SL720-AA-MAN-030 - Navy Mondernization Process Management and Operationa....pdf

SL720-AA-MAN-030 Revision 3

NAVY MODERNIZATION PROCESS

MANAGEMENT AND OPERATIONAL

MANUAL (NMP-MOM)

SUPERSEDES: SL720-AA-MAN-030 (Revision 2), dated December 2008

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SL720-AA-MAN-030

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SECTION 1

INTRODUCTION TO NAVY MODERNIZATION PROCESS

MANAGEMENT AND OPERATIONS MANUAL (NMP-MOM)

TABLE OF CONTENTS

SUBSECTION 1-1 NAVY MODERNIZATION PROCESS MANAGEMENT AND

OPERATIONS MANUAL (NMP-MOM) CONTENT

SUBSECTION 1-2 INTRODUCTION

SUBSECTION 1-3 BACKGROUND

1-3.1 Goal

1-3.2 Authoritative Database – Navy Data Environment (NDE)

1-3.3 Exceptions and Exemptions

1-3.3.1 Information Assurance and Vulnerability Management (IAVM) 1-3.3.2 IAVM Products

SUBSECTION 1-4 SHIP CHANGE TYPES

SUBSECTION 1-5 PROCESS DEFINITIONS

1-5.1 Ship Change Documents (SCDs)

1-5.2 Programming and Budgeting

1-5.3 Budget Finalization

1-5.3.1 Budget Review and Adjustment

1-5.4 Ship Change Installation Planning

1-5.4.1 Drawing Preparation 1-5.4.2 Material Procurement 1-5.4.3 Integrated Logistics Support (ILS)

1-5.5 Ship Change Implementation

SUBSECTION 1-6 ACQUISITION PROGRAMS

1-6.1 Acquisition Strategies Defined

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1-6.2 MDA Acquisition Milestone A

SUBSECTION 1-7 SECRETARY OF THE NAVY (SECNAV) WAIVER FOR

DECOMMISSIONING SHIPS

1-7.1 Policy

1-7.2 Background

1-7.3 Purpose

1-7.4 Scope

1-7.5 Amended Statute

1-7.5.1 Safety Modifications 1-7.5.2 Modifications Below the $100,000 Threshold

References for Section 1 S1(a) NAVSEA SL720-AA-MAN-010/020 (Revision 2), Fleet Modernization Program

(FMP) Management and Operations Manual

S1(b) COMFLTFORCOMINST 4790.3 Joint Fleet Maintenance Manual (JFMM)

S1(c) ASN (RDA) Memorandum of 09AUG06

S1(d) CJCSM 6510.01 CH-3 date 8 Mar 2006

Figures Figure S1-1 Exemptions of Equipage Decision Tree

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SUBSECTION 1-1 NAVY MODERNIZATION

PROCESS MANAGEMENT AND OPERATIONS

MANUAL (NMP-MOM) CONTENT

The following is a synopsis of each section of this manual:

• Section 1: Introduction

• Section 2: General Policies and Responsibilities - Describes overall top level policies and responsibilities governing planning and installation of Ship Changes (SCs) through the Navy Modernization Process (NMP).

• Section 3: Navy Modernization Process Business Rules – Describe the policies, processes, and procedures of the NMP, including initiation, submission, updates, all review cycles, and closeout of Ship Change Documents (SCDs). (Surface Ships and Carriers Only).

• Section 4: Financial Management - Describes policies, procedures, and responsibilities for budgeting, funding, and financial management of SCs.

• Section 5: Material Management - Describes the policies, procedures, and responsibilities for ensuring material identification for SCs, is available when required, and accurately reflects the as installed configuration.

• Section 6: Configuration and Logistics Management - Describes responsibilities for procuring, updating, and tracking key Integrated Logistics Support (ILS) elements to ensure availability of ILS products to support SCs when installed. This section also establishes, for the interim process, responsibility for the preparation of various ILS and Configuration Management End of Availability (EOA)/End of Installation (EOI) Status/Verification Reports.

• Section 7: Advance Planning and SC Letters of Authorization – Includes for the interim process, requirements for drafting, releasing, and changing Advance Planning Letters and SC Letters of Authorization (LOA).

• Section 8: Navy Data Environment-Navy Modernization (NDE-NM) - Describes content, capabilities, and management of the NDE-NM database.

• Section 9: Submarine Force Ship Change Design and Development Process- Describes the process for accomplishing Submarine Force ship modernization including establishing the submarine- unique Prioritized Undersea Enterprise (USE) Requirements Letter (PURL), the development of the minimum Modernization Matrix (MMM) and the process for planning and approving SCs.

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SUBSECTION 1-2 INTRODUCTION

The legacy Fleet Modernization Program (FMP), documented in reference S1(a), provided a structure for the orderly identification, approval, design, planning, programming, budgeting, installation, life cycle support, and configuration control of military, technical, and survivability improvements to all ships. In 2004, the Surface Ships and Carrier Entitled Process for Modernization (the “Entitled Process” (EP)) was implemented and is documented in Sections 1 through 8 of this manual. In 2009, the submarine modernization process was added with detailed requirements in Section 9.

The NMP is designed to prevent unauthorized and non-supported alterations from being installed on Navy ships. Unauthorized alterations represent a substantial cost to the Navy in terms of the loss of configuration control, inefficiencies due to unexpected installation interference, systems and equipment that are not logistically supported, and resources expended to support items which are no longer needed. Unauthorized and unsupported alterations can adversely impact the interoperability of highly technical and integrated combat systems. This equates to a loss of combat effectiveness due to a reduction in Battle Group/Strike Group interoperability and individual ship capabilities. Unauthorized changes to a Navy ship are prohibited.

1-2.1 Surface Ship and Carrier Modernization

This subsection of the Navy Modernization Process Management and Operations Manual (NMP- MOM) provides an overview of the entire NMP. The NMP mission is to provide a disciplined process to deliver operational and technical modifications to the Fleet in the most operationally effective and cost efficient way. It defines a standard methodology to plan, budget, engineer, and install timely, effective, and affordable shipboard improvements while maintaining configuration management and supportability.

The NMP represents a sweeping change in the Modernization of Surface Ships and Carriers. It significantly modifies the FMP by reducing over 40 Change Types into two categories, Fleet Type Commander (TYCOM) changes and Program System Command (SYSCOM) or Program Executive Office (PEO) changes. Further, the NMP streamlines and consolidates a number of existing modernization practices, processes, meetings, and supporting documents to provide a single, hierarchical decision-making process for modernizing Surface Ships and Carriers.

The SCD is a document used to communicate a proposal and facilitate the decision process. The two types of SCDs, Fleet and Program, are defined in SUBSECTION 1-4.

Implementation of the NMP commenced in July 2004 with a shift from legacy FMP documentation to the SCD. One of the goals of the NMP is to populate the President's Budget with approved, fully funded changes selected based on Technical, War-fighting, Readiness, and Cost Benefits using a single structured process involving TYCOM and Office of the Chief of Naval Operations (OPNAV) Senior Decision-makers. Some key highlights are as follows:

• SCD Point of Entry: The SCD is now the change input vehicle for the single authoritative web-enabled database, Navy Data Environment (NDE). NDE and the SCD comprise a single modernization database and entry point for all changes.

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• Hierarchical Decision Making Process: The Navy Modernization Decision Boards manage and provide oversight to the NMP. They provide strategic direction to the NMP and produce a Modernization Plan (MP) as an input to the Program Objective Memorandum/Procurement Request (POM/PR) each year. The three hierarchal Decision Boards, (O-6 Decision Board, 1&2 Star Decision Board, and 3 Star Decision Board) are responsible for all aspects of NMP.

Voting members of the Boards, as defined in The CONOPS (Appendix L), represent appropriate Fleet and OPNAV organizations. Non-Voting Representatives from SYSCOMs, Ship Program Managers (SPMs), and PEOs assess the readiness of a SCD from an execution perspective to proceed to the next step of the approval process. The O-6 Board will evaluate all SCDs submitted, and prioritize approved SCDs based on available funding. The Flag Boards will provide disposition on Acquisition Program SCDs, resolve issues raised by the O-6 Board, and approve the prioritized Navy Modernization Plan (NMP) each year. Ultimate authority of Acquisition Programs shall be retained by the Milestone Decision Authority

(MDA).

• Decision Aids In The NMP: The Decision-makers must have an overall view of the cost, technical merit, and benefit of a proposed SCD. This summary is provided in the form of a single, electronically generated document called the Recommended Change Package (RCP).

The RCP displays these decision parameters to each of the board members to support approval, prioritization, and funding decisions. The RCP summarizes the results of three key assessments conducted during the SCD review process:

• Core and Virtual Technical Assessment Teams (TAT) consisting of SYSCOM and PEO technical personnel review the SCD to ensure the SCD is technically feasible and to identify any ship integration issues that may impact its overall benefit to the fleet, such as Weight and Moment, Heating, Ventilation and Air Conditioning (HVAC) requirements, interoperability, certifications, or association with other changes. The TAT may review the Fielding Plan (FP) and provide comments on the technical feasibility, but FP issues are not a determining factor for the TAT recommendations for Decision Board approval or rejection of a SCD.

• Cost Benefit Analysis (CBA): CBA CMs review cost and FP data in the Cost Structure Worksheet (CSW).

• Alteration Figure of Merit (AFOM): The AFOM is calculated using a weighted mathematical model that reflects the overall SEAPOWER 21 and other factors; (such as manpower, training, etc.) This model is weighted based on an annual TYCOM N8 “health assessment”, based on “gaps” in required Capabilities, of the 14 Mission Capability Packages (MCPs) that constitute the SEAPOWER 21 Operational Architecture. The TYCOMs provide inputs to the weighted model via numerical rating scales by subjectively evaluating the degree of war-fighting benefit anticipated for improvement in the SCD. TYCOM Staff Subject Matter Experts (SMEs) in Combat Systems, Command, Control, Communications, Computers, and Intelligence (C4I), and Hull Mechanical and Electrical (HM&E) disciplines conduct this evaluation.

• NMP Decision Points: There are decision points at the end of each phase in the life of an

SCD, as detailed in Section 3 of this manual. Additionally, there are two modified paths

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(Phase IIa/emergent) that a SCD can follow under special circumstances (see Section 3 of this manual for more details).

• NMP Outputs: When a SCD is approved at any phase, it becomes part of the MP, which provides NMP input to the Planning, Programming, Budgeting and Execution (PPBE) process. The approved SC is also scheduled to specific ships in NDE-NM, which in turn serves as the authoritative database of planned modernizations for each ship.

• The ship-specific list of modernization in NDE-NM forms the basis of the Hull

Modernization Plan (HMP) for that ship. HMP products are used to develop the Maintenance and Modernization Business Plan (MMBP) for surface ships or the Availability Work Package (AWP) for aircraft carriers. SCs that are included in the HMP for a specific Chief of Naval Operations (CNO) or Shipbuilding and Conversion, Navy (SCN) (Aircraft carriers only) availability are included on the LOA specific to that availability.

• Availability planning activities are informed of planned modernization work through the

HMP and LOA processes. There are several HMP products prepared for surface ship availability planning. The Advance Planning Hull Modernization Plan (AHMP) is prepared by the cognizant SPM in July of each year and provided to the Regional Maintenance Centers (RMCs) to facilitate necessary long lead-time planning for ships under their cognizance. The Execution Planning Hull Maintenance Plan (EHMP) is provided by the cognizant SPM in March of each year to the RMCs to support development of each ship’s MMBP.

• SPM and TYCOM LOAs provide definitive installation authority for each CNO availability.

Training material is available online, at the following location: http://www.fmp.navy.mil

1-2.2 Submarine Force Modernization:

Submarine Force modernization does not follow Entitled Process procedures and will instead follow procedures outlined in the Submarine Force Modernization Section 9 of this manual.

Modernization practices, processes, procedures and supporting documentation support a disciplined hierarchical decision-making process for submarine modernization.

One of the goals of the Submarine Force Modernization Program is to populate the President’s Budget with approved, fully funded changes required to support mission requirements. Changes are approved based on Threshold attributes such as Safety/Security, Survivability/Escape, Obsolescence, Warfighting, Communications/ Technology, Reliability/Maintainability, and Cost Benefit/Return on Investment (ROI) using a structured process which involves Headquarters, Submarine Force (COMSUBFOR) TYCOMs and Chief of Naval Operation (OPNAV) decision-makers. Some of the key highlights are as follows:

• Ship Change Point of Entry: The Submarine Ship Change Document (SCD), a tailored version of the Surface Ship and Carrier EP Process SCD, is to be used to identify change candidates. The SCD replaces the Justification Cost Form (JCF), Ship Alteration Record (SAR) and Alteration and Improvement (A&I) Item used in the past to define change candidates for SSN Class submarines. TRIDENT and SSGN submarines will continue to http://www.fmp.navy.mil/

1-5 Revision 3 use legacy alteration types, i.e., TRIDs and Type Zero (TZ) Improvements. Submarine alteration types are detailed in Section 9 of this manual.

• The Submarine Force will continue to utilize the Justification Cost Form and the Ship Alteration Record in accordance with technical specifications 9090-210B and 9090-500C in lieu of a Ship Change Document. A Ship Alteration (SHIPALT) for the Submarine Force is functionally equivalent to a Surface Ship or Carrier Ship Change (SC).

• SSN SC information will continue to be entered into NDE-NM to the extent necessary to support ILS and budgeting requirements. The current Submarine Force Enterprise interactive databases will continue to be used for input and data sharing of SC information.

• Hierarchical Decision Making Process: Team SUB manages and provides oversight to the Submarine Force Modernization Program in accordance with Undersea Enterprise requirements. They provide strategic direction to the Modernization Program and produce a Modernization Plan (MP) for inclusion in the Program Objectives Memorandum/Program Review (POM/PR) each year. This is accomplished through the annual Prioritized Undersea Enterprise Requirements Letter (PURL) and associated Minimum Modernization Matrix (MMM). Annual prioritization of the MMM is accomplished live at the Submarine Modernization (SUBMOD) Conference by all stakeholders. The annual PURL is approved by both Submarine Force TYCOMs and represents the official Submarine Force Modernization Plan.

• Decision Aids in the Submarine Force Modernization Program: The Decision-makers must have an overall view of the costs, technical merit and benefit of a proposed ship change. SCDs and any necessary attachments containing the rationale for the change and summary assessment information are provided to all stakeholders:

• Technical Review from the NAVSEA, Ship Design Agent and system Participating Acquisition Resource Manager (PARM) engineers, as applicable, including technical feasibility, ship integration impact (arrangements, electrical power, HVAC, EMC/EMI, weight/moment, etc.), interoperability, certification (SUBSAFE, etc) and conjunctive compatibility with other changes.

• Return on Investment (ROI) analysis: Required by the SPM in approving a Ship Change for reliability, maintainability and cost reduction impact conducted by the SPM Change Manager using inputs from the equipment Participating Acquisition Resource Manager, Ship Design Agent and technical review. Proposed change technical benefits and design, procurement, logistics and installation costs along with annual operating costs are compared with current capability and operating cost to arrive at an ROI ratio.

• Process outputs: At the Annual Submarine Modernization (SUBMOD) Conference, all stakeholders review proposed and existing modernization and assign priorities relative to other modernization on the MMM, taking into consideration changing priorities and mission requirements. The output of this process is the Minimum Modernization Matrix (MMM) which provides the annual Submarine Force Modernization Plan and is used by the Resource Sponsor to develop annual modernization budgets.

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SUBSECTION 1-3 BACKGROUND

Sea Enterprise is focusing headquarters leadership on outputs and execution, and is creating ideas that will improve our productivity and reduce our overhead costs. Sea Power 21 provides our nation with widely dispersed combat power from platforms possessing unprecedented war fighting capabilities. The global environment and the nation's defense strategy call for a military with the ability to respond swiftly to a broad range of global missions and homeland defense against terrorist threats. To meet these demands, ships must be deployable and surge ready when needed.

1-3.1 Goal

NMP is a Navy-wide initiative to create Surface Ship maintenance and modernization programs that will support the vision of “Sea Power 21” and it’s “Culture of Readiness (COR).” The primary objectives of the NMP are as follows:

• Increase the efficiency of the planning process without compromising its effectiveness

• Define a common planning process for Surface Ship Maintenance, and Surface Ship and

Carrier Modernization

• Install a disciplined management process with objective measurements

• Improve quality of work candidate description/requirement

• Reduce planning process churn, planning hand-offs, and inefficiencies in current processes

• Improve first pass yield…do it right the first time

• Improve on time delivery…product provided at the right time

• Apply cycles of learning…lessons learned regarding both positive and negative experiences

• Institutionalize the process and provide a continuous improvement methodology

1-3.2 Authoritative Database – Navy Data Environment (NDE)

NDE is the official U.S. Navy authoritative database for ship configuration and modernization.

1-3.3 Exceptions and Exemptions

The Deputy Commander for Nuclear Propulsion, Naval Sea Systems Command (NAVSEA) 08, is responsible for all technical matters pertaining to nuclear propulsion of U.S. Navy ships and craft, including all aspects of integration of the nuclear plant into the ship system. Nothing in this manual detracts in any way from these responsibilities. Accordingly, NAVSEA 08 will be consulted in all matters relating to or affecting the nuclear propulsion plant and associated nuclear support facilities. In addition, the procedures and requirements in this section are not applicable to alterations under the cognizance of NAVSEA 08. Strategic Systems Program Alterations (SPALTs) affecting the configuration and/or capabilities of systems and equipment are under the cognizance of the Director, Strategic Systems Programs (DIRSSP). Submarine TEMPALTs are exempt from this manual as noted in Section 9.

Exemptions are defined in three categories. The first category includes equipage (see Figure S1- 1). The second category includes NAVSEA 08, small craft and installations performed during new construction. This policy does not apply to systems under the cognizance of the Nuclear

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Propulsion Directorate of the Naval Sea Systems Command (NAVSEA 08). The third category is for maintenance replacement actions whereby there is no change in form, fit, function or capability of the replacement item, there is no impact to the ship’s infrastructure AND is NOT fully or partially funded by a Navy Budget Submitting Office (BSO) e.g. the item is funded by a non-Department of the Navy (DoN) (other Department of Defense (DoD)) agency or commercial vendor. Improvements to the reliability, maintainability or availability of the item do not necessarily require a SCD. This determination must be made on a case-by-case basis, as detailed in Section 3 of this manual. However, a work document (i.e., an OPNAV 4790/2 Kilo, which must include updating Configuration Data Managers Database-Open Architecture (CDMD-OA)) and an OPNAV 4790/CK must be submitted when not initiating an SCD for maintenance replacements.

Equipage No SCD

Mechani cal Gauge designed to connect To an exi sting test Equi pment/fi tti ng attachment ?

Yes

No SCD Required

No

Require upgrades or

Decision Tree

Portable GPS/PLGR ?

GPETE/SPETE ?

Incl uded on

PPIL/SSIL wi th An approved

IATO, ATO

Or IATC/ ATC?

Does the item Interface wi th the

Shi p’s LAN?

Modi fi cations to equi p Racks, foundations, i nfrastructure?

No Temporary

Pl ug i n to Shi ps Servi ce Electrical

System usi ng Existi ng outl ets ?

SCD

Embark abl e for LF tacti cal System, CCOP, Med. Det. or Ai r

Wi ng ?

No SCD

Figure S1-1 Exemptions of Equipage Decision Tree

SCDs are not required for Equipage. Equipage and other exemptions include items that are not permanently installed and are portable, examples include:

• Devices not attached to ships Local Area Network (LAN) or any shipboard data network

• Not hardwired into the ships electrical distribution system

• Test equipment meeting the above constraints

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• Stand alone systems that will be carried on and off the ship, do not radiate and do not have any interface with shipboard equipment other than standard ships 115Vac/60Hz power (Plug-in type equipment), and do not require any upgrades to the infrastructure for support

• Installation of mechanical gauges that connect to fittings designed and installed for test equipment attachment. The installation of new test fittings and the use of test gauge fittings for other than test equipment attachment will require a SCD

• Landing Force (LF) owned tactical systems (e.g. Advanced Field Artillery Tactical Data System (AFATDS), Global Command and Control System-Joint (GCCS-J), Automated Deep Operations Coordination System (ADOCS), Command and Control Personal Computer (C2PC), etc.), servers, and workstations may retain the United States Marine Corp (USMC) approved software configuration while afloat. Any LF owned system that has received an Authority to Operate (ATO) or Interim Authority to Operate (IATO) and an Interim Approval to Connect (IATC) or Approval to Connect (ATC) from the appropriate USMC Designated Approving Authority (DAA), is authorized to connect to the Integrated Shipboard Network System (ISNS) without being included on the Preferred Parts List/Significant Supply Items List (PPL/SSIL). Such systems will be evaluated for interoperability during the Deploying Group Systems Integration Testing (DGSIT) process and will be automatically added to the PPL/SSIL upon successful completion of testing

• Air Wing, Air Combat Element, and Aviation Detachment embarked equipment and aviation systems included on the PPL/SSIL with an ATO or IATO authorization and require no infrastructure upgrades to store or support the operation

• Cryptological Carry Onboard Programs (CCOP) equipment included on the PPL/SSIL with an ATO or IATO authorization that require no infrastructure upgrades to store or support the operation

• Database updates (e.g. threat library updates, tech manual database updates, etc.)

• Small Craft may include Landing Craft Air Cushion (LCAC) Vehicles, Rigid Hull Inflatable

Boats (RHIBs), Landing Craft Utility (LCU), Patrol/Security Craft, Amphibious Attack and Assault Vehicles (AAAV), etc.

Some examples would be a Personal Digital Assistant (PDA) (if certified for use with Information Technology-21 (IT-21)/ISNS/Navy/Marine Corps Intranet (NMCI)), Embarkable Laptops (If no LAN drops are added to Hull/Same Interface), Mobile Medical Equipment (i.e.

Blood Analyzer or Microscopes), General and Special Purpose Electronic Test Equipment (GPETE/SPETE), and Portable Global Positioning System (GPS) Units/Precision Lightweight GPS Receiver (PLGR). While these items are exempt from the process, any infrastructure changes (e.g. Foundation upgrades, upgraded power requirements, installed racks, etc.) required to support these items must be submitted on an SCD.

1-3.3.1 Information Assurance and Vulnerability Management (IAVM)

The Navy Cyber Defense Operations Command coordinates monitors and oversees the defense of Navy computer networks and systems, including telecommunications and is responsible for accomplishing Computer Network Defense (CND) missions as assigned by Commander, Naval Network Warfare Command and Commander, Joint Task Force – Global Network Operations (JTF-GNO), reference S1(d) refers.

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• IAVM is a process that provides positive control of vulnerability notification, corresponding corrective action, and IAVM status visibility for DoD network assets

• The IAVM program applies to any device on DoD owned, controlled, or contracted networks

A device is considered a node on a network if it has its own network identification (i.e. IP and/or MAC address)

• IAVM compliance is tracked in Online Compliance Reporting System (OCRS)

1-3.3.2 IAVM Products

The following IAVM products may require the submission of a SCD and/or a technical review under the NMP:

• Information Assurance and Vulnerability Assessment (IAVA): An IAVA addresses severe network vulnerabilities resulting in immediate and potentially severe threats to DoD systems and information.

Corrective action is of the highest priority due to the vulnerability risk o Acknowledge: Identify and submit report of affected assets in OCRS no later than 5 days after IAVA release o Compliance: 30 days or less; if unable to meet compliance deadline, a mitigation plan must be submitted and approved for non-compliant assets o NMP information for program managers/IAVA sponsors: (Surface Ship and Carriers Only for Submarines see Section 9 of this manual)

IAVA products that do not alter the hardware or software capability of a system or equipment do not require a SCD.

In all cases where hardware or a software capability is modified, a Phase III SCD shall be submitted, but is not required to be approved for installation. For submarines hardware and software changes will be accomplished by a field change (FCs) or engineering Change (EC) as described in subsection 9-8.

In addition, when IAVA products alter the hardware configuration or software patch level of a system classified as an Strike Force Interoperability (SFI) Category (CAT) 1, a technical evaluation shall be conducted by NAVSEA 05W (not to exceed 3 days) in order to determine interoperability impact

In all cases IAVA products shall be installed and operational in accordance with the criteria set by Navy Cyber Defense Operations Command (NCDOC)

• Information Assurance Vulnerability Bulletin (IAVB): An IAVB addresses new vulnerabilities that do not pose an immediate risk to DoD systems, but are significant enough that noncompliance with corrective action could escalate the risk.

o Acknowledge: Identify and submit report of affected assets in OCRS no later than 5 days after release.

o Compliance: 45 days or less; if unable to meet compliance deadline, a mitigation plan must be submitted and approved for non-compliant assets.

o NMP information for program managers/IAVB sponsors (Surface Ship and

Carriers Only for Submarines see Section 9 of this manual).

IAVB products that do not alter the hardware or software capability of a system or

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In all cases where hardware or software capability is modified, a Phase III SCD shall be submitted, but is not required to be approved for installation. For submarines hardware and software changes will be accomplished by a field change (FCs) or engineering Change (EC) as described in subsection 9-8.

In addition, when IAVA products alter the hardware configuration or software patch level of a system classified as an SFI CAT 1 a technical evaluation shall be conducted by NAVSEA 05W (not to exceed 3 days) in order to determine interoperability impact.

In all cases IAVB products shall be installed and operational in accordance with the criteria set by NCDOC.

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1-3.3.3 Form, Fit, and Function One key element of determining the need for a Ship Change when replacing a component is whether the new item is a form, fit, and function replacement for the existing item;

essentially, if the part or parts are interchangeable with another part or system when physical and functional properties are equivalent in performance and usability without requiring additional special procedures. The criteria below are provided as a guide for this determination. Final determination shall be made by the cognizant system PM in conjunction with the TA/SDM (which for specific Aircraft Carrier systems as defined in reference (r) include Propulsion Plant Engineering Activity (PPEA) and/or Reactor Plant Planning Yard (RPPY)) and the cognizant TYCOM (which includes Commander Naval Information Dominance Force (COMNAVIDFOR) for C5I systems), as appropriate.

In the cases where a shipboard action or change falls into this category but requires an ILS update, it is the responsibility of the cognizant system Program Manager (PM) in conjunction with the Technical Authority (TA) for the affected equipment or system (and the Ship Design Manager (SDM) if appropriate) to determine the best method to update the ILS within existing processes and execute that change.

Form – refers to the shape, size, dimensions, mass, weight, and other visual parameters which uniquely characterize an item. For software, form denotes the language and media.

Any changes to the area external to the component being replaced (for example, relocating another component due to interference, or a change in the maintenance envelope) due to a change in form require a Ship Change.

Fit – refers to the ability of an item to physically interface or interconnect with or become an integral part of another item. Examples of these types of interfaces are piping and electrical connections, mounting and foundations, software interfaces, Strike Force Interoperability (SFI), or distributed system requirements. Any changes in fit require a Ship Change.

Function – refers to the action or actions that an item is technically designed to perform, or the purpose an item is technically designed to fulfill (what the item is supposed to do).

Changes to an item’s function normally require a Ship Change.

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A component replacement meeting the above criteria may still be accomplished via SCD, if it is still the most advantageous method to execute the change.

1-2.3.4 Software Life Cycle Maintenance Software life cycle maintenance, as defined under acquisition guidance, differs from hardware life cycle maintenance in that it includes upgrades and modifications that enhance functionality of the software. There have been issues regarding whether these activities necessitate a new SCD to document changes to software configuration.

In general, acquisition guidance divides software life cycle maintenance into four categories:

a. Corrective changes: Post-delivery changes resulting from diagnosis of latent errors in the code. These changes are limited to those that correct errors preventing the software from performing the function for which it was designed at installation, and are often installed as patches to the installed software version. There are no associated hardware changes. Any changes beyond this limited scope fall into either the adaptive or perfective category. Corrective changes do not require an SCD for the first identification of the corrective change. A unique “Revision” record in NDE-NM shall be created, using the SCD number that installed the software (I.E. SWD 72456R1) in accordance with the discussion in Subsection 3-6.9 and the procedures in Subsection 8-

2.9. When a revision record is created, future software installs that include the corrective change shall utilize the applicable revision record.

b. Adaptive changes: Modifications to keep the software usable in a new environment, especially on a new piece of hardware or new hardware system. A new environment may also be a new or upgraded operating system. Adaptive changes require a new SCD for installation as they reflect a changed software configuration. These may or may not be denoted by a new version number, depending on whether any substantive changes are needed to the software.

c. Perfective changes: Modifications to software after delivery to improve its performance or maintainability, or provide enhanced functionality. Perfective changes require a new SCD for installation as they reflect a changed software configuration.

d. Restorative changes: In order to maintain installation control, a fourth category of software life cycle maintenance must be addressed. This can be referred to as “Restorative”. These types of efforts involve the shipboard “reinstallation” of a previously installed software version (no software change of any kind required) on a newly installed hardware component, system, or operating system as either a form/fit/function replacement or via SCD. In these cases, the method of documenting the software to be reloaded/restored to the new equipment is to provide a list and description of that software installation in the description of the SCD that removes the old hardware and/or installs the new hardware, and such actions should be performed as part of that SCD. Software reloads shall be included in the installation POA&M under the cognizance of the hardware SCD. If software reloads are identified after approval of the SCD, they shall be documented as part of the SCD via LAR.

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SUBSECTION 1-4 SHIP CHANGE TYPES

There are only 2 types of SCs in the NMP: Program Changes and Fleet Changes. Submarine Force modernization in Section 9 breaks these two types of SCs into further sub-categories.

Program changes are programmed for installation by SYSCOMs or PEOs, as well as funded for accomplishment by the SYSCOMs, PEOs or other organizations as agreed upon.

Fleet changes are programmed and budgeted as part of TYCOM Ship Maintenance funding.

Fleet changes typically address safety of personnel and/or equipment, provide increased efficiency, reliability, or maintainability, and generally do not increase or add new capability.

Non-Navy SCDs are programmed for installation on Naval vessels by Non-Navy organizations, and they are funded for implementation by these organizations per previous agreement.

Combination SCDs are programmed for installation on Naval vessels by a combination of the above organizations, and their implementations are funded by those organizations per previous agreement. Under normal conditions these SCDs are funded by their Programs; otherwise they are funded by the Fleet.

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SUBSECTION 1-5 PROCESS DEFINITIONS

Modifications to ships evolve from an idea to accomplishment of the change through a complex process involving many separate actions and participants. The following subsections provide an overview of that process of change definition, development, and installation. The Navy Modernization milestone charts in Appendix G of this manual identify the SC milestones for these actions and the associated responsible activities. These milestones vary between Surface Ships and Carriers as well as type of availability and may be tailored to apply to the unique situations where the dates must be accelerated to meet the contractual process milestones associated with the initial availability of a Multi Ship/Multi Option (MSMO) Contract or an availability that must be competed coast-wide. Milestones may also be accelerated when the TYCOM and SPM collaboratively determine this action is prudent to mitigate risk associated with first-ever installation of a SC, first-time SC installation within a specific ship class (First in Class Installation (FICI)), overseas installations, or similar situations where exceptional measures must be taken to manage impact. When this occurs, the platform TYCOM and/or SPM, as appropriate, will issue an “Exception to Navy Modernization Milestones” naval message at A- 720, but no later than A-540, to ensure the complete availability planning team is working to the same milestones. In all cases, the PARM will be consulted to ensure the impact of accelerated milestones on product delivery is considered.

1-5.1 Ship Change Documents (SCDs)

The SCD is the single authorized document for all SCs. The SCD does not apply to exemptions listed in paragraph 1-3.3 or to the Submarine Force (see Section 9 for Submarine Force SC processes).

1-5.2 Programming and Budgeting

The PPBE Process is the vehicle for establishing the NMP financial requirements and their execution. Approved SCDs, which contain budgetary information within the CBA portion, will be included in the MP and proceed through the programming and budgeting cycles.

1-5.3 Budget Finalization

The annual POM/PR process is used to establish the NMP budget for planned SC installation.

1-5.3.1 Budget Review and Adjustment

The Office of the Comptroller of the Navy (NAVCOMPT) conducts formal budget hearings to ensure activity budget estimates are within guidance, contain valid costs and pricing, and are financially feasible. After completion of the reviews, a proposed budget decision is issued that may revise previously identified funding requirements.

1-5.4 Ship Change Installation Planning

Each fiscal year, the SYSCOM Comptrollers establish NMP charts of accounts by BSO programs in the Standard Accounting and Reporting System (STARS)/Headquarters Claimant Module

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(HCM) based on approved budgets. The NMP budget execution process guides advance planning assignments for material procurement, design development, and ILS product impacts.

1-5.4.1 Drawing Preparation

Drawings (including Ship Change Installation Drawings (SIDs) and Installation Control Drawings (ICDs)) are used by the Installing Activities (IA) for the accomplishment of SC work.

These drawings shall include, as required; system drawings, structural drawings, arrangement drawings, manufacturing drawings, rip-out drawings, assembly and detail drawings, diagrams, and cabling sheets.

ICDs are equipment specific drawings and should be used as general guidance to develop Ship Specific/Ship Class SIDs. SIDs are the authorized/approved drawings (A-180 Milestone) to be used by the IAs for shipboard implementation of SCs. ICDs should be used as supplemental information where SIDs are deficient in specific guidance, and should be accompanied by a Liaison Action Record (LAR) prior to their use.

1-5.4.2 Material Procurement

The definition of Material is any item that is tangible (to include Hardware, Software, and Firmware) used to change a ship’s configuration.

Refer to Section 5 of this manual for detailed information.

1-5.4.3 Integrated Logistics Support (ILS)

Requisite ILS products are identified to the SPM in the ILS Certification located in the ILS module of NDE. Using this documentation, the SPM can evaluate the ILS readiness and resolve logistics issues prior to approving platform configuration changes. ILS Certification shall be completed in accordance with (IAW) Navy Modernization milestones identified in Appendix G of this manual. The impacted ILS products are identified and developed concurrently with development of the change to ensure delivery of all requisite ILS products IAW Appendix G.

Refer to Section 6 of this manual for detailed information.

1-5.5 Ship Change Implementation

This is the process for preparation, installation, and support of a SC. The process involves developing final installation drawings, material fabrication and assembly, completing applicable certifications, identifying and providing all required ILS products provided to the ship, establishing new configuration baseline records, drawings, and Ship Selected Record (SSR) updates.

Refer to Section 3 of this manual for detailed information.

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SUBSECTION 1-6 ACQUISITION PROGRAMS

The SCD is not a substitute for the statutory, regulatory, and requirements generation processes required of Acquisition Category (ACAT) programs, abbreviated acquisition programs, non-acquisition programs, and rapid deployment capability programs. All documentation, processes and policies identified in DoD 5000 series and Secretary of the Navy (SECNAV) 5000 series instructions, as well as the Joint Capabilities Integration and Development System (JCIDS) Instruction shall be met. Navy Modernization policies, requirements and procedures shall also be met per reference S1(b), and FMP Manual. Where guidance and policy conflict for execution of designated Acquisition Programs, Acquisition and JCIDS policy will take precedence.

A SCD should be initiated and submitted, IAW the NMP, prior to the first Acquisition Milestone or Navy Program Decision Meeting.

The Initiator/Submitter shall identify the appropriate ACAT Program Level, the MDA, and Program Manager of Record, cite the JCIDS requirement document, and other Non- Navy Modernization activities affected.

1-6.1 Acquisition Strategies Defined

The Department of Defense Instruction (DoDI) 5000.2 states that each PM must prepare, and the MDA must approve, an acquisition strategy. The acquisition strategy guides program execution from initiation through re-procurement of systems, subsystems, components, spares, and services beyond the initial production contract award and during post-production support.

The acquisition strategy evolves through an iterative process and becomes increasingly more definitive in describing the relationship of the essential elements of a program. A primary goal of the strategy is to minimize the time and cost it takes, consistent with common sense and sound business practices, to satisfy identified, validated needs for technologies, products, and services, and to maximize affordability throughout a program's useful life cycle.

In documenting the acquisition strategy, the PM provides a complete picture of the strategy for the decision-makers who will be asked to coordinate on or approve the strategy document. The PM ensures the document satisfies the requirements for the acquisition strategy to identify, address, describe, summarize, or otherwise document specific, major aspects or issues of the program or strategy.

The PM engages the Working-Level Integrated Product Team (WIPT) and Operational Test Agency (OTA) in the development of the acquisition strategy, and obtains concurrence of the PEO and Component Acquisition Executive (CAE), as appropriate.

The PM develops the acquisition strategy in preparation for program initiation, prior to the program initiation decision, and updates it prior to all major program decision points or whenever the approved acquisition strategy changes or as the system approach and program elements become better defined.

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The MDA approves the acquisition strategy prior to the release of a formal solicitation.

Approval usually precedes each decision point, except at program initiation, when the acquisition strategy is usually approved as part of the milestone decision review.

The acquisition strategy provides a summary description of the capability need that the acquisition of technology, products, and services is intended to satisfy. The summary:

• Highlights aspects of the capability need driven by family-of-systems or functional area needs for interoperability

• Highlights aspects of the capability need that reflect dependency on planned capability being achieved by other programs

• States whether the capability need is structured to achieve full capability in a time-phased, evolutionary approach, or in a single step

For time-phased needs, the summary:

• Defines the increment about to be undertaken, as well as subsequent increments

• Defines how the evolutionary approach will satisfy the full-capability need

The acquisition strategy prescribes accomplishments for each acquisition phase, and identifies the critical events that govern program management. The event-driven acquisition strategy explicitly links program decisions to demonstrated accomplishments in development, testing, initial production, life-cycle support, and the availability of capabilities, to be provided by other programs, on which this program depends.

The acquisition strategy defines the relationship among acquisition phases, efforts, decision points, solicitations, contract awards, systems engineering design reviews, contract deliveries, Test and Evaluation (T&E) activities, production lots, and operational deployment objectives.

The PM depicts these relationships in a summary diagram as part of the strategy.

The acquisition strategy defines the program structure used to achieve full capability and the approach to be followed. There are two approaches:

• Evolutionary (the preferred approach)

• Single step to full capability

The acquisition strategy approach to be followed depends on the:

• Availability of time-phased capability needs in the Capability Development Document/

Capabilities Production Document (CDD/CPD)

• Maturity of technologies

• Relative costs and benefits of executing the program in increments versus a single step

1-6.2 MDA Acquisition Milestone A

An Acquisition Program Milestone Decision for an Acquisition Program is required for ACAT programs considered under the NMP as a SCD.

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SUBSECTION 1-7 SECRETARY OF THE NAVY (SECNAV)

WAIVER FOR DECOMMISSIONING SHIPS

1-7.1 Policy

The decommissioning status of Navy ships shall be evaluated as an integral part of the modification request. Modifications to be installed on ships within five calendar years of the ship’s decommissioning have unique requirements, mandated by law, which must be followed before any appropriated funds can be obligated or expended for such purpose. To meet these requirements and to ensure vital modifications are expeditiously installed, all activities requesting modifications on ships within five calendar years of decommissioning will submit the required information, IAW reference S1(c).

1-7.2 Background

Section 8053 of the FY 98 DoD Appropriations Act (Section 8053) prohibited the use of appropriations to modify any weapon platform within five years of the planned disposal of that platform. The only modifications not covered by this statute were safety modifications. Covered modifications could proceed only if a Secretariat waiver of the restriction was issued for the modification based on the interests of national security. Section 8053 was enacted in FY 91 as an annual appropriations act provision, and then became permanent law in FY 98. Reference S1(c), issued in 2006, provides further guidance on compliance and remains current Navy policy.

1-7.3 Purpose

Disseminate information about recent amendments to the statutory prohibition against modifications of a weapons platform within five years of platform disposal. Provide guidance and uniform procedures for the consistent implementation of the amended statute throughout the Department of Navy. Assistant Secretary of the Navy (ASN) (Research, Development & Acquisition (RD&A)) is the Secretary of the Navy's delegate for determinations and approvals.

1-7.4 Scope

Office of the Assistant Secretary of the Navy (OASN) (RD&A) prepared a legislative proposal for the FY06 DoD Omnibus Authorization bill that would exclude modifications valued at less than $100,000 from SECNAV authorization and delegated authorization to the CNO who in turn delegated authorization authority to the Fleet Commanders. This proposal was approved by DoD, Office of Management and Budget and forwarded to Congress. Subsequently, Congress executed statutory relief in a form broader than requested by the Navy via Section 372 of the National Defense Authorization Act for Fiscal Year 2006. Section 372 excludes from the statutory restriction not only those modifications less than $100,000 in cost, but also those that involve reusable items (removed when the weapons platform is retired and installed on another platform) when the total cost of the modification (including removal, refurbishment and installation on another platform), as determined by the Secretary, is less than $1 million. Section 372 also codifies the statute at Section 2244a of Title 10, United States Code (Section 2244a).

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1-7.5 Amended Statute

Title 10, United States Code Section 2244a prohibits modification of an aircraft, weapon, vessel, or other item of equipment that the Secretary plans to retire or otherwise dispose of within five years after the date on which the modification, if carried out, would be completed. Section 2244a provides that the following modifications are exceptions that are not covered by the Section 2244a prohibition:

• Safety modifications

• Modifications that cost less than $100,000

• Modifications that, as determined by the Secretary, cost less than $1,000,000 for reusable items that, upon the retirement or disposal of the platform will be removed, refurbished, and installed on another platform, require ASN (RDA) approval

• Title 10, United States Code Section 2244a allows the Secretary to waive the statutory prohibition for any modification covered by the statute if the Secretary…