J&A No. N00167-26-RFPREQ-CD-102-0087.02

5. Rationale Justifying Use of Cited Statutory Authority.

Craneworks Inc. is uniquely qualified to provide these services for the following reasons:

Mandatory NAVFAC P-307 Compliance: NAVFAC P-307 (Management of Weight Handling Equipment (WHE)) is not a best-practice guideline; it is a strict, mandatory regulatory requirement for all Navy weight handling operations to prevent catastrophic failure, property damage, and loss of life. Craneworks Inc is currently the only known vendor possessing the full suite of mandatory NAVFAC P-307 certifications required to operate, inspect, and certify Navy cranes within a two-hour radius of NSWCCD. It is imperative that the company be within a two hour call out radius in the event that a crane requires urgent repairs in the middle of a WHE operation.

Specialized P-307 Qualifications: Work on Navy WHE requires personnel specifically certified under P-307 protocols, including Navy-certified Crane Inspectors, Maintenance Mechanics, and Load Test Directors. Craneworks Inc. technicians hold current, active certifications through the Navy's stringent programs. Utilizing a contractor without these active, specialized certifications is a direct violation of Navy safety protocols.

Avoidance of Unacceptable Delays and Substantial Duplication of Cost: To utilize another commercial crane service provider, that vendor would need to send its entire proposed staff through specialized P-307 training, and acquire necessary clearances to achieve certification. The Government estimates this would result in an unacceptable delay of 12-18 months. During this period, NSWCCD cranes would fall out of certification, severely degrading mission readiness and halting critical waterfront and testing operations. Furthermore, the cost of certifying a new vendor and the resulting operational downtime represents a substantial duplication of cost to the Government that is not expected to be recovered through competition.

Proprietary Knowledge and Audit Readiness: Craneworks Inc. in-house engineers have a combined 50 years of experience with Navy programs, including direct engineering and audit experience with the Navy Crane Center. They provide a comprehensive service offering (inspections, preventive maintenance, custom lifting fixture design, and crane alteration request preparation) that guarantees equipment is 100% compliant with P-307 standards from the outset, significantly reducing the risk of NCC audit failures.

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

A review of the market was conducted, including a review of commercial crane service providers. The market indicates that while other local companies may provide general crane services, none of the local companies have the NAVFAC P-307 requirement necessary to meet the needs of the requirements holders. Other NAVFAC P-307 compliant providers were identified but none of these alternative providers are local and they are therefore unable to meet our mandatory emergency response time requirements. Commercial maintenance standards (such as basic OSHA or ASME) are technically insufficient to meet the rigorous, highly specialized statutory requirements of NAVFAC P-307 required to perform work on Navy cranes.

A combined synopsis/solicitation was issued on SAM.gov. No challenges to the sole source were received by the closing date of 24 July 2026.

J&A No. N00167-26-RFPREQ-CD-102-0087.02

7. Determination of Fair and Reasonable Cost.

The Contracting Officer has determined that the anticipated cost to the Government for the supplies/services will be fair and reasonable. In accordance with FAR 13.106-3(a), the Government will require the contractor to submit a formal price proposal with sufficient data to support the accuracy and reliability of the estimate. The Contracting Officer will analyze this information, along with historical pricing data from the incumbent contract, to ensure the final price is fair and reasonable.

8. Actions to Remove Barriers to Future Competition.

For the reasons set forth in Paragraph 5, the Government has no plans at this time to compete future contracts for these specific services. The government will continue to monitor the marketplace for any new vendors that may offer the required services in the future.