Amendment 0005 TE-06 MARAD NSE Business Protocol Guidance (Rev 13).pdf

MARAD NSE Business Protocol Guidance – Revision 13 – January 19, 2023

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MARAD NSE Business Protocol Guidance

Revision 13 - January 19, 2023

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Copyright 2023, Management Systems Consulting LLC, Sugar Land, Texas www.mgmtsysconsult.com

All Rights Reserved. No part of this manual may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without prior written permission from Management Systems Consulting LLC. United States Maritime Administration, its employees, and contract mariners are granted license, for original consideration paid, to reproduce, store, or transmit in any form or by any means, as well as to edit, reformat, and/or substantially change the original content of this manual, to the extent that such licensed use is for the exclusive distribution to, and/or use aboard or within, vessels or shore facilities of MARAD.

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Table of Contents

REVISION NOTES

INTRODUCTION

BUDGET PLANNING AND EXECUTION OVERVIEW

NSE BUDGET PROJECTS AND RELATED PROJECTS

Budget Projects

Related Projects

BUDGET PLANNING PERIOD (THROUGH-RMB APPROVAL IN THE BUDGET YEAR PERIOD)

Budget Projects

Related Projects

BUDGET STABILIZATION PERIOD IN NSE (POST RMB APPROVAL IN THE BUDGET YEAR PERIOD)

Budget Projects

Related Projects

BUDGET EXECUTION PERIOD

Budget Projects

Related Projects

Related Project Revisions

PROJECT DEFINITION REQUIREMENTS

Budget Projects (POM Year, Budget Year and Baseline)

Related Projects

Project Indexes

PROJECT ACTIVITIES – FUNCTIONAL GUIDANCE

Creation of Budget Project

Addition of a Related Project

Revision of Related Project (and Existing Task Order)

Invoice Reviews

Closing the Related Project

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Closing the Budget Project

Modifications to Approved Baseline Business Plan Funding

Forward Funding

DEFERRED WORK PROTOCOL

Creation of Deferred Work Project

Movement of Service Requisitions to Deferred Work Project

Movement of Deferred Work to Budget Year Project

OPERATIONS PHASE

Phase O Baseline Projects

Related Projects for No-Notice Test Activation

Related Projects for Activation for Missions/Exercises

Related Projects for Drydockings

GROWTH ITEMS – BOTTOM UP SRS

NSE FILE ATTACHMENTS REQUIREMENTS

General

File Names

Where to Attach Files

What to Attach

NSE TIMELY ACTIONS

SRs for Bottoms-Up Projects

SRs for Top-Down Projects

NSE PURCHASING USAGE DATA REQUIREMENTS

WORK ORDER / SERVICE REQUISITION NAMING CONVENTION

CONTRACT DELIVERABLES

Ship Manager Vessel – Deliverables Location

Completion of a Contract Deliverable

Finding Contract Deliverable Submissions

Business Plan Deliverable Note

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APPENDIX 1: ACCOUNT CODES

APPENDIX 2: TEXT TEMPLATES – RELATED PROJECTS

Project Text – Maintenance Projects

Project Line Item #1: M&R

Project Line Item #2: Service Life Extension (Account No. 050-001)

Related Project Text – Operations Projects

OPER MDA MISSION

OPER Activation:

OPER Operating Costs

OPER Fuel

OPER Port Charges

OPER Deactivation

OPER Other Reimbursables

APPENDIX 3: PROTOCOL REVISION TEMPLATE

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REVISION NOTES

Revision 13 – Various Revisions

- Various nomenclature changes (MARAD position designations)

- Clarification on movement of only funded items being moved out of Budget to Related Projects

- Revised Task Order Number Entry on NSE Project

- Clarification on Project Close Out Activities

- Removal of SAM Debarment in File Attachments

- Bottom Up SR change in Timely Actions (change from Priority in NSE to funding priority)

- Deletion of 010-010 for Lubes, now rolled into 010-009 Fuel/Lubes

- Renaming of 050-001 to Service Life Extension (SLE) Funded

- Renaming of 050-002 to Service Life Extension (SLE) Unfunded

- Modification of FYXX M&R DRY-DOCK to remove RECAP

- Modification of FYXX M&R DRY-DOCK Project Management to remove RECAP

- Addition of EMBARC support under Ship Support project

Revision 12 – Various Revisions

- Update Screens to 6.5.12.7 Version

- Addition of DOWNGRADE accounts

- Modification of UPGRADES Category to UPGRADES of EQUIP/SYSTEMS, other minor name changes

- Addition of the FYXXX M&R TOP DOWN ACCOUNTS project o Incorporate previous Regulatory project wording into new project o Incorporate previous Ship Support project wording into new project o Incorporate previous Security project wording into new project

- Modification of FYXX M&R REPAIRS o Add “A” Terminology o Modify verbiage for funded/non-funded SRs

- Add FYXX M&R EMERGENT REPAIRS “B”

- Modified Port Charges account to Port / Canal Transit Charges

- Modified OPER Port Charges to be OPER Port / Canal Transit Charges

- Modified OPER Other Reimbursables for content

- Modified OPER Operating Costs (Mission) verbiage

- Deletion of Following Accounts:

o 020-010 Security OPERATIONS o 020-011 Travel OPERATIONS o 020-014 Voyage Repairs OPERATIONS o 020-015 Lubes for OPS OPERATIONS

- Modified M&R Drydock Project

- Modified Deferred Work Diagram

- Modified No Notice Activation Section to reflect single account code for Activation

Revision 11 – Various Revisions

- Incorporate Service Life Extension (SLE) in place of Extended Service Life (ESL) per Policy Directive

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18-1, Service Life Extension Program, 30 March 2018.

- Global replacement of "NS5" with "NSE" throughout the protocol.

- Incorporate NSE Purchasing Usage Data Requirements to clarify MARAD data requirements for the usage of NSE Purchasing by ship managers.

- Incorporated OPER EMERGENCY RESPONSE Text Templates

- Updated the Copyright declaration.

Revision 10 – Various Modifications to Processes and Editorial Corrections

- Modified Verbiage to the FYXX M&R DRYDOCK template

- Modified Verbiage to the FYXX M&R DRYDOCK – Project Management template

- Modified Verbiage to the OPER- No Notice Test Activation template

- Updated Chart of Accounts

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Revision 9 – Various Modifications to Processes and Editorial Corrections

- Modified Verbiage to the FYXX M&R DRYDOCK – Project Management template

- Addition of NSE Timely Actions Section

- Modification of the Attachment Requirements

- Change Reference from J-9 to J-2 on Ship Support Project Template

- Updated document to reflect latest screen shots from NSE Enterprise

- Updated Ship Manager deliverables section to point towards hierarchy location on the vessel where deliverables are attached

Revision 8 – Various Modifications to Processes and Editorial Corrections

- Modified M&R Fuel Project Standard Text to include Lubes

- Added 010-010 Lubes to the M&R Accounts

- Added 020-015 Lubes for the OPERATIONS Accounts

- Added Protocol Modification Template to Appendix 3

- Modified Protocol Modification Voting Makeup

- Modified OPER Activation Mission Project Text (removal of ABBP Repairs)

- Modified OPER No Notice Activation Project Text (removal of ABBP Repairs)

- Added Incremental Funding Wording to the following Project Text:

o FYXX M&R REGULATORY FEES & SUPPORT o FYXX M&R SHIP SUPPORT o FYXX M&R SM FIXED FEES o FYXX Security Program

Revision 7 – Minor Modification

- Removed AIRs from Document

Revision 6 – Various Modification to Processes and Editorial Corrections

- Related Project Text Modified to clarify the approval of the SRs requirement prior to the approval of the project by the COR.

- Added section for placement of ABBP on network drive by COR upon receipt from Ship Manager

- Clarification of the Deferred Work Project Definition requirements

- Addition of Forward Funding Section

- Modified Ship Support Project Template to include more specifics

- Added WO/SR Naming Protocol

- Added Appendix 3 – Protocol Revision Change Form/Information

- Moved distribution notice to inside cover

Revision 5 – Various Modification to Processes and Editorial Corrections

- Added 010-009 account for Fuel for M&R – inadvertently not on original listing

- Added 020-014 account for Voyage Repairs in OPERATIONS o Addition of Account Code: 020-014 Voyage Repairs will allow us the ability to account for those repairs specifically associated with the guidance pertaining to voyage repair. This will also allow

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- Added 070-008 account for Heavy Weather for ADMIN o Addition of Account Code: 070-008 Sever Weather will allow us the ability to account for specified funding in the event of a severe weather event such as a hurricane, tropical storm, and heavy weather. This dynamic event is filled with estimates versus actual expenditures and will allow for detailed accounting of all tasks and only those tasks as approved.

- Modified DRYDOCK project template wording

- Modification of Related Project Creation Wording (for unscheduled activations)

- Modified wording on bottom up projects to specify requirements for related SRs.

- Minor modifications on attachments wording

Revision 4 – Various Modifications to Processes:

- Revised the Following Project Templates o FYXX M&R SM Fixed Fees o FYXX M&R Drydock o FYXX M&R Sea Trial o FYXX M&R Dock Trial

- Deferred Work Protocol Revised

- Modified Screen Shot for Baseline Project Example

- Modified Screen Shot for Baseline Revision Project Example

- Added Section on Invoice Review

- Changed all references to COTR to COR as per change in MARAD nomenclature

- Modification to ABBP Change in Funding Section

Revision 3a – Revised method of requesting changes to protocol guidance document

Revision 3 – Numerous Comprehensive Modifications

- Reduced Planning Requirements to 2 Years from 7

- Updated Flow Charts

- Updated screen shots to latest version of NSE

- Revised Budget Project instructions

- Revised Related Project instructions

- Revised Project closing and hiding instructions

- Added requirement for attaching detailed estimates to SR/MRs

- Added Deferred Work Event guidance o changed Deferred Work Event date to 10/1/2020

- Added File Attachment Guidance

- Added Ship Manager Deliverables Guidance

- Updated Accounts

- Modified all Project Text templates o added verbiage about the supporting SRs for bottom-up projects o Created multi-account, two CLIN Drydock Project text

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Revision 2 – Addition of Operations Projects

Revision 1 – Internal Revision

Revision 0 – Original Revision

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INTRODUCTION

The following document describes the revised guidance surrounding the Business Protocol to be used by the

Ship Managers and MARAD at all levels in both the planning and the execution of the Budget as seen from the perspective of how NSE is used. The document provides guidance for the consistent use of NSE which will result in consistent data that is necessary for the efficient management of ship maintenance and operations by

MARAD and Ship Managers

This document is divided up into the following sections:

- Budget Planning and Execution Overview

- NSE and Budget Projects

- Budget Planning (Pre-RMB Approval)

- Budget Stabilization Period in NSE

- Budget Execution

- Project Activities

- Project Definition Requirements

- Appendices o Account Codes o Project Text – Related Projects o Project Text – Operations Projects

Emphasis should be made once again that the processes defined in this document reflect those which are applicable in NSE. This document is not intended to cover the various non-NSE items which may arise. Also, it does not contain guidance for the development of the Business Plan because it is covered in other MARAD guidance.

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BUDGET PLANNING AND EXECUTION OVERVIEW

In the MARAD implementation of NSE, budget planning and execution are processes that are linked closely and progress from one stage to the next. Each budget year is represented by a single multi-account project (known as a Budget Project) which goes through three basic stages during its lifetime:

POM Year (Project Index to be used is the POM Year) Budget Year +1

Budget Year (Project Index to be used is Budget Year) Upcoming Budget Year

Baseline Year (Project Index to be used is Baseline) Executing Year (Current Year)

These budget projects will always remain in the “Projects To Be Approved” list, and should never be approved by either the Ship Manager or MARAD personnel.

POM (Program Objective Memorandum) Year refers to year immediately following the upcoming Budget Year.

When the project enters the Budget Year stage, it is being prepared for submission to the RMB. Once the funding levels have been approved, the project progresses to the Baseline (Current Year) stage, at which time the actual budget execution will take place.

Ship Manager can create POM Year projects (Budget Year +2 and beyond) for his own planning purposes to capture out-year major activities. These +2 Year Projects populate the Outyear tab within the Business Plan.

It should be noted that the Baseline (Current Year) Project never gets executed per se; instead, Related Projects are booked against it. Related Projects are essentially the task orders equivalent in NSE and are the authorizing documents by which purchases of both materials and services are made in NSE.

The guiding philosophy for both planning and execution of work is that where work details are known, they are included; where work scope is generally known but details are not known the general work scope is included.

These two cases are referred to “Bottom Up” where details are known and “Top Down” where only general scope is known. As explained later in this document, certain categories of work are defined as “Top Down” (Ship

Support, Regulatory Fees and Support) while others are defined as “Bottom Up” (Repairs, Drydocks, Service Life

Extension, Safety, Security, Environmental Initiatives).

The following graphic is a flowchart of the overall process with respect to the Budget Year and Baseline (Current

Year) Projects. POM Year Projects are refined as details become available.

Notes:

1. Business Plan

2. Approved Business Plan

3. Baseline Business Plan

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M A

R A

D R

M B

C on tr ac ts

R

A D

F ie ld S ta ff

S hi p M an ag er

Budget Year Current Year

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As can be seen, there are three basic stages of the process:

- Budget Planning (Budget year)

- Budget Stabilization Period in NSE (Budget Year)

- Budget Execution [Baseline (Current Year)]/Baseline

Each one of these stages will be discussed in greater detail in later sections of this document. The point to see at this early stage is that the system builds upon the various steps from the NSE perspective. The overall goal is to use NSE to plan the budget as much as possible and to entirely execute the budget, keeping in mind that the process must be transparent and useful to both the Ship Manager as well as MARAD.

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NSE BUDGET PROJECTS AND RELATED PROJECTS

Prior to discussing the various steps in the Business Protocol, it is important to set out how projects are going to be used in the system to track costs. In the MARAD implementation, the NSE system has a setting known as

“Enforce Project Based Approval Controls” which is used to control how purchasing is done in the system and dictates that prior to any purchase being made, it must first be associated with an approved project. This is true for both services and materials.

In the MARAD implementation, there are two conceptual types of projects:

- Budget Projects (POM Year/Budget Year/Baseline)

- Related Projects (Budget Item)

As an overview, each Fiscal Year will start with a “Budget Project” which will always remain in “Projects To Be

Approved” in NSE. These Budget Projects are initiated in the POM years, are further refined during the Budget

Year, and then executed during the Current Year. It is important to note that the Budget Project will progress through these various stages (controlled by the Project Index) as shown below.

POM Years(s) Budget Year Baseline (Current Year)

These Budget Projects will be used for both developing the budget as well as executing the budget during the

Current Year, where the project is in a phase known as “Baseline”. It is during this Baseline stage that a Budget

Project will be executed via Related Projects.

Related Projects will be used for the actual budget execution and will initially serve as task order requests and then will serve as the tool to execute the task orders once they are approved. Related Projects are the location in NSE where the Ship Managers will execute the work and record the actual costs.

Initially, the Related Project is simply a request for a Task Order, however, after they are approved and the Task

Order issued, they will be “Approved Projects” in NSE and will be used to expend the funds associated with the

Task Order.

Upon receipt of the issued task order the COR will enter the Task Order Number and end date onto the Related

Project, attach an electronic copy of the task order to the project, and then will finally approve the related project indicating to the SM that the funding is available.

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Budget Projects

There is a single, multiple-account Budget Project per year for each ship and cost center, an example of which can be seen below. Note that the projects are in different stages as per the Project Index.

Each one of these projects is a multi-account project, where the budget numbers for all accounts tie to the business plan at its current stage of development.

As a representative example, for the FY21 VIC BUDGET project, you see the following breakdown by accounts.

These accounts are kept in line with the business plan as it develops.

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Related Projects

Except for unscheduled activations, Related Projects are created by the SM only after RMB approval of annual funding levels and notification from the COR that an increment of funding is available. They are a request from the SM for Task Orders and Task Order Modifications. The SM need not create all anticipated related projects for the year immediately after RMB approval, but rather in work packages as deemed appropriate by the SM to accomplish his business plan.

The goal behind the Related Project is to flow the Approved Baseline Business Plan into SM taskings; to provide for full cost accounting of those items which have been approved for purchase and to link the SM invoice to

MARAD with respect to the capture of data and completion of the work in NSE.

Related Projects are specific to the various accounts setup in the baseline FYXX BUDGET project. It should be mentioned that Related Projects in Phase M are usually single account projects (the notable exception being drydockings), unlike the Budget Projects. Examples of Related Projects are shown below.

It is against each one of these Related Projects that actual work will be carried out under a Task Order to the SM.

Specific guidance to the creation and execution of each of these projects is contained in a later section of this document.

Related Projects shall be assigned a Project Index of “Budget Item” when the work is part of the approved business plan budget, as initially approved by the Resource Management Board. Related projects can also have an index of “Emergent Work” when the work was not originally funded as part of an approved business plan but is of such a nature that it must be completed immediately.

For unscheduled activations: In consultation with the Ship Manager, the assigned Marine Surveyor will create and approve Related Projects. Upon completion, the assigned Surveyor shall send an e-mail to the RMS Help

Desk (rms@dot.gov), requesting performance of a forced replication for the NSE site where he originated the project(s). The RMS Help Desk will update Central, then notify the Ship Manager of the corresponding

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BUDGET PLANNING PERIOD (THROUGH-RMB APPROVAL IN THE BUDGET YEAR PERIOD)

Through the RMB approval stage, also known as the Budget Planning Stage, each project type has various characteristics associated with it. The following is a view of what will be happening with the year up for approval and subsequent years.

The main emphasis at this point is the upcoming fiscal year Budget Year Project. At this point, work descriptions and estimated costs should be against service requisitions which are associated with this budget year project.

All bottom up accounts (Repairs, SLE, Safety, Security and Drydock) should have unapproved SRs which support the budget amounts. It is not necessary at this point for these bottom-up SRs to have the full specification in the description, but rather to have an adequate description which provides a full description of the work to be done.

The actual specification can be included in the later stages for these documents.

It should be noted that there might be cases where you have a budget item where it is acceptable to have a single SR to cover the entire item during the budget approval process, but this SR gets split up later by the SM into multiple SRs during execution when the work is being moved to Related Projects. An example would be when you indicate Valve Overhaul for $100,000, but when you come to write the specification, you may split this into multiple SRs (one for pneumatic, one for hydraulic, etc.). There is no requirement that these be split during the Budget Planning Period if the SM has adequately defined the work and attached an adequate justification for the cost estimate, which is acceptable to the COR. A new supporting SR/MR should reference the original

SR/MR number in the Remarks block.

UPCOMING FISCAL YEAR FYXX PROJECT (BUDGET YEAR)

- Material Requisitions and Service Requisitions shall be associated with the FYxx project

- Adequate justification for Cost Estimates should be attached by the SM to each SR/MR.

- For all bottom up accounts (M&R Repairs, SLE and M&R Drydock, Safety, Security), SRs are to be entered by the SM to support their Business Plan submission.

- Budgeted Amount in NSE should be equal to the summation of the supporting SRs for bottom-up accounts

- Material requisitions should not be marked as Reviewed in NSE at this time

- Service requisitions should not be marked as Approved in NSE at this time

FUTURE FISCAL YEAR FYXX PROJECT (POM YEAR)

- Budgeted Amount in NSE should be equal to the summation of the supporting SRs for bottom-up accounts

- Material Requisitions and Service Requisitions can be associated with the FYxx projects; these are usually a result of previous year’s items being pushed to future years.

- Material requisitions should not be marked as Reviewed in NSE at this time

- Service requisitions should not be marked as Approved in NSE at this time

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Related Projects are not required and are not used during the Budget Planning Period.

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BUDGET STABILIZATION PERIOD IN NSE (POST RMB APPROVAL IN THE BUDGET YEAR PERIOD)

During this period, the main goal is to revise the unapproved FYXX Budget Year Project to match the RMB

Approved Business Plan and incorporate any changes that have occurred since submission of the final business plan.

RMB results will be provided to the SM by letter from the Division SOMO or his representative summarizing the required changes (e.g., amounts, work items, account designation) to the SM’s Final BP. If changes have occurred since the final business plan was submitted, the SM should notify the Contracting Officer’s

Representative (COR) in writing and request permission to adjust the RMB Approved Business Plan. The SM’s request shall be reviewed promptly and the SM notified of MARAD’s decision by the area division, so that finalization of the project in NSE will not be unduly delayed.

The area division will notify MAR-610 of any significant changes (e.g., greater than 10% deviation in any individual account) to the RMB approved business plan. The SM should notify the COR when the project is ready for review. The SMGR shall also attach the ABBP into NSE, since it is a required contract deliverable. The COR will change the project index from “Budget Year” to “Baseline” after verification that all changes have been incorporated. The project shall remain unapproved.

The COR will advise their Supervisor, Staff Shipping Supervisor (SSS), Procurement Contracting Officer (PCO)and

Administrative Contracting Officer(s) (ACO) that the ABBP deliverable has been received, accepted and placed on the MARAD internal O:\drive.

Changes to the ABBP are addressed under the section of the Protocol titled “Modifications to Approved

Baseline Business Plan Funding”.

UPCOMING FISCAL YEAR FYXX PROJECT (YEAR FOR RMB APPROVAL, BUDGET YEAR)

- Budgeted Amount are to be revised to the final amounts as approved by the RMB

- Ship Manager should verify that Material Requisitions and Service Requisitions which provide for backup to the approved budget are present in the project and the total for the estimates equals that of the approved RMB budget (bottom-up accounts only). Those that need to be deferred due to lack of funding availability should be moved to the Deferred Work Event as per the Deferred Work section of this Protocol.

- Material requisitions should not be marked as Reviewed in NSE at this time

- Service requisitions should not be marked as Approved in NSE at this time

- Project Index is changed by COR from “Budget Year” to “Baseline” after verification that SM has properly incorporated all required changes resulting from the RMB approval into the Budget Project and ABBP.

- Final extract of Annual Baseline Business Plan is made by SM using Business Plan Report extraction tool (before creating any corresponding Related Projects) and submitted in NSE.

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FUTURE FISCAL YEAR FYXX PROJECTS (POM YEARS)

- Budgeted Amount in NSE should be equal to the summation of the supporting SRs for bottom-up accounts

- Material Requisitions and Service Requisitions can be associated with the FYxx projects;

these are usually a result of previous years items being pushed to future years, in this case, the future year projects may be the recipient of the items which were not approved for current FY.

- Material requisitions should not be marked as Reviewed in NSE at this time

- Service requisitions should not be marked as Approved in NSE at this time

UPCOMING FISCAL YEAR FYXX PROJECT (YEAR FOR RMB APPROVAL, BUDGET YEAR)

- No Related Projects for the upcoming Fiscal Year should be present at this time.

FUTURE FISCAL YEAR FYXX PROJECTS (POM YEAR)

- No Related Projects for the upcoming Fiscal Year should be present at this time.

As shown in the previous flowchart, it is during this period that the SM will clean up the Budget Project based upon the approval actions of the RMB. Once the SM has completed this and notified the COR, it will be up to the COR to verify and provide concurrence that this task is complete by selecting “BASELINE” in the project index, which indicates that this Budget Project is ready to be executed.

Note: It is important to note that one additional business plan extract will be created by the SM to capture the final approved business plan in the current state at the time of the beginning of execution for the budget year. This final approved business plan at the commencement of the budget year is called the Approved Baseline Business Plan (ABBP). This ABBP must be extracted by the SM before creating any corresponding Related Projects for the Budget Year execution.

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BUDGET EXECUTION PERIOD

For the execution of the budget, Related Projects become important, as they serve as the SM’s request to

MARAD for the task order as well as providing the vehicle to track execution of the issued task order. As shown in the workflow diagram, the SM will create the Related Projects (which are unapproved at this point) and request the approval from MARAD to execute them.

UPCOMING FISCAL YEAR FYXX PROJECT (NOW CONSIDERED THE BASELINE PROJECT)

- As Related Projects are created, only the funded material and service requisitions will be moved out of the Baseline Project to the newly created Related Projects. The unfunded material and service requisitions will remain in the Baseline Project until funding received.

FUTURE FISCAL YEAR FYXX PROJECTS (POM YEAR)

- No change from previous stage

CURRENT FISCAL YEAR

- Related Projects in Phase M are usually single account projects

- Only the funded material and service requisitions will be moved out of the Baseline Project to the newly created Related Projects. The unfunded material and service requisitions will remain in the Baseline Project until funding received.

- Funded Service Requisitions selected for the related project will have biddable specifications

- Material Requisitions shall be marked as Reviewed in NSE by Ship Manager

- Ship Manger shall attach their detailed estimate (IAW their MARAD approved Commercial

Purchasing System Procedures) to each funded SR/MR linked to their Bottom-Up Related

Projects.

- For bottom-up projects, the sum of the funded SR/MR estimates shall equal the funded budget amount for the project

- COR verifies that work specification is sufficient and that the funded SR/MR estimates equal the funded amount on the requested Related Project.

- COR holds discussions with the Ship Manager validating SR’s to be accomplished. This step is crucial when under a Continuing Resolution or incremental funding schedules.

- Ship Manager adjusts the funded SR descriptions, estimates, and scheduled dates based on discussions with COR, and then approves the funded SRs.

- COR initiates the internal MARAD Procurement Request (PR) forms and Statements of Work (SOW) with approved (funded) and unapproved (unfunded) SRs and provides them for input into the Procurement System.

- Upon issuance of the TO, the COR will place the TO number in the Task Order Number field, enter the task order end date, attach the electronic copy of the TO to the project, and will then Approve the project in NSE

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- The SM now executes the work in accordance with his approved commercial purchasing practices and enters all contractually required data in NSE

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FUTURE FISCAL YEARS

- No Related Projects for the upcoming Fiscal Year should be present at this time.

Related Project Revisions

When task orders are modified, the related projects are modified according to the functional guidance contained later in this document.

Note: All standard texts for bottom-up projects have verbiage which allows for the SM’s addition and/or modification of SRs on the project without requiring a modification to the task order so long as the additional/modified SRs are intended to accomplish only the authorized Statement of Work as defined on the Task Order and the total cost of all SRs on the project is within the approved funding on the Task Order. In these cases, a modification to the current task order is not needed by the SM to complete the work.

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PROJECT DEFINITION REQUIREMENTS

Important to the process is how to properly name and complete the basics of the various project types. It should be noted that for the actual process, the latter sections of this manual should be referred to, as this section is only intended to discuss numbering and the high-level definition.

Budget Projects (POM Year, Budget Year and Baseline)

Project Number: Used to provide a standard numbering scheme for the project. Should be in the following form: <MGR>-<VSL><YR>-BDGT

<MGR> Three Letter Code for the Manager (as defined in NSE)

<VSL> Three Letter Code for the Vessel

<YR> Two Digit Year

For Operations Budget Projects, the following format should be used:

Project Number: <MGR>-<VSL><YR>-OPS-x

X Incremental Number (1, 2, 3, etc…)

Description: Used to provide short readable description. Should be in the following format:

FY<YR> <VSL> BUDGET

<YR> Two Digit Year

<VSL> Three Letter Code for the Vessel

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Project Index: Should either be “POM Year”, “Budget Year”, “Baseline” or “Baseline Revised” under the project index from the menu selection. “EMERGENT” should only be used when the funds are above/beyond that which was originally funded by the RMB in the

Baseline Business Plan.

Task Order No.: Not Used

Appropriation No.: Not Used

Reference: Not Used

Task Order End Date: End of Subject Fiscal Year

Accounts: Use Multiple Accounts

Remarks: Reserved and Used for Tracking Funding Changes

It should be noted that when using the multiple accounts feature, all of the applicable M&R Accounts should be used (see Appendix 1: Account Codes).

following form: <MGR>-<VSL><YR>-<CODE><DESG>

<MGR> Three Letter Code for the Manager

<VSL> Three Letter Code for the Vessel

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<YR> Two Digit Year

<CODE> Last Two Digits of Account Concatenated with last two digits of Sub-

Account

Note: For multi-account activation projects (Operations) this should be “2002”, for single account operations projects, this should be the relevant code as discussed above

<DESG> Designation (A-Z, used in sequence for each successive project with the same account code)

Description: Used to provide short readable description. Should be in the following format:

FY<YR> <ACCOUNT> <DESG>

<VSL> Three Letter Code for the Vessel

<ACCOUNT> Account Name (see Appendix for Acceptable listing)

<DESG> Designation (A-Z, used in sequence for each successive project with the same account code)

Project Index: Should either be “BUDGET ITEM” or “EMERGENT” under the project index from the menu selection.

“EMERGENT” should only be used when the funds are above/beyond that which was originally in the approved business plan.

Task Order No.: Contract No. DTMA98D16008L

Ship: Cape Victory (VIC)

TO No.: 69727618F000012

Mod. No.: P00001

NSE ENTRY: 16008VIC18F000012/01

(20 Characters)

This means the Contract No. is 16008 – Ship is Cape Victory – Fiscal Year is FY18 – TO No. is 000012 – Mod No. is 01

Appropriation No.: Not Used

Reference: Not Used

Task Order End Date: Completion Date of Task Order

Accounts: Single Account

Budget: Task Order Amount

Remarks: Reserved for Standard Project Text

Project Indexes

In conjunction with the project types are the definite Project Indexes which are used for the ship manager based projects.

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As can be seen on the right, there are six Project Index Terms which are defined for ship managers in this two-level project index term.

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The use of these terms indicates the stage at which the project is in (for the Budget Projects) or the classification of the Related Project.

BUDGET PROJECTS

POM Year: Used for Years past the Budget Year

Budget Year: Upcoming Budget Year and during budget stabilization period after RMB

Baseline: Current Fiscal Year or previously executed years

Baseline Revised: Current Fiscal Year or previously executed, where a revision has taken place from the original Approved Baseline Business Plan

RELATED PROJECTS

Budget Item: Project which is a budgeted project from the RMB

Emergent: Project which consumes funds not originally on the Approved Baseline Business Plan

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PROJECT ACTIVITIES – FUNCTIONAL GUIDANCE

The following section details the various activities that will occur with respect to projects over their lifetime, what is to be done in various circumstances, as well as the requirements which need to be adhered to when performing these processes.

Creation of Budget Project

It is the responsibility of the ship manager to create the Budget Projects for all of the future Fiscal Years. This process, along with the maintenance of these projects is shown above.

As can be seen, the process is straight forward in that a Budget Project will be created for each of the future fiscal years and only minimal input is required:

- Project Number – Follow the Budget Project nomenclature as defined in the “Project Definition

Requirements” section of this Guidance.

- Project Description - Follow the Budget Project nomenclature as defined in the “Project Definition

Requirements” section of this Guidance.

- Project Index – Using the indexes found under the Manager’s grouping, there are only three options which are applicable for Budget Projects when they are first created:

o POM Year – Used for Budget Year + 1 o Budget Year – Used for the upcoming budget year for which we would be preparing the budget.

o Baseline – Used for the currently executing Budget year.

- Accounts – Accounts should be those which are represented in the Approved Business Plan. Budget

Projects are MULTI-Account projects.

- Task Order Number – Leave Blank

- Task Order End Date – End of Fiscal Year

- Remarks Tab - Remarks are used mainly when the funds are drawn down from this project to actual task orders, so at the time of creation, no remarks are required.

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As for the specifics on the maintenance phase of these Budget Projects as seen on the right-hand side of the diagram, these actions will be covered in the various other functional descriptions below.

Addition of a Related Project

Purpose: Related Projects are used to track the actual expenditures of funds which are on Task Orders from within NSE.

Timing of Activity: Related Projects are created by the Ship Manager when he is requesting funding from the

COR to perform work as detailed in his Approved Baseline Business Plan.

The following is the basic flowchart describing the process of creating the Related Project, where this is a bottom up account. This is for all SRs/MRs.

Related Project Creation/Execution (Bottom Up Accounts)

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The following chart shows a similar process for non-bottom up accounts, where the only notable exception is that there are no SR/REQ documents to be moved from the Baseline project.

MINIMUM REQUIREMENTS FOR THE CREATION OF THE RELATED PROJECT (SHIP MANAGER)

- Project Number – Follow the Related Project nomenclature as defined in the “Project Definition

Requirements” section of this Guidance.

- Project Description - Follow the Related Project nomenclature as defined in the “Project Definition

Requirements” section of this Guidance. Special attention should be paid to the designator which indicates sequence for the Account as well as Revision Indicator.

- Project Index – Using the indexes found under the Ship Manager’s grouping, the only two acceptable choices are “BUDGET ITEM” and “EMERGENT”. BUDGET ITEM should be used if this project is a result of the RMB approved funding. EMERGENT should be used in the case where the project is a result of additional funds being used which were not originally approved by the RMB.

- Account – Account should correspond with the accounts approved by the RMB. It should be noted that for Related Projects, these are usually single account projects for the Maintenance Phase

(Drydocks being the exception), Operations phase can be multi-account.

- Task Order Number – Leave blank

Related Project Creation/Execution (Non-Bottom Up Accounts)

As can be seen from the above chart, the creation of the Related Project is a collaborative effort between the

Ship Manager and MARAD.

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- Task Order End Date – Initially, the Requested Project completion End Date from Ship Manager;

modified by COR to match the task order performance period end date before COR approves the

Related Project

- Remarks Tab - Follow the Standard Project Text Templates which are included in the Appendices, where one section is included for Maintenance Phase and the other for Operations Phase. The relevant standard Project text from the Appendices SHALL be used by all users for each Related

Project and elaborated upon as indicated in each template.

- Work Orders (SR) Tab – SRs/MRs from the Budget Project should be linked to this project.

With respect to naming of the Related Project, it should be mentioned that Related Projects are lettered sequentially. For example, if the SM is executing his business plan and puts his work priority list together and then chooses the items which will be executed in batches, he may have multiple projects, as he’ll have multiple

Task Orders. Hence, you may see “FY07 M&R Repairs A” and “FY07 M&R Repairs B” in the case that there are two task orders, since the letter simply signifies a sequence of task orders. A new letter is only used to designate a new TO, not for modification to an existing TO.

For each of the funded SRs which are linked to the Bottom-up Related Projects, care should be taken to ensure that the text of the SR is complete enough for the contracting document. It is this text which will go out on the ship manager’s RFQ and POs to their service providers. If possible, the full specification of the work to be done shall be in the Description field of the SR. If not possible, the specification should be included as an attachment to the SR. However, in this case, the description of the SR should be robust enough to clearly summarize the entire work scope in sufficient detail to demonstrate the intent.

Ship Manger shall attach their detailed estimate (IAW their MARAD approved Commercial Purchasing System

Procedures) to each SR/MR linked to their Bottom-Up Related Projects.

It should be noted that once the funded SR is approved, the description field is locked. However, when the SM commences their procurement on the SR, the description on the SM’s purchase documents (i.e. RFQ/PO) can be changed by the SM to improve the specification as more information becomes available during the SM’s purchasing process.

When the Related Project is ready for MARAD review, the Ship Manager shall notify COR by email and include the following summary information: “Project No. ; Total Project Funds Requested by SM: ;

SM Proposed Start Date: ; SM Proposed Completion Date: . “

MARAD APPROVAL AND INTERNAL REQUISITIONING PROCESS

Once the ship manager has prepared the Related Project and has notified the COR that it is ready, the COR will review the project to ensure that all of the required information is present. As part of this review, COR shall confirm that the SM has accurately completed all required NSE fields in the Related Project and associated funded SR/MRs in accordance with the guidance in this document. COR shall require SM to correct any noted discrepancies in NSE before the COR “Approves” the Project in NSE.

After the COR is satisfied, the MARAD Procurement Request (P/R) is created as the first step to the release of the funds via the Task Order.

When the COR approves the project, the COR shall perform the following actions in NSE:

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- Task Order Number is entered

- Task Order End Date is entered

- Electronic copy of task order is attached to project

- Project is approved in NSE

After this COR approval, the SM will be able to buy against the TO in NSE.

Revision of Related Project (and Existing Task Order)

Related Project Revision (Task Order Mod)

A

R

D

C on tr a ct s

M A

R A

D F ie ld

S ta ff S h ip

M a n ag e r

Revise and Approve Project

Modify Task Order Number, Completion Date, Budget, and Project Description on

Related Project. Attach copy of new TO

SM Generates Modification

Request (email) Perform Work

SM Emails (& discusses) TO Mod

Request to

COR

Work Items Properly Spec’d?

Prepare P/R Modification

Request

Prepares/Issues Task Order Modification

Move funded SRs from Budget

Project to Related Project

SM Ensures in Budget Project that SRs Descriptions are

Specification Ready

Yes

No

As can be seen from the above flowchart, when a modification of an existing Related Project is made, there are segments of this preparation of the request which fall outside of NSE - such as the SM holding discussions with the COR and subsequently generating the formal request to modify an existing Task Order by sending an email to the COR. The reason that this is not done within NSE is to avoid generating a second Related Project for the same Task Order. The SM’s creation and submittal of the original Related Project in NSE served as the SM’s request to MARAD for the original Task Order. However, SM would not do this again, as the SM desires only one

Related Project for this task order. Hence, the SM’s request to MARAD for modification to the Task Order must first be made outside of NSE.

After discussing the proposed modifications to the task order with the COR, the SM shall ensure that the funded SRs which are in the Budget Project are fully fleshed out (in the same detail as requested in the original

Bottom-up Related Project), as the COR will need these to prepare the request for modification to the task order.

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After the SM has provided all contractually required data to support his request for the Task Order modification, the COR will submit the internal MARAD TO Modification Procurement Request forms to the Area Division PR submission personnel for input and Contracts will issue an appropriate TO modification. At this point, the COR will modify the Related Project.

RELATED PROJECT

- Give a description of the modification in the Remarks of the project

- Task Order Mods are indicated by entering the TO Mod # in the TO Number field. There is no need to show the revision in the Project Description field as A1/A2 etc -this should just stay as “A” or “B” etc./

- Attach copy of the Task Order Modification to the Project.

- Modify the Task Order End Date (if applicable)

- Modify the budget of the Related Project, if the funding has changed.

After the issuance of the task order modification, it is the responsibility of the ship manager to move the funded

SR’s from the Baseline project to the Related Project. This is to occur only after the issuance of the task order revision to ensure that the SM staff does not purchase the item before MARAD Contracting Officer issues the authorizing Task Order modification. The reasoning behind this is that NSE does not have any other automatic controls to prevent these SRs from being bought by the SMs if they were moved onto the approved project prior to issuance of the TO.

Invoice Reviews

Upon receipt of a cost reimbursable invoice submission in EIS, the COR shall take the following actions in determining the validity of the invoiced item as well as validate the necessary administrative actions required in

NSE before recommending approval to ACO for approval.

The COR is to verify:

- The physical referenced work is completed in NSE as applicable and authorized on the appropriate project and task order.

- The approved Task Order SR scope of work is fully satisfied as prescribed.

- All required deliverables (condition reports, manuals, drawings, testing results, certificates, etc.) are attached to the appropriate NSE document and are successfully replicated.

- A copy of the vendor’s invoice is attached to the appropriate invoice in NSE with appropriate remarks as required that clearly identify the vendor’s invoice that is being validated for reimbursement. COR personnel should have a clear and distinct means of identifying the reimbursable without additional communication to the SM and that the data fully matches the copy of the vendor’s invoice attached to the Ship Manager’s invoice by way of the excel attachment and associated remarks/comments.

Note: These actions do not apply to Fixed Fee invoices.

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Closing the Related Project

After completing all work under the Task Order, SM promptly:

- reconciles the Task Order expenses and documentation,

- ensures that all actual costs have been properly recorded in NSE

- ensures that all contractually required data has been entered into NSE

- submits final invoice to MARAD

- ensures that information in NSE matches the various information submitted by SM to MARAD for reimbursement

- notifies COR, FCO & ACO that all requirements for Task Order closeout have been completed

Note: Promptly after submitting their final invoice under the Task Order, SM should notify MARAD to initiate TO Close-out process. However, it is understood that SM will not sign the TO Close-out Mod until SM has received final payment under the TO.

The project close-out process should commence once all of the work has been completed, all of the actual costs have been recorded, all contractually required data has been entered, and after the requirements for the Task

Order closeout have been met. The information in NSE should match that which is submitted to MARAD by the

SM for reimbursement. Only after this has been verified by the COR and FCO that MARAD & SM accounts have been properly reconciled, should the closeout modification be initiated.

Upon issuance of the signed TO Close-out Modification, the COR will “revise” the Related Project, enter the Task

Order Mod Number, attach the TO Close-out Mod to the Related Project, match the final funding on the Related

Project to the Task Order Close-out Mod, “approve” the Revised Related Project, “complete” the revised

Related Project. After five years the closed Revised Project should be hidden (except Major and Minor Claims

Projects).

Closing the Budget Project

Budget projects are never really…