Approved for Public Release; Distribution is unlimited. 1kitsapeda.org/.../2014/06/...and-Budget-contracting-trends-Final.pdf · Approved for Public Release; ... Major Range & Test

1 Approved for Public Release; Distribution is unlimited.


WELCOME ABOARD!

Honest, candid

communications

(Don’t leave with

questions unanswered)

Our future depends on you!

Why We’re Here Today

• Better communicate our needs

• Improve opportunities for Industry

• Collectively improve our performance

There is relevant

opportunity

(Steady demand for

industry materials and

services)

Help us make this a better event (Surveys for feedback & recommendations)


NAVAL UNDERSEA WARFARE CENTER

DIVISION KEYPORT

COMMAND OVERVIEW

INDUSTRY DAY 2014

CAPT Dave Kohnke

Commander

(360) 396-2340

[email protected]

Mr. Alan Kent

Division Technical Director (Acting)

(360) 315-3468

[email protected]

Distribution Statement A: Approved for Public Release; Distribution is unlimited.


ASN (RD&A) Navy Acquisition

Executive

CNO Chief of Naval

Operations

CUSFFC Commander US

Fleet Forces Command

PEO Ships Combatant,

Amphib, Auxiliary

PEO Carriers Aircraft Carriers

PEO IWS Integrated

Warfare Systems

PEO LCS Littoral

Combat Ships

PEO Sub Submarines

NAVSEA Commander

Naval Sea Systems Command

SUPSHIPS

Naval Shipyards & RMCs

(NAVSEA Operated, Fleet Owned)

NAVSEA Warfare Centers

NAVSEA Affiliated Program Executive Offices

COMSPAWAR (ADDU for C4I)

COMNAVSUP (ADDU for Log Spt)

Naval Surface Warfare Center

Naval Undersea Warfare Center

Alignment


Technical Operations - Expertise - Technology - Engineering Services - Products Equip and Support the Fleet

NSWC Indian Head/ EOD, MD

NUWC Newport, RI NUWC Keyport, WA NSWC Crane, IN

NAVSEA Warfare Centers

NSWC Dahlgren, MD NSWC Panama City, FL

NSWC Carderock, MD

NSWC Corona, CA

NSWC Pt Hueneme, CA

Warfare Centers: Naval Naval Undersea Surface

• Civilians (FY13 End-strength) 4,577 15,968 • Business Base (FY14 Planned) $1.4B $7.1B • Mission Technical Capabilities 33 92


Provide advanced technical capabilities for;

for undersea warfare and related areas of

homeland security and national defense.

NUWC Keyport Mission & Organizational Pillars

• Test and Evaluation

• In-Service Engineering

• Maintenance and Industrial Base Support

• Fleet Material Readiness

• Obsolescence Management

System

Acceptance

and

Operational

Readiness

Maintenance,

Engineering

and Industrial

Operations

In-Service

Engineering

and Integrated

Logistics

Support

Operations

Services

Naval Sea

Logistics

(NSLC)


Pearl Harbor, HI

Apra Harbor, Guam

Nanoose, Canada • Co-located with the Fleet • Keeping them ready to fight

San Diego, CA

Bangor, WA Portsmouth, NH

Norfolk, VA

Indian Head, MD

Mayport, FL

Hawthorne, NV

Keyport, WA

Waterfront In-Service Engineering

Ships & Ships Systems In-service Testing

On-site USW Weapons & UUV Maintenance

NSLC On-site Integrated Logistics & IT Support

Fleet USW/ASW Test, Training, & Eval.

FTECSubmarines

Surface Ships

SATCOM

Coast Guard

FMS

Air Force

Shore Sites

Aircraft

FTECSubmarines

FTECSubmarines

Surface Ships

SATCOM

Surface Ships

SATCOM

Coast Guard

FMS

Air Force

Shore Sites

Coast Guard

FMS

Air Force

Shore Sites

Aircraft

Air

Surface Sub

• SESEF

• CSSQT

• FORACS

• Torpedoes • USW Targets • UUVs • USW Mines

• MSF • C5I

• Periscopes

• Imaging Sys

• Electronic Warfare

• Outfitting • Config. Mgmt • Maint. Planning • Shipyards IT Maint. • Supplier Quality Perf.

Mechanicsburg, PA

Strategic Locations

http://upload.wikimedia.org/wikipedia/en/3/36/NavBasePointLoma.jpg


Government Workforce 1,955 Employees (81 OPM Skill Sets)

Scientists &

Engineers

(13 Skill Sets)

Technical

Support

(8 Skill Sets)

Business

Support (31 Skill Sets)

Technicians

(5 Skill Sets)

Trades

(24 Skill Sets)

• Logistics Mgmt

• IT Mgmt

• Equipment Services

• Production Control

• Industrial Specialists

• Electronic Engineers

• Mechanical Engineers

• General Engineers

• Computer Scientists

• Computer Engineers

• Management Analysts

• Financial Management

• Quality Assurance

• Contracting

• Purchasing

• HRO

• Engineering Technicians

• Electronics Technicians

• Physical Science Technicians

• Ordnance Equip. Spec.

• Electronic Mechanics

• Material Handlers

• Equipment Operators

• Deckhands

• Industrial Skills

29%

27%

21%

15%

8%


Naval Sea Systems Command Headquarters (NAVSEA) • SEA04 – Logistics • PMS392 – Strategic and Attack Subs • SEA05 – Warfare (05W), Test & Evaluation (05E)

Other Navy • Office of Naval Research (ONR) • Space and Naval Warfare Systems Command (SPAWAR) • Operational Test & Evaluation Forces (OPTEVFOR)

Naval Supply Systems Command (NAVSUP) • Weapons Systems Support Centers

Naval Air Systems Command • PMA205 – Aviation Training Systems • AIR 5.0 – Major Range & Test Facilities Budget (MRTFB)

Other • Private Parties • Academia • Other Gov’t

Naval Operating Forces • Pacific Fleet • Atlantic Fleet

Other DoD • OSD JCTD • Army

Customers

FY13 Funded Orders ($467M)

2% 1%

12%

9%

6%

6% 3%

61% Navy Program

Executive Offices (NAVSEA Affiliated)

• PEO Sub • PEO IWS • PEO Carriers • PEO Ships • PEO LCS


$213M 44%

In-house Labor $86M 18%

Material & Equipment

Procurements

FY13 Execution

$484M

$271M

56%

$142M 29%

Services Contracts

$43M 9%

Other Gov’t Service

Providers

Outsourced Expenditures

Money Flow


• Electronics/components

• Off-the-shelf software

• Circuit cards

• Computers

• Industrial equipment

• Manufacturing materials

• Industrial supplies

• Office supplies

• Tools

• Building material

• Technology development

• Data collection, entry & admin support

• Technical writing & graphics

• Software development & maintenance

• Systems development

• Systems maintenance & installations

• Industrial trades

• Range craft operations and maintenance

• Hazardous waste management

• Hazardous waste disposal

• Personnel development & training

• Facilities maintenance

• Transportation

• Communications

$86M 18%

Material & Equipment

Procurements

$142M 29%

Services Contracts

Typical Products & Services Purchased


Operations Services

Workforce Infrastructure Information Technology

Transportation

Safety

Security

Environmental

Facilities Management • Mission Support • Building Maintenance • MILCON/Facility Planning • Energy Conservation

• Occupational Safety & Health

• Explosives

• Compliance • State Permits • Industrial Processes • Waste Disposal

• Information • Industrial • Personnel • Physical • Emergency Mgmt

• GSA Vehicles • Mobile Cranes • Mat’l Handling

Equipment

Planning • Health Assessment • Strategic Planning • Investment Planning • EEO Programs

Shaping • Recruiting & Interns • Mentoring • Retention • Awards • Hiring Plans

Management • Staffing • Employee Relations • Labor Relations • Performance Mgt • EEO Complaints

Development • Training & Development • Apprentice Program • Academic Programs • DAWIA Programs

Networks & Telecommunications • Network Communications

• Technology and Server Infrastructure

• Operational support

Corporate Applications & NMCI • Corporate applications & SharePoint sites

• SIPRNET

• NMCI administration

• DON Application and Database Management System (DADMS)

Information Assurance (IA) • Information integrity

& availability

• Firewalls

• IA training


RANGE OPERATIONS

ANTI-SUBMARINE SYSTEMS TEST & TRUSTED AGENT

PORTABLE RANGES

DATA REDUCTION & ANALYSIS

Provides Full Spectrum Test & Evaluation Across Entire Weapon Life Cycle

Systems Acceptance & Operational Readiness

R&D Testing

Developmental Testing

Operational Testing

Product Acceptance

Testing

In-Service Performance

Testing


• Depot and Intermediate Maintenance

– Nation’s Only Torpedo Depot

• Electronic and Mechanical Assemblies Repair

• Shell Repair

• Container Refurbishment

– Intermediate Maintenance Activity (IMA)

• Only Lightweight Torpedo IMA

• Fully Certified Heavyweight IMA

• Maintenance Engineering

– Leading Edge Fabrication Technology

• Robotic Laser Coating and Cladding

– Rapid Prototyping and Repair Technology

• Laser Scanning

• Selective Laser Sintering

– Custom Engineered Solutions/ Obsolescence Resolution

• Reverse engineering

• Prototype manufacture/testing

• Production documentation

VLS Missile Tube Laser Repair

Emergent Custom Engineered Solutions

Intermediate Maintenance

Pearl Harbor IMA Shell

Repair

Assembly Repair

Laser Processing Facility

Selective Laser Sintering

Maintenance Engineering & Industrial Operations


In-Service Engineering

Systems Engineering

• Reliability, Maintainability, Availability

• Hardware Design

• Software Development

• Information Assurance & Cyber Support

• Maintenance Engineering

• Training & Human Support Engineering

• Commercial Off the Shelf Insertion & Tech Refresh

Fleet Technical Support

• Distance Support

• On-Site Technical Support

• Alteration Installation Teams

Obsolescence Mgmt

• Analysis, Prediction & Resolution

• Real-time Tracking / Mitigation

Acquisition Engineering

• Engineering Support

• Contracts Management

Lifecycle Logistics

• Configuration Management

• Integrated Logistics Support

• Logistics Planning

• Technical Data Management

Air Undersea Surface


Naval Sea Logistics

Operating Material & Supplies (OM&S)

• Inventory Management

• Warehouse Management

• Receipt and Inspection

• Material Issuing

Information Technology

• Software Development

• Information Assurance

• Information Operations Support

• Systems Administration

• Database Administration

Maintenance & Technical Support

• Planned Maintenance System (PMS)

• Reliability Centered Maintenance

• Navy Special Emphasis Program Support

• Level of Repair Analysis (LORA)

• Reliability, Maintainability & Availability

Acquisition and Lifecycle Logistics

• Program Office Support

• Configuration Management and Validations

• Integrated Logistics Assessments (ILA)

• Logistics Policy and Planning

• Technical Data Management

• Technical Manual Health Assessments (TMHA)

• Equipment Outfitting and Provisioning Support

• Database Modeling

Provides innovative logistics, engineering, information technology,

and quality assurance solutions that meet the acquisition and

sustainment life-cycle requirements of our Navy.

Supplier Quality

• Product Data Reporting and Evaluation Program (PDREP)

• Contractor Performance Assessment Reporting System (CPARS)

• Past Performance Information Retrieval System (PPIRS)

• Federal Awardee Performance and Integrity Information System (FAPIIS)


• Strategy complements of our work-force shaping process

1. Workload is planned to our Technical/Business Capabilities and Knowledge Areas

2. Governmental functions are performed organically

3. Contracts are used to supplement our capabilities:

a. Add capacity as required to accomplish assigned work

b. Functions that can be performed more effectively and efficiently by industry

c. Short-term specialized service requirements

• We develop our services acquisition strategy corporately:

1. Make-or-buy decisions are managed by Keyport’s Board of Directors

2. Cross-Department needs are consolidated

3. Contract scope is closely analyzed to ensure:

a. Not be too large to effectively administer and oversee

b. Not smaller than necessary to avoid further taxing limited contracting resources

c. Appropriate to the tasking and history

Services Acquisitions Strategy


FY14-16 Major Services Acquisition Strategy

Mission Area Service J J A S O N D J F M A M J J A S O N D J F M A M J J A S

Infrastructure

Information Technology (Non-NMCI)

Mobile Anti-Sub Training Target

Test & Evaluation Supt (KPT)

Navy Range

Industrial Oper. & Maintenance

Expended Batteries Reclaimation

Lt Wt Wide Aperture Arrays

In-Service Engineering & ILS

Software Devel: Tactical

Software Devel: Non-Tactical

Technology Demo & Assessment

CV-TSC Installs

Small Business Tech Trans (STTR)

SLDCADA

Administration: Info Retrieval

Integrated Supply Chain Analysis

Project Management Training

IT Systems

Logistics & Engineering Mgmt

HI/SD Detachment Operations Supt

Program/Financial Mgmt

Administrative

Graphics & Reporting

Cross-

Departments

Naval Sea

Logistics

FY14 FY15 FY16

Operations

Services

Test

&

Evaluation

Maintenance

In-Service

Engineering

&

Integrated

Logistics

Services

Current Contract New, In Solicitation Planned Follow-on

N00178-04-D-4605 FY03

Current Performance Period:

Contract Total Duration (with Options):

N00178-04-D-4607 FY04

N00178-04-D-4607 FY05

N00253-13-C-0017

N00178-08-D-5371 FY01

N00178-04-D-4080 FY01

N00178-04-D-4033 FY02

N00253-13-C-0001

N00178-04-D-4018 FY08

N00178-04-D-4018 FY07

N00178-08-D-5546 FY01

N00178-04-D-4119 FY01

N00178-07-D-5198 FY01

N65726-14-F-0002

N65726-14-P-0001

N65726-14-F-0005

N00178-04-D-4065 FY01

N00178-04-D-4065 FY02

N00178-04-D-4083 FY04

In Solicitation

In Solicitation

In Solicitation

N00253-10-D-0006

N00024-14-C-4110


FY13-14 Contractor Performance Assessment Reporting System (CPARS)

Quality ScheduleCost

Control

Business

Relations

Mgmt of

Personnel

Use Small

Business

Exceptional 5 8 3 6 4 0

Very Good 15 8 7 18 10 0

Satisfactory 17 19 21 14 17 13

Marginal 1 3 1 0 0 0

Unsatisfactory 0 0 0 0 0 0

Evaluations

Definitely Would 29

Probably Would 8

Might or Might Not 1

Probably Would Not 0

Definitely Would Not 0

Contractor

Performance

Evaluation

Final

Recommendation

(Would you award to

this company again?)

NUWC Keyport FY13-14 CPARS Metrics

• 38 Contracts (Services & Hardware) required evaluations

• All evaluations completed on time

• Contracts Department manages CPARS process to ensure objectivity and corporate consistency

• CO/DTD/DDTD engages as required to resolve contract issues

Contracting Performance Oversight and Feedback

2658

101

5 0

Exceptional Very Good Satisfactory Marginal Unsatisfactory

Total Evaluation Counts


Current Challenges

• Navy struggling to adapt to continued fiscal uncertainties

- Budget Reductions

- Sequestration

- Programs Uncertainty

• However: Overall tasking by Navy customers to Keyport continues to grow

• Operational constraints put in place intended to control and/or reduce costs

- Hiring Restrictions

- Mandatory Overtime Reduction

- Mandatory Travel Reductions

- Increased Compliance/Administration Demands

- Funding Carryover Ceilings

- Overall Funding Ceilings

Reduced

government workforce

capacity

Increased demand

to execute quicker

Solution: Increased effective partnering with Industry


Industry Partnering Initiatives

• Finding more opportunities to

increasing partnering

- In-depth reviews of current

government workforce

Inherently governmental

Mission Subject Matter

Experts

Minimum workforce pipeline

- Analysis of customers tasking

Short and Long-term

New vs Continuation

Gov’t/Industry Execution

- Challenge of existing barriers

Title 10 Depot Core Workload

A76 Studies Prohibition

ERP Roles

• Greater internal contracting expertise

- Acquisition Office

- Contracting Officer Representatives

- Resource Managers

- Division Leadership

• Greater out-reach to industry

- Proposal Response Times extended

to 30 days minimum

- Increased interaction with local

economic development organizations

- Increased acceptance for on-site

visits/discussions by Industry

- Attendance to Keyport Industry Days

- FY10: 80

- FY12: 150

- Today: 230+

22

Industry Day 2014: Budget

and Contracting Trends

presented by

Carrie Bender Acquisition Department Head/

Chief of Contracting Office NUWC Division, Keyport

Distribution Statement A: Approved for Public Release: Distribution is unlimited.

23

Department of Navy FY15 Budget Request

Source: Department of Navy Comptroller


24

*Through mid May 2014 - Report pulled from http://www.usaspending.gov/data on 14 May 2014

DOD/DON Dollars (Prime Contracts)

0

50

100

150

200

250

300

350

400

450

2014 2013 2012 2011 2010 2009

Bil

lio

ns

United States

DOD US Spend DON US Spend

0

1

2

3

4

5

6

7

8

9

10

2014 2013 2012 2011 2010 2009

Bil

lio

ns

Washington State

DOD WA Spend DON WA Spend


25

Kitsap Peninsula Contract Obligations

0

100

200

300

400

500

600

700

800

NAVSUP (N00406) NAVFAC (N44255) NAVSEA PSNS(N4523A)

NAVSEA NUWC(N00253)

DLA PSNS (SPMYM2)

FY11

FY12

FY13

FY14 (3/31/2014)


$M

26

NUWC Keyport - What We Buy

• Technology development

• Data collection, entry & admin support

• Technical writing & graphics

• Software development & maintenance

• Systems development

• Systems maintenance & installations

• Industrial trades

• Range craft operations and maintenance

• Hazardous waste Mgmt

• Hazardous waste disposal

• Personnel development & training

• Facilities maintenance

• Transportation

• Communications

Services Portfolio

Services Sub-Portfolio

% Kpt Service Contracts

Knowledge Based Engineering 69%

72% Administrative & Other 4%

Equipment Maint., Repair and Overhaul 7%

12% Installation of Equipment 6%

Facility

Building & Plant Maintenance 4%

9%

Utilities 2%

Operation of Gov’t Facilities 2%

Housekeeping 1%

Architect/Engineering Services 1%

Electronics, Communications

ADP Services 6% 7%

Telecom Services 1%


27

Services

NUWC Keyport FY14 Forecast

Ammunition & Explosives

Materials Handling Equipment

Hardware & Abrasives Comm/Detect/Coherent Radiation

Electronic Equipment & Components

Fiber Optic

Instruments & Laboratory Equipment

ADP Equipment, SW, Supplies

Other Products

SERVICES PRODUCTS


28

How Do We Communicate?


Largest Procurements ($5M+):

• Solicitation specific industry day and/or site visit

• FedBizOpps (FBO) special announcements and/or Seaport-e advance notices

• Draft solicitations

Above $25K:

• Synopsis in FBO

All:

• Forecast for all services and supplies published each October in FBO

• Forecasted services published in Seaport-e

• Procurement Technical Assistance Center events

• Through our Deputy for Small Business and Contracting Officers (including line card contacts)

29

The Process of Buying Goods & Services


Planning & Requirements

Definition

Solicitation &

Evaluation

Award & Administration

• Communicating through market research and/or /Contracting Officer and/or Deputy for SB

• Gov’t technical users are conducting scan of industry capabilities

• Budgeting/cost estimating

• Project planning

• Writing specifications or work statements

• Determining evaluation factors and criteria

• Communicating through Contracting Officer

• Issuing a synopsis if over $25K

• Issuing a request for quote or solicitation

• Price and/or cost evaluation by contract specialist

• Technical evaluation by technical users

• Small Business plan evaluation by DSB

• Past performance evaluation

• Communicating through Contracting Officer and Contracting Officer Representative

• Making award based on best value

• Issuing award synopsis if over $25K

• Working with contractor to ensure successful contract execution

• Collecting and Reporting performance information

• Paying invoices through Wide Area Work Flow

• Closing out contract

30

The Process of Buying Goods & Services


Confusion

Awarding

Competing

Planning

BUDGET

What is Best Value? When can I talk to an end user?

Should I get a Seaport contract?

How do I put together a technical proposal?

What are tripwires?

31

Acquisition Environment and Trends

The Backdrop:

• Federal Acquisition Regulation – 1885 pages

• Defense Federal Acquisition Regulation Supplement – 1362 pages

• Navy Marine Corps Acquisition Regulation Supplement – 174

• DOD and Navy instructions

• 1984 – Competition in Contracting Act (CICA)

• 1994 – Federal Acquisition Streamlining Act

• 1995 – Federal Acquisition Reform Act

• 1990s – Drawdown in acquisition workforce

• 2000s – Building up of acquisition workforce

• 2009 – Weapon System Acquisition Reform Act

• 2010 – DOD Better Buying Power

• 2014 – Rapid Technology Insertion (getting technology into warfighter hands more quickly)


32

Acquisition Environment and Trends

Ashton Carter Memos – SEP 2010 and NOV 2012 – Better Buying Power: Deliver better value to the taxpayer and warfighter

Seven Focus Areas:

• Achieve Affordable Programs

• Control costs Throughout the Product Lifecycle

• Incentivize Productivity & Innovation in Industry and Govt

- Better define value

- Better define what is acceptable to the Govt

• Eliminate Unproductive Processes and Bureaucracy

• Promote Effective Competition

₋ Enforce open system architecture and effectively manage technical data rights

• Improve Tradecraft in Acquisition of Services

₋ Expand use of requirements review boards and tripwires

• Improve the Professionalism of the Total Acquisition Workforce


33

Ashton Carter Memo – Productivity and Innovation


Better Define Value: What is important to the Government in making an award?

• If non-cost factor such as technical, there is a limit to how valuable technical superiority can be

• Technical proposals need to contain clearly articulated benefits

• While budget is impacting consideration of cost, best value is still a continuum (meaning, it’s more than just low priced, technically acceptable – LPTA)

Better Define What is Acceptable to the Government:

• Calibrate expectations so that performance/product is reasonably priced

• Leave room to exceed expectations – important when collecting, reporting, and using performance information

34

Tightened Contract Oversight: NAVSEA Tripwires

Selected tripwires:

• Hourly labor rates exceeding rate of $156

• Excessive variation between proposed and actual rates

• Subcontracts - monitor proposed addition of subcontractors beyond what was included as part of the initial award

• Excessive ODCs on a services contract

• Lack of effective competition (when only one offer is received, it’s going to get a closer look and require headquarters approval)

Commander, Naval Sea Systems Command Memo of 4 April 2012,

Revised 6/2013

Subj: NAVSEA HEAD OF THE CONTRACTING ACTIVITY (HCA) SERVICES CONTRACTING TRIPWIRES, INTERIM POLICY


35

• Keep being innovative in your technical approaches and solutions. Technical

innovation still counts in best value contracting – the key is to be specific and realistic about what you are proposing.

• Cost is more important than it used to be in best value procurements.

Technical approaches will need to take that into account. • After award, do what you say you’ll do in your proposal – in our monitoring

environment, it may link to your past performance rating • Reduce costs that drive your indirect rates • Make sure that your proposal and your contract performance realistically

reflect labor market trends.

How Do You Stay Competitive?


36

Seaport (Services) - http://www.seaport.navy.mil/default.aspx Federal Business Opportunities (FBO) - https://www.fbo.gov/ NUWC Keyport Forecast - http://www.navsea.navy.mil/nuwc/keyport/pages/Small%20Business/Business%20Information.aspx NAVFAC NW Forecast - http://www.navfac.navy.mil/products_and_services/sb/opportunities/forecasts_opportunities.html NAVSUP FLC Puget Sound - http://www.navsup.navy.mil/navsup/business_opps

How to Find Contracting Opportunities


http://www.seaport.navy.mil/default.aspx



https://www.fbo.gov/



http://www.navsea.navy.mil/nuwc/keyport/pages/Small Business/Business Information.aspx



http://www.navfac.navy.mil/products_and_services/sb/opportunities/forecasts_opportunities.html



http://www.navsup.navy.mil/navsup/business_opps

http://www.navsup.navy.mil/navsup/business_opps

37

Points of Contact: NUWC Keyport Small Business Program: Diane Kostelecky – [email protected] 360-315-6721 NAVSUP FLC Puget Sound Small Business Program Lucy Leu – [email protected] 360-476-1985 NAVFAC NW Small Business Program Stephanie Higgins – [email protected] 360-396-0038 NAVSEA PSNS Dwin Crow – [email protected] 360-476-4111

Doing Business with the Navy in the Puget Sound Area


mailto:[email protected]




38

QUESTIONS

Documents

Approved for Public Release; Distribution is unlimited. 1kitsapeda.org/.../2014/06/...and-Budget-contracting-trends-Final.pdf · Approved for Public Release; ... Major Range & Test