Third Party Planning Contract Implementation

Surface Ship Maintenance and Modernization

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- Contract Strategy- Services Available- Ship Class / Homeport Breakdown- Contract Status Update- Contract Structure- Contract Management- Process and Deliverables- Ship Check Management- Long Lead Time Material Support- Induction Schedule- Implementation POA&M, Successes, and Challenges

Third Party Planning Agenda

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• Assistant Secretary of the Navy for Research, Development & Acquisition (ASN-RDA) advocated for greater competition when contracting for depot level maintenance and modernization execution

• This direction led to the development of three National contracts which are being solicited and awarded for advanced planning services*– CG 47 and DDG 51 Class – LSD 41/49 and LPD 17 Class– LHA 6 and LHD 1 Class

*DDG 1000 Class, LCS Class, PC 1 Class, and MCM 1 Class not in contract scope

• Contracts awarded and administered by NAVSEA HQ

Strategy Supports Pivot to Firm Fixed Price Execution Contracts

Third Party Planning Contract Strategy

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CNOCMAV

EMCM

• Execute CMP assessments• Validate shipboard equipment configuration• Document assessment results• Support tailored to RMC requirements

Assessment Execution

• Clarify 2-kilos received using ship checks and interface with RMCs • Continually develop 4E compliant work specifications• Develop CNO availability work package analysis for use by RMCs• Provide technical support to local RMCs during the solicitation process

Planning Support

• Identify, procure, and ship long lead time material• Provide support for provisioning of engineering and technical data, configuration management

ILS Support

• Support RMCs in addressing technical scope and cost estimates documented in original work item CFRs • Support RMCs in developing growth RCCs and new work items• Support tailored to RMC requirements

Execution Support

• Analyze availability execution RCCs to support improvements to Master Specification Catalog templates and incorporating lessons learned

Feedback Analysis

Third Party Planning Services Available

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San Diego

MSMOExpiration Dates

LPD 17 - Jun 15DDG 51 - Sep 15CG 47 - Sep 16

LSD 41/49 - Sep 17LHA 6/LHD 1 - Sep 18

5

Everett

MSMO Expiration DateDDG 51 - Sep 15 (D)

DDG 51 – Sep 16 (ND)

Norfolk

MSMOExpiration Dates

CG 47 - Sep 15LSD 41/49 - Sep 15

DDG 51 - Dec 15 (ND)DDG 51 - Mar 16 (D)

LHD 1 - May 16LPD 17 – Sep 16 (TSMO)

LPD 19 /24 – Sep 17

Phased implementation plan• 2015 – begin CNO availability planning • 2016 – begin CM/EM planning

Strategy supports expiration of existing MSMO contracts

Third Party Planning Ship Class/Homeport Breakdown

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• Contract Development Milestones CG/DDG RFP Released 05 September

2014 CG/DDG Proposals Received 20 October 2014 CG/DDG Contract Award 09 February

2015• First Ship: CG 60 – USS NORMANDY (Avail Start: 23 February 2016)

LSD/LPD RFP Release 17 November 2014

LSD/LPD Proposals Received 06 January 2015

LSD/LPD Contract Award 27 May 2015

• First Ship: LPD 18 – USS NEW ORLEANS (Avail Start: 12 December 2016)

– LHA/LHD RFP Release 03 December 2015

– LHA/LHD Proposals Received 27 January 2016

– LHA/LHD Notional Contract Award 10 May 2016

• First Ship: LHD 5 – USS BATAAN (Avail Start: 27 November 2017)

CRUDES and LPD/LSD contracts awarded to Q.E.D. Systems Incorporated

Third Party Planning Contracts Status Update

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• Contract Type - Cost Plus Fixed Fee – Level of Effort for services provided

– One base year, two option years, two award term years

– Maximum Fixed Fee of 6%

• Performance Incentive Fee – Maximum Incentive Fee of 5%

– Predetermined, objective, formula based evaluation factors

– 12 month performance evaluation period

– Government can unilaterally change evaluation factors

Contract structure does not utilize Award Fee Boards

Third Party Planning Contract Structure

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• COR Responsibilities- Overall Technical and Fiscal Management

• ACOR Responsibilities- Assist COR with performance incentive management- Manage TI technical performance across ports- Drive feedback and institutionalize lessons learned

• TPOC/APM Responsibilities - TI Origination – define RMC port level requirements- TI Technical Compliance – Interface with MTs to

monitor and document quality of planning services provided

RMC

SURFMEPP

SEA 21

SEA02 PCO

COR

ACOR

TPOC/APM

Contract Oversight Team

• Contract Funding- Continuous funding flow is a prerequisite- Hull level estimates developed annually for next fiscal year planning requirements- Incremental funding provided by TYCOM to NAVSEA on a quarterly basis- Funding required to authorize Technical Instructions

Third Party Planning Contract Management

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• CNO Availability Planning– Work Specification Development

• Cost Estimates

• Engineering Issues

– Work Specification Review/Approval• Face to Face Specification Reviews

– Work Package Development• Progress Reporting/Meeting Attendance

– Work Package Integration

– Work Package Turnover

– Support during Solicitation Process

• CM / EM Planning– EM work specifications have a mandatory 24 hour turnaround

Minimal legacy planning process changes

All planning IAW JFMM

Maximize use of local planning personnel

New RMC C300 function:Advance Planning Manager/Technical Point of Contact

Third Party Planning Process and Deliverables

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• Planning floor has 14 calendar days to seek clarification or reject 2 Kilos assigned for planning

• Ship checks will be conducted:– ideally, on the vessel in homeport– on a “sister ship” of same class when authorized by RMC PM– out of homeport, when necessary

• All ship checks will be coordinated with the RMC PM

• All ship checks will be executed utilizing a ship check template and results documented for Government review

• Completion of a ship check will be annotated on the standard cost estimating form associated with the work specification

• All travel in support of ship checks must be authorized by the Government

Continuous planning ship checks utilizing local personnel

Third Party Planning Ship Check Management

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• LLTM is defined as material with a procurement lead time greater than 30 days prior to start of an availability

• 3PP will identify and document LLTM on Work Items during work specification development

• RMC PM concurs with LLTM identification and determines whether 3PP needs to procure

• Procuring Contracting Officer (PCO) issues a contract modification for purchase of LLTM

• When directed by COR/ACOR, 3PP will transfer LLTM to executing shipyard

Third Party Planning Long Lead Time Material Support

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• FLEET provides quarterly funding to NAVSEA 02

for LLTM.

• Technical Instructions will track the cost of ILS

support associated with the labor hours for

procurement and inventory.

• 3PP provides a monthly report that lists all LLTM

identified for an availability with details concerning

its procurement, shipping and receipt status.

• 3PP will warehouse materials that it procures.

Third Party Planning Long Lead Time Material Support

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• Technical Instruction – provides clarification of services being procured

• Number of work specifications• Meeting attendance• Planning Milestones• Planning POCs

• Types of Technical Instructions (TI)

• CNO Availability Planning• CMAV/EM/CM Planning• LLTM Procurement Labor

• Base Year Period of Performance (POP) = 12 months from contract award

• TI POP within CLIN POP

• TI developed by RMC, approved by COR, released by PCO

Flexibility to meet NAVSEA/TYCOM/RMC planning requirements

Third Party Planning Contract Management

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Third Party Planning CNSL - CRUDES Induction Schedule

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Schedule Reflects CNO Availabilities Inducted Through 2QTR FY16

Ship Ship Name Avail Type FY Start Planning

(A-540)Avail

Start Date NSA

CG 0060 NORMANDY SRA4-1 2016 9/1/2014 2/23/2016 SPORTDDG 0096 BAINBRIDGE SRA2-1 2016 1/18/2015 7/11/2016 SPORTCG 0064 GETTYSBURG SSRA1 2016 2/8/2015 8/1/2016 SPORTDDG 0061 RAMAGE ESRA 2016 3/22/2015 9/12/2016 SPORTDDG 0066 GONZALEZ EDSRA 2016 4/5/2015 9/26/2016 SPORTDDG 0107 GRAVELY SRA1-2 2016 4/5/2015 9/26/2016 SPORTDDG 0084 BULKELEY SRA2-2 2017 4/26/2015 10/17/2016 SPORTCG 0069 VICKSBURG SSRA1 2017 7/12/2015 1/2/2017 SPORTCG 0068 ANZIO ICMAV 2017 10/4/2015 3/27/2017 SPORTDDG 0094 NITZE SRA2-1 2017 11/1/2015 4/24/2017 SPORTDDG 0055 STOUT SRA3-2 2017 11/22/2015 5/15/2017 SPORTDDG 0087 MASON SRA2-2 2017 12/20/2015 6/12/2017 SPORTDDG 0103 TRUXTUN DSRA1 2017 3/20/2016 9/11/2017 SPORT

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Schedule Reflects CNO Availabilities Inducted Through 3QTR FY16

Ship Ship Name Avail Type FY Start Planning A-540

Avail Start Date NSA

LSD 0046 TORTUGA SSRA1 2017 7/19/2015 1/9/2017 SPORT

LSD 0041 WHIDBEY ISLAND PMA3-3 2017 8/18/2015 2/8/2017 SPORT

LPD 0017 SAN ANTONIO DPMA 2017 9/13/2015 3/6/2017 SPORT

LSD 0046 TORTUGA MODPRD 2018 5/8/2016 10/30/2017 SPORT

LPD 0019 MESA VERDE DPMA 2018 5/22/2016 11/13/2017 SPORT

Third Party Planning CNSL – LPD/LSD Induction Schedule

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Third Party Planning CNSP - CRUDES Induction Schedule

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Schedule Reflects CNO Availabilities Inducted Through 2QTR FY16

Ship Ship Name Avail Type FY Start Planning

(A-540)Avail

Start Date NSA

DDG 0101 GRIDLEY DSRA1 2016 3/22/2015 9/12/2016 SPUGETDDG 0106 STOCKDALE DSRA1 2016 3/22/2015 9/12/2016 SSDCG 0053 MOBILE BAY SRA3-2 2017 4/26/2015 10/17/2016 SSDDDG 0111 SPRUANCE SRA1-2 2017 8/23/2015 2/13/2017 SSDDDG 0073 DECATUR SRA2-1 2017 9/13/2015 3/6/2017 SSDCG 0073 PORT ROYAL ICMAV 2017 10/10/2015 4/2/2017 SSDCG 0065 CHOSIN SSRA1 2017 1/17/2016 7/10/2017 SSD

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Schedule Reflects CNO Availabilities Inducted Through 3QTR FY16

Ship Ship Name Avail Type FY Start Planning A-540

Avail Start Date NSA

LPD 0018 NEW ORLEANS DSRA1 2017 6/14/2015 12/5/2016 SSD

LPD 0025 SOMERSET SRA1-1 2017 2/21/2016 8/14/2017 SSD

Third Party Planning CNSP – LPD/LSD Induction Schedule

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# TASK DESCRIPTION RESPONSIBLE DATE 1 Conduct process Table Top exercise in Norfolk SURFMEPP 05AUG2014 2 Conduct process Table Top exercise in San Diego SURFMEPP 19AUG2014

3 Conduct Funding Flow / COR workshop #1 SEA 21 / SEA 02 11SEP2014

4 Conduct Funding Flow / COR workshop #2 SEA 21/ SEA 02 19SEP2014

5 Conduct Funding Flow / COR workshop #3 SEA 21/ SEA 02 09OCT2014

6 Conduct Mock Availability Exercise #1 with RMCs CNRMC 17OCT2014 7 Finalize SEA 21 / CNRMC integrated FTE requirement SURFMEPP / CNRMC 17OCT2014 8 Review model with Fleet / OPNAV at STAR Board F2F SEA 21 / CNRMC 30OCT2014 9 OPNAV validate and load into model OPNAV N43 15NOV2014 10 Conduct Mock Availability Exercise #2 with RMCs CNRMC 16DEC2014 11 Conduct TI Management Training at MARMC SEA21/SEA02 15FEB2015 12 Brief MARMC WFO/ENGINEERING Personnel SEA21/CNRMC 15FEB2015 13 Brief CNSL N43 Staff/Port Engineers SEA21/CNRMC 15FEB2015 14 Conduct TI Management Training at SWRMC SEA21/CNRMC 18MAR2015 15 Brief SWRMC WFO/Engineering Personnel SEA21/SEA02 17MAR2015 16 Brief CNSP N43 Staff/Port Engineers SEA21/SEA02 17MAR2015 17 Conduct TI Management Training at NWRMC SEA21/SEA02 18MAR2015 18 Brief NWRMC WFO/Engineering Personnel SEA21/SEA02 19MAR2015 19 Conduct TI Management Training at NWRMC SEA21/SEA02 19MAR2015

Repeat RMC Information Sessions/TI Management Training in Dec15

Third Party Planning Implementation Plan – POA&M

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# TASK DESCRIPTION RESPONSIBLE DATE 20 Conduct Mock Availability Exercise #3 with RMCs CNRMC 14APR2015 21 Brief MARMC WFO/ENGINEERING Personnel SEA21/CNRMC 25JUN2015

22 Brief CNSL N43 Staff/Port Engineers SEA21/CNRMC 25JUN2015

23 Conduct TI Management Training at MARMC SEA21/CNRMC 18AUG2015

24 Brief SWRMC WFO/Engineering Personnel SEA21/SEA02 14JUL2015 25 Brief CNSP N43 Staff/Port Engineers SEA21/SEA02 14JUL2015 26 Conduct TI Management Training at SWRMC SEA21/SEA02 15JUL2015 27 Brief NWRMC WFO/Engineering Personnel SEA21/SEA02 16JUL2015

28 Brief Port Engineers at FMMS SEA21/SEA02 02SEP201529 Codify LLTM Procurement Process SEA21/CNRMC 30SEP201530 Codify TI Origination/Revision Process SEA21/CNRMC 30SEP201531 Codify TI Funding Process SEA21/CNRMC 30SEP201532 Codify RMC TPOC/GAPM Roles & Responsibilities SEA21/CNRMC 30SEP2015

Repeat RMC Information Sessions/TI Management Training in Dec15

Third Party Planning Implementation Plan – POA&M

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• Conducted onsite implementation briefs in MARMC, SWRMC and NWRMC AORs.

• Issued 31 Technical Instructions to support: planning of CNO availabilities, LLTM procurement and meeting attendance requirements. (22 CRUDES, 9 LPD/LSD)

• 15 CNO TIs for CRUDES & LPD/LSD issued:– 1884 Work Notifications submitted (73% on WIs)– 584 Work Items developed (35% passed to Government Review) Examples:

USS NORMANDY– 258 WNs assigned to QED– 256 WNs being planned on 157 WIs– 125 WIs in Government Review

USS STOCKDALE– 200 WNs assigned to QED– 185 WNs being planned on 74 WIs– 31 WIs in Government Review

Third Party Planning Implementation Successes

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Questions?

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Back Up Slides

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Third Party Planning Performance Incentive Fee

• Accuracy of the work specification– Based on seven objective attributes:

1. Location of work2. Identification 3. References4. Requirements - phraseology5. Chronology6. Tests and Inspections7. Reports

– Utilize the existing JFMM specification review process

– Accuracy is determined on initial Government review of specification

– No “attribute” errors allowed - validated by the RMC Project Manager

– Fee calculated using TOTAL number of work specifications developed

90% accuracy rate required to start earning incentive fee

IAW - JFMM Vol. VII Chap. 4 Append. E

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Third Party Planning Performance Incentive Fee

• Master Specifications Catalog (MSC) Improvement

– Fee based on number of template recommendations submitted

– Changes recommended must result in reduction of RCCs during execution

– Recommendations must be supported by trend analysis from execution of at least two availabilities

– Recommendations affecting multiple ship class standard work templates increases fee earned

– Utilize existing JFMM process for submitting MSC feedback• Submit to RMC Standards Coordinator• Forward to MSCMO and ACOR

Continuously improve and reuse planning products to drive standardization

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Technical Instruction (TI)Purpose

• Specific to the requirements of the Third Party Planning (3PP) Contract

– Must be within the scope of the contract and Performance Work Statement (PWS)

– Does not change the PWS or amend the contractual requirements

• Identifies and provides funding requirements to the 3PP activity

• Used to invoke optional PWS paragraphs to specific needs of the Maintenance Team

– Assessment support required during planning period

– Availability execution support related to Ship Building Specialist (SBS) requirements

» CFR/RCC processing

• Used to clarify milestone or other performance requirements

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Technical Instruction (TI) Requirements

• Base year period of performance (POP) covers 12 months from

date of award

• CG/DDG base year POP: 2/9/2015 to 2/8/2016

• LPD/LSD base year POP: 6/1/2015 to 5/31/2016

• TI POP must fall within contract year POP

• Three main TI requirements

• CNO Availability: By ship, by availability

• CM/EM Availabilities: By port, by class

• Long Lead Time Material (LLTM): By port, by class

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CNO Periods of Performance Example

BULKELEY 2/8/20164/26/2015

CLIN Period of Performance 2/8/20162/9/2015

NORMANDY 2/8/20162/12/2015

NITZE11/1/2015 2/8/2016

2/9 - 2/23/2016

2/9 - 2/8/2017

2/9 - 2/8/2017

2/9 – 10/17/2016

BASE YEAR

CLINS Change

OPTION YEAR 1

CLIN 0001, 0002, etc. CLIN 1100, 2100, etc.

Technical Instructions POP must fall within associated CLIN POP

• Technical Instructions will only cover the planning requirements necessary during the associated CLIN POP

• Multiple Technical Instructions may be required for a specific CNO availability

TIISSUE

TIISSUE

TIISSUE

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Milestones:– JFMM requires update to reflect new contract strategy requirements – Different milestone definitions and intervals across RMCs impacts planning and clear

expectations of the Third Party Planner

3PP Process Standardization across RMCs:– Document , train, and verify to ensure R&Rs are understood

• Performance Incentives – Work Spec FPY/MSC Feedback• LLTM Procurement• TI Origination/Revision• TPOC/GAPM Roles and Responsibilities• TI Annual/IncrementalFunding

3PP Product Standardization across RMCs:• CDRL A001 Work Item IGE content • CDRL A005 Integration Schedule/Turnover Book

Modernization Funding:- Multiple funding lines (10 - 50) per hull to fund each specific alteration creates undue

burden on BFMs/SEA 02 and the contractor for financial tracking/management.

Performance Issues - NMD:– Multiple planning reports not functional (Composite Work Package, Departure Report, etc.)– TI numbering is too generic - tracking multiple availabilities across RMCs problematic– 3PP cannot apply MD rate to work item estimates at availability level – 3PP cannot access CSWT IGE – must develop estimate from scratch (NMD role issue)

Third Party Planning Implementation Challenges