Microsoft Word - CNRMC M4700.1 SBS RBDG 1 Feb 13.doc

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SHIPBUILDING

SPECIALIST (SBS)

DESK GUIDE

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DEPARTMENT OF THE NAVY

COMMANDER

NAVY REGIONAL MAINTENANCE CENTER

9170 SECOND STREET, SUITE 245

NORFOLK, VA 23511-2325

FOREWORD

Ref: (a) COMUSFLTFORCOMINST 4790.3 Joint Fleet Maintenance

Manual

(b) CNRMC Fleet Desk Guide (FDG)

1. This Shipbuilding Specialist (SBS) Role-Based Desk Guide

(RBDG) provides the SBS with standardized procedures to assist

in execution of his/her duties and responsibilities outlined in

reference (a). Augmented by reference (b), it contains

procedures for executing all phases of the maintenance

availability end-to-end (E2E) process. All RMCs are directed to

incorporate the SBS RBDG within their operations.

2. This RBDG can be accessed and downloaded through the CNRMC

web portal at

https://dodcac.portal.navy.mil/navsea/CNRMC/fdg/default.aspx.

Any recommended changes should be submitted using the change

request/feedback form located on the website, or forwarded to:

Commander, Navy Regional Maintenance Center

9170 Second Street, Suite 245

Norfolk, VA 23511-2245

Attn: Code 710

DAVID J. GALE

Distribution:

Electronic only, VIA NRMC intranet

https://dodcac.portal.navy.mil/navsea/CNRMC/fdg/default.aspx

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RECORD OF CHANGES

CHANGE NUMBER DATE

TITLE/BRIEF

DESCRIPTION

SIGNATURE OF

VALIDATING

OFFICER

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SHIPBUILDING

SPECIALIST (SBS)

DESK GUIDE

VOLUME I

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TABLE OF CONTENTS

VOLUME I

TITLE PAGE

The Shipbuilding Specialist . . . . . . . . . . . . . . I-v

Typical Day in the life of an SBS . . . . . . . . . . . I-ix

Chapter 1: Private Sector Ship Maintenance . . . . . . I-1-1

1. Private Sector Ship Maintenance . . . . . . . . . I-1-1

2. Contracted Ship Repair and RMCs . . . . . . . . . I-1-1

3. Contracts, Contractors and Availability Types . . I-1-5

Chapter 2: The Role of the Shipbuilding Specialist . . . I-2-1

1. The Role of the Shipbuilding Specialist . . . . . I-2-1

2. The Shipbuilding Specialist Represents the

Government when making Technical Decision . . . . I-2-1

3. Duties and Responsibilities of the SBS . . . . . . I-2-2

4. The SBS position is a critical position within

the Regional Maintenance Center (RMC) . . . . . . I-2-4

5. Shipbuilding Specialist Elements . . . . . . . . . I-2-4

6. Shipbuilding Specialist Actions Items . . . . . . I-2-5

7. Night and Weekend Responsibilities . . . . . . . . I-2-10

Chapter 3: Advance Planning . . . . . . . . . . . . . . I-3-1

1. Introduction . . . . . . . . . . . . . . . . . . . I-3-1

2. The Shipbuilding Specialist Plays a Significant

Role in the Maintenance Planning Process . . . . . I-3-1

3. Executive Activity . . . . . . . . . . . . . . . . I-3-2

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TABLE OF CONTENTS

VOLUME I (CONT’D)

TITLE PAGE

4. Master Specification Catalog (MSC) . . . . . . . . I-3-3

5. Depot Level Work Item Planning Process . . . . . . I-3-4

6. Common Work Item Errors . . . . . . . . . . . . . I-3-8

7. Dos and Don’ts . . . . . . . . . . . . . . . . . . I-3-10

8. Technical Document Fundamentals . . . . . . . . . I-3-13

Chapter 4: Estimating, Costs & Progress Monitoring . . . I-4-1

1. Introduction . . . . . . . . . . . . . . . . . . . I-4-1

2. Developing the Independent Government Estimate . . I-4-1

3. Cost Monitoring Duties . . . . . . . . . . . . . . I-4-7

4. Progress Monitoring Duties . . . . . . . . . . . . I-4-8

Chapter 5: Processing Reports & Maintenance Records . . I-5-1

1. Introduction . . . . . . . . . . . . . . . . . . . I-5-1

2. Significant Event Log . . . . . . . . . . . . . . I-5-2

3. Condition Found Report and Letter of Transmittal . I-5-5

4. Process of Growth New Work . . . . . . . . . . . . I-5-8

5. Process Control Procedures (PCP) and Expanded

Process Control Procedures (EPCP) . . . . . . . . I-5-10

6. Internal Reports . . . . . . . . . . . . . . . . . I-5-11

7. Master Files and Logs . . . . . . . . . . . . . . I-5-15

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TABLE OF CONTENTS

VOLUME I (CONT’D)

TITLE PAGE

Chapter 6: Quality Assurance Program . . . . . . . . . . I-6-1

1. Introduction . . . . . . . . . . . . . . . . . . . I-6-1

2. Quality Assurance Inspection Team . . . . . . . . I-6-2

3. Quality Plans . . . . . . . . . . . . . . . . . . I-6-2

4. Government Notification Points . . . . . . . . . . I-6-2

5. Product Verification Inspection Documentation . . I-6-6

6. Corrective Action Program . . . . . . . . . . . . I-6-8

7. Preservation Process Oversight . . . . . . . . . . I-6-9

8. Government Quality Assurance Actions at Source . . I-6-10

9. Specification Review . . . . . . . . . . . . . . . I-6-10

Chapter 7: Environmental, Occupational Safety & Health . I-7-1

1. Introduction . . . . . . . . . . . . . . . . . . . I-7-2

2. Safety . . . . . . . . . . . . . . . . . . . . . . I-7-3

3. Environmental . . . . . . . . . . . . . . . . . . I-7-10

Chapter 8: Utilization of Reservations . . . . . . . . I-8-1

1. Introduction . . . . . . . . . . . . . . . . . . . I-8-1

2. Guidelines – Historical Reservation Requirements . I-8-1

3. Administration of Time and Material Reservations . I-8-3

Appendix 1: List of Acronyms . . . . . . . . . . . . . . I-A1-1

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The Shipbuilding Specialist

Congratulations on becoming a Shipbuilding Specialist (SBS)!

During your initial training and throughout your career as a

SBS, you will find that this is one of the most unique jobs in

the world. While no single job or group of jobs can fully

prepare you to be a SBS, it is very helpful to have an

industrial background as a base. This is only a starting point

for the knowledge, skills and abilities needed by today’s SBS.

Additional knowledge will be needed to round out your ability to

oversee the contractor work you are assigned to monitor and

oversee. You will need to develop these skills as quickly as

possible to ensure you can properly monitor and document the

success or failure of your assigned projects. This will include

acquiring additional trade skills, knowledge of the contract and

contract oversight, Quality Control, Quality Assurance, and

Technical Authority. Since changes in role responsibilities can

be made on an almost daily basis, you will need to adapt your

knowledge and abilities to these changes in order to support the

needed maintenance and modernization requirements of today’s

modern warships. Continuous training to maintain skills is a

must!

Two of the major areas where the SBS needs to develop and

maintain superior skills and abilities are in communications and

the ability to maintain focus as the customer representative.

For communication skills, the SBS should keep in mind the C

3

concept:

Communication => Control => Compliance

Communication is the cornerstone of the SBS key skills. Without

superior communication skills you will not be able to establish

or maintain control of the work you are overseeing.

Without strong control of the work you are overseeing, you will

not be able to assure the contractor has complied with the

requirements of the contract you are executing. If compliance

is not assured at the highest levels, there is a good chance the

contract will not be completed successfully. Superior

communication skills in both oral and written form is absolutely

essential to the SBS position, since you are the face of the RMC

for both the contractor and ship’s company, along with virtually

all other entities working to successfully execute the

contracted work. You will be required to communicate with all

levels of personnel, since the majority of communication goes

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through the SBS during execution of a contract, regardless of

the type or work being accomplished. This includes discussion

of production and interface issues with ship’s company and the

contractors assigned, Engineering Service Requests, assisting in

resolution of contract modification issues, answering Conditions

Found Reports (CFRs), requesting contract changes, etc.

With this in mind, the SBS needs to understand that

communication equals control. Without communication, you cannot

establish or effectively maintain control of your project on any

level.

Control equals compliance. Without control, you cannot ensure

contractor compliance with the requirements of the contract you

are overseeing.

Compliance equals success!!! If the contractor meets all of the

written requirements in the contract and provides the proper

documentation, we will be successful. If the contractor does

not, we will fail. It seems simple, right? Well, all of this

means that you, the SBS, must be willing and able to communicate

at all levels of the command structure, both internally and

externally, and without delay. If you are unable or unwilling

to do this, you will not be successful as a SBS.

The SBS should also understand that in order to ensure success,

you will need to keep three major areas in mind at all times

while providing contracted maintenance oversight. These areas

support both the contract and Technical Warrant Holders (TWH)

when executing a contract, or availability. They are Cost,

Quality and Schedule. Each of these focal points carries equal

weight.

As an SBS, it is your responsibility to ensure that the Navy

(customer) receives the highest possible quality work and

products at the cost agreed to by the contractor and the

government, within the time allotted for the work to be

accomplished. The products and services must always meet the

requirements of the contract. You can only accomplish this

through constant observation of the work being accomplished, or

Material Survey.

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Bottom Line: Make sure the job is completed and the components

and associated systems all work! This is how our success or

failure, and that of the contractor, will be determined.

Remember: you cannot require the contractor to do anything that

is not in writing. If you see that work item requirements are

not sufficient to accomplish the actual actions needed to

complete a repair, request a change to the contract that will

include the new requirement, or modify existing requirements, to

meet the actual need.

The SBS should always be aware that the government both wants

and needs the contractor to be successful in his completion of

the contracted work, and works toward that goal. The government

also wants the contractor to receive the agreed upon amount of

compensation and any awards or incentives he is entitled to,

when the work is completed successfully and all requirements are

met. But, the bottom line must always be that the repairs are

accomplished correctly and documentation is completed, and that

the equipment has been successfully demonstrated to work as

designed at the end of the contract or availability period.

Among the newest changes to the SBS roles and responsibilities

is work certification. While the major part of this

responsibility rests with the Technical Authority, Engineering

and the Test Engineers, the SBS plays a very large part in

helping to assure this process is accomplished in an efficient

and timely manner. This means making sure you are aware of the

roles and responsibilities of other team members, so that you

are able to support the team in this effort. Your efforts in

monitoring the contractor work and ensuring the contractor meets

all requirements for work and documentation is of the greatest

importance in assuring total ship testing and certification is

successful.

As a SBS, YOU are responsible for knowing the contents of this

desk guide and for carrying out all duties assigned. The desk

guide can be quoted as an instruction. It is NOT designed to be

used as a micro-management tool, but to provide assistance to

you in the execution of your roles and responsibilities.

Finally, as a SBS, you can expect new challenges on a daily

basis. Your ability to successfully adapt to this changing work

environment will be a major key to your success.

Good Luck and Congratulations!

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A Typical Day in the Life of an SBS looks something

like this:

o Read and answer E-mails: (continuous process).

o Read and answer Conditions Found Reports (CFR): (continuous

process).

o Enter Engineering Service Requests (ESR): (continuous

process).

o Generate requests for contract changes (RCC): (continuous

process).

o Morning walkthrough of ship (normally before the morning

production meeting).

o Attend morning (daily) production meeting.

o Attend side meetings to assist contractor with any issues

not resolved in the morning meeting.

o Update progress by work item for weekly progress input to

the Project Manager.

o Attend weekly progress meetings when they are held.

o Attend all scheduled check points.

o Receive and process all check point notifications for night

and weekend work.

o Notify the Project Manager of any overtime requirements

based on checkpoint notifications.

o At a minimum the SBS should be walking through the Ship at

least twice daily. It is strongly recommended that most of

the SBS’s time should be spent in material/equipment survey

of assigned work.

o Attend safety walk through with ship’s force, contractor

and safety representatives (Note: this should always be in

the forefront for the SBS during any walk through or other

time spent on the ship or at repair sites). While Cost

Quality and Schedule are our major focal points, safety is

always

our number one concern! Safety should never be

compromised! During the work day, the SBS will be

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continually updating both hard copy and electronic files,

answering questions from the contractor and interfacing

with the ship’s company, contractor representatives, Port

Engineer (PE), Project Manager (PM), Quality Assurance

Supervisors (QAS), Engineering, Manufacturing

representatives, and any other personnel necessary for

successful completion of the work being executed. This

includes receiving and reading all required reports and

making sure that all responses are returned in a timely

manner.

o The SBS is required to keep a significant events log, which

is kept in hard copy and is always hand written. The

significant event log is to be provided to the PM on

request for use in completing Contract Administration

Quality Assurance Program (CAQAP) reporting and must be

turned in at the end of CNO availabilities for inclusion in

the contract Objective Quality Evidence (OQE) files, where

they are turned over to the Administering Contracting

Officer (ACO). They then become an official part of the

contract records. A module is included in this desk guide

for additional information.

o Provide assistance to other maintenance team members when

needed. Remember, we are all on the same team and we all

have the same goal: successful completion of the

availability.

o Additional duties performed on a less frequent basis

include, but are not limited to; initial investigation of

mishaps, review of parts and material reports, assistance

in auditing of contractors, requests through the planning

yard on-site representative to provide additional

information to the contractor or to make changes to

existing prints and manuals.

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Chapter 1

Private Sector Ship Maintenance

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) OPNAVINST 4700.7L, Maintenance Policy for U.S. Navy

Ships

(c) FAR Part 14 - Sealed Bidding

(d) FAR Part 15 - Contracting by Negotiation

(e) FAR 42.201 - Contract Administration Responsibilities

(f) FAR 42.302 - Contract Administration Functions

(g) FAR 42.2 - Contract Administration Services

(h) FAR 42.3 - Contract Administration Office Functions

1. Private Sector Ship Maintenance

a. Depot-level maintenance is that maintenance which

requires skills or facilities beyond the level of the

organizational and intermediate levels and is performed by naval

shipyards, private shipyards, naval ship repair facilities, or

item depot activities. Approved alterations and modifications

which update and improve the ship's military and technical

capabilities are also accomplished.

b. The duties and responsibilities of the SBS will be

focused on depot level maintenance performed primarily by Master

Ship Repair (MSR) and Agreement for Boat Repair (ABR)

contractors including their subcontractors. There will be

interface with other government agencies and ships force,

however, the knowledge and understanding of how the contractor

is expected to perform work is paramount. The SBS should be

familiar with references (a) and (b) for details concerning ship

maintenance and private sector contractors including the role

they play.

2. Contracted Ship Repair and Regional Maintenance Center (RMC)

a. RMCs have assumed responsibility, within their

geographic region, for all contracted ship maintenance work to

be accomplished by commercial shipyards. The following provides

an overview of the RMC functions, responsibilities,

organizational relationships and standards of conduct resulting

from that transfer.

b. General Functions and Responsibilities

. This section

outlines RMC functions and responsibilities for ship repair and

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modernization work that is contracted to the private sector for

accomplishment. These may include:

(1) Performing functions of Procurement Contracting

Officer (PCO) and Administrative Contracting Officer (ACO).

(2) Developing specifications necessary to solicit

contract proposals and bids for assigned PCO functions and Naval

Sea Systems Command (NAVSEA) procurements.

(3) Providing planning and estimating, workload

forecasting and oversight for planned and unplanned

availabilities.

(4) Conducting engineering, technical and design

oversight, evaluation and surveillance.

(5) Performing engineering and design services in

support of waterfront (emergent) technical issues.

(6) Budgeting, administering and accounting for funds.

(7) Providing management coordination and oversight of

contracts to ensure requisite quality, schedule attendance and

cost propriety.

(8) Monitoring and evaluating integrated logistics

support and procurement of Government Furnished Material.

c. Procurement and Contract Functions and Responsibilities.

This section touches specifically on the functions and

responsibilities that tie the SBS to contract oversight at each

RMC location.

(1) The RMC performs the functions of the PCO for

purposes of placement of job orders under the Master Agreement

for Repair and Alteration of Vessels, Master Ship Repair

Agreement (MSRA) or the Agreement for Boat Repair (ABR) as

described in Chapter 3 of this Volume. The RMC also exercises

the options under Multi-Ship/Multi-Option (MSMO) contracts and

other contracts as assigned.

(2) The RMC is responsible for performing all of the

contract administration services listed in references (e) and

(f) to the extent applicable to MSRA job orders, MSMO contracts

and to other contracts assigned at commercial shipyards under

RMC cognizance.

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(3) With respect to the administration of contracts

other than shipbuilding, conversion and repair, the RMC will

perform contract administration functions listed in references

(g) and (h) when requested by the Procuring Contracting Officer

(PCO). When resources are not available to perform such

functions, the RMC will advise the activity awarding the

contract which functions cannot be performed and why.

d. Relationship with Contractors. (This section highlights

some very important concepts and rules that every SBS should

practice).

(1) In official transactions with contractors, the RMC

Contracting Officer is the direct representative of the U.S.

government and NAVSEA as Head of Contracting Agency. Therefore,

contractors will address any correspondence on such matters

directly to the RMC Contracting Officer who, if deemed

advisable, may discuss it with or refer it to NAVSEA for

resolution. When making referrals to NAVSEA, the RMC will

include definitive recommendations for action. NAVSEA, after

resolving referrals, should keep the RMC informed of the

proposed resolution prior to initiating discussions with or

instructions to the contractor.

(2) The RMC shall ensure that contractors are not given

access to Navy files, even when requested under the Freedom of

Information Act, unless approved by counsel. Neither should

contractors be furnished copies of correspondence or included as

an addressee on correspondence pertaining to a claim,

controversial subject matter or any subject matter on which it

may become necessary for the command to issue instructions or

render decisions.

(3) RMC personnel shall exercise good judgment when

originating constructive changes. This refers to any

communication, other than a change order or formal contract

modification, received by a contractor from a representative of

the government, or as an act of omission of the government, that

has the effect of requiring a contractor to perform work

different from or in addition to that which the contract

prescribes. When RMC correspondence is sent to a contractor

that will have a significant impact on operations, progress

payments, responsibility, etc., it shall be signed by a

contracting officer or an authorized representative, and a

receipt shall be obtained for mail or hand-carried delivery.

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(4) Contractual direction can be given only in writing

by the PCO or ACO.

e. Standards of Conduct

. Because the SBS will be found in

a variety of relationships and business dealings with all types

of contractors, vendors and suppliers, it is critical they

understand their actions are subject to monitoring and review

.

(1) The executive branch has promulgated government-wide

regulations addressing the standards of ethical conduct expected

of government employees, both military and civilian. There are

stringent guidelines and regulations that are specifically

imposed on personnel who represent the government in business

dealings with representatives of industry and occupy positions

of trust and responsibility that require them to observe the

highest ethical standards. Practices that may be acceptable in

the private business world are not necessarily acceptable for

naval personnel. Acceptance of favors, gratuities or

entertainment may be a source of embarrassment to the Department

of the Navy (DoN) and to the naval personnel involved. These

favors may affect the objective judgment of the recipient and

may impair public confidence in the integrity of business

relations between the DoN and industry.

(2) No person shall place himself or herself in a

position in which conflict of interests might arise or might

justifiably be suspected. Such a conflict might entail

gratuities, entertainment of any kind or any other action that

could influence or be reasonably interpreted as influencing the

strict impartiality that must prevail in all business

relationships involving the public interest. Favors, gratuities

or entertainment bestowed upon members of the immediate

household of naval personnel shall be considered in the same

light as those bestowed upon Navy personnel.

(3) All personnel shall exercise special diligence to

prevent fraud, collusion, larceny, embezzlement or other

improper conduct within the area of their responsibilities and

shall report immediately to the RMC any instance of fraud or

other improper conduct they observe or suspect.

3. Contracts, Contractors and Availability Types

. Each SBS may

be expected to provide contractor oversight in a variety of

locations and perform administrative duties for all types of

contracts and ships availabilities. It is expected that every

SBS knows the different type of contracts and availabilities.

The following briefly describes the common types of contracts

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and availabilities plus the relationships of associated

contractors.

a. Contract Types

(1) Fixed Price (FP) Type Contracts – Firm Fixed Price

(FFP) and Fixed Price Incentive (FPI)

(a) FP contracts usually stipulate a firm price.

Under some variations of the FP type contract, it may leave

portions of the price open and provide for a later adjustment.

(b) Specifications for FFP contracts are typically

developed by government planners and awarded to a single

contractor that may subcontract out portions of the work.

However, the contractor awarded the contract remains responsible

for the execution and administration of the work that is

performed.

(c) Market conditions and or work load may directly

influence the competition between contractors that bid on FFP

contracts. It is common for some contractors to submit very low

bids just to win the contract. They then try to find any and

every opportunity through contract modifications to turn their

profit margin around. The SBS must know when these conditions

exist and be diligent to hold the contractor to only those

requirements that are necessary.

(2) Cost Type Contracts (i.e.,Cost Plus Fixed Fee

(CPFF), Cost Plus Award Fee (CPAF) and Cost Plus Incentive Fee

CPIF))

(a) Cost reimbursement contracts are used when the

estimate of costs is as reasonable as the circumstances permit,

but because of the magnitude of uncertainties involved in the

procurement, the risk is too great to expect a contractor to

accept a FP arrangement of any type. In the CPFF type contract,

the government agrees to pay all allowable costs that are

incurred under the contract, plus a fixed-dollar amount of fee.

A CPIF type contract provides for an initially negotiated fee to

be adjusted later by a formula based on the relationship of

total allowable costs to total target costs. Under the CPAF,

the allowable costs are paid plus a fee. The fee typically

consists of two parts, a fixed amount that does not vary with

performance, and an award amount. The award amount is based

upon a subjective evaluation of contractor performance by the

Government, judged in light of criteria set forth in the

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contract. The criteria and rating plan are tailored to the

specific procurement in order to provide the most positive way

to motivate the contractor toward improved performance.

(b) The majority of the contracts in place with RMC

oversight today are Cost type contracts and in most cases the

specifications are developed by the contractor that is awarded

the contract. These are usually MSMO contracts.

(c) Indefinite Delivery, Indefinite Quantity (IDIQ)

Type Contracts

(1) These contracts IDIQ are used when there is

a recurring demand for an item and the timing and extent of

demand cannot be determined at the time of award. The contract

establishes all terms and conditions except those to be included

in orders issued there under.

(2) Commercial Industrial Services (CIS) are

typically handled with these type contracts.

b. Contractors

(1) Master Ship Repair Agreement (MSRA) Contractors

(a) These contractors are most commonly referred to

as the Master Ship Repair (MSR) contractor. Due to the

complexity of ship repair and the conditions under which work is

performed, it is required that NAVSEA contract only with ship

repair companies that are fully capable of conducting most

aspects of shipboard work. The compact arrangement of machinery

and systems aboard ship, the sophistication of systems installed

in Navy ships and the Navy's absolute requirement for reliable

operation create a unique repair environment that demands

special experience and capability. Any MSR that is certified

will be capable of providing and performing a large number of

services and resources as indicated below and as described in

detail in reference (a).

(1) Be capable of accomplishing a Selected

Restricted Availability (SRA) on a FFG 7 class ship or larger.

(2) Have the capability to perform at least 55%

of a SRA on a FFG 7 class ship (or larger) using their own

facilities and their own workforce.

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(3) Possess or have access to a pier

with the requisite support and technical services available.

(There is no requirement for a dry dock.)

(b) While it is not a specific requirement for

obtaining an MSRA, the contractor must be capable of providing a

Remote Site Work Performance Plan to the contracting officer

prior to issuance of the job order that permits the start of the

work performance period.

(2) Agreement for Boat Repair (ABR) Contractors. An ABR

contractor must possess the same basic characteristics listed

for MSRAs, but to a lesser degree. Reference (a) clearly

delineates these characteristics. Since ABR firms have the

potential to perform a diverse scope of repair work, from boat

and/or craft overhauls to selected topside repairs to major

vessels, ABR firms will also be evaluated on their ability to

accomplish the following:

(a) Shipfitting type work

(b) Sheet metal work

(c) Welding

(d) Pipefitting

(e) Machinist/Mechanical (shop and marine)

Electrical

(f) Electronics

(g) Woodworking

(h) Rigging

(3) Primes, Subs, MSMO and Team Contractor

relationships. In all cases with any contract type or

contractor there shall only be one contractor per contract that

will be held responsible for the administrative tasks related to

the contract. That contractor is referred to as the prime

contractor. A prime contractor may perform work on any contract

awarded to them alone or may allow other contractors with a

variety of resources and skill sets to accomplish portions of

the contract. These contractors are referred to as subs or

subcontractors to the prime. The SBS may interface with the

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subcontractor however all direction and oversight should be done

through the prime contractor.

(a) Current contracting practices may include some

FFP and IDIQ contracts, however, the majority of work is managed

through cost type contracts set up to accommodate multiple ships

for multiple periods of time. These are referred to as MSMO

type contracts and are only awarded to MSR certified

contractors. The MSMO method of contracting encourages the

prime contractor to both team up with other MSR’s and also

utilize subcontractors. The MSR contractors that a prime

contractor may team up with are, as expected, referred to as a

MSMO contract team member. Team members are also encouraged to

use subcontractors.

(b) As the SBS moves from one ship's availability to

another they must understand these relationships and always

remember the dynamics that are in place when providing

contractual direction.

c. Availabilities. An availability refers to a specific

time frame that a ship is made available for work to be

performed on it with a known beginning date and completion date.

The work itself that is accomplished will normally be planned or

scheduled in advance of the availability. However, there are

cases when unexpected maintenance or emergencies occur and the

work is required to be done and planned simultaneously

(1) Chief of Naval Operations (CNO). The type of work,

duration of availability and who is funding the work often play

in determining what type of availability will be used. Annual

or bi-annual scheduled maintenance periods are determined in

advance by the CNO. These availabilities typically will run

between nine and 12 weeks (sometimes as long as one year) and

are usually longer than other availabilities. It is during the

CNO availabilities that the ship may be dry-docked for routine

maintenance and modernization. Often, large items or routine

work will be accomplished during a CNO availability.

(2) Continuous Maintenance Availability (CMAV). Ships

require maintenance (and sometime modernization) that cannot

wait for a CNO availability. To complete this required work,

ships are scheduled for a CMAV each calendar quarter. CMAVs are

conducted during the periods of time in between CNO

availabilities. They are not conducted during the same time as

a CNO availability

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(3) Window of Opportunity (WOO). WWO type

availabilities happen as the name suggests. There will be times

throughout the operational schedule of the ship where it may be

in port for a week or two. We look upon this time in port as a

WWO to accomplish some work. These type of availabilities

usually represent smaller type jobs that may be done in shorter

periods of time.

(4) Emergent (EM). When something on board the ship

breaks down or becomes inoperable, it may significantly degrade

the ship’s operational capability. In these situations, the

work may be segregated into an availability of its own and

referred to as an “EM Availability”. EM work will typically

take precedence over other work in order to restore the ships

operational capability. In EM availabilities the contractor may

also receive verbal authorization from the ACO to perform the

work, but must be followed up with the submission of required

documentation.

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Chapter 2

The Role of the Shipbuilding Specialist

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) NAVSEA Standard Items

1. The Role of the Shipbuilding Specialist (SBS). SBS’ are

individuals that possess a primary trade background but who can

effectively perform across trade lines in two or more trade

skill disciplines. Team assignments are made to balance trade

expertise appropriately with the type of work in the project. A

wide variety of comprehensive duties and responsibilities are

assigned to these individuals who are expected to act as

decision makers with comprehensive knowledge of each work item

assigned in order to ensure quality of work is completed within

cost and on schedule. Refer to reference (a) for an overview of

practices and procedures that each SBS should be familiar with.

2. The SBS represents the government when making technical

decisions – this is seen as serving as an agent for the

government. Never forget that both verbal and/or written

direction made by the SBS may constitute a constructive change

to the contract. A constructive change order is an informal

change to the contract resulting from government actions or

inactions that require the contractor to perform work beyond

that which is required by the contract. These constructive

changes can result in unauthorized commitment of government

funds, claims or litigation against the government. The SBS

might commit the government to unexpected costs if not careful.

Only the Contracting Officer is authorized to make contract

changes.

a. Constructive Change

. A constructive change occurs when:

(1) The contractor performs work beyond that required by

the contract without a formal change order, and

(2) It is perceived that the work originated from a

government informal order or is due to government fault. A

government informal order can be defined as words or deeds

excluding advice, comments, suggestions, or opinions.

b. There are four general categories of constructive

changes:

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(1) Disagreement over contract requirements.

(2) Failure of the government to cooperate during

contract performance.

(3) Defective specifications and misleading information.

(4) Acceleration of contract performance to finish

sooner than what is stated in the contract schedule.

3. Reference (a), Chapter 7 lists 15 duties & responsibilities

for the SBS. Typical assignments include the following duties

and responsibilities (as with Project Managers (PM), this may

vary depending on the supporting organization):

a. Provides current information relating to assigned work

items to the team leader who is usually a PM.

b. Attends meetings, resolves production problems, develops

scope of work requirements, assists in the development of

government test analysis report (TARs) and negotiation

positions, assesses contractor capabilities, work progress and

performance, provides technical support to the Administrative

Contracting Officer (ACO), participates in claims avoidance and

provides other technical support as required.

c. Interfaces with members of ship's force to provide

current project information, notifies responsible personnel of

scheduled evolutions and solicits required or desirable Ship's

Force personnel when needed.

d. Receives and investigates contractor reports, assists

with the development of the independent government's technical

response, requests engineering support, prepares necessary

contract modifications, develops the government cost estimates,

estimates the delay and disruption that may occur because of a

contract modification, assists with negotiation preparation

relative to Technical Advisory Review/Reports (TARs) and

contract modifications (as authorized by the ACO), provides the

ACO support in negotiations and maintains records of actions

taken.

e. Performs/witnesses government G notification points,

identified in the work specifications, when the contractor calls

them out. Accomplishes random Product Verification Inspections

(PVI) utilizing checklists or an attribute system to determine

contractor compliance with the quality and technical

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requirements of the work specifications/contract. Writes a

Corrective Action Request (CAR) when nonconformities are

detected per Chapter 6 of this desk guide.

f. Participates in various government evolutions such as

boat inspections, hull inspections, combat systems inspections,

dry-docking and undocking, habitability inspections, pre-light

off assessments (LOA) and other evolutions that may require or

benefit from technical trade expertise.

g. Determines the physical progress, as a percentage of

work completed, of each work item and each contract modification

assigned. This information is updated weekly in a comprehensive

progress report that is used in calculating the contractor's

entitlement to progress payments as well as in evaluating the

contractor's schedule performance.

h. Monitors the Government Furnished Material (GFM) and

Contractor Furnished Material (CFM) report to anticipate actions

that may be necessary to preclude schedule impact by

unsatisfactory material delivery dates. Initiates material

orders to replace unsatisfactory GFM or to provide items with

unique government control and confirms the necessity for the

contractor to make cash purchases from the Naval Supply System

when it is in the best interest of the government.

i. Monitors the contract guarantee period to help determine

whether failure of equipment or systems covered by the guarantee

clause is the responsibility of the government or the

contractor. Ensures that the work determined by the ACO to be

the responsibility of the contractor, whether it is covered by

guarantee or was an exception to the completion of the contract,

is repaired per the specification requirements; and, provides

cost estimates for incomplete work so that the ACO can ensure

that appropriate contract funds are retained in the event that

the work must be deleted from the contract requirements or be

procured from another contractor.

j. Provides positive lessons learned along with feedback

related to deficient or inefficient work specifications or work

authorizations to the appropriate planning group for use in

improving future procurements.

k. Conducts oversight coordination and inspection of work-

related environmental issues associated with Ship's Force and

contractor's operations. This effort includes, but is not

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limited to, hazardous material (HAZMAT) and hazardous waste (HW)

handling, removal, storage, transportation and disposal.

l. Conducts safety inspections jointly with the contractor,

ship's force and government Environmental Safety and Health

(ESH) representative(s).

m. Maintains a significant events log.

n. Provide written reports to support award fee evaluations

and Contractor Performance Assessment Reporting System (CPARS).

o. Maintains the following records:

(1) Work item specifications, references and estimates

for the work package, updated to reflect all modifications.

(2) Contractor condition reports including government

replies.

(3) New work identified and not authorized.

(4) GFM delivery status.

(5) Quality Assurance (QA) records.

(6) Records relating to the contractor's capabilities

and capacity.

(7) Contractor performance evaluations.

4. The SBS position is a critical position within the Regional

Maintenance Center (RMC). The SBS is responsible to ensure any

repair activity contracted to perform ship repair work does so

per the work item(s) and provides the requisite quality and

documentation required by the contract.

5. SBS Elements

a. The SBS’ primary function is to ensure contractors meet

their contractual obligations as set forth by the contract and

work items.

b. The SBS is the RMC Commander’s on-site representative.

He/she ensures that the product presented to the government is

per work item requirements and the contract.

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c. The SBS shall not serve as an adjunct to or replacement

for the contractor’s own inspection system.

d. The SBS shall not require higher quality or additional

requirements other than those requirements already authorized

for accomplishment per the contract and work specification(s)

without the authorization of the contracting officer.

e. The SBS shall not advise any contractor how to

accomplish work. When notifying a contractor of a

nonconformity, the SBS shall address the contractual

requirements the contractor failed to meet and if warranted,

initiate corrective action. The SBS shall notify the PM of the

procedure or process used by the contractor that resulted in an

unsatisfactory product.

f. Each SBS is assigned to a ship project/availability by

the class team leader, and assigned work on that project

availability by the respective PM. Each SBS shall ensure the

contractor awarded the project/availability accomplishes the

requirements of each work item assigned per contractual

requirements.

6. SBS Action Items

a. The following are, but not limited to, the

responsibilities of the SBS:

(1) Review and comply with all applicable laws,

references, instructions and guidance provided by the U.S.

government, CNRMC, and the local RMC.

b. After assignment to a project/availability by the class

team leader and assignment of work items by the PM, obtain and

review all drawings, technical manuals, design memos,

manufacturer’s instructions and references required by the work

item(s).

(1) Review the references for applicability to actual

conditions and ensure the contractor is using the references

that were in place at contract award.

(2) Ensure the contracted version of the reference (b)

is utilized.

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(3) Review all work specifications assigned to him/her

for technical and quality accuracy in addition to compliance

with reference (a), Volume VII, Chapter 4 Appendix 4-E.

(4) Review/update the Navy Maintenance Database (NMD)

checkpoint module for each work item assigned to the SBS (“G”

points only).

(5) During advance planning, the SBS will conduct

specification reviews and develop an Independent Government

Estimate (IGE) as required. Further discussion on this subject

is in Chapter 4, paragraph 2 of this desk guide.

c. Inspect the work site, when allowed by the PM, before

the start of the contract and note any conditions that are not

per work items, will disrupt schedules, or cause additional work

requirements. Document these conditions and alert the PM for

direction.

(1) Examples include, missing lagging, loose deck

plates, piping interferences, etc.

d. Review the references for applicability to actual

conditions and ensure the contractor adheres to the requirements

of all work items and is using references that were in place at

contract award.

e. Maintain a significant events log per reference (a).

The significant events log is discussed in further detail in

Chapter 5, paragraph 2. See also SBS Procedure 7 of this desk

guide.

(1) All significant events must be recorded in the

significant events log as specified in reference (a). The

significant events log must be turned over to the ACO, via the

PM, at the completion of the availability.

(2) Events and/or information that are not

required in

the significant events log may be documented in a separate log,

if desired, but are not

required. If an additional log is

maintained for events and/or information outside of, or in

addition to, the significant events log, do not

use it to record

significant events specified in reference (a).

f. Review contractor’s schedules for purchase orders/

GFM/CFM, long lead time material (LLTM) lists, as applicable, to

ensure material required is ordered and has acceptable estimated

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delivery dates (EDD) to support the schedule. Anticipate and

initiate actions that may be necessary to minimize schedule

impact by unsatisfactory material delivery dates.

(1) Inform the PM of any anticipated or ongoing work

stoppage or problems concerning a work item based on government

furnished equipment (GFE), GFM or delay in government furnished

information (GFI), such as issues with contracting a work item

to a subcontractor or answering of reports. These instances

shall be documented per Chapter 5, paragraph 2. See also SBS

Procedure 7 of this desk guide.

(2) The SBS shall promptly inform the PM when it appears

that the contractor may not meet scheduled completion dates and

reasons for the expected delays, such as lack of resources;

progress, or material issues.

g. Conduct oversight coordination and inspection of work-

related environmental issues associated with ship’s force and

contractor’s operations. This effort includes but is not

limited to, HAZMAT and HW handling, removal, storage,

transportation and disposal.

(1) Conduct a safety inspection jointly with contractor,

ship’s force and government ESH representatives. Chapter 7,

paragraph 3 of this desk guide provides detailed information on

Environmental, Occupational Safety, and Health Compliance.

h. Observe check points identified in the work

specification(s) when they are presented by the contractor,

witnessing required equipment or systems tests, accomplishing

random in-process inspections at the work site to determine

contractor compliance with the requirements of the

specification, and determining the effectiveness of the

contractor’s QA program.

(1) Enter all G-checkpoints in the NMD. Further

discussion on the process of witnessing checkpoints is in

Chapter 6, paragraph 4. Additionally, ensure the appropriate

engineering representatives are on hand for critical systems

checkpoints.

(2) Recording of PVIs for each contract shall be per

Chapter 6, paragraph

5. See also Standard Operations Procedure

17 of this desk guide. The engineering code has a stand-alone

database on the shared drive where personnel PVI data is stored.

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i. The SBS shall review, evaluate and answer Contractor’s

Condition Found Reports (CFRs), including their recommendations

for additional work and provide rationale for approval or

disapproval. Refer to Chapter 5, paragraph 3 and Standard

Operations Procedure 9 of this desk guide.

j. Make decisions to ensure quality of the product such as,

but not limited to, work item clarity, material requests,

quality assurance requirements, etc. within their span of

control and are not constructive changes or deviations to the

contract.

(1) A constructive change to a contract occurs whenever

the government, through its action or lack of required action,,

causes the contractor to depart from plan or perform other than

as specified in the contract. Ensure a Request for Contract

Change (RCC) is written for any contract modification to prevent

a constructive change to occur.

(2) A deviation is defined as any action which is not

per the work item, no matter how minor. Deviations require

technical authority action and if approved, an RCC will be

required to initiate the work (either to add or delete

requirements). Failure to write an RCC will cause a

constructive change to occur.

(3) When working outside of his/her specialized skill

set, request assistance from other SBS, QA Specialists,

engineering liaisons, or the PM as required in order to achieve

the best decision possible.

k. Initiate action(s) such as, but not limited to,

writing/reviewing RCCs, engineering service requests (ESRs),

progress reports or the coordination of efforts to prevent

problems or work stoppages. See also standard operations

procedures 13 and 14 of this desk guide.

(1) Initiate either a method A or method B

CAR when required. Refer to Chapter 6, paragraph 6 and Standard

Operations Procedure 18 of this desk guide.

(2) Write/review new and growth work items, as discussed

in Chapter 3 and Chapter 5, paragraph 4 of this desk guide, when

requested by the PM and create/review RCCs when an existing work

item requires contractual modification. See also Standard

Operations Procedure 14 of this desk guide.

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(3) Calculate estimates using historical costs in NMD,

the Flat Rate Estimating Guide, Uniform Methods and Standards,

trade knowledge, vendor quotes, ship checks, business climate,

information from PM and other SBS.

(4) Develop, review and assist in negotiating

modifications to original/new work specifications for work to be

accomplished by contractors. Assist the ACO with the government

negotiation position.

l. Determine the physical progress, as a percentage of work

completed, of each work item and each contract modification

assigned, including monitoring of required reports, test and

inspections plans, schedules, and completed checkpoint

submissions. Progress is updated weekly in the NMD and is used

in calculating the contractor’s entitlement to progress payments

as well as in evaluating the contractor’s schedule performance.

Further discussion is in Chapter 4, paragraph 4 of this desk

guide.

m. When assigned to a MSMO contract, the SBS shall

accomplish cost monitoring duties using Chapter 4, paragraph 3 of

this desk guide as guidance.

n. Maintain effective lines of communication between the

PM, contractor, ship’s force, planning yard on-site

representatives, AIT’s for the purpose of problem solving,

coordination and mutual discussion of work items.

(1) Provide current information and progress updates

relating to assigned work items to the PM.

(2) Interface with members of ship’s force to provide

current project information, notify responsible personnel of

scheduled evolutions and solicit required or desirable ship’s

force assistance.

(3) Work with planning yard on-site representatives and

engineering liaisons to help resolve technical problems.

o. Attend daily coordination; weekly progress; work

coordination; work item scoping meetings as well as other

meetings scheduled and unscheduled as determined by the PM.

p. The SBS may be assigned weekend or night shift duties as

discussed in Chapter 2, paragraph 4 of this desk guide.

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q. Investigate as necessary the contract guarantee and

special warranty clause to help determine whether failure of

equipment or systems covered by the guarantee clause and special

warranty clause is the responsibility of the government or the

contractor.

r. Provide lessons learned and feedback reports related to

deficient or inefficient work specifications or work

authorizations to the appropriate planning group for use in

improving future maintenance requirements.

s. Provide written reports to support Lessons Learned

Conferences, Award Fee Evaluations and the CPARS.

7. Night and Weekend Responsibilities

a. Working a night shift or weekend is typically considered

as a temporary assignment however all actions previously listed

in section C above apply while working a night shift or weekend.

Additional responsibilities will be added to oversee and manage

work that is typically handled by other SBSs that cover regular

weekly daytime schedules. Each regular shift SBS shall provide

the night/weekend shift SBS with a turnover of all work that

will be accomplished on the night/weekend shift. In addition,

all scheduled checkpoint sheets shall be turned over to the

night/weekend shift SBS. Turnovers shall contain the following

information:

(1) Location and time the checkpoint will be held.

(2) Work item number and title.

(3) Include any pertinent details that need to be

specifically observed during the contractor’s performance and

checkpoint.

b. The day shift SBS or PM shall inform the night/weekend

shift SBS of critical/ priority jobs or any problem

(coordination, single valve, etc) that may be encountered during

the night or may need to be inspected, monitored or reported on

for informational purposes.

c. The SBS shall inform the PM when workload cannot be

accomplished so priorities can be established.

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d. The night/weekend shift SBS shall witness checkpoints

and accomplish PVI per Chapter 6, paragraph 6 of this desk

guide.

(1) The SBS shall enter all accomplished “G” points and

other observations into NMD.

(2) The night/weekend shift SBS shall provide a signed

copy of the checkpoint sheet to the regular shift SBS for

inclusion into the master records.

(3) The PM shall ensure completed checkpoint forms are

submitted for filing in master files as further discussed in

chapter 5, paragraph 7. See SBS Procedure 17 of this desk

guide.

e. The night/weekend shift SBS shall initiate a Method A or

B CAR when required per Chapter 6, paragraph 6. See SBS

Procedure 17 of this desk guide.

f. The night/weekend shift SBS shall inform the assigned

PM, class team leader, duty officer and Waterfront Operations

Department Head immediately when a defect and/or non-action of

the contractor will impact a ship's movement, critical event,

and contract completion schedule, etc. The specifics and a plan

of action shall also be reported.

g. The night/weekend shift SBS shall submit a written

turnover of contractor observed work accomplished to the

cognizant PM.

(1) Turnover shall include details of discussions with

contractors, ship's force, duty officers or other RMC personnel

pertaining to work related progress and problems encountered.

(2) Turnover shall also include details of events

recorded in the significant events log as required by reference

(a) and discussed in Chapter 5, paragraph 2. See also SBS

Procedure 7 of this desk guide.

(3) The PM shall review the night shift turnover report

and follow-up when required.

(a) Report all accidents, injuries or safety issues

to the PM and Waterfront Operations Department Head.

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Chapter 3

Advance Planning

Ref: (a) COMNAVSURFOR Notice 4702, Surface Ship Work Package

Preparation

(b) CNRMC Fleet-Wide Desk Guide Website

(c) COMUSFLTFORCOMINST 4790.3B, Joint Fleet Maintenance

Manual

(d) NAVSEA Standard Items

1. Introduction. Maintenance planning is an essential part of

the Navy maintenance process. Planning ensures that:

a. The scope of work being performed addresses and is

limited to the amount of work required to correct the defined

problem.

b. Appropriate initial conditions are established to

support the work.

c. Special qualifications required to perform the work are

identified.

d. Work is performed in the correct sequence.

e. The correct procedures are used to accomplish the

maintenance.

f. The right material is ordered to support the work.

g. Quality assurance requirements and appropriate tests are

identified.

h. Valid estimates are provided to support accurate

scheduling and measurement of maintenance activity efficiency

and validity of contractor estimates.

i. Work is efficiently packaged.

2. The Shipbuilding Specialist (SBS) plays a significant role

in the maintenance planning process, ensuring the specifications

written for each work item are thorough and accurate in order to

prevent additional costs and schedule delays during the

availability due to improperly written or ambiguous

specification requirements. The SBS must be very familiar with

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the content and direction provided in references (a) through

(e).

3. Executing Activity

a. As discussed in reference (a), the Executing Activity

(EA) is the public or private enterprise that is assigned or

awarded the responsibility for accomplishing the actual

production work to effect modernization and repairs to surface

ships.

b. For most aspects of Multi-Ship Multi-Option (MSMO) type

contracts the EAs perform the planning for accomplishment of the

work they will execute. All work, whether Chief of Naval

Operation (CNO) availability, continuous maintenance or emergent

work will have a Ship Specification Package (SSP) prepared in

the Navy Maintenance Database (NMD) work planning and execution

tool.

(1) Package preparation milestones have been developed

that support the continuous maintenance philosophy. These

milestones are designed to allow a more continuous flow of work

to create a work package. Three major milestones to be aware of

are:

(a) 50% of Depot-level Package Lock. This refers to

50% of the work, measured by 50% of the budgeted funds for the

availability being committed, be locked at A-240.

(b) 80% of Depot-level Package Lock. This milestone

requires that 80% of the depot level work package be committed,

and 100% of the ship's force and intermediate-level work that is

planned to be executed during the availability concurrently with

the Depot-level work be identified.

(c) 100% of Depot-level Package Lock. At this

milestone, 100% of the depot level package must be identified,

with the activity accomplishing the planning to complete

planning by A-60. The EA will then have 30 days to produce an

integrated work schedule that will be reviewed at a Work Package

Execution Review (WPER) at A-30.

c. In many cases, as part of the planning effort, the SBS

will prepare the actual work specification in NMD for depot

level work. The exceptions to when the EA may perform work item

preparation are if or when the government elects to accomplish

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the work item development efforts “in house”. This may be due

to time constraints or conflicts with contract type. Also when

an opportunity presents itself to train government personnel in

the critical skill sets used during the work item development

process and/or to provide surge capabilities for the EA during

peak work loading.

4. Master Specification Catalog (MSC)

a. The MSCs provide a ready resource of technically correct

and current work items that are universally accessible for use.

The vast majority of these documents can be reused for planning

future repair actions, provided the SBS or responsible Planner

validates applicability. The primary purpose of the MSC is to

reduce maintenance costs by:

(1) Reducing planning efforts.

(2) Identifying and promoting best practices.

(3) Effectively managing lessons learned.

(4) Minimizing delays associated with maintenance

planning.

(5) Providing a cost estimate for the work item.

b. Use of the MSC by Maintenance Teams and Planners at

maintenance activities is mandatory. Two types of MSC are

discussed in references (a) and (c) – Depot level and I-level

MSC. Only the depot level MSC will be discussed where the SBS

is directly involved. RMC Planners conduct the planning for I-

level work.

(1) The Depot level MSC can be accessed through the NMD

application. Its catalog consists of master specifications,

specifications used directly without any modification, and

templates that can be used with minor modifications. Appendix B

in reference (c) provides the general guidelines for template

preparation, processing and maintenance. D-Level MSC is

maintained at SUPSHIP Bath by the MSC Maintenance Office who is

assigned to standardize all templates to maximum extent possible

to ensure the specifications are technically correct and reflect

the most current guidance. Reference (a) provides further

details on the NMD application for depot level MSC. NMD has

been modified to capture the contractor’s planning and actual

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return costs. This allows standard costs to be developed for

the specifications residing in MSC.

5. Depot Level Work Item Planning Process

a. The ship identifies a problem and requests a maintenance

action via the Office of the Chief of Naval Operations 2-Kilo

Maintenance and Material Management Action Form (OPNAV 4790/2K)

using the ship’s Maintenance Data System. Each 2-kilo may be

referred to as a 2K or AWR (Automated Work Request) as well.

b. The request is transferred to the fleet brokering

system-Regional Maintenance Automated Information System

(RMAIS). The Port Engineer or Ship Superintendent screens the

request and it is brokered to a maintenance activity.

c. The maintenance activity planner receives a valid 2K in

the NMD queue. The planner verifies the information on the 2K

is valid, includes a clearly defined scope of work and all the

information required to start the planning of the work item.

d. If at all possible a ship check is performed. This is

required to minimize risk related to a work item being planned.

The PM will identify if a ship check team is required from

selected Shipbuilding Specialists and develop a plan to perform

the ship checks. Travel may be required if the ship is on

deployment, so ensure your passport and immunization

requirements are up-to-date. As the ship check is conducted,

the SBS will capture details of conditions found and ensure the

data is incorporated in the work item planning.

f. Based on information determined by the planner, a

decision is made on whether or not the work item can be planned

and executed in the assigned availability. If not, the work is

rejected back to the Broker with comments to recommend the 2K be

re-written, re-screened or rescheduled.

g. When the planner decides the work item can be planned

and executed, he/she checks for SWLIN (Ships Work List Number)

or MSC information. If there is MSC information that identifies

a master specification, or if an appropriate master

specification is identified through the SWLIN, the planner uses

the specified pre-planned MSC specification and adds the new

specification to the work package without additional MSC

planning review.

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h. If there is SWLIN or MSC information that identifies a

template or if an appropriate template is identified, the

planner will go through a series of process steps in using the

template to create a fully developed specification that is ready

for external review.

i. If there is no SWLIN or MSC information, the maintenance

activity planner verifies there is no appropriate master or

template. After verification, the activity plans the work using

the established planning and planning review processes. In

addition, the new work item is forwarded to the MSC Maintenance

Office and local standards personnel as a proposed template.

j. The external review is conducted by fellow Planners,

Planning Supervisors and Execution oriented Shipbuilding

Specialist. He/she will ensure the specifications meet the

requirement to accomplish the work specified in the AWR. A

dialogue will be established with the EA planner to resolve any

issues with the written specs.

k. When faced with writing a work item and there is no

previously written standard or template to be found in the MSC,

the SBS must resort to knowing the basics about work item

development. The following are helpful tips and information

that every SBS should be aware of and strive to become skillful

in performing. Finding a previously written work item to

exactly match the requirements of the job you must write is

often more the exception than the rule.

(1) Maintaining the basic format and structure of a work

item is very important because over the years a precedent has

been set and the industry has accepted what is referred to as

the “4E” format. This format is required to be used by most

Ship maintenance contracts and is spelled out and defined in

detail in reference (a) Volume VII, Chapter 4 “Appendix 4E”.

This format has been set and will apply to any work item written

from scratch if the MSC “basic shell” template is selected.

(2) In addition to using the 4E format it is also a

requirement that the person planning a work item is familiar

with reference (d) and how they are applied. Reference (d) is

used as both general and specific requirements that must be

incorporated into every work item that is planned. The SBS

should be very familiar with and when the requirements of

Category I or Category II Standard.

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Items apply and are generally familiar with what every NAVSEA

Standard Item covers as requirements. This is important because

it minimizes what the work item has to spell out if the

requirements of a Standard Item apply.

(3) When faced with writing a work item on a system or

piece of equipment unfamiliar to the SBS it must be clearly

understood by the planner that a degree of research and

information gathering is mandatory in order to write a

comprehensive and accurate work item. Specific requirements

written into the body of the work item must clearly address all

standard requirements as well as any unique procedures,

practices or tests that apply. This means a thorough review of

all applicable technical manuals, drawings and conditions found

at the location of work is acquired.

(4) Whenever possible time should be taken to physically

look at the system or equipment requiring work. The “Ship

Check” should be performed in every situation for every case

here a requirement will be written into a work item. The

simplest review of the on-site conditions will reveal issues

like potential interferences, access routes needed to remove or

install components, potential Gas Free related spaces adjacent

to potential Hot Work and things of that nature. In every one

of these type cases special requirements and costs may be

associated with writing the work item. All conditions must be

addressed in the work item or they will pop up during the

execution of work in the form of CFRs and RCCs. If a ship check

is not possible on the ship you are writing work for then it is

strongly suggested a sister ship be visited for these details.

A common term to keep in mind is: Don’t Site until you Sight”.

(5) The SBS is often cramped for time and if a ship

check is not possible then they must take the time and contact

someone very familiar with the systems or equipment identified

on the AWR. Do not hesitate in calling a fellow SBS, the Port

Engineer, a Ships Force contact or Planning Yard type

representative. It is imperative the SBS become as familiar as

possible with what they are expected to write into a work item.

In all cases and every step of the way the SBS must document who

was contacted, what information was gathered and why special

requirements were or were not included in the work item.

(6) While researching the details of each work item the

SBS must take note of any and all material requirements. Ask

questions if you are not familiar with materials and parts that

are affected by the removal, repair or installation of systems

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or equipment. The SBS must be aware of any material related

issues such as Long Lead Time Material (LLTM) items, hazardous

waste disposal requirements or even if the material should be

Government Furnished Material (GFM) vice Contractor Furnished

Material (CFM). Clear definition of material requirements will

make or break a work item getting done within schedule and

within budget. Review material requirements on drawings and ask

questions if you are not sure.

(7) Learn if there are special Technical Representatives

required for oversight or if there will be mandatory

certifications of systems or equipment as with weapons systems,

communications or aircraft landing markings. Not only identify

any special requirements but also contact the appropriate

representatives to schedule required tests and inspections. Be

aware that an Original Equipment Manufacturer (OEM) may be

needed for various systems or equipment. Knowing this

requirement ahead of time will go a long way into creating a

well thought out work specification.

(8) Concerning tests and inspections. Be mindful as you

research the requirements you will write into a work item and

take note as to when you must include a check point requirement.

Calling out check points in the work item will ensure that not

only work gets done but that it is done within specifications

and meets established standards of performance. This also

ensures that work cannot continue until a satisfactory check has

been accomplished.

(9) Regardless if you are writing just one or several

work items, be mindful of any other work items planned by

someone else that may be invoked within the same package of

specifications yours will be a part of. Communicate openly with

all others that are writing work items to ensure the

requirements of your work item do not duplicate or conflict with

the others and vice versa. Although the PM may be responsible

to coordinate the distribution of work they may not be as

familiar with the details and potential conflicts. It is the

responsibility of the SBS to notify the PM of any and all

potential conflicts or problems associated with writing your

work item requirements.

(10) The common work item errors in paragraph 6 below

are taken directly from reference (c) and reproduced here only

as a quick reference. It cannot be overemphasized how important

it is for the SBS to fully understand and be familiar with

reference (c) Vol VII, Chapter 4, Appendix 4E.

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6. Common Work Item Errors

a. There is no substitute for good judgment and forethought

on the part of the Work Item author. The task of writing

definitive work requirements is complicated by the fact that no

matter how technically correct the Work Item is, if the wording

can be misunderstood or causes confusion, the Work Item is not a

satisfactory contractual document. The following are examples

of wording to be avoided in Work Item writing. They attempt to

highlight some of the mistakes commonly made.

(1) Ambiguous requirements. Ambiguities normally occur

because of poor sentence structure and result in two or more

interpretations of what is required. Contractors will

invariably choose the least expensive interpretation. An

example of an ambiguous requirement is: Install 12 storage bins

(2ftx2ft) in the GSM (4-107-2) and dry provision (4-107-1)

storerooms. Does this require a total of 12 or 24 bins?

b. Non-definitive requirements. Non-definitive

requirements occur when accept or reject criteria is not

included in the requirements. Some examples are:

(1) Check bearing temperature and vibration.

(2) Support new pipe with adequate hangers.

(3) Prove gaskets and bolting satisfactory.

(4) Close up as original.

c. Requirements for inspections and tests shall include

definitive accept or reject criteria required for contractor and

SUPSHIP/RMC Quality Assurance evaluations.

(1) Non-definitive phrases. Use of non-definitive

phrases results in either non-definitive requirements or cancels

the effect of stated requirements. Examples are:

(a) As applicable

(b) Per latest requirements

(c) Or other recognized methods

(d) As practicable

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(e) As necessary

(f) Or other suitable method

(g) Check for proper values

(2) Catch-all phrases. The tendency is to use catch-all

phrases to cover unforeseen conditions or developments and

thereby avoid a contract modification. In reality, use of these

methods is more costly to the Government than an occasional

contract modification because the contractor will include

contingency money in his bid for catch-all phrases. Examples

are:

(a) Included, but not limited to.

(b) As required.

(c) Any and all or Each and every.

(d) When and where necessary.

(e) Etc.

(3) Arbitrary statements. Statements that assign

arbitrary authority to an activity or individual. Examples are:

(a) Where directed by the Ship's Force.

(b) To the satisfaction of the SUPSHIP/RMC

representative.

(c) Per NAVSEA directives

(d) As directed by the NAVSSES (NAVSEC)

representative.

(4) Arbitrary Authority. The contractor is not required

to meet the expectations of:

(a) The on-scene surveyor.

(b) The Commanding Officer's representative.

7. DOs AND DON'Ts. The following are examples to keep in mind

when writing your specification:

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a. DO use clear, simple language, free of terms subject to

variation in interpretation.

b. DO define unusual technical terms.

c. DO write for the understanding of those who will have to

use your product.

d. DO give specific and sufficient requirements and

directions so that the users will not be in doubt as to what is

required.

e. DO make each Work Item as detailed as necessary to

describe the work to be accomplished.

f. DO use "shall" when the provision is mandatory; "may"

when expressing a non-mandatory provision; "will" when

expressing a simple future tense or to express a declaration of

purpose on the part of the Government.

g. DO make positive, concise statements that cannot be

misinterpreted.

h. DO verify that reference material is available and

applicable.

i. DO use attachments to improve clarity.

j. DO become familiar with available background and

reference material before preparing Work Items. It will aid

in drafting a good Work Item. Include only those essential

references in the Work Item itself.

k. DO convey the information as if you did not understand

who would do the job or where it would be done. Release a job

only with the knowledge that it can be satisfactorily

accomplished as you intended with no further communication.

l. DO describe in clear, concise, and complete language

exactly what you expect the contractor to do. This is what you

are willing to pay for and this, and only this, is what you can

expect him to deliver.

m. DO provide a manday and material pool when frontloading

Work Items "as designated by the SUPERVISOR".

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n. DO use "when directed by the SUPERVISOR" when the start

date in a frontload statement is not known.

o. DO use spell-check on all Work Items.

p. DON'T use colloquialisms.

q. DON'T use non-definitive statements such as "as

required" or "as directed".

r. DON'T use statements that assign arbitrary authority to

an activity or individual.

s. DON'T use catch-all phrases such as "as necessary",

"excessive" or "as required".

t. DON'T use extraneous words like "thoroughly clean" or

"extreme care is to be taken". Say "clean" (and indicate

criteria).

u. DON'T use redundancy in an attempt to clarify or

emphasize. Make each statement stand by itself.

v. DON'T put multiple thoughts in a single subparagraph.

Keep each subparagraph short, concise and complete, expressing a

single thought or requirement.

w. DON'T use such words as "proper" or "adequate" to

signify a degree of acceptance. Include definitive acceptance

or rejection criteria.

x. DON'T try to salvage a poor sentence or Work Item by

indiscriminately jamming in words. Rewrite.

y. DON'T issue a Work Item with unresolved problems; you

may be providing misguidance and misdirection.

z. DON'T use attachments or references to avoid writing

requirements into the Work Item.

aa. DON'T impose unrealistic requirements on the

contractor. Exercise care in developing Work Items to ensure

that requirements are always capable of being performed.

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bb. DON'T use symbols to define dimensions (except when

used in drawing titles). For example: % for percent, " for

inch, ' for foot. Spell it out: 30 percent, One FT, two FT, 24

inches.

cc. DON'T call it plate in one sentence and plating in

other sentences or cable in one sentence and wire in other

sentences. Say it the same way throughout the same Work Item.

Be consistent.

dd. DON'T use the numeral one alone except in numbering

paragraphs. Write it out as "One" or "one" as applicable.

ee. DON'T include anything in the Work Item that is not

necessary to describe the desired product.

ff. DON'T use test requirements such as 1-1/2 times the

working pressure. Instead say test at 150 PSIG. Give

definitive test criteria.

gg. DON'T direct the contractor to provide and install

_____. He is required to provide material not specifically

listed as GFM.

hh. DON'T direct the contractor to "replace with material

in kind" or "replace with material same as existing". The

existing material could be the cause of the failure. Specify

the material to be used.

ii. DON'T write open and inspect type Work Items unless

directed by the work request.

jj. DON'T change the intent of the work request by writing

more or less than what is called for.

kk. DON'T use "quantity" descriptions in paragraph 3 when

called out in paragraph 1.3.

8. Technical Document Fundamentals

a. Technical documents consisting of Standards,

Instructions, Manuals and Drawings make up a huge part of any

ship repair work item. The SBS must be very familiar with the

practice of acquiring and interpreting the many variations and

aspects of all forms. The importance to have the ability to

accomplish this practice cannot be over stated. It is the

responsibility of the SBS to ensure specifications and

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production procedures are per the most current technical

documents and drawings. It is too late to discover something is

being done wrong or installed in the wrong place after it is

completed. This is a key factor in the SBS being able to

provide efficient oversight.

(1) Each SBS must be very adept in reading technical

references that pertain to their specific trade discipline and

very familiar with technical reference materials related to

other disciplines. At a minimum the SBS must be able to

demonstrate the ability to:

(a) Identify the types of technical documents as

they apply to the Structural, Piping, Machinery, HVAC (Heating

Ventilation & Air Conditioning), Electrical and Electronics

areas of interest. Related to each kind of document there

should be a general knowledge and ability to understand the

elements of these drawings. This involves knowing if they are

general arrangement in nature or system overview and whether

they are installation and/or removal types of drawings. The SBS

must be capable of looking for the right reference to support

the work that is being done.

(2) The SBS must understand the differences between

manufacturer’s drawings and production drawings plus the

importance of using the correct Revision of each document as it

applies. This includes knowing the current process to locate

copies of documents and how to order them if necessary. Most

ships drawings may be located after first reviewing the

applicable Ships Drawing Index (SDI) where drawings are

separated into categories determined by SWBS (Ship Work

Breakdown Structure). Today’s references are largely available

via the internet and repositories controlled by formal access

request procedures. Contact the Technical Documentation

department in your command for the latest web addresses and

access requirements.

(3) Critical information required to perform work on

most jobs will be found in technical drawings. The SBS must be

able to recognize information in different information blocks,

find material details like size or composition from “Material

Lists”, etc. Operational criteria, torque requirements and such

details will be identified in General Notes. Plan Views,

Elevation Views and Sectional Details will clearly illustrate

exact locations and measurements required to properly install

equipment. Once again the ability for the SBS to locate and

interpret technical documents cannot be over stated.

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Chapter 4

Estimating, Costs and Progress Monitoring

Ref: (a) Flat Rate Estimating Guide (located in the NMD System)

(b) NAVSEA Cost Estimating Guide

(c) NAVSEA Standard Items

1. Introduction. Throughout the availability, the Shipbuilding

Specialist is responsible for monitoring the contractor’s work

and evaluating its processes to minimize waste and efficiencies.

They are also required to develop an independent assessment of

progress. Assessing the physical progress of a ship contract

or job order shows potential delays requiring corrective actions

and identifies completed, acceptable work.

2. Developing the Independent Government Estimate (IGE)

a. The SBS is expected to provide an Independent Government

Estimate (IGE) of any type of work. This infers you either

already know or are capable of finding out all aspects related

to shipbuilding and repair. This includes the ability to

determine expected costs and also to support the governments’

position on establishing a fair and reasonable cost to do work.

It is not reasonable to believe each SBS has sufficient

technical knowledge of every trade discipline, however, each SBS

must know how to assess any job and break it down into fairly

accurate labor and material costs. Utilizing SBS Procedure 5

is a good starting place to begin the process.

(1) The following concepts, steps, methods and

techniques may be used to determine the IGE and they are spelled

out here for your benefit. It is expected that every SBS is

capable of developing a true IGE and that each one will practice

the use of what is suggested below vice just looking at what the

contractor submits to determine your estimate. Using what the

contractor provides as the IGE is unacceptable.

(a) First look at the following Acrostic and think

about each element when facing the development of an IGE.

(b) E

xamine – Research the requirements including

tech manuals, drawings and history.

(c) S

hip check – Go look at what you are developing

an estimate for.

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(d) Trades & Subs – Identify who will be needed to

do the work.

(e) Interferences – Identify and make note of costs

associated with interferences.

(f) Material – Determine material costs and

potential availability problems.

(g) Actual Work – From beginning to end review the

actual work that will be performed.

(h) Tests – Identify tests and inspections that may

require additional costs.

(i) Environment – Consider all conditions of where

and when work will be done.

(2) If the SBS is not familiar with the system or

equipment that will be included in the estimate, it is

imperative they learn all they can that pertains to the work

item requirements. The SBS must obtain copies of reference

materials and always have the latest version of NAVSEA Standard

Items handy.

(a) Take time to look over the details of how

something works or performs its required function and recognize

what is required to bring it back into an operational status.

Take particular note of what equipment or structures are

attached to or that supports its operation. In some cases

special attention must be taken to blank off, secure or provide

additional support to surrounding systems or structures due to

removals. Look at all related to reference (c) to include

related costs. Keep in mind when some adjacent structure or

equipment is disturbed by your repairs that there may be

subsequent procedures, testing or certifications needed. Make

sure you know what you are estimating.

(b) Look for historical records of similar type work

performed on the same type equipment on similar Class ships.

Contact other subject matter experts such as Port Engineers

(PE), Project Mangers (PM), Planning Yard representatives or

another SBS that may be familiar with the equipment or systems

you are estimating. Ask for their insights and recommendations.

When in doubt, it’s always best to ask. Help from these

government subject matter experts can be invaluable in

developing an IGE.

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(c) In almost every case, if possible, a SBS must

perform a ship check to properly determine all aspects related

to IGE development. Go physically look at what you will need to

estimate. There will be situations where a ship’s location or

lack of time will not allow a proper visit to the ship. Look at

a sister ship, call or e-mail someone that can place a set of

eyes on the problem. The importance of doing this cannot be

over stated because every ship and situation is unique and

viewing the actual problem may reveal that the repair is only

applying a band aid to a larger problem.

(1) Since the ship check is so important it is

highly recommended that the SBS take pictures and make copious

notes while on site. Record the size, color and composition of

anything that may be associated with the repair or installation.

Look at the route that will be taken to remove and reinstall the

item. Take drawings or manuals with you if possible to compare

details like equipment or part numbers. Take note of any Gas

Free requirements and related hazardous material removal needs

that may exist. Identify anything and everything which will

result in a cost being incurred. Those costs must be reflected

in your IGE. A helpful habit to establish is to put yourself in

the position of the contractor who will be making the repairs.

Visualize yourself as the deckplate mechanic doing the work.

Getting a prospective on what he/she will be doing will go a

long way to clarify what needs to be accounted for.

(d) While evaluating the details of what your IGE

will include, take time to consider ALL trades and any

Subcontractors that may be required to perform the work. At

first glance it may appear only a couple of Machinists will be

needed to do the job. However, don’t forget the Riggers that

will need to get the Pump off its foundation, then off the ship,

back on the ship, and back on its foundation. Think about the

transportation time of the driver to take the pump where ever it

may need to go. Likewise consider the fact that a crane may be

required. A ship check may reveal that bolts may need to be cut

or a foundation repaired. Don’t forget the Marine Chemist, gas

free requirements, welder, firewatch, lagging/insulation or

Painting costs. As the SBS you should always be going over the

job in your mind and anticipating the trades or subcontractors

that may be required to do the work. Likewise be mindful that

the contractor may also be very efficient and not really need

all the trades or subcontractors he claims he will. That is why

you must know what is being done and what it takes to do it.

This will become relevant when it comes time to negotiate the

work.

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(f) During your ship check, or based on information

you gather about the work, consider the costs associated with

interference removal and re-installation. The SBS should know

reference (c) Section 009-23 inside and out. Reference (c)

Section NSI 009-23 is a Category I standard which means every

contractor on every job must accomplish the requirements

therein. Significant costs may result in the removal of

interferences because in several cases re-installation is not an

option and installing new material is required. DO NOT overlook

the costs associated with interferences.

(g) The contractor in most cases will be responsible

for the purchase and provision of materials associated with

their doing the work. This doesn’t relieve the SBS from being

able to determine an estimated cost for material purchase or

disposal. While doing research of reference materials, and

especially drawings, the SBS should always be looking for any

special notes or special attention being made to material so you

will not be surprised.

(1) It is the responsibility of the SBS to

investigate material costs. This may be done via quotes from

vendors, online material services or from records kept by the

SBS or their co-workers. Another option may be to look at

recent estimates or return costs for jobs using similar

materials. The SBS must be very careful when reviewing return

cost to be used as the source of his/her estimate as return cost

is not necessarily what the job should cost. The goal of the

IGE is to identify what the job should cost. It is helpful to

develop and maintain sources of material prices and have them

available. Reoccurring material requirements will allow the SBS

to establish formulas and tables that they may simply apply

total square feet, total weight or quantities to for a quick

estimated cost.

(h) As stated earlier it is more the exception than

the rule that a SBS will find previously written work items

that

match exactly with similar work on different ships. However, it

is more the rule than the exception that the SBS will find

previously written processes

that closely match with similar

work on different ships, and especially with similar work on

ships of the same class. As the SBS becomes more familiar with

the processes for work that needs to be done, he/she should be

able to walk through the entire job from beginning to end and

account for all associated costs.

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(1) As the SBS gains experience with different

types of work items it will become easier to estimate work

outside of his/her area of expertise. Using estimates from

similar work to accomplish similar process steps and applying

labor standards will eventually reduce the time and effort to

complete a work item.

(i) As with material costs, the SBS must locate and

use resources that indicate standard labor estimates (i.e., it

takes three men eight hours each to sandblast 100 square feet of

surface area). There are several Labor Standards available

including but not limited to the Master Specification Catalog,

Flat Rate Book, and the Uniform Engineered Methods and Standards

Book. Labor Standards include tasks like replacing valves,

applying deck covering, boiler overhaul, pump overhaul,

replacing bulkhead/hull plating, pulling cable, etc. The SBS

simply needs to do some homework to identify total quantities to

apply against the Standards.

(1) Generally speaking, most work items will

require the following steps:

(a) Setup Job

(b) Remove Interferences

(c) Remove Equipment

(d) Repair Equipment

(e) Re-Install Equipment

(f

) Test Equipment

(g) Replace Interferences

(2) The point being is that the SBS needs to

break every work item down to sub parts and estimate costs

associated with each process step. Upon totaling costs, the SBS

will have arrived at an Independent Estimate vice a guess.

(j) Not all work that is accomplished during an

availability will require performance testing however almost

every work item will require in-process inspections. As the SBS

works out the IGE, they must be very familiar once again with

what they are estimating because every inspection and/or test

will result in costs. The SBS should be mindful that not every

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inspection or test will be successful upon the first attempt to

pass. Take into account for costs to inspect and test realizing

that if for any reason outside of the contractors control an

inspection or test fails, the government may be paying for

multiple attempts. Aside from labor costs there may be costs

associated with equipment required to perform the tests (i.e., a

crane is required to weight test an Accommodation Ladder).

(k) The SBS must always consider the conditions that

exist around the work they are estimating. This is not limited

to the physical location on board the ship. Where the ship will

be located during work execution may influence cost such as EPA

regulations to control pollutants entering the atmosphere or

weather conditions that would require shelters to be built.

These type of issues need to be considered because there are

often costs associated with them.

(1) Other factors that must be considered

include economic or port loading conditions that play a big part

on how much work may be accomplished by a contractor’s personal

work force and how much work may need to be subcontracted out.

The costs of subcontracting may result in higher estimates and

these should be reflected in the IGE when they exist.

(l) As a reminder, the SBS will be required to

participate in scoping and negotiating of work items and RCCs

when required. You will, if determined by negotiations, revise

your IGE to reflect changes in scope.

(a) The ACO will provide the maintenance team

the Direct Labor categories for each Contractor and Sub-

Contractor for an availability. However, the SBS should not be

concerned about the labor rates; rates are the responsibility of

the ACO/CS and are audited by the Defense Contract Audit Agency

(DCAA).

(b) The types of estimates you may be asked to

provide are:

(1) Class A- Variance is not expected to

exceed 10%.

(2

) Class C- Variance is not expected to

exceed 15%.

(3

) Class D- Variance is not expected to

exceed 20%.

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(4) Class F- Variance is not expected to

exceed 40%.

(5

) Class X- Directed, or Modified.

3. Cost Monitoring Duties

a. When assigned to a MSMO contract, accomplish cost

monitoring duties using the following as guidance:

(1) Notify the PM of the findings when monitoring the

Contractor’s work, but do not stop or redirect contractor.

(2) Observe the number of contractor personnel assigned

to your work items, noting all productive and non-

productive contractor personnel per compartment or space.

Record the number of individuals working along with those

sitting, standing, or just talking about non-work issues.

Record your findings and submit daily reports (one-liner) to PM

for review. See SBS Procedure 8 of this desk guide.

(3) Review the CFM report/Provisioning Parts List (PPL).

Report any excessive or questionable items such as Computers,

TV’s, Flashlights, Batteries, etc. to the PM.

(4) Monitor the contractor’s material warehouse and

material system. Ensure CFM and GFM are separated, tagged, and

accounted for.

4. Progress Monitoring Duties

a. Definitions

(1) Progress Assessment

. The assessment of progress

represents the PM’s appraisal of progress for each work item.

The contractor’s input, if available, may be considered as part

of the appraisal. Care should be exercised to ensure the

progress accurately reflects physical performance. Progress

percentages cannot be adjusted as a punitive measure in

attempting to resolve a problem with the contractor.

(2) Progress Reporting. Labor progress percent

reporting is based on observed physical progress, excluding any

unsatisfactory or deficient work. Material progress percent

reporting is based on receipt of satisfactory contractor

furnished material at the contractor’s facility and allocated to

the contract or job order. Subcontractor material shall not be

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included until it is delivered to the prime contractor’s

facility.

(3) The SBS shall discuss and resolve with the

contractor any disparity >5% between the contractor reported

progress and the SBS reported progress.

(4) The following tables, Table 4-1 and 4-2, illustrate

suggested guidelines to determine progress based on physical

performance per reference (a) Volume VII, Chapter 7, and

Appendix E of this desk guide.

Table 4-1. Work Activity Progressing Method Example

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Table 4-2. Work Progress Guidelines

b. Shipbuilding Specialist Responsibilities

(1) Determines the physical progress, as a % of work

completed, of each work item and each contract modification

assigned.

(2) Calculate and maintain an independent assessment of

PROGRESS on each original, new and RCC work item. The actual %

of work completion is then determined independently for labor

completion and material purchases for each work item. An RCC

may be considered a separate item for progressing purposes. The

progressing of material separately is typically negligible as it

usually represents a small % of overall progress; however,

material progressing is necessary. Material progress

assessments are made on the basis of the estimated dollar value

of satisfactory material received by the Contractor. This

amount is divided by the overall material amount to determine

the % of material completion.

(3) After each SBS has made his assessment, it is

entered into the NMD execution module on a weekly basis. By

doing so, the PM is able to develop a comprehensive progress

report that is used in calculating the Contractor’s entitlement

to progress payments and for evaluating the Contractor’s

schedule performance. The assessment starts upon the first week

of the availability and continues weekly until availability

completion.

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(4) When necessary, bring to the PM’s attention any work

items identified with potential delays that could affect key

events, milestones and scheduled completion dates. These items

will be addressed to the contractor through weekly progress

meetings and appropriate correspondence.

(5) Reference (b), Appendix H, is an excellent source

for Cost Estimating references with regards to:

(a) DOD Directives, Instructions, and Mil-standards.

(b) Navy Instructions and other Publications.

(c) Cost Estimating Tools and Models.

(d

) Helpful Web Resources.

(e

) Professional Societies.

(f) Other Government Policies and Circulars

and Source Material.

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Chapter 5

Processing Reports and Maintenance Records

Ref: (a) NAVSEA Standard Item

(b) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(c) CNRMCINST 7570.2, Process for Adding Work to Ship

Repair Contracts

(d) NAVSEA Contracts Handbook Sep 2011

(e) FAR 43.105 - Availability of Funds

(f) NAVSEA Instruction 5400.108, Policy For Quality

Management of Work on Non-Nuclear Surface Ship

Critical Systems

(g) CNRMCINST 4700.5, Standard Operating Procedure (SOP)

for Expanded Process Control Procedures (EPCP) on

Surface Ships

(h) CNRMCINST 4700.8, Ready To Start (RTS) Standard

Operating Procedure (SOP) For Expanded Process Control

Procedure (EPCP) and Controlled Work Package (CWP)

(i) NAVSEA Technical Specification, 9090-100 Rev 1

Appendix A: Condition Found Report (CFR) Sample

Appendix B: Letter of Transmittal (LOT) Sample

Appendix C: Liaison Action Request (LAR) Sample

1. Introduction

a. Throughout the entire availability, the Shipbuilding

Specialist (SBS) manages and maintains various types of reports.

Proper handling of documentation and reports ensures a well-

executed availability.

(1) The Government’s actions or inactions in providing

Government Furnished Material (GFM) and Government Furnished

Information (GFI), approving or disapproving of contractors’

requested contractual actions, responding to contractor reports

and participating in conferences to discuss technical and

contractual issues as well as performance, could have a

significant impact on the contractors’ ability to perform

contract requirements.

(2) These responsibilities make the Government an active

participant in the management of contracts. Two of the more

important general areas of responsibility are

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(a) Personal conduct in working with the contractor

to ensure the terms and conditions of the contract are complied

with; and

(b) The necessity to validate observations and

maintain accurate records of these observations in “significant

events” logs that include action that was taken to resolve the

issues.

(3) Significant Events are personal observations of

conditions or actions by or to any party to the contract which

would affect the performance of the contract. These events must

be recorded to assist in maintaining adequate documentation to

be used to verify, qualify or refute matters relating to a

contractor’s claim or request for equitable adjustment.

(4) The following sections outline the process of

maintaining the Significant Events Log, processing and handling

of contractor generated reports and procedures, processing and

handling of requests, and maintenance of records for each

availability. It also briefly discusses reports provided to

support Award Fee Evaluations and Contractor Performance

Assessment Reporting System.

2. Significant Event Log

a. The SBS is responsibilities for maintaining a continuous

real-time notebook to record significant events that occur

during the contract period as detailed in reference (b), Chapter

7, paragraph 7.2.4 and 7.3.4. The Significant Event Log is a

key element in contractor claims avoidance and settlements.

Significant Event Logs are not to place blame but are used as a

means to gather and record facts. Ensure all events and/or

actions that affect contract performance are officially

documented on a Conditions Found Report (CFR) and supported by

log entries.

(1) The documentation of significant events is required

for all contracts in excess of $5 million or for which a claim

is or may be expected. A claim can be expected against any

contract associated with ship modernization and repair. All

Government personnel who are responsible for observing a

contractors' performance, production processes, observing "G"

check points and monitoring operational tests and evaluations

shall document their observations and maintain a continuous real

time notebook of significant events. Notebooks shall be turned

over to the ACO, via the Project Manager, at the completion of

the availability. The Contracting Officer retains this

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documentation in the Significant Events file. All Government

personnel involved in the performance of such contracts shall

maintain this continuous real time notebook to record

significant events that occur during the contract period.

(2) The individual's significant events notebook should

be a ledger-type, bound notebook having sequentially numbered

pages. Events shall be recorded in black ink as they occur.

Use one log book for each CNO availability and use a separate

log book for any other type of availabilities. Each log book

shall include your name, ship name/hull number, type of

availability, dates, time, availability/contract number,

contractor name, berthing/docking location, etc. Pages of the

log book can be labeled to correspond with each day of the

availability, including days before ship’s arrival in plant,

days after departure from plant, warranty periods, etc. Specify

if information pertains to prime contractor, subs, AITs, SF,

etc. Recorded information needs to be brief but completely

describes the event. The information also needs to be legible

in order for others to be able to read and understand it at a

later date. No page shall be removed. Mistakes shall be

deleted with only a single line through the text and initialed,

permitting an unobstructed view of the mistake. This notebook

and related memoranda will become a part of the "Significant

Events" file and will be marked "FOR OFFICIAL USE ONLY."

b. The significant events documented in the Significant

Events Log shall include, but are not limited to, those matters

that have a bearing in the following areas:

(1) Contract Delivery schedule changes or problems that

could impact the contract schedule.

(2) Drawings, designs, and specifications that are

ambiguous, defective or affect contractor performance.

(3) Differences in interpretation of contractor

provisions.

(4) Delay and disruption of contractor effort.

(5) Changes in method or sequence of work.

(6) Late or defective Government-furnished property or

information.

(7) Rejections, rework, waivers, and deviations.

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(8) Planned versus actual performance milestones.

(9) Delays in Government actions dealing with such

issues as condition reports, engineering change proposals,

consent to subcontracts, and review of technical data.

(10) Contractor error and noncompliance with contract

terms.

(11) Any other Government actions or inactions which

have the effect of requiring the contractor perform work

different from that prescribed by the original terms of the

contract.

c. In addition to the significant events above, the

following circumstances should be documented by the contractor

or SBS, and then supported by entries in the Significant Event

Logbook:

(1) If the contractor believes the Government has

superior knowledge of any aspect of the job and withheld that

knowledge from the contractor.

(2) If the contractor believes that Government action or

conduct from one contract adversely affects contractor

performance on another contract.

(3) If the contractor believes that the Government has

improperly performed contract administration duties, which

interfered with the contractor conducting its own business.

(4) Any contractor’s failure to adhere to a schedule or

to control costs that may lead the company to seek recovery of

consequent losses. Ensure these events have been properly

addressed via the CFR or CAR processes as well.

d. As a guide, the following information for each

significant event shall be recorded:

(1) The event nature and important circumstances.

(2) The date of the event and the identification of

Government and contractor personnel involved, including name and

function of the respective individuals.

(3) Identification of any document involved.

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(4) Synopsis of oral communications.

(5) Statement of the possible consequences or effects of

the event described, including contract cost, schedule or

technical performance changes.

(6) Any actions/corrective measures that have been or

should be pursued.

e. Significant Events Logs must be kept in format required

by reference (a) and SBS Procedure 8.

f. The SBS shall inform the PM of any significant event

noted in the Significant Event Log so that it can be reported to

higher authority if necessary.

g. Significant Event Logs shall become part of the master

files on all availabilities. Submit your Significant Events Log

for review by appropriate personnel (Supervisor, Project

Manager, Contracting Officer, QA Manager, and Internal/External

Auditor). Upon notification of job reassignment, promotion, or

prior to departure for retirement or any other reason, discuss

the contents and disposition of your Significant Events Log with

your Supervisor. Your Significant Events Log will be turned

over and retained with the job or contract master files.

3. Condition Found Report and Letter of Transmittal

a. A Condition Found Report (CFR) is a document that

contractors typically prepare and submit per NAVSEA Standard

Item 009-01; however, government representatives may generate

them as well. The CFR is used to transmit specific information

concerning inspections or deficiencies or to propose additional

work which requires a government response. It may identify

additional work requirements that exceed contractual work

requirements or otherwise request a change to contract

requirements. Each CFR is serialized, tracked and dated, and

will become an official contractual document of record. See

sample of a CFR, enclosure (1), at end of this Chapter. Also

see SBS Procedure 9 of this desk guide.

b. A Letter of Transmittal (LOT) is a document which

contractors use to submit routine information relating to the

requirements of a job order. See enclosure (2), of this

chapter.

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c. The following sections establish procedures and

responsibilities for processing and handling contractor

generated reports and procedures per reference (a).

(1) Most contractors enter CFRs in the NMD application;

accordingly the SBS shall monitor NMD daily for new CFRs. NMD

maintains a CFR Summary Report with the following information:

Last Name, Answered, Outstanding, Urgent, CT (Cycle Time) and

Total.

(2) Some Contractors do not have electronic interface

with NMD. In these cases the SBS will enter information from

the hard copy into NMD for record keeping purposes.

(a) SBS shall review the CFR for all pertinent data

per reference (a) Section 009-01. The SBS will address any

issues that appear out of place with the PM as necessary and

then contact the contractor if any of the following conditions

exist:

1. Insufficient or incomplete information or

data.

2. Inaccurate, false or misleading statements.

3. Enclosures are missing.

4. Request for overtime, lost time, stolen

material equipment, or request for an availability change.

5. Insufficient number of vendors contacted

(minimum of three required), when original material is

unavailable and a request for substitution of material is

required. Any CFR returned to the contractor because of the

aforementioned shall be done expeditiously and if warranted,

initiate corrective action as discussed in Chapter 6, paragraph

6

of this desk guide.

(b) SBS shall investigate the conditions cited in

the CFR, including alleged constructive changes, delays, and

disruptions and annotate all copies with conditions found and

remedial action recommended or being considered. The response

must address each contractor question or recommendation.

(c) SBS shall use sound judgment, trade knowledge,

readily available specifications, standards and manuals, as well

as assistance from engineering liaisons and other SBSs to

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resolve problems of conditions noted by the contractor (any

requested deviation and/or material substitution by the

contractor shall only be done with Design concurrence).

(d) A CFR shall not be answered with only “Received

and Noted,” but must also list follow up action. For instance:

if the answer to a CFR is “no action required (NAR)”, the SBS

shall explain why (e.g., required report, work deferred to

future availability, covered in an existing paragraph, forwarded

to engineering for approval, etc).

(e) The timing of the condition report review

process is critical. Reports shall be time stamped upon receipt

from the contractor and returned within three days. When issues

raised in a condition report require a longer processing time,

the contractor should be advised as to the expected response

time.

(f) Forward each answered CFR to Project Manager for

review.

(g) If Design action is required, submit an

Engineering Service Request (ESR) and notify the Engineering

Liaison and Project Manager and forward the CFR/LOT. Take

appropriate action as recommended by the engineering memo when

it is returned. Provide feedback to Design on action taken and

results obtained. The SBS can clarify but not modify any ship

systems or drawing, etc.

(3) In summary, the government’s response to the CFR

must be clear, concise and address each of the contractor’s

findings.

(a) Distribute the CFR/LOT as follows, However if

CFR/LOT is submitted/answered electronically, then copies are

not required:

1

. Contractor, annotated original.

2

. Contracting Officer, one copy of annotated

original CFR. This copy shall be filed in the “Official

Contract File”.

3

. PM, one copy.

4

. Ship, one copy.

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5. Port Engineer, one copy.

6. SBS working file, one copy.

(b) CFRs received readdressing a previous CFR or CFR

answer shall be answered by the PM and the Contracting Officer

should be made aware of the disputed answer.

(c) CFR answers that may result in a RCC being

issued due to contractual direction, interpretation of a work

item specification or address previous answers must be reviewed

by the PM and the associated RCC must be approved by the

Contracting Officer.

(d) A CFR to be returned to the contractor due to

work being previously covered in specifications will be reviewed

by the cognizant SBS and contract specialist. If the contract

specialist is in agreement, the CFR will be annotated, “Covered

by paragraph ______ of work item and/or Modification Number

____”.

4. Process for Growth and New Work

a. Reference (c) outlines the process for addition of work

to ship repair contracts. When a Condition Found Report (CFR)

for additional work has been approved or growth work has been

otherwise identified by the PM, the Shipbuilding Specialist will

prepare a Request for Contract Change (RCC) per SBS Procedure 14,

which will provide the statement of work.

b. The PM will review the RCC to ensure that the RCC

adequately documents growth work required to be performed. The

PM will release the RCC for contractor pricing.

c. The contractor will propose and submit an estimate of

the work to be performed (e.g., a Change Order Price Analysis or

COPA) while the SBS develops an Independent Government Estimate

(IGE), previously discussed in Chapter 4 and as outlined in

section two of SBS Procedure 5 of this desk guide.

For work

items over $700K, a TAR will be required. The SBS will assist

Code 400 by answering any questions on the IGE in support of the

TAR process.

d. The Contract Specialist (CS) will determine a fair and

reasonable price with Maintenance Team (MT) support, as

required, in scoping and negotiations.

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e. Per reference (e), the ACO will ensure adequate funding

is available. If funding is not adequate, the ACO in

conjunction with the PM shall either request and obtain

additional funding or decide not to add the estimated work to

the contract.

f. Once the ACO has determined the proposed/negotiated cost

is fair and reasonable and the proper funding is available to

cover the growth task, the ACO may authorize the contractor to

proceed with the work. If the ACO authorizes the contractor to

proceed with the work in advance of a formally executed contract

modification, then the ACO shall document his/her granting of

authority to proceed with an email to the contractor. These

emails shall be retained.

g. The ACO will draft the contract modification, also known

as a Supplemental Agreement, (SA) to add the growth work to the

contract. For the purpose of efficiency, RCCs may be batched

together for purposes of executing a contract modification. The

ACO and contractor must both sign the contract modification to

fully execute it. Additional information is contained in

reference (d).

5. Process Control Procedures (PCP) and Expanded Process

Control Procedures (EPCP)

a. Reference (a) Section 009-09, technical

publications/technical manuals, reference (f) and Work Items

invoke the requirements for contractors to develop PCPs and

EPCPs. PCPs are invoked on specific technical work processes

where the performance of inspections and tests alone cannot

assure a quality product. EPCPs are also required on work being

performed on critical systems identified in and per reference

(f).

(1) All PCP/EPCPs developed by the contractor shall be

submitted to the designated Code 200 representative for logging,

review, and distribution.

(2) Quality Management Division and the Engineering

Department (Code 130/200) reviews the contractor procedures and

maintains records of their review findings on the contractor

procedure including: procedures, Coating Application Product

Summary (CAP) Sheets and PCP/EPCPs accepted or rejected as

appropriate. They also review all PCP/EPCPs to the requirements

of reference (a) Section 009-09, reference (b) and/or the

requirements document that specified the development of the

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procedure. The MT and the contractor are informed of the

acceptability of the procedures.

(3) Any changes to the accepted PCP/EPCP shall be

requested by the contractor via a serialized letter or CFR and

accepted by Quality Management Division and the Engineering

Department (Code 130/200) before the contractor is allowed to

proceed.

b. SBS shall ensure appropriate procedure requirements are

invoked in the Work Item and its modifications.

c. SBS shall also ensure all necessary requirements for

development of PCP/EPCPs are incorporated in the Work Item and

its modifications referencing applicable specification.

6. Internal Reports

a. The following sections establish procedures and

responsibilities for processing and handling of requests.

b. Liaison Action Record (LAR)

. The LAR system was

established by reference (i) to provide an easy method to

communicate technical questions about ship alterations from the

field to the Planning Yards and receive timely answers in

return.

(1) LARs are generally prepared by Design personnel,

Shipbuilding Specialists, and Planning Yard On-site

Representatives (OSR), but can be initiated by any RMC personnel

who needs direction on a Shipalt installation or any other

technical question from a Planning Yard or NAVSEA Headquarters.

(2) Processing a LAR

(a) Originator has a technical question requiring PY

or NAVSEA HQ resolution.

(b) Originator contacts the Engineering Department,

Design Division, to get a LAR form (see enclosure 1) and draws a

LAR record number. The LAR record number consists of 3 parts:

the SHIPALT number + ship’s hull number + unique record number

(from list in binder). If the issue is not ship related, the

first part is left blank.

(c) Originator enters the following information

on the LAR form:

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(1) Addressee’s name and address, LAR number,

date, subject of the LAR, a brief but clear description of the

technical issue, originator’s name and code, and the required

deadline date for the answer. (Assistance in filling out the

form is available from any Planning Yard OSR or Design

Supervisor).

(d) The LAR is then submitted to the Engineering

Department for review and signature.

(e) Upon approval, the LAR is passed to NAVSEA

HQ or the appropriate Planning Yard (PY) by the Engineering

Department with info copy to originator via fax/email.

(f) Replies will be written at the bottom of the LAR

form and transmitted back to the PY OSR or Engineering who will

then distribute the document to the LAR originator, completing

the process.

c. Reverse Liaison Action Record (RLAR). The PY needed a

similar vehicle to quickly disseminate information about changes

to SHIPALT design. This variation of LAR is called a Reverse

Liaison Action Record. Using the same basic LAR format, the

RLAR announces changes to an existing SHIPALT design to

installing activities in the field. The information provided by

RLARs is quickly prepared and informal but technically complete.

It can consist of revised drawings, sketches, marked-up drawing

prints and/or lists of technical requirements that can be

incorporated directly into contract specifications during either

the planning phase or during contract execution. All technical

direction presented by RLARs are considered mandatory by

definition and must be incorporated into the specifications.

(1) Processing an RLAR

(a) RLAR is initiated or received by the PY OSR or

Engineering and upon review is forwarded to the PM for the

availability involved.

(b) PM provides the RLAR to the person responsible

for including it into a specification. If received during

contract execution, the SBS will be required to develop an RCC

to incorporate the RLAR into ongoing work.

(c) Upon incorporation of the RLAR in contract

specifications, the PM will annotate this fact on the bottom of

the RLAR form and return it to Engineering.

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(d) Engineering will then fax a copy of the

completed RLAR form to the originating Planning Yard.

d. Engineering Service Request (ESR). The SBS shall

initiate ESRs when the following instances occur; however, usage

is not limited to these specific instances.

(1) Contractor requests for deviation from specification

requirements.

(2) Changes to work specifications including SHIPALTs

that may alter location of equipment, dimensions shown on

drawings, or material.

(3) Material deviations not reflected in work

specifications, equipment technical manuals and/or drawings.

(4) Data provided by contractor does not match with

information available in the Work Item references.

(5) The requirements called out in references listed in

Work Item are vague.

(6) Evaluation of chemical analysis and shall include

the following:

(a) Date and serial number of the letter forwarding

the lab report along with the name of the prime contractor.

(b) Type of waste being analyzed, i.e. waste oil,

fuel oil, bilge water, etc.

(c) The approximate quantity of waste from which the

sample was taken.

(7) Dependent upon the urgency, the SBS shall initiate a

phone call to the Engineering Department for the required action

and, when possible, verbally obtain the desired technical

information and follow-up with written notification.

(8) SBS shall report all ESRs not answered within three

days to the PM.

(9) SBS shall initiate action to implement changes in

requirements due to the answered ESR into the Work Item via a

CFR or RCC.

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(10) An ESR is a government issued document and shall

not be issued to the contractor. Information from the ESR shall

be extracted for answering CFRs. The ESR number shall be

annotated in CFR for government reference.

e. Material Request (MR)

(1) SBS/contractor shall initiate an RCC to cover costs

related to work item changes when Government Furnished Material

(GFM) is changed to Contractor furnished material on work being

accomplished by the contractor.

(2) SBS/contractor shall initiate an RCC to cover costs

related to work item changes when GFM is added to the work being

accomplished by contractor.

(3) SBS shall initiate an unsatisfactory request via the

MT ILS support personnel when contractor reports defective

Government furnished material.

f. Safety Reports

(1) SBS, when assigned by the PM, will accomplish a joint

Daily Safety Inspection of the vessel with Ship’s Force, the

contractor’s Safety Representative, a government safety

representative and an Alteration Installation Team (AIT) sponsor

representative (when applicable). Walk throughs are to discover

any deficient conditions and potential hazardous situations.

All discrepancies are to be documented and a responsible party

assigned to correct the problem. A follow up is then conducted

to ensure corrective action has been taken.

(2) SBS shall ensure the contractor develops and

distributes a written report of any unsafe conditions found

during the Safety Inspection. Reports shall be placed in the

ship’s Safety Log with a copy to be provided to the contractor’s

and the government’s safety representative for corrective

action.

(3) SBS is responsible for documenting safety

observations as well as deficiencies in the PVI database. The

SBS shall contact the Safety Office and/or the assigned QAS

representative for all “Method B” safety CAR violations.

g. Lessons Learned Improved Feedback Reporting. The SBS

shall ensure that a “Lessons Learned” is entered in the NMD

program and given to the PM for inclusion into the Lessons

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Learned Conference (LLC) when problems occur, such as when

specifications are encountered that result in excessive in-scope

growth work, new work, schedule delays and/or equipment/system

damage and waste and could be of a reoccurring nature.

(1) A Lessons Learned is a U.S. military and government

term used to describe the "after-action" discussions and

evaluations of an agency's (or multiple agencies') performance

following an exercise, training session, or major event, such as

a CNO availability.

(2) Lessons Learned feedback shall be accomplished as

items/changes are initiated.

7. Master Files and Logs

a. Maintenance and Disposition requirements for Quality

Assurance (QA) Inspection Records establish procedures and

responsibilities for the retention and disposal of QA Inspection

Records for each Availability/Job Order.

b. Per reference (b), each SBS shall establish and maintain

quality assurance records for each Availability/Job Order.

These records may be established and maintained electronically

in NMD; if it is computer generated or it is on a CD, it must be

accessible. As a minimum, the following documentation/records

shall be a part of each master file:

(1) Work specifications (Basic plus all related RCCs)

(2) Completed Product Verification Inspection (PVI)

computer database checklists

(3) Inspection logs

(4) Checkpoint verifications

(5) Process Control Procedures (PCPs) and Expanded

Process Control Procedures (EPCPs)

(6) Corrective Action Request (CAR) records

(7) Condition Found Reports (CFR)

(8) Engineering Service Requests (ESRs).

(9) Inspection/Test Reports (NDT, Level I, P-1, etc).

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(10) Completed Corrective actions and results.

(11) Records, correspondence and other documents

concerning violations of work place safety regulations,

respiratory safety, ventilation, and dust level controls which

pertain to the use/removal of insulation materials.

(12) All notification of insulation removals, whether

asbestos or non-asbestos.

(13) All reports concerning air monitoring results,

space certification and final fiber count resulting from

insulation rip outs.

(14) Control of shipboard removal of thermal insulating

material process control procedures.

(15) SBS shall provide copies of all asbestos reports to

the Environmental Manager for review.

(16) Material Identification and Control (MIC) for

piping systems records per reference (a) Section 009-27.

c. SBS will maintain the master files in an auditable

condition. Review records for completeness and forward to the

PM who will submit records (these include SRA, DSRA and EDSRA

availabilities) to the local RMC Quality Management Division no

later than 30 business days after the completion of the

availability.

d. Quality Management Division shall maintain all

records/reports for a period of one year after the end of the

availability/Job Order, after which the master files shall be

boxed and maintained in assigned staging/storage area for a

period of two additional years. Upon completion of three years

onsite storage, records may be shipped to the nearest Federal

Records Reserve Center or archive site for three additional

years. Following the total six years retention period,

inspection records, excluding Level I records, may be disposed

of unless legal action is pending with contractors for which

these records pertain.

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Appendix A

Sample

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Appendix B

Letter of Transmittal (Sample)

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Appendix C

SAMPLE

LIAISON ACTION RECORD (LAR) TECH SPEC:

FROM:

ACTION NO:

TO:

DATE:

Subj:

Enclosure:

ORGINATOR:

CODE:

APPROVED:

QUESTION OR ACTION REQUIRED: REPLY IS REQUESTED BY:

For “answer or action taken comments” see below.

COMPLETED BY:

APPROVED BY:

DATE:

ANSWER OR ACTION TAKEN:

DISTRIBUTION: PM, PE, CSPE & PEO SHIPS PMR

Planning Yard Code:

Overhaul Yard Code:

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Chapter 6

Quality Assurance Program

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) CNRMCINST 4700.9, Availability Quality Management Plan

(QMP) Standard Operating Procedure (SOP)

(c) NAVSEA Standard Items

(d) Naval Surface Treatment (NST) Manual

Appendix A - Sample Memorandum of Understanding (MOA)

Appendix B - Sample Minor Non-Conformity CA Form (Method “A”)

Appendix C - Sample Major Non-Conformity CA Form (Method “B”)

Appendix D - Sample Systematic/Critical Non-Conformity CA

Business Letter Format

1. Introduction. This chapter establishes the basic provisions

for the RMC repair Contract Administration Quality Assurance

Program (CAQAP) for hardware and technical data. This includes

provisions for tailoring the implementation of these programs to

the particular need, based on contractual requirements. There

are seven elements of the CAQAP that are designed to provide a

systematic program for ensuring contractor compliance with

contract requirements. These elements, which are based on the

deliverable product and contractual requirements, are Planning,

Document Review/ Procedure Review (PR), Procedures Evaluation

(PE), Product Verification Inspection (PVI), Quality Audits,

Corrective Action and Quality Data Evaluation (QDE). Each RMC

will develop, apply and maintain an effective program for

performing Government QA actions consistent with the CAQAP.

a. It is the role of the SBS to determine if the

contractor’s performance of work complies with the requirements

of the contract. Accordingly, the SBS will determine the

effectiveness of the contractor’s quality effort, as well as

perform the product inspections necessary to ensure contractor’s

conformance to the specification.

b. The following sections outline the requirements for

Shipbuilding Specialists to effectively implement CAQAP as set

forth by NAVSEA and reference (a), Volume VII, Chapter 11.

2. Quality Assurance Inspection Team

a. Although the RMC is the Contract Administration Activity

and the authority for acceptance of accomplished work per the

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contractual agreement, the ship’s Commanding Officer should be

in agreement that the work performed on the ship is

satisfactory. Therefore, it is encouraged that RMC inspection

teams are augmented with ship’s force personnel to assist with

observing and accepting Government Inspections (G-Point) and

Process Verification Inspections (PVI).

(1) Reference (a) specifies that a Memorandum of

Understanding (MOU) be established between the ship and the

other commands involved. The MOU establishes procedures and

functional responsibilities for joint RMC/Ship’s Force Quality

Assurance inspection team operations. Appendix A is an example

of a MOU.

b. The inspection team will be comprised of a designated

QAS (Quality Assurance Specialist) and three groups of people:

(1) RMC Shipbuilding Specialists (SBS)

(2) Ship’s Force TAD personnel assigned to RMC

Quality Assurance

(3) Contractor Quality Assurance inspection personnel

c. Government personnel partners with the contractor to

resolve quality issues and improve quality processes.

Government personnel will not serve as a replacement for the

contractor’s own quality management system, nor will Government

personnel be used by the contractor as a progressive inspection

device to determine end product acceptability.

3. Quality Plans. Waterfront Operations (WFO) maintenance

teams will use the QA Plan developed by the QA Department to

provide PVI’s and inspections of the contractor’s production

efforts. Per reference (b) the use of the QA Plan and

development of the QA Package to be turned over to the QA

Department at the end of the availability.

4. Government Notification Points (Checkpoints)

a. Witnessing the contractor’s performance of checkpoints

is the responsibility of the SBS. The contractor is responsible

for scheduling all checkpoints per reference (c) Section 009-04.

The insertion and format requirements of a G-Point are spelled

out and defined in detail in reference (a), Volume VII, Chapter

4, appendix 4E. Reference (c) further states that the

supervisor (NSA) is to direct the contractor specifically how

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and by what method(s) the supervisor (NSA) is to be notified for

G-points.

(1) This should be decided and communicated to the prime

contractor at the beginning of the availability. If the

specified method is not effective, change it until you find one

that is effective. Any G-point that was missed due to improper

notification will result in a CAR being issued to the

contractor. It is not your responsibility to perform the

checkpoint and accept the work. This is the contractor’s

responsibility. Your job as an SBS is to observe and ensure

that the work meets the requirements of the contract and all

aspects of the inspection or test observed have met the

contractual requirements you sign as a witness. An exception to

this is for critical coated area inspections. For these

inspections you are performing the duties of the third party

inspector and your signature on the documents indicates

acceptance of the product by the Government. Ensure you have

the required certification before signing for government

acceptance.

(2) In addition, while evaluating the contractor's Non-

Destructive Testing (NDT) on a specific product, the SBS must

have the specialized training, experience, and certification in

NDT. The QA Department has developed a training program for

nondestructive method testing. Experience required as a

prerequisite for NDT certification can be obtained by actual

experience or by performance of procedure evaluation or process

quality audits of a contractor’s inspection functions in the

applicable NDT method.

(a) Prior to start of an availability (or whenever

continuous maintenance and emergent work is being done), the PM

will assign an SBS, as well as a back-up SBS, who will be

responsible for each work item. All checkpoints shall be

witnessed by the SBS as required by work item(s) and/or

reference (c) and documented in the NMD.

(b) When the contractor is ready to call out a

checkpoint, proper notification will be sent for action to the

assigned SBS, back-up SBS and QA Ship’s force personnel. The

contractor shall notify the RMC, per reference (c) Section 009-

04, a minimum of four hours in advance for all checkpoints with

time, date, and location noted. For nights and weekends, the

contractor shall notify the RMC a minimum of four hours prior to

the end of the preceding day shift.

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(c) To cancel test and inspection G-Points scheduled

after normal day shift working hours, on a weekend or Federal

holidays, the contractor is to notify the supervisor (NSA) as

soon as known, but no later than two hours prior to the

scheduled event.

(d) The SBS determines the best way to cover the

checkpoint and ensure it is completed. If the SBS is unable to

attend a checkpoint due to another previously scheduled event,

he/she will notify the Project Manager so that another SBS or

other qualified project team member can be assigned to

accomplish the check point. Rationale for missing a checkpoint

shall be documented in NMD. No “critical coating” checkpoints

will be missed. Request overtime from the PM if required.

b. While evaluating the contractor’s performance of work on

a specific product, the SBS shall require the contractor only

meet those requirements set forth in the contractual documents

and will not require higher quality work than that set forth in

the specifications. Doing so provides the contractor with

grounds for requesting an increase in price to cover the higher

costs of performance. Lower quality work or work of a lesser

scope than specified in the contractual documents should not be

accepted. Work performed will only be accepted when the work

conforms to the specification and contract requirements

including applicable changes.

c. If a government checkpoint has been requested and the

product is not ready for inspection or items accepted by the

contractor are found to be nonconforming during the government

inspection, the SBS will notify the contractor that contractual

requirements have not been met. In addition, the SBS will

discontinue the checkpoint and initiate a Corrective Action

Request (CAR). See Appendixes (B) and (C) of this chapter.

d. SBS/PM shall meet with the ship and establish procedures

for notifying the ship of checkpoints. As mentioned in section

B, the CO will normally assign members of ship’s force to

inspect work performed on the ship. If the ship is dissatisfied

with the quality of the contractor’s work on an individual item,

the ship’s inspector will not attempt to require contractor

personnel to redo or otherwise amend the work performed.

Instead, they will relay the findings or concerns to the

MT/cognizant QAS who will then take the appropriate action.

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e. To guarantee proper documentation of checkpoints, the

SBS shall: (See SBS Procedure 15 in Volume II of this desk

guide).

(1) Ensure the contractor's checkpoint notification

form/inspection record includes the ship's name and hull number,

Job Order and Work Item numbers, date, time, and signature of

the contractor’s authorized representative who witnessed or

performed the test or inspection.

(2) Ensure the contractor’s/subcontractor’s inspectors

who witness or perform and sign for all inspections are

qualified and appropriately certified.

(3) Ensure the contractor has accept/reject criteria

identified and any applicable government authorized deviations

available at the checkpoint site.

(4) Verify that the contractor has marked the

appropriate SAT or UNSAT block of the Inspection record, after

the contractor has accepted or rejected the inspection, and

before you sign.

(a) You are required to print and sign your name in

the customer or regulator signature line of the Contractor’s

original QA Form. This identifies you concur/do not concur with

contractor results of the test/inspection accomplished. If you

do not concur (i.e. UNSAT is checked), a CAR shall be initiated

as discussed in paragraph 6 of this chapter. You shall also

indicate your disagreement by writing “do not concur” by your

name.

(b) Additionally, for preservation/non-skid of

critical coated area checkpoints, the SBS shall also sign the QA

Checklist form appendices required by reference (c) section 009-

32. This signature represents the government rep has validated

all information/data/results identified on the appendices are

complete and all requirements were met (or that a deviation/

waiver was approved supporting any non-adherence to

requirements). In order to witness this type of check point,

the SBS shall be NBPI (Navy Basic Paint Inspector) or NACE

(National Association of Corrosion Engineers) Session 1

Certified in order to inspect critically coated surfaces.

(c) Document reasons why checkpoints were not

accomplished in NMD. Examples of reasons could include:

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confidence in the contractor’s inspection system, overtime not

authorized, and lack of personnel.

(d) Ensure the signature block will reflect if

ship’s force failed to show when requested.

(e) Enter the checkpoint information into the NMD

program upon completion of the checkpoint. If the SBS who

witnessed the checkpoint is not the SBS of record for that work

item, the attending SBS shall give a copy of the checkpoint

inspection to the SBS of record.

(f) Ensure the contractor records the results in his

test and inspection plan within 72 hours and that the signatures

are legible.

(g) Incorporate the checkpoint notification

form/inspection record into the master files.

f. SBS must have specialized training, experience, and

certification in NDT while evaluating the contractor’s NDT on a

specific product. SBS shall inform Code 130 of all checkpoint

notifications for radiographic (RT) and ultrasonic (UT)

inspections. If the SBS is certified but does not have the

specialized training, they need to contact the RMC Code 130 to

assist in the witness of inspections.

5. Product Verification Inspection (PVI) Documentation

a. PVI is an element of CAQAP which verifies the product

offered by the contractor to the RMC for acceptance conforms to

contract requirements. This is accomplished by the Quality

Assurance Inspection Team via physical examination,

verification, testing, concurrent witnessing, or monitoring of

all aspects of the overhaul process. Normally, these

inspections are accomplished by the SBS.

(1) PVI is conducted utilizing checklists or an

attribute system that includes Government notification points

discussed in paragraph 4 above), critical inspection points, and

those areas that may be concealed from further inspection using

Objective Quality Evidence (OQE). Refer to reference (a),

Volume VII, Chapter 11.5.4 for additional information and SBS

Procedure 17 of this chapter.

(a) OQE is any statement of fact, quantitative or

qualitative, pertaining to a quality of a product or service

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based on observations, measurements or tests that can be

verified.

b. Each SBS assigned to an availability will establish and

maintain a “QA Package” to be turned over to the assigned

Quality Assurance Specialist (QAS) at availability completion.

If a QAS has not been assigned, notify the Quality Management

Division to pick up records.

(1) Package will include the following documentation:

(a) Hard copy of each assigned work item and a QA

plan for that work item. The PVIs identified in the QA plan

will be performed and documented within 24 hours of

accomplishment or the reason why it was not documented.

(b) Complete copy of each checklist and/or attribute

list will be included. PVI results will include the number of

observations/inspections and nonconformities.

(c) Complete copy of each CAR issued referenced by

number on the QA plan.

(d) Each “in process” inspection will be annotated

with the item(s) inspected and SAT/UNSAT noted.

(e) Any inspection accomplished by Ship’s Force TAD

QA personnel assisting with work assigned to an SBS will be

documented in the SBS QA package.

(f) A copy of the QA plan will be maintained in the

QA package for each work item.

(g) PVI checklists for areas identified in Risk

Management Memorandum (RMM) as high risk, or identified in the

QA plan.

6. Corrective Action Program

a. RMC has implemented a comprehensive corrective action

program to deal with problems occurring on the waterfront. The

SBS should be intimately familiar with the Correction Action

Report (CAR) process as discussed in reference (a), Chapter 11,

Paragraph 11.5.6.

b. Corrective action is required to ensure product quality

is maintained when the Contractor’s Quality Control or

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inspection system breaks down. If the contractor identifies a

non-conformance, the contractor’s staff including their Quality

Assurance Inspector (QAI) will jointly investigate the non-

conformance. If a RMC representative identifies a non-

conformance, the same process takes place with the RMC

representative involved in the investigation. The investigation

will entail:

(1) Sighting of the non-conformance;

(2) Discussion of the contractual requirements;

(3) Discussion of the cause;

(4) Discussion of the method of documentation required;

and

(5) Discussion of the required actions.

c. The SBS shall initiate either a Method A or Method B

Corrective Action Request (CAR) when contractor non-conformances

to contract requirements are identified. If the SBS decides to

allow the contractor to write and issue the CAR, they must

request a copy of the issued CAR and completed CAR. Route all

CARs through your QAS. This is necessary so we can keep track

of them and provide a detailed report for CPARS. Contractor’s

responses to CARs and requests for extension of time to answer

are to be routed to your QAS for approval, close out, resolution

and tracking. Your QAS is the single point of contact for CAR

sign off and resolution acceptance. The following are

definitions of the various types of Non-Conformities:

(1) MINOR (Method “A”) - May be used to identify and

document any nonconformance that is minor in nature and easily

correctable. Each nonconformance shall be described in

sufficient detail to allow an understanding of the contractual

noncompliance. See Appendix B of this chapter for a sample of a

Method “A” Form.

(2) MAJOR (Method “B”) – Used to identify and document

any nonconformance that requires correction. Each Corrective

Action (CA) shall quote the specific requirements and will

include a description of the nonconformance that clearly

indicates the contractual nonconformance. See Appendix C of

this chapter for a sample of a Method “B” Form.

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(3) Systemic/Critical Non-Conformity CA (Method “C” or

“D”) – A Systemic (Method “C”) or Critical (Method “D”)

Nonconformity CA is a business letter, on letterhead signed by

the appropriate RMC representative, notifying the Contractor’s

appropriate level of management that a Systemic or Critical

problem exists and immediate management action must be taken to

comply with the provisions of the contract. This method is used

when problems exist which the Contractor has failed to control

or upper management’s attention to the problem is necessary.

See Appendix D of this chapter for sample letter format.

7. Preservation Process Oversight

a. Preservation of Naval ships, boats and craft has become

increasingly more complex and expensive as new coating systems

and increased quality assurance requirements are invoked due to

technological advances and product sophistication in an effort

to obtain improved coating life and reduce the effects of heavy

metals and volatile organic compounds (VOCs) on the environment.

(1) NAVSEA Standard Item updates will be periodical

coinciding with other technical guidance. Notice of updates

will be sent to all personnel as changes occur.

(2) Reference (d), Chapter 631 for preservation and NSTM

Chapter 634 for Non-skid and deck coverings are the documents

from which requirements are derived. However, reference (c)

section 009-32 is the contractual document for technical and

administrative requirements for surface ships. Reference (c)

section 009-32 and Appendices are held at the Naval Surface

Treatment (NST) Center website, http://www.nstcenter.biz. It is

highly recommended that all Shipbuilding Specialists familiarize

themselves with this site.

b. Once again, the SBS must have specialized training

(i.e.: NBPI and/or NACE) and be certified to inspect critical

coating applications and preservation.

8. Government Quality Assurance Actions at Source

. When the

contractor sends work outside of a 50 mile radius from the site

of contract performance they are required to notify the

supervisor (NSA) so that a decision can be made on the need to

ask various other Government agencies to perform any required

oversight of the work that we would normally be able to perform.

When you are presented this circumstance, contact your QAS for

assistance before the equipment is crated and shipped so that

all necessary requirements can be accomplished.

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9. Specification Review

a. There are requirements to review work items to ensure

they have appropriate Inspections as delineated in reference (a)

Volume VII, Chapter 4, Appendix 4E, and any additional ones that

you might feel are necessary or required based on your

experience. Work items also need to include the appropriate

accept/reject criteria, written tolerances, etc. Keep in mind

the following:

(1) Ensure that assigned Design Liaison(s), Quality

Assurance Specialist(s), Contract Specialist(s), and

Administrative Contract Officer (ACO) are part of the

specification reviews.

(2) Review work items to ensure that they adequately

address the repair requirements requested via the work request.

(3) Ensure work items comply with technical

requirements.

(4) Provide feedback and or corrective action request to

preparing activity to formally report work item non conformities

and/or errors using NMD.

(5) Ensure work items contain any recommended changes,

where applicable, prior to issue to contractors or another

RMC/activity.

(6) Request support for any safety and environmental

concerns arising from the review process.

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Appendix A

SAMPLE

DEPARTMENT OF THE NAVY

SOUTHWEST REGIONAL MAINTENANCE CENTER

3755 BRINSER ST SUITE 1

SAN DIEGO, CA 92136-5105

DEPARTMENT OF THE NAVY

USS SHIP NAME (HULL #)

FPO AP 96667-1291

SOUTHWEST RMC USS SHIP NAME (HULL #)

4855 4855

Ser 600/ Ser 00/

Date Date

MEMORANDUM OF UNDERSTANDING

BETWEEN

SOUTHWEST REGIONAL MAINTENANCE CENTER

AND

COMMANDING OFFICER, USS SHIP NAME (HULL #)

Subj: SWRMC/SHIP’S FORCE QUALITY ASSURANCE INSPECTION TEAM FOR

USS SHIP NAME (HULL #)

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

1. Purpose. To establish procedures for functional

responsibilities for Southwest Regional Maintenance Center

(SWRMC) and Ship’s Force performance of the Contract

Administration Quality Assurance Program (CAQAP) as outlined in

Volume VII, Chapter 11 of reference (a).

2. Background. The mutual goal of the Commander, SWRMC and

Commanding Officer, USS SHIP NAME is to ensure compliance with

the requirements throughout the depot level availability. This

goal can be realized by the development of a team of personnel,

from both SWRMC and Ship’s Force, who are committed to

monitoring the contractor’s work for quality. This team is made

up of four components. First, the Ship’s Force QA organization

will provide a broad base of surveillance over contractor work.

Second, the assigned SWRMC Shipbuilding Specialists (SBS) and

Liaison Engineer (LE), augmented by three to five Ship’s Force

personnel assigned TAD per this Memorandum of Understanding

(MOU) (note: actual number should be tailored to fit

availability requirements) and a Quality Assurance Specialist

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(QAS) assigned to the availability, will perform necessary

government oversight of contractor oversight, as well as

Corrective Actions and Product Verification Inspections. Ship’s

Force TAD Quality Assurance representatives are a valuable

resource in that through intensive training, they can act with

greater authority than the members of the Ship’s Force QA team

due to contractual relationships. The efforts of the QA team

will be a principal contribution to the quality of USS SHIP

NAME.

3. Responsibilities and Actions

a. The Commander, Southwest Regional Maintenance Center

shall:

(1) Assign three to five SBSs and a QASs to USS SHIP

NAME’s availability. The QAS will be designated to act as the

primary point of contact for the Ship’s Force QA team.

(2) Establish and maintain a system which will

effectively utilize Ship’s Force Quality Assurance personnel to

augment the SWRMC Quality Assurance organization, including the

designation of the QAS to serve as the primary point of contact.

(3) Provide formal and on-the-job training to the ship’s

Quality Assurance personnel on the purpose, techniques and

documentation requirements of the SWRMC and contractor Quality

Assurance/Inspection system as required.

(4) Provide documentation, forms and other necessary

support for the performance of Ship’s Force Quality Assurance

functions.

(5) Establish a system for review, processing and

follow-up of Corrective Action Requests (CAR) to include

feedback informing the originator of the final disposition.

(6) Contact USS SHIP NAME's Availability Coordinator as

soon as possible after contractor notification, to disseminate

applicable Government Inspection Point (“G” Point) information.

b. Commanding Officer, USS SHIP NAME shall:

(1) Assign sufficient Ship’s Force Officers, Chief Petty

Officers and Petty Officers who are experienced and familiar

with the ship for the duration of the availability to the Ship’s

Force Quality Assurance Division.

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(2) Ensure assigned personnel are provided ample

opportunity for familiarization with the contract work

specifications.

(3) Ensure that Quality Assurance functions are the

primary responsibility of assigned personnel.

(4) Assign the Availability Coordinator to coordinate

the interface between SWRMC personnel and the Ship’s Force

Quality Assurance assigned personnel.

(5) Ensure Ship’s Force personnel perform surveillance

of Ship’s Force and contractor work ensuring ship’s safety

procedures are observed (e.g. safe use of pneumatic and

electrical tools).

(6) Assign three to five Quality Assurance personnel to

the RMC under the following guidelines:

(a) For QA matters, report to the QAS assigned to

the availability.

(b) For military matters, such as leave and other

authorized absences, report to their assigned Availability

Coordinator.

(c) Personnel will be allowed to leave for required

training and drills during designated times.

(d) Assigned personnel will be exempt from the

ship’s watchbill.

c. Ship’s Force members of the Quality Assurance Team

shall:

(1) Report to the ship’s Availability Coordinator for

all military and personnel matters.

(2) Perform surveillance of the contractor’s work

including observation of “G” checkpoints, inspections and tests,

and review of the records as necessary to track contractual

conformity as specified in reference (a).

(3) Be present at all “G” checkpoints on work being

performed in the local area as identified by the contractor for

the areas/jobs assigned.

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(4) Observe and/or document “MINOR” type work

nonconformance as described in paragraph 11.10.2.1 of reference

(b). When MINOR type corrective action is appropriate, the

assigned Ship’s Force QA personnel shall call the nonconformance

to the attention of the SWRMC SBS or QAS. They must not tell

the contractor what must be done to correct it or direct the

contractor’s action. However, an approach such as calling the

contractor’s attention to a deficient installation, missing tag,

valve, etc., is in order. If “on the spot corrective action” is

not taken by the contractor, the problem will be referred to the

SWRMC counterpart as soon as possible.

(5) Document all inspections, witnessing of tests, “G”

checkpoints, and contractual surveillance on necessary forms

provided by SWRMC representative as described in reference (b).

4. The concept of using Ship’s Force personnel to augment the

SWRMC Quality Assurance staff is fully supported. However, it

should be understood the Ship’s Force personnel shall not direct

actions by the contractor.

“If a ship’s inspector is dissatisfied with the quality of the

contractor’s work on an individual item, he will not attempt to

require contractor personnel to redo or otherwise amend the work

performed. Rather, he will relay his criticism to the cognizant

SWRMC representative who will take appropriate action.”

____________________ _____________________________

RMC CO NAME SHIP CO NAME

COMMANDER COMMANDING OFFICER

SOUTHWEST RMC USS SHIP NAME (HULL #)

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Appendix B

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Appendix C

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Appendix D

Sample Systemic/Critical Nonconformity CA Business Letter Format

DEPARTMENT OF THE NAVY

SOUTHWEST REGIONAL MAINTENANCE CENTER

3755 BRINSER STREET STE 1

SAN DIEGO, CA 92136-5299

4855

Ser 130/

Date

Mr. John Smith

ABC Company

123 C Avenue

San Diego, CA 92136

Dear Mr. Smith,

SUBJECT: METHOD “C” CORRECTIVE ACTION (CA)

1. The purpose of this Method “C” Corrective Action is to

solicit senior Contractor Management involvement in the

resolution of repetitive systemic contractual nonconformance’s

Occurring during the performance of work aboard the USS FISH

(LPD 81) and to advise the Contractor that the work performed is

not per the terms of the Job Order ABC 3-96. Some specific area

of concern that led to this level of corrective action are as

follows:

a. The specification directed the Contractor to reinstall

valves using new fasteners per MIL-STD-777D.

b. MIL-STD-777C, paragraph 12(f), states: “Nickel-copper

Alloy bolting shall be per class A hot rolled of QQ-N-281 for

bolts and class B hot rolled or cold drawn of QA-N-281 for nuts.

If not readily accessible for examination of maintenance in

service, due to their location, and carbon steel bolting is

specified for the rest of the system. Some examples are:

bilges, below floor plates, tank, etc.”

c. On 6 August 2010, CA No. 9288-TG-0318 was issued to ABC

Company for failure to comply with the requirements of Work Item

521-11-004, paragraph 3.7, and 529-11-004, paragraph 3.7.

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d. The corrective action response provided on 29 August

2010, by Automatic Boiler Controls (ABC) Quality Assurance (QA)

Manager, as documented on CA No. 9288-TG-0318, has been reviewed

and found unacceptable.

2. The above stated management issues are not intended to be

all-inclusive. We are very concerned about the apparent

ineffective management and communication processes currently in

place that allow these types of problems to occur.

3. Therefore, we consider it necessary for you to initiate and

immediate review of your management system and processes.

4. Additionally, we request that you submit a management plan

of action to me within seven (7) working days from the date of

this letter depicting the actions you have taken or plan to take

that will preclude these types of management problems from

recurring on future job orders.

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Chapter 7

Environmental, Occupational Safety & Health

Ref: (a) 29 CFR Part 1915: OSHA Shipyard Industry Safety

Regulations

(b) 40 CFR Parts 63, 260, 300, USEPA Environmental

Regulations

(c) US Code Title 10 USC 7311, Hazardous Waste, Repair of

Naval Vessels

(d) OPNAVINST 5100.23G, Navy Safety and Occupational

Health Program Manual

(e) OPNAVINST 5090.1C, Environmental Readiness Program

Manual

(f) NAVSEA Standard Item (NSI)

Appendix A - Sample Standard Work Item 077-01

Appendix B - Marine Safety Inspection Guide

1. Introduction

a. RMC policy is to be in compliance with all

environmental, safety, and health laws, regulations, and

requirements. RMC is also committed to provide oversight of

contractor operations and compliance with environmental and

safety requirements as specified under the contract.

Environmental controls including proper disposal, reduction, and

elimination of wastes requires constant vigilance by the project

team. Prompt action shall be taken to minimize any

environmental, safety, or health violations. In addition all

violations shall be reported to the Waterfront Operations

Officer and Code 106 as soon as possible.

b. RMC Code 106, Environmental and Safety Division, is

committed to support the Waterfront Operations Department and

Maintenance Teams. Due to manpower limitations however, it is

impossible to provide a dedicated safety or environmental

specialist for each availability. These limitations become more

acute during periods of high work tempo and with the increasing

use of MSMO and IDIQ contracts. It is incumbent on the

Shipbuilding Specialist to be an extra set of eyes and ears on

the waterfront and to notify Code 106 and the Project Manager of

potential safety or environmental problems. Reference (u),

Appendix B, provides guidance when conducting a safety

inspection during an availability.

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c. References (a) through (c) provide the basis for

management of hazardous material/waste by industry and the

Federal Government and detail safety and health requirements.

References (d) and (e) are the Navy (CNO) instructions for

Occupational Safety and Health and Protection of the

Environment. Reference (f) details contract specifications that

provide specific direction to the contractor to ensure they

comply with federal, state, and local environmental and safety

requirements. These references shall act as a guide to

environmental compliance for the SBS in monitoring management of

material/waste including documentation, reporting,

identification, removal, transportation and disposal.

(1) It is imperative that the SBS become familiar with

all applicable regulations and Laws. Different parts of the

country, and the world, have different regulations that must be

strictly adhered to.

2. Safety

a. Shipbuilding Specialists shall maintain awareness of

their work environment and shall perform all oversight and

inspections per references (a) and (d). Shipbuilding

Specialists shall wear proper personal protective equipment

(PPE) required by the specific task that they are assigned.

Before going aboard ship, all RMC personnel shall wear approved

hard hats, steel toed shoes, and safety glasses, and shall have

hearing protection available on their person. Additional PPE

required of the SBS for performance of specific operations

includes fall protection equipment and respirators.

b. Shipbuilding Specialists shall also maintain awareness

of contractor work operations that may or may not be directly

associated with their work assignment, but are in close enough

proximity to present a hazard. Examples include crane

operations, hot work, preservation/painting, etc. The SBS shall

stop work if a situation is observed that presents immediate

danger to personnel or ship’s equipment.

c. Fall Protection/Working Aloft

(1) Work “ALOFT” is considered to be work on board ship

or ground supported structures at a height above normal working

reach of the worker when not provided with support such as a

working platform or ladder. The worker must rely on standing

space afforded by the structure being worked on, such as

mastheads, cross arms, smoke stacks, kingposts, etc. In

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addition, work performed from personnel boxes supported by

cranes is considered to be aloft.

(2) Reference (a) requires that personnel working aloft

wear an approved body harness with a personal fall arrest system

(PFAS). This applies to the SBS while performing oversight and

inspections. RMC personnel shall not work aloft unless they

have been fitted for a body harness and have been trained in the

proper use of the harness and PFAS. Contact Code-106 if you

require this training.

(a) Per reference (d), Chapter 13, RMC Personnel

shall:

1. Be accompanied aloft by a representative of

ship’s force who is qualified in rigging. A minimum of two

additional ship’s force personnel will be present on deck to

render assistance as required and keep all personnel clear from

below the working area.

2. Ensure good footing and good grasp at all

times. Keep the safety or working lanyard secured at all times

except when actually ascending or descending.

3. Secure all tools and equipment with safety

lines.

4. Personnel working on the stack shall be

particularly cautious to avoid dangerous gases and fumes, and

where necessary, utilize appropriate breathing apparatus.

5. Whenever work aloft is conducted at night,

the shipboard Petty Officer In Charge (POIC) shall make certain

that proper lighting is provided. The POIC shall be in constant

attendance whenever work involving unusual hazards is present.

6

. Personnel working over water shall wear life

preservers in addition to a safety harness.

7

. Personnel shall not go aloft using a crane

and skipbox, manlift or man basket without prior approval of the

Safety Manager and/or Waterfront Ops Dept Head.

8

. The ship’s OOD shall be notified immediately

upon completion of the work aloft.

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9. If multiple maintenance teams or work

centers are to work aloft on separate jobs, each group shall

obtain separate authorizations (Working Aloft – chits) from the

OOD.

10. Personnel going aloft shall wear properly

fitted clothing. Loose or baggy clothing presents the hazard of

becoming caught or entangled. Excessively greasy clothing shall

not be worn when performing hot work operations.

11. Personnel engaged in chipping/grinding

shall wear safety goggles, hearing protection devices, and may

require an approved respirator.

12. Personnel engaged in spray painting shall

wear appropriate protective equipment, such as face shields and

may require an approved respirator equipped with proper

cartridges.

13. Personnel shall conform to ship’s

established tag out procedures. The SBS will not be performing

hot work, chipping, grinding, painting, or tagging out

equipment; however he/she will ensure the worker engaged in

these activities is following correct safety procedures.

d. Respirators may be required in confined spaces or other

areas where airborne hazards exist. The SBS shall not enter

areas where respiratory protection is required unless they have

been properly trained and have been fit-tested for the specific

respirator to be used. If there is any question whether a

respirator is required to enter a space or an area, contact Code

106 for verification prior to entry. Further discussion of

Respiratory Protection is in reference (d), Chapter 15.

e. Ship repair and maintenance activities at RMCs include

two types of activities that have the potential to endanger the

health and safety of personnel, or to cause serious damage to

Navy property. These activities include entry into or work

within, on, or adjacent to confined or poorly ventilated

enclosed spaces and hot work in the presence of flammable,

explosive or toxic materials. The SBS shall be familiar with

these conditions and activities to ensure proper safety

procedures and practices are being performed.

(1) Definitions

(a) Confined Space

: is a space large enough to

enter, not designed for continuous occupancy, and

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limited/restricted for entry and exit. Confined spaces on

vessels include tanks, voids, missile tubes and sonar domes.

(b) Poorly Ventilated Enclosed Space

. Any enclosed

space that lacks adequate airflow to dilute contaminated air

with uncontaminated air and maintain general overall safe air

quality. Examples: pits, vats, cargo holds and storage rooms.

(c) Hot Work

. Includes all flame heating, welding,

torch cutting, brazing, carbon arc gouging and any work that

produces heat by any means of 400 degrees F or more. In the

presence of flammables or flammable atmospheres, hot work

includes ignition sources such as spark or arc producing tools

or equipment, static discharges, friction, impact, open flames

or embers, non-explosion proof lights, fixtures, motors or

equipment.

(2) Maritime Gas Free Engineering Hazards. The

following are the principal hazards of concern in Gas Free

Engineering: Personnel who enter into, or perform work within,

on, or adjacent to confined or poorly enclosed spaces, or

perform maritime hot work, should be aware of these potential

hazards. It is imperative that personnel are made aware of the

following hazards and the procedures they must follow to avoid

personal injury and prevent damage to Navy property. These

responsibilities are dictated in Chapter 27 of reference (d).

(a) Confined Space Hazards

1. Potential for a hazardous atmosphere.

2. Potential for becoming entrapped.

3

. Potential for being engulfed.

(b) Poorly Ventilated Enclosed Space Hazards

1. Potential for a hazardous atmosphere.

2

. Inadequate ventilation for work activities.

(c) Hot Work Hazards

1

. Potential flammable or explosive

atmospheres.

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2. Hidden or unrecognized combustible,

flammable, explosive or toxic materials.

3

. Creation of a hazardous atmosphere during

hot work.

4

. Creating hazards in adjacent spaces.

(3) Because of the inherent potential hazards mentioned

above, the following policy is established to meet the goals of

the maritime shore Gas Free Engineering Program. Each Command

policy is delineated from reference (f), Chapter 14, and applies

to all activities involving confined spaces, poorly ventilated

enclosed spaces and performing maritime hot work:

(a) Gas free Engineering personnel have the

authority to permit or deny activities, or specify required

actions for such activities based on their evaluation of the

potential hazards involved.

(b) Personnel shall not enter a confined or poorly

ventilated enclosed space until the space has been inspected and

certified “Safe for Personnel” by the posting of a Gas Free

Certificate.

(c) Personnel are not authorized to and shall not

enter confined or poorly ventilated enclosed spaces certified by

other agencies, commands or contractors to perform work. Access

may only be gained for inspection purposes.

(d) When a Gas Free Certificate is posted at the

entrance of a space, or posted for hot work, personnel shall

read and comply with the written conditions and instructions

before entering into a space or performing any authorized work.

(e) Evacuate a space or discontinue hot work if

conditions have changed or deteriorated for continued safe

activity. Contact the Gas Free Engineering personnel for a re-

evaluation.

(f) No hot work shall be performed for the work

sites listed below, until they have been certified “Safe for

Personnel, Safe for Hot Work” on a Gas Free Certificate.

1. Within, or on any confined space

2. Aboard any maritime vessel

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3. On a structural void such as rudders, keels,

fairwater planes, booms, support stanchions, jacketed vessels

and similar structures

4. On any pipe, tubing, coil or similar device

that enters or exits an enclosed space.

5. Within, on, or adjacent to any structure or

fixture which has contained any flammable or combustible liquid

or gas.

6. In areas that contain pressurized systems

such as hydraulic systems and FREON systems.

7. On any closed structure or container.

8

. When a nearby work process may produce

flammable or combustible gases, vapors, dusts, or fumes.

(4) The SBS shall

prevent untrained or unqualified

personnel from entering confined or poorly ventilated enclosed

spaces. Ensure the following are in place before entering, or

allowing other personnel to enter a confined space:

(a) A qualified safety observer posted outside the

confined space.

(b) Adequate communications between the safety

observer and confined space entrants.

(c) Adequate procedures for an emergency rescue.

(5) Further requirements applicable to the contractor

are detailed in reference (f) section 009-07, Confined Space

Entry, Certification, Fire Prevention, and Housekeeping, and;

section 009-88; CHT and Mogas Tanks, Spaces, and Piping,

including Sewage or Mogas-Contaminated Tanks, Spaces, and

Piping.

f. Fire Prevention and Housekeeping. Reference (f) section

009-07 is a Category I standard item and requires the contractor

to perform a daily “housekeeping and fire prevention

inspection”, and to provide a written report of the results of

this inspection to the supervisor. The title of this work item

and title of this inspection have a legal significance and have

been approved by SSRAC and NAVSEA legal counsel. This

inspection is not a “safety walkthrough” or “safety inspection”.

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RMC personnel, including SBS, PMs, QAS, and Safety or

Environmental specialists, are encouraged to participate in the

“Housekeeping and Fire Prevention Inspection” as their schedules

permit. RMC Code 106 personnel will make periodic inspections

of contractor operations aboard ship and will document the

results of these inspections. These inspections are in addition

to, and are independent of the requirements of reference (f)

section 009-07. As previously stated Shipbuilding Specialists

are required to maintain awareness of potential hazards aboard

ship and are encouraged to notify Code 106 of their

observations.

(1) During your daily shipboard walk-through and

inspections, check for the following:

(a) Frayed and bare electrical cables carrying 110,

220, and 440 volts.

(b) Absence of explosion proof electrical fixtures

as well as grounding leads.

(c) Absence of guards on electrical lights.

(d) Improper and hazardous electrical distribution

systems.

(e) Absence of proper ventilation for work in deep

holds or tanks and voids.

(f) Improper or faulty rigging, life lines, guard

rails, ladders, brows.

(g) Improper use, stowage, and distribution of

toxic, explosive, or inflammable solvents, paints, coatings and

primers.

(h) Inadequate emergency fire-fighting equipment and

rescue apparatus, as well as inadequate water pressure.

(i) Inadequate or improperly trained fire watches.

(j) Absence of lifelines or guards around open

hatches.

(k) Unsafe scaffolding.

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(l) Absence of “NO SMOKING” signs, safety

precaution, or other warning signs.

(m) Inadequate posting of fire watches during

burning and welding operations.

(n) Generally poor housekeeping practices aboard

ship and at pier side, as well as numerous unsafe workmanship

practices in connection with welding, burning, spray painting,

paint and solvent mixing, and in storage of material.

(o) Shipboard fire fighting organization

commensurate with the hazards involved is provided each ship.

(p) Adequate fire-fighting equipment is available

for shipboard fire fighting organizations.

(q) Adequate means of rapid egress from the ship be

provided.

(r) Manhole covers over utility cut-off valves

serving piers be painted and identified to prevent their

obstruction.

3. Environmental

a. Environmental compliance is more difficult to manage

than safety because the U.S. Environmental Protection Agency has

delegated the management and enforcement of environmental laws

to the states. For example, the rules for hazardous waste

management are different in Florida vs. Virginia vs. California,

and as a result, specific regulations and procedures for

environmental compliance differ from state to state.

b. These different, state-by-state environmental rules

require that local work items be developed and invoked in

contracts to cover local requirements and procedures. The

following is a series of Category I, reference (f) that detail

mandatory contractor requirements:

(1) Reference (f) section 009-03 Toxic and Hazardous

Substances; control

(2) Reference (f) section 009-04 General Environmental

Requirements for Work at Contractor’s Facility; accomplish

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(3) Reference (f) section 009-10 Shipboard Asbestos-

Containing Material (ACM); control

(4) Reference (f) section 009-61 Shipboard Use of

Fluorocarbons; control

(5) Reference (f) section 009-65 Polychlorinated

Biphenyls (PCBs); control

(6) Reference (f) section 009-93 Emergency Planning and

Community Right-to-Know Act (EPCRA) and Pollution Prevention Act

(PPA) information; provide

(7) Reference (f) section 009-97 Shipbuilding and Ship

Repair Operations National Emission Standard for Hazardous Air

Pollutants (NESHAPS) for Surface Coating Information; provide

(8) Additional instructions that apply can be found in

reference (e).

c. Regardless of where the work is being performed,

environmental regulations (federal or state law) require

specific procedures or reporting requirements covering a number

of areas including air emissions, hazardous waste, water

pollution, etc. Reference (f) sections 009-93 and 009-97

require the contractor to submit a number of reports to satisfy

federal law requirements. RMC Shipbuilding Specialists are

encouraged to spot check compliance and remind the contractor of

the reporting requirements of these work items.

d. Hazardous Material vs. Hazardous Waste. The

requirements for hazardous materials and hazardous waste are

controlled by two different governmental agencies. The use of

hazardous materials is governed by reference (a) and is

concerned with the health of personnel who either use them or

could be exposed to them. Hazardous waste is governed by

reference (b).

(1) A hazardous material is any item or agent

(biological, chemical, physical) which has the potential to

cause harm to humans, animals, or the environment, either by

itself or through interaction with other factors. OSHA's

definition includes any substance or chemical which is a "health

hazard" or "physical hazard," including: chemicals which are

carcinogens, toxic agents, irritants, corrosives, sensitizers;

agents which act on the hematopoietic system; agents which

damage the lungs, skin, eyes, or mucous membranes; chemicals

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which are combustible, explosive, flammable, oxidizers,

pyrophorics, unstable-reactive or water-reactive; and chemicals

which in the course of normal handling, use, or storage may

produce or release dusts, gases, fumes, vapors, mists or smoke

which may have any of the previously mentioned characteristics.

(2) Hazardous waste is a contaminated chemical or by-

product of a production process that no longer serves its

purpose and needs to be disposed of per the Environmental

Protection Agency. This could include small amounts of

chemicals such as parts washing solvents in a machine shop, or

large amounts of construction by-products.

e. Hazardous Waste

(1) Congress waived sovereign immunity with respect to

federal government facility compliance with local, state and

federal environmental regulations. The Resource Conservation

and Recovery Act (RCRA) authorize the Environmental Protection

Agency (EPA) to regulate hazardous waste from "cradle-to-grave",

meaning from generation to disposal. Those who generate, treat,

store or dispose of hazardous waste are subject to strict waste

management rules. RCRA also authorizes the EPA to delegate

regulatory enforcement authority to the states.

(2) For the hazardous waste rules to be applicable to a

particular substance, it must be first identified as a hazardous

waste. The substance may be a "listed" waste, one of the

hundreds of substances the EPA has placed on a list of hazardous

wastes. Alternatively, the substance may be a "characteristic"

hazardous waste, one that through testing exhibits any of the

four hazardous waste characteristics: ignitability, corrosively,

reactivity, or toxicity. A state, such as California, can enact

more stringent regulations. Used oil, for example, is not a

federal RCRA hazardous waste but it is a California hazardous

waste.

(3) Naval vessels are not facilities and hazardous waste

regulations do not apply to ship's force while the "used

hazardous material" is located aboard the vessel. The ship must

comply with the hazardous waste regulations once the "used

hazardous material" is offloaded to the pier. This exemption

was intended for ship's force. Contractors who stage waste

aboard the ship must manage their waste per applicable

regulations.

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(4) Reference (c) applies specifically to the handling

of hazardous waste during the repair and maintenance of Naval

vessels and requires the Navy to identify the types and amounts

of hazardous waste that will be generated or removed by the

contractor. Reference (f), enclosure (1), defines contractor

generated hazardous waste as generated by the physical actions

of the contractor, Navy generated hazardous waste as generated

by the physical actions of the Navy and Co-generated waste as

generated by the combined physical actions of the contractor and

Navy. This generator classification places the hazardous waste

management and disposal responsibilities on the contractor for

the waste they generate. Ships at the contractors’ facility

maintain their hazardous waste management and disposal

responsibilities for the waste they generate with the assistance

of the local RMC Code 106.

f. Specific Problems

(1) Lead Paint

(a) Almost every drop of paint on every ship in the

Navy has some Lead (Pb) in it. Most paints also contain small

amounts of Cadmium (Cd) and Chromium (Cr). Lead has very good

corrosion inhibiting characteristics when added to paint and it

was used extensively from the 1940’s though the 1970’s in both

construction (bridges, water towers, etc.) and in the shipyard

industry. Navy personnel used to mix their own paint and would

add powdered lead into their paints before application. Old

“red lead” formulations contained lead contents of 25% or

greater by weight.

(b) American manufactures no longer use lead as a

corrosion inhibitor and take great effort in making paints that

have as little lead as possible. However, lead is a very common

chemical in nature and the materials that manufacturers use

(pigments, binders, etc.) to make paint have small amounts of

lead in them.

(c) Reference (f) section 009-32 directs the

contractor to consider all marine coatings to contain heavy

metals including lead, and directs the contractor to NSI 009-03

which is the primary work specification that directs the

contractor to comply with reference (a), Toxic and Hazardous air

contaminants. Since these requirements are very detailed, it is

recommended that Shipbuilding Specialists consult with Code-106

as questions concerning this arise.

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Appendix A

Sample Standard Work Template 077-001

Control of Hazardous Waste Produced on Naval Vessels

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Appendix B

Marine Safety Inspection Guide

General Safety

1. All compressed gas cylinders (in-use or not) secured in

racks, tied up or other-wise safely positioned to prevent

tipping over?

2. Valve protection caps placed tightly on all compressed gas

cylinders not in use?

3. Compressed gas cylinders placed where they cannot

become

part of any electrical circuit?

4. Compressed gas cylinders and manifolds located in the open

air (not within enclosed spaces)?

5. (Chicago-type) high pressure air hose connections pinned or

wired to prevent accidental disconnection?

6. Containers of industrial liquids and solids correctly and

adequately labeled to identify contents and precautions for use?

7. Good industrial housekeeping conditions maintained?

8. First aid and emergency services available in a timely

manner?

9. Air quality/ventilation adequate?

10. Work areas and access ways have adequate lighting?

11. Insulation/lagging (removal and handling) safe practices

maintained?

Personal Protection

1. All employees, including sub-contractor personnel, utilizing

required personal protective equipment (PPE)?

a. Approved hard hat head protection? (Does not include

lightweight laceration caps, etc.)

b. Correct respirators?

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c. Hearing protection? (ear plugs, muffs)

d. Suitable footwear? (Does not include tennis shoes,

sandals, fabric shoes)

e. Adequate eye and face protection?

f. Personal fall arrest system? (When exposed to fall

hazard over five feet and fall prevention guardrails are not

utilized)

g. Personal Floatation Devices? (When working any distance

over water and fall prevention guardrails are not utilized)

Fire Prevention and Protection

1. Contractor notice of intent to perform hot work (“hot work

chit”) submitted to vessel prior to start of welding, burning,

brazing, grinding, etc.?

2. Marine Chemist’s (gas free) certificate, when applicable,

posted at each access to affected space?

3. Competent Person's test/inspection record posted and

updated, when applicable, prior to start of hot work and posted

at each access to affected space?

4. Fire watch personnel in position during hot work, with

special consideration to heat transfer to opposite sides of

bulkheads?

5. Fire extinguishing equipment immediately available and

accessible at hot work sites?

6. Flammable and combustible materials (paints, solvents,

trash, paper, cardboard, petroleum products, etc.) protected or

removed from the hazardous proximity of hot work sparks, slag,

heat transfer, etc.?

7. Containers of flammable and combustible liquids covered when

not directly in use?

8. Portable fuel gas and oxygen (distribution) manifolds

labeled to identify gases and located in the open air (not in

enclosed spaces)?

9. Protective (screw on) caps placed on all gas manifold

outlets which are not in use?

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10. All gas hose connections secure?

11. All gas hoses arranged to prevent damage? (Pinching,

cutting, chafing, etc.)

12. Equipment and fixtures (desks, flooring, etc.) protected

from exposure to hot work sparks, slag, etc.?

13. Explosion proof lights in use where required?

14. Gas cylinder flow regulators tightly installed to prevent

leaking?

15. Materials used for screening, protective coverings,

shelters, etc., made of fire-retardant materials?

16. No smoking rules adhered to where applicable?

17. Service lines routed through fire zone boundaries have

quick disconnects and connections marked, within ten feet of

boundary and compressed gas hoses prohibited?

18. Access to firefighting equipment, including temporary water

distribution manifolds, is clear and unobstructed?

Walking and Working Surfaces

1. Hoses, cables, ducting, etc., are elevated, covered, or

otherwise safely arranged to prevent obstructions and trip

hazards?

2. Substitute walkway planks are in place during absence of

regular deck plates or grating?

3. Work areas and walkways are free from slip hazards? (oil,

grease, etc.)

4. Primary access way (including ladders, steps) is clear, not

obstructed by ship repair materials?

5. Hatch covers and lids, when open, are secured to prevent

accidental closing?

6. Ladders, steps and gangways are in safe condition?

7. Adequate fall prevention guard railing is in place at all

hazardous openings?

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8. All overhead equipment, materials, and tools are secured to

prevent slipping/falling on to personnel below? Are they tied to

ship’s structure and not to piping, wiring, equipment, etc?

9. Personnel are working from approved elevated work platforms?

(Does not include chairs, cans, loose bricks, or other unstable

objects)

10. Scaffolding is in safe condition?

a. All components secure?

b. Platform planking complete (guardrail to guardrail) to

prevent hazardous openings/gaps?

c. Platform planking in good condition, free from damage,

splits, etc.?

d. Platform planks project beyond support ends by at least

6 inches, but not more than 12 inches?

e. Top and mid (horizontal) guardrails are in place at all

work platform levels? (top guardrail = 42 to 45 inches from work

platform) (mid guardrail + halfway) (Note: diagonal bracing

alone does not satisfy guardrail requirements.)

f. Four inch toe boards in place around (work platform)

perimeters, if necessary, to prevent tools and other

construction equipment from falling onto personnel below?

g. Is there a green safety tag affixed to indicate that

scaffolding is safe for use?

Material Handling

1. Material handling (wood) pallets are in good condition, free

from loose, broken, missing parts, etc?

2. Materials are adequately secured to pallets during hoisting?

3. Personnel warned of overhead hazard during hoisting

operations?

4. Upper hooks of material rigging chain falls and other

pull/lift devices secured (“moused”) to prevent them from coming

free from their attachment points?

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5. Cranes adequately guarded to keep personnel from within the

swing radius of crane body?

6. Forklift trucks being operated safely?

a. Driven at a safe, reduced speed?

b. No personnel on or under loads/forks?

c. Loads and forks kept at a low level position when

possible?

d. Motor turned off when unattended?

e. No unauthorized passengers on any portion of forklift?

Electrical

1. Frames of all arc welding and cutting machines are

adequately and securely grounded?

a. All electrical equipment, tools, and other such

components are safely positioned away from water, etc.?

b. All current-carrying cables are in safe condition? (no

exposed wiring, insulation free from damage, grounding pins

unaltered)

c. All current-carrying cables are safely arranged to

prevent damage? (pinching, cutting, chafing, etc.)

d. Electric hand tools (drills, saws, etc.) are grounded to

prevent shock?

e. Required safe practices are being observed prior to work

on electrical circuits/systems? (Reference (a), reference (f)

section 009-24, and reference (g)).

f. Temporary light stringers safely arranged? (elevated

off decks and tied at intervals, not suspended by cords alone,

etc.)

CNRMC M-4700.1

22 Feb 13

I-7-B-6

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CNRMC M-4700.1

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I-8-1

Chapter 8

Utilization of Reservations

Ref: (a) CNRMCINST 7570.1, Process for Utilizing Historical

Reservation Requirements in Ship Repair Contracts

Appendix A: Guidelines for Utilizing Historical Reservation

Requirements in Ship Repair Contracts

1. Introduction. Known work which cannot be adequately

assessed in advance due to operational restrictions or other

limitations is routinely required to be included in repair

contracts by Maintenance Teams. In order to provide the

government with a tool for the rapid accomplishment of

previously ‘work not assessed in advance’, time and material

reservations are utilized. The following sections define the

policy and procedures for the administration and reconciliation

of time and material reservations identified within work item

specifications. Reference (a) also provides the guidelines for

utilizing historical reservation requirements in ship repair

contracts.

2. Guidelines - Historical Reservation Requirements

a. Time and material reservations may be used if there is a

strong expectation that repairs will be accomplished based on

past history and if either condition below exists:

(1) For work that is not readily accessible for

inspection or is hidden by current conditions:

(a) Diesel Engines

(b) Boilers

(c) Tanks and voids

(d) Dry-docking items

(e) Lagging and Insulation

(f) Hazardous waste disposal

(g) AIT Support Services

(h) Oxygen-Nitrogen (O2N2) Plants

CNRMC M-4700.1

22 Feb 13

I-8-2

(i) Messing and Berthing Barges

(2) For specific work requirements associated with items

that receive routine inspections by government inspectors during

an availability period.

(a) Aviation Certificate (AVCERT) discrepancies

(b) Dock Trials/Sea Trials

(c) Lite-Off Assessment (LOA/LOE) discrepancies

b. The following are Lite-Off Assessment (LOA) examples of

information that shall be listed in paragraph 3 (Requirements)

of the Work Item when using time and material reservations:

(1) Pumping and disposal of fluids

(2) Access and egress repairs (balanced doors, escape

trunks, safety nets, etc)

(3) Piping system repairs

(4) Lagging replacement

(5) Electrical troubleshooting and repairs

(6) Equipment troubleshooting and repairs

(7) Gage calibration

(8) Intake/Uptake repairs

(9) Hull and attached structures

(10) Chemical cleaning of coolers/condensers/tube

bundles

(11) Vent system repairs

c. Historical Documentation

CNRMC M-4700.1

22 Feb 13

I-8-3

(1) The Magnetic Particle Test (MT) will provide the

Contracts Department the usage from the last three similar

availabilities to verify the historical requirement.

(2) MT’s shall provide historical class requirements for

similar work allowing for minor variation based on the ship’s

specific condition.

(3) A format similar to the following shall be utilized

to provide historical usage to Contracts Department:

3. Administration of Time and Material Reservations

a. The time and material reservations within the

specifications are expended through the use of a chit system.

This allows the government to expeditiously define the scope of

effort and to reach agreement with the contractor on the number

of man-hours and value of material required to accomplish work

in situations when such action is essential to support readiness

for critical availability evolutions.

b. Parts replacement allowance specifications, also known

as credit/debit specifications, establish a defined monetary

pool allowance for material only. These are frequently used in

a work item where the contractor is tasked to identify parts

needing replacement and then to replace those parts in order to

complete the work requirements. Since there may be uncertainty

CNRMC M-4700.1

22 Feb 13

I-8-4

as to the extent of parts replacement, a ceiling-funding amount

is identified in the specifications with the provision that the

funding allowance will be adjusted based on the value of the

cost of the parts replaced.

c. The cumulative total value of all chit type hours and

material shall not exceed 10% of the government estimate for the

availability contract without prior approval of Codes 300/400.

d. Work statements shall be defined as much as practical to

include location and equipment to allow the contractor to

anticipate trade types.

e. Except for Boiler and LOA work items, reservations shall

not be included in growth work specifications.

f. Reservations shall be deleted via the RCC process if not

used within the scope of the original work specification.

g. Responsibilities. It is the Maintenance Team’s

responsibility to authorize and monitor the contractor’s time

and material expenditures relating to a time and material pool

chit system(s) and parts replacement allowance credit/debit

specifications.

(1) The PM has the overall responsibility for the

authorization and management of work accomplished using

utilization reservation specifications.

(a) Time and Material Reservation System

1. The SBS shall prepare a sequentially

numbered chit to the applicable specification describing the

required work or support to be performed. Each chit shall

include the following information: ship, contract/job order

number, serialized number, date chit issued, and description of

work required in 4E format. Each chit shall be identified by a

unique code composed of one of the following listed alphabetic

codes followed by a three digit sequential number, i.e.: LO-078,

CS-079 and BM-080.

a

. CS = Correction of Combat System testing

discrepancies.

b

. LO = Pre-LOA/Pre-LOE or LOA/LOE

assistance and minor repairs in support of pre- or post repair

test/sea trials.

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22 Feb 13

I-8-5

c. SS = Support Services for AIT/government

agencies performing shipboard work.

d

. BM = Minor repairs to correct

deficiencies to support and maintain personnel barges.

e

. BR = Boiler repairs resulting from

inspections.

f. DR = Diesel repairs resulting from

inspections.

g. FM = FMS project and reactivation

support.

h. IS = General Industrial support.

2. Maintain a complete log for each

specification containing time and material reservation or parts

replacement allowances. The chit number shall be recorded in

the log.

3. Ensure the estimated value of the time and

material reservation is less than $25,000. Requirements shall

not be issued via multiple chits in order to stay within

limitations of this instruction.

4. Scope requested work effort with an

empowered contractor representative and reach agreement on man-

hours and material dollars.

a. For Firm Fixed Price (FFP) contracts,

only actual production labor hours expended will be considered

toward the contractor’s obligation to provide the defined

reservation labor hour effort. While supervision, quality

assurance, and other nonproductive labor should be included in

the pricing for reservations in the original bid, they shall not

count toward satisfying the contractor’s obligation to provide

reserve labor hours. The production labor hour reservation

shall not include any allowance for technical representatives or

any government-directed source unless specifically addressed in

the individual work item. For Cost Type contracts, only direct

charge personnel required to accomplish the work shall apply.

b. Material dollars shall be based on

actual cost to the contractor of acquiring materials provided.

Material dollars may include freight or duties that would be

CNRMC M-4700.1

22 Feb 13

I-8-6

reflected on the invoice for the material. The contractor shall

not be allowed to add material handling charges, overhead

(including G&A), or profit into the actual cost of materials

expended toward the reservation. If no time and material

agreement can be achieved, reject the tasking. The SBS does not

have the authority to exceed the authority labor hour and

material reservation.

5. The SBS and authorized contractor

representative shall sign the chit.

6. Forward the log and a copy of each chit

issued to the ACO/Contract Specialist within ten days after

availability/contract completion.

(b) Parts Replacement Allowance Credit/Debit

Specifications.

1. Prepare a consolidated list of credit/debit

specifications by work item, identifying paragraph, and value of

allowance. Provide a copy to ACO.

2. If a CFR requests an increase in the parts

replacement allowance set forth in the work item specification,

ensure adequate funding is available prior to authorizing an

increase.

3. Reserve a Request for Contract Change (RCC)

number to be used in answering contractor’s CFR requesting

reconciliation. Annotate CFR: “RCC_____ applies when settled.”

If an increase to the parts replacement amount is authorized,

annotate a “not to exceed” limitation on the CFR along with the

applicable RCC number.

4

. Forward a copy of all documentation of parts

replacement credit/debit specification work to the ACO within

ten days after availability/contract completion.

h. Exceptions. Work Items to accomplish a defined quantity

of a specific task (i.e., replace 100 square feet of hull

plating, etc.) are not Reservation taskings. The contractor

should have obtained all the material to complete the stated

requirements and only needs direction from the SBS as to

location, normally via a condition found report.

CNRMC M-4700.1

22 Feb 13

I-8-A-1

Appendix A

Guidelines for Utilizing Historical Reservation Requirements in

Ship Repair Contracts

1. Known work which cannot be adequately assessed in advance

due to operational restrictions or other limitations is

routinely required to be included in repair contracts by

Maintenance Teams. The goal is to specifically define and plan

as much of the work as possible based on current and historical

information. The use of generic work statements with time and

material requirements must be developed using historical

evidence and by specifying the type of work that is expected to

be accomplished.

2. The following guidelines are provided for the use of

specifications which include time and material reservations.

a. Time and material reservations may be used if there is a

strong expectation that repairs will be accomplished based on

past history and if either condition below exists:

(1) For work that is not readily accessible for

inspection or is hidden by current conditions.

(a) Diesel Engines

(b) Boilers

(c) Tanks and voids

(d) Dry-docking Items

(e) Lagging and insulation

(f) Hazardous Waste Disposal

(g) AIT Support Services

(h) O2N2 Plants

(i) Messing and Berthing Barges

b. For specific work requirements associated with items

that receive routine inspections by government inspectors during

an availability period.

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22 Feb 13

I-8-A-2

(1) Aviation Certification (Avcert) discrepancies

(2) Dock trials/Sea Trials

(3) Lite-Off Assessment/Lite-Off Engineering (LOA/LOE)

discrepancies. The following are LOA/LOE examples of

information that shall be listed in paragraph 3 (Requirements)

of the work item when using time and material reservations:

(a) Pumping and disposal of fluids.

(b) Access and Egress repairs (Balanced Doors,

escape trunks, safety nets, etc.).

(c) Piping System repairs.

(d) Lagging replacement.

(e) Electrical troubleshooting and repairs.

(f) Equipment troubleshooting and repairs.

(g) Gage Calibration.

(h) Intake/Uptake repairs.

(i) Hull and attached structures.

(j) Chemical cleaning of coolers/condensers/tube

bundles.

(k) Vent system repairs.

3. Historical Documentation

a. The MT will provide the Contracts Department the usage

from the last three similar availabilities to verify the

historical requirement.

b. MT’s shall provide historical class requirements for

similar work allowing for minor variation based on the ship’s

specific condition. (See paragraph (3) below.)

4. The following process notes are germane:

a. Class averages will be generated for all reservations

based on return costs and lessons learned/Maintenance

Modernization Performance Review (MMPR).

CNRMC M-4700.1

22 Feb 13

I-8-A-3

b. Work statements shall be defined as much as practical to

include location and equipment to allow the contractor to

anticipate trade types.

(1) Except for Boiler and LOA work items, reservations

shall not be included in growth work specifications.

(2) Reservations shall be deleted via the RCC process if

not used within the scope of the original work specification.

(3) It is the Maintenance Team’s responsibility to

justify, manage and account for all reservations.

5. A format similar to the following shall be utilized to

provide historical usage to the Contracts Department:

CNRMC M-4700.1

22 Feb 13

I-8-A-4

Ship

USS

Neversail

(FFX

100) LOA Assist Avail Comp 3/11/2008

WORK ITEM /

MOD NO. CHIT NO.

PARA.

NO. TITLE

HOURS

USED

MATL$

USED

REMAINING

HOURS

REMAINING

MATL $

3,920 15,000

980-90-002 1

PROVIDE

INSULALATION/LA

GGING

(5,420

) 9,580

980-90-002 2 RIG FM VALVES (72) (50) 3,848 9,530

980-90-002 3

RIG COMPRESSORS

/ ELBOWS (144) (50) 3,704 9,480

980-90-002 4

PUMP #2 WASTE

DRAIN TANK (38) 3,666 9,480

980-90-002 5

STRAIN FREE #3

FP INLET PIPING (104) (150) 3,562 9,330

980-90-002 6

PROVIDE SAFETY

NET FOR #2 AMR

ESCAPE TRUNK

(1,593

) 3,562 7,737

980-90-002 7

ELEC TO SUPPORT

A/C FLUSH (8) (25) 3,554 7,712

980-90-002 8

RIG IN #3 AMR

BALANCE DOOR (24) (50) 3,530 7,662

980-90-002 PER PM

RCC 154G

INCREASE

MATERIAL 30000

3

0,000 3,530 37,662

980-90-002 9

PROVIDE AND

INSTALL GTM

SOFT PATCH

GASKETS

(6,733

) 3,530 30,929

980-90-002 10

REPAIR #2 WASTE

HEAT COOLER (16)

(18,33

9) 3,514 12,590

980-90-002 11

HAND SCRAPE &

WIRE BRUSH 3 &

4 SUCT. ELBOWS

(1,928

) 3,514 10,662

980-90-002 12

REPLACE SHELL &

PIPING

INSULATION IN

#3 SSDG ENCL (336)

(2,500

) 3,178 8,162

980-90-002 13

#2 PUMP ROOM

JP-5 PPG MOD

(5,466

) 3,178 2,696

980-90-002 14

CALIBRATE POT

WATER TLIS (28) (50) 3,150 2,646

980-90-002 15

INSTALL HANGER

SUPPORT ON #4

SW (16) (50) 3,134 2,596

980-90-002 16

TROUBLESHOOT

GROUNDS IN #2

LPAC (14) 3,120 2,596

980-90-002 17

WELD IN CROSS

BRACE & TOUCH

UP AREA ON

A/C'S

(2,593

) 3,120 3

RCC 157 DELETE BALANCE 0 0

CNRMC M-4700.1

22 Feb 13



I-8-1-1

Appendix 1

LIST OF ACRONYMS

Acronym

Description

ABR Agreement for Boat Repair

ACO Administrative Contracting Officer

AIT Alteration Installation Team

APL Allowance Parts List

APM Advance Planning Manager

AWR Automated Work Request

C5I Command, Control, Communication, Computers,

Combat Systems, Intelligence

CA Corrective Action

CAR Corrective Action Report

CAQAP Contract Administration Quality Assurance Program

CASREP Casualty Report

CDO Command Duty Officer

CDRL Contract Data Requirements List

CEH Cost Estimating Handbook

CFE Contractor Furnished Equipment

CFM Contractor Furnished Material

CFR Condition Found Report

CFR Codified Federal Regulations

CHENG Chief Engineer

CLASSRON Class Squadron

CMAV Continuous Maintenance Availability

CNO Chief of Naval Operations

CNRMC Commander Navy Regional Maintenance Center

CONUS Continental United States

COP Configuration Overhaul Planning

COPA Contracting Officer Price Analysis

CPAF Cost Plus Award Fee

CPFF Cost Plus Fixed Fee

CPIF Cost Plus Incentive Fee

CPARS Contractor Performance Assessment Reporting System

CS Contract Specialist

CSWT Class Standard Work Template

CTL Class Team Leader

CWP Controlled Work Package

DCAA Defense Contract Audit Agency

DFS Departure From Specification

DSR Design Service Request

CNRMC M-4700.1

22 Feb 13

I-8-1-2

Acronym Description

DSRA Drydock Selected Restricted Availability

EAC Estimate at Completion

EDSRA Extended Drydock Selected Restricted Availability

EMT Execution Maintenance Team

EPCP Expanded Process Control Procedure

ESR Engineering Service Request

ESWBS Expanded Ship Work Breakdown Structure

ETD Estimated Time of Delivery

FDG Fleet Desk Guide

FFP Firm Fixed Price

FMO Fleet Maintenance Officer

FMR Fleet Maintenance Surface (formerly IMF, SIMA)

G&A General & Administrative

GFE Government Furnished Equipment

GFI Government Furnished Information

GFM Government Furnished Material

GSO General Specifications for Overhaul

HAB Habitability

HAZMAT Hazardous Material

HM&E Hull, Mechanical & Electrical

HW Hazardous Waste

IAW Per

ICMP Integrated Class Maintenance Plan

IDIQ Indefinite Delivery/Indefinite Quantity

IGE Independent Government Estimate

ILS Integrated Logistic Support

INSURV Board of Inspection and Survey

ISEA In-Service Engineering Agent

JFMM Joint Fleet Maintenance Manual

JSN Job Sequence Number

KTR Contractor

LARS Liaison Action Requests

LLTM Long Lead Time Material

LMA Lead Maintenance Activity

LOA Light Off Assessment

LOE Light Off Engineering

LOT Letter of Transmittal

MARMC Mid-Atlantic Regional Maintenance Center

MFOM Maintenance Figure of Merit

MMBP Maintenance & Modernization Business Plan

MMPR Maintenance Modernization Performance Review

MSC Master Spec Catalog (found in NMD)

CNRMC M-4700.1

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I-8-1-3

Acronym Description

MSMO Multi-Ship/Multi-Option

MSRA Master Ship Repair Agreement

MT Maintenance Team

NAVSEA Naval Sea Systems Command

NEMAIS Navy Enterprise Maintenance Automated Information

System

NMD Navy Maintenance Database

NSA Naval Supervising Activity (or Authority)

NSI NAVSEA Standard Items

NSSA Norfolk Ship Support Activity

NSTM Naval Ships’ Technical Manual

NTE Not-to-Exceed

NWRMC Northwest Regional Maintenance Center

OEM Original Equipment Manufacturer

OQE Objective Quality Evidence

OSHA Occupational, Safety and Health Administration

PB4M Planning Board For Maintenance

PCD Projected Completion Date

PCO Procuring Contracting Officer

PCP Process Control Procedure

PE Port Engineer

PE Procedure Evaluation

PE Product Evaluation

PEO Program Executive Office

PM Project Manager

PR Product Review

PSA Post Shakedown Availability

PTD Provisional Technical Documentation

PVI Product Verification Inspection

QA Quality Assurance

QAS Quality Assurance Specialist

QDE Quality Data Evaluation

RCC Request for Contract Change

REA Request for Equitable Adjustment

REF Reference

RLARS Reverse Liaison Action Requests

RMC Regional Maintenance Center

RMMCO Regional Maintenance Modernization & Coordination

Office

RTS Readiness To Start

SA Supplemental Agreement

SBS Shipbuilding Specialist

CNRMC M-4700.1

22 Feb 13

I-8-1-4

Acronym Description

SCD Ships Change Document

SDR Ship Departure Reports

SERMC Southeast Regional Maintenance Center

SF Ships Force

SHIPALT Ship Alteration

SHIPMAIN Ship Maintenance

SMMO Ship’s Material Maintenance Officer

SLEP Service Life Extension Program

SRA Selected Restricted Availability

SSRAC Standard Specifications for Ship Repair & Alteration

Committee

SUPSHIP Navy Supervisor of Shipbuilding, Conversion & Repair

SWBS Ship Work Breakdown Structure

SWM

SWRMC Southwest Regional Maintenance Center

SWT Standard Work Template

TA Technical Authority

TAR Technical Advisory Review/Report

TDA Type Desk Assistant

TDO Type Desk Officer

TOC Total Ownership Costs

TSTR Total Ship Testing Requirements

TYCOM Type Commander

WAF Work Authorization Form

WFO Waterfront Operations

WPER Work Package Execution Review

WPIC Work Package Integration Conference

CNRMC M-4700.1

22 Feb 13



SHIPBUILDING

SPECIALIST (SBS)

DESK GUIDE

VOLUME II

CNRMC M-4700.1

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(This page intentionally left blank)

CNRMC M-4700.1

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II-i

TABLE OF CONTENTS

VOLUME II

#

PROCEDURE PAGE

1 Review Automated Work Request (AWR). . . . . . . . II-1-1

2 Perform Ship Check . . . . . . . . . . . . . . . . II-2-1

3 Develop/Review Work Items . . . . . . . . . . . . II-3-1

4 Review Work Items 4E Specifications/Standard Items. II-4-1

5 Develop Independent Government Estimate (IGE) . . . II-5-1

6 Review Contract Documents . . . . . . . . . . . . . II-6-1

7 Review and Maintain Significant Event Log . . . . . II-7-1

8 Develop and Submit Daily Reports to Project . . . . II-8-1

Manager (One-Liner)

9 Review and Process Condition Found Reports (CFRs) . II-9-1

10 Review Weekly Production Schedule . . . . . . . . . II-10-1

11 Monitor Test and Inspection Plan . . . . . . . . . II-11-1

12 Review Integrated Test Plan . . . . . . . . . . . . II-12-1

13 Enter and Review and Process ESRs, DSRs, LARS, . . II-13-1

and DFSs

14 Develop Request Contract Change (RCCs). . . . . . . II-14-1

15 Perform Check Points and Enter Data . . . . . . . . II-15-1

16 Review and Enter Work Item Progress . . . . . . . . II-16-1

CNRMC M-4700.1

22 Feb 13

II-ii

TABLE OF CONTENTS

VOLUME II

#

PROCEDURE PAGE

17 Enter Product Verification Inspection . . . . . . . II-17-1

18 Write, Maintain, and Review Corrective Action . . . II-18-1

Reports (CARs)

19 Certify Work Items . . . . . . . . . . . . . . . . II-19-1

20 Availability Close Out . . . . . . . . . . . . . . II-20-1

21 Provide Lessons Learned Inputs . . . . . . . . . . II-21-1

CNRMC M-4700.1

22 Feb 13

II-1-1

SBS PROCEDURE 1

Review Automated Work Request (AWR)

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide (FDG 210), AWR Validation

1. The purpose of this procedure is to guide the SBS in review

of AWRs to ensure the necessary information is clear, concise

and accurate per references (a) and (b).

2. The following steps assume that the user is located at the

Brokered JCN’s Awaiting Assignment Screen (AQ1) in the NMD

(Planning).

a. Print AWR. Printing of the AWR allows the SBS to have

document on hand for reference during the future steps.

(1) Right click on WC-JCN. A dropdown menu will appear.

(2) Click PRINT.

(3) Click AWR. The AWR will appear.

(4) Click the PRINT icon on the AWR.

b. Review AWR for Accuracy.

(1) Verify Allowance Parts List (APL) is applicable to

the assigned ship (Block 4).

(2) Verify serial number is filled in and matches the

component based on APL (Block 13).

(3) Verify APL is the parent APL and not for a

subcomponent, if units are connected (Block 4).

(4) Verify location of equipment (Block 16).

(5) Verify Ships Work Authorization Boundary/Ships Work

List Item Number (SWAB/SWLIN) is correct.

(6) Verify Remarks/Description accurately describe the

initial condition and request an action that is attainable

(Block 35).

CNRMC M-4700.1

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II-1-2

(7) Verify CSMP Summary is accurate, based on block 35

remarks (Block 37).

(8) Review any documents listed, e.g. drawings,

technical manuals, etc., (Block 47/48).

(9) Return to NMD (Planning).

CNRMC M-4700.1

22 Feb 13

II-2-1

SBS PROCEDURE 2

Perform Ship Check

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 411, Perform Shipcheck

(c) FDG Website Resources

1. The purpose of this procedure is to guide the SBS in

performing quality Ship Checks per references (a) and (b) in

order to support efficient and effective planning and estimating

of the associated work item(s).

a. Accomplish research to locate applicable Drawings, Technical

Manuals, engineering notes, etc.

b. Use “As built” drawings first and where available, then

use Class drawings.

(1) Verify Drawings are applicable to the ship being

worked.

(2) Use latest updated Technical Manuals.

(3) Verify Technical manual is applicable by Allowance Parts

List (APL)/Authorized Equipment Listing (AEL), location, and serial

number.

(4) Verify any engineering notes are applicable to the actual

class and hull being worked.

2. Locate first or second contact on-board ship and verify work

is still required.

a. If work is still needed, proceed to sub paragraph (d)

provided below.

b. If work has already been accomplished or is otherwise no

longer required, have Ship’s Representative sign AWR stating work is

complete or no longer required.

c. Turn AWR over to Project Manager for disposition.

CNRMC M-4700.1

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II-2-2

(1) The intent of the Ship Check form is to gather as

much information as possible, in order to aid the planner in

developing a complete and accurate repair process and work item.

(2) Ship Checks will often require more than one Ship

Check form to be filled out to accomplish this requirement.

Ensure you take plenty of blank Ship Check forms, which are

available in references (b) and (c).

(3) If this repair or a similar repair has been

accomplished before, print out copies of the repair process

and/or the work item associated with it. Take these with you

when you Ship Check.

3. Verify location of work by space and physical location

within the space.

4. Verify component serial number(s) where applicable.

5. Verify and document system, fluid, and system pressures on

the applicable Ship Check form.

6. Verify location of structures and sections or areas to be

repaired, if any, on the applicable Ship Check form.

7. Verify electrical cables, controllers, and breakers or fuse

panels which may need repairs on the applicable Ship Check form.

8. Verify valve types and sizes on the applicable Ship Check

form.

9. Verify piping size during Ship Check: validate material type

from applicable drawing.

10. Determine if there are any temporary removals needed in

order to accomplish the required work.

a. Determine if the system(s) affected by the temporary

removal(s) is/are critical systems. If the system is critical,

document information on additional Ship Check forms.

b. If the system(s) are not critical, document steps needed to

remove interference, reinstall, inspect and test to recertify system.

While non-critical systems are not written into the work item, this

information is needed for the steps in the repair process so that an

accurate estimate can be made for all of the work being accomplished.

CNRMC M-4700.1

22 Feb 13

II-2-3

11. Determine if there are any environmental issues which need

to be considered and covered during the repair.

a. Include estimates on how much and what type of hazardous

material may be used or need to be disposed.

b. Include estimates on fluids to be removed and disposed

of from the system.

12. Look for any safety issues unique to the area, or involving

the work needing to be accomplished.

13. Determine if scaffolding is needed and document.

14. For doors, document all adjacent bulkhead discrepancies

which might affect the repair, as well as the information needed

to fill out the Ship Check form.

15. Document all lagging by location, including frame and deck

numbers, and measure both the area to be repaired or replaced,

and the actual location on piping, components and bulkheads.

16. Document conditions with digital photographs where

appropriate for upload to Navy Maintenance Database (NMD).

17. If this work has been accomplished previously and a repair

process is available, ensure a copy is on hand to mark up. This

will ensure all major questions are answered during the Ship

Check and allow the planner and reviewer to provide a more

accurate work item.

18. If no repair process is available, fill out basic steps

while on scene, using a basic repair process template and

instructions, and ensure all special or unique steps are

documented prior to completing the Ship Check. This will help

you to minimize return visits to get additional information.

19. Upon return to the office, fill out shipcheck form in Word

or similar application and file along with other documents,

e.g., digital photographs, on appropriate hard drive as

specified in local procedures.

20. Upload completed shipcheck form and any other pertinent

files, e.g., digital photographs, in NMD. See reference (b)

section 11.

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SBS PROCEDURE 3

Review/Develop Work Items (Firm-Fixed Price (FFP))

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 460, Work Item Review

1. The purpose of this procedure is to review and develop Work

Items per references (a) and (b).

2. Pre-Requisite Steps. When assigned, the SBS shall write,

using NMD, clear, precise and legible specifications and Request

for Contract Changes (RCCs) per reference (a), Volume VII,

Chapter 4 appendix 4-E along with the cost estimate and upon

completion route to the Project Manager.

3. Accomplish initial fact finding (Ship Check) using SBS

Procedure 2. Remember, without the Ship Check, no form of

planning or estimating can be made accurate.

4. Verify correct drawings and technical manuals are available.

5. Verify list of all parts and materials needed to accomplish

the task.

6. Verify all parts and materials are per the technical

requirements.

7. Determine all unusual requirements are addressed.

* INITIAL PLANNING PHASE STEPS *

8. Write in ALL of the steps required to complete a given

repair or modernization task. Use the Standard Work Item

Template as a guide.

9. Determine if the step is covered under a NAVSEA or Local

Standard Item and write in the number of the Standard Item.

10. Determine the category of the Standard Item (Cat I or Cat

II) and indicate in the Category column.

11. List the Phraseology locator number for calling out Cat II

standard Items in the Phrase Locator column.

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12. List phrase locator number for all other steps needed to

complete the assigned repair. Use when creating a new work item

in NMD Planning or modifying in NMD Execution. Always use the

phraseology section of Appendix 4-E when creating a new work

item in NMD Planning or when modifying an existing work item in

NMD Execution.

13. For Steps not found to have an appropriate phrase in 4-E,

use the verb noun directive phrase structure from appendix 4-E

instructions. Use existing phrases as examples.

14. List all called Cat II standard Items under the Cat I or

Cat II standard Item they are called from.

15. List all steps from each standard Item requiring a check

point and list the check point in the Check Point Column.

Include all called Cat II Standard Items. Not accomplishing

this task makes it very difficult if not impossible to

accurately estimate a work item.

16. List all check points needed that are not included in the

standard Items but that are needed to assure all requirements

are met for re-certification of the system repaired.

17. List all required reports and incorporate into the Check

Point Column.

18. Make remarks for each step indicating why it is there or

what it is to be used for. This column is normally to be used

by the originator. Remarks should guide the user to ask and

answer the appropriate questions during ship checks and when

developing the actual Work Item from this process template.

19. Develop Ship Check and Planner Questions based on step

requirements. These are used in conjunction with the Ship Check

form to provide additional information to the reviewer or the

SBS for use in Execution of the actual work. These questions

can also be sent to a ship under way to obtain answers via navy

message when the ship is not available to the planner,

minimizing errors in planned work items where the planner is not

able to visit the ship for an actual check.

20. Assign trade or trades responsible for completing the

requirements of each step or Standard Item listed.

21. Ensure Work Item(s) are written well enough to support IGE

development (SBS Procedure 5 of this desk guide).

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* THE FOLLOWING STEPS APPLY AFTER FILLING IN AND COMPLETING

THE REPAIR PROCESS TEMPLATE. IT IS ASSUMED THAT THE USER HAS

LOGGED IN UNDER THE PLANNER ROLE AND IS LOCATED IN PQ

(PLANNER QUEUE) *

22. Pull up and modify MSC template in NMD Planning to meet the

repair process requirements.

a. Right click on JCN in the WORK SPECS/ESTIMATES window.

b. Click CREATE WORK ITEM on dropdown menu. The 2-Kilo

Rating Screen appears.

c. Click the VIEW 2K button to display the AWR.

d. Review AWR to determine quality as adequate or

inadequate.

e. Click the CLOSE icon on the AWR to return to the 2-Kilo

Rating Screen.

f. Click the ADEQUATE or INADEQUATE radio button as

appropriate based on review of AWR.

g. If inadequate, identify discrepancies by moving

attribute(s) from left field box to the right field box using

the arrow keys.

h. Click OK” when complete. Completion and use of the

repair process is absolutely needed and necessary for those not

formally trained as planners/estimators and who have no

experience in this field. It also aids the experienced planner

in delivering a consistently superior product. Keeping in mind

that the end goal is to provide the repair worker with a solid,

error free work specification or Work Item, this method provides

excellent support and training to both the Planner/Estimator and

reviewers of work items which take advantage of this process.

It also supports cross training of new SBSs and planners along

with supporting Engineering Technicians assigned to the work

item review process.

23. NMD will show Class Standard Work Template, Local Work

Template and Standard Work Template.

a. Create work item using one of these three templates.

(1) Click on desired template then click OK.

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(2) The Assign Work Item Number dialogue box appears

with an auto populated work item number.

(3) Click OK.

24. The work item template appears. Double click the paragraph

number to be revised. The paragraph selected will appear in the

text editor at the top of the screen. Make necessary changes

per reference (a) Volume VII, Chapter 4, Appendix 4-E. When

finished, click QUIT.

25. Work item is now created.

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SBS PROCEDURE 4

Review Work Items/4E Specifications/Standard Items (MSMO/FFP)

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 460, Work Item Review

(c) Fleet Desk Guide FDG 733, Request for Contract Change

1. The purpose of this procedure is to guide the SBS through

the review of work items for quality and accuracy per references

(a) through (c). The SBS shall accomplish Work Item Reviews,

also referred to as Bid Spec Reviews, which include work items

associated with Requests for Contract Changes (RCC). The review

ensures work items (specifications) are clear, precise and

legible per reference (a), Volume VII, Chapter 4, Appendix 4-E.

Regardless of whether the specification work items were written

by a contractor or the Government, a Government specification

review is required.

2. The following steps assume that the SBS has logged in to NMD

to review the work item, that he has selected availability and

that he has clicked the availability DETAILS button. Queues

appear along the bottom edge of the screen and several tabs

appear across the top, one of which is the WORK SPEC REVIEW tab.

The WORK SPEC REVIEW tab contains all the work items that have

been moved there for review by the Advance Planning Manager.

3. Click the WORK SPEC REVIEW tab to display work items ready

for review.

a. Select a work item and right click to display menu

options. Click MAINTAIN SPEC REVIEW. A split screen will

appear with the Work Item in the top window and a space to enter

comments in the bottom window. Review the work item to ensure

that it:

(1) Contains the requirements of the AWR. (To view the

AWR, right click the desired work item, and click LIST JCNS IN

WORK ITEM on the dropdown menu. A pop-up box will appear

listing the JCNs. Select the JCN and click PRINT 2-Kilo (2K)

to display it.)

(2) Contains the requirements of any RCC’s in-scope

growth work or new work approved by the Type Commander.

(3) Uses standard phraseology.

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(4) Includes all applicable references.

(5) Government-Furnished Material (GFM) is correctly

identified in paragraph 5 of the work item.

4. After completing the review, the SBS will enter

specification work item deficiencies in the comments window. To

add comments:

a. Click the WORK SPEC REVIEW STATUS dropdown arrow and

select the appropriate status.

b. Click ADD COMMENT.

c. Enter the paragraph number your comment applies to in

the PARAGRAPH field.

d. Enter your comment in the COMMENT BY… field. (Comments

for RCCs can be entered as remarks in NMD execution.)

e. Click SAVE. The SAVE CONFIRMATION dialogue box will

appear. Click YES if you are ready to save changes.

f. Click the REPLY button, enter reply by requirements in

the REPLY BY field. Click SAVE and then CLOSE.

g. To review a complete record of all work spec review

comments, return to the listing of work items in the WORK SPEC

REVIEW tab, select the desired Work Item, and right click it.

From the resultant dropdown menu click PRINT and then click WORK

SPEC REVIEW from the pop-up box. A listing of all spec review

comments will appear. The PM shall review the specification and

estimate. The PM will send or notify Code 200 of the need to

review the specification for technical accuracy. When

necessary, the PM will return the specification to the initiator

for correction/modification.

5. Upon completion of review, the SBS shall route the work item

to the PM in NMD. To route the work item:

a. Return to the screen listing work items.

b. Click the desired work item and right click to display

menu options.

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c. Click ROUTE. When the routing dialogue box appears

select the position and the individual to whom the work item is

to be routed, and then click OK.

6. SBS shall ensure that no copies of estimating sheets are

kept in official files. They shall also be treated as business

sensitive materials.

7. Disposition of Review Comments

a. When SBS is acting as a Planner, the SBS shall review

NMD for work spec comments posted by others during work item/bid

spec review.

b. In the Planner queues screen, click WORK SPEC REVIEW tab

at the top of the screen. Right Click on work item and select

MAINTAIN WORK SPEC REVIEW from the dropdown menu.

c. When the work spec opens, and comments are found in the

comments box, the SBS is required to respond to the comments.

Prior to responding, ensure you do the research needed to make

an informed decision! If the comment or question requires an

answer from the Technical or Contract Warrant Holder, make sure

you have the answer before providing your response.

8. To respond to a comment perform the following steps

a. Reply to comments by entering your comments in the

COMMENT BY.

b. After completing your response comments, click the WORK

SPEC REVIEW STATUS field dropdown arrow and select the

appropriate choice.

c. Click SAVE and then CLOSE.

9. If the work spec needs modification, the SBS is required to

contact PM.

10. The PM will review modifications and send a response back

to SBS.

11. The SBS will make required changes to the work spec and

then route back to PM for final approval.

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SBS PROCEDURE 5

Develop Independent Government Estimate (IGE)/(MSMO)

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) FDG 411, Perform Shipcheck

(c) FDG 420, Populate Template

(d) FDG 440, Develop Independent Government Estimate (IGE)

(e) FDG 460, Work Item Review

(f) SBS Desk Guide Procedure 2, Perform Ship Check

Sections: 1. Procedure to Prepare the Cost Estimate

2. Additional Estimate Criteria for Contract

Modifications

Appendix A: Standard Cost Estimate Form

Appendix B: Estimating Check-Off List

Appendix C: Category 1 Standard Item Hard-Core Labor

Consideration

1. The purpose of this procedure is to develop a quality Class

C - Independent Government Estimate (IGE) per reference (a) for

Work Items in the NMD under MSMO contracts. Independent

Government Estimates should be developed and saved in NMD. It

is important to emphasize that the IGE be independent, and the

contractor’s proposal not be used in the development of the

Government Estimate. The IGE is used to support the

government’s case in getting a fair and reasonable price for

performance of the work. To that end, thorough and accurate

documentation in the IGE is essential during Technical Analysis,

developing Technical Advisory Reports (TAR) and Business

Clearance Memoranda (BCM).

2. Prerequisites

. To ensure a quality IGE is developed, the

requirements of references (b) through (g) involving performance

of the ship check, populating the Work Item template and

reviewing the Work Item, must be/must have been completed. If

they have not, consult with the PM to complete them before

proceeding.

a. The PM should assign Work Items in NMD’s AQ3 tab/queue

to the SBS. Work Items in the AQ3 tab/queue have completed the

Work Spec (Item) Review process, which ensures the Work Item is

of good quality.

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b. For MSMO contracts, it is not advisable to develop an

IGE while the Work Item is in the NMD Planning tab/queue because

the contractor (not government) is the Planner and the Work

Item’s quality at this stage is unreliable depending on its

state of development at any given time. For this reason the IGE

assignment is to be accomplished after the government PM has

received the Work Item back in AQ3 tab/queue.

c. The exception to assigning the SBS to develop an IGE

from the AQ3 tab/queue is when the IGE is being developed as a

result of a contract modification. In this case the guidance

listed in Section 2 shall be applied while developing the IGE.

3. Responsibilities

. The government estimator is responsible

for preparation of the IGE. However, third party independent

contractors may be used by the government in a support role to

gather information, provide the data, and make recommendations

concerning the estimate; however, determination of the IGE must

be made by a government employee because this is an inherently

governmental function. The RMC estimator is responsible for

preparation of the following cost estimates for the work item:

a. Direct labor hours.

b. Direct labor overtime hours (if applicable).

c. Direct material cost, including subcontracts.

4. Information sources

. In preparing detailed cost estimates

for work activities, the estimator shall always use the best

information available. Where standards are available and

applicable, they shall be used. It is essential that all

applicable sources of information be examined. These sources

include the following:

a. Master Specification Catalog CSWT, SWT, and LWT.

b. Other estimators who have longer service or experience.

c. Engineered labor standards prepared by naval or private

contractors.

d. Material catalogs from industry vendors.

e. Contract files for similar work packages.

f. Personal records made from past jobs or negotiations.

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g. Other Government agencies that have performed similar

work.

h. Personal observations made during job execution.

i. "Rules of Thumb".

j. Historical data that are relevant and costs that have

been validated.

5. Action. Develop IGE using Section 1 (and Section 2, when

applicable).

a. Use Section 1 and Appendices A through C as tools to

gather information and data for all government estimates.

b. When completing the government estimate for a contract

modification, use the additional criteria outlined in Section 2

while completing Section 1. The completed IGE is used to

support the Technical Analyst (TA) in comparing government and

contractor estimates to determine fair and reasonable price. It

provides the TA with vital data and information in writing a

Technical Analysis Report (TAR) and then a Business Clearance

Memoranda (BCM). To write the TAR, the TA will look to the IGE

for support in answering questions such as:

a. What is the estimate?

b. What is the estimate based on?

(1) Quotes, cost estimating relationship, analogous

work, historical actual, etc...

c. How is the estimate derived?

(1) Mechanics of calculating the estimate (e.g.,

complexity factors for hours or application of rates).

(2) Why is it reasonable (or unreasonable)?

The IGE’s data and information should consist of

sufficient detail, accuracy and quality to support development

of a TAR and follow on BCM.

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SECTION 1. PREPARE THE COST ESTIMATE.

PROCEDURE STEPS SUPPORTING TOOL(S)/NOTES

5.1 Preparation. When the PM assigns a Work

Item from the NMD AQ3 tab/queue, review the

Work Item and gather related documents and

information.

5.1 Work Item sent by PM from NMD’s AQ3

tab/queue. Applicable Technical Manuals,

Drawings, Ship Check Documents, Appendix A

through C, etcetera. All related references

listed in paragraph (2) of individual work

items should be available from the MSMO

Contractor Technical Library.

5.2. Develop the IGE using the NMD Work Item

Government Estimate screens, gathered

documents and Appendix A through C.

5.2.1 Determine Work Item paragraph

activities to be estimated. Review the Work

Item’s detailed listing of all activities and

determine those that are to be estimated

separately. Annotate Work Item

Paragraph/Category Standard Items activities

to be estimated on the front of Appendix A.

Annotate activities separately for Sub

Contractors and Manufacturing

Representatives, when applicable, on the

5.2 This procedure and Appendices A through C

are tools to assist the estimator in

efficiently gathering and consolidating data

and information for entry into NMD.

NOTE: Annotate the source of data and

information throughout development of the IGE

to support your results. The documentation

is essential during Technical Analysis,

developing Technical Advisory Reports (TAR)

and Business Clearance Memoranda (BCM).

5.2.1 The level of detail the estimator lists

on Appendix A and in NMD should reflect that

level needed to support the estimating

requirement. Activities for Sub Contractors

and Manufacturing Representatives, when

applicable, must be calculated separately

(e.g., separate Paragraph line items for

each) on the reverse side of Appendix A. The

totals are then indicated in blocks on the

front of Appendix A for calculating Total

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reverse side of Appendix A.

5.2.1.1 Use the Estimating Check-off List,

Appendix B, to aid in determining the

activities to be considered in the estimate.

5.2.1.2 Examine each activity in the repair

sequence using Table 5-1 as an aid to

determine whether or not a further breakdown

is needed.

Table 5-1

TYPICAL REPAIR SEQUENCES

WORK

ACTIVITY

SEQUENCES

A B C D

1

REMOVE OPEN PREP AREA RIP OUT

2

DISASSEMBLE INSPECT MASK FOUNDATION

3

INSPECT REPAIR PAINT LAND EQUIP

4

REPAIR CLOSE CLEAN HOOK UP

5

TEST TEST TOUCH-UP COLD CHECK

6

REINSTALL CLOSE OUT HOT CHECK

7

TEST TEST

5.2.1.3 Quantify the Labor Estimate. Once

all of the activities to be estimated have

been identified, assign labor-hours for each

Trade and support Craft needed to accomplish

each activity. Use the Master Spec Catalog

CSWT, SWT and LWT, the Flat Rate Book and

Estimated Contractor costs.

5.2.1.1 Using the Appendix B check-off list

will prevent inadvertent omissions of

incidental support requirements for the

activities (e.g., assist trades, rigging,

staging, temporary lighting and ventilation).

5.2.1.2 Typical repair sequences are shown in

Table 5-1. In the estimating process, the

estimator describes in broad terms the

sequence of activities required to accomplish

the work being estimated. Sequence A, for

example, shows 7 broad sequences to

accomplish the work being estimated. Next,

each of these activities is further broken

down to the lowest level of detail necessary

to facilitate the estimating process. For

example, in Sequence B of Table 5-1, the

"inspect" activity may require a detailed

inspection of a specific set of internal

components. Each of the inspections may

require a unique set of activities and

measurement criteria. Thus, each component

inspection could be estimated as a separate

activity.

5.2.1.3 Labor standards in NMD include the

Master Spec Catalog CSWT, SWT and LWT, the

Flat Rate Book and Uniform Engineered Methods

and Standards, which can be accessed from the

main NMD portal screen or by right clicking

in the related screen area and selecting

their links. Appendix A is provided to

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Uniform Engineered Methods and Standards in

NMD and Appendix C as a guide. Use Appendix

A to transcribe data/information for later

entry into NMD.

5.2.1.4 Assign labor man-hours/man-days for

Sub Contractors and Manufacturing

Representatives, when applicable, in separate

Paragraph line items on the reverse side of

Appendix A in the “Sub Contractor Estimate”

section. In order to differentiate, identify

Manufacturing Representatives in the

“Service” column.

5.2.1.5 Total the Trade man hours/man days

for each activity in the MAN HR/DAY column on

the front of Appendix A.

5.2.1.6 Total labor man-hours/man-days for

Sub Contractors and Manufacturing

Representatives, when applicable, separately

on the reverse side of Appendix A.

5.2.1.7 Total all Trade man-hours/man-days

line items and enter the cost in the Sub

Total Block.

5.2.1.8 Enter the Labor “Rate” (per man-

transcribe data/information from these

standards for ease in entering IGE’s with

many activity items into NMD. Appendix C

(Category 1 Standard Item Hard-Core Labor

Considerations) is provided as a check-off

list to assist the estimator in properly

considering the impact of Category I Standard

Items.

5.2.1.4 All material costs and man-hour/man-

day costs for Sub Contractors and

Manufacturing Representatives, when

applicable; are calculated separately for

proper entry of their total costs on the

front of Appendix A.

5.2.1.5 The Work Item labor estimate is the

sum of all labor-hours, which are normally

expressed in man-days rather than man-hours

(one man-day being equal to eight man-

h

ours).

Labor estimates for contract modifications

are normally expressed in man-hours vice man-

days.

NOTE: When entering labor or material data

into NMD the calculation will automatically

populate the appropriate total

field/block(s).

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hour/man-day as applicable from NMD or

provided by the ACO) in the block to the

right of “Labor Total.” Multiply the Labor

Rate by the Sub Total of all Trade labor

activities and enter the results in the block

to the right of the Labor Rate.

5.2.1.9 Enter the Labor “Rate” (per hour/day

as applicable) for Sub Contractors and

Manufacturing Representatives, when

applicable, separately on the reverse side of

Appendix A.

5.2.2 Estimate the Cost of Materials to

support each required work activity.

5.2.2.1 Determine activities requiring

materials. List the applicable Work Item

paragraphs and required material descriptions

on Appendix A.

5.2.2.2 Determine the quantity and material

costs for the required materials and enter

the information in Appendix A. General

guidance is as follows:

a. When estimating material costs, the

following shall be considered:

5.2.1.9 The total labor and material costs

for Sub Contractors and Manufacturing

Representatives, when applicable, are

included in their final calculation.

5.2.2 Some sources for pricing information

can be identified/accessed in NMD by right

clicking in the related screen area and

selecting the links. Material costs for Sub

Contractors and Manufacturing

Representatives, when applicable, must be

calculated separately (e.g., separate

paragraph line items for each) on the reverse

side of Appendix A (this is because their

costs are indicated in separate blocks on the

front of Appendix A in determining Total

Estimated Contractor costs).

5.2.2.2 Sources of Pricing Information. Navy

stock prices should be used for estimating

but the estimator must also consider

availability of the material. The best non-

Navy source of current pricing information is

the manufacturer or dealer who is in the

business of distributing the materials or

parts needed. Where available, catalogs of

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(1) The kinds and quantity of each

material required to accomplish the

work.

(2) The "lead time" for procuring

the material.

(3) Is the material commercially

available?

(4) The current or future price for

the material.

b. The estimator is not expected to be

as familiar with the material pricing as a

purchasing agent. The estimator shall use

drawing material lists, equipment technical

manuals and Allowance Parts Lists to

determine material requirements.

5.2.2.3 Total the cost for each required

material line item in Appendix A.

5.2.2.4 Sum up the total of all material line

items and enter the overall total cost (also

enter this total on the front of Appendix A).

pricing data should be ordered and maintained

in a central repository for reference by all

estimators who may require the pricing

information.

Contractor Furnished Material (CFM) vs.

Government Furnished Material (GFM). It is

general Department of Defense policy that

contractors provide all material necessary

for performance. That means simply that all

material should be CFM except where it is in

the best interest of the Government to

provide material as GFM. (Note: MSMO

contractors can and should obtain CFM through

the Navy stock system, if/when required

material is available). Exceptions to the

CFM policy include:

a. Items in long supply in the Navy

Supply System (i.e., items stocked far in

excess of expected item demand) should be

provided as GFM since it would be wasteful to

require contractors to buy such materials.

b. Items with a set shelf life that will

expire before normal draw down in the supply

system should be issued as GFM if such usage

remains within the shelf life requirements.

c. Long Lead Time Material (LLTM) should

be provided as GFM. In Government

procurements, items that are not commercially

available within the time period after

contract award and the time the contractor

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5.2.2.5 Enter total material costs for Sub

Contractors and Manufacturing

Representatives, when applicable, in separate

Paragraph line items on the reverse side of

Appendix A.

5.2.2.6 Sum up the total of all material

costs and man-hour/man-day costs for each Sub

Contractor, when applicable, Paragraph line

item and enter the total on the reverse side

of Appendix A.

5.2.2.7 Sum up all Sub Contractor totals

(labor and material) on the reverse side of

Appendix A and enter this total on the front

side of Appendix A.

needs the material for production is

considered LLTM.

d. Standardization material should be

provided as GFM. This material is the Special

Program Material and the Centrally Procured

Material purchased in support of the Fleet

Modernization Program.

e. Material requiring Provisioning

Technical Data should be provided as GFM.

Normally, repair material does not require

Provisioning Technical Data because it is

already stocked in the supply system.

f. Material items to be changed out

u

nder

special turnaround or repairable programs

should be provided as GFM.

5.2.2.5 Calculate Sub Contractor and

Manufacturing Representative totals. For

each Paragraph line item, multiply the total

man-hours/man-days (as applicable) by the

labor rate for man-hours/man-days to get

total labor costs. Then add total material

costs to arrive at the overall total cost and

enter the result in the corresponding

Paragraph line item on the reverse side of

Appendix A.

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5.2.2.8 Sum up the total of all material

costs and man-hour/man-day costs for all

Manufacturing Representatives, when

applicable; on the reverse side of Appendix A

(also enter this total on the front of

Appendix A).

5.2.2.9 Sum up all Manufacturing

Representative totals on the reverse side of

Appendix A and enter this total on the front

side of Appendix A.

5.2.2.10 Sum up all Labor, CFM, Sub

Contractor, and Manufacturer Representative

costs on the front side of Appendix A and

enter the result in the Total Estimated

Contractor cost block.

5.2.2.10 Upon completion of calculation and

entering Total Estimated Contractor cost, the

IGE is ready to for entry of its data and

information into NMD.

5.3 Enter data and information from Appendix

A into NMD. Use tutorial FDG 440-18, Enter

IGE into NMD.

5.3 FDG 440-18 shows how to enter the IGE

into NMD. The step by step tutorial built

into step 440-18 can be accessed by clicking

on the step to bring up the 5W information

box and selecting the tutorial (or

simulation) link.

5.4 SBS routes the IGE back to PM in NMD for

validation. IGE Procedure Complete.

5.4 Upon returning the IGE to the AQ3

tab/queue, any pertinent notes or comments

should be entered to support and assist the

PM/Technical Analyst/ACO in follow on

decisions and actions.

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SECTION 2. ADDITIONAL ESTIMATE CRITERIA FOR CONTRACT

MODIFICATIONS

1. Contractor Modifications

. For contract modifications,

including Master Agreement Job Order modifications and for

noncompetitive procurements, estimates must include allowances

for known conditions in the estimating environment. The scope

of the modification estimate must include consideration of

additions and deletions required by the change, the impact on

completed work by the change and the current status of materials

made obsolete by the change. The cost estimate must consider

the means of performing the work, the completion date and other

factors impacting on performance such as delay, disruption or

acceleration. These cost elements must be identified,

quantified and included in any cost estimate. In considering

the means of performance, due consideration must be given to the

contractor's normal operating procedures. The estimate should

be prepared based on the methods, procedures, facilities,

equipment and employees available to the contractor. In such a

sole source environment, it is unfair to the contractor to

negotiate changes on any basis other than those that impact on

the costs of performance by the contractor. Estimates for

changes must be prepared based on the way the contractor would

perform the work, considering current workload as well as

contractor inefficiencies and disruptions that may result from

the change. The estimate must also consider the timing of the

work to be done. Change work authorized early in availability

is less costly than change work authorized later. For example,

work in a propulsion space, authorized three weeks prior to a

Light-Off Examination by the Afloat Training Group could easily

be three to four times the cost of the same scope of work

authorized a week or two after the start of an availability.

2. Acceleration. Acceleration should be considered in

developing estimates for contract modifications that increase

the scope of work. Simply defined, acceleration is a speeding

up of the work in an attempt to complete performance earlier

than otherwise anticipated. Acceleration consists of such items

as increased manning, added shift work, overtime, rescheduling

of work force, new hires, new subcontracting, etc.

Acceleration, when required, must be considered in any estimate

for changed work in a job order. Acceleration costs will nearly

always be incurred when significant growth or new work is added

to a work package that is to be completed in the original

contract performance period. A contract is also "accelerated"

if the original performance period is decreased without an

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accompanying decrease in the scope of work. When acceleration

is required, it must be identified in the contract modification

(scope of work) and estimated as any other work element is

estimated.

3. Disruption. Disruption costs should also be considered in

developing cost estimates for contract modifications. It is the

cost of the man-hours, materials and other costs that are

expended to offset inefficiencies experienced as a result of

Government-caused or contractor-caused changes or other

departures from the original schedule that includes the effect

of changed work on unchanged work. It is also the process by

which the above inefficiencies in the performance of contract

work are created. Disruption, when it can be identified, must

be quantified and accounted for in any contract modification

estimate prepared. As with most estimating, quantifying

disruption is an inexact process and there are few official

guidelines to draw on for assistance. The real requirements to

be kept in mind are that it must be considered in determining

the scope of work and, if present, the contractor must be

compensated for disruption attributable to the change.

Disruption attributable to the contractor's past performance,

without regard for the change, must not be considered. In

addition, a straight percentage should not be applied for

disruption costs, but should be evaluated on an individual work

item by work item basis.

4. Delay. When a contract change affects the completion of the

contract, a contractor may request additional compensation for

this "delay." Delay can also be an element of the contractor's

cost estimate when other Government action or inaction causes a

delay to the contractor's efforts. Delay is defined as that

period of time a contractor is required to perform beyond the

planned delivery or completion date, due to contractually

remediable Government action or inaction (e.g., changes, stop

work orders, suspension or late or defective GFM). Delay must

also be considered whenever any time-oriented event affects the

length of or causes a suspension in scheduled contract work. As

with any other cost element, if present, it must be identified,

quantified and accounted for in any estimate provided. Delay

attributable solely to the contractor's execution of the job

order is not considered in any estimate for a contract

modification. In addition, a straight percentage should not be

applied for delay costs, but should be evaluated on an

individual work item by work item basis.

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APPENDIX A

STANDARD COST ESTIMATE

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APPENDIX A (reverse side)

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APPENDIX B

ESTIMATING CHECK-OFF LIST

SWLIN:

ITEMS:

REQUIREMENTS/

CONSIDERATIONS

ACTIVITY/ITEM

12345678 9 10 1112

1 INTERFERENCES

2 ACCESSES

3 GAS FREE REQUIREMENTS

4 COFFERDAMS/DIVING

SERVICES

5 CRANE/RIGGING SERVICES

6 STAGING/PROTECTIVE COVERS

7 INSULATION/LAGGING

8 TEMPORARY LIGHTING

9 TEMPORARY VENTILATION

10 SANDBLASTING

11 LABORERS

12 OTHER ASSIST TRADES

13 PRELIMINARY /SHOP TEST

14 OPERATIONAL TEST

15 TRANSPORTATION

16 CLEANING

17 CHIPPING/GRINDING

18 SYSTEM PURGE

19 SYSTEM FLUSH

20 CALIBRATIONS/ADJUSTMENTS

21 REPORTS/DATA

22 CERTIFICATIONS/SURVEYS

23 MANUFACTURING

24 FABRICATION/ASSEMBLY

25 TOUCH-UP PAINTING

26 WASTE/DAMAGE/REWORK

27 PREVAILING WEATHER

28 SHIP’S FORCE WORK

29 MATERIAL CONDITION

30 CATEGORY I STANDARD ITEMS

31 CHECKPOINTS

32 QUALITY ASSURANCE/NDT

33 MATERIAL REQUIRED

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APPENDIX C

CATEGORY 1 STANDARD ITEM

HARD-CORE LABOR CONSIDERATIONS

C

ATEGORY 1 S

T

ANDARD ITEM

HARD CORE LABOR CONSIDERATIONS

STANDARD

ITEM

HARD-CORE LABOR REQUIREMENTS ACTIVITY/ITEM

009-04 INSPECTION SYSTEM

(ROH/SRA) (QA & NDT)

009-07 FIRE PREVENTION

AND HOUSKEEPING

009-10 CONTROL OF SHIPBOARDING THERMAL

INSULATING MATERIAL

(LABOR INTENSIVE)

009-24 ISOLATING, BLANKING, AND TAGGING

(LABOR INTENSIVE)

009-61 CONTROL OF SHIPBOARD USE OF

FLOROCARBONS

(LABOR INTENSIVE)

009-65 SHIPBOARD ELECTRICAL CABLE

(LABOR INTENSIVE)

009-73 SHIPBOARD ELECTRICAL CABLE

(LABOR INTENSIVE)

009-74 CONTROL OF NON-ASBESTOS THERMAL FIBER

(LABOR INTENSIVE)

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SBS PROCEDURE 6

Review Contract Documents

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 310, Technical Analysis Review

1. The purpose of this procedure is to review Contract

documents per references (a) and (b).

2. SBS receive contract from PM/contacting officer.

3. Contract contains both work package and physical contract

requirements. Verify the following:

a. Type of contract (i.e., Fixed Price, Cost, Indefinite

Delivery/Indefinite Quantity (IDIQ), etc).

b. Is the contract for the correct contractor? (Section A,

Block 7).

c. Does the contract cover your ship (see Section B, look

for your ship by date, name and hull number).

d. Review Section C, Part 1 requirements carefully! This

tells you what the contractor is supposed to do and when.

e. Check for required use of Technical documents such as

the General Specifications for Overhaul, Naval Ships Technical

Manual (NSTMs), etc.

f. Many of the requirements you see written into the

contract are also written into the NAVSEA Standard Items. Read

each section carefully to make sure the contract does not

supersede the Standard Items.

g. Review Section C, Part 2 for general requirements.

h. Review Section D for Packaging and Marking requirements.

i. Review Section E for Inspection and Acceptance

requirements.

j. Review Section F for Deliveries or performance

requirements.

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k. Review Section G for Contract Administration data.

l. Review Section H for Special Contract requirements.

m. Review Part II, Section I for Contract Clauses.

n. Review Part III, Section J list of attachments.

o. Review Part VI, Sections K through M for any additional

information.

4. SBS will review entire Contract for any and all content

relevant to the availability being executed.

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SBS PROCEDURE 7

Review and Maintain Significant Events Log

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

1. The purpose of this procedure is to guide the SBS in

reviewing and maintaining their Significant Events Log per

reference (a).

2. SBS on site maintain a significant events log and provide

written documentation that supports Award Fee Evaluations and

CPARS.

3. Make copies of paragraph 7.2.4 and Sub-paragraphs (a)

through (d) of reference (a), Volume VII and insert them into

your Significant Event Log.

4. Number each page of the Log. Numbering should be “1 of

XXX”.

5. At a minimum the First Page should contain all information

concerning the Contract and or Supplemental Agreement numbers,

Ship Name and Hull Number, Dates of Availability, the Name of

the Prime Contractor and your name.

6. The individual's significant events notebook should be a

ledger-type, bound notebook having sequentially numbered pages.

Events shall be recorded in black ink as they occur. Each

recorded event shall indicate the date, time and a brief but

complete description of the event. No page shall be removed.

Mistakes shall be deleted with only a single line through the

text and initialed, permitting an unobstructed view of the

mistake. This notebook and related memoranda will become a part

of the "Significant Events" file and will be marked "FOR

OFFICIAL USE ONLY."

7. This is one of the most significant actions that every

member of the availability management team shall comply with.

Significant events are personal observations of conditions or

actions by or to any party to the contract that would affect the

performance of the contract.

a. Reference (a) requires that "significant events" be

recorded to assist in maintaining adequate documentation to be

used to verify, qualify or refute matters relating to a

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contractor's claim or Request for Equitable Adjustment (REA).

The documentation of "significant events" is required for all

contracts in excess of $5 million or for which a claim is

expected. A claim can be expected against any contract

associated with ship modernization and repair. All Government

personnel who are responsible for observing a contractor’s

performance, production processes, observing "G" check points

and monitoring operational tests and evaluations shall document

their observations and maintain a continuous real time notebook

of significant events. Notebooks shall be turned over to the

ACO, via the PM, at the completion of the availability.

b. The Contracting Officer retains this documentation in

the "Significant Events" file. All Government personnel

involved in the performance of such contracts shall maintain

this continuous real time notebook to record significant events

that occur during the contract period.

8. Essential information is generally provided by the

contractor while briefing RMC personnel on work status and

problem areas. During scheduled progress meetings, the RMC

should obtain or generate a list of Government actions or

inactions that the contractor claims are delaying the work

(e.g., delays in receipt of Government Furnished Material or in

Government authorization to precede with new or changed work).

To the extent the contractor identifies any Government action or

inaction which he claims is delaying work, RMC representative

shall advise the contractor to comply with the contract's

notification of change requirements, advise the ACO and document

the significant event.

9. When the RMC representative at the work site judges that

work progress is unsatisfactory, that test schedules are

improper because they do not permit sufficient time to correct

deficiencies, that open-and-inspect items are not being

accomplished promptly, that the contractor is manning the job

improperly, or that the procurement and receipt of contractor-

procured material is delayed, the RMC representative should

advise the contractor and document the significant event.

10. Throughout contract performance, the RMC representative at

the work site shall maintain written records of deficiencies in

work progress and accomplishment. These records shall be used

for such purposes as the determination of liquidated damages and

evaluation of claims. The records shall also serve as the

factual account for briefing higher authority if required.

Written records must reflect on the deficiencies and the steps

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the RMC has taken to obtain corrective action including all

actions the contractor takes. These records serve as input to

significant events files. The use of the records for

responsibility determinations is of particular importance.

Government policy requires contracts be awarded to responsible

contractors (i.e., contractors which can perform if awarded the

contract). The RMC shall maintain sufficient written records of

past contractor performance to permit an informed determination

of responsibility or non-responsibility to ensure an adverse

determination of responsibility is not overturned by higher

authority or the Small Business Administration. These records

shall be used to evaluate a contractor's proposal where past

performance is an evaluation factor.

11. To minimize the potential for claims, Navy personnel are

expected to be aware of problem areas and to keep adequate

records of events, particularly significant events.

12. One of the best approaches to ensure the generation of

necessary data to analyze and resolve claims is requiring all

relevant data on significant events be promptly generated. A

significant event is anything that occurs pertaining to a

contract, other than formal contract modifications, having a

material impact on cost, quality or delivery. Normally, a

separate file should be established for each significant event.

An individual should be assigned to ensure that a file is

established and all relevant future data is generated and

properly filed. A cross-reference on the location of documents

that are impracticable to include in the file should be

included. Significant events can be caused by either the

Government or contractors and include the following:

a. Ship delivery schedule changes or problems.

b. Drawings, designs and specifications that is ambiguous,

defective or impossible to perform.

c. Differences in interpretation of contract provisions.

d. Delay and disruption of contractor effort.

e. Changes in method of sequence of work.

f. Late or defective Government-furnished material, property

or information.

g. Rejections, rework, waivers and deviations.

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h. Planned versus actual performance milestones.

i. Delays in Government actions such as processing

engineering change proposals consent to subcontracts and review

of technical data.

j. Contractor error and noncompliance with contract terms.

k. Any other Government or contractor actions or inactions

which have the effect of requiring the contractor to perform

work different from the work prescribed by the original terms of

the contract.

13. Data that should be generated for each significant event

should include as a minimum:

a. The nature and pertinent circumstances of the event.

b. The date of the event and the identification of

Government and contractor personnel involved, including the name

and function of the respective individuals.

c. Identification of any relevant documents involved.

d. The substance of any oral communications related to the

event.

e. A statement concerning the possible consequences or

effects of the event described upon the contract cost, schedule

or technical performance, including manner or sequence of

performance. The SBS may use of a separate personal/daily log,

if desired, to record other events and information that do not

require documentation in the Significant Events Log. If a

separate log is maintained for events and information not

required in the Significant Events Log, do not use it to record

the significant events specified in reference (a). If an event

meets the criteria of significant, per reference (a), it must be

recorded in the Significant Events Log for later turn-in to the

ACO/CCO. See also, Volume I, Chapter 5, Section B, of this desk

guide.

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SBS PROCEDURE 8

Develop and Submit Daily Reports to Project Manager (One-Liner)

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 710, Work Schedule Management

1. The purpose of this procedure is to develop and submit Daily

Reports to Program Manager (One-Liner) per references (a) and

(b).

2. Develop an Excel Spreadsheet to record status of daily

activities to submit to PM on a daily basis. To format the

spreadsheet use the following methods.

a. Column (A) for Item numbers.

b. Column (B) title of work item.

c. Synopsis of Work Item.

d. Entry date of comments for that week.

e. Insert new row per day.

3. One-Liner becomes a part of the Maintenance Team Master File

at the completion of the availability.

4. One-Liner’s in maintenance master file is accessible to

entire maintenance team.

5. The Master File is maintained by RMC contracting department

for three years. After the completion of three years these

files are sent to Depository located in Washington DC for two

years, and after five years the files are destroyed if not in

litigation.

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SBS PROCEDURE 9

Review and Process Condition Found Reports (CFRS)

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 732, Condition Found Report

(c) NAVSEA Standard Item (NSI)

1. The purpose of this procedure is to review and process

Condition Found Reports per references (a) and (b).

2. The Contractor enters Condition Found Reports (CFRs) in the

NMD program; accordingly the SBS shall monitor Navy Maintenance

Database (NMD) daily for CFRs.

3. NMD maintains a CFR Summary Report with the following

information: Last Name, Answered, Outstanding, Urgent, CT

(Cycle Time) and Total.

4. SBS shall notify the Project Manager immediately of any CFR

that cannot be answered within five Days.

5. SBS shall review the CFR for all pertinent data per

reference (c) section 009-01. The SBS shall contact the

contractor via the Project Manager if any of the following

conditions exist:

a. Insufficient or incomplete information or data.

b. Inaccurate, false or misleading statements.

c. Enclosures are missing.

d. Request for overtime, lost time, stolen material

equipment, or request for an availability change.

e. Insufficient number of vendors contacted (minimum of

three required), when original material is unavailable and a

request for substitution of material is required.

6. SBS shall review the CFR and reply to each contractor

recommendation and/or finding within three (3) days of receipt.

When issues raised in a condition report require a longer

processing time, the contractor should be advised as to the

expected response time. Ensure CFR description/recommendations

are per reference (c) 009-01. When Government response involves

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an Engineering Service Request (ESR) and/or Design Service

Request (DSR), identify the ESR/DSR number on the CFR (“i.e.,

ESR/DSR 320-11111 applies.”) In summary, the government’s

response to the CFR must be clear, concise and address each of

the contractor’s findings. If the answer to a CFR is “no action

required (NAR)” then the SBS shall explain why (i.e., required

report, work deferred to future availability, covered in an

existing paragraph, etc.).

7. SBS shall use sound judgment, trade knowledge, readily

available Military Specifications, Military Standards Technical

Manuals, General Specifications for Ship, Naval Ships Technical

Manuals and assistance from other SBSs to resolve problem of

condition noted by contractor (any requested deviation and or

material substitution by the contractor shall only be done with

Design concurrence).

8. SBS shall initiate a Request for Contractual Change (RCC)

when correction of a problem changes the existing contract

requirements. SBS shall discuss any RCC with the Project

Manager prior to answering any report.

9. SBS shall review and provide any government comments and

route to the Project Manager. SBS shall review the report

against specification requirements and reply to each contractor

recommendation. The reply should be in writing and provided in

sufficient time for the Contracting Officer to take necessary

action and provide a definite recommendation, if action is

appropriate. CFR answers should not be simple one-liners. Each

answer or response should be well thought out and properly

written using the following as guidelines:

10. The SBS provides the contractor a response to the CFR. The

response will specify whether no action is required or if new or

growth work is required.

11. At a minimum, the SBS should always direct the contractor

to continue with the Basic work item requirements. When

accepting a CFR report, always let the contractor know what to

do as a result of the CFR or report.

12. When rejecting a CFR report always let the contractor know

what to do as a result of the CFR report.

13. The SBS may make remarks concerning only those requirements

already in writing, either technically or contractually. The

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exception to this rule: if additional work is not authorized,

the SBS may inform the contractor in the CFR response.

14. Direct the contractor to correct any identified non-

conformances within a given report and resubmit.

15. Do not authorize the contractor to proceed with any work

that is not contained within the basic contract, work item or

Standard Items authorized under the contract allowing this added

work creates the potential for a constructive change and is not

appropriate.

16. Responses for additional work authorized should be written

as follows: The “XXX A represents the actual RCC number being

used for the additional or changed work requirements.

“For additional work, RCC # XXX A applies when settled.”

OR

“For work not covered under this work item, RCC # XXX A

applies when settled.”

OR

“For deleted requirements, RCC # XXX A applies when

settled.”

17. Words or statements such as “Concur”, “Concur with

contractor”, or “Concur with Contractor recommendations” should

not be used when referring to recommended or requested

authorizations for additional work or for changes in work item

requirements because they can cause constructive changes to

occur, and their use is therefore to be avoided. Address only

those issues which are directly written into the contract,

NAVSEA and Local Standard Items, and the Work Items (also known

as ‘The Basic’).

18. For Technical Manuals and Drawings, if the contractor needs

clarification and the requirement is clearly written into the

referenced document, the SBS may direct the contractor to that

location within the reference. Otherwise, the SBS must seek

assistance from the Technical Warrant Holder in engineering.

19. For any and all potential changes, the SBS should always

make the contractor aware of expectations concerning existing

contract requirements, such as, cost, quality and scheduling

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issues. Failure to do so will always cost the government in

lost time, money and quality. Remember you cannot require the

contractor to do anything that is not in writing, but you must

expect the contractor to deliver everything that is in writing.

20. Attach the ESR/DSR/DFS to the CFR, if applicable.

21. Create and insert a Hard Copy of the response into the OQE

files.

22. Formal Engineering Service Requests, Design Service

Responses, Engineering Notes and Departure from Specifications

may be issued to the contractor as part of the shared

information clauses contained within the contract, but must be

written into the contract via RCC in order for the authorized

work to be accomplished. These documents must be listed as

references under paragraph 2 of the Work Item(s) to which they

apply.

23. All deleted requirements must be validated and authorized

by engineering and contracts. Do not delete a requirement on

your own! You are not authorized!

24. All changes to requirements must be validated and

authorized by engineering and contracts. You are not authorized

to change a requirement on your own. Remember Engineering

Responses of any type will often create the need for an RCC to

be created in order to accomplish the requirements of the

Response.

25. Ensure your response does not create an unauthorized

commitment to the government.

26. Commitments are made only through the RCC process.

27. Commitments can only be made through the ACO/PCO and only

in writing. The next series of steps assumes that the user has

just logged in to NMD Execution and is located at the NMD

Execution home page.

SBS ENTERING REPORTS IN NMD

28. Click CFR on the menu bar.

29. Click REVIEW AND ROUTE from the dropdown menu. The

SHIPBUILDING SPECIALIST REVIEW AND ROUTING screen appears.

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30. Click the SELECTED AVAILABILITY field dropdown arrow

to display assigned availabilities and then click the desired

availability.

31. Click the CFR ROUTING tab.

32. Highlight the CFR you wish to review and route.

33. Click VIEW CFR. (When dialogue box appears click OK).

34. When the CFR appears, review information on the GENERAL

INFORMATION tab, and then click the CONTRACT SUBMITTAL tab.

Review the contractor’s input.

35. Click the GOVERNMENT RESPONSE tab and enter the response.

36. Click the SAVE icon in the upper left corner of the screen.

37. Click the EXIT icon (two icons to the right of the SAVE

icon). The REVIEW AND ROUTING screen appears.

38. Click either ROUTE TO PORT ENGINEER or PROJ MANAGER.

39. Click SAVE.

40. Click EXIT.

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SBS PROCEDURE 10

Review Weekly Production Schedule

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 710, Work Schedule Management

1. The purpose of this procedure is to review Weekly Production

Schedule per references (a) and (b).

2. Receive Production Schedule from contractor via NMD. (A

Condition Found Report (CFR) will contain the production

schedule).

3. Review Line one on Production Schedule to ensure performance

period is within requirements of contract.

4. Review production schedule to verify each work item is

captured in the production schedule as identified in the

contract.

5. Review each work item to ensure sequencing of work and the

requirement of each work item are entered and correct.

6. Check for potential conflicts between scheduled work items.

7. Check for potential problems in meeting Key event and

milestone dates. Notify PM immediately of any potential

problems with the schedule. (These issues are to be addressed

at daily and weekly production meetings.)

8. Accomplish steps in paragraphs one through four each week to

ensure any/all changes are reflected in the production schedule.

9. Ensure all settled Request for Contractual Changes (RCCs)

are annotated in the updated production schedule.

10. Issue Test and Inspection Plan to Engineering for

validation of technical requirements.

11. Receive Validation Report from Engineering Department.

12. Answer CFR as acceptable or unacceptable, based on SBS and

Engineering review. If unacceptable, identify or state the

reason or reasons. Be Specific.

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a. The contractor needs to know what he is doing wrong so

it can be corrected, so do not make them guess.

b. While all SBSs have the responsibility to review the

Complex Schedule, the SBS assigned overall responsibility for

accomplishing this procedure must receive Scheduling Training

prior to overseeing this procedure. This will allow the SBS to

also evaluate additional factors, such as whether or not the

critical path items are all aligned correctly, determine if

enough float time is incorporated into the schedule to allow

completion in the time allotted, and so on.

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SBS PROCEDURE 11

Monitor Test and Inspection Plan

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 742, Test/Inspection Points

(c) NAVSEA Standard Item (NSI)

1. The purpose of this procedure is to review and monitor Test

and Inspection Plan per references (a) and (b).

2. Receive Test and Inspection Plan from contractor via Navy

Maintenance Database (NMD) (Condition Found Report (CFR)

attachment will contain Test and Inspection Plan).

3. Ensure all required test and inspections are annotated on

the Test and Inspection Plan. This will include:

a. All tests and inspection requirements called out from

the individual Work Items.

b. Associated tests and inspections called out from

Category I and Category II of reference (c) and local standard

items associated with each individual Work Item.

c. Additional tests and inspections from Category II

callouts in the primary Standard Items associated with each

individual Work Item.

d. Any additional inspections or tests that may be required

by the original contract or supplemental agreement.

e. Additional tests and inspections that may be required by

Category I and Category II Standard Items NOT directly

associated with each Work Item.

f. Additional tests and inspections required from Category

I Standard Items. Prior to the start of the Availability,

individual Repair Process sheets should already be developed for

each of the Work Items included in the Availability Work

Package. Use of the Repair Process sheets during this process

will significantly reduce review time.

4. Accomplish initial verification, annotating any deficiencies

for your response to the contractor. Based on the criteria

listed in paragraph 2 above.

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5. Accomplish weekly and daily monitoring of Test and

Inspection plan for changes and updates, annotating any

deficiencies for your response to the contractor.

a. Any new requirements from Request for Contractual Change

(RCC).

b. Any removal of requirements from a Work Item or any of

the associated Standard Items.

c. Any completed checkpoint, which should include the Date

Accomplished and the serial number of the checkpoint sheet used

for the test or inspection and the Result (SAT/UNSAT), at a

minimum. If the test or inspection results in a required

report, the report must be referenced on the Test and Inspection

Plan (TIP) Sheet as well. The SBS shall maintain a hard copy of

the APPROVED Test and Inspection Plan, and update it as they are

made aware of changes. The hard copy will then be used to

verify updated copies from the contractor, as they are received.

6. Verification of the updated Test and Inspection Plan shall

be accomplished line by line for previously existing line items

and using guidance provided within paragraphs 2, 3, and 4 of SBS

Procedure 12 for any new items inserted into the Plan.

7. If new requirements are inserted into the Test and

Inspection Plan, issue a copy to engineering for validation of

any technical requirements.

8. After the engineering review is complete and a report is

received by the SBS listing technical deficiencies or

acceptance, the SBS will answer the CFR indicating that the Test

and Inspection Plan is either acceptable or not acceptable. If

the report is not acceptable, identify or state the reason or

reasons, using notes captured in SBS Procedure 12 paragraphs 3

and 4. Be specific. The contractor needs to know what he is

doing wrong so it can be corrected, so do not make them guess.

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SBS PROCEDURE 12

Review Integrated Test Plan

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 520, Oversee Integrated Schedule

1. The purpose of this procedure is to review Integrated Test

Plan per references (a) and (b).

2. Receive Integrated Test Plan from contractor via NMD CFR.

The Integrated Test Plan will be provided as an attachment.

3. The assigned SBS shall coordinate with Local Regional

Maintenance Test Coordinator (if billeted) for a composite

review of the Integrated Test Plan.

4. The following reports shall be on hand in hard copy, for the

review:

a. Integrated Test Plan submitted from the contractor.

b. The current, approved and the newly submitted Test and

Inspection plans from the contractor.

c. The hard copy Test and Inspection Plan maintained by the

SBS.

d. The latest approved copy of the Complex Schedule (Gantt

chart format with legible dates).

e. An approved Copy of each AIT team test and inspection

plan.

f. An approved copy of consolidated RMC Production Shop

Test and Inspection Plan.

g. An approved copy of the Ship’s Force work Test and

Inspection Plan.

FOR THE INITIAL INTEGRATED TEST PLAN VALIDATION:

5. Using the Reports listed above, determine or verify the

following:

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a. All tests and inspections are listed in the individual

plans.

b. Final tests and inspections have been identified for all

work being accomplished during the availability timeframe.

c. Determine when final tests and inspections must be

accomplished based on milestones and key events listed in the

complex schedule.

6. Using the existing Test and Inspection plan, any updated

Information from the updated reports listed in Engineering

Service Request (ESR)/Design Service Request (DSR), and any

updated information in possession of the SBS, RMC Production

Shops or Alteration Inspection Teams (AIT) update and validate

the information contained in the updated Integrated Test Plan.

7. Answer the CFR as acceptable or not acceptable. If not

acceptable, identify or state the reason(s). Be Specific. The

Contractor needs to know what he/she is doing wrong so it can be

corrected, so do not make them guess.

FOR WEEKLY UPDATES TO THE INTEGRATED TEST PLAN

8. Provide the same hard copy reports as listed in paragraph 3.

9. Accomplish a line by line review of the Integrated test

Plan, noting all changes.

10. Verify changes against the hard copy reports.

11. Document changes on the updated Integrated test Plan.

12. Provide a report of discrepancies to the SBS.

13. Answer the CFR as acceptable or not acceptable. If not

acceptable, identify or state the reason(s). Be Specific, and

remember that the contractor needs to know what he/she is doing

wrong so it can be corrected.

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PROCEDURE 13

Enter, Review, and Process ESRs, DSRs, LARs and DFSs

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 730, Resolution of Technical

Issues

(c) Fleet Desk Guide FDG 743, Departure from

Specifications

1. The purpose of this procedure is to guide the SBS in

entering, reviewing, and processing Engineering Service Requests

(ESR)/Design Service Request (DSR), Liaison Action Requests

(LAR) and Departures From Specifications (DFS) per references

(a) through (c).

2. When the following instances occur the SBS shall initiate

the appropriate action (enter, review or process) an ESR/DSR or

LAR using reference (b) and this procedure, or a DFS using

reference (c) and this procedure. It should be understood that

instances requiring the SBS to initiate/take actions are not

limited to the following specific instances.

a. Contractor requests for deviation (ESRs, DSRs, LARs and

DFSs).

b. Changes to SHIPALTs that may alter location of

equipment, dimensions shown on drawings, or material.

c. Material deviations not reflected in equipment technical

manuals and or drawings.

d. Data provided by contractor cannot be determined to be

acceptable with information available in the Work Item

references.

e. References listed in Work Item are vague.

f. To evaluate chemical analysis when needed and shall

include the following:

(1) Date and serial number of the letter forwarding the

lab report along with the name of the prime contractor.

(2) Type of waste being analyzed, i.e. waste oil, fuel

oil, bilge water, etc.

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(3) The approximate quantity of waste from which the

sample was taken.

3. Dependent upon urgency, the SBS shall initiate a phone call

to the Engineering department for the required action and when

possible, verbally obtain the desired technical information and

follow-up with written notification.

4. SBS shall report all ESR/DSR not answered within three days

to the Project Manager.

5. SBS shall initiate action to implement the answered ESR/DSR

into the Work Item.

6. An ESR/DSR are a government issued document and shall not be

issued to the contractor. Information from the ESR shall be

extracted for answering Condition Found Reports (CFRs). ESR/DSR

number shall be annotated in CFR for government reference.

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SBS PROCEDURE 14

Develop Request for Contract Change (RCC)

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 733, Request for Contract Change

1. The purpose of this procedure is to develop review

Integrated Test Plan per references (a) and (b).

2. First determine if Request for Contract Change (RCC) is

actually needed.

3. Is it covered by Standard Item?

4. Is it covered by the Work Item?

5. Can it wait for Next Scheduled Availability? Talk it over

with your PM.

6. RCC should be clear, concise, and contractual.

7. RCC should describe “what to do” not “how to do it”.

8. RCC should be limited to the requirements necessary to

achieve the desired results and must NOT upgrade equipment or

exceed original design.

CREATE RCC IN Navy Maintenance Database (NMD) EXECUTION:

The following steps assume that the SBS has logged in to NMD and

is located at the NMD Execution home page.

9. Click RCC in the menu bar.

10. Click MAINTAIN RCC on the dropdown menu. The ITEM INFO

screen appears.

11. Click the AVAILABILITY dropdown arrow to display assigned

availabilities and click the desired availability.

12. The cursor goes into WORK ITEM NUMBER field. Enter the

work item number (with dashes).

13. Click the QUERY tab at the top of the screen and then click

EXECUTE from the dropdown menu.

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14. Click the CREATE RCC button located at the bottom of the

screen. A popup box will appear indicating the work item has

been successfully locked. Click OK. Another popup box will

appear warning you that if you have clicked the RCC button in

error to exit without saving. If ready to proceed, click OK.

Another popup box will appear with additional instructions.

Click OK.

15. In the TITLE field enter the title for growth work. Click

SAVE. A popup box will appear indicating the transaction is

complete. Click OK. The JCN screen will appear.

16. Click the WORK CENTER field LOV button in the ASSIGN JCN TO

RCC block. Select the JSN and click OK. Click the SAVE icon

and then click the underlying screen to return to the ITEM INFO

tab.

17. Click the LINK CFR button. (Put a check mark on any CFRs

that apply to the RCC. Click SAVE then EXIT.

18. Click the REQUIREMENTS tab.

19. Scroll down the work item and decide where you want to

insert the new paragraph.

20. Click in the PARAGRAPH block. Click the INSERT RECORD

icon. (GREEN+ located top right of the screen.) Type in the new

paragraph number and hit the TAB Key. Type in the new

requirement. Then click the SAVE icon. A popup box will appear

indicating transaction complete. Click OK.

21. Click the ITEM INFO Tab. Notice that an RCC number has

been assigned and the status indicated is IN PROCESS.

22. Click the ESTIMATE button located on the bottom of the

screen.

23. In the ESTIMATE SUMMARY screen click the CREATE ESTIMATE

button. Click the first blank CONTRACTOR field, click the LOV

button to display a list of contractors, select the desired

contractor, and click OK. The remaining fields on the line will

populate. Click the SAVE icon.

24. Click the PARAGRAPH ESTIMATE tab.

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a. In the PARAGRAPH ESTIMATE tab use scroll bars, if

necessary, to locate the paragraph you want to estimate. Select

the INDEPENDENT GOVERNMENT ESTIMATE radio button.

b. In the LABOR ESTIMATE area click the CONTRACTOR LOV

button, select the desired contractor, and click OK.

c. Tab over to the TRADE field and select the trade that

applies using the LOV button.

d. Tab over MAN HRS field and type in required hours.

e. Continue using the tab key and making your selections

until you are finished.

f. In the MATERIAL ESTIMATE area click in CONTRACTOR field.

g. Select the desired contractor and click OK.

h. Tab over to the DESCRIPTION field and type in MATERIAL

or the sub contractor’s name.

i. Tab over to the TYPE field and enter the type of

material using the LOV button.

j. Tab over to the QTY field and type in the amount.

l. Tab over to the UNIT OF ISSUE field select the desired

unit of issue. Select from the menu.

m. Continue using the tab key and the selections until you

are finished.

n. Click SAVE icon. The subtotal fields will populate.

25. Click on the ESTIMATE TOTAL tab.

a. Click CALCULATE ESTIMATE button. Review estimate to

verify government is within 10% of the contractor estimate. (If

getting reimbursed for labor or material, place a negative sign

before the estimated amount. ex. -100)

b. Click the PRINT ESTIMATE button Located on the bottom.

c. Print the estimate and close window. A popup box will

appear asking if you want to save changes. Click OK. Click the

EXIT icon to return to the ITEM INFO tab.

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26. Click the PROJ. MGR radio button and then click the ROUTE

button. The STATUS will indicate AWAITING PM APPROVAL. Click

SAVE. Failure to click SAVE here will cause the status to

revert to IN PROCESS and you will not be able to create

additional RCCs against the work item until it has been

successfully routed to the Project Manager.

27. Click the PRINT RCC button to print RCC. Then exit window.

28. Click the SAVE icon and then click EXIT.

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SBS PROCEDURE 15

Perform Check Points and Enter Data

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 742, Test/Inspection Points

1. The purpose of this procedure is to guide the SBS in

performing Check Points and Enter Data per references (a) and

(b).

2. Perform steps in paragraphs 1 through 13 if check points are

already pre-populated in NMD.

3. Receive notification (normally four hours prior) from the

contractor that test or inspection is ready to proceed.

4. Review work item, Test and Inspection Plan, and any

technical manuals and drawings which may contain the required

acceptance criteria. (Understand the process being conducted

and the purpose for which it is being conducted before attending

the checkpoint.)

DURING THE CHECKPOINT:

a. The Contractor Quality Inspector should have all

documentation on hand for the checkpoint, including:

(1) Work Item.

(2) All previously completed checkpoint Documentation.

(3) All technical manuals and drawings listing technical

requirements concerning the checkpoint.

(a) Contractor Personnel conducting the test or

inspection should already be set up with all tools and materials

on hand.

(b) Do not

act as the Inspector. The Contractor

Quality Inspector conducts the inspection and accepts or rejects

the work.

(c) Exceptions: for Critically Coated Surfaces and

for Welding Non-Destructive Tests and Inspections the SBS shall

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act as the third party inspector and sign as accepting or

rejecting the work.

(d) Exceptions. Additional areas may require

certain training or certification of the SBS prior to being

allowed to participate as an acceptance inspector for tests or

inspections such as: Cableway, Propeller, Boiler, Diesel, and

Magazine Sprinkler systems.

1. Inspection of Cableways, Critically Coated

Surfaces and Weld Tests and Inspections require that the

inspector be certified. If not certified, the SBS shall not

conduct or sign for the inspection or test.

2. Additional tests and inspections may require

that a Technical Matter Expert (TME) or Subject Matter Expert

(SME) be on hand while the test or inspection is conducted.

When this occurs, the SBS is still required to be on hand for

the test or inspection. The SBS is still responsible for

collecting all Objective Quality Evidence (OQE) for the assigned

Work Items.

5. Upon completion of the inspection, the Contractor Quality

Inspector will complete the checkpoint form and indicate whether

the test or inspection is SAT or UNSAT. Sign and date the form

prior to turning over to the SBS for signature.

6. If on hand for the test or inspection, the TME/SME will sign

and indicate concur or do not concur.

7. If on hand for the test or inspection, the Ship’s Force

Representative will sign and indicate concur or do not concur.

8. The SBS shall always be the last one to sign the test or

inspection form.

9. The SBS shall collect a copy of the completed and signed

test or inspection form for inclusion in the OQE files. The OQE

files shall be maintained in an auditable form in per Commander,

Navy Regional Maintenance Center (CNRMC) and Local instructions.

10. The SBS shall update the hard copy of the Test and

Inspection Plan with the date of completion check form serial

number, and results. The next series of steps assumes that the

user has just logged in to NMD Execution and is located at the

NMD Execution home page.

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Upon completion of the Check Point:

11. From NMD Execution window click QA MANAGEMENT.

12. Click MAINTAIN CHECKPOINT. The CHECK POINT LOG screen will

appear.

13. Click the SELECTED AVAILABILITY dropdown arrow to display

availabilities.

14. Click the desired availability. The check points for the

selected availability will automatically populate.

15. Click the desired WORK ITEM NBR field. If the checkpoint

is not pre-populated by NMD, follow paragraphs 15 through 30 to

manually insert the check point record.

16. Enter the location of the checkpoint in the LOCATION field.

17. Enter the contractor’s point of contact in the KTR POC

field.

18. In the GOVERNMENT COMMENT field enter SAT or UNSAT with

amplifying comments as appropriate.

19. Click the LOV button associated with the RMC REP PRESENT

field. The VALID VALUES FOR RMC PRESENT pop up box appears.

Click Y or N as appropriate and then click OK.

20. Click the LOV button associated with the RMC WITNESS field

and select the appropriate name and then click OK.

21. Click the LOV button associated with the SF PRESENT field.

The VALID SF PRESENT VALUES pop up box appears. Click Y or N as

appropriate and then click OK.

22. Click the LOV button associated with the RESULTS field.

The VALID VALUES FOR RESULTS pop up box appears. Select C, S,

or U as appropriate and then click OK.

23. Click the LOV button associated with the VALUE ADDED field.

Click Y or N as appropriate and then click OK.

24. Click the SAVE icon and then click the EXIT icon.

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Perform steps in paragraph 23 through 30 if manually inserting

check point record. (Assumes the user is in the NMD CHECKPOINT

LOG).

25. Click the SELECTED AVAILABILITY field and click the desired

availability.

26. Click the desired work item in the WORK ITEM NBR field.

27. In the first blank checkpoint row, enter the appropriate

paragraph number from the Work Item in the PARA #* field using

the LOV button and then Click OK.

28. Click the LOV button associated with the STD ITEM field and

click the appropriate standard item and then click OK.

29. Click the LOV button associated with the STD. ITEM PAR to

display a list of standard items paragraph numbers. Click the

appropriate standard item paragraph on the list and then click

OK.

30. Click each applicable CHECKPOINT TYPE check box.

31. Enter check point text that corresponds to the work item of

standard item in the CHECK POINT TEXT field.

32. Click the SAVE icon and then click the EXIT icon.

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SBS PROCEDURE 16

Review and Enter Work Item Progress

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 710, Work Schedule Management

1. The purpose of this procedure is to review and enter work

item progress within NMD per references (a) and (b).

2. The next series of steps assumes that the user has just

logged in to NMD Execution and is located at the NMD Execution

home page.

3. Click PROGRESS in the menu bar to display menu options.

4. Click WORK ITEM PROGRESS from the dropdown menu. The WORK

ITEM PROGRESS screen appears.

5. Select Availability. Click the SELECTED AVAILABILITY

dropdown arrow to display availabilities.

6. Click the desired availability. The availability work items

will automatically populate the table.

7. Click the desired Work Item and enter percent complete in

the COMPLETE PCT field. See notes 2 through 5.

8. Click SAVE then click EXIT.

ADVANCED OPTION:

9. Complete steps in paragraphs 1 through 4.

10. Select QUERY In the menu bar and then click ENTER in the

resultant dropdown menu. A blank WORK ITEM PROGRESS table will

appear.

11. Enter the last name of the applicable SBS in the LAST NAME

field on the highlighted line of the table. This entry is case

sensitive.

12. Click QUERY in the menu bar and then EXECUTE in the

resultant dropdown menu. All Work Items for the designated SBS

will populate the table.

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13. Click the Work Item that you wish to progress and enter the

percent complete in the COMPLETE PCT field.

14. Click SAVE then Click EXIT.

a. The SBS shall progress Work Items using the Physical

Progress chart provided in reference (a), Volume VII, chapter 7,

Appendix E, as the basis.

b. The SBS shall indicate progress for each work item

assigned, independently from the contractor. Progressing shall

be accomplished on the same day as the contractor superintendent

provides input for progress. This prevents confusion and better

aligns the Government estimate of progress with the contractor

estimate.

c. Care must be taken to be as accurate as possible, since

the contractor often depends on partial payment to continue

work.

DO NOT BASE PROGRESS ON EXPENDITURE OF TIME AND MATERIAL.

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SBS PROCEDURE 17

Enter Product Verification Inspections

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

1. The purpose of this procedure is to enter Product

Verification Inspections within NMD per reference (a).

2. Product Verification Inspections (PVI) should be entered in

the NMD (the program of record) by the SBS making the

observations. RMCs indicated that PVI is entered on a

spreadsheet by the SBS and turned over to QA Department who

enters the information in a separate database. Ostensibly, this

is done because NMD PVI does not currently contain a detailed

enough list of inspection attributes that is consistent with

newer requirements for Quality Management Plans.

3. Use standard PVI sheets to conduct inspections and maintain

a hard copy for the OQE Files.

4. All PVI sheets should document the number of inspections

conducted in each area of interest.

5. All unsatisfactory inspections require a CAR to be

generated. Normally this will be a Method “A” CAR; however,

depending on the severity or frequency of the discrepancy,

elevated CARs may need to be generated. Product Verification

Inspection (PVI) is the element that verifies that the

contractor’s product conforms to contract requirements. PVI is

accomplished by physical examination, verification, testing,

concurrent witnessing, monitoring the repair overhaul or

construction process.

6. SBS shall gather daily observations for entry into the

database. The PVI database provides an attribute list to use

for guidance.

7. Checkpoint observations shall be entered into NMD.

8. QA department develops the Procurement Quality Assurance

(PQA) Plan using historical data from the PVI and CAR database.

This plan allows the SBS to concentrate surveillance on the

contractor’s past weaknesses.

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9. The next series of steps assume the user is logged in to NMD

and is located at the NMD Execution Home Page.

a. Click QA MANAGEMENT in the menu bar. An OBSERVATION

screen appears.

10. Insert record.

a. Click the SELECTED AVAILABILITY dropdown arrow and then

click the desired availability from the resultant dropdown list.

Fields may be populated with data from the previous PVI entry.

11. Click RECORD on the menu bar and then click INSERT on the

resultant dropdown menu. This will clear the form for new data

entry.

12. Click the LOV button associated with the OBSERVATION DATE

field and click the desired date in the dropdown calendar.

Click OK. In addition to populating the DATE field, this entry

will cause the OBSERVATION field, CODE field, PHONE field, and

CELL field to auto populate based on the user’s logon.

13. Click the LOV button associated with the WORK ITEM field

and click the desired Work Item on the resultant list of values.

Click OK.

14. Click the LOV button associated with the LOCATION field and

click the desired location from the resultant list. Click OK.

15. Click the ATTRIBUTE LIST NR field LOV button, click the

desired attribute number from the resultant dropdown menu, and

click OK.

16. Click the OBSERVATIONS field and enter the number of

observations performed.

17. Click the NUMBER OF DEFECTS field and enter the number of

defects. The DEFECT RATE field will auto populate.

18. Enter observations in the comment blocks; identify

specifically what the observation was. If defects are found, a

Method “A” CAR shall be documented in the comment block. The

SBS will write: Method “A” CAR followed with verbiage prepared

per these guidelines: make the language clear, concise, and list

the acts only. Do not interject any anecdotal evidence,

opinion, etc. All SBSs should write them the same. Short,

simple, and to the point. Always tie the nonconformity to KTR

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"Quality Management System" (QMS) since 009-04 requires them to

manage every facet of their work. First sentence should list

the contractual violation, including the paragraph from the

applicable reference. The second sentence should list the

actual event that caused the nonconformity with dates and

details. The word "comply" fits better than "accomplish"

because the nonconformance is a compliance issue, not an

accomplishment issue. Closed: DATE after the KTR reports

corrective actions to SBS.

19. If the nonconformity requires that an elevated CAR should

be written, the SBS will complete Procedure 19.

20. As with the Method A CAR, the SBS will document the

nonconformance in the comments block in NMD, but will annotate

that it is a Method B or higher and tie the nonconformance to

the CAR created in SBS Procedure 19. Remember that these are

compliance issues not accomplishment issues, so document the

nonconformity carefully.

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SBS PROCEDURE 18

Write, Maintain, and Review Corrective Action Reports (CARS)

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 741, Corrective Action Request

Process

(c) NAVSEA Standard Items (NSI)

(d) Federal Acquisition Regulation (FAR)

1. The purpose of this procedure is to write, maintain, and

review Corrective Action Reports per references (a) and (b).

2. Log in to NMD Execution. At the homepage click QA

MANAGEMENT in the menu bar and then click MAINTAIN CAR from the

resultant dropdown menu. The CORRECTIVE ACTION REPORT (CAR)

screen will appear.

3. Click the SELECTED AVAILABILITY field dropdown arrow to

display availabilities. Click the desired availability. A

popup box will appear asking if you want to save changes. Click

OK.

4. Click the INSERT RECORD icon (Green “+” sign at the top of

the screen).

5. Click the WORK ITEM NUMBER field LOV button to display menu

choices. Click desired work item number and then click OK.

6. Click the CA TYPE field LOV button and click the type of CAR

that applies and then click OK.

7. Click the CA AREA field LOV button to display menu choices.

Click the appropriate area and then click OK.

8. Click the LOCATION field LOV button to display menu choices.

Click the appropriate location and then click OK.

9. Click the ATTRIBUTE NUMBER field LOV button, select the

appropriate entry from the resultant menu choices, and then

click OK.

10. Click the CAR DETAILS tab.

11. In reference block enter work item number, paragraph number

and references as applicable.

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12. When writing a Method B CAR, make the language clear,

concise, and list the acts only. Do not interject any anecdotal

evidence, opinion, etc. All SBSs should write CARs the same

way, i.e., short, simple, and to the point. Always tie the

nonconformity to the Contractors (KTRs) Quality Management

System (QMS) as NAVSEA Standard Item 009-04 requires contractors

to manage every facet of their work. The first sentence should

list the contractual violation, including the paragraph from the

applicable reference. The second sentence should list the

actual event that caused the nonconformity with dates and

details. The word "comply" fits better than "accomplish"

because the nonconformance is a compliance issue, not an

accomplishment issue.

13. If you want to attach a document click the SEE ATTACHED

checkbox and proceed to the next steps. The additional steps

for actually attaching documents will be shown at the end of

this procedure.

14. Click the PRODUCTION IMPACTED checkbox if production is

impacted.

15. Click the REWORK checkbox if rework is required.

16. Select the SAVE icon. A popup box will appear indicating

the transaction is complete. Click OK.

17. Obtain approval of the CAR from the Project Manager before

prior to the next steps. The PM has responsibility to review

all documented nonconformances, to ensure accuracy and to be

made aware of any nonconformance issues during the availability.

However, the PM does not have authority to tell the SBS not to

document a nonconformance! Both the Joint Fleet Maintenance

Manual (JFMM) and the Federal Acquisition Regulation (FAR)

require that ALL nonconformances be documented. Failure to

document all nonconformances is a big part of the reason we

continue to have major incidents. Note that whenever we have

two or more non conformances within a given work item, the

possibility of having an incident increases exponentially.

Incidents are defined in one of three ways: 1-Personnel injury

or death; 2-damage to, or destruction of, government equipment;

3-incurring of additional costs not required for completion of a

work item, i.e., rework, work not properly identified, work

boundaries not adhered to by the contractor, delay of work by

contractor, etc. After a nonconformance has been discovered and

documented, management has the option to enforce corrective

action in any way they deem necessary.

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18. Click the GENERAL INFORMATION tab.

19. Click the SUBMIT CAR FOR AUTHORIZATION button.

20. At this point the CAR will be sent to the QA Department for

serialization and to QA of the CAR.

21. Once the process is thru QA the SBS will then sign the CAR

for release to the KTR.

22. The KTR has a maximum of XXX days. See: reference (c)

section 009-04 for timeline to review and answer CAR, as invoked

in Contract.

23. Upon receipt of response from KTR SBS will determine if

response is per reference (c) section 009-04.

24. If CAR is unacceptable as determined by SBS, he will

identify unacceptable conditions and return CAR to KTR for

further processing.

25. Upon final acceptable response, the SBS will sign CAR and

forward to the QA Department for close out.

26. The QA department will close out the CAR.

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SBS PROCEDURE 19

Certify Work Items

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 460, Work Item Review

1. The purpose of this procedure is to certify work items per

references (a) and (b).

2. Review the following documents to ensure contractual and

technical requirements have been met.

a. Contract and any revision or Supplemental Agreements.

b. Latest up to date Test and Inspection Plan.

c. Work specifications and Request for Contractual Changes

(RCCs).

d. Engineering Service Request (ESR)/Design Service Request

(DSR). Ensure technical requirements have been incorporated

into work items. Ensure ESR/DSR program technical verifications

were accomplished where required.

e. Check points and other Objective Quality Evidence

documents.

f. Required Reports.

g. Condition Found Reports.

h. Significant Event Log is completed and up to date.

i. Objective Quality Evidence collected matches Test and

Inspection Plan.

3. Report all exceptions to PM.

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SBS PROCEDURE 20

Availability Close Out

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 800 (series)

1. The purpose of this procedure is to review and enter work

item progress within Navy Maintenance Database (NMD) per

references (a) and (b).

2. Review the following documents to ensure contractual and

technical requirements have been met.

a. Contract and any revisions or Supplemental Agreements.

b. Latest, up to date Test and Inspection Plan.

c. Work specifications and Request for Contractual Changes

(RCCs).

d. Engineering Service Request (ESR)/Design Service Request

(DSR)/Liaison Action Requests (LARs)/Independent Liaison

Requests (ILARs)/Departure from Specifications (DFSs).

e. Conditions Found Reports (CFR).

f. Check point reports and other Objective Quality Evidence

(OQE) documents.

g. Significant Event Log.

3. Verify work item is closed out in NMD.

a. All checkpoints are completed or cancelled. All

cancelled checkpoints must be authorized and authorization must

be in writing via RCC.

b. All CARs are answered and completed.

c. All Product Verification Inspections are entered and

completed.

d. All Conditions Found Reports have been answered.

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II-20-2

e. All Requests for Contract Change are completed and

settled.

f. Progressing is at 100 percent for each assigned work

item.

g. All Standard Items have been reviewed to ensure

checkpoints are completed or cancelled.

4. Report all exceptions to the Project Manager.

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SBS PROCEDURE 21

Provide Lessons Learned Inputs

Ref: (a) COMUSFLTFORCOMINST 4790.3, Joint Fleet Maintenance

Manual

(b) Fleet Desk Guide FDG 760, Lessons Learned Conference

1. The purpose of this procedure is to provide Lessons Learned

Inputs per references (a) and (b).

2. Lessons Learned are an important part of the repair process!

As work is completed and problems arise, Lessons Learned will

provide both the contractor and supervisor personnel with a

method of avoiding future problems on those areas identified and

documented.

3. Identify any problems which could be considered within the

standard work requirement of assigned work items.

4. Determine if the difficulties are considered unique or could

cause ongoing problems each time this work is accomplished.

5. Make recommendations concerning future prevention.

6. Create Significant Event Log entries for each problem area

identified, listing the problem and the recommended fix. Do not

list personnel or contractor names in your write up! Lesson

Learned are for the processes only. Be specific and recommend

fixes based on the process problem only!

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