

The ships service diesel generator diesel engines on Navy FFG-7 Class ships are no longer in production and the Navy faced escalating support costs due to rising costs associated with replacement parts and obsolescence. A number of improvement alternatives were proposed to address this problem including: procuring spare parts to support the remaining service life of the ships (lifetime buy of spare parts), upgrading the existing diesel engine and replacing the existing diesel engine with a modern diesel engine.
Penderbrook Associates conducted a business case analysis (BCA) to assess the proposed alternatives.
Penderbrook worked in conjunction with various Navy activities as well as industry and developed a cost analysis model to support the project. Sensitivity analyses were conducted using the model to determine the impact of varying costs and other model inputs.
The BCA found engine replacement to be the most beneficial alternative and estimated a lifetime cost avoidance of $43.2M and a return on investment (ROI) period of 4.9 years. The BCA identified additional benefits associated with each alternative including impacts on system readiness, lower exhaust emissions and shipboard labor. The Navy decided to re-engine select FFG-7 Class ships and after actual cost data was available the BCA was updated and resulted in a revised ROI period of 5.4 years and a revised cost avoidance projection of $55.6M. The revised lifetime cost avoidance value is greater than the originally projected lifetime cost avoidance which resulted in additional savings for the Navy. The BCA allowed diesel engine program managers to demonstrate to Navy Leadership, the cost benefit of replacing the diesel engines on FFG-7 Class ships and to obtain the required funds to execute the diesel engine replacement program on additional FFG-7 Class ships.
The Navy implemented a standard methodology for planning, budgeting, engineering and installing shipboard improvements under the Navy Modernization Process (NMP) also referred to as SHIPMAIN. The NMP consolidated numerous ship change and modernization programs under a single navy modernization entitlement process which increases the efficiency of the planning process without compromising its effectiveness. The NMP also provides greater visibility throughout the Navy enterprise regarding proposed ship changes, and includes an effective prioritization process.
Research conducted by Penderbrook Associates showed platform offices spend in excess of $1.8M per year to correct training related deficiencies. Some ship changes impact the training required by shipboard operators and maintainers and lessons learned under the NMP demonstrate impacts to training programs are not adequately assessed upfront and therefore are not budgeted for as part of the cost of the ship change. This results in ships changes being implemented without required changes to the training program or training curriculum which results in increased system downtime and support costs.
Penderbrook Associates is working in conjunction with the NMP Team Members and members of the training community to implement a standardized training assessment and approval process under the NMP to:
The task also involves working in conjunction with Navy platform offices, NAVSEA technical warrants and members of the Navy training community to establish and implement a standardized training assessment and evaluation process under NMP.
Penderbrook Associates demonstrated the capability to integrate training requirements for Naval Sea Systems Command (NAVSEA) systems into the Navy Space and Naval Warfare Systems Command’s (SPAWAR) Integrated Battle Force Training (IBFT) web-enabled software application.
Penderbrook Associates conducted a pilot on two Carrier Strike Groups (CSGs) by placing training requirements for 18 NAVSEA combat and hull, mechanical and electrical (HM&E) systems against CSG surface ships and air craft carriers.
The IBFT application pushes training requirements to each ship based on its unique configuration which is a function of equipment as well as engineering changes installed on the ship. The data is used by ship training officers to identify system and equipment training requirements and in scheduling training for ships force.
IBFT provides details on:
The successful pilot led to a follow on effort of integrating IBFT application functionality into the Fleet Training, Management and Planning System (FLTMPS) application which is the Navy’s Enterprise Training Management Solution (ETMS). Penderbrook Associates supported initial efforts to integrate IBFT functionality into FLTMPS in cooperation with the U.S. Fleet Forces Command (USFFC) and the FLMTPS Program Manager. IBFT functionality was integrated into FLTMPS and has been designated as the Afloat Configuration Manpower, Personnel and Training (ACMPT) module.
Penderbrook Associates has extensive experience in shipboard system maintenance planning and in implementing reliability centered maintenance (RCM) programs on shipboard systems and equipment.
We support clients in developing maintenance concepts and in conducting underpinning RCM analyses such as:
Penderbrook Associates RCM Level II Certified Engineers develop maintenance requirement cards (MRCs) and maintenance procedure cards (MPCs) for various shipboard navigation; hull, mechanical and electrical (HM&E); and combat systems. This includes equipment such as: compressed air systems, fire control systems, air conditioning and chilled water systems, diesel engines, gas turbines, motors, radars, control systems, pumps and hydraulic systems.
Penderbrook Associates RCM engineers and analysts not only have training in maintenance planning, familiarity with MIL-P-24534A requirements and RCM methodologies, but also have prior military shipboard experience which provides them an understanding of the shipboard maintenance environment which must be taken into account when developing an effective shipboard equipment preventive maintenance program.
Our clients are provided the assurance that RCM analyses conducted by Penderbrook Associates result in cost effective and practical preventive maintenance programs.
Penderbrook Associates supported the Naval Sea Systems Command (NAVSEA) Human Systems Integration (HSI) directorate in establishing the commands Surface Ship Training Systems Technical Authority (SSTSTA).
Penderbrook supported development of training program evaluation criteria and participated in training assessments conducted on a number of ship, system and equipment level acquisition and modernization programs.
In support of the SSTSTA, Penderbrook worked in cooperation with members of the Navy extended training community including: U.S. Fleet Forces Command, Naval Air Systems Command, Space and Navy Warfare Systems Command, NAVSEA Program Managers and Participating Managers, training providers, Naval Education and Training Command (NETC), Chief of Naval Operations program sponsors, NETC Learning Centers and Fleet representatives.
In support of the Navy’s Propulsion Executive Steering Committee (PESC), Penderbrook Associates conducted a business case analysis (BCA) to determine the cost benefit of replacing the existing ships service gas turbine with a commercially available gas turbine.
Cost data for the existing DDG 51 Class gas turbine was obtained from a variety of sources including:
The BCA accounted for overhaul periodicities as well as engineering related costs with modernization of the existing gas turbine and costs associated with integration, testing and shipboard qualification of the commercial gas turbine. The BCA also accounted for costs related to fuel, overhauls, spare parts consumption, pilot testing, technical documentation, integrated logistics support, maintenance requirement card development, installation drawing development and planning yard services, interim support, training and special tools.
The BCA was based on a DDG ship Class population of sixty-two ships and assumed each ship will have a service life of 35 years which was consistent with Navy’s Surface Fleet Planning Strategy. The analysis showed that while the commercially available gas turbine is projected to have favorable reliability attributes when compared to the existing gas turbine, the return on investment payback period is in excess of 20 years. Additionally, the analysis projected the cost avoidance to be less than 2% of the lifetime cost of the replacement gas turbine program.
The Navy used BCA results to determine that the cost benefit of replacing the ships service gas turbines on DDG 51 Class ships was not cost effective based on replacement gas turbine program costs, program risks and return on investment attributes.