RECAPITALIZING OUR SHIPS

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RECAPITALIZING OUR SHIPS
VADM Paul Sullivan Commander, Naval Sea Systems
Command Sea-Air-Space Exposition 5 April 2007
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Supported/Supporting Relationship SYSCOM to PEOs

• External Customers
• Naval Aviation Enterprise (NAE)
• Surface Warfare Enterprise (SWE)
• Undersea Enterprise (USE)
• Naval NETWAR/FORCEnet
• Enterprise (NNFE)
• Naval Expeditionary Combat
• Enterprise (NECE)

• Internal Customers
• PEO Carriers
• PEO Ships
• PEO Subs
• PEO IWS
• PEO LMW

• NAVSEA provides to PEOs
• Services
• Process
• Workforce

• SYSCOMs/PEOs jointly provide
• Current readiness (todays ships/systems) at cost
• Future capability (new ships/systems) at cost

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NAVSEA/PEO Roles
CNO/CMC
NAVY ACQUISITION EXECUTIVE
DASNs
DASNs
DASNs
Fleet/USMC
DRPM SSP
COMNAVSEA
Cost Schedule Performance
Cost Schedule Performance
Cost Schedule Performance
Cost Schedule Performance
People
Technical Authority
Technical Competencies
Systems Engineering Competencies
People
Business Enablers
People
Products Delivered to the Warfighter
Current Readiness
Future Readiness
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SYSCOM Acquisition Role

• Technical Authority
• Contracting
• Budget submission office/funds administration
• Legal
• Warfare Centers
• On-site Contract Direction at Shipbuilder
  (SUPSHIP)

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Littoral Combat Ship (LCS)

• First time use of Naval Vessel Rules
• Source selection
• Human Systems Integration
• Warfare system options
• Payload module interface/integration (3 PEOs, 2
  SYSCOMs, 4PMs)
• Program Restructure
• Cost
• Contract
• Technical Package
• Financing

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DDG-1000

• Source Selection
• Ship Design Challenges
• High design standards
• Composite deckhouse
• Seakeeping analysis
• Stealth
• Weight, Size
• Warfare System Integration
• Human Systems Integration
• Commonality with CGX

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Future Capability at Cost So Where IS the Cost?
45.0
Shipbuilding Costs FY05-10 Then Year
40.0
GFE
35.0
30.0
Material
25.0
Billions
CFE
20.0
15.0
RDTE
GFE
Material
10.0
CFE
RDTE
Labor
Detail Design
5.0
Detail Design
Labor
0.0
Combatant
Non Combatant
Non Combatant
Combatant Recurring
Non-Recurring
Recurring
Non-Recurring
Reduction of Design Production Costs Essential
for Affordability
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Future Cost Reduction

• Navy
• Stable shipbuilding program
• Stable requirements
• Incentivize construction yard improvements
• Foster design/build
• Commonality in GFE systems
• Reduce warfare system costs
• Reduce technical risk
• Open Architecture

• Shipbuilders
• Common parts sourcing
• Automation/modernization
• Pool material commodity buys
• Common product data environment tools/exchange
• Design for production
• Collaboration across total workload in
  design/construction

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Bottom Line

• PEO is supported commander in acquisition
• Acquisition is a team sport (PEO, SYSCOM,
  Shipbuilder)
• Focus on capability at cost