1

U.S. Coast Guard Naval Engineering

Logistics Modernization

15 November 2010

Capt John Bragaw

Surface Forces Logistics Center

Coast Guard Yard

Former MLC-Based Mission Support Model Decentralized Management of Naval Engineering Support

Asst. Comdt for

Intelligence &

Criminal

Investigations

(CG-2)

Asst. Comdt for

Human

Resources

(CG-1)

Asst. Comdt

for

Resources

(CG-8)

Asst. Comdt for

C4IT

(CG-6)

Asst. Comdt for

Engineering &

Logistics

(CG-4)

Asst. Comdt

for Acquisition

(CG-9)

Deputy Commandant

for

Operations

(CG-DCO)

Judge Advocate General &

Chief Counsel (CG-094)

Districts Maintenance &

Logistics Command

Mission Execution

Units

Mission Support

Units

Director of Governmental &

Public Affairs (CG-092)

Districts

Mission Execution

Units

Maintenance &

Logistics Command

Mission Support

Units

Pacific Area

Atlantic Area Vice Commandant

(CG-09)

Chief of Staff (CG-01)

Commandant (CG-00)

Asst. Comdt for

Marine Safety,

Security, and

Stewardship

(CG-5)

Asst. Comdt for

Capability

(CG-7)

No Direct Connection between Mission

Support Policy and Execution

2

Asst

Comdt for

Human

Resources

(CG-1)

Asst

Comdt for

Eng &

Log

(CG-4)

Asst

Comdt

for C4IT

(CG-6)

Asst.

Comdt

for

Acqu’sn

(CG-9)

Commandant

(CG-00)

Vice Commandant

(CG-09)*

Deputy Commandant

for Mission Support

(DCMS)

3

Dir of

Operational

Logistics

Centralized Management of Naval Engineering Support

ALC

CG-43

C4ITSC CG-41

CG-45

PSC

SILC

SFLC

Direct Connection

between Mission

Support Policy and

Execution

HSWL

Surface Forces Logistics Center

ISD FORT MACON

ISD SAULT ST. MARIE

ISD S. WEYMOUTH

ISD JACKSONVILLE ISD CAPE MAY

ISA SAN PEDRO

ISD CHARLESTON

ISA PORTSMOUTH

ISD ALAMEDA

IDS NEW HAVEN

ISA NEW ORLEANS

ISD MOBILE

ISD PORTLAND

ISD HONOLULU

ISA BOSTON

ISA DETROIT

ISA MIAMI

ISA ST LOUIS

Logistics Model Objectives: 4 Cornerstones

• Provide Field w Single-touch-point for Mission Support 24X7

• Centralize management of Maintenance Funds

• Drive toward developing Total Cost per Op Hour for assets

Product Line

Organization

Configuration Management

Total Asset Visibility

Bi-Level Maintenance

• Ensure Mission Requirements drive Configuration of assets

• Ensure Configuration drives Supply Chain & Maintenance systems

• Reap economies from standard configurations documented in database

• Visibility of Fleet Operational Availability

• Visibility of Inventory count, condition & supply chain

• Link Inventory to Configuration via logistics IT tools

• Maintenance responsibility @ 2 levels: Operational (O Level) & Depot (D Level)

• Perform 100% of Planned Maintenance

• Link Maintenance to Configuration via logistics IT tools

5

6

PL Organization: Single Touch-Point for Fleet

Personnel

Service

Center

(PSC)

Aviation

Logistics

Center

(ALC)

Surface

Forces

Logistics

Center

(SFLC)

Shore

Infrastructur

e Logistics

Center

(SILC)

C4IT Service

Center

(C4IT SC)

Logistics and Service

Centers:

•Provide 24/7 Product Line

Support

•Configuration and Life-

Cycle Management

• Centralized Funding

Oversight and Execution

Detachments:

•Local Delivery of

Depot Maintenance

Product Line Organization

Long Range

Surv (LRS)

Med Range

Recov (LRS)

Short Range

Recov (SRR)

Med Range

Surv (MRS)

WMEC

Patrol Boat

(PBPL)

Small Boat

(SBPL)

Long Range

Enforcer

Ice Breaker Buoy

& Constr. Tender

Detachment

NESU

MWA *

ISA

* MWA = Maintenance &

Weapons Activity (old

MATs + WATs)

7

Health,

Safety, and

Work Life

(HSWL)

Become Base Department

in DCMS v 2.0

Waterfront Delivery of Depot Maintenance

8

Product Line coordinates and

schedules all depot

maintenance

Product Line chooses IOD

to perform some depot

maintenance for cutter;

transfers $$$$ to IOD.

IOD directs NESU that has

available capability (ISA/

MWA) to execute depot

maintenance.

Depot

maintenance

completed –

central & local

records

Product Line

Control of Depot

Maintenance

IOD manages the

Cutter’s Depot

Maintenance for the

Product Line

Product Line has 100%

Oversight & Visibility of

Depot Maintenance to

capture Cost-per-Op-Hr

Product Line PDM

Branch incorporates

Availability Planning

and Port Engineer

Oversight

New Model: Product Line Control & Full Visibility of Depot Maintenance

Cutter submits request for

Industrial Services and pays

$$$ directly to ISC for

materials.

ISC directs local ISA/ISD to

perform D-Level work.

Cutter performs QA and

accepts work.

Depot

maintenance

completed – local

records onlyNESU performs D-Level

work using local MAT/WAT.

Cutter requests NESU

assistance to perform D-

Level Maintenance (Inport

Worklist); pays $$$ directly

to NESU for materials.

Cutter performs QA and

accepts work.

Balkanized Control

of Depot

Maintenance

Cutter provides parts to MAT/WAT directly.

MLC or Port

Engineer

Involvement?

Old Model: Decentralized Control & Limited Visibility of Depot Maintenance

O Funds D Funds

O Funds D Funds D Funds

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Surface Forces Top 5 Mission Degraders by Asset Class

Degraders Top 5 Mission Degraders - by Asset Class

MDE WAGB, 378, 270, 210, 110, 87, 225, 175, 140

SSDG WAGB, 378, 270, 210, 110, 87, 140

CPP / Z Drives WAGB, 378, 140 / 175

Steering Gear System 378, 140, 110

Main Gas Turbines WAGB, 378

OTH Boat /RHI 270, 210

Boat Davits 270, 210

Elec Systems & Equip 225, 175, 140

Cranes 225, 175

HVAC 87, 110

Gyro 87, 110

Thrusters 225, 175

13

Surface Forces Top 5 Cost Drivers by Asset Class

Cost Drivers Top 5 Cost Drivers - by Asset Class

MDE WAGB, 210, 110, 87, 225, 140

SSDG 270, 210, 110, 87, 140

CPP / Z-Drive / Shafts & Propulsion WAGB, 270, 210, 225 / 175 / 378

Hull Repairs 378, 270, 110, 87

Cranes WAGB

Flight Deck repairs 270, 210

Preservation 225, 175

Main Motor 140

HVAC 110, 175

Red Gear 87

Gyro 87, 140

Lead / Asbestos Abatement WAGB

Buoy Handling Systems 225, 175

Thrusters 225, 175

SFLC Supports

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Assets 2044 (244 cutters / 1800 boats)

34 Asset Classes (17 cutters / 17 boats)

Operating Hours 1.5M (461K cutters / 1.1M boats)

Depot

Maintenance

Availabilities

200/yr (125 cutters / 75 boats)

Supply Line

Items up to 250K to push parts on time

Maintenance

Procedure Cards >18K (200 to 900 per Class)

Questions??

FY-10 IDIQ Multi-Ship Contracts Summary

Product

Line/Organization

Supported

Number of

IDIQ/Requirements &

Multi-Ship Contracts

Requested

Number of

IDIQ/Requirements &

Multi-Ship Contract

Packages ready for

Solicitation / Solicited

Number of

IDIQ/Requirements &

Multi-Ship Contracts

Awarded

Number of

IDIQ/Requirements &

Multi-Ship Contracts

in danger of slipping to

FY11

Small Boat 47 2 22 19 Patrol Boat 23 1 12 10

Medium Endurance

Cutter 12 3 2 7

Long Range Enforcer 4 0 0 4

Ice Breaker &

Construction Tender 6 0 7 0

ALD/YARD Retail 16 9 3 11

ESD/BOD 9 3 4 2

TOTAL 115 21 49 52

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Opportunities

• Support from CG Senior leadership

• Shift away from tolerance for deferred

maintenance

• Centralized management

• Data driven decisions

• Most efficient use of limited resources

• Define cost of an asset’s operational hour

• Nationwide contract strategies

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Challenges

• Centralizing over 20 diverse

units

• Culture of deferred

maintenance & lack of

configuration discipline

• Geographic distribution

• No single IT system

• Personnel resources

significantly under capacity

to meet requirements of new

model 14

Lower Cost/Op Hour - 20% Reduction (41’ UTB, 47’ MLB, 25’ RB-S, 26’ TANB)

Increased Ops Availability - Tier 1 Boat Not Mission Capable due to Supply

(NMCS) Cut-in-Half in past 12 months

Shorter Procurement Action Lead Time (PALT) - Standard Emergency Dry Dock = 8 DAYS

- Delivery Order for CYPRESS = 2 DAYS

Increased Flexibility of Emergency DryDocks

- no longer limited to Emergent Items

5.1%

7.4%

7.9%

6.7%

6.1%

4.9%

4.5%

4.8%

4.3%

4.6%

3.9%4.1%

3.4% 3.4%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2009/Jul 2009/Aug 2009/Sep 2009/Oct 2009/Nov 2009/Dec 2010/Jan 2010/Feb 2010/Mar 2010/Apr 2010/May 2010/Jun 2010/Jul 2010/Aug

NMCS Rates - Tier 1 & 2A Modernized Boats

Normalized Avg NMCS: Target<5%

Target < 5%

Benefits of IDIQ / Multi-Ship Contracts

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16

NMCS Rates - Tier 1 & 2A Modernized Boats

5.1%

7.4%

7.9%

6.7%

6.1%

4.9%

4.5%

4.8%

4.3%

4.6%

3.9% 4.1%

3.4% 3.4%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

2009/Jul 2009/Aug 2009/Sep 2009/Oct 2009/Nov 2009/Dec 2010/Jan 2010/Feb 2010/Mar 2010/Apr 2010/May 2010/Jun 2010/Jul 2010/Aug

NMCS Rates - Tier 1 & 2A Modernized Boats

Normalized Avg NMCS: Target<5%

Target < 5%

San Juan, PR

St Petersburg, FL

Key West, FL

MIAMI, FL

PORTSMOUTH, VA

BOSTON, MA

Boston, MA

Boston, MA

Boston, MA

Kittery, ME

Newport, RI

NEW ORLEANS, LA

Pascagoula, MS

CLEVELAND, OH

Sault Ste. Marie, MI

SEATTLE, WA

ALAMEDA, CA

Alameda, CA

Alameda, CA

HONOLULU, HI

Bangor, WA

Kodiak, AK

San Diego, CA

San Pedro, CA New Haven, CT

S. Portland, ME

S. Weymouth, MA

Kings Bay, GA

Detroit, MI

Sault Ste. Marie, MI

Honolulu, HI

Honolulu, HI

Miami, FL

New Orleans, LA

St. Louis, MO

Portsmouth, VA Portsmouth, VA

St. Louis, MO

Seattle, WA

Atlantic Beach, NC

Atlantic Beach, NC

Cape May, NJ

Jacksonville, FL Mobile, AL

Ketchikan, AK (SILC)

Portsmouth, VA

MAT

NESU

ISA

ISD

WAT

Key West, FL

Miami, FL

CHARLESTON, SC

Charleston, SC

Charleston, SC

17

SFLC Spans the U.S.

17

Staffing ~ 2750 •Military: 1100

– 300 Officers

– 800 Enlisted

• Contractors: 300

• Civilian: 1350 – 1100 Bargaining Unit

– 550 GS

– 800 Wage Grade

(38 Reservists)