MARAD_VAM_RFI_Industry_Day_May_9_2019.pdf

Sealift Recapitalization Industry Day for

Vessel Acquisition Manager (VAM)

U.S. Department of Transportation Maritime Administration

May 9, 2019

Administration

• Registration/Sign-in

• Fire Exits

• Restrooms

• Comments/Questions

• One-on-one sessions

• Submit with RFI

Presenter Presentation Notes Registration and Sign-in�Lunch Bath Rooms Schedule Comment Box

Agenda

0900-0920 Mr. Tokarski’s Opening Remarks

0920-1000 Overview: Used Sealift Acquisition

1000-1200 Open Discussion/Q&As

1300-1600 One-on-One sessions, if needed

Presenter Presentation Notes Registration and Sign-in�Lunch Bath Rooms Schedule Comment Box

Ready Reserve Fleet Vessel Recap Vessel Acquisition Manager (VAM)

Opening Remarks:

Kevin M. Tokarski Associate Administrator for Strategic Sealift

Maritime Administration

MARAD’s Mission

To foster and promote the U.S. Merchant Marine and the American maritime industry to strengthen the maritime transportation system – including landside infrastructure, the shipbuilding and repair industry, and labor – to meet the economic and national security needs of our nation

Sealift Recapitalization Requirement

MARAD will conduct a sealift ship procurement to recapitalize Government-owned sealift ships, including the Ready Reserve Force.

Procurement could occur during FY21 or sooner, in coordination with stakeholders at Department of Defense, Department of the Navy, Military Sealift Command, and U.S. Transportation Command

Recapitalization documents include (3) Navy reports to Congress:

• Annual Long-Range Plan for Construction of Naval Vessels for

Fiscal Year 2019 (2018)

• Sealift That the Nation Needs (2018)

• Business Case Analysis for the Recapitalization of the Ready

Reserve Force (2019)

The Procurement

As detailed in the Sealift That the Nation Needs Report to Congress, this effort is to obtain more modern, cost-effective Roll-on/Roll-off (Ro/Ro) ships with the most advantageous characteristics through purchase from existing used vessels on the commercial market

• Recapitalization is an enduring need for sealift, with a requirement to replace approximately (26) vessels during the period 2021 through 2048, or even sooner

MARAD will potentially contract with a Vessel Acquisition Manager (VAM), or multiple VAMs to:

• Identify candidate vessels, develop Business Case Analysis for proposed purchases;

• Procure, reflag to U.S., convert to meet U.S. Coast Guard and

American Bureau of Shipping rules for classification

• Modernizing as required, VAM may convert for military utility and potentially maintain/operate ships in a Reduced Operating Status

(ROS)

Anticipated Acquisition

• VAM could perform services for the Government that include functions of a ship broker, ship manager, engineering, conversion and logistics support contractor

• VAMs would seek vessels from commercial sources that meet the Circular of Requirements originally posted in Federal Business Opportunities (FBO) solicitation number 693JF7-19-RFI-0001

REQUEST FOR INFORMATION (RFI) FOR ROLL-ON/ROLL-OFF

VESSEL RECAPITALIZATION, posted on February 14, 2019

• The contract vehicle may be an Indefinite Delivery Indefinite Quantity (IDIQ)

• A Performance Work Statement along with a ORD/KPP document will be provided with the RFP

Presenter Presentation Notes

Aligned with the long term recapitalization strategy. The contract is structured to purchase up to 5 NSMVs

Prime Contract is with the Vessel Construction Manager has experience and ability to receive a coastwise endorsement with a Public Nautical School ship Certification

The VCM is required to compete the construction of the ship.

IDIQ – provides flexibility in the quantity and ordering time of the various items. The draft RFP has all CLINs as FFP.

The requirements of the RFP are provided in a SOO and guidance design. A SOW is to be proposed to meet the SOO and all other requirements of the contact.

We are interested in feedback on the RFP. If there are cost drivers, that could be avoided….

Process Overview

Acquiring used ships from the commercial market is time consuming for each acquisition cycle, so using a VAM to streamline acquisitions and grouping or sequencing multiple ship purchases, which is more efficient than individual ship purchases and multiple support contracts, is preferred when possible.

• The VAM will identify candidate vessels and propose how they would meet the Circular of Requirements, along with detailed analysis of costs before any procurement is authorized by MARAD.

• MARAD will approve a ship(s) for purchase by the VAM only after a collaborative validation by Department of Defense stakeholders through:

– (1) a documented, deliberative review of the summary proposal from the VAM, and

– (2) required U.S. Government notification processes.

• After acquisition, expedited regulatory and reflagging work will be accomplished to ensure a fully mission capable vessel will be provided to the fleet within a reasonable timeline and under budgeted conditions.

• Additional modifications to increase the military utility of ships and provide combat power as soon as possible are desired, however the relative timelines and costs associated with modernization and optional conversions will be a consideration factor in evaluating ships for acquisition.

Presenter Presentation Notes Design – verify and refine.

Domestic Sources to the maximum extent practicable.

Sealift Recapitalization Request for Information for Vessel Acquisition Manager (VAM) services

• Interested offerors are advised to base their proposals on the instructions and requirements in the Request For Proposal (RFP), not on information presented or shared today or any other communications.

• Information will be used to draft the solicitation and finalize the proposed acquisition approach.

• The content and/or structure of the strategy may change with the release of the final solicitation.

Acquisitions Note: Commercial industry input is vital to help scope the RFP and inform the best approach to meet the DoD’s need for ships

RRF Program Office Note: Alternative ways to use commercial practices that could meet the 35-year (Used-service life) may be considered

Proposed RFP B:

CLIN Definitions

CLIN 0001 Conduct market survey, identify available ships conforming to or convertible to capabilities stated in the Circular of Requirements, submit recommendation of suitability and purchase

Contractor shall provide services, labor, overhead, management and oversight to survey the commercial used-ship market and determine ships with the required capabilities, conduct assessment surveys, inspections, etc. in determining suitability, including detailed cost estimates, and make recommendations to MARAD in priority order for purchase based upon a Business Case Analysis (BCA).

If a ship meets the Circular of Requirements minimum threshold, but with exceptions, the VAM could propose a ship where modification with the associated costs, timeline for regulatory approval and timeline for modification would still meet the acquisition timeframe required by MARAD.

CLIN 0002 Purchase, Reflag, Re-class

Contractor shall provide services, labor, overhead, management and oversight to negotiate and execute the purchase of selected vessel(s), onboard and shoreside spare parts and special tools, as well as the tasks to obtain classification by American Bureau of Shipping, and certification by U.S. Coast Guard for compliance with SOLAS, IMO, and other U.S. and international conventions, etc.

CLIN 0003 Ship Conversion/ Modernization

Contractor shall provide services, labor, overhead, management and oversight to negotiate and award contract to a U.S. shipyard or marine repair contractor for the conversion/modernization of selected ship(s).

Conversion and modernization costs are reimbursable;

however, the overall cost should be considered in the functional category 2 (above) for any proposed purchase.

Conversion may be accomplished either in conjunction with or sequenced after purchase, reflag, reclass or at a future date. Following conversion/modernization, delivery of the ship will be to a layberth or NDRF site designated by

MARAD.

If a ship meets the Circular of Requirements minimum threshold, but with exceptions, the VAM could propose a ship where modification with the associated costs, timeline for regulatory approval and timeline for modification would still meet the acquisition timeframe required by MARAD.

CLIN 0004 Develop and Perform Trials and delivery

Contractor shall provide services, labor, overhead, management and oversight to develop and perform necessary trials for proof of operation to a capability defined by MARAD. This includes the functions needed for regulatory compliance, functional or operational testing, and performance monitoring, testing, and baseline evaluation for operational dock trials and sea trials.

CLIN 0005 Vessel maintenance and operation – Fixed Fee – daily rate ship’s crew

After purchased vessel has been reflagged/reclassed and is certified to comply with all ABS and USCG requirements, MARAD could assign the contractor to support maintenance and operation in a Reduced Operating Status (ROS) capable of activation to Full Operating Status (FOS) within 5-days for option periods to be determined by MARAD.

CLIN 0006 Vessel maintenance and operation – Cost Reimbursable

The contractor shall execute additional maintenance and operation activity as identified by the contractor and funded by MARAD to provide for the readiness, regulatory and class compliance, lifecycle management, and configuration management of assigned ship(s).

Office of Ship Operations (MAR-610)

• Doug Harrington, Acting Director, Office of Ship Operations

• John Wiegand, Sealift Programs Business Manager

Office of Acquisition (MAR-380)

• Wilbur Turner, Contracting Officer (Primary POC)

• Henry Puppe, Contract Specialist

• Melinda Simmons-Healy, Supervisory Contract Specialist

• Bruce Markman, Director of Acquisition

Sealift Recapitalization MARAD Offices