Lessons Learned: How NASA turned its Legacy WB-57 Program into a Successful Reimbursable Program

“Success is not final, failure is not fatal. It is the courage to continue that counts.” - Winston Churchill

Lessons Learned: How NASA turned its Legacy WB-57 Program into a Successful Reimbursable Program Breakout Session Name Scott A. Stephens, Contracting Officer, Mission Operations Office Kevin J. Lesenski, Deputy Program Manager, WB-57 Program Office NASA Johnson Space Center, Houston TX Date Thursday, October 11, 2012

Executive Summary How NASA turned its Legacy WB-57 Program into a Successful Reimbursable Program Overview: WB-57 Program, History and Operations Four Critical Lessons Learned Questions

Mission Statement The NASA WB-57 Program provides unique, high-altitude airborne platforms to US Government agencies, academic institutions, and commercial customers in order to support scientific research and advanced technology development and testing at locations around the world.  Mission examples include atmospheric and earth science, ground mapping, cosmic dust collection, rocket launch support, and test bed operations for future airborne or space borne systems.

The Aircraft

Capabilities Day and night, global operations Endurance: 6+ hours Max Altitude: 60,000 + feet Payloads: > 8,800 lb. Nose, Pallet / Bomb Bay, Spear Pods (2x), U-2/ER-2 Superpods (2x) Payloads Range From: Complex Single Instruments Weighing Several Tons Many Small Instruments Working Independently

History English Electric Canberra 1944 British Air Ministry RFQ + English Electric design 1949 First Flight, retired 2006 (RAF) Glenn L. Martin B-57 Canberra / Night Intruder Built under license 1953 – 1957 Flew missions during the Vietnam War General Dynamics RB-57F Canberra High altitude strategic reconnaissance platform First flight 23 JUN 1963 Redesigned “WB” 1968

NASA WB-57 History 1968 – First NASA WB-57 - Earth Resources Technology Satellite (ERTS) program (NASA 925) 1972 – Second NASA WB-57 (NASA 926) 1974 – Third NASA WB-57 (NASA 928). Operated by NASA in support of other US Government Agencies. USAF stands down WB-57F operations 1982 – NASA 925 retired Present Day – NASA 926 and 928 in active service – local and worldwide. NASA 927 being refurbished to return to flight in 2013 (planned)

Reimbursable Business Model WB-57F Program is funded by our customers Customers NASA Airborne Science Government Sponsored Science Academia Other US Government Agencies Commercial Entities WB-57 Program is healthy, flight rate increasing, fleet expanding

Lessons Learned How NASA turn it’s Legacy WB-57 Program into a Successful Reimbursable Program…

1. We Recognized Our Unique Capability We have a Unique Aircraft

1. We Recognized Our Unique Capability We have Unique Authority Authority to self-certify aircraft There is no OEM participation in our Program We do maintenance, operations and certification Good News – We do it Bad News – No one to call for help

1. We Recognized Our Unique Capability We have a Unique Center Most People Do Not Associate Aircraft Operations With JSC JSC Aircraft Fly the Majority of All Flight Hours Flown by NASA JSC Aircraft Fly Complex and Unusual Missions

1. We Recognized Our Unique Capability We have a Unique Kind of Excess Capacity Payloads Range From Complex Single Instruments Weighing Several Tons to Many Small Instruments Working Independently The payloads we fly are limited only by the customer’s imagination…

1. We Recognized Our Unique Capability We have a Unique Team of People Committed to the mission Committed to reimbursable work Big Difference: Government – Get Budget – distribute without skin in the game Reimbursable – Find the work/Find a Budget – skin in the game

1. We Recognized Our Unique Capability What is Unique About You? What do you do? What do you offer? Who is on your team? Where are you located? What is your excess capacity?

2. We Listened to Our Customer They want flight services in support of maturing technologies They want reliable support (when you go to the airport, you want to get on the plane) They want us to make the job of performing their mission as painless as possible They want solutions to their problems In summary: They want Excellent Customer Service!

2. We Listened to Our Customer When talking with a prospective customer consider three questions: Is it legal? Government cannot compete with private industry Is it Safe (or can we make it safe)? What makes it unsafe, what can you do to mitigate risk Can you pay? Remember you are doing this because you have excess capacity

2. We Listened to Our Customer Form Win-Win Agreements with your Customers!!! Relationships are Essential! With Government Services, your customers become your partners We do not enter into contractual or sub-contractual relationships, we enter into agreements (In NASA speak, Space Act Agreements)   MOA-MOU with other Government Entities Space Act Agreements with Commercial Entities

2. We Listened to Our Customer Who is your Customer? What are your customer’s needs, wants, wishes? The Goal is to satisfy the customers needs and as many of the wants and the wishes as you can!

3. We Created a Culture of Commitment Management Buy-in is Essential We can’t do it at all without management buy-in The greater the management buy-in, the greater freedom we have What we do to cultivate management buy-in: We develop a business case that shows the need We don’t bring the boss a problem without a solution Selling excess capacity should relieve budget concerns

3. We Created a Culture of Commitment Support Organization Buy-in is Critical Procurement, Legal, Finance are the big three Also, Facilities, Security, etc. All Internal Agency Support Organizations Each is required

3. We Created a Culture of Commitment Procurement Organizations: Be Responsive (don’t just say no) Put people in place who are willing to be responsive Surround the effort with the right contracts and agreements Collaborate with your reimbursable activity Forecast procurements Solicit financial support for your procurement activity Ask: “Help us help you” – If you want support, show us the money!

3. We Created a Culture of Commitment Procurement’s Goal: Build a “Quick Reaction Capability” Requires: Team Work Excellent Communication Well-Defined Processes Flexibility “Yes We Can” Mentality Always find a way to meet the customer’s needs Commitment to the mission – not just risk mitigation

3. We Created a Culture of Commitment Current Contracts: Cost Contracts NNJ12JC05C – Aircraft Maintenance and Operational Support NNJ11JB28C – WB-57 Special Capabilities Support and Engineering Services Time and Materials Contracts NNJ12JB12B – Aircraft Aeronautics and Structural Engineering Services NNJ12JB11B – Aircraft Mechanical Engineering Services Firm Fixed Price Contracts NNJ11JC84C – WB-57 Aircraft Emergency Egress System Upgrade NNJ11JC14C – WB-57 High Altitude Flying Helmets NASA Interagency Purchase Requests (NIPRs) 13 Active with US Air Force, Navy, Others

3. We Created a Culture of Commitment Current Agreements: One Space Act Agreement Commercial Work Three Memorandums of Agreement (MOAs) Partnerships with Other Government Agencies

3. We Created a Culture of Commitment Support Contractors Maintenance personal and Support staff They must understand that their positions are dependent on the success of the reimbursable efforts  

3. We Created a Culture of Commitment What do you do to create a culture of commitment in your organization?

4. We Learned to Run the Business Identifying Costs Identifying Cost in the Government environment is challenging Identify ALL the Elements of Cost involved Understand each Element of Cost Materials, Labor, Travel, etc.

4. We Learned to Run the Business Actively Manage Costs Manage Cost at the appropriate levels Labor resources must be managed, especially in a cost environment Materials procurement must be done competitively Challenge cost assumptions

4. We Learned to Run the Business Price the Work Develop pricing that covers the TOTAL cost Establish FULLY burdened rates for all activities In Government we are not used to doing this Develop a pricing model that is accurate, sensible, and competitive

4. We Learned to Run the Business Price the Work Sudden Death vs. Prolonged Misery …if you price it too high, you will have no business …if you price it too low, you will die slowly Price Matters! If you don’t buy from me, we both lose money!

Lessons Learned: How NASA turned its Legacy WB-57 Program into a Successful Reimbursable Program 1. We Recognized Our Unique Capability 2. We Listened to Our Customer 3. We Created a Culture of Commitment 4. We Learned to Run the Business

Deputy Program Manager QUESTIONS? Kevin J. Lesenski Deputy Program Manager kevin.j.lesenski@nasa.gov 281.244.9664 Scott A. Stephens Contracting Officer scott.a.stephens@nasa.gov 281.792.7521