Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard RADM Ron Rábago, USCG Chief Engineer, Assistant Commandant for Engineering and Logistics (CG-4) March 19, 2014 ASNE – Tidewater Chapter Brief US Coast Guard Maintenance Support Transformation

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Naval Engineering Challenges Expanding mission requirements & increased op tempo (more days at sea) Maintaining mission readiness with declining resource environment Bring newer assets into service & integrate their more complex maintenance needs into fleet-wide processes Significantly aging fleet 2

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Service Life (Area Cutters) 3

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard CG Maintenance Support Transformation Represents an overarching strategy to build on our Service's strengths 6-part formula is used to measure progress of logistics transformation - Reorganizing into Product Lines - Building the asset’s Integrated Baseline - Enrolling in the Electronic Asset Log (EAL) - Generating the asset class Allowance List - Centralizing Maintenance Funds - Pushing Parts to the Fleet 4

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Product Lines Organized Into CG Business Model Product Line Management - Keystone of 4 Cornerstones SFLC Product Lines are organized around the Business Model 5

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Product Line Fleet Support Model FLEET SUPPORT REQUEST Engineering Branch Std Cutter/Boat Config + Changes Maint. Procedures & Casualty Repairs Maintenance Cost per Operating Hr Supply Branch Inventory Management Requisitions & Replenishment Program Depot Maint. Br Availability Planning Availability Execution SFLC PRODUCT LINES - Single Fleet Touchpoint; - Manage all Maintenance Funds SHARED SERVICE DIVs - Subject Matter Experts - Set Std Processes for PLs  Asset Logistics;  Business Ops;  Procurement  Industrial Ops;  Engineering Services;  Procurement  Engineering Services;  Business Ops;  Procurement Product Lines interface with the Fleet Shared Service Div’s support Product Lines 6

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Pace of Integration 7

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Knowledge Management (Officer / Enlisted / Civilian) NAVAL ENGINEERING OFFICERS: - Depot maintenance planning, supply support, engineering services, business operations, metrics, & contract management ENLISTED: - Organic tech reps, maintenance augmentation teams, engineer petty officers, & Command Master/Senior Chiefs CIVILIANS: - SMEs Naval Arch & Marine Engineering, future tech warrant holders, & geographically distributed workforce 8

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Centers of Excellence U.S. Coast Guard Yard - Organic Ship Repair and Overhaul Facility National Industrial Enterprise - Predominantly Civilian Workforce Providing Depot-Level Support to Meet Operational Requirements & Contingencies for Surface and Shore Assets, & Aids to Navigation Project Resident Offices - Technical Authority - Ship Design Team 9 9

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Product Line Focus - Maintenance Cost Per Op Hr* (* Note: MCPOH ≠ Total CPOH) Primary Purpose: Determine when the rising cost on maintenance justifies SLEP or recapitalization of an asset (AKA: “bathtub curve”). As assets get older they cost more to maintain. Primary Purpose: Determine when the rising cost on maintenance justifies SLEP or recapitalization of an asset (AKA: “bathtub curve”). As assets get older they cost more to maintain. 10 Years in Service Maintenance Cost Per Op Hour

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Actual MCPOH 11

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Results of Maintenance Support Transformation Better mission support enterprise - Product Line Management CFO Audit unqualified opinion in “Clean bill of Health” Improved contracting Multi Award Task Order Contracts (MATOC) & Multi Year / Multi Ship (MYMS) / Indefinite Delivery / Indefinite Quality (IDIQ) contracts in FY10-13 Meaningful metrics - SFLC Annual Report 12

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Way Forward On Transformation Increased centralization of funds Improved metrics to enable better decision making Strengthen & mature Product Line Management across the fleet & other Mission Support elements More efficient enterprise management Smooth Transition Acquisition to Sustainment 13

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Fleet Sustainment & Modernization Non-linear Finite Element Analysis –define loading capacity of deformed, corroded hull structure Operator Guidance System –display real-time quantitative data on hull deflection/stress for risk analysis 3D Laser Scan –survey local & global hull deformations In Service Vessel Sustainment –WMEC, WLB, WTGB, MLB New Acquisitions –NSC, FRC, OPC, RBM 14

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard In Service Vessel Sustainment Mission Effectiveness Program (MEP) 270’ WMEC Midlife Maintenance Availability (MMA) 225’ WLB 87’ WPB Service Life Extension Program (SLEP) EAGLE (67 years) 140’ WTGB (34 years) 47’ MLB (17 years) 15

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard New Acquisitions CGC Bertholf CGC Waesche Commissioning Timeline 418’ NSCs – 3 delivered 154’ FRCs – 7 delivered OPC Phase 1 Award Feb 2014 RBM 147 out of 170 delivered 2016 CGC Stratton NSC 4 FRC 7 NSC 5 FRC 1 FRC 2 FRC 3 FRC 4 OPC Continuous Recapitalization NSC 6 FRC 5 FRC 6 16

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Polar Star Reactivation Project USCGC POLAR STAR (WAGB-10) conducting ice-trials in the Arctic post-reactivation (August 2013) 17

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Reactivation Project Overview  POLAR STAR was at the end of her service life (Commissioned in 1976) and in caretaker status since  $90 million, 3-year industrial project executed through a Multi-Ship Multi-Option (MSMO) contract with Vigor (formerly Todd Pacific) Shipyards in Seattle, WA.  Major upgrades to propulsion, auxiliary and mission systems; and completion of more than 5-years of backlogged maintenance. POLAR STAR entering Vigor Shipyard dry-dock (January 2011) 18

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Polar Star’s Hull USCGC POLAR STAR entering drydock after 3 years with no maintenance; 4% of coating replaced. 19

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Major System Upgrades  Main Diesel Engine Upgrades & Repairs.  Main Gas Turbine Digital Fuel Control System Upgrade.  Main Motor Cleaning.  Main Gas Turbine Renewal.  Reduction Gear Inspection & Repairs.  Machinery Control and Monitoring System (MCAMS) Upgrade.  Open Loop Controllable Pitch Propeller (CPP) System Conversion.  Aft Stern Tube Bearing Redesign & Renewal.  Gyro Compass Upgrade.  Central Hydraulics System (CHS) & Cargo Cranes Renewal.  Small Boat Davit Renewal. 20

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Polar Star Before Icebreaking Picture 21

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Polar Star After Icebreaking Picture 22

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Sentinel Class 23

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Original Prop Swirl and Rudder 24

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Redesigned Skegs & Rudders 25

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Redesigned Skeg From Starboard Side 26

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Stern Flaps & Spray Rails 27

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Stern Flaps & Spray Rails 28

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Modified Propeller Swirl & Wake Adapted Rudder 29

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Modifications Rudder Re-Design - Wake adapted approach Stern Flaps & Spray Rails % fuel savings (OP) Wake Adapted Skegs - 1.5% to 2.0% increase in hull efficiency Propeller Re-Design - Modify pitch & camber to avoid ERPM limitations Annual Savings - $96K per Cutter per year Flank speed increase - From 28.9 to 32.9 knots 30

Assistant Commandant for Engineering and Logistics (CG-4) Homeland Security United States Coast Guard Questions? 31