Execution_Planning_Industry_Day_Slides_FINAL.pdf

Littoral Combat Ship Sustainment

Execution Planning (EP) Contract Industry Day

Ground Rules

• The purpose of this Industry Day is to improve Industry’s understanding of the LCS Class Ships' acquisition priorities for In-Service LCS Class and Follow-on Maintenance, Repair, and Modernization Contracting Strategy. PMS 505 desires to collaborate with Industry to gain feedback on how to best meet acquisition priorities. This briefing discusses the program’s current thinking, strategy, and intent and may change based on feedback and other inputs.

• The information provided today represents the Navy’s intentions, but is not final and is therefore to be considered draft and entirely non-binding. This presentation does not constitute a Request for Proposal (RFP) nor a commitment on behalf of the Navy of any kind.

• In order to fully document the questions and concerns raised during this Industry Day, please provide questions on the Industry Questions sheets provided. Questions will be treated as “Bidder’s Questions” and all answers will be made publicly available.

Agenda

• PMS 505 - LCS Class In-Service Acquisitions

• Fleet Introduction and Sustainment and Overview

• Notional Planning Schedule

• Proposed Scope

• NAVSEA 02 Contracts - Contracting Process

• Execution Contract Strategy Evolution

• Contemplated Contract Structure

• Milestones

• One on One Sessions (by confirmed request only)

PMS 505:

Fleet Introduction and Sustainment

Provides a single point of entry for the Fleet, TYCOM, and maintenance and sustainment communities

Integrates ship and mission package fleet introduction, logistics, training, and maintenance strategies to deliver and sustain LCS combat capabilities to the fleet

- Organizationally connected to LCS new acquisition and mission module program offices: PMS 501, 406, 420, 495 and IWS 8.0

- Ensures maintenance and modernization efforts, funding and crew training are in place for sustainment

Manages and contracts maintenance and modernization services for the service lives of LCS ships and mission modules

Overview of LCS Class Ships Two different ship variants meeting the same design requirements: Monohull (Freedom Variant) and Trimaran (Independence Variant)

Targeted at critical capability: mines, small fast surface craft, and diesel submarines

40 ships planned (28 LCSs and 12 Frigates)

• 8 delivered

• 4 delivered per year starting in FY17

Modular Mission Packages

• MCM, ASW, and SUW

• Rapid interchangeablity to meet strategic priorities

LCS Sustainment Concept

• Implement a “family” of contract strategies to optimize execution of the LCS Class modernization and maintenance/repair requirements

• Maximize competition and use of fixed price type contracts to improve cost, schedule & quality performance while maintaining flexibility & responsiveness

• Phased approach to meet contractual need dates, leveraging knowledge gained from Sustainment Execution Contract – West, Sustainment Execution Contract – East, and Planning Yard

• Navy committed to improving price competition, affordability, and efficiency in all contract execution

LCS Sustainment Concept (cont.)

Ships Force and MM

Detachment RMC and MPSF Industry

O -L ev el

Preventive Maintenance X X X

Facilities Maintenance X X

Corrosion Control X

I-Level X X

D-Level X

Product Support Plan (Family of Contracts) covering both variants

Planning Yard

(GDBIW)

Sustainment Execution

West

(NASSCO)

Sustainment Execution

East – Awards

(BAE, NASSCO,

LM, EPSILON)

Execution Planning – 2nd Quarter FY18

Award

San Diego Crew Move Aboard

LCS 1 – Freedom Sep 2008 LCS 2 – Independence Feb 2010 LCS 3 – Fort Worth Jun 2012 LCS 4 – Coronado Nov 2013 LCS 6 – Jackson Sep 2015 LCS 8 – Montgomery Jul 2016 LCS 10 – Gabrielle Giffords Mar 2017 LCS 12 – Omaha Jun 2017 LCS 14 – Manchester Oct 2017 LCS 16 – Tulsa Apr 2018 LCS 18 – Charleston Aug 2018 LCS 20 – Cincinnati Jan 2019 LCS 22 – Kansas City Aug 2019 LCS 24 – Oakland Apr 2020 LCS 26 – Mobile Jan 2021

Mayport Crew Move Aboard

LCS 5 – Milwaukee Oct 2015 LCS 7 – Detroit Aug 2016 LCS 9 – Little Rock May 2017 LCS 11 – Sioux City Sep 2017 LCS 13 – Wichita Feb 2018 LCS 15 – Billings Aug 2018 LCS 17 – Indianapolis Feb 2019 LCS 19 – St. Louis Aug 2019 LCS 21 – Minneapolis/St. Paul Feb 2020 LCS 23 – Cooperstown Aug 2020 LCS 25 – Marinette Jan 2021

LCS Homeport Layout

Note: Crew Move Aboard IAW PMS 501 Shipbuilding Planning Schedule, dated 20 Oct 2016 and show only ships under contract

Execution Planning Schedule

EP Award EP Ends

EP for SRA/DSRA starts at A-540 EP for CMAVs starts at A-120

Year 1 Year 2 Year 3 Year 4 Year 5

SRAs 1 2 4 3 3

DSRAs 1 1 3 2 2

CMAVS 33 38 43 47 48

Ship J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D

LCS 1

LCS 2

LCS 3

LCS 4

LCS 5

LCS 6

LCS 7

LCS 8

LCS 9

LCS 10

LCS 11

LCS 12

LCS 13

LCS 14

LCS 15

LCS 16

LCS 17

LCS 18

LCS 19

LCS 20

LCS 21

LCS 22

LCS 23 Key LCS 24 Move Aboard

LCS 25 CMAV

LCS 26 SRA

LCS 27 DSRA

LCS 28 A-540

2018 2019 2020 2021 2022 2023

Selected Restricted Availability (SRA) (Planning at A-540)

- 17 weeks every 32 months *

- Modernization performed during SRA periods

Dry-docking SRA (DSRA) (Planning at A-540)

- 25 weeks every 64 months *

- Includes extended dry-docking period

- Modernization performed during SRA periods

Continuous Maintenance Availability (CMAV) (Planning at A-120)

- 2 weeks every 4 months

- Includes corrective/emergent maintenance

- Performed CONUS and OCONUS

Notional Availability and Periodicity

* SRA and DSRA duration are based on SURFMEPP White Paper: Recommendations in Support of POM 19

Proposed Scope of Work

I. Availability Planning Support- Manage and perform maintenance and modernization planning process

II. Availability Execution Support- 4E Work Specifications for CNO Availabilities, labor and material cost estimates, Requests for Contract Changes (RCCs), incorporating Engineering Service Requests

III. Integrated Logistics Support- Configuration Management requirements for provisioning, technical manual requirements, configuration data management, and other elements associated with maintenance and repair

IV. Ship Assessments- Utilize inputs from all stakeholders to develop work specifications and an integrated executable work package

Proposed Scope of Work (cont.)

V. Special Projects: Engineering, technical analysis and special studies

VI. Long Lead Time Material (LLTM) Planning Support

VII.Travel and ODCs- Travel to support CONUS and OCONUS ship checks, reproduction costs, supplies, etc.

NAVSEA 02

Contracting Process

Objective

• High level overview of the contracting process that may evolve pending results of Market Research

• Single Award Contract-IDIQ construct

• Information presented is representative of the “planned” acquisition

• Released solicitation will govern the terms and conditions of the competitive process

West Coast Execution Contract Strategy Evolution

• CNO Avail, Accomplish

• Execution Planning (SRAs)

• CM/EM

• FM

• PM

• AESS (Inter-Avail Planning)

MSMO Spiral 2

CPAF/IF

MSMO Contract Structure

• 1-yr base w/ two 1-yr options

• Awarded Based on Best

Value

• Definitization of work on an annual basis

CPAF = Cost Plus Award Fee CPIF = Cost Plus Incentive Fee CPFF = Cost Plus Fixed Fee FFP = Firm Fixed Price

• CNO Avail Execution

• CM/EM

• FM

• PM

IDIQ-MAC

FFP/CPFF

• Planning

• Ship Assessment

• LLTM

CPFF/CPIF

Execution Planning

Contemplated IDIQ-MAC Contract Structure

• LCS Class Ships homeported in San Diego, OCONUS

• 5-yr base w/options

• Each CNO Avail and CMAV competed among MAC

Holders

• PM and FM for one hull per year, for MAC Holder competitions

• Ensures flexibility and responsiveness

• Maximizes competition to include use of IDIQ-MAC

• Facilitates competitive pricing

• Maintains Industrial base

• Competitively awards Execution

Planning contract

• Integrates and develops engineered work packages

Evolved Strategy

Way Forward

Increasing Contractor Accountability

IDIQ-MAC = Indefinite Delivery Indefinite Quantity Multiple Award Contract

LCS Execution Planning Solicitation

• Five year period of performance from contract award (Base + 4 Option Years)

• Cost-Plus-Fixed-Fee (CPFF) and Cost-Plus-Incentive-Fee (CPIF) Contract

Level-of-effort and Cost-only Line items

• Delivery Orders (DOs) issued will represent specific planning products required to support future maintenance availabilities

• Potential for Small Business Participation

• Best Value Source Selection

• Intend to award contract to a Single Offeror on the basis of initial proposals

LCS Execution Planning Solicitation (cont.)

• Initial Contract Award executed by Naval Sea Systems Command, HQ

• Delivery Orders to execute specific planning packages may be executed by:

• NAVSEA HQ

• Southwest Regional Maintenance Center (SWRMC)

• Southeast Regional Maintenance Center (SERMC)

• Naval Supply Systems Command (NAVSUP)- Bahrain, Rota, Singapore

• A Technical Evaluation shall be performed on each Offeror’s technical proposal

• A Cost Realism Analysis shall be performed on each Offeror’s cost proposal to develop a “Projected Cost to the Government” for each priced CLIN

Technical Proposal The Technical Proposal will be evaluated to determine Technical

Capability and Management Approach

Instructions will direct Offerors to provide a technical approach, as it pertains to the requirements in Section C as follows:

Development of a Planning Package Knowledge of Planning Process Process Improvement Management Plan Management Process Subcontract Management/Subcontracting Plan (applicable to large businesses) Past Performance

Technical Proposal Quality Proposals should be organized in accordance with solicitation requirements and be complete, clear and consistent in all respects Be judicious in use of inter-document cross-references

- Avoid multiple layers of references from one to section in the document to another

- Cross-referenced matrices can be disorienting and don’t always present a clear picture of what the Offeror is attempting to demonstrate

Unnecessarily complicated, confusing or incomplete proposals makes the review process more time consuming

Should stand on its own merits

- Do not assume evaluation team possesses any pre-existing knowledge about your company or its unique business practices

- Technical evaluation team instructed not to include any information or previous knowledge about your organization

Priced CLINs (CPFF/IF) Total notional manhours per line item, to be included in RFP, will be priced at a fully burdened rate to determine a ceiling price by CLIN

Offerors will be instructed to identify all proposed direct labor rates by category, direct and indirect labor costs

- Labor rates will be capped for all five years

- The rate, per labor category, is a fixed rate that includes all wages overhead, general and administrative expenses, Facilities Capital Cost of Money

(FCCOM)

Offerors will be instructed to price the unburdened amounts for LLTM, ODCs, and Travel that will be included in the RFP

Cost Proposal

Solicitation will provide templates. Offerors shall ensure all cost data spreadsheets strictly adhere to Section L requirements

Free of mathematical and formula errors

To the greatest extent possible, do not include hard entered data with no traceability to formulas

Efficiency of the cost evaluation is directly related to cost spreadsheet quality

The objective of this factor will be to perform a Cost Realism Analysis in accordance with 15.404-1(d) to derive a total projected cost to the Government

Cost Proposal Quality

Delivery Order Procedures Delivery ordering procedures will be in accordance with

FAR 16.505

The costs associated with each issued DO will be based on the labor rates incorporated at contract award

Ordering Activities will initiate the execution of planning packages

RFP may include the 1st planning package, to be awarded as Delivery Order 0001

Source Selection Evaluation Milestones

• Synopsis……………………………..…… 2nd Quarter GFY 17

• Peer Review…………………………...…. 3rd Quarter GFY 17

• Solicitation Issuance date……………….... 3rd Quarter GFY 17

• Proposal submission date………….. 60 days after RFP release

• Technical Evaluation

• Cost Evaluation

• Brief evaluation results to Source Selection Advisory Council

• Source Selection Authority selects source(s)

• Peer Review

• Contract Award…………………………..………….Feb 2018

• NAVSEA will post this Industry Day presentation and Q&A sheets on the FEDBIZOPPS website

• Industry is invited to provide the Navy comments, concerns or questions. All inquiries shall be directed to Patricia Stephens, Contracting Officer, and Kelsey Blaskoski, Contract Specialist, at patricia.l.stephens@navy.mil and kelsey.blaskoski@navy.mill

• Questions will be treated as “Bidder’s Questions” and all answers will be made publicly available via FEDBIZOPPS website (www.fbo.gov)

• To ensure the Navy is able to adequately consider Industry’s feedback in the upcoming solicitation, it is requested they be submitted no later than 1400 EST on 13 Jan 2017.

Questions http://www.fbo.gov/

This concludes the presentation.

Thank you