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> Home / Archives / Logistics / Performance Based Logistics / Performance Based Logistics / Applying Acquisition Reform to a Fielded System

Applying Acquisition Reform to a Fielded System

Applying Acquisition Reform to a Fielded System

Organization: NAVSEA

Team Name: MK41 Vertical Launching System Acquisition Team

Related Acquisition Topic(s): Acquisition Practices Streamlining, Financial Management, Integrated Digital Environment (IDE), Integrated Product Teams (IPT), Paperless Program Office, Partnering, Performance Based Acquisition, Performance Based Logistics, Performance Specs and Standards

Description:

The MK 41 Vertical Launching System Acquisition Team made many exemplary contributions in 1999. They include commercial technology integration by partnering with industry; total ownership cost reduction/avoidance through contract consolidation, expended canister renewal and computer based training; and acquisition process improvement through integrated product teams, electronic media use and performance based procurement.

Commercial Technology Integration:

Commercial processors, higher order language, software object oriented design techniques and processor networking are being integrated into the VLS Launch Control System to replace 1980's MILSPEC technology to reduce launcher prices and avoid repeated redesigns caused by obsolete electronic components. Transition is being accomplished under existing firm fixed price, build-to-print launcher contract at no cost through innovative program office/contractor cooperation. Cost savings realized as well as contractor funds are being used to fund the non-recurring engineering effort. Although contract is build-to-print, contractor is encouraged to pursue changes that lower cost but continue to maintain performance defined by the system Prime Item Development Specification. Overall launcher production price will be reduced by 7% in its 20th production year, while some major subassembly prices are reduced as much as 40% and at least $6M of obsolete part engineering costs are avoided.

Ownership Cost Reduction/Avoidance:

Expended launcher canisters and available packaging, handling, storage and transportation equipment are provided to the contractor for recycling. The contractor renews several components including the shell structure and uses them in new canisters. Unused components are demilitarized/disposed of at contractor expense. This program reduced canister prices 35%, avoids disposal costs and conserves natural resources. Several hundred renewed canisters were delivered in 1999.

Ownership costs are reduced by continuously increasing system reliability. MTBOMF increased 68% from 1995 to 1999. A 99% missile launch success rate was demonstrated across a 2000 missile (including over 1000 TOMAHAWK missiles launched into enemy territories) firing history. 98% of the fleet's nearly 7000 cells are available for use at all times. Thorough problem investigation, proactive problem resolution, proper sparing, a vigorous design process, consistent production processes and extensive factory acceptance tests are key elements that produce exemplary reliability and availability.

Electronic training media was incorporated in VLS during 1999. A shipboard computer based training course for A-school trained Gunner's Mates (GM) was generated and promulgated. The course, administered by the ship's VLS Chief GM, allows a ship to augment its VLS technician force with new GMs who can work under fully trained VLS technician supervision, thus overcoming manning shortfalls and improving the sailor's quality of life. An interactive media instruction GM C-school course is being created that negates the need to procure and install new launcher equipment at training sites, thus avoiding a $3M cost. Course length will be reduced 25% and students will be better trained. The paper Technical Manual was converted to an Interactive Electronic Technical Manual. The annual $100K paper TM production cost was reduced to $5K.

Acquisition Process Improvement:

An integrated product team consisting of program office staff, contracting officer, contractor personnel and field activity personnel established a new multi-year, level of effort contract for launcher engineering. The team rapidly and successfully integrated requirements into line item definitions, work-year allocations, statements of work, data lists and tailored special clauses. This coordinated effort resulted in efficient contractor proposal preparation and contract price negotiation. All unclassified data generated under the new contract will be posted on a controlled access contractor web page available to all program personnel. All data deliverables will be posted, one time, to a controlled access Navy web page.

Launcher canister procurement was successfully converted from a mature build-to-print basis to a performance and interface specification basis. The contractor became responsible for all configuration changes that do not degrade performance or critical interfaces allowing reduced government configuration management oversight. Performance based contract deliveries commenced this year and all products were delivered on time while performing to specification.

The launcher depot contract was merged with a much larger level of effort engineering contract to reduce program office and contractor management and administrative burdens as well as depot overhead costs. Contract consolidation was completed this year. Depot cost avoidance is expected to be reduced at least 25%.

A fleet launcher, for the first time, experienced a full duration TOMAHAWK booster motor burn after the missile failed to launch during the Kosovo operation. Launcher survivability features worked exactly as designed during this stressful environment and the ship continued its TOMAHAWK Missile firing mission after a few minutes interruption. The incident root cause was identified. Steps have already been taken to prevent re-occurrence. An IPT was established and led by the program office to coordinate the effected launcher module repair. A firm fixed price repair contract was quickly established with the launcher prime contractor and funded by the Type Commander. A 30-day turn around time to remove, repair and re-install the launcher module was required. Close cooperation among the program office, field activity, contractor, Type Commander and ship personnel allowed this task to be accomplished ahead of schedule despite two hurricane induced delays. This intense effort avoided an overhaul cost increase and rapidly returned a ship to full fighting capability.

Summary

The VLS Program is exceptionally well managed, with results-oriented performance based on technical and business management excellence. VLS acquisition innovations initiated or completed during 1999 have and will continue to result in substantial cost, schedule and performance benefits.

NAVSEA

MK41 Vertical Launching System Acquisition Team



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Deputy Assistant Secretary of the Navy for Acquisition Management, DASN (ACQ)
Director, Acquisition Career Management
Deputy Assistant Secretary of the Navy for Logistics, DASN (LOG)


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