Integrated Deepwater System ICGS Structure Deepwater Program Background

1
Integrated Deepwater System ICGS Structure
/Deepwater Program Background

• Innovation Industry Days
• Bob Conrad, ICGS Vice President,
  OperationsSeptember 6, 2006

2
Current Coast Guard Capabilities
The average age of CG Deepwater cutters is 29 ...
The Coast Guard fleet of High and Medium
Endurance Cutters is older than 37 of the 39
(Naval) fleets worldwide...
3
Integrated Deepwater System

• Performance Based
• Focus on capabilities not assets Not a one
  
  for one replacement
• Acquisition Strategy
• Partner with system integrator
• Acquire integrated system of surface, air, C4ISR,
  and logistics systems

• Overarching Objective
• Maximize Operational Effectiveness
• while Minimizing Total Ownership Costs

4
Performance Based Contracting

• Indefinite Delivery / Indefinite Quantity (IDIQ)
  Contract
• 5-year Base Period
• Multiple Contract Types (CFAF,CPIF, FFP, TM,
  CPFF)
• Fully Funded Delivery Orders (Useable Segments)
• Very complex contract structure
• Award Term
• Five 5-year Award Terms
• Overarching Incentive Clause
• Performance Measurement Plan
• Value Engineering Change Proposals
• Joint Incentive Management Plan
• Partnership Agreement
• Day to Day Rules of Engagement
• Alternate Dispute Resolution
• Total System Integration Responsibility

5
ICGS Business Structure

• Equal Ownership / Liability by Lockheed Martin
  and NGSS
• Unconditional Performance Guarantees
• Outside Director Breaks Ties and shall be
  .familiar with U.S. Coast Guard mission
  requirements
• Program Execution Accountability
• Overarching Program Control
• Executes Through Two Subcontracts

Integrated Coast Guard Systems
Board of Directors 9 Members
Management 8 Officers
Northrop Grumman Ship Systems
Lockheed Martin

• Management
• System Integ.
• Aviation
• C4ISR
• ILS Mgmt Support

• Management
• Surface
• Surface ILS/SoS Mgmt Support

Formed June 4, 2001
6
ICGS Program Management Office
Contracts K. (Kevin) O Neill Director F. (Frank)
Socko Deputy
Finance Business Management N. (Nora)
Rumpf CFO M. (Mike) Ventrelli Deputy
Integrated Coast Guard Systems L. (Leo)
Mackay President J. (Jamie) Anton Executive Vice
President
Communications/ Public Relations M. (Margaret)
Mitchell-Jones Director
Subcontracts F. (Frank) Socko Director D.
(Dennis) Prebensen Deputy
R. (Bob) Conrad Vice President, Operations
(NGSS) J. (John) Hopkins Deputy (NGSS)
B. (Bob) Davis Vice President, Operations (LM
MS2) J. (Joe) Villani Deputy (LM MS2)

SoS J. (Joe) Villani Domain Lead J. (John)
Hopkins Deputy
SEIT S. Steve Christensen ICGS TD B. (Bill)
Rogalski Deputy
Aviation M. (Mike) Fralen Domain Lead D. (David)
Platte Deputy
C4ISR D. (Doug) Wilhelm Domain Lead N (Nick)
Klavin Program manager
ILS S. (Steve) Miller Domain Lead J. (John)
Bassolino Deputy
Surface D. (Dave) Illuminate Domain Lead B.
(Bill) Rogalski Technical Director
Prog. Ops Quality R. (Russ) Bauer Program
Manager H. (Hampton) Dowling Deputy
7
ICGS Operations

• ICGS manages Deepwater execution
• Place of Business is Joint Systems Integration
  Program Office (SIPO)
• Located in Rosslyn, VA, with 300 LM, NG and USCG
  personnel
• Contract and delivery order cost, schedule, and
  performance
• Overall systems integration, metrics, and
  interoperability/commonality
• Domain management by Domain Assistant Program
  Managers (APM)
• Execution of LM and NGSS subcontracts

Top 8 Tier 2 Suppliers, by Contract Value
Contracting Flow
LM-MS2 EADS CASA AMERICAN EUROCOPTER LLC
TURBOMECA U S A BELL HELICOPTER
TEXTRON L 3 COMMUNICATIONS CORP AGUSTA
AEROSPACE CORP EADS DEUTSCHLAND GMBH
TELEPHONICS CORP
NGSS DETROIT DIESEL CORP SPERRY MARINE BAE
(UDLP) BOLLINGER SHIPYARDS ACQUISITION LOGISTICS
INDAL TECHNOLOGIES M . ROSENBLATT SON
CATERPILLAR INC.
ICGS
LM-MS2
NGSS
Tier 2 Suppliers
8
System Assets
9
Current Key Events

• HC-235A MPA Rollout, first flight, nearing
  delivery Oct06
• HC-130J Missionization start Dec 2006
• LRI Contract Award
• NSC 1 2 under construction
• ILS Initial Capability rolled out at remote sites
• Shore Infrastructure underway nationwide
• Legacy Cutter C4ISR Upgrades Completed
• 100th Airborne Use of Force Interdiction
• NSC 1 Christening
• NSC 2 Keel Laying
• 42 HH-65 Helicopters Delivered to date- 2 lines

10
Major Accomplishmentsas of July 2006
11
Questions?