Code 200 Husbanding Contracting at FLC Norfolk…Taking Acquisition Reform by the Horns!

By Lt. Maynard K. Lee

Over the past two years, a military and civilian team at NAVSUP FLC Norfolk worked diligently to put two firm-fixed price, indefinite-delivery/indefinite quantity (IDIQ) multiple award contracts (MAC) in place to provide husbanding support services across the CTF-80 and 3rd, 4th and 7th Fleet AORs. In April, a team led by Terri McGeein, NAVSUP FLC Norfolk, fleet division director; Lt. Cmdr. Carrie Paben, husbanding supervisor; and Richard Mateljan, lead contract specialist, saw the results of their hard work when the second of two husbanding support MACs, the Americas contract, performance began.

USS Kearsarge (LHD 3) arrives at Fleet Week New York 2017 escorted by tugs coordinated by the FLC Norfolk Husbanding team, who will also support this year’s Fleet Week in NYC. –photo is courtesy of PAO Navy Region Mid-Atlantic

 

The Americas contract is a $235 million effort providing husbanding support services to U.S. Ships (USS), U.S. Naval Ships (USNS), and U.S. Coast Guard Cutters (USCGC) visiting non-U.S. Navy ports located along the continental west coast of the United States, Canada, Mexico, Commonwealth of the Northern Marianas Islands, Caribbean, Panama, Bermuda, South America and Central America. Nine vendors received the award in which their services cover some or all of the nine regions. More importantly, each region will have at least three of the nine vendors competing to win husbanding support requirements for visiting ships.

Less than a year earlier, NAVSUP FLC Norfolk awarded an $88 million MAC in support of husbanding services for ships visiting non-U.S. Navy ports within the continental east coast of the United States (ECONUS), the Great Lakes region, and all eastern U.S. territories (i.e. Puerto Rico, U.S. Virgin Islands). The three vendors who were awarded this contract will compete among themselves to win firm fixed-price task orders and provide non-commercial husbanding support services on a port-by-port basis. Both recently awarded contracts include a five-year ordering period with an optional six-month extension.

Pictured from left to right: NAVSUP FLC Norfolk Husbanding Contract Team. Back row–Lt. Tim Landry, Stuart Davis, Terri McGeein–fleet division director, and Lt. Jesse Gale. Front Row–Lt. Cmdr. Carrie Paben, husbanding team supervisor. Not pictured: Richard Mateljan, lead contract specialist. –photo taken by Jim Kohler

 

Historically, husbanding services were supported via a single award IDIQ contract or a single stand-alone contract in regions not covered under the IDIQs. For NAVSUP FLC Norfolk and its partner FLCs (Jacksonville, Pearl Harbor, San Diego, Bahrain and Puget Sound), this required the meticulous management of numerous IDIQ and single stand-alone contracts covering all of the areas mentioned. This former acquisition method resulted in limited-to-no competition among vendors, inconsistent pricing for similar services in various ports, and longer lead times to fulfill ship requirements.

The pioneering efforts led by NAVSUP FLC Norfolk Code 200 mirror the most recent acquisition reform initiatives published by the National Defense Authorization Act (NDAA), which advocates for faster and more efficient acquisitions. Under the ECONUS MAC, NAVSUP FLC Norfolk has already been able to improve processing time to 23 days or less after the receipt of the requirement via a standardized logistics requirement (LOGRE Q). Establishing consistent lines of communication and rapport with the vendors is a significant factor in this reformation process. The implementation of competing for requirements has ultimately driven down costs to the government, as each vendor vies to be the lowest bidder on each task order request.

Under the newly awarded MACs, the government has increased oversight of contractor and ship’s business interactions by utilizing a three-pronged administrative procurement review system. A ship submits a finalized DD Form 250, Material Inspection and Receiving Report, prior to the contractor submiting an invoice for services provided. The transactions between the ship and the contractor are heavily scrutinized by NAVSUP FLC Norfolk. This examination answers questions such as: Are the contractors doing what we’ve paid them to do? To what extent are the ships satisfied with the customer service? Are we getting fair and reasonable deals? How effective is the contractor at fulfilling ship requirements? This examination is crucial to ensuring tax dollars are spent in an appropriate manner.

Overall, NAVSUP FLC Norfolk’s efforts, combined with those of NAVSUP FLC Sigonella and NAVSUP FLC Yokosuka are ensuring the fleet has effective and efficient husbanding support in any corner of the world.

Summer 2018