Special Edition: Agenda for Change
FRONT OFFICE COLUMN:
Over a year ago, NAVSEA embarked on a very aggressive Agenda for Change, focused
on execution and tackling issues of real importance to the U.S. Navy. This past August,
Executive Director Brian Persons and I briefed the Chief of Naval Operations (CNO),
Adm. Gary Roughead on our status at the one-year mark – everything we’ve put in the
“done pile” and what we plan to focus on in the year ahead. It was an accountability
meeting and CNO’s feedback was very positive on the measurable progress we’ve made
in attaining our top Strategic Business Plan goals -- Sustaining our Current Fleet,
Building an Affordable Future Fleet and Enabling our People.
In this Special Edition of Observer, you will see some of the great work the NAVSEA
Team has accomplished over the past year, as well as our focus areas for Fiscal Year
2010 (FY10). Our success thus far reflects the incredible amount of energy, passion and
dedication this Team has invested into driving positive change, and I’m extremely
pleased with the progress we’ve made.
In sustaining our current Fleet, the #1 priority leadership in the Fleet told us we need to
fix was delivering Los Angeles-class submarine availabilities on time. In the past year,
our Naval Shipyards went from delivering ZERO to delivering three of four Los Angeles-
class Docking Selected Restricted Availabilities (DSRAs) on time. We’ve also taken
major strides in terms of improving the material condition of our surface Fleet with the
stand up of Surface Ship Lifecycle Management Activity (SSLCM), funded by new
efficiencies generated through our Warfare Centers. Additionally, NAVSEA now
operates all Regional Maintenance Centers, which will drastically increase synergy
between SEA 21, our Naval Shipyards, CLASSRONs and the Fleet.
In building an affordable future Fleet, we’ve also made great progress on a number of
initiatives, including our ability to engage NAVSEA engineers, Industry, Pentagon
leadership and the Fleet early on in the shipbuilding design and acquisition process.
cumbersome work practices
as well as reviewed several
specifications in our
and made smarter
investment decisions based
on risk versus reward.
In Enabling our People,
we’ve expanded our
workforce for the first time
in more than a decade,
particularly within our acquisition staff. For example, we’ve recently hired several mid-
career engineers from the automotive industry who bring a great deal of experience in
commonality, speed to market, robotics and unmanned vehicles. We’ve also completed
most of the first round of Diversity Accountability Reviews to establish a baseline to
ensure we are making real, measurable progress in our diversity goals both in hiring a
diverse workforce and in ensuring we have diverse candidates being promoted into
These examples highlight only a few of the INCREDIBLE amount of challenges we’ve
tackled over the past year. And we’re not done yet! It is the honor of my life to lead this
great Team of active duty, Reserve and civilian men and women and every day. I commit
myself to giving you, our Navy and our nation my very best.
ACCOMPLISHMENTS: SUSTAINING OUR CURRENT FLEET
Back to Basic Initiatives:
We’re building momentum in our naval shipyard “Back to Basics” initiatives, particularly
with the delivery of Los Angeles-class submarine Docking Selected Restricted
Availabilities (DSRA) in our naval shipyards.
USS BOISE (SSN 764) one day early (NNSY)
USS BUFFALO (SSN 715) seven days early (PHNSY&IMF)
USS JEFFERSON CITY (SSN 759) on schedule (PSNSY&IMF)
From our deckplate mechanics to our shipyard supervisors, we’ve drastically improved
our schedule awareness and ability to measure performance to plan!
NAVSEA Energy Initiatives:
With innovative technology and improved processes, we’ve implemented energy
conservation measures to consistently reduce the Navy’s energy consumption.
Applied a new underwater hull coat paint to USS COLE (DDG 67),
projected to save more than $180K annually in fuel costs.
Installed the first fuel-efficient stern flap aboard USS WHIDBEY
ISLAND (LSD 41), projected to save up to $450K annually in fuel
Delivered USS MAKIN ISLAND (LHD 8) with a unique hybrid
electric drive, estimated to save more than $21M in fuel costs over
the ship’s lifecycle.
Achieved more than $99M in fuel cost avoidance in FY09 as part of
our Incentivized Energy Conservation (i-ENCON) Program.
Improving Surface Ship Lifecycle Maintenance:
We’ve taken tremendous steps in the right direction to improve surface ship lifecycle
Established the Surface Ship Lifecycle Maintenance Activity to
enhance our ability to accurately estimate and execute Fleet
Realigned the Regional Maintenance Centers under NAVSEA to
create better synergy.
Conducted four surface ship lifecycle assessment pilots in
partnership with the American Bureau of Shipbuilding to accurately
assess the baseline material condition of our Arleigh Burke-class
guided-missile destroyers, Ticonderoga-class guided-missile
cruisers, Oliver Hazard Perry-class guided-missile frigates and our
Whidbey Island-class dock landing ships.
SIDEBAR: Assessed and aligned more than $400M in Warfare Center taskings, resulting
in $18M in savings, which helped fund the stand up of SSLCM Activity.
ACCOMPLISHMENTS: BUILDING AN AFFORDABLE FUTURE FLEET
Total Ownership Costs:
We’ve increased our focus on total ownership costs (TOC) and are integrating it into
every step of our acquisition process.
Eliminated 318K mandays of depot maintenance over the lifecycle
of our Virginia-class submarines.
Eliminated several Cumbersome Work Practices including the
Submarine MRC 4/5 suspension, resulting in $32M in savings
Invested in several trade studies that are focusing on total lifecycle
costs of systems including propulsion, ventilation, piping and
berthing. The data from the trade studies will allow us to be “better
buyers” earlier in the design process.
Rapid Cure Single Coat Paint is now the standard on surface ships,
submarines and aircraft carriers, saving time and money with every
Developed a design process for the new ship design and acquisition
programs to create better synergy and collaboration between all
stakeholders involved in the acquisition process to make cost
effective tradeoffs early in the design process.
Commonality & Open Architecture:
We’ve made REAL, measurable progress in making the concepts of Commonality and
Open Architecture part of our acquisition strategy.
Awarded more than $26M in valve contracts in FY09 in support of
commonality in partnership with the Defense Supply Center
Columbus and Naval Supply Systems Command.
Piloted several industry commonality approaches that demonstrated
both a reduction in the number of equipment designs and total
ownership cost savings between $816M - $837M.
Published the Open Architecture guidance document for our
Reducing Costly Specifications:
We’ve identified 10 of our costliest specifications, assessed their complexity and
eliminated excess work in order to reduce overall acquisition costs.
Five specifications are almost through the process, with the
remaining five nearing completion with the goal of making
specification reduction part of our NAVSEA culture.
Automatic Test/Re-Test Capability:
We’ve providing Automatic Test Re-Test (ATRT) capability to support the testing of
multiple pilot implementations within our surface and submarine acquisition programs.
ATRT promises to dramatically reduce the cost of software development and
Completed demonstrations on Common Network Interface (CNI)
External Interfaces and AEGIS Radar Control Open Architecture
ACCOMPLISHMENTS: ENABLING OUR PEOPLE
Recruiting & Developing:
We’re recruiting and developing a high-performing, competency-based, mission-focused
Grew our Acquisition Workforce for the first time in more than a
decade as we continue to hire a minimum of 1,000 people in the
next three to five years within NAVSEA Headquarters and PEOs.
Participated in a Wounded Warriors Hiring Conference to improve
our hiring practices for our American heroes. In FY09, NAVSEA
hired 80 Wounded Warriors, with NSWC Crane leading NAVSEA
with 31 hires.
Signed into practice our Competency Aligned Organization (CAO)
/ Integrated Program Teams (IPT) Operations Manual, detailing the
structure, operating procedures, and key relationships for a
We’re continuing to build a culture that values diversity.
Received the 2009 Top Supporter of Historically Black Colleges
and Universities (HBCU) Award.
Conducting Diversity Accountability Reviews to examine the
diversity of new hires, as well as determine if there is equal
opportunity for career growth.
Outreach & Mentoring:
We’ve made some great progress in outreach and mentoring America’s next generation
of science, technology, engineering and math (STEM) leaders through our 21st Century
Engagement, Education and Technology Program (21CEETP).
Pioneered the Virginia Demonstration Project (VDP) model that
will be implemented across the rest of the Navy to increase middle
school, high school and community college students’ interest in the
NSWC Panama City mentored 200 students in robot
programming and studying coastal waters at their 2nd
annual STEM Summer Institute.
NSWC Dahlgren mentored more than 200 students in
deploying water rockets as part of the 2009 VDP Summer
NUWC Newport dedicated a new Undersea Collaboration
Technology Outreach Center designed for educational
NSWC Carderock hosted the 10th annual International
Human-Powered Submarine Race.
Norfolk Naval Shipyard hosted its 2nd College Day to
educate local students and university representatives on
Awarded 24 Historically Black Colleges and Universities (HBCU)
scholarships in FY09.
Expanded our undergraduate scholarship opportunities through the
DoD SMART Program, which includes full tuition, an annual
stipend and health insurance for scholarship students.
I told the CNO I was going to ask one thing of the NAVSEA Team in FY10: Stay
focused and continue to produce specific and measurable improvements on issues of
critical importance to the U.S. Navy. Work the right issues and get things in the done
pile. NOW is the time to anchor the great changes we’ve made as a Team and meet the
challenges that face us in the year ahead!
The following focus areas for FY10 are aligned to the SECNAV and CNO top goals and
will help NAVSEA remain on track, and allow us to accomplish our Strategic Business
Sustaining our Current Fleet
Service Life of Ships and Systems
o Optimally align SEA 21, the Surface Ship Lifecycle Management (SSLCM) Activity,
our Regional Maintenance Centers (RMCs), CLASSRONs and TYCOMs to improve
surface ship material condition and ensure our ships reach their full service life.
o Improve execution and quality of aircraft carrier availabilities at private shipyards.
Naval Shipyards Performance: Back to Basics
o Anchor the change in our first year “Back to Basics” initiative, emphasizing quality
performance and continued timely work execution with particular focus on measuring
and improving our Deckplate productivity and efficiency.
o Implement a NAVSEA energy cost reduction strategy for ships, weapons systems and
Building an affordable future Fleet
o Develop a leadership plan (Vision, Strategy, Road Map) for supporting the
Navy’scompetencies and organizational alignment for Unmanned Vehicles.
SUPSHIP Health: Back to Basics
o Implement actions to make SUPSHIPS a more proactive organization in driving
quality performance and execution at private shipyards.
Reduce the Cost of Warfare Center Work
Conduct direct work reviews with customers, utilizing definitive tasking methodology,
to harvest savings.
Conduct overhead reviews to harvest opportunities to spend less money.
o Rebuild our core cost estimating knowledge, skills and processes to assess the true
cost of acquiring and maintaining our ships and systems.
Enterprise Resource Planning (ERP)
o Be fully ready for the ERP Roll Out at NAVSEA Headquarters, SUPSHIPS and
General Fund Activities in October 2010 and Warfare Centers in October 2011.
Enabling our People
Strategic Workforce Planning and Management
o Recruit and develop a 21st century NAVSEA workforce, particularly focusing on
reconstituting our Acquisition talent.
o Engage the current NAVSEA workforce in ways that increase retention of our highly-
skilled and diverse talent.
o Be the Navy leader in hiring Wounded Warriors.
o Measure our progress in diversity hiring and promotion against the baseline we
established in the first round of Diversity Accountability Reviews.
Total Ownership Cost of Ships and Systems
o Strengthen every NAVSEA employee’s awareness of their ability and responsibility
to contribute to reducing Total Ownership Cost of our ships and systems.
o Recognize and reward accomplishments in driving down the cost of acquisition,
lifecycle maintenance or operations.
o In collaboration with NAVSUP, design and deploy an integrated Logistics Strategic
Vision and Tactical Action Roadmap for total ownership cost reduction.
o Develop strategies and actions for ensuring the health of critical industrial base