ESSM_Industry_Day_Brief_21_June_2017.pdf

Distribution Statement A: Approved for public release, distribution is unrestricted.

U.S. Navy

Supervisor of Salvage and Diving

(NAVSEA 00C)

brief for

ESSM Industry Day 22 June 2017

COMNAVSEASYSCOM (SEA 00C)

00C@supsalv.org

Ground Rules

All attendees must sign-in

No electronic devices permitted in the room

No audio/visual recording devices of any kind are permitted

Oral questions are permitted, unofficial responses will be provided and official answers will be provided via FedBizOpps the week of 10 July 2017 or sooner.

Submit comments and questions via email prior to 1400 EST, (29 June 2017) to Mercedes Thurston, Contracting Officer, at mercedes.burrell@navy.mil and Darrell Deitenbeck, Contract

Specialist, at darrell.deitenbeck@navy.mil.

All comments and questions will be considered as we prepare the final RFP

Presentation will be made available via FedBizOpps

Questions, answers and attendee list will be made available via FedBizOpps

Agenda

Ground Rules, Agenda, Purpose, and Notice to Attendees (Mercedes

Thurston, Contract Officer (SEA 02))

Welcome (Mike Dean, Deputy Director, Supervisor of Salvage & Diving, Director of Ocean Engineering)

Office of the Supervisor of Salvage & Diving Program Overview (Mike

Dean, Deputy Director, Supervisor of Salvage & Diving, Director of Ocean

Engineering)

Emergency Ship Salvage Material (ESSM) Program Overview, (Stephanie

Bocek, Pollution Equipment Manager, Oil Spill Response Program)

Contract Overview (Mercedes Thurston, Contract Officer (SEA 02))

Industry Interaction

ESSM Warehouse Tour

Purpose

Provide interested parties information on the ESSM program.

Improve industry understanding of Government requirements, expectations, assumptions and constraints

Collaborate with Industry to gain feedback on how best to meet our acquisition priorities. This briefing discusses the program’s current thinking, strategy, and intent and may change based on feedback and other inputs.

Receive industry feedback on the upcoming procurement to improve the quality of the Request for Proposal.

Notice to Attendees

The information supplied and exchanged during this presentation is subject to change and must NOT be treated as a solicitation

The remarks are not a guarantee of the Government’s course of action in proceeding with the procurement

The formal solicitation, when issued, is the only document that should be relied upon in determining the Government’s requirements

In the event that there is a conflict between any future RFP terms and conditions, and the information contained herein or disseminated during today's meeting, the RFPs terms and conditions shall govern. The RFP and any formal amendments are the only documents that must be relied upon in determining the Government's requirements.

The Government will provide public notice of any formal Request for Proposal using the Federal Business Opportunities website (https://www.fbo.gov)

All communications regarding this procurement shall be routed to Mercedes Thurston, Contracting Officer, and Darrell Deitenbeck, Contract Specialist, at mercedes.burrell@navy.mil and darrell.deitenbeck@navy.mil, respectively

Welcome

00C Mission: What We Do…

NAVSEA 00C provides technical, operational, and emergency support to U.S. government agencies in the ocean engineering disciplines of:

Marine Salvage

Pollution Abatement

Diving

Diving System Certification

Underwater Ship Husbandry (UWSH)

We act to minimize the effects of catastrophes and national emergencies

Deep Ocean Search & Recovery Air France Flight 447 Space Shuttle Columbia & Challenger Ehime Maru Cargo Ship El Faro DARPA/SSP Special Projects Malaysian Airlines Flight #370

Salvage, Towing, & Heavy Lift Disaster Relief: Hurricane Sandy, Haiti

Earthquake, Japan Tsunami, Hurricanes Katrina & Rita

USNS SGT MATEJ KOCAK Grounding Refloating and Salvage of the Ex-

SHADWELL

USS GUARDIAN (MCM 5) salvage

Diving/Certification Saturation Diving Capability Navy Experimental Diving Unit

Lead Service for Diving USN Diving Manual &

Decompression Tables Equipment Procurement Certification Authority for all DoD

Underwater Ship Repair Procedures and technology development Ship design for underwater repair Up to 20:1 return on investment avoiding dry dockings

Oil Spill Response Deepwater Horizon Oil Spill Ex-USS CHEHALIS Fuel Removal Hurricanes Katrina and Rita Operation Iraqi Freedom USS MISSISSINEWA Oil Removal Large Inventory sized to act as Tier

II/ III OSRO for Navy Ships/ Facilities Emphasis on transportability and supportability of equipment in austere environments

SEA00C - National Asset and World Leader

USS ABRAHAM LINCOLN (CVN 72)

November 2011

USAF F-16 S & R

July 2012

Deepwater Horizon Oil Spill

April 2010

USNS SGT MATEJ KOCAK

Grounding Jan – Feb 2015

USS ZUMWALT (DDG 1000)

Brake Wheel Removal / Propeller

Installation (August 2015)

SUPSALV’s Guiding Directives

Salvage and Search & Recovery 10 USC §7361-7364 – The Salvage Facilities Act

Authorizes the Secretary of the Navy to provide necessary Salvage Facilities and Oil Spill Response Capability.

SECNAVINST 4740.1

The Supervisor of Salvage is delegated all Secretarial authority in 10 USC §7361- 7364 to provide salvage facilities for public and private vessels.

OPNAVINST 4740.2 directs Supervisor of Salvage to…

Maintain commercial contracts to supplement the Navy’s salvage, oil spill response and search, and recovery capabilities

Maintain and operate deep ocean search and recovery assets to a maximum depth of at least 20,000 feet of water

Provide Fleet Commanders with equipment, expertise, and services to assist in salvage and recovery missions

Assume responsibility for salvage or recovery operations when so assigned

Provide capability for response to OHS spills on the open ocean or incident to salvage operations

SUPSALV’s Guiding Directives

Oil and Hazardous Substance Spill Response 33 CFR Part 155 & 154 (OPA-90)

Requires that vessel and facility response plans include contingencies for oil spill response, salvage, and marine firefighting.

OPNAV 5090.1 directs Supervisor of Salvage to…

Act as the Navy’s corporate oil spill response organization and to…

Assist Fleet Commanders in development of OHS spill response plans

Maintain extensive inventory of salvage and large-scale oil spill response equipment to support offshore and salvage related spill operations

Provide oil spill response equipment along with trained operators, mechanics, supervisory personnel, and technical experts upon request

Also references USCG-SUPSALV Inter-agency Agreement for OHS spill response and SUPSALV’s support of the National Response Team

SUPSALV’s Guiding Directives

Diving / Diving System Certification

DODINST 3224.4

Assigns Single Manager Responsibility for Joint Military Diving Technology and Training to the Secretary of the Navy.

SECNAV Memo dated 03 Feb 2012

Assigns Single Manager Responsibility for Joint Military Diving Technology and Training to the Director, Undersea Warfare Division (N97).

OPNAVINST 3150.27 directs Supervisor of Salvage to…

Serve as lead SYSCOM for the acquisition, certification, and AMU designation for all diving life support systems, equipment, and afloat and portable hyperbaric systems

Provide technical support to CNO for development of diving program policy

Maintain the U.S. Navy Diving Manual and other publications as necessary to provide consistent, accurate technical guidance and safe operational and emergency procedures

Provide technical, management, and funding support for NEDU

Initiate and administer contracts for commercial diving services as required

Port Hueneme

Anchorage

Pearl Harbor

Williamsburg

Bahrain

Singapore

Sasebo

Rota

SUPSALV CONTRACTS

3 Salvage Contracts

Western

Pacific Salvor

(SMIT)

East Coast

Salvor

(Donjon)

West Coast Salvor

(Titan)

+ Deep Ocean Search and Recovery Contract (Phoenix Int’l)

+ Diving Services (Phoenix Int’l)

+ SEAPORT (ROH)

ESSM Contract

(GPC) w/ 8 Sites

Norfolk

Mayport

San Diego

Gibralter Fujairah

Hull Cleaning Contract

(Seaward Marine) w/ 8 sites

Examples:

• CSS - Travel, Admin and Operations Support.

• Environmental – Pollution Response Equipment Inventory Maintenance, Warehousing and Exercises.

• Salvage – Equipment Maintenance, Repair & Warehousing, Tomahawk Recovery, F-18 Recovery, ex- SHADWELL salvage/disposal, CSS GEORGIA recovery.

• Diving – Equipment Maintenance, Repair & Warehousing.

• UWSH (Repairs) – Equipment Maintenance, Repair & Warehousing, Underwater Repair support to NSYs and RMCs

• UWSH (Hull Cleaning) – Underwater cleaning and inspection of all ships and submarines.

UWSH – Hull Cleaning ($25.3M)

Salvage ($27.9M)

Diving ($10.4M)

UWSH – Repairs ($20.2M)

CSS

($2M)

Environmental ($7.6M)

FY-17 SUPSALV Work by Type

FY-17 ESSM Work by Type

UWSH $11.1M

Environmental $9.1M

Diving $9.2M Salvage $11.1M

Emergency Ship Salvage Material (ESSM)

ESSM supports the mission areas of SUPSALV by providing reliable response equipment and experienced personnel always ready to respond.

ESSM is a worldwide network of strategically located warehouses that stockpile emergency response equipment for diving, spill response, salvage and underwater ship repair.

Ready to Deploy: Salvage & Oil Pollution Response Systems

Ready to Support: Operators & Maintainers

Fleet Salvage and Diving Force Enabler

Proven Model For Rapid Deployment

Contractor Operated - open and competitively bid contract awarded every 5 years to man, manage, maintain, and operate all ESSM Bases.

8 Strategically Located Bases - 4 U.S. Bases and 4 Foreign Bases

Virginia, California, Hawaii and Alaska (Personnel permanently stationed)

Singapore, Japan, Spain, Bahrain (Personnel must to travel to location)

200+ Full time personnel – experienced operators, skilled mechanics, electricians, welders, riggers, painters and managers

Warehouse Management –

Facility Maintenance as required

Building and Packaging new systems (procurement)

ESSM Equipment Inventory Management

Logistics Support (mobilization, organization)

Periodic Maintenance – *largest portion of ESSM operations

All equipment has a Maintenance Requirement Card (MRC) and associated check sheet stating what is required and how often to keep it ready for issue

(RFI).

ESSM Daily Operations

ESSM Equipment Procurement

Equipment Procurement: ~$10 M of acquisition annually of new or replacement salvage, underwater ship husbandry, diving and oil spill response equipment performed under ESSM contract.

Engineering Design and Assembly:

Equipment selection/ design, procurement, construction, assembly and packing all primarily performed at ESSM Base Virginia (Cheatham Annex).

Requires regular engineering, drafting, machining, water jet cutting, painting, and rigging operations in support of equipment procurement and emergency missions.

Other ESSM Departments supporting Procurement:

Shipping and Receiving

Configuration Control (inventory tracking, equipment drawings, instructions, and procedure management)

Logistics Support (NAVFAC P-307 certified crane and forklift operators)

Purchasing

IT (“Enterprise” management)

ESSM On-Site Operations

1. Site Safety Plans, Daily Safety Briefs, Personal Protective Clothing

2. Communications (radios, cell phones, GPS, Vessel AIS Tracking)

3. Operational Planning

4. Cost Tracking and Administration

5. Repairs and Maintenance

6. Clean-up and Decontamination

MOBILIZATION SUSTAINMENT DEMOBILIZATION

ESSM Preparedness for Response

Exercise Program (PREP) Annual Oil Spill Response Exercises:

PREP is a coordinated exercise program designed to meets the requirements of the Oil Pollution Act of 1990 (OPA 90) for Oil Spill Removal Organizations (OSROs).

SUPSALV conducts annual, oil spill response (OSR), on-water equipment deployment exercises at each ESSM Base in order to meet the PREP guidelines and maintain the readiness of responders.

Opportunity for continuous improvement of response plans and response systems

All ESSM contractor OSR personnel must maintain OSHA 40-HR HAZWOPER certification and be familiar with boat operations.

ESSM Operational Tempo

1. UWSH – 14 ship and submarine repair operations worldwide (8 equipment only, 6 w/ equipment + personnel deployed), 11 equipment procurements projects.

2. Salvage – 2 ship salvage operations CSS GEORGIA in Savannah River and USS FITZGERALD in Japan (equipment and personnel deployed), 8 equipment procurement projects.

3. Pollution – 2 equipment deployment exercises in Alaska and Hawaii (equipment and personnel deployed), 6 equipment procurement projects, 1 sunken vessel oil offload project.

4. Diving – 24 Fleet maintenance and diving equipment construction projects, 2 diving operational support projects, 2 research projects

**ALL operations are in addition to regular ESSM equipment programmed maintenance**

SNAPSHOT OF CURRENT ESSM OPERATIONS, JUNE 2017:

NAVSEA 02

Contracting Process

Mercedes Thurston, Contracting Officer Darrell Deitenbeck, Contract Specialist

Objective

High level overview of the contracting process

Information presented is representative of the “planned” requirement

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

ESSM FY18-FY23 Solicitation

• Five year period of performance from contract award

• Single Award - Indefinite Delivery Indefinite Quantity (IDIQ)

• Various CLIN(s) w/multiple contract type options

• Cost-Plus-Award-Fee (CPAF), Cost-Plus-Fixed-Fee (CPFF), and Firm-Fixed-Price (FFP)

• CLINs will reflect specific work to be performed

• Full and open competition

• Best Value Source Selection

• Intend to award on basis of initial proposals

Contract Fee Structure

• Offerors shall insert proposed fee percentages in the attachments which will be issued with the Request for Proposal (RFP)

• Scheduled labor will not be subject to any additional profit/fee beyond that which is included by the Offeror in his fixed rates. With regard to award fee type orders all fee will be placed in an award fee pool. There will be no base fee for award fee type orders.

Non-Operational Orders

• For non-operational orders, there are fee percentages for Unscheduled

Labor and for Other Direct Costs (ODC). Fee applicable to Unscheduled

Labor shall not exceed 10%. Fee applicable to ODCs shall not exceed 3%.

Operational Orders

• For operational orders, there is only one fee percentage and it is applicable to Unscheduled Labor and ODCs. Fee applicable to

Unscheduled Labor and ODCs shall not exceed 10%.

Distribution Statement A: Approved for public release, distribution is unrestricted. 26

Synopsis 3rd Quarter GFY 17

Solicitation Issuance date 4th Quarter GFY 17

Proposal submission date 60 days after RFP release

Technical Evaluation 2nd Quarter GFY 18

Cost Evaluation 2nd Quarter GFY 18

Brief evaluation results to Source Selection Advisory Council 3rd Quarter GFY 18

Source Selection Authority selects source 4th Quarter GFY 18

Contract Award 1st Quarter GFY 19

Source Selection Evaluation Milestones

Distribution Statement A: Approved for public release, distribution is unrestricted. 27

Technical (Non-Cost)

Technical Capability Subfactors

Personnel

Management Approach/Organization Plan

Experience

Oral Presentations

Past Performance

Cost

Evaluated cost to the Government is an offeror’s evaluated cost (including fee) for the base year and all option years.

This evaluated cost will be used in making an award recommendation

Evaluation Factors

Distribution Statement A: Approved for public release, distribution is unrestricted. 28

Technical Capability is more important than Past Performance

Within Technical Capability, the subfactors are in descending order of importance: Personnel, Management Approach/Organization Plan, Experience, and Oral Presentations

Past Performance is more important than Cost

Cost is the least important Evaluation Factor

Cost Proposal that is unrealistic, unreasonable or unbalanced may be rejected

*Total Evaluated Cost importance will increase as an Evaluation Factor as the Non-Cost Categories among competing proposals become equal.

Relative Order of Importance

• How well the proposal response meets the requirements of the solicitation

• Submit proposals that are complete, clear and consistent in all respects

• Should state brief statement of facts

• Inconsistencies are viewed as weaknesses

• 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

• Technical evaluation strictly addresses the merits of each proposal as it relates to the evaluation criteria

Technical Proposal Evaluation

Distribution Statement A: Approved for public release, distribution is unrestricted. 30

Proposals should be organized in accordance with solicitation requirements

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

Proofread the Proposal

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

Ensure continuity between Technical and Cost Proposals

Technical Proposal Quality

Distribution Statement A: Approved for public release, distribution is unrestricted. 31

Cost realism analysis – FAR 15.305(a)(1)

Failure to provide the required cost information may render the proposal non-responsive

Ensure consistency between the Cost and Technical proposals

Cost proposal needs to represent the technical solution provided in the Offeror’s Technical proposal

Issues such as work allocation between the Offeror and teaming partners should align in the Cost and Technical proposals

Inconsistency between the Cost and Technical Volumes will result in an adjustment to the Offeror’s proposed cost

*Offerors are advised that the Government prefers to have indirect rates capped at ceiling/not-to-exceed amounts. The Government may consider an offer that does not include capped indirect rates to be higher in risk than an offer that does include capped indirect rates

Cost Proposals

Distribution Statement A: Approved for public release, distribution is unrestricted. 32

• Use templates and 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

Cost Proposals: Section L Exhibits

Distribution Statement A: Approved for public release, distribution is unrestricted. 33

• Allocated across Government fiscal year in accordance with the schedule of maintenance actions

• Escalated based on indices provided in section L of the RFP, unless otherwise justified

• Supported by compelling evidence (Ideally FPRA, FPRR, historical actual rates, etc.)

• Describe how composite rates are developed

• Fixed price subcontractor quotes must be supported with compelling evidence of their ability to be binding during the execution of the work to be accepted.

• Auditable projected volume of business assumptions

Cost Proposals: Labor Rates

Distribution Statement A: Approved for public release, distribution is unrestricted. 34

• Although Cost is the least important of the factors, it still plays a key role in our decision making – especially when differences in Non-Cost factor become equal

• A “slightly” higher technically ranked proposal will not out weigh a significantly higher evaluated cost

• In the past, NAVSEA has unseated incumbents based upon competitive pricing

• In order to conduct an efficient source selection process, please ensure to provide any and all back-up data for ALL costs. The more supporting data you provide, the more likely the Government can award based on initial proposals. It will also make the cost analysis process FASTER, leading to an earlier decision!

Why is Cost Important?

Distribution Statement A: Approved for public release, distribution is unrestricted. 35

• NAVSEA will post this Industry Day presentation and questions on the FEDBIZOPPS website

• Industry is invited to provide the Navy comments, concerns or questions.

All inquiries shall be directed to Mercedes Thurston, Contracting Officer, and Darrell Deitenbeck Contract Specialist, at mercedes.burrell@navy.mil and darrell.deitenbeck@navy.mil, respectively.

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

• Questions should be titled “ESSM Questions from (Insert Company Name)”

• To ensure the Navy is able to adequately consider Industry’s feedback in the upcoming solicitations, it is requested they be submitted no later than 1400 EST on 29 June 2017.

Highlighted Questions

This concludes the end of the presentation.

Thank you