Ed Williams, PMP Director of Post Delivery Support

1. Project Management in the Shipbuilding Industry Ed Williams, PMPDirector of Post Delivery Support

2. Agenda • Austal USA History • The Beginning • Austal Today • Expansion • Contracts • LCS • JHSV • Program Management Processes & Tools • Initiating • Planning • Executing • Monitoring and Controlling • Closing Nee

3. Austal USA - The Beginning 1998 2004 Land total- 10 acres Manufacturing Space- 45,000 sqft

4. Austal USA - The Beginning 2007 Land total- 11 acres Manufacturing Space- 153,000 sq ft 2010 Land total- 115 acres Manufacturing Space- 503,000 sq ft

5. AustalUSA - Today Land total- 164 acres Manufacturing Space- 962,000 sq ft

6. Expansion - Vessel Completion Yard

7. Joint High Speed Vessel (JHSV)

8. Littoral Combat Ship (LCS)

9. Shipbuilding at AUSA • Portfolio • Government Contracts • Program • JHSV • LCS • Post Delivery • Projects • Individual hulls • JHSV 1-10 • LCS 2,4,6-24 • IPDA, PSAs and IDIQ contracts

10. Initiating • Identify Key Stakeholders • ASN, CNO, Warfighter • Competitive Bids • Contract Negotiation • Ship Construction contracts • Firm Fixed Price • Block Buy

11. Planning • Determine Scope • Create WBS • Estimate Costs • Estimate Durations • Develop Schedule • Primavera P6 • Logic Links • LLTM • Milestones

12. Planning

13. Planning

14. Executing • Conduct Procurements • GFI • Major Subcontractor • GDAIS Mission Systems • Execute Work Packages • Fabrication, Machinery, Electrical, Pipe, Fitout • Distribute Information • SPPC- Ship’s Production Performance Conference

15. Executing-Modular Manufacturing

16. Monitoring & Controlling • Earned Value Management • CPRs required on DoD contracts >$20M • Quality Control • ABS Survey Requirements • Accuracy Control • i.e. Module erection • Change Control • CCB held in Washington, D.C.

17. Monitoring & Controlling

18. Monitoring & Controlling

19. Monitoring & Controlling

20. Closing • Vessel Delivery • Builder’s Trials • Acceptance Trials • Crew Familiarization • Deliver to Navy • DD-250 • Warranty • Contract End

21. Backup

22. Austal’s Global Presence Ideally positioned to support vessels in critical areas of WESTPAC, Indian Ocean and Mediterranean. • Shipyards in Henderson, Western Australia, Mobile, Alabama and Balamban, Philippines

24. Austal USA- The Beginning 1998 2004 Land total- 10 acres Manufacturing Space- 45,000 sq ft

25. Austal USA- Expansion Phase 1 2007 Land total- 11 acres Manufacturing Space- 153,000 sq ft 2009 Land total- 115 acres Manufacturing Space- 503,000 sq ft

26. Austal USA- Vessel Deliveries 2003 2004 2002 Austal USA Building Construction - 2000 “Anapaula” & “Veronica” 2 x 45 meter Crew/Supply Boat Delivered - 2002 “Biscayne Lady” 34 meter Dinner Cruise Catamaran Delivered - 2003 “Cloud Nine” 41 meter Dinner Cruise Yacht Delivered - 2003 “Zephyr” 44 meter Passenger Catamaran Delivered - 2003 HSV

27. Austal USA- Vessel Deliveries 2009 2006 2008 2004 “Patriot” 26 meter Passenger catamaran Delivered - 2003 HSV “Lake Express” 58 meter Vehicle-Passenger Catamaran Delivered - 2004 HSV 107 meter “Alakai” Vehicle-Passenger Catamaran Delivered - 2007 113 meter “Huakai” Vehicle-Passenger Catamaran Delivered - 2009 HSV HSV “Independence” 127 meter Littoral Combat Ship Launched – 2008 Delivered- 2009 LCS

28. Austal USA- Vessel Deliveries USNS Spearhead Delivered Dec 2012 First Navy Vessel Delivered As Prime Contractor!

29. Bay Class Patrol Boats 1999: 1st of 8 delivered to Australian Customs Armidale Class Patrol Boat 2005: 1st of 14 delivered to Royal Australian Navy Police Patrol Boats 2006: 1st of 6 for New South Wales Water Police TTCG Patrol Boats 2009: 1st of 6 for Trinidad and Tobago Coast Guard Hawaii Superferries 2012: Austal commences conversion for US Navy 248 Vessels Delivered or in Construction Since 1988 Defense AFM Patrol Boats 2009: 1st defence deliveries to Europe Yemen MOD Patrol Boats 2005: 1st of 10 delivered to Yemen Ministry of Defence Police Patrol Boats 2000: 1st of 9 delivered to New South Wales Water Police PCU Independence 2009: 1st CS christened USNS JHSV Class 2012: 1st of 10 christened Cape Class Patrol Boat 2012: Keel laying for 1st of 8 for Australian Customs Police Patrol Boats 2009: 1st of 3 delivered to Queensland Police Service USS Independence2010: 1st LCS commissioned WestPac Express 2001: 1st delivery to US military Kuwait Coast Guard 2006: 4 x 22m patrol boats 1988 1992 1996 2000 2004 2008 2012 Wind Express Trimaran 2012: Production begins at Philippines Shipyard Spoilsport 1989: 1stof 60 deliveries to Australia Ono-ono 1994: 1stof 5 deliveries to French Polynesia Cat-Link III 1996: 1st vehicle-passenger ferry Carmen Ernestina 1999: 1st delivery to South America Fares al Salam 2002: 1stdelivery to Middle East Benchijigua Express 2005: 1st Trimaran delivery Shinas 2008: World's fastest vehicle ferry to Oman (56kts) Commercial NIDCO 2010: Four 41m water Taxis to Trinidad Aksemseddin 1995: 1st of 10 delivery to Turkey Jade Express 1998: 1st delivery to the Caribbean Villum Clausen 2000: World 24 hour distance record CotaiJet 2007: 1st of 14 delivered to Macau Kurnai Tide 1990: 1st Work boat, 1st Monohull Anapaula 2002: 1st Austal USA delivery Wind Express 2012: 1st Wind Farm boat delivery Tong Zhou 1990: First of 52 deliveries to China, Hong Kong and Macau Speeder 1995: 1st delivery to Japan Flying Dolphin 2000 1998: 1st of 5 deliveries to Greece Euroferrys Pacifica 2001: 101 meter; 1st delivery to Spain Spirit of Ontario 1 2004: 1st Delivery to Great Lakes Alakai 2007: 1st of 2 Hawaii Superferries Leonora Christina 2011: Austal’s largest catamaran (113m) Aremiti Ferry 2 2012: Work begins on 82m medium-speed ferry