Thursday, August 18, 2011
Navy Achieves $50 Million Savings in Weapons Procurement on Amphibs
Program Executive Office Integrated Warfare Systems announced Aug. 18 that the command has realized a $50 million savings in procuring weapons systems on new construction amphibious ships in fiscal years 2009-2011.
The cost reduction efforts, which started in early 2010, put PEO IWS on track to support the undersecretary of defense for acquisition, technology and logistics' "better buying initiative" to restore affordability and productivity in defense spending.
PEO IWS generated savings in acquiring combat systems with quantity buys, and not just across amphibious ships. The PEO worked with stakeholders to bundle combat system purchases for LHA 7 and LPD 26 and 27, with other platforms.
"We worked with [participating acquisition resource managers] and other stakeholders to coordinate a single quantity buy," said Capt. Joseph "Ike" Iacovetta, systems integration program manager for amphibious ships. "If you're able to group the buys, you get a reduction. Whether it's going on a destroyer, amphib or a carrier, we all get the reduced cost for the unit."
Cost-avoidance measures were also identified in non-hardware support services, consisting of integrated logistics support, software support and system engineering support. PEO IWS again negotiated requirements to ensure the same combat configuration was maintained across new construction ships to prevent additional costs.
"Applying the same methodologies on cost efficiencies across hulls garnered significant cost avoidances," Iacovetta said. "We were able to recoup those dollars and to get the ship on contract."
PEO IWS is working to establish a systematic approach to apply these cost-saving principles to future acquisitions.
"We meet three times a year with the PARMs to discuss fielding plans and where we're going and our different modernization efforts," said Andrei Sapsai, deputy systems integration program manager. "This is a great forum to discuss schedules, move delivery dates and coordinate funding to procure weapons systems at reduced rates."
PEO IWS, an affiliated program executive office of the Naval Sea Systems Command, manages surface ship and submarine combat technologies and systems, and coordinates Navy Enterprise solutions across ship platforms.