Accession Number : AD1009177

Title :   A Business Process Analysis of the Surface Navys Depot Maintenance Program

Descriptive Note : Technical Report

Corporate Author : Naval Postgraduate School Monterey United States

Personal Author(s) : Northrup,Donald S

Full Text :

Report Date : 01 Dec 2015

Pagination or Media Count : 101

Abstract : To maintain the Surface Fleet, the Navy spent approximately $7.2 billion in FY2015 and requested $7.8 billion for FY2016. In response to years of costs overruns and missed deadlines, the Navy wants to make better use of these funds by shifting from executing Multi-Ship Multi-Option Contracts with cost plus fee types to Multi-Award contracts with fixed-price fees. The new contract choice will increase competition and shift risk to the contractor. This thesis conducts an in-depth analysis of the contract change process during execution of depot maintenance availabilities using five ships as case studies. It uses lean principles and lessons from buyer-supplier relationship studies to recommend improvements and to answer two questions. Is the Navys current construct prepared to execute a new contract strategy? Is this the best decision to reduce cost and meet schedule requirements? The thesis concludes that process improvement is required before shifting to a new contract strategy, and that improving the working relationship with the contractor is paramount to process improvement.

Descriptors :   naval procurement , CONTRACTORS , naval vessels , maintenance , contracts , cost reduction

Distribution Statement : APPROVED FOR PUBLIC RELEASE