Shipyard Infrastructure Optimization Program (SIOP)

Published: April 12, 2019

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The Naval Sea Systems Command (NAVSEA) PMS 555 held an Industry Day event on April 8, 2019 at the Washington Navy Yard to foster industry ideas regarding the Navy’s Shipyard Infrastructure Optimization Program (SIOP). The main message was to highlight information regarding the plan to improve the Navy’s four public Shipyards: Norfolk Naval Shipyard (NNSY), Portsmouth Naval Shipyard (PNSY), Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNSY & IMF), and Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility (PHNSY & IMF). The presenter was the Program Manager of PMS 555, Mr. Steven Lagana. The SIOP will focus on three major areas for each of the four public Shipyards:  Dry Dock Recapitalization, Facility Layout and Optimization, and Capital Equipment Modernization and Location Optimization.

Dry Dock Recapitalization investments are needed for the dry docks that support USS GERALD R. FORD Class, USS VIRGINIA Class including VIRGINIA Payload Module variants, as well as seismic and flood protection enhancements. This investment plan will look to restore 67 of the 68 planned maintenance periods, which would otherwise have to be rescheduled due to dry dock obsolescence. The only plan that will not be restored under this program is a submarine inactivation.

Facility Layout and Optimization investments are needed to improve the Naval Shipyard production facilities. The average condition of the four shipyards has a rating of 66 (poor), while the Navy standard is a rating of 80.

The ratings for each Shipyard:

  • NNSY had a failing condition rating of 59
  • PHNSY & IMF had a poor condition rating of 67
  • PNSY had a poor condition rating of 66
  • PSNSY & IMF had a poor condition rating of 73

Capital Equipment Modernization and Location Optimization investments are needed to modernize the Naval Shipyard capital equipment. The average age of the equipment at the four Shipyards is 24 years. The Navy’s goal is a 10 year average age.

The average age of the capital equipment for each Shipyard:

  • NNSY had an average age of 29 years
  • PHNSY & IMF had an average age of 19 years
  • PNSY had an average age of 17 years
  • PSNSY & IMF had an average age of 21 years

The estimated cost of this program is $21B over 20 years. Allotments are as followed: Dry Docks $4B, Facilities Layout and Optimization $14B, and Capital Equipment $3B. The Navy’s goals of completing the SIOP projects are slated to improve fleet readiness, recover wasted man hours/days, gain 10% efficiency, and to ensure on-time delivery of ships back to the fleet. There are three phases to the program: 1) Review of infrastructure problems at the yards. 2) They are currently in this phase, which will last roughly 24 months. Modeling and Simulation, build a digital twin of each Shipyard. 3) Prioritize, develop, and execute the projects. The event slides will be provided within 10 days of the event.

The presenter, Mr. Steven Lagana informed the attendees that an RFI will be coming out following the event to foster industry ideas regarding the four public shipyards. Project tracking can be found in GovWin under Opp ID #178686.