no other interested parties have responded.

Market research conducted in accordance with FAR Part 10 confirms that Allied Systems Company is the only responsible source capable of meeting the Government’s requirements. The Sources Sought notice posted on 12 September 2025 resulted in interest from three companies: General Dynamics NASSCO, Propulsion Controls Engineering (PCE), and Allied Systems

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Company. While the non-OEM respondents asserted general ship repair capability, neither demonstrated access to the proprietary data or a record of successful independent overhaul performance. Both historically relied on subcontracted OEM support to complete work, resulting in repeated cost and schedule overruns

No additional market research was conducted because it is not practicable, for the reasons discussed in paragraph 5 above, for any company other than Allied Systems Company to provide the required supplies, services, and repairs.

7. Determination of Fair and Reasonable Costs

The Contracting Officer has determined the anticipated cost to the Government for the supplies/services covered by the J&A will be fair and reasonable.

8. Actions to Remove Barriers to Competition

For the reasons set forth in Paragraph 5, NAVSEA has no plans at this time to compete future contracts for the types of supplies/services covered by this document. If another potential source emerges, the Contracting Office will assess whether competition for future requirements is feasible.

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J&A Number: 0244/011

TECHNICAL/REQUIREMENTS CERTIFICATION (FAR 6.303-2(b))

I certify that the facts and representations under my cognizance, which are included in this justification and its supporting acquisition planning data, except as noted herein, are complete and accurate to the best of my knowledge and belief.

TECHNICAL COGNIZANCE:

Pernell A. Jordan, PMS 443 Deputy Program Manager Date

REQUIREMENTS COGNIZANCE:

Raymond. B. Crosby, CAPT, USN, PMS 443 Program Manager Date

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

I have determined this justification is legally sufficient.

Robert Orozco, NAVSEA 00L Date

CONTRACTING OFFICER CERTIFICATION (FAR 6.303-2(b)(12)):

I certify that this justification is accurate and complete to the best of my knowledge and belief.

Kathryn Corvello, Contracting Officer, NAVSEA 0244 Date

CORVELLO.KATHRYN.FLOWE

RS.1407429121

Digitally signed by

CORVELLO.KATHRYN.FLOWERS.1407429121

Date: 2025.11.06 11:59:33 -05'00'

J&A Number: 0244/011 APPROVAL BLOCK (FAR 6.304 and DFARS 206.304 for Approving Official)

Upon the basis of the above justification, I hereby approve, as Designee of the Head of the Contracting Activity, the solicitation of the proposed procurement using other than full and open competition, pursuant to the authority of 10 U.S.C.

3204(a)(1).

Cristina Covalt, Director, Fleet Support Contracts Division, Date

NAVSEA 024

11/7/2025