Maritime Reporter, August 1984

<BODY> <div> New IMA Report Available Analyzing U.S. Navy Overhaul Market The U.S. Navy has budgeted over $6 billion for ship repair and alteration in 1985. Between 30—40 percent of this budget will flow through commercial shipyards. This is an obviously interesting mar- ket. It offers many business oppor- tunities to shipyards and equip- ment manufacturers. It is also a complex, dynamic market. Current Players—Navy owns and operates eight naval ship- yards, three ship repair facilities and a variety of specialized repair depots. These facilities employ about 100,000 workers and per- form about 65 percent of the ship maintenance. The remaining 35 percent is shared by about 30 com- mercial shipyards. Numerous firms are involved in refurbishing equipment and supplying new components. Projected Market—The proj- ected 1985 budget for Navy ship maintenance is an increase of 45 percent over 1982. Overhauls de- crease from 63 to 56, but projected selected restricted availabilities and phased maintenance availabilities greatly increase. MSC's maintenance and altera- tion budget has grown from $240 million in 1983, to a proposed $319 million in 1985. Over 35 ship ov- hauls are planned over the next 12-18 months. Maintenance Strategy—The traditional practice of taking a ship out of service for a 5-20 month overhaul every 3-5 years has changed. In its place are three new maintenance approaches: • engineered/extended oper- ating cycle—which provides for extending overhaul inter- vals to 5-8 years, with short depot availabilities scheduled between overhauls • progressive maintenance— which essentially aims to eliminate the need for on- board maintenance and regu- lar overhauls by scheduling frequent servicing at special- ized maintenance facilities • phased maintenance—a newly introduced concept which uses maintenance ap- proaches found in commercial shipping firms Market size, its composition, and geographical distribution of oppor- tunities have greatly altered as a result of these new maintenance approaches. Managing An Overhaul—It is a very complex activity with many players. The planning process be- gins 18—24 months before the overhaul is to start. Numerous or- ganizations within Navy get in- volved. The Office of Naval Oper- ations coordinates the planning. Fleet Type Commanders deter- mine repair requirements for spe- cific ships. Ship modernization is managed by the Naval Sea Sys- tems Command. Eight naval ship- yards, sixteen SUPSHIP offices, and five specialized repair plan- ning offices provide the engineer- ing support. MSC's ship maintenance plan- ning is much less complex. Its ap- proach is similar to commercial practice. Planning starts 2-4 months before the overhaul is scheduled. Contracting Policies—Deci- sions concerning homeport policy, private sector allocation, small business set-asides impact heavily on the size of potential market. They determine the amount of work available to prospective bid- ders, and who will be eligible to bid. Qualification—To repair Navy ships a firm must execute a mas- ter ship repair agreement. More than 140 firms have such an agreement with NAVSEA, and over 200 have agreements with MSC. Eight firms have master ordnance repair contracts. Foreign Firms—There is no prohibition against foreign firms repairing Navy ships. Certain technical requirements create ob- stacles, and special restrictions have been applied to specific situ- ations. Among the top contractors to MSC are several foreign firms. A complete review of this com- plex, interesting market is con- tained in a July 1984 report by In- ternational Maritime Associates (IMA). The entire subject is cov- ered in a tightly written, factual marketing guide. The report is 175 pages. It contains numerous tabulations, explains contracting procedures and recommends con- tacts to follow up for marketing. The report is available for $480. This price includes a subscription to four quarterly updates to be published over the next 12 months. Scheduled Overhauls Scheduled Restricted Availabilities Phased Maintenance Availabilities Ship Alterations Intermediate Maintenance Other Maintenance Totals No. 63 57 0 FY 1982 Budget (in billions of $) $2.2 .9 .2 .3 $4.4 No. 56 98 19 For more information contact James R. McCaul, International Maritime Associates, Inc., 1800 K Street, N.W., Washington, D.C. 20006. Renk Opens New Plant In South Carolina — Literature Available To meet the increasing demand for Renk products and service in the U.S., Renk AG of Augsburg and Hannover, West Germany, announces the opening of Renk Corporation, an independent American manufacturing facility in Duncan, S.C. For more than 100 years, Renk has manufactured special-purpose gear units, bearings, and drive elements. Renk Corporation sup- plies gears for marine applica- tions, energy plants, cement mills, rolling mills, and the chemical in- dustry. Transmissions are pro- vided for military applications, off- highway construction equipment, and buses. For custom-engineered machines, electric machines, heavy- duty fans, turbocompressors, and horizontal water turbines, Renk offers various bearings. Renk AG, with four plants and more than 2,000 employees in Eu- rope and North America, manu- factures gears, bearings, and transmissions for the major capi- tal goods industries worldwide. For many years, the company has been a member of the GHH, the largest mechanical engineering group in Europe. For further information and free literature on Renk products, Circle 59 on Reader Service Card $11.1-Million Contract Awarded BIW For The Overhaul Of USS Page Bath Iron Works Corporation, Bath, Me., is being awarded an $11,194,527 firm-fixed-price con- tract for the regularly scheduled overhaul of USS Page (FFG-5). The Naval Sea Systems Com- mand, Washington, D.C. is the contracting activity. FY 1985 (proposed) Budget (in billions of $) $2.8 1.2 1.5 .4 .5 $6.4 In Naval Architecture and Marine Engineering WHAT DOES A TECHNOLOGY MANAGEMENT CONSULTANT DO? Advances technology and productivity in shipbuilding and repair operations As one of the world's foremost management and technology consulting firms, Booz.Allen is at the forefront of solving shipyard problems. You will assist commercial shipyards in the areas of market strategy, program management and operations improvement. This includes the implementation of advanced ship- building methods and technology modernization, pro- ductivity enhancement, and operations integration. ()ur Arlington, Virginia facility has excellent oppor- tunities for Naval Architects, Marine Engineers and other engineering disciplines, or MB As who have ten years' experience in ship engineering, construc- tion. overhaul and/or shipyard and productivity plan- ning. You must be innovative and be able to utilize state-of-the-art technology to solve a wide range of shipyard operational problems. As an important member of the team dealing with senior managements of l'.S. and international shipyards, you must also be capable of working independently. It would be to your advantage if you were known throughout the ship- building community. In addition to high visibility, extensive client contact and travel, we offer excellent compensation, outstand- ing benefits, and the oppportunity for career growth and achievement. Find out more, by sending your resume and salary history to: Dan Perkins, Booz.Allen & Hamilton Inc., Crystal Square 2. Suite 1100, 172o Jefferson Davis Highway, Arlington, YA 22202. An Equal (Ipportunity Employer BOOZ ALLEN & HAMILTON INC Professional excellence...make a practice of it. August 1,1984 Circle 105 on Reader Service Card 55 </div> <span id="lblContents"></span> <br /> <br /> <a href="http://www.digitalwavepublishing.com/" title="Digital Magazine">Digital Wave Publishing</a> </BODY>