Agenda Thursday, August 18, 2005 Introductions Technical

1
2005 Ship Manager Services Contracts
2
Agenda

• Thursday, August 18, 2005
• Introductions
• Technical Requirements
• RMS Purpose and Schedule
• Business Requirements
• Contracts Provisions
• Commercial Purchasing Procedures
• Ship Manager Performance Evaluation Assessment
  System (SM-PEAS)
• Award Term Incentive Option Procedures (ATIOP)
• OIF
• Friday, August 19, 2005
• FedBid Demo (Open to all) 830am
• EIS Demo (Open to all) 930am
• VOA Contract Administration (MARAD only)
  1030am
• SM-PEAS/QASP (MARAD only) 1100am
• Company meetings with MARAD personnel (starting
  at 830am based on sign-up

3
Protest Notice

• On Monday, August 15, 2005, American Overseas
  Marine Corporation (AMSEA) filed a protest with
  the Government Accountability Office (GAO)
  challenging the contract awards made for RRF Ship
  Manager Services
• On Tuesday, August 16, 2005, the Head of the
  Contracting Activity authorized continued
  performance on the contracts notwithstanding the
  protest
• On Tuesday, August 16, 2005, all awardees were
  notified of the protest
• MARAD is awaiting a redacted version of the
  protest to provide to all awardees

4
Administrative Matters

• Question Answer Sheets
• Sign-up for Meetings with MARAD Personnel
• Name Tags
• Cafeteria/Snack Bar
• Restrooms
• Breaks
• Building Access

5
Introduction

• Introductory Remarks
• Jim Caponiti, Associate Administrator for
  National Security
• Bill Cahill, Acting Director, Office of Ship
  Operations
• Introductions
• Introductions of Government and Industry
  Personnel

6
Purpose of the Post-Award Briefing

• The Good News YOU WON!
• Discussion of Contractual Requirements
• Discussion of MARADs Performance Expectations
• Significant Differences between the 2000 and 2005
  Ship Manager Services Contracts
• Performance Based
• Award Term Incentive Options
• Time and/or Ships
• SM-PEAS and QASP
• Electronic Invoicing System (EIS)
• Electronic Management/Administration of 2005
  Contracts through the Virtual Office of
  Acquisition (VOA)

7
Confusion

• Contract Period of Performance
• Award/Anniversary Date 27 July 2005
• Base period of performance for all Ship Groups
  except for SG-6 and SG-11
• 27 July 2005 26 July 2009
• Two 3-year Award Term Incentive Options
• Ship Group 6
• Award Date/Anniversary Date 27 July 2005
• Base period of Performance 27 July 2005 26
  July 2006
• Two 1-year Options (Not Incentive Options)
• Ship Group 11
• Award/Anniversary Date 27 July 2005
• Base period of Performance 27 July 2005 26
  July 2007
• Eight 1-year Options (Not Incentive Options)

8
Technical Requirements

• Deliverables
• J-4 contains the list of deliverables
• Revised per Modification 001 (to be issued)
• RMS difficulties send regular email for now.
  Verbal notifications continue as scheduled.
• Authority to change deliverables remains with
  PCO.

9
Technical Requirements

• Joint Material Condition Survey Security
  Validation
• Within 25 days after NTP SM shall provide a
  material condition survey and security validation
  report to the COTR
• At turnover meeting MARAD shall provide a
  printout of all deficiencies per vessel
• The SM Port Engineer and MARAD COTR shall conduct
  a joint material condition survey.
• Copy to MAR-611 of Joint MC survey.
• A baseline assessment of security shall be
  established and may be done concurrently.
• Use MA-58

10
Technical Requirements

• Inventory Validations
• Due within 60 days of NTP
• Joint Inventory Validation Report - MA-1013A
• Spare/Repair Part validation
• Randomly selected 10 of NS5/PC-SAL mission
  essential spare parts
• Accountable Property
• Outfitting Lists
• Technical Documentation

11
Technical Requirements

• Layberth Security Assessment
• Within 30 days of NTP
• The SM is required to assess the layberth
  security and provide recommendations for
  improvement to MARAD
• If no improvement is recommended, advise the
  Regional Office accordingly
• Regions are to provide copies to RMS and Business
  Plan

12
Technical Requirements

• GOAL 1 Ship-centric maintenance program

13
Technical Requirements

• REGULATORY COMPLIANCE
• Maintain and operate vessels in accordance with
  CFRs, inspected by USCG, classed by ABS.
• Voluntary compliance with SOLAS excepted as noted
  in writing by MARAD.
• Voluntary compliance with ISM except as noted in
  writing by MARAD. YOUR safety management plan is
  the ships safety management plan.

14
Technical Requirements

• Alternate Compliance Program
• Enroll all ships in ACP unless waived in writing
  by MAR-611

15
Technical Requirements

• Maintain machinery in ABS PM/CM Program (ROS
  vessels only)
• Maintain all machinery in an ABS approved PM/CM
  program unless waived in writing by MAR-611.
• Include in Business Plan all open and inspect
  requirements to support the SM prepared PM/CM
  program approved by ABS.

16
Technical Requirements

• ISM DOC and SMC
• DOC provided at NTP
• Apply for interim Vessel Safety Management
  Certificate
• ABS fees reimbursable. DOC internal audit fees
  are not reimbursable

17
Technical Requirements

• Readiness
• Notify MARAD (COTR, SOMO, MAR-611) fastest means
  possible (phone followed by email) anytime
  anything happens which would put a vessel into C3
  or C4. (C.2.2.5.1)
• MARAD provides Readiness Report to USTRANSCOM.
  Ship Managers desiring access may request it at
  www.marad.dot.gov/rstars.

18
Technical Requirements

• Existing Ship Documents
• MARAD will provide/has provided copies of VMAs,
  (ship specific P4Ps for non-ROS,) Activation
  Plan, Activation Specification, Operations Plan,
  Deactivation Plan and Deactivation Specification
  at NTP or shortly thereafter to SM.
• SMs will use these to formulate ship specific
  Phase M and Phase O plans and Business Plan

19
Technical Requirements

• Existing ship documents Phase M and Phase O
  Maintenance Plans continued
• SMs will use these to formulate ship specific
  Phase M and Phase O plans and Business Plan.
• C 2.3 to 2.3.1.4 CDRL M-0006, M-0007, M-0008.
• CDRLs are guidelines.
• CDRLS state data begets data. Remember it.

20
Technical Requirements

• Maintenance Activations
• 2005 SM contracts
• No change from Phase M SM per diem.
• Provide cost estimate for maintenance activation
  and/or sea trial in Phase M PM
• Plan and Business plan
• Do not include Repair estimates as part of the
  maintenance activation. Provide repair estimates
  as separate costs in RMS.

21
Technical Requirements

• Corrective Maintenance
• All repair work required shall be accomplished in
  a US ship repair facility unless the work is for
  emergency, or mission essential repairs, or for
  pre-positioned ships which are deployed overseas,
  or for any vessel forward deployed outside of the
  United States.

22
Technical Requirements

• Corrective Maintenance and Repairs
• Subject to availability of funds/Business Plan
• From identification to remedy of unsatisfactory
  condition
• Enter into RMS clear and concise SOW that
  includes cost estimate, planned performance
  period, impact to readiness.
• Deferrable/Non-deferrable.
• Track priority work items if funds become
  available we need to quickly access.
• C2, C3, or C4.

23
Technical Requirements

• Up-grades and Recapitalization
• Propose long term projects

24
Technical Requirements

• Verification of OnBoard Documentation
• Standard Administrative Filing Cabinet
• Can be completed concurrently with the joint
  material condition survey
• List of Content, see Section C.4.2.7
• NS5/PC-SAL (Part of turnover inventory
  validation)
• Validation of documentation tracked by NS
  5/PC-SAL
• Drawings and Technical Manuals
• Due within 60 days of NTP

25
Technical Requirements

• Severe Weather Plan
• Required for outported vessels within 60 days of
  NTP
• Each RRF vessel has a current one (Request from
  regions as necessary)
• Each NDRF site has its own plan, which covers
  RRF-10 and RRF-20 vessels
• USCG approved severe weather plans for any
  layberth location will be provided to the
  incoming SM for review

26
Technical Requirements

• Notification of US Coast Guard
• Within 5 days of NTP
• Region will notify USCG COTP that it is the
  designated operator for a specific RRF vessel

27
Technical Requirements

• Testing Services
• 2005 SM Contracts -Continuation of Technical
  Ordering Officer Letter
• Fleetwide Water Chemistry Program and Lube Oil
  Analysis Program
• MARAD will issue delegation of technical
  ordering officer letters upon completion of
  training
• Submit names to MAR-611 of your nominees as
  ordering officers for the Fleetwide Water
  Chemistry Program.

28
Technical Requirements

• Business Plan
• SMs are responsible for developing the business
  plan
• Current Year
• Budget Year (current yr plus 1)
• Four more years
• For accurate cost estimates,
• For preventative and corrective maintenance
• For regulatory surveys and inspections
• For required resources and justifications,
• For making recommendations with respect to future
  activities/upgrades to the vessels

29

• Business Plan
• See C2.5 and 2.6 for components of Business plan
• Emergent work
• Broad-based categories enhanced over time
• Maintain RMS data.
• Maintain historical data by equipment, system, or
  space.
• Append as necessary.

30
Technical Requirements

• GOAL 2 Support of core activities
• Logistics
• Activation
• Operations
• Deactivations

31
Technical Requirements

• Logistics
• Account for all GFP
• PC-SAL/RMS
• Auditable records
• Report anything missing technical manuals, ship
  drawings
• Acquisition of spare parts
• Ordering something not required check first

32
Technical Requirements

• Logistics and the Business Plan
• Integrate into annual Business Plan requirements
  for acquisition of spare parts
• See C-3.1 for details

33
Technical Requirements

• Consumables
• 2005 SM Contract
• Consumables are GFP at Turnover.
• Regions may task SM to supply them as required on
  a reimbursable basis

34
Technical Requirements

• Activations (excluding Maintenance Activations)
• Per diem changes on X-day.
• For example if vessel is a 5 day vessel, 5 days
  before it is required to be Ready For Sea the per
  diem changes. (notice/no-notice)
• Incorporate cost change into Business Plan.

35
Technical Requirements

• Activation Plan
• Is a deliverable.
• Standard Activation/Deactivation Cost estimates.
• Cross-check costs into Business Plan
• Notice Activations may have unique requirements
  which must also be added to the Business Plan.

36
Technical Requirements

• Activation SITREP
• 2005 SM Contract
• C3.2.7.1.1 status reports - CDRL A-0002.
• Special reports due in RMS - CDRL A-0003
• C-3.2.7.1.7 Lessons Learned after major
  operations - CDRL-A-0008.

37
Technical Requirements

• Activation Support includes
• Crew lists
• Task order accounting
• Crew questionnaire
• Crew vetting
• Storing and provisioning
• Directing work of all sub-contractors

38

• Nautical Charts and Pubs
• MARAD is transitioning to Electronic Charts.
• See modification 0001 (to be issued)
• Slop Chest
• Slop chest not reimbursable.

39
Technical Requirements

• Operations
• Separate briefing on OIF 05-07 later today
• Emphasis on crew and officer orientations
• See Section C5.10 to end on FOS crews
• CASREP system its use/importance
• Training in SOTRS and MERCOMMS
• Operational Reporting
• Include MARAD even when MSC doesnt
• Ops Center special reporting times.

40
Technical Requirements

• Phase O Sea Speed for MSC Missions
• 1993 SM Contract
• No formal Requirement
• 2000 SM Contract
• TE-7 lists by vessel
• 2005 being Revised by MAR-611
• New TE-7 will be provided
• SMs should make recommendations regarding
• TE-7 when appropriate.

41
Technical Requirements

• GOAL 3 Support Safety, Environment, and Security

42
Technical Requirements

• SM Safety Manual/System
• Part of SMs ISM Certification
• Within 90 days of NTP SM must provide 2 copies of
  SMs Safety Manual to MARAD for review
• Master - Final Authority
• No safety manual relieves the Master of his
  authority or responsibility for the safety of the
  vessel, its passengers and cargo
• MARAD provides safety guidance TE-1 Section 18.

43
Technical Requirements

• Safety Recognition
• 2005 SM Contract
• Selected offerors intend to apply their
  commercial safety plan, which includes a monetary
  recognition of outstanding or sustained safety or
  environmental performance given to the crew for a
  defined period of no injuries/no spills
• This is not a reimbursable item
• MARAD personnel may continue to recognize
  outstanding crew performance through letters of
  appreciation, the Administrators annual award,
  or vessel plaques/ceremonies

44
Technical Requirements

• Mariner Health
• Quarterly reporting by email
• Any part your want password protected, give
  password to Jean Barile
• Next safety meeting will focus on mariner health
  issues. Will be held this winter.
• For reoccurring incidents check function of your
  safety plan

45
Technical Requirements

• Mooring Plan
• Deliverable. C4.1.13
• Obtain from Region or MAR-612

46

• Environmental Protection
• Develop all necessary plans, procedures and
  policies to promote environmental protection.
• Report any spill of any size.
• Failure to comply with environmental regulations
  is a major performance issue. For questions - Ask
  in a timely manner.
• Minimize retention of HAZMAT.
• Dispose of IAW CFRs, State and local regs.

47
Technical Requirements

• Security Plan
• Due within 90 days of NTP
• Region will provide USCG approved security plan.
  Review and re-submit to USCG. Incorporate annual
  assessment. Reviewed and valid or reviewed and
  changed.
• Procedures for Threats to Vessel
• Security Drills
• Call back lists
• Detailed in Contract Section C-4.3.4.3

48
Technical Requirements

• Security Watches for Outported Ships
• Internal Security
• Provide resources, programs, procedures to
  provide routine internal security for ROS vessels
  24/7
• Routine involves responding to vessel alarms,
  maintain operational shipboard equipment and the
  prevention of unauthorized personnel from vessel
  entry
• The vessel must be manned 24/7 by someone who can
  properly respond to a fire, security breach, or
  equipment failure. See C-4.3.2

49
Technical Requirements

• Security
• Obtain Facility Clearance
• Control/dispose of classified materials properly
• Review Vessel Security Plan
• Notify MARAD of Vessel Security officer and
  Company security officer contact s.
• Heightened security reimbursable.

50
Technical Requirements

• Security - continued
• Brief Crew on security
• Train crew in required force protection and
  general awareness
• Provide Second Seamans War Risk Insurance
  coverage 365 days. Special requirements for
  exclusion zones.

51
Technical Requirements

• GOAL 4 Ability to adequately crew the ship with
  qualified marine personnel.

52
Technical Requirements

• Shoreside staffing
• Presidents data NTP deliverable. Have not seen
  this. Due to MAR-610.
• Emergency POC.

53
Technical Requirements

• Management POC
• Required within 7 days of NTP
• Not intended for daily contact/restricted contact
• Additional corporate information
  (names/addresses) due within 30 days of NTP to
  MAR-611.
• This information must be kept up-to-date

54
Technical Requirements

• Port Engineering Services
• MARAD approval of a specific port engineer is not
  required or requested.
• Services differ by contract.
• Single PE
• Multiple PEs
• Assistant PE
• Administrative Assistant
• Combinations
• Need names/contact numbers

55
Technical Requirements

• Port Engineering Team
• 2005 SM Contract
• On-Site Facility Required
• Near the pier/close proximity to the berth
  (trailer or equivalent) within 2 hours of vessel
  C.5.1.6.1
• Multiple Port Engineers may share one facility
• A Port Engineer may have a temporary office on
  the ship. Be forewarned it may be removed during
  activation/operation. (see change in Mod 0001)
• There is no specific geographic requirement for
  Port Engineers of Non-ROS vessels

56
Technical Requirements

• Employee Removal
• MARAD is NOT the employer of the Port Engineer,
  ROS or FOS crewmembers
• However, MARAD can and will comment upon
  performance
• Due to the unique representational authority of
  the Master, who represents you and the owner,
  MARAD reserves the right to approve in advance or
  request removal of the Master through the
  Director, Office of Ship Operations.

57
Technical Requirements

• ROS Crewmembers
• ROS crews are employees of SM
• SM may provide newspapers, magazines,
  recreational videos, cable TV at its own expense

58
Technical Requirements

• ROS Crews Vacation and Sick Leave
• Vacation pay of 1.5 days/month or 18/year is
  factored into per diem
• Sick leave is 1 for 30 (max 12 days per year)
  included in the per diem and is between the SM
  and its employee.
• ROS leave not used at end of contract is lost.
  SMs receive no reimbursement for it.
• Gapped Billets
• A crewmember has permanently left the vessel
• MARAD is owed adjustment for gapped billets

59
Technical Requirements

• ROS Crew Time and Attendance
• Maintain auditable Records
• For Gapped Billets
• For absences

60
Technical Requirements

• ROS - Overtime
• Emergencies
• Overtime is generally authorized in any phase in
  case of emergencies
• SM must notify MARAD within 48 hours of the
  emergency occurrence and report the amount of
  overtime incurred and the justification
• PHASE M
• Overtime is generally NOT authorized and must be
  approved in advance and be clearly justfied.

61
Technical Requirements

• ROS Subsistence
• 2005 SM Contract
• Fixed Price
• No additional reimbursements to be paid
• Subsistence, if paid for weekends and holidays,
  is included in the ROS Fixed Price CLIN
• No additional reimbursement for ROS Crew
  subsistence will be paid by MARAD except for
  incidences of loss of hotel service or temporary
  duty assignments

62
Technical Requirements

• ROS Clerical Support
• Under the 2005 SM contract, complete support for
  each group was priced into the fixed price CLIN
• Where clerical support was proposed in your
  proposal - it is expected.
• Additional personnel may be approved/reimbursed
  for specific tasks only, after review and
  approval by MARAD

63
Technical Requirements

• ROS Telephones, Cell Phones Pagers
• 3 phone lines per ROS vessel
• It is NOT the responsibility of the SM to provide
  cellular phone and pages for Government personnel
  during vessel visits

64
Technical Requirements

• ROS Non-P4P Consumables
• The following items are at the SMs expense
• Office supplies, forms, postage, FEDEX or UPS
• Ship Phone Charges beyond the three, Crew
  Entertainment, Linen service, Stewards cleaning
• Gear and supplies, batteries for flashlights,
  paper goods, galley degreasers, ear plugs, hard
  hats, goggles, rubber gloves
• ROS special clothing, vessel hats with logo.
• There may be Special occasions which are an
  exception to this. Follow COTR direction.

65
Technical Requirements

• ROS Expendables and Non-Expendables
• SM replaces initial quantity provided as GFP
• These are reimbursable.
• There are no expendable allowance lists currently
  available.

66
Technical Requirements

• ROS Spare Parts
• Phase M
• ROS Crewmembers shall make use of the shipboard
  inventory of spare parts for all unscheduled
  maintenance and repairs
• SM must obtain MARADs authorization to obtain
  spare/repair parts from outside sources when the
  same parts are available onboard the vessel
• SM may require order parts as part of the
  specification for Industrial assistance work.
  Conversely, if a SM has a vendor coming, it may
  order ahead of time, a replacement part for that
  which is onboard and will be used by the vendor.
• See TE-5 for guidance

67
Technical Requirements

• ROS CLIN Crew Ratings
• Offerors proposed all ROS positions fully
  burdened.
• Should changes become necessary, they must be
  coordinated with HQ (MAR-611/MAR-380) to ensure
  accurate crew pricing.
• Any changes to original proposal requires a
  detailed justification and PCO approval BEFORE it
  occurs.

68
Technical Requirements

• GOAL 5 Comply with Government and Company
  business policies, procedures and practices
• Commercial Procurement Procedures and J2 (will
  return to this in a minute.)

69
Technical Requirements

• Quality Assurance and Management Plan
• Your deliverable.
• Due within 90 days of NTP
• Contract ref C-6.7.2.1
• This is not the QASP which is the Government plan
  for Quality Assurance Surveillance.

70
Technical Requirements

• Goal 6 Effectively manage and control costs

71
Technical Requirements

• Invoicing
• Section G.25 through G.29
• SMs are responsible for verifying the validity
  and accuracy of ALL vendor invoices
• MARAD will reclaim overpayments from SMs
• Repeated invoice inconsistencies and errors are a
  reflection of poor quality processes and will
  impact the SMs performance evaluations
• There will be an electronic invoicing
  demonstration tomorrow.

72
Technical Requirements

• Business Plan
• SMs are responsible for developing the business
  plan
• Current Year
• Budget Year (current yr plus 1)
• Four more years
• for accurate cost estimates,
• For preventative and corrective maintenance
• For regulatory surveys and inspections
• For required resources and justifications,
• for making recommendations with respect to future
  activities/upgrades to the vessels

73
Technical Requirements

• Medical Invoice Review Service
• 2005 SM Contract requires
• SMs must provide a third party to assist with
  reviewing and validating costs submitted on
  medical invoices
• SMs must provide a copy of the service agreement
  to the ACO
• SMs were encouraged to obtain a service working
  on a percentage of savings basis
• This is a reimbursable item

74
Technical Requirements Deliverables

• RRF Management System (RMS)
• Capabilities
• Data Integration
• Strategic Planning
• Budget Development
• Business Planning
• Program Project Management
• Historical maintenance cost data
• Maintenance management capability, including
  maintenance machinery history
• Automated tracking process towards measurable
  goals for RRF strategic objectives business
  processes
• Single Point of data entry seamless interfaces
  with various support systems

75
Technical Requirements Deliverables

• RRF Management System (RMS)
• Replaces the following legacy systems
• MARAD Automated Vessel Information System
  (MAAVIS)
• Maintenance and Repair Tracking System (MARTS)
• PC-SAL
• Project Administration System (PAS)
• Maritime Logistics Support System (MLSS)
• Desired Future Interfaces
• Electronic Invoicing System
• Free Balance (MARADs Financial System)
• IDEAS-PD (MARADs Electronic Contract Writing
  System)

76
Technical Requirements Deliverables

• RRF Management System (RMS) use under the
  contract
• Submittal medium for many deliverables (see J-4)
• Development of RRF Business Plan

77
Ready Reserve Force (RRF) Management System
(RMS)
August 18, 2005
Maritime Administration
78
RMS Background

• 10/00 10/02 Business Process Review
• 11/02 11/03 Alternatives Analysis
• 11/03 11/04 Pre-Procurement Phase
• 11/04 Contract Award to NS Nautical
  System for COTS Program
• 12/04 04/05 Data Analysis, Conversion and
  Software Configuration
• 04/05 05/05 Installation and Initial Training
• Headquarters and 3 Regions
• 9 Ship Managers
• 36 ROS Ships
• 06/05 Follow-on Support

79

• RRF SHIPS CONVERTED TO NS5

Non RRF School Ships EMPIRE STATE
ENTERPRISE GOLDEN BEAR STATE OF MAINE STATE OF
MICHIGAN TEXAS CLIPPER II
Tacoma, WA R-5 - CAPE INTREPID R-5 - CAPE ISLAND ?
B - Breakbulk O - Tanker R - RO/RO T -
TACS A - TAVB L - LASH OP - OPDS S
- SEABEE TP - Troop Readiness 4 (ROS), 5
(ROS), 10, 20, days from notice to activate
Suisun Bay Reserve Fleet, CA T-20-BEAVER STATE
? T-20-GREEN MT STATE ?
Baltimore, MD A-5 - WRIGHT ? R-5 - CAPE
WASHINGTON ? R-5 - CAPE WRATH ?
Alameda, CA B-5 - CAPE GIBSON ? B-5 - CAPE
GIRARDEAU ? L-10 - CAPE FEAR ? R-5 - ADM
CALLAGHAN ? R-5 - CAPE ORLANDO ? R-10 - COMET
? R-10 - METEOR ? S-5 - CAPE MOHICAN ? T-5 - GEM
STATE ? T-4 - GRAND CANYON ST T-5 - KEYSTONE
STATE
James River Reserve Fleet, VA
Newport News, VA T-5 - CORNHUSKER STATE ? T-5 -
FLICKERTAIL STATE ? T-10 - GOPHER STATE ?
t
t
t
Portsmouth, VA R-5 - CAPE RACE ? R-5 - CAPE RAY
? R-5 - CAPE RISE ?
Houston, TX R-5 - CAPE TAYLOR ? R-5 - CAPE
TEXAS ? R-5 - CAPE TRINITY T-4 - DIAMOND
STATE ?
San Francisco, CA R-5 - CAPE HENRY ? R-5 -
CAPE HORN R-5 - CAPE HUDSON
Norfolk, VA S-5 - CAPE MAY ?
Beaumont/Port of Orange, TX R-5 - CAPE VICTORY ?
R-5 - CAPE VINCENT ? L-5 - CAPE FLORIDA
? Beaumont Reserve Fleet, TX L-10 - CAPE FAREWELL
? L-10 - CAPE FLATTERY OP-10 - POTOMAC ? T-20
- EQUALITY STATE ?
New Orleans, LA R-5 - CAPE KENNEDY R-5 - CAPE
KNOX ?
Long Beach, CA R-5 - CAPE INSCRIPTION ? R-5 -
CAPE ISABEL ?
Wilmington, NC R-10 - CAPE LAMBERT ? R-10 -
CAPE LOBOS ?
San Diego, CA A-5 CURTISS ?
Charleston, SC R-5 - CAPE DECISION ? R-5 - CAPE
DIAMOND ? R-5 - CAPE DOMINGO R-5 - CAPE DOUGLAS
R-5 - CAPE DUCATO R-5 - CAPE EDMONT ?
Extended Operations B-5- CAPE JACOB-Saipan
OP-5 - CHESAPEAKE -Diego Garcia OP-5 -
PETERSBURG-Guam
Tsuneishi, Japan O-10 - ALATNA ? O-10 -
CHATTAHOOCHEE ? O-10 - NODAWAY ?
NATIONAL DEFENSE RESERVE FLEET ANCHORAGES
80
RMS Components

• Other Core Functions
• Common IT Configuration
• Shipboard Networks
• Replication and Communications
• SeaWave Satellite Communications

• NS5
• MR
• Logistics
• Budget
• Purchasing

81
RMS Team
82
Fleet Concept
CAPE R PE CAPE RAY, CAPE RACE, CAPE RISE
CAPE RACE CE CAPE RACE
MARAD CENTRAL
KEYSTONE CAPE Rs, CAPE Ks, CAPE Vs
SAR 43 SHIPS
83
RMS Challenges

• Install new databases at SMs
• Complete RO-RO communications/replication
  upgrades prior to activation
• Provide additional training to all users
• Ensure rapid response to Help Desk requests
• Convert remaining CONUS ships to NS5/RMS by 30
  September
• Redesign vendor database
• Restructure configuration hierarchy
• Build financial interfaces / Incorporate program
  enhancements
• Incorporate shore-based spares in database
• Convert PREPO ships and school ships

84
Business Requirements

• Contract provisions
• Section E.2, Performance Quality Control
• Failure to meet minimum quality standards may
  result in the following
• Re-Performance by the Ship Manager
• Re-performance by the Government (costs charged
  to the SM)
• Reduction in per diem
• Partial Termination for default
• Termination for Default

85
Business Requirements

• Contract provisions
• Section F.3, Notice to Proceed (NTP)
• Issued for all but four Ships on 28 July 2005
• Some turnovers are dependent on vessel
  operational status and/or participation in
  exercises

86
Business Requirements

• Contract provisions
• G.2 Type of Contract
• Firm-Fixed Price Service Contract with
  Cost-Reimbursable Line Items
• Subject to Economic Price Adjustment (EPA)
• Service Contract Act (SCA)
• Fair Labor Standard Act (FLSA)
• Multi-year (except SG-6) with Cancellation
  Ceilings
• Award-term incentive options (except SG-6 and
  SG-11)
• Incrementally funded

87
Business Requirements

• Contract provisions
• G.2 Type of Contract
• Base performance period was priced inclusive of
  escalation (both fixed price and ROS crew wages)
• Adjustment for incentive option periods will be
  made based on CBAs (ROS crew wages) and Consumer
  Price Index (other fixed price)
• Incentive Option Additional Vessels
• Proposed based on Base Year 4 for generic
  vessel
• Per diem rate to be escalated based on the year
  in which the option, if any, is exercised

88
Business Requirements

• Contract provisions
• G.3 Directions by Government Personnel
• Contracting Officer Technical Representative
  (COTR)
• Responsible for monitoring the technical aspects
  of the contract
• Responsible for final inspection and acceptance
  of designated reports
• Responsible for review and approval
  recommendation of designated invoices
• May be assisted by an Assistant COTR (ACOTR)
• Copy of appointment letters to be provided to
  pertinent Ship Managers
• The COTR can NOT
• Make commitments or obligate the Government for
  any changes, which affect the contract price,
  terms or conditions
• Direct Subcontractors

89
Business Requirements

• Contract provisions
• G.6(c) Understanding Government Authorities
• Director of Acquisition appoints the Procuring
  Contracting Officer (PCO), Rilla A. Gaither
• The PCO delegates specific authorities to the
  Administrative Contracting Officers (ACO), but
  retains the authority to solicit, award and
  modify the basic terms and conditions of the
  contract
• The Chiefs of Contracting Office (COCO) appoint
  qualified ACOs and may perform all duties of the
  ACO
• ACO has the authority to appoint COTRs and ACOTRs

90
Business Requirements

• Contract provisions
• G.7. Claims and Litigation
• The SM is considered the agent of the U.S. within
  the meaning of the Suits in Admiralty Act (SIAA),
  the Public Vessels Act, and the Admiralty
  Extension Act for all third-party tort actions in
  admiralty cognizable under the Jones Act, General
  Maritime Law, or the Clarification Act, inclusive
  of claims for maintenance and cure
• The SM is NOT an agent of the U.S. under the
  Contract Disputes Act
• The SM is NOT an agent of the U.S. for
  non-admiralty actions, particularly
  employer/employee disputes
• The SM is NOT an agent of the U.S. when the SM
  acquires products or services as a prime
  contractor from a subcontractor under the
  procedures set forth in Attachment J-2 there is
  NO privity of contract between the subcontractor
  and the Maritime Administration

91
Business Requirements

• Contract provisions
• G.7.4. Indemnification
• The SM agrees to indemnify and hold the U.S.,
  MARAD, and its employees and agents harmless from
  any damages, loss, or injury resulting either
  directly or indirectly from
• Acts of Gross Negligence, Willful Misconduct or
  Violations of Law or Regulations of the Senior
  Management of the SM or
• Acts of Gross Negligence, Willful Misconduct, or
  Violations of Law or Regulations performed by
  employees, servants, contractors, subcontractors,
  suppliers or agents of the SM and which occurred
  with the Privity or Knowledge of Senior
  Management of the SM
• All third-party actions not in admiralty
• All maritime liens by third parties
• Damage caused by a subcontractor or its agents or
  employees during the performance of the work

92
Business Requirements

• Contract provisions
• G.11 Task Orders Reimbursable
• Any reimbursable supplies/services to be
  furnished by the SM will be authorized via Task
  Order
• Prior to issuance, SM must provide a written
  specification, or a clear/concise Statement of
  Work, cost time estimate for review
• TO is considered issued when posted
  electronically
• It is the SMs responsibility to track all funds
  expended under reimbursable TOs, specifically
  status of purchase order(s) issued, funds
  obligated, expended and closed-out

93
Business Requirements

• Contract provisions
• G.14 Types of Invoices
• All invoices to be submitted electronically via
  the MARAD Electronic Invoicing System (EIS) at
  https//www.marad.dot.gov/EIS/
• User accounts must be set up via request to the
  PCO
• EIS Website contains an Instructional Manual
• EIS Demonstration to be provided on 19 August

94
Business Requirements

• Electronic Invoicing System (EIS)
• Anticipate integration into VOA
• Being revised to allow for broader access beyond
  Ship Managers
• Some minor changes from previous system
• Allows qualified SMs to submit fixed price and
  reimbursable invoices electronically with summary
  information
• Allows for supporting documentation upload
• Allows SMs to track invoice approval process
• SMs are responsible for retaining invoices and
  supporting documentation
• Qualified SMs
• Must have DCAA approved process, i.e. invoices
  must be generated within the SMs accounting
  system
• Certifications have been provided to new SMs and
  those not previously approved to allow for
  conditional approval until a DCAA audit can be
  performed

95
Business Requirements

• Contract provisions
• G.17 J-2 Commercial Purchasing System
• SMs must submit commercial purchasing procedures
  to the PCO within 90 days of NTP
• Procedures will be audited by the Defense
  Contract Audit Agency (DCAA) however final
  approval rests with MARAD
• SMs with approved commercial purchasing
  procedures (by MARAD or other Government entity)
  must still submit procedures however prior
  approval will apply if consistent with J-2
  requirements

96
Business Requirements

• J-2 Ship Manager Subcontract Purchasing Policies
• Commercial Purchasing System (CPS) Review
• IAW FAR 44.303 and emphasis on
• Best Value Practices
• Acquisition of quality products services at
  fair and reasonable prices
• Minimization of acquisition lead-times and
  administrative cost of purchasing
• Use of self-assessment to support continuous
  improvements in purchasing
• Ability to segregate and track costs
• Maintenance of complete subcontract documentation
• Use of electronic commerce to the maximum extent
  practicable
• Procedures for assessing and tracking successful
  past performance records for vendors
• Procedures for inclusion of appropriate, current
  flow-down clauses

97
Business Requirements

• J-2 Ship Manager Subcontract Purchasing Policies
• Maintenance of CPS
• At least every 3 years MARAD will determine
  whether a purchasing system review is necessary
• MARAD conducts annual cost incurred financial
  audits
• Interim audits may be ordered if deemed necessary
• If deficiencies are noted during contract
  performance, the advance notification/consent
  thresholds may be lowered
• If the deficiency is not corrected, MARAD may
  withdraw the CPS approval to protect the
  Governments interests

98
Business Requirements

• J-2 Ship Manager Subcontract Purchasing Policies
• Consent to subcontract requirements
• Clear analysis of the award decision
• Copy of proposals abstract of proposals
• Copy of proposed subcontract
• Summary of negotiations
• Bonding and insurance information
• Specific funding requirements
• Milestone schedule
• Solicitation review
• Specification review is always required
  regardless of the level of subcontract review
• Solicitation package must include
• Solicitation
• Documentation of specification review (by
  COTR/ACOTR)
• Source List
• Detailed Estimate
• Basis for determination of liquidated damages,
  bonding, insurance etc.

99
Business Requirements

• J-2 Ship Manager Subcontract Purchasing Policies
• Mission Essential and Emergency Repairs (Foreign
  Domestic)
• Definitions for mission essential and
  emergency are provided in J-2
• Notify the ACO and COTR/ACOTR as soon as possible
• Minimum requirements
• Define the intended work in as much detail as
  possible
• Develop an estimate and initial not-to-exceed
  value
• Make all attempts possible to obtain competition
• Obtain fixed price rates for subcontracted labor,
  burdened material
• Recommend project start and completion dates
• Obtain verbal authorization from the ACO as soon
  as possible

100
Business Requirements

• J-2 Ship Manager Subcontract Purchasing Policies
• Ship Manager Responsibilities Cautions
• SM may solicit subject to the availability of
  funds however, SM shall not sign a contract or
  incur a legal obligation without a funded TO
• SM must notify the ACO in writing when 75 of the
  funds provided on the TO have been expended
• SM must report the total number and dollars of
  subcontracts awarded by preference category/type
  of business
• SM is responsible for complete subcontract file
  documentation
• SM is responsible for the verification and
  accuracy of all subcontractor invoices
• SM is responsible for resolving subcontract
  disputes (remember the SM is NOT an agent of
  the Government for subcontracting purposes)
• A subcontract shall not include terms that bind
  the Government to the results of arbitration,
  judicial determination or voluntary settlement
  between the prime contractor (SM) and the
  subcontractor
• SM must include appropriate flow-down clauses
• SM is responsible for verifying that proposed
  subcontractors are not suspended and/or debarred
• SM is responsible for evaluating subcontractor
  performance

101
Award Term Incentive Option Plan (ATIOP)

• ATIOP provides for the evaluation of both
  technical and price performance
• Serves as the basis for any award term
  additional vessel option decision
• May be unilaterally revised by the Government
• The Government has the unilateral right not to
  exercise the Award Term Incentive Option if
• The SM has failed to earn an award term by the
  end of the third year of contract performance
• The SM, after earning the first award term, fails
  to earn an award term in any succeeding year of
  contract performance
• Services are no longer needed
• Option exercise would be inconsistent with FAR
  Subpart 17.2
• Failure to exercise an award term option based on
  the reasons above
• Is NOT a Termination for Convenience or a
  Termination for Default
• Does not entitle the SM to any termination
  settlement or other compensation

102
Award Term Incentive Option Plan (ATIOP)

• Currently being revised for consistency with the
  QASP and SM-PEAS
• MARAD will consider the following in making the
  option exercise determination
• SMs performance in terms of the criteria stated
  in the ATIOP
• Results from Contract Administrative Reviews
  (CARs)
• Information contained in SM-PEAS
• Option exercise is at the sole discretion of the
  Government

103
Award Term Incentive Option Plan (ATIOP)

• The determination to exercise an incentive option
  is contingent upon the
• SM maintaining excellent levels of ongoing
  performance in all areas of the contract
• SM exhibiting continuous improvements in
  performance
• SM exhibiting reduction of costs
• SM exhibiting efficient/effective use of
  Government resources
• Award term incentives are designed to reinforce
  the importance of overall superior contract
  performance

104
Award Term Incentive Option Plan (ATIOP)

• Evaluation Process
• Initial performance evaluation will be completed
  at the end of the 9th month of performance of the
  base year
• This evaluation period will be scored but not
  counted in the Award Term Decision Point
• This is considered a wake-up period for the SM
• Government will identify areas of performance
  impacting the SMs ability to obtain an award
  term/vessel incentive option
• MARAD will complete a performance evaluation
  every 6 months thereafter, following the initial
  9-month evaluation, which will be scored and
  considered in the award term incentive
  determination
• To determine whether to grant the initial or
  subsequent award term incentive option, MARAD
  will consider the four (4) most recent
  evaluations

105
Award Term Incentive Option Plan (ATIOP)

• Evaluation Process
• Each evaluation will be worth 1,000 points
• To earn the first award term incentive option,
  the SM
• Must have accumulated a minimum of 3,100 points
  (max possible is 4,000 points)
• Must have no more than 1 individual evaluation
  receiving a score of less than 700 out of 1,000
  points
• The PCO will notify the SM no more than 90 days
  and no less than 60 days prior to the end of the
  performance period
• If the SM decides not to accept the incentive
  option (vessel or term), the SM must notify the
  PCO in writing no later than 240 days prior to
  the start of the applicable award term period

106
Award Term Incentive Option Plan (ATIOP)

• Evaluation Process
• Evaluation Criteria
• Quality of Service
• Cost Control
• Timeliness of Performance
• Contractor Business Relations
• Evaluation Performance Elements
• Responsive and High-Quality of Fleet Maintenance
  Requirements
• Successful Performance and Support of Core RRF
  Requirements
• Adherence to Sound Safety, Security and
  Environmental Standards and Practices with No
  Adverse Impact on Personnel, Environment and
  Property
• Adequacy of Vessel Crewing with Qualified Marine
  Personnel
• Compliance with Government and Company Business
  Policies, Procedures and Practices
• Effective Management and Control of Costs

107
Award Term Incentive Option Plan (ATIOP)

• NOTE
• The SM does not earn an award term incentive
  option or additional vessel option solely by
  meeting the criteria in the ATIOP
• MARAD will consider results from CARs, and
  information contained in SM-PEAS

108
Ship Manager Performance Evaluation and Appraisal
System (SM-PEAS)

• SM-PEAS composition
• Quality Assurance and Surveillance Plan
  Performance Elements Performance Inspection
  Report (QASP-PE-PIR)
• Ship Manager Performance Appraisal Report (SMPA)
• Contract Quality Deficiency Report (CQDR)
• Ship Manager Performance Recognition Report
  (SMBZ)

109
Ship Manager Performance Evaluation and Appraisal
System (SM-PEAS)

• SM-PEAS
• FAR 42.1502 requires the CO to conduct interim
  and final evaluations on active contracts
• SM-PEAS was designed to achieve standardization
  in documenting performance
• Web-based quality assurance surveillance and
  performance evaluation system
• Access to specific modules is based on user
  access rights
• QASP module will be available September 2005
• Remaining modules are under development and will
  be available by December 2005
• SM-PEAS to be integrated into the Virtual Office
  of Acquisition (VOA)

110
Ship Manager Performance Evaluation and Appraisal
System (SM-PEAS)

• QASP-PE PIR (Quality Assurance Surveillance
  Plan Performance Elements Performance
  Inspection Report)
• Reports can be created at any time
• Provides qualitative and quantitative evaluation
  of the SMs performance relative to 6 specific
  performance goals
• Responsive high quality of fleet maintenance
  requirements
• Successful performance and support of core RRF
  Requirements
• Adherence to sound safety security
  environmental standards
• Adequacy of crewing vessels with qualified marine
  personnel
• Compliance with Government and company business
  practices
• Effective management and control of costs

111
Ship Manager Performance Evaluation and Appraisal
System (SM-PEAS)

• QASP-PE PIR
• Each performance goals has from 1-5 Performance
  Elements (PEs) that must be assigned specific
  ratings
• Exceeds Standards
• Meets Standards
• Unsatisfactory
• Each QASP-PE-PIR has an associated check-off list
  for a specific PE
• Check-off lists consist of a varying number of
  quality assurance related performance measures to
  assist the evaluator to document finding and
  inspection results
• Upon completion of the inspection report it will
  be released to the SM in the system
• The Inspection Report is provided to the SM as a
  courtesy only

112
Ship Manager Performance Evaluation and Appraisal
System (SM-PEAS)

• The QASP-PE-PIR reports are cumulative in nature
  and become an integral part of the Ship Manager
  Performance Appraisal (SMPA) report
• The SMPA become a major element in the Award Term
  determination

113
Ship Manager Performance Evaluation and Appraisal
System (SM-PEAS)

• Benefits of the new improved SM-PEAS
• Web based system allows for access from anywhere
• Release of performance reports through the system
• Measurement of quality performance standards is
  consistent with regulatory requirements
• More transparency for all users, both on the
  Government and the industry side
• Consistency across evaluators and regions

114
Ship Manager Performance Evaluation and Appraisal
System (SM-PEAS)

• QASP Performance Elements
• PMP Execution
• Regulatory Body Classification/Certification
• Readiness of Vessel
• Quality/Completeness of Business Plan
• Logistics
• Quality of Vessel Activation and Deactivation
• Quality of Ship Operations Phase O
• Environmental
• Safety
• Security
• Contract Manning Levels and Quality
• Quality Assurance
• Acquisition Procedures
• Acquisition Operations
• Deliverables
• Effective Management and Control of Costs