Description
Organization: DRPM Strategic Systems Programs, Strategic Weapons
Team Name: TRIDENT II (D5) Missile/ SWFPAC D5 Acquisition IPT
Related Acquisition Topic(s): Commercial and Non Developmental Items (CANDI), Contract Logistics Support (CLS), Integrated Product Teams (IPT), Knowledge Management, Risk Management
Description:
The United States Navy is in the process of establishing the capability to process Trident II (D5) missiles at its west coast Strategic Weapons Facility, Pacific (SWFPAC) to support Pacific fleet deployment of D5 submarines in 2002. Strategic Systems Programs (SSP) has contracted with Lockheed Martin Space Systems (LMSS) to support this program. Key elements of this activity are the acquisition and installation of support equipment, modification of facilities, acquisition of new and modified ordnance cranes and certification of missile processing capabilities. Aggressive cost and schedule targets for this project have been set due to funding constraints. In order to minimize the risk associated with this critical project, an Integrated Product Team (IPT) was formed to ensure successful completion of the project, on time and at minimum cost. The IPT is cross-functional and fully empowered by SSP and LMSS leadership. It includes Navy employees from SSP headquarters and field activities, SUBASE Bangor WA, the Navy Crane Center and their industry partners at LMSS and Ederer Crane Corporation. The IPT has creatively employed a series of Acquisition Reform (AR) techniques in this effort. Their efforts are an outstanding example of the true spirit and intent of AR.
RISK MANAGEMENT. The IPT created a Risk Management Plan in the early phase of the program. A Risk Management Council (RMC) consisting of key LMSS and Government leaders was formed as a formal method of managing the continuous risk mitigation process. This RMC is chartered to identify risks that could jeopardize program objectives, assess those risks for probability and consequences of occurrence, and define and implement actions to eliminate or reduce the impacts of these risks to the program. The application of knowledge management through Lessons Learned from previous facility activations was a key factor in identifying risks. The Council has on-going responsibilities to identify new risks as they may arise, bring those to the attention of the IPT, and follow all actions to satisfactory closure. The highest risk items were judged to be acquisition of ordnance cranes, and support equipment (including delivery schedule and quality).
ORDNANCE CRANE ACQUISITION. Historically, procurement and installation of ordnance cranes has been high risk from a cost and schedule standpoint. In order to mitigate this risk, a teaming approach with the Navy Crane Center (NCC) and the SUBASE, Bangor WA was established. The NCC and SUBASE are full members of the IPT. A clear definition of crane requirements was established through technical exchanges and industry surveys. SWFPAC was a member of the source evaluation board for the multi-year procurement. A Best Value/Past Performance approach was employed. This win-win effort has resulted in contract award to the Ederer Corporation. Ederer has an excellent cost and performance record in the Pacific Northwest and has become an IPT member.
SUPPORT EQUIPMENT ACQUISITION. The program requires 3000 pieces of support equipment valued at $50M. The IPT aggressively sought support equipment located at other sites that could be made available for relocation to SWFPAC. Of the 3000 pieces of equipment required, approximately 1300 items have been acquired for SWFPAC via this method, resulting in cost savings of approximately $20M. This included an innovative agreement to buyback excess equipment from the United Kingdom at 5 cents on the dollar. Acquisition planning for hardware to be purchased has been executed on a Best-Value/Past Performance basis rather than lowest cost. Prior to contracting with suppliers, extensive research was conducted into the suppliers’ financials and into their past technical, schedule, and cost performance on similar contracts with LMSS as well as with other defense contractors. Metrics were applied to each element in determining suitability for contracting. Hands-on surveys were conducted at the supplier facilities to ensure their capabilities met IPT quality, schedule and technical standards. Based upon this review, a qualified supplier list was established and competitive bids were solicited and evaluated. After contract award the suppliers became active members of the IPT.
SCHEDULE PROTECTION. A procurement plan was generated which identified every step in the process from identification of requirements to equipment delivery. Span times were then established for each element with considerations for workloads, discrepancy resolution, and budgetary constraints. In addition, a delivery tracking system was established to monitor progress from initiation of the procurement document through the on-site delivery of each piece of hardware. This system enabled the IPT to ensure that the hardware moved through the system in accordance with the schedule plan and to identify and resolve problem areas as they develop.
QUALITY REVIEW. First articles from suppliers are sent to special test facilities to ensure design compliance, quality, and adequacy of all functional interfaces. In addition, prior to order placement, inspection characteristics associated with every piece of hardware are reviewed and a mechanism established to ensure that discrepancies identified during initial first article testing were fed back to Product Assurance field representatives to avoid the risk of repetitive failures.
SUMMARY. Progress and status of these initiatives has been tracked through a series of regularly scheduled meetings with the IPT risk management council. The methodology and teamwork employed by the SWFPAC D5 Activation IPT have delivered a program that is on schedule and within budget, at minimum risk to LMSS and the Government. Innovative acquisition strategies (COTS, reuse of assets, knowledge management, risk management, and best-value/past performance) employed by the team have resulted in 10’s of millions of dollars in cost avoidance and significant schedule reductions, and exemplify the spirit and intent of Acquisition Reform.
