DDG FDNF Rota Market Research CDR Joe Saegert Officer-In-Charge NSSA RMC Detachment Naples

1. DDG FDNF Rota Market Research CDR Joe Saegert Officer-In-Charge NSSA RMC Detachment Naples

2. Background Forward Deployed Naval Force (FDNF) in Rota, Spain • Comprised of four (4) DDG-51 class guided missile destroyers • Two destroyers will arrive in FY 2014, two in FY 2015 • Require maintenance and repair to sustain operations Maintenance Concept • Each Ship expected to conduct a CNO scheduled availability every 14 Months • Approximately 90 day Depot Level Repair Availability • Only one ship in Depot Repair Availability at a time • Approximately 10,000 man-day effort • Each ship will have a maintenance period between CNO availabilities • Continuous Maintenance Availability (CMAV) • Approximately 3 Weeks • Approximately 3500 man-days • Unplanned periods of emergent repair are expected

3. Technical Requirements • Ship Repair Capability Requirements • NAVSEA Standard Items • Management and Reporting • Quality Management of Work • Work Certification

4. Contractor Capability • Capable of performing a significant portion of the work package on Selected Restricted Availabilities (SRAs) • Utilizing own shops and workforce • Must be capable of subcontracting those elements beyond their managerial, technical, or physical capability or capacity • Capable of assuming full responsibility for the integration, scheduling, cost and quality of subcontractor performance

5. Contractor Capability Must possess capability of following: • Planning • Engineering • Material Procurement / Management • Quality control • Shipboard/off ship production • Component/System Testing • Dock/Sea Trials

6. Contractor Capability (Administration/Management Control) • Established organization • Geared toward ship repair at all levels of size, value, and complexity • Focus on technology innovation and process improvement • Clear lines of authority • Delegation of responsibility • Mid-Level managerial positions in place • Competent & experienced employees with ship repair experience

7. Contractor Capability (Administration/Management Control) • Capability to develop and integrate • Planning • Estimating • Scheduling • Defined Managerial responsibilities for • Production • Engineering • Quality Assurance • Material Procurement/control • Subcontractor control

8. Contractor Capability (Financial Management) • Segregation of Costs • Adequate Accounting System • Favorable cash flow-ratios / Financial Solvency • Prompt payment of subcontractors and suppliers

9. Contractor Capability (Production Control) • Production organization defined • Possess (or the ability to obtain) trade mix/skills to perform ship repair work • Control of production efforts • Integration of other key functions with production • Use of scheduling techniques • Methods of progressing • Training available to trade employees

10. Contractor Capability (Production Technical Support) • Engineering and design support capabilities (in house or subcontracted) • Sufficient capability to diagnose and evaluate technical problems and issues • Sufficient capability to make competent technical recommendations to Navy when necessary and appropriate

11. Contractor Capability (Material Procurement and Control) • Material Purchasing Department with staff • Procedures for control of material • Purchasing • Monitoring • Receipt • Inspection • Segregation • Issuance • Nonconformance • Disposal

12. Contractor Capability (Material Procurement and Control) • Inventory System • Ordering • Tagging • Warehousing • Contractor Furnished Material/Government Furnished Material (CFM/GFM) • Storage • Control • Protection • Existing Environmentally controlled Warehouse • Material Handling Equipment • Familiarity with, and use of, the Navy Logistics Support System

13. Contractor Capability (Subcontractor control) Procedures for: • Selecting • Scheduling • Managing • Monitoring • Controlling Subcontractors

14. Contractor Capability (Quality Control/Test and Trials) • A Quality control organization/Department/Staff • Quality Assurance Procedures/Manual • Calibration and Metrology System Availability • Test Memo Writing Capability • Nondestructive Testing Capabilities • Welding Procedures and Welders’ Qualifications • Coating Systems Application • Ability to perform Trend Analysis • Potential to meet ISO 9000 series standards

15. Contractor Capability (Safety/Security) • Safety Organization/Manager or Engineer • Safety Manual/Procedures • Safety Training • First Aid Capabilities or Medical Services • Fire Protection/Procedures • Physical Yard Security • Security Procedures

16. Contractor Capability (Facilities) • Structural Shop: Steel/Aluminum Fabrication • Machine Shop: Pump, Valve, Hydraulics, Compressors • Pipe Shop: Prefabrication, Bending, Joining • Electrical/Electronics shop: Motor, Generator, 2M Repair • Carpentry Shop: Shipping Crates, Protective Containers • Rigging Equipment: Mobile Cranes and Forklifts

17. Contractor Capability (Examples of Ability to Accomplish Work) • Ship-fitting: Tank repair and testing intakes/uptakes • Sheet metal work: Habitability, ventilation, storage • Welding: Steel, Aluminum and Pipe joints • Pipe fitting: Targeting, Prefab, in place repair, Heat Exchangers • Machinist/Mechanical (Shop and Marine): Pump and valve Repair, Gas Turbines, Controllable Pitch Propeller • Electrical: 460 3 Phase motor rewind up to 300 HP • Electronics: Remove, repair, and test electronic equipment • Woodworking • Rigging/Mobile Cranes • Coating: High Solids/Flame Spray/Non-Skid

18. Contractor Capability Examples • Critical Coated Area Preservation • Non-Skid Application (touch-up) • Woodworking (small areas) • Condenser Scoop Valves • Lube Oil Flush and Piping Repair • Propulsion Shafting • Anchor Chain Preservation • 201 HP and greater Motor Repair • Valve Repair • Pump Repair • Welding • CHT/Gray Water System Repair • Scaffolding • Potable Water Inspection • Crane Load Testing • Boat Davit Load Testing • Radar Antenna Replacement – High Reach • Flight Deck Tie-down Testing • Boat Engine Repair • Fuel Oil Injection Nozzle Calibration • Quarry Tile Installation

19. Questions?

20. The Standard Work Item (Communicating Work Requirements) • An individual set of work requirements written in a standard format to accomplish a specific alteration or repair. • The work item is contractually binding • Normally describes ‘what’ rather than ‘how’ to do • Specification packages for availabilities are comprised of multiple individual work items

21. Standard Items • Technically and Contractually sound standards for the Navy’s ship repair and alteration community • Reduce redundancy, increase proficiency, and provide a centralized database of technical and contractual requirements • Provide safety / environmental standards for the Navy’s ship repair and alteration community http://www.navsea.navy.mil/CNRMC/SERMC/SSRAC1/standard.aspx

22. Standard Items(Categories) • Category I: Invoked in the Request for Proposal (RFP) • Apply to entire Contract without further reference in Individual Work Item • Examples: 009-04 Quality Management System Requirements 009-07 Confined Space Entry, Certification, Fire Prevention and Housekeeping; accomplish 009-09 Production Control procedures, (PCPs) provide and accomplish 009-20 Government Property; control 009-23 Interferences; remove and install 009-60 Schedule and Associated Reports for Availabilities Over 9 Weeks in Duration; provide and manage 009-77 Cofferdam Requirements; accomplish • Total of 57 Category I Standard items • Category II: When applicable • Shall be invoked in the individual Work Item • Examples: 009-12 Welding, Fabrication, and Inspection Requirements; accomplish 009-32 Cleaning & Painting Requirements; Accomplish 009-57 Reduction Gear Security Requirements; accomplish 009-71 Testing Requirements for Piping Systems; accomplish • Total of 56 Category II Standard Items

23. Management and Reports • Prepare and provide an integrated schedule • Work Items • Resources/Activities • Test Plan • Key Events • Critical Path • Manpower Loading • Participate in production and progress meetings • NSI 009-01, 009-60, 009-111

24. Quality Management • Quality Management System (QMS) • Described in NSI 009-04 • Compliance with ISO-9001 standards • Additional documented processes • Management Responsibilities • Customer Related Processes • Purchasing • Production and Service Provision • Monitoring and Measurement of Product • The Navy will monitor the effectiveness of the contractor’s Quality system The contractor is responsible for controlling product quality, offering for acceptance only those products and services that conform to contract specifications, with supporting evidence.

25. Process Control • A Process Control Procedure will be required to support work execution for some items • Format specified by NSI 009-09 • Oversight/protective measures in place to ensure quality management of work and procedures • Developed by the contractor and submitted for approval

26. Enhanced Quality Control (Critical Systems) • Applies to critical systems • Formal review of work process prior to starting work • Additional notifications made: • Prior to starting work • Upon completion of work • Completion of At-Sea Testing Goal is the ability to certify work is complete

27. DDG-51 Critical Systems • MRG & MRG Lube Oil Systems • MRG Couplings/Clutches • Propulsion Shafting & Shaft Bearing Systems • Main Propulsion Turbine Lube Oil Systems • Main Propulsion Fuel Oil Systems • Ship’s Service Generator Fuel Oil Systems

28. Work Certification • Achieve technical rigor and discipline in the planning and execution of maintenance avails • Implement standard process for management of work • Ensure work accomplished IAW correct technical specifications • Ensure work complete and supported by OQE Certify that work is technically correct and completed per applicable specification

29. Work Certification Elements • Production Schedule • Task Start and Completion Dates • Technical Ties between tasks • Key Event linkage • Integrated Test Plan • Test element Start and Completion Dates • Technical Ties between test elements • Key Event linkage • Includes testing of all work accomplished during availability • Test and Inspection Plan • Work Item Specified Required Reports • Contractor Furnished Reports • Request for Contract Change (RCC) • Work authorization form (WAF)

30. Certification Process Work Complete and Certified Event Readiness List Certification Sheets CFR/RCC Reviews Integrated Testing Approved DFS Objective Quality Evidence (OQE) Test Document Review NAVSEA Standard Items Required Reports Work Item Reviews

31. Key Events • Propulsion Plant – Production Complete • AEGIS Light Off (ALO) – Production Complete • Dock trials (DT) • Fast cruise (FC) • Sea trials (ST) • Availability Completion (AC)

32. Questions?

33. BACKUPS

34. Key Event Definitions • UNDOCKING (If applicable): Key Event to document that the ship is ready in all aspects for Undocking. The NSA must certify all related work and testing is completed prior to commencing the ship’s Undocking, with any exceptions noted and approved by the appropriate technical authority and agreed to in writing by the Ship’s CO, Project Manager, TYCOM, and the NSA. • Production Completion Date (PCD): Key Event to document all production work supporting Propulsion Plant testing is complete. The NSA is responsible for thorough and rigorous management of this Key Event and minimizing exceptions. PCD is set to provide the Propulsion Plant and Main Machinery spaces sufficient time to allow the crew to shift from a maintenance environment back to operations and to train in preparation for Light-Off Assessment (LOA). The NSA must certify all related work and testing is completed for Propulsion Plant PCD, with any exceptions noted and approved by the appropriate technical authority and agreed to in writing by the Ship’s CO, Project Manager, TYCOM, and the NSA.

35. Key Event Definitions • Combat Systems PCD (ALO for AEGIS Ships): Key Event to document all production work supporting Combat Systems testing is complete. The NSA is responsible for thorough and rigorous management of this Key Event and keeping any exceptions to a minimum. PCD is set to provide the spaces sufficient time to allow the crew to shift from a maintenance environment back to operations and to train in preparation for required Readiness Assessments and Certifications. The NSA must certify all related work and testing is completed for Combat Systems PCD, with any exceptions noted and approved by the appropriate technical authority and agreed to in writing by the Ship’s CO, Project Manager, TYCOM, and the NSA.

36. Key Event Definitions • Dock Trials (DT): Key Event ship trial conducted during an industrial activity Availability to determine the ability of a ships readiness for sea and capability to safely conduct Sea Trials. The NSA is responsible for conducting integrated dockside system testing, with special sea and anchor detail and general quarters manning to ensure system readiness for sea. The NSA must certify all required work and testing is completed prior to commencing Dock Trials, with any exceptions noted and approved by the appropriate technical authority and agreed to in writing by the Ship’s CO, Project Manager, TYCOM, and the NSA.

37. Key Event Definitions • Fast Cruise (FC): Key Event ship trial conducted immediately prior to underway trials during which Ship’s Force operates the ship for dockside training. The primary purpose of the Fast Cruise is to determine and certify the state of training of Ship’s Company as adequate to conduct at-sea operations. The Ship’s CO is responsible for conducting Fast Cruise, the final event prior to Sea Trials where the ship assumes an “at-sea” posture to exercise all equipment and systems to the maximum extent possible. The NSA must certify all required work and testing is completed prior to commencing Fast Cruise, with any exceptions noted and approved by the appropriate technical authority and agreed to in writing by the Ship’s CO, Project Manager, TYCOM, and the NSA. Commencement of Fast Cruise requires TYCOM permission.

38. Key Event Definitions • Sea Trials (ST): Key Event that constitutes the final determination of a ship’s material readiness and ability to rejoin the Fleet as a fully operational unit. The Ship’s CO is responsible for conducting Sea Trials IAW an agenda developed by the NSA, concurred on by the Ship’s CO, and approved by the ISIC. The NSA must certify all required work and testing is completed prior to commencing Sea Trials, with any exceptions noted and approved by the appropriate technical authority and agreed to in writing by the Ship’s CO, Project Manager, TYCOM, and the NSA. Commencement of Sea Trials requires TYCOM permission. The NSA must certify to the TYCOM that all work and testing is complete and readiness to start Sea Trials (with exceptions noted) via the Readiness for Sea Trials message. Completion of Sea Trials requires a formal report from the Ship’s CO to the TYCOM via the ISIC.

39. Key Event Definitions • Availability Completion: Key Event to document the Availability Completion. The NSA must certify all work and testing is complete, OQE is completely reviewed and is on file, and all work has been properly certified to report Availability Completion, with any exceptions noted and approved by the appropriate technical authority and agreed to in writing by the Ship’s CO, Project Manager, TYCOM, and the NSA. The NSA shall report Availability completion to the TYCOM via message upon the satisfactory completion of Sea Trials, and the correction or resolution of mandatory deficiencies.

40. Acronym List AC: Availability Completion AIT: Alteration Installation Team ALO: Aegis Light Off AWC: Availability Work Certification AWP: Availability Work Package C/S: Combat System CAQAP: Contract Administration Quality Assurance Program CFM: Contractor Furnished Material CFR: Condition Found Report CHENG: Chief Engineer CWP: Controlled Work Package DT: Dock Trials EPCP: Expanded Process Control Procedure ERL: Event Readiness List FC: Fast cruise GFM: Government Furnished Material IAW: In Accordance With ITP: Integrated Test Plan JFMM: Joint Fleet Maintenance Manual KE: Key Events LMA: Lead Maintenance Activity MS: Milestone(s) NSA: Naval Supervisory Activity NSI: NAVSEA Standard Items NSSA: Norfolk Ship Support Activity OQE: Objective Quality Evidence OSIC: On Site Installation Coordinators PCD: Production Completion Date PP-PCD: Propulsion Plant- Production Completion Date QA: Quality Assurance QMP: Quality Management Plan QMS: Quality Management System RCC: Request for Contract Change RFP: Request for Proposal RMC: Regional Maintenance Center RTS: Readiness to Start (Reviews) SI: Standard Item(s) SRA: Selected Restricted Availabilities SSRAC: Standard Specification for Ship Repair and Alteration Program ST: Sea Trials TWH: Technical Warrant Holder WAF: Work Authorization Form

41. Directives • USFFCNOTE 9080, 10MAY11 • Require NSA certify Availabilities • Provides minimum Key Event Management requirement • CNRMC ltr ser C211/091 18JUL11 • Provides Availability Certification Requirements and Procedures • Key Event Readiness Requirements & Procedures • Availability Quality Management Plan Requirements/Methodology • NAVSEAINST 5400.108A, 16AUG11 • Establish Policy for Quality Management of work on non-nuclear surface ship critical systems • Specify Critical Systems • Requirement for CWP/EPCP

42. Work and Test Certification Framework Work Brokering Work Item Technical Adequacy Have all availability work items been properly brokered (MSR, FMR/NNSY, AIT, NSWC, NSSA, other?) Have all work and test items been technically reviewed and “Correctly Technically Tied“ to CNO Certifiable Key Events? Work Completion* New Work Have all work items been completed IAW applicable requirements and specifications, and documented in the Event Readiness List? Have all new work items (Condition Found Reports {CFR}) been received, technically reviewed , correctly tied to CNO Key Events, and adjudicated? * Supports Incremental Progressing Testing Waivers and Deviations Has all Integrated Test Plan (ITP) testing been satisfactorily completed and WAFs closed to Support Certifiable Key Events? Have all non-conformances been properly adjudicated? Final Certification Quality Assurance Are all Quality Assurance deficiencies completed or if outstanding, are corrective actions at a level to support each CNO Certifiable KE/MS, including Availability Completion (AC) ? At end of Availability, are all work and test items complete? Have all TSRA II systems been assessed (If applicable)?

43. Event Readiness List • Certifiable Data !! ERL Example

44. ERL Data Flow Certifiable Key Events PCD Sked ALO TIP/RR CMA Master Event Readiness List Dashboard CFR FC/DT/ ST RCC CA WAF Other ITP

45. Master Event Readiness List • Master ERL • All Certifiable Data !! • Imports information from each database housing certification data elements. • Constantly updated to ensure database maintained current • Integrates by Item and Milestone • Output can be sorted as required. • By Item • By Milestone • By Cognizant activity • Capable of exporting data • Drop down Fields for • -- Job • -- Tests • -- Required reports • -- Milestones • -- And more

46. Master Event Readiness List • Tracks ALL tests, required reports and production status to milestones • Management of exceptions • Overall status snap shots • Provides capability to deconflict production and test schedules/requirements • All work tracking and integration (GFI includes FMA work, S/F work and AIT work production and test schedules) • MSR certification compliance tracking • Drill downs and data call (i.e. what are the current rejected QA checks? (Answered in less than 5 minutes) • Help shape agendas for: • integrated test group meetings • Production control meetings • 25, 50, 75% conference briefs • Support generation of Key Event Metrics

47. Work and Test Certification Key Points • Test and Certification looks at “ALL” work performed during the entire Avail Period. MSR, S/F, AIT, NSSA, NSWC, etc. • Weekly work and test status updates critically important to ensure accuracy of project production work schedule, Integrated Test Plan and Master Event Readiness List • “Other” organization involvement in development of Integrated Test plan required • WORK COMPLETION = Physical Work Complete + Testing Complete + Documentation Submitted and Reviewed • Work items not tracked has potential to impact key events. • Certification signatures and required memos are separate from TYCOM required reports. • All work identified for accomplishment during the availability “Locked In” • - Rescheduling outside of availability will be documented as exception • Expect Exceptions. Ensure impacts and ECDs are accurate.

48. Key Event Certification Sheet Accountability Requirements * Memos may be required if exceptions to certification requirements exist