Attachment 1 VAM 2.0 Industry Day Presentation.pdf

Vessel Acquisition Manager (VAM 2.0)

Mission: MARAD maintains the RRF to provide critical surge sealift capacity for USTRANSCOM.

Current Fleet Challenge:

Average vessel age has reached 46 years.

Impact: Retiring vessels directly reduce military-useful cargo capacity.

Strategy: Awarded July 2021 as a "Buy-Used" acquisition model for commercial vessels.

Efficiency: Rapidly addresses capacity gaps while optimizing taxpayer investment.

Progress to Date: Purchased 7 commercial vessels.

Expanded Requirement: Scaled up to recapitalize additional retiring assets.

Scope: Procurement and integration of additional used vessels.

Industry Partnership: Key contract vehicle for commercial sealift integration.

Operational Need

FLEET CONTEXT & URGENCY

Current Execution

VAM 1.0 STATUS

Future Opportunity

VAM 2.0 ROADMAP

Strategic Fleet Capabilities

Buy-Used Acquisition Strategy Acquiring existing commercial Roll-on/Roll-off (Ro-Ro) vessels significantly reduces procurement timelines and capital expenditure compared to new construction, delivering immediate surge readiness.

Expedited Reflag & Conversion Utilizing Navigation and Vessel Inspection Circular (NVIC) 01-13 CH-2 & Maritime Security Program (MSP) streamlined procedures to rapidly convert and reflag ships for defense operations.

TRANSCOM Sealift & Speed of Retention Directly supports USTRANSCOM surge sealift requirements by rapidly injecting military-useful cargo capacity and minimizing the time required to preserve critical fleet capabilities.

Ship Requirements Minimum (Threshold) Key Features

• Cargo space: > 150,000 sqft.

– Minimum Military loading capacity: 150 psf, 7.5 ft height

• Length: < 850 ft

• Breadth: < 130 ft

• Draft: ≤ 38 ft

• Speed: ≥ 17 knots

• Endurance: 10,000 NM

• Engines: Diesel

• Power generation: 60 Hz electrical systems

– ≥ 70 kW excess power generation capacity

• Ramp: integral, self-deploying loading ramp for RO/RO

– Must support 66.7 Metric Tons

Source: Operational Requirements Document (ORD) For The Acquisition Of Used Roll‐on / Roll‐off Ships For Military Use In Surge Sealift Fleet, 2019 25

VAM 2.0 Contract

VAM 2.0 Contract

Survey the global market for vessels meeting ORD military utility and SOW requirements.

Conduct on-site surveys of candidate vessels based on market surveys.

Deliver ship-purchase sub-contracts and Business Case Analyses (BCA) to support purchase decisions.

Vessel purchase.

Perform the re-flagging/re-classification process, outfitting and logistics.

Perform modifications for national defense features, Reduced Operating Status (ROS), and to address system obsolescence.

Operate vessels in both ROS and Full Operating Status (FOS) as directed.

Provide comprehensive maintenance and repair services until the vessel is fully transitioned to the

RRF.

Market Survey On-site Survey/Analysis

Acquisition Regulatory Compliance

Modifications Operational Management Sustainment

Acquisition Strategy

Acquisition Strategy

• Contract vehicle (FAR Part 15): Up to two single-award Indefinite Delivery Indefinite Quantity (IDIQ) structures; a five-year base period and one five-year option period, for a total potential ordering period of ten years.

• Contract will be selected based on Best Value, using the trade-off process IAW FAR Part 15.101-

1. The evaluation criteria are:

• Technical Capability

• Technical Approach

• Management Approach

• Operations and Maintenance Approach

• Past Performance

• Price

• VAM 2.0 will be a hybrid-type contract with multiple Contract Line Item Numbers (CLINs).

Structure of Delivered Efforts

Structure of Delivered Efforts

CLIN # Effort Title Scope Description Contract Type

CLIN 1 Legacy VAM 1.0 Structure Reserved N/A

CLIN 2 Legacy VAM 1.0 Structure Reserved N/A

CLIN 3 Vessel Search & Screening Global market surveys to identify vessels offered with highest potential of meeting Government requirements. Primary output is to recommend vessel for on-site survey with supporting documentation.

FFP

CLIN 4 Ship Onsite Survey/Inspection and owner negotiations

On-site ship surveys/inspections, Inspection report, cost estimate, business case analysis to support a purchase decision. CPFF

CLIN 5 Reflagging & Classification, outfitting Coordination of vessel delivery, closing, services activities for vessel re-flagging and re-classification, outfitting CPFF

CLIN 6 Vessel Acquisition Procurement of vessels. CR

CLIN 7 Engineering Change (EC) Dev. Design and engineering for vessel modifications (excludes implementation). FFP 28

Structure of Delivered Efforts (cont.)

Structure of Delivered Efforts (cont.)

CLIN # Effort Title Scope Description Contract Type

Vessel Custodian Management Daily rate for vessel crew and ship sustainment dockside. FFP

Custodian Management (FOS) Daily rate for vessel crew in Full Operating Status (FOS). FFP

Maintenance, Repair & EC Implementation Preventative maintenance, baseline repairs, ship support, structural preservation, ship modification, industrial availability including drydocks, etc.

Logistics Services Updating vessel manuals, drawings, property management & NSE management (hierarchy, PM development, spare parts, electronic deliverables).

Materials, Outfitting & Spares Procurement of consumables, outfitting items, ship spare parts, and shore-based spares. CR

Special Studies Special studies and services.

Layberth Services Provide vessel layberths. FFP / CR

VAM 2.0 vs. VAM 1.0

VAM 2.0 vs. VAM 1.0

Addition of new Contract Line Items (CLINs) addressing:

• Logistics

• Materials, Outfitting & Spares

• Special Studies

• Layberth Services

Potential Incentives/Liquidated Damages:

Required delivery of completed ship 1 year from title transfer, including reflagging & engineering changes/modifications.

• Incentives at less than 8 months; Liquidated Damages at 14 months or more.