Recapitalizing the Navy A Strategy for Managing the Infrastructure (1998) / Chapter Skim
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2 Selected Navy Initiatives
2 Selected Navy Initiatives
Pages 16-48
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From page 16... ...
. Because this office sponsors a number of programs specifically with the aim of infrastructure cost reduction, the committee began its deliberations using this office's agenda as a roadmap.
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From page 17... ...
It was very difficult to account for the total cost of the infrastructure resident in the San Diego region. Excluding personnel assigned to ships and to deployable aircraft squadrons, there are 36,000 military personnel and 20,000 Navy civilians in the region.
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Although most of the examples below are drawn from the Southwest Region, the strengths and concerns with consolidation also apply to the Hampton Roads region. Figure 2.1 and Table 2.1 summanze the current status and projected annual savings for the Navy concentration areas in which regionalization and consolidation are to take place.
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From page 19... ...
service delivery Hampton Roads $83 million Analysis complete; LANTFLT implementation in progress. Consolidating 1 1 hosts with regional BOS service delivery Pearl Harbor $18 million Analysis complete; PACFLT implementation in progress.
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Any gains in consolidating management oversight across services would be lost. For the San Diego and Hampton Roads regions, the service providers would be part of a larger organization, and this should allow the shifting of funds.
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From page 21... ...
Seek customer input, and measure customer satisfaction. Establish metrics jointly with customers.
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As currently envisioned in the Southwest Region, base commanding officers (including those at bases being merged into the larger units) will head the departments.
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Currently, the San Diego region plans for ABC do not include the full cost of military personnel. Full cost visibility could help establish fees for service and help facilities manage their operations more efficiently.
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Seek Customer Input and Measure Customer Satisfaction The current suppliers of services are basically shaping regionalization. It makes sense for functional experts in facilities, supply, air operations, and so on, to work on the design of the new organization.
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The goal is to capture a reasonable set of indicators that collectively provide a picture to the regional commander. Examples of some lower-level metrics are as follows: Number of hours an airfield is closed, Number of nested berthings at pier, Square-foot cost to operate and maintain buildings, Elapsed time for repairing problems in housing, Utility costs per square foot of space, Crimes committed at Navy installations, Elapsed time for remedying environmental incidents, and Waiting time for family services.
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From page 26... ...
These leaders must understand the component departments, needs of customers, current technologies, and modern business practices. The Southwest Region has a good share of experienced leaders, but this is unusual given current assignment policies and rotation.
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From page 27... ...
The Navy could also continue to look for opportunities to reduce command structures, by minimizing the number of installation management commands within a Navy concentration area, building on such efforts as the merger of the Naval Amphibious Base, Coronado, with the Naval Air Station, North Island in San Diego, California. The Navy must also continue to overcome the initial reluctance of some activities to divest themselves of personal control over a functional area, in favor of adequate access to regional service delivery organizations.
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From page 28... ...
Real Property Maintenance Despite a reduction in the number of facilities and the average age as a result of base realignment and closure (BRAC) plus an annual maintenance investment approximating $1.0 billion, there remains a critical backlog of maintenance~about $2.4 billion at the end of FY 1997.
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From page 29... ...
Real Estate Ownership At one time, NAVFAC was recognized as the owner of the real estate in the Navy. Now ownership has been transferred to fleet regional or base commanders.
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From page 30... ...
It also decreases the real property maintenance backlog and frees land for other purposes. In an Office of the Secretary of Defense survey, the Navy notes that there are roughly 1,600 buildings involving 10 million square feet of vacant space eligible for demolition.4 Structures other than buildings are also available for demolition.
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From page 31... ...
Metrics will have to be developed that are meaningful to users and will thus motivate them. Southwest Division NAVFAC Regionalization Although NAVFAC is no longer the owner of the real estate and facilities in the San Diego region, it is responsible for the staff support attendant to management of the facilities.
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It may be advantageous to consolidate further as experience is gained with regionalization. Real Property Maintenance for the San Diego Region Prior to the regionalization effort, real property maintenance activities were largely accomplished independently by eight base entities.
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They create a single Navy manager (Fleet Industrial Supply Center [FISC]
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From page 34... ...
Recommendations · Establish a central resource to provide guidance and standards, to promote innovation, and to ensure smart buying of services through the use of approaches such as public-private ventures and privatization of maintenance facilities. · Establish a corporate real property management plan that integrates specific needs with strategic goals, force structure, and budget requirements; that determines occupancy standards and functionality requirements; and that operates on a fee-for-service basis.
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From page 35... ...
report on Navy regional maintenance states. The Navy has reported that more than $8.5 billion of Navy resources was applied in fiscal year 1996 to maintenance programs in support of fleet ships and aircraft.
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Organizational maintenance is done by military personnel on board ships or at aircraft squadrons. While at sea, intermediate maintenance on large ships such as aircraft carriers and tenders is done by military personnel; ashore, intermediate maintenance is done by military and civilian personnel at submarine refit facilities and aircraft and shore intermediate maintenance activities.
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From page 37... ...
Management visibility of maintenance-related costs, including the cost of military personnel, is lacking. · Multiple, unconnected management information systems exist and do not provide adequate data for regional maintenance planning or decision making.
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From page 38... ...
Essentially, the Navy's Smart Card would enable electronic access to personnel records for record keeping, security clearances, travel reimbursement, and so on. As part of its review, the committee visited the Naval Station at Pascagoula, Mississippi, and the Portsmouth Naval Shipyard in Portsmouth, New Hampshire, which are principal installations testing Smart Base initiatives.
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From page 39... ...
The Navy uses Broad Agency Announcements, which invite private firms to submit Smart Base proposals. To date, 200 proposals have been received the largest number dealing with the use of Smart Cards; currently, 21 different initiatives are being tested at Smart Bases.
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From page 40... ...
Failure to Truly Use the Private Sector An unspoken principle underlying the Smart Base project is that inefficiencies result from the lack of applying current private-sector technology. The thought is that putting this technology on bases will bring efficiency and service quality closer to that used in the private sector.
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From page 41... ...
Lack of a Transition Plan for Successful Innovations Overall, the Smart Base project is evaluating many innovative ideas. However, the committee believes that the project will have only a small impact on infrastructure costs because there is no overall plan to extend successful Smart Base initiatives across the Navy shore installations.
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From page 42... ...
Recommendation Both the Office of the Chief of Naval Operations (OPNAV) sponsors and individual participants associated with Smart Base initiatives need to have regional commanders assess the likely importance of these technology demonstrations, and have them support transition mechanisms for those deemed to have high payoff INFORMATION TECHNOLOGY FOR THE 21ST CENTURY AND SMART LINK Currently, there are two rather separate information technology (IT)
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From page 43... ...
Smart Link could also grow at a later point to provide support services afloat. The relationships between Smart Link and IT-21 are unclear to the committee, and the issue of transitioning legacy systems, in general, will require high-level Navy attention.
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From page 44... ...
, re: POM-00 C4I Bandwidth Baseline Assessment Memorandum (BAM) , Office of the Chief of Naval Operations, Washington, D.C., March 18.
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From page 45... ...
Moreover, with no central management of IT, there are limited or no perceived incentives to share, use best business practices, learn from each other, keep track of what hardware and software configurations are used, track how much is spent on personal computers, or obtain the total cost of ownership. There is limited insight into the costs of doing work (e.g., military personnel are viewed as cost-free in many infrastructure areas)
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From page 46... ...
· Information systems used in business and in the Navy infrastructure do not in themselves reduce costs (i.e., they rarely result in an overall net reduction
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From page 47... ...
In the area of infrastructure information content, there is not a clear delineation of responsibilities, authorities, and accountability in the Navy. · Output measures of performance for infrastructure business areas are lacking, and they will be key to defining the content of the information system needed for integrated management of the Navy infrastructure.
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From page 48... ...
48 RECAPITALIZING THE NAVY: A STRATEGY FOR MANAGING THE INFRASTRUCTURE units and commands shows that considerable savings are possible when cultural resistance and parochialism give way to modern business reengineering processes, such action has not been seen across the entire infrastructure. The next chapters treat the implications in greater detail.
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