Description
Organization: NAVSEA, SUPSHIPS
Team Name: Contract Dept. (Flexibility in Contracting Team)
Related Acquisition Topic(s): Acquisition Practices Streamlining, Commercial Practices, Cycle Time Reduction (CTR), Financial Management, Integrated Product Teams (IPT), Partnering
Description:
This team has looked at various repair services that the Navy accomplishes on their vessels and is instituting contracts to eliminate the middleman that adds no value to the process. The team is still working a number of contracts that are in various states of solicitation. This initiative/process is being called flexibility in contracting. To date there have been five contracts awarded in the Norfolk area in support of the local customers and their continuous maintenance philosophy. In addition to these five contracts there have also been similar contracts awarded by this team in support of Navy ships in Colts Neck N.J. and Ingleside Texas. Of the five contracts awarded in the Norfolk area only two have been in place long enough to extract any significant data (CHT Systems Chemically Clean & Ship Repair HM&E). This team is presently working on a second generation Ship Repair HM&E contract that will provide those services normally contracted for through a subcontractor effort. The requirements are being placed into a multi CLIN contract that is to have multiple awards in multiple locations.
Chemical Holding, Transfer System CHT (Ships Sewage System) Indefinite Delivery Indefinite Quantity Contract
One of our primary customers was having CHT systems on ships cleaned using a time and material contract. The results of this was a sole source contracting arrangement from the prime contractor to the subcontractor. This process was in effect for approximately three years. During that period approximately ninety-eight ship's systems were cleaned.
SUPSHIP Portsmouth personnel, both technical and contractual, examined the process and did market surveys. The team looked at the technical requirements put them into a generic requirement which made it possible to interject competition into this process. Based on this it was initially determined that there were at least two companies that could satisfy the needs of the navy. Because of the work being turned over to supship competition was instituted into the process. It must be noted that this type of contracting is not normally done by a supship. SUPSHIPS in the past have been limited to accomplishing job order contracting under a NAVSEA Master Ship Repair Contract.
On october first an IDIQ contract was awarded for chemical cleaning of cht systems. Since award of the idiq the uscg has used this contract on the east coast to clean these systems on over thirty of their vessels. One hundred and fourteen navy ships have had their systems cleaned using this contract. To date the cost savings since 10/1/98 has been $11,245,447. Since the start of fiscal year 2000 the navy has used this contract in japan where there are presently five ships that are having their systems cleaned using this contract.
This IDIQ type contract was awarded using best value/past performance evaluation criteria. Projected savings over the previous contracting methodology employed was estimated to be between $2,500,000 to $3,000,000 per year. These projections were grosly under estimated and the projected savings over the term of this contract is now about $30,000,000. This contract is a base year with four option years. What this group has done that makes them truly outstanding:
Hull Mechanical & Electrical (HM&E) indefinite delivery indefinite quantity contract
This contract was developed and put into place primarily to support the norfolk naval shipyard (nnsy). NNSY needs support to level load their work efforts due to manpower reductions and spikes in workload levels. Meetings with the shipyard revealed the need for a general ship repair contract that would cover all types of journeyman efforts related to ship repair. The team reviewed the shipyard requirements and drafted a statement of work that would allow for any type of support needed on almost an immediate basis and with still keeping competition in the process. This contract was put in place using best value contracting stratigies. The award was made to multiple contractors which affords surge capabilities in addition to keeping the process in the competative arena. Historacal data indicates since the contract has been put in place a rise in support from this command to the nnsy. Nnsy farm out. Fy 98 first full year of idiq support of nnsy Fy 96- 10,074,000 fy 97- 11,274,000 fy 98- 28,134,000 fy 99 30,000,000 plus
As an added side benefit this contracting vehicle has helped reduce the number and cost of accomplishing emergency emergent repairs on navy ships. Historically emergency work was turned on to private contractors under a provision in the master ship repair contract as sole source awards. Historical data on sole source awards (idiq for hm&e awarded 4/6/98) Fy 96- 36 awards 1.4 million fy 97- 42 awards 3 million fy 98- 26 awards 1.1 million (before idiq award) after 6 awards 595,012, fy 99- 13 awards $432,500 The statics indicate a reduction in number and dollar value of sole source awards. In fiscal year 99 this contracting vehicle has saved over $130,000 on sole source awards. Since this contract has been put in place military sealift command has issued taskings totalling $2,176,263. MSC likes this contracting vehicle so much that the team is putting a contract in place for them to support their rapid response vessels.
Summary
This team is contiously looking at the customer's requirements and seeking alternate contracting vehicles and stratigies to support the changing needs and dwindling budgets alloted for ship repair.
Supship portsmouth was presented a hammer award for the cht contract by Admiral Jenkins on 6 January 1999. These contracts are drawing customers from other dod agencies as well as from the dept. Of transportation. Therfore reducing redundancy in contracting.
To date SUPSHIP Portsmouth has awarded contracts similar to those noted above in support of SURFLANT in other geographical areas. HM&E contracts in Ingleside Texas and Colts Neck N.J. Diesel Engine repair for those areas as well. Awarded an IDIQ contract for placement of a dry-dock in Mayport Florida that contains line items for all types of dry-dock related work. Other contracts are in the solicitation stages for additional support of the Navy and MSC ships in Colts Neck N.J.
