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> Home / Acquisition Topics / Business, Cost Estimating and Financial Management / Financial Management / Financial Management / Performance Based Maintenance Contract for the MK 105 Mod 2 Minesweeping Sled

Performance Based Maintenance Contract for the MK 105 Mod 2 Minesweeping Sled

Performance Based Maintenance Contract for the MK 105 Mod 2 Minesweeping Sled

Organization: NAVSEA, PEO (MIW)

Team Name: Airborne Mine Countermeasures (AMCM) System Outsourcing Team

Related Acquisition Topic(s): Financial Management, Performance Based Acquisition, Strategic Sourcing

Description:

In the era of zero baseline budgets, the AMCM Outsourcing Management Team of the MK 105 Mod 2 weapon systems have originated and implemented a unique Pilot Program to maintain Airborne Mine Countermeasures (AMCM) weapon systems in a cost effective environment, while increasing System Readiness and material condition. This Performance Based contracted maintenance outsourcing on the MK 105 Minesweeping sled, an influence airborne system towed by the MH 53E Helicopter is currently one of the ten Navy programs selected by the Department of Defense (DoD) for the DoD Pilot Program alternatives evaluation.

The Outsourcing Management Team philosophy was to have the MK 105-influence system available to the user when required in a manner that was transparent to the user in a condition that would provide better reliability and increased endurance. The approach to this plan included area personnel skill surveys, facility surveys, and geographical location considerations. After ascertaining the skills, facilities and operational areas were available at a cost more reasonable than current military support costs, the Outsourcing Team launched a study group to estimate the cost totals off of reduction in costs. The study concluded using a military costing program (COMET) showed that manpower could be obtained from the aviation sector at about one half the cost. Almost all of the programmatic costs were lower; such as tools, support equipment, and facilities. With this background, The Program Manager instructed his contracting specialists to pursue a Performance Based contract to outsource the MK 105 Organizational and Intermediate maintenance. DynCorp of Norco, California was selected to perform the initial pilot effort with a follow-on plan to be competed.

A six-month ramp-up period was successfully completed without flaws and an actual MK 105 deployment planned to test the philosophy and soundness of the concept. Helicopter Mine Countermeasures Fifteen (HM-15) arrived at Coastal Systems Station (CSS), Panama City, Florida with their Helicopters and aircrew personnel to accomplish the detachment plan (Goal) of flying thirty eight (38) MK 105 missions. This detachment was smaller and less costly due to the fact they did not have to organize and transport the MK 105 sleds, support equipment and maintenance personnel. The end product was the squadron flew thirty six (36) of the planned missions successfully ( 95 %) with the contractor provided MK 105 systems. The two aborted missions were aircraft related and were not the fault of the outsourcing contractor. This creative approach to providing the "All Up Around" to the AMCM squadron was accomplished in the face of adversity.

The vision to provide this type of unheard of operational scenario was viewed as impossible by many and certainly was in an atmosphere of resistance to change. Today the vision that the Outsourcing Management Team had is alive and with one successful deployment under its belt remains in the DoD Pilot Program list of one of ten Navy programs. This effort is a credit to the Navy as well as releasing those war fighters to future conflicts.

NAVSEA, PEO (MIW)

Airborne Mine Countermeasures (AMCM) System Outsourcing Team



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Deputy Assistant Secretary of the Navy for Acquisition Management, DASN (ACQ)
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