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I MARCH 1984 23 Still Serve in Wooden Ships Today’S Navy

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I MARCH 1984 23 Still Serve in Wooden Ships Today’S Navy - .-** 1 .- 1984 in this issue ~~____ Capital Concerts Spare Parts Pricing USS Shenandoah (AD 44), the Navy’s newest destroyer tender and fourth ship of the Yellowstone destroyer-tender class, was commis- sioned recently in a ceremony attended by many residents, officials and representatives of Virginia3 Shenandoah Valley and Shenandoah National Park. The new tender, which can accommodate a crew of 1,595, is 641 feet long. It is the fifth Navy ship to carry the name Shenandoah. Chiefof Naval Operations: ADM JamesD. Watkins r Chief of Information: COMO Jack A. Garrow CO Navy Internal Relations Act: CAPT John A. Martin Director NlRA Print Media Div: LCDR Keith Maynard ” 2 GETTING A HANDLE ON SPARE PARTS Navy seeks lower prices through competition 10 STILL MAKING GOALS And still working for the Navy team Page 12 14 ROUTE TO REHABILITATION How one man’s determination paid off for the Navy 19 CAPITAL CONCERTS Winter, spring, summer, fall-the Navy Band plays for all 24 WOODEN SHIPS STILL SERVE Naval Reserve Force minesweepers are tough ships 26 MY DAD‘S IN THE NAVY Seeing the Navy from another viewpoint 30 BUILT WITH CHILDREN IN MIND Child-care center at NAS Lemoore emphasizes quality care 38 LAYING IT ON THICK Deck force on ARD 5 is ready for anything 44 REFUELING A BATTLEWAGON USNS Mispillion (T-A0 105)takes care of the big one 46 SHIPS WITH WINGS Page 26 Pegasus-class hydrofoils Departments 34 Bearings 48 Mail Buoy Cover A summer evening sky isreflected in the waters of the Tidal Basin as theUS. NavVs jazz band, “The Commodores,” performs at the Jefferson Memorial in Washington, D.C. Inset on back cover shows Oboist MUC Jerry Lewiswarming up. Photos by PH2 Perry Thorsvik. Managing Editor: Joanne E. Dumene. Associates: Richard Hosier (Layout), Michael Tuffli (Art). Contributing Staff: JclC(SW) Fred Klinkenberger Jr., JOI Dale Hewey, JOI J.D. Leipold, JOI Gary Hopkins, JOI William Berry, KennethJ. Rabben, Marge Holtz, J02 Russell Coons, JOP(SW1 E. Foster-Simeon. Research: Elaine McNeil, Candace Sams. Production: LT DeAtley H. Cotton, DM2 John P’Angelo, PH2 Liz Schading, PH2 Perry Thorsvik, Karen L. Nelson. A// Hands is published from appropriated funds by authority of the Navy Internal Relations Activity in accordance with Navy Publications and Printing Regulation P-35. Secondclass postage paid at Philadelphia, Pa., and additional mailing offices. Articles, letters and address changes may be forwarded Page 38 to the Editor, A//Hands,Hoffman No. 2, 200Stovall St. Alexandria, Va. 22332. Phone (202) 325-0495; Autovon 221-0495; Message: NAVINRELACT WASHINGTON DC BOSS Program Getting a Handle On Spare Parts A 4-cent diode cost the Navy $110. A formed a special unitto prosecute defense- help the Navy save millions of dollars on 67-cent bolt was priced at $17.59. A $15 related fraud. ’ ’ the spare parts bill. It affects everyone in claw hammer was marked up to $435. The stories the newspapers printed also the Navy. Suchovercharging seems impossible, led readers to believe that the military One of the problems in putting an end but the Navy and other military services serviceswere paying gross overcharges to overpricing and tracking cases of over- did pay the inflated prices for these and for all of their spare parts. But it wasn’t charging within the Navy is the size and many other items. true. complexity of the Navy’s supply system. Congress demanded to know why the Chief of Naval Operations Admiral “At the two Navy inventory control Department of Defensewas wasting so James D. Watkins said, “The majority of points (the Ships Parts Control Center in much of the taxpayers’ money. The media pricesnegotiated with Navy contractors Mechanicsburg, Pa., and the Aviation had a field day-the headlines weren’t are fair for all parties. But there are ex- Supply Office in Philadelphia), we man- pretty. ceptions. Unreasonable pricing has oc- age about 700,000 different stock num- The complete story wasn’t always told. curred because we failed to use common bers.In addition, theDefense Logistics Last August, however, President Reagan sense in challenging individual spare parts Agencymanages 1.3 million different addressed the issue in a radio address. prices that were obviously out of line.” stock numbers for the Navy,” Rear Ad- “There’s something I’d like to get off These exceptions-the few spare parts miral Andrew A. Giordano, Commander, my chest,” he said. “It deals with all those for which the Navy paid several times what Naval Supply Systems Command, said. headlines about the Pentagon paying$100 it should have paid-added unnecessarily “At any given time in the Navy supply for a 4-cent diode or $900 for a plastic to the spare parts bill, which will be $4.5 system, we’re managing more than 2 mil- cap. What ismissing . is, who pro- billion for fiscal year 1984. lion different stock numbers-buying, is- vided those figures for all the horror sto- Following on the heels of its own spare suing, inventorying,” he added. ries?” parts investigation, the Navy established “There are many opportunities to make The president answered his own ques- Project BOSS-Buy Our Spares Smart. mistakes-we’ve got to be very careful.” tion: “Itwas Defense Secretary Cap BOSS is much more than just a fancy ac- Weinberger’s people, his auditors and in- ronym-this projectincludes more than Fleet Sailors Have a Key Role spectors, who ordered the audit in the first 100 differentactions for reviewingand According to Admiral Giordano, the place, conductedthe investigation and reducing the cost of spare parts and could fleet sailor is a very important part of the 2 ALL HANDS overall equation that’s going to bring the trade name, it’s very difficult to buy the only can be bought cheaper but also can cost of spares down. Fleet sailors can con- part anywhere but from the company that usually be delivered faster. tribute to cutting costs in several ways.manufactures it. The companythen has Adequate descriptions also cansave the One is to report obvious overcharges in the Navy over a barrel-so to speak-and Navy from having to buy a part. For ex- spare parts purchases. could chargetoo muchand take too long ample, whensupply a department can’t Captain Gary A. Mastrandrea, head of to deliver the part. If the Navy can gen- find a national stock number, the part is the contracting department at SPCC, said erate competition, however, the itemnot labeled “non-standard.” Except for cer- the supply system had been used, the Navy would have paid 4 cents instead of $110 for this diode. Photo by pH2 Perry Thorsvik. MARCH 1984 3 BOSS Proclram tain very high priority requisitions and aviation requisitions that are sent directly to the appropriate inventorycontrol point, requests for replacement parts are sent to a supply center. Unless people at the sup- ply center or inventory control point can match an item with a stocknumbered part, they have to buy the part outside of the Navy supply system. Commodore Robert B. Abele, com- manding officer of SPCC, said, “If we have enough information about what an item is,we can often identify it with some- thing that’s already carried in the supply system. In many cases, the item is prob- ably down there in the supply center at the head of the pier.” Mastrandrea said that when a sparepart is bought outside the supply system, com- petitive bidding is often not possible or practical, and the Navy often pays too much money for the part. Competition is one of the key elements in reducing prices, to be easy because it takes a lot of work patented or unique-so that no one else and one of the goals of Project BOSS is to get the data so we can get competitive has the ability to manufacture them to our to increase competition among defense bids. But the more competition we have, specifications and needs,” Mastrandrea contractors for spare parts sales. the lower the prices. As a general rule, said. we can reduce the price by 25 percent the But other items currently bought from Increasing Competition first time we go outfor competitive bids.” sole or non-original sources can be iden- “We’vesignificantly increased our Many of the Navy’s spares are bought tified, put out for bids and then bought at competition goals,” Admiral Giordano on a sole-source basis, meaning the parts much cheaper prices, usinga process called said. “We’regoing to buymany more are bought from only one contractor. “breakout.” spares on a competitive basis. It’s not going “Certain items are non-competitive- “Breakout identifies spares previously bought on a sole source basis from com- panies that may not have been manufac- Navy’s Spare Parts Policy turing the items,” Admiral Giordanosaid. “That source may have just been putting To reduce the cost of spare parts, Chief the most economical source. a label on the part and selling it to us. ofNaval Operations Admiral James D. 0 If substantially increased prices result “With breakout we go directly to the Watkins has established the following pol- from urgency or other special require- manufacturer. There is a significant cost icy for all Navy people: ments, the user of the spare part should savings when we can do that because we 0 Use the supply system for parts and validate the requirements. avoid the markup from the middle man.” supplies. 0 If the user of a spare part knows of As part of its program to break items 0 Do notbuy from contractors items alternate sources of supply, he or she out of sole sources, the Navy has asked already available in the supply system.
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