Commercial Off the Shelf Ships for Naval Applications. By Peter Lucey Director Planning, Major Surface Combatants

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1 Commercial Off the Shelf Ships for Naval Applications By Peter Lucey Director Planning, Major Surface Combatants

2 Disclaimer The information contained in this presentation is the opinion of the Author and in no way represents the view of the Department of Defence, Australia.

3 Outline Background The need to reduce costs Acquisition Issues Cost vs capability Platform Considerations The Tanker War Payload Considerations Integration Issues Conclusion

4 Background COTS ships for Naval applications is not a new concept. What is new is: The cost of naval vessels is increasing significantly Commercial ships can be built to Naval standards using Naval Vessel Rules (NVR) without significant costs increase. Advances in technology from the commercial market can provide significant capability (ie logistics software, PC software) Capability can be defined in time to market.

5 Background (cont.) Commercial ships have been used for years for Naval applications. HMAS Jervis Bay used by the RAN The Royal Navy developed the use of container ships as aircraft carriers, which had proven successful in the Falklands.. Commercial ships in the support Navy Auxiliaries, Oceanographic, hydro-graphic ships Significant funds supporting fast cargo ship designs

6 Acquisition Issues For Small Navies Constrained budgets while sustaining: a shipbuilding program Need to produce a new ship every two years to remain viable and maintain a fleet of 15. Need to maintain expertise Technology development very expensive COST vs CAPABILITY or is it really all about cost Acquisition reform means better, cheaper, faster Capability can be time to market

7 Where the New Ship Dollars Go Major Surface Combatants PAYLOAD 55% AAW System 23% ASUW System 42% EW System Electronics ASW Communications R&D and support is not included. Approximately 30% of payload and 30% of platform costs cover integration and engineering services. Data Source: Association of Scientists and Engineers 28th Annual Technical Symposium, 11 April 1991 PLATFORM 45% Electric Plant 9% Auxiliary systems outfitting & Furnishing 22% Integration eng 12% Assembly Support 16% Hull and Structure 10% Armament 2% Command and Surveillance 8% Propulsion 21%

8 Shipbuilding - Upgrade or Replace Upgrade vs New ship construction Cost of upgrade vs cost of replacement equates at about 15 years. Costs driven by Production line advantages usually not available for upgrade Rework is significant, Paints, vents, lighting, cooling water, flooring, pipes and cables, access difficult Obsolesce issues. Margins limited to about 10% Payload as a percentage historically increases over time as the systems are upgraded The cost of the payload aboard surface combatants platforms comprises the majority of the ships end cost

9 Platform - Considerations Survivability Goal Hard to Find, Hard to Hit, Hard to Kill Requirements To ensure the ship can stand and fight in a combat environment Design redundancy separation and protection Prepare for the cheap shot USN Cole

10 The Tanker War In 1984 Iraq expanded the so called tanker war by using French combat aircraft armed with Exocet missiles Seventy-one merchant ships were attacked in 1984 alone. The total attacked by Iranian forces during the war was ships lost beyond economical repair.

11 Containerised Systems Why Containerise flexibility for mid life upgrades reduce integration costs ease in construction In particular as found the US Arapaho System: premanufactured, modular equipment designed to enable merchant vessels to support military helicopters. ANZAC ship has adopted a containerised methodology for parts of the combat system Provides ease at construction Difficult for upgrading Sea Sheds suitable for modularisation

12 Product line of ships The Airline Industry has adopted standard cockpits and standardised airline components to reduce training and infrastructure cost for the commercial airlines Multi-Mission Cargo Liner Kvaerner Masa Marine - The design series have common bows, engine room/sterns, and deckhouses. Configuring the parallel mid-body with 5, 6, or 7 cargo hold modules enables a range of cargo capacities to be met. This systems based design approach using mid-body hold modules and provides shipowners and shipyards with a flexible design with minimal design cost.

13 Payload - Considerations Architecture Defense Information Infrastructure Common Operating Environment (DII COE) Plug and play but not yet GOTS Government off the Shelf Systems Aegis Combat system fully integrated SaabTech Vectronics 9LV 453 Mk 3 combat management system

14 Elements Suitable for Containerisation: SM-2 (MK-41 VLS) ESSM (VLS Mk 41) Harpoon Mk 45 Gun Mk 15 Block 1A CIWS Active Missile Decoy (AMD) Decoys (Mk 137 Launcher) SRBOC/SeaGnat RF Decoy LeScut Acoustic Decoy IR Decoy AN/SPS 49A(V)1 Air Surveillance Radar AN/SPS 55 (MOD) Surface Surveillance Radar

15 A Comparison Naval vs COTS Ships Fast Container Vessel Main Data: Length overall m Breadth moulded m Tonnage approx. 9,950 GT Accommodation: 16 persons Main Engine: 2 x 16,800 kw engines Auxiliary Engines: 1 Shaft generator 1,100 kva 2 Diesel generators each 568 kva Speed: Service speed approx kn at design draught (90% MCR) at about 138 tons per day Other Outfit: 1 Bow thruster 685 kw 1 Stern thruster 735 kw Main Data Length Overall 135m (453 Feet) Breadth Tonnage 4,100 Tons Accommodation Crew 206 Officers plus enlisted Main Engines 14.0m (47 Feet) Two General Electric LM2500, Gas Turbines (30,000kW) One Controllable Pitch Propeller Auxiliary Engine: Two262kW Electric Drive Auxiliary Propulsion Units Four 1000 Kilowatt Ship's Service Diesel Generators Speed: Service Speed FFG-7 Class Ship 30+ Knots

16 Commercial Logistics Support Available on Commercial Ships Status of surveys for classed ships digital documentation of drawings hull maintain systems Maintenance management records Financial reporting Purchasing Inventory control Infrastructure management - appropriate certificates and training

17 Integration Issues Buy the Ship from the cheapest supplier. Built to Classification Society Standards. Utilize Naval vessel rules generated by classification societies. By GOTS fully integrated combat systems Effectors N U L S H K M A A -1 R /P ) -2 LEGEND -2 Effectors Sensors Command and control Utilize modular systems where ever possible E S S MK M 32 SVTT Command and Control

18 Integration Issues (Cont) Integration is not simple and includes elements such as: Maintenance optimisation Stores handling Habitability Layout and ships size Survivability and Damage Control Navigation and Integrated computing Containerised systems

19 COTS vs Built to Requirement Traditional Model Structured Approach COTS Model Object Oriented Requirements Design & Architecture Requirements Market Trade-off Design & Architecture Implementation

20 Typical Ship Build Schedule Months Main Event Hull Contract Hull Drawing Cut Steel Cut Steel Keel Lay Light off and Checkout Delivery Hull working and Fab DWG MachineryElect DWG Arrangement DWG Block Assembly, General Outfitting Propulsion Installation System Test Sea Trials Harbour Trials Manufacturing DWG Combat System Combat System Manufacturing, and delivery Test and acceptance Contract Integration Activity Delivery

21 Conclusion The amount of money for new ship construction is declining. Average unit costs are on the rise as we try to build more capable ships Increased emphasis on affordability Look to areas where ROI is most significant Faster and Cheaper Delivery in 2-3 years Commercial Hulls costs 10% of the Navy Hulls Commercial hulls for Naval application may be the way ahead to achieve significant savings.

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