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

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

2. 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

3. 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

4. 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.

5. The Aircraft

6. 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

12. 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

13. 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)

14. 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

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

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

17. 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

18. 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

19. 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…

20. 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

21. 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?

22. 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!

23. 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

24. 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

25. 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!

26. 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

27. 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

28. 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!

29. 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

30. 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

31. 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

32. 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

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

34. 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.

35. 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

36. 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

37. 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!

38. 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

39. Deputy Program Manager
QUESTIONS?
Kevin J. Lesenski
Deputy Program Manager
Scott A. Stephens
Contracting Officer