United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 1
Surface Ship Maintenance ProgramSurface Ship Maintenance Programbrief for brief for
Virginia Ship Repair AssociationVirginia Ship Repair Association
CAPT Mike StantonCAPT Mike StantonUSFF N431USFF N43122 APR 2009
UNCLASS
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 2
OverviewOverview
• USFF Fleet Maintenance Directorate
• Program objectives:
– ‘Planned Service Life’ view of Maintenance
– Areas of responsibility
• Strategic Maintenance Process:
– Requirements & programming
– Maintenance execution planning
– Maintenance execution
Improve process stability; Reduce process variation
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 3
USFF N43 Maintenance DirectorateUSFF N43 Maintenance Directorate
N43 Fleet Maint Officer RADM(s) Joe Campbell
(prospective) FMO RADM(s) Clark Orzalli (May)
N43B Deputy FMO Mr. Bob Butler
N431 Surface Ship Maint Prog Mgr CAPT Mike Stanton
(prospective) CAPT Stephanie Douglas
N432 Submarine Maint Prog Mgr CDR Greg Burton
N433 Aviation Maint Prog Mgr CAPT Dave Seaton
N434 Technical & Process Prog Mgr Mr. Dale Hirschman
N435 Financial & Industrial Mgt Mr. Glenn Hottel
N436 C5I Branch Head CDR Drew Lambley (IA)
N437 Maint Information Sys Mgt Mrs. Maureen Ransom
N438 CVN Maint Prog Mgr CAPT Lloyd Jones
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 4
Surface Ship Maintenance Program: Surface Ship Maintenance Program: Focus on Achieving Service LifeFocus on Achieving Service Life
Requirement: ensure material condition of ships supports Ao, presence requirements & achieves planned service life.
– 157 Surface Ships, 11 classes
– 11 CSG, 10 ESG, various SNGs & surge reqts
• Support current and future readiness:
Ao,overall = Ao,FRP + Ao,Lifecycle
Priorities
1. 313 ship Navy: must achieve planned service life for ships in inventory
• 49% of surface force service life has been consumed
2. Stabilizing & refining maintenance requirements
3. Developing & deploying sound maintenance practices, processes & strategies
Significant Congressional interest in the readiness of the Surface Force
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 5
N431 Areas of ResponsibilityN431 Areas of Responsibility
Current Readiness
• Availability execution in support of FRP
• Ships with marginal material condition
• Hi-interest INSURVs
• New Construction readiness (LPD 17, LCS)
Future Readiness
• Breadth & technical rigor of lifecycle maint reqts
• Programming strategies and risk decisions
• Availability risk assessment and mitigation
• New Construction readiness
Maint Acquisition Mgt
• MSMO Program
– Acqn Strat IPT
– AFEBs
• Maint Contracting Strategies
• Maintenance execution strategies and policies
• Industry Relations
– JINII, VSRA, JASRA
FMBoD “locked-in” on Surface Ship Maintenance Program
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 6
Strategic Maintenance Process Strategic Maintenance Process
RequirementsDevelopment
(TYCOM, FFC)
Programming& Budgeting
(FFC, OPNAV)
Appropriation &Apportionment
(Congress, FMB)
Planning(RMC & MSMO)
Execution(RMC & MSMO)
Var
iati
on
Process stage
Savings Potential
- Risk decisionstoward “PSL+”- Industrial basepreservation
- MSMO Spiral 2 - SHIPMAIN- Assessments- Level-loading
Targeted strategies
-Reqts Realism: MRS- ICMP development
- MSMO stabilization - Contracts Governance- Depot work integration- RMC standardization
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 7
Strategic Maintenance Process Strategic Maintenance Process
RequirementsDevelopment
(TYCOM, FFC)
Programming& Budgeting
(FFC, OPNAV)
Appropriation &Apportionment
(Congress, FMB)
Planning(RMC & MSMO)
Execution(RMC & MSMO)
Var
iati
on
Process stage
Savings Potential
- Risk decisionstoward “PSL+”- Industrial basepreservation
- MSMO Spiral 2 - SHIPMAIN- Assessments- Level-loading
Targeted strategies
-Reqts Realism: MRS- ICMP development
- MSMO stabilization - Contracts Governance- Depot work integration- RMC standardization
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 8
Requirements ImprovementRequirements Improvement
• January 2009 Surface Ship Maint Strategic Offsite– Must strengthen requirements determination process for ships
– CLASSRON: focus on lifecycle maintenance to feed programming
Actions• Maintenance Requirements System (MRS) Alliance
– Availability notionals “tailoring” projects
– Modified docking cycles
– “Aged” notionals
– Parametric analysis
• Surface Ship Life Cycle Management Activity (SSLCM)
– ICMP improvement
– Standardized availability work packages
• ABS Hull-life Surveys (NAVSEA 05)
under review
“technical rigor”
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 9
Maint Requirements AdjustmentsMaint Requirements Adjustments
“Aged” Notionals
• Automobile maint concept – older assets require increasing maint
– Gradually increase the notionals as the vessel consumes service life
– Basis for CVN Maint Op-cycle Mgt & availability resourcing levels
– Easily understood by Pentagon programmers
DSRA-1
EDSRA-2
DSRA-3
Mdays/avail
PSA SRA-1 SRA-1 SRA-2 SRA-2 SRA-3 SRA-3 SRA-4 SRA-4
Under study
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 10
Strategic Maintenance Process Strategic Maintenance Process
RequirementsDevelopment
(TYCOM, FFC)
Programming& Budgeting
(FFC, OPNAV)
Appropriation &Apportionment
(Congress, FMB)
Planning(RMC & MSMO)
Execution(RMC & MSMO)
Var
iati
on
Process stage
Savings Potential
- Risk decisionstoward “PSL+”- Industrial basepreservation
- MSMO Spiral 2 - SHIPMAIN- Assessments- Level-loading
Targeted strategies
-Reqts Realism: MRS- ICMP development
- MSMO stabilization - Contracts Governance- Depot work integration- RMC standardization
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 11
Programming ConsiderationsProgramming Considerations
• Meeting maintenance requirements since 2003 with baseline funding plus supplemental appropriations
– How to transition out of supplementals yet still secure needed funding(?)
– Fiscal policies of new administration….
• How is risk managed against shortfalls
– Preserve industrial base vs. service life risk?
• Phasing with major modernization programs
• Full funding vs. timing of funding
• Measurements tricky:
– Near term effects and long-term effects
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 12
Strategic Maintenance Process Strategic Maintenance Process
RequirementsDevelopment
(TYCOM, FFC)
Programming& Budgeting
(FFC, OPNAV)
Appropriation &Apportionment
(Congress, FMB)
Planning(RMC & MSMO)
Execution(RMC & MSMO)
Var
iati
on
Process stage
Savings Potential
- Risk decisionstoward “PSL+”- Industrial basepreservation
- MSMO Spiral 2 - SHIPMAIN- Assessments- Level-loading
Targeted strategies
-Reqts Realism: MRS- ICMP development
- MSMO stabilization - Contracts Governance- Depot work integration- RMC standardization
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 13
Execution PlanningExecution Planning
• Incremental improvements in MSMO Spiral 2
• MCIT replaces SHIPMAIN
– Focused on avail planning & execution performance
• What of “assessments”?
– Re-institute shipboard assessments to facilitate avail planning
• SSLCM: ICMP deploying BAWPs & AWPs
• Expanding role of MFOM
– Valuating lifecycle maintenance actions
• Port-loading considerations (source of variation)
• Technical requirements clarification & stabilization
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 14
Strategic Maintenance Process Strategic Maintenance Process
RequirementsDevelopment
(TYCOM, FFC)
Programming& Budgeting
(FFC, OPNAV)
Appropriation &Apportionment
(Congress, FMB)
Planning(RMC & MSMO)
Execution(RMC & MSMO)
Var
iati
on
Process stage
Savings Potential
- Risk decisionstoward “PSL+”- Industrial basepreservation
- MSMO Spiral 2 - SHIPMAIN- Assessments- Level-loading
Targeted strategies
-Reqts Realism: MRS- ICMP development
- MSMO stabilization - Contracts Governance- Depot work integration- RMC standardization
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 15
Maintenance ExecutionMaintenance Execution
• MSMO
–Over-arching objective: stabilize MSMO
• Permits contractor focus, commitment, repetition, improvement
–Incremental improvements for MSMO Spiral 2
• Beneficial to Navy and industry
• Comprehensive Contracting Strategy
–Contracts Governance Process
–Depot Work Integration
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 16
-
200
400
600
800
1,000
1,200
1,400
1,600
2001 2002 2003 2004 2005 2006 2007 2008 2009
$M
0
20
40
60
80
100
120
140
160
Av
g D
ay
s p
er
Yr Maint $M
OPTEMPO Actual(Avg Days per Yr)
Navy initiates FRP
MSMO Results: MSMO Results: Readiness vs. Maint InvestmentReadiness vs. Maint Investment
Increased steaming at same maint investment levels: MSMO enabling FRP
Large increase in steaming days/yr 2004-2008 (HOA, APS, POA, HADR, etc.)
Start MSMO
CNO Clark: “buy-down maint backlog” (2003)
Steaming days/yr/ship
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 17
MSMO Results: Contract PerformanceMSMO Results: Contract Performance
• Cost: rates stable, affordable, and w/i programmed levels
– Cumulative cost performance (thru FY08): ~ 4% cost under-run, all contracts,
all performance periods
• Schedule: response to current readiness exceptional – supports FRP
– >200 CNO MSMO availabilities – 1 late due to contractor performance
– Incorporation of change scope w/o sked impact significant (range 15-30%)
• Technical performance solid & improving
– Govt QA-point reject rate ~ 2%
• Partnership: All MSMOs productively engaged
in many Navy initiatives
1st-order MSMO program objectives being met 0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
Award FeePeriod 1
Award FeePeriod 2
Award FeePeriod 3
Award FeePeriod 4
Award FeePeriod 5
Award FeePeriod 6
Award FeePeriod 7
Observation Period
Av
era
ge
Re
jec
tio
n P
erc
en
tag
e f
or
all
Co
ntr
ac
tors
QA Reject trends
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 18
MSMO Controls, Oversight, GovernanceMSMO Controls, Oversight, Governance
MSMO success due to:
• All contracts issued under proper Navy contract & technical warrants
• Contract stability: focus, investment, process improvement
• RMC exercising contractual authorities
• DCAA periodic cost audits
• Award fee evaluation boards – frequent feedback & accountability
• Standing MSMO Acqn IPT providing dynamic review & adjustment
• Rigorous oversight by ASN(RDA)
– Balancing competition, performance incentives, stability
– Approved additional contract strengthening in MSMO Spiral 2 (FY10-14)
• Navy submitting report to Congress in FY10 Budget Request substantiating rationale for executing DDG Modernization w/ MSMO
Many pieces contributing to overall program strength
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 19
Update: Comprehensive Contracting & Update: Comprehensive Contracting & Depot Work IntegrationDepot Work Integration
Policy for Comprehensive Contracting and Depot Work Integration
– Approved by ASN(RDA) 27 March 2009
– Enabling instructions & policies implemented JFMM Ch 7A (30 Jun 08)
• Key elements/enablers
– All work coincident to depot availabilities shall be planned, integrated and coordinated through the NSA using the LMA as the planning agent
– LMAs shall have first opportunity to execute all depot work for which they have organic capability, capacity and cost reasonableness
• Programs shall budget for reasonable depot installation costs
– AITs shall execute AIT-unique work, and can execute depot installation work if the LMA does not meet the aforementioned requirements
– NSAs shall remain the single authoritative voice to equitably resolve availability disputes and disruptions amongst all customers
Policy successfully executed on several major CNO availabilities
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 20
Comprehensive Contracting & Depot Work IntegrationComprehensive Contracting & Depot Work IntegrationOverviewOverview
Enablers: - SY-AIT SWT 897-04 - 1 June 08 JFMM update - ASN Policy directive
Enablers: - 2004 FISC/SUP/Fleet/SEA/MOU - USFF 201411ZJUL06
- USFF 211431ZJUN07 - USFF 271300ZMAR08
- 30 June 2008 JFMM update - NAVSEA SEAPORT-e Policy
- ASN Policy directive
Comprehensive Contracting & Depot Work IntegrationComprehensive Contracting & Depot Work Integration
Comprehensive Contracting Strategy
Maint, Modernization& AIT Integration
• Inclusive & balanced planning• End-to-end avail mgt• Single authority for conflict resolution
Portfolio ofShipboardProductionContracts
Contracts Governance
Oversight Process
United States Fleet ForcesUnited States Fleet Forces Ready Fleet … Global ReachReady Fleet … Global Reach 21
Questions?Questions?