Allied KBC JA 43125.1 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: 43,125.1 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) is an update to 43,125.0 in order to increase the estimated value of the requirement due to the inclusion of a test stand, an additional overhaul kit, growth reservation work related to 72 month overhauls, travel related to upkeep events, and an increase in the estimated number of hours for Original Equipment Manufacturer (OEM) engineering and logistical support.

3. Description of Supplies/Services

The procurement is for the repair, maintenance, and overhaul of the Allied Systems Company Knuckleboom crane. This J&A update increases the contract’s estimated value by incorporating several critical, logical extensions of the original requirement. Specifically, this revision adds: the procurement of a factory test stand capability to support required quality assurance testing prior to Government acceptance; the procurement of an additional overhaul kit to support the initial startup of the rotable pool; growth work reservation value to support emergent, unplanned repairs identified during the crane rebuild process; travel reservation value to facilitate contractor travel for up to two upkeep events per ship per year;

and an increase in the estimated OEM engineering, technical, and logistical support from 500 hours to 1,000 hours annually, as finalized by the Program Office’s Core System Sustainment Investment Model (CSSIM).

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 $12,500,812. The following table depicts the approximate total funding by fiscal year range and appropriation:

Type of Funds

FY26 – FY30

OMN $10,564,356

OPN $1,936,456

TOTAL $12,500,812

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 additional requirements driving this J&A revision are necessary, logical extensions of the original sole source overhaul efforts and can only be executed by Allied Systems Company for the following reasons:

a. Factory Test Stand: Proper testing of overhauled cranes requires a test stand calibrated to Allied's proprietary specifications. Only Allied possesses the proprietary design data and tolerances necessary to integrate the crane

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight with the test stand, safely execute testing in a controlled environment, and validate its operational readiness before returning it to the Fleet.

b. Additional Overhaul Kit: The overhaul kit relies exclusively on OEM parts and material required to start the rotable pool. Utilizing non-OEM parts risks equipment incompatibility, voids safety warranties, and poses operational hazards, dictating that only Allied can supply these components.

c. Growth Work Reservation: The growth work encompasses emergent, in-scope repairs discovered during Allied's proprietary teardown of the crane. Transitioning this emergent work to a third-party contractor mid-overhaul is technically unfeasible, would duplicate costs, and would result in unacceptable delays to ship deployment schedules.

d. Upkeep Travel and Increased OEM Support: Only Allied technicians possess the certified expertise to travel and conduct specialized pre-planned upkeep maintenance.

Furthermore, the increase from 500 to 1,000 hours for OEM support is required to facilitate non-recurring engineering (NRE) for modernization efforts (such as the MK II configuration upgrade) and provide the technical assistance needed to overcome degraded organic maintenance capabilities.

Awarding these requirements 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, to include related testing and quality assurance necessary to ensure full working condition of the Allied Knuckleboom crane without defect or delay. The synopsis closed on 31 October 2025 and to date, no other interested parties have responded.

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

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 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.

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.

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

1639302497.CIV

Highlight

J&A Number: 43,125.1

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:

Date

Mayankkumar Dixit, 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.

CDR Greg Sceviour, Contracting Officer, NAVSEA 0244 Date

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

LEGAL SUFFICIENCY REVIEW (NMCARS 5206.303-90)

I have determined this justification is legally sufficient.

Pernell A. Jordan, PMS 443, Deputy Program Manager

REQUIREMENTS COGNIZANCE:

J&A Number: 43,125.1 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

6/26/2026