Page 25: of Marine News Magazine (June 2024)

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Column

A New Era • Allowing all involved parties competitive shipbuilding workforce.” ensures clarity on schedule, cost the ability to focus on their In addition to the Navy, the U.S. and performance.

expertise, in particular the Coast Guard is focused on vessel con- As noted above, TOTE Services’ shipbuilder; struction with the recapitalization of contract with the Maritime Admin- • Identifying and empowering a certain ship classes. istration (MARAD) for the ? ve NS- VCM to drive accountability, Vessel construction management MVs highlights both the opportunity timeline and budget goals; can expand shipbuilding efforts in the and success for VCM to support U.S. • Expands the number of United States that, in return, bolster shipbuilding. As part of this process, available shipyards that can the broader domestic maritime sector. TOTE Services managed the NSMV compete for government In addition, it results in bene? ts to the design and building through critical shipbuilding; taxpayer, resulting in projects that are partnerships with naval architects

In the case of TOTE Services’ on budget and on time. and Philly Shipyard. The NSMV

NSMV VCM contract, this model In its recent report, the GAO also contract included a ? rm ? xed-price has delivered the ? rst vessel on time noted the importance of leveraging contract, fully designed vessel and and on budget (within 1%), with commercial expertise and processes little room for change orders. Fur- the remaining four vessels currently when designing and building ships for ther, the commercial experience was scheduled for delivery over the next the Navy. The report highlights that: leveraged to manage risk and po- two years. • Commercial ship buyers and tential delays across the multi-year

At times, past government vessel builders have a shorter and program including throughout the construction projects have surpassed more predictable time for COVID-19 pandemic and resulting budget estimates by upwards of ship construction; supply chain challenges. 30% while also experiencing signi? - • Leading practices are able to It’s time for the U.S. to fully em- cant delays in construction as high- successfully manage the brace VCM and leverage the ex- lighted in a May 2024 report by the shipbuilding process which pertise and bene? ts of this model.

Government Accountability Of? ce includes meeting the These partnerships and collabora- (GAO). customer’s needs; tion are good for all aspects of the

While not all government-run ves- • Commercial focus on maritime sector, national security sel construction projects face these ? nalizing the ship design and the taxpayer.

challenges, utilizing the VCM model provides a strategic opportunity for partnerships that leverage existing knowledge and expertise throughout the shipbuilding process.

Recently, the Secretary of the Navy,

Carlos Del Toro, noted during a speech at Harvard’s Kennedy School that the shipbuilding and commercial infrastructure is critical to U.S. na- tional security and also it is critical to “invest in commercial shipyards here in the U.S., modernizing and expand- ing our shipbuilding industrial ca- pacity and creating a healthier, more www.marinelink.com MN 25|