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A High-Value Best-Value Approach to Public Shipyard Human Capital Management to Improve Ship Availability

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Technical Report

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Naval Postgraduate School Monterey United States

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One of the problems faced by public shipyards is delays in completing maintenance, upgrades, and overhauls on ships. The general trend is for ships to be delivered behind schedule, which impacts the U.S. Naval Fleets operational readiness and increases the overall cost burden of availabilities to the U.S. Navy. This study investigates the current public shipyard architecture, the contracting vehicle utilized to award shipyard availability contracts, and the relationship between the public shipyard permanent workforce and the contingent workforce. The investigation consists of analysis of public shipyard availability data and examination of the current architecture of public shipyards. The result of the analysis is the development of a proposed High-Value-Best-Value HVBV system-of-systems approach to managing human capital and contracting efforts in public shipyards. The HVBV system-of-systems approach is intended to increase worker-human capital, including effectiveness and efficiencies, by creating an integrated product team between the permanent and contingent shipyard workforce. Additionally, the HVBV system of systems utilizes the best value contracting approach by selecting the highest performer for the lowest cost, ensuring high performance and minimizing shipyard risk and delays by forcing accountability between the shipyard and the contractor.

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