Analysis of Maritime Support Vessels and Acquisition Methods Utilized to Support Maritime Irregular Warfare
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Calhoun: The NPS Institutional Archive Theses and Dissertations Thesis Collection 2010-06 Analysis of maritime support vessels and acquisition methods utilized to support maritime irregular warfare Clark, William J. Monterey, California. Naval Postgraduate School http://hdl.handle.net/10945/10518 NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA MBA PROFESSIONAL REPORT ANALYSIS OF MARITIME SUPPORT VESSELS AND ACQUISITION METHODS UTILIZED TO SUPPORT MARITIME IRREGULAR WARFARE By: William Clark, Christopher Kelley, and Justin Bummara June 2010 Advisors: Keenan Yoho, and James Greene Approved for public release; distribution is unlimited THIS PAGE INTENTIONALLY LEFT BLANK REPORT DOCUMENTATION PAGE Form Approved OMB No. 0704-0188 Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22202-4302, and to the Office of Management and Budget, Paperwork Reduction Project (0704-0188) Washington DC 20503. 1. AGENCY USE ONLY (Leave blank) 2. REPORT DATE 3. REPORT TYPE AND DATES COVERED June 2010 MBA Professional Report 4. TITLE AND SUBTITLE Analysis of Maritime Support Vessels and Acquisition 5. FUNDING NUMBERS Methods Utilized to Support Maritime Irregular Warfare 6. AUTHOR(S) William Clark, Christopher Kelley, Justin Bummara 7. PERFORMING ORGANIZATION NAME(S) AND ADDRESS(ES) 8. PERFORMING ORGANIZATION Naval Postgraduate School REPORT NUMBER Monterey, CA 93943-5000 9. SPONSORING /MONITORING AGENCY NAME(S) AND ADDRESS(ES) 10. SPONSORING/MONITORING N/A AGENCY REPORT NUMBER 11. SUPPLEMENTARY NOTES The views expressed in this thesis are those of the author and do not reflect the official policy or position of the Department of Defense or the U.S. Government. IRB Protocol number ________________. 12a. DISTRIBUTION / AVAILABILITY STATEMENT 12b. DISTRIBUTION CODE Approved for public release; distribution is unlimited 13. ABSTRACT (maximum 200 words) As the U.S. military continuously aligns the appropriate platforms to conduct Maritime Irregular Warfare (MIW), Special Operations Command (SOCOM) has leased/chartered civilian ships to provide the appropriate vessels needed to support operations in Operation Enduring Freedom–Philippines (OEF–P). The framework of this study showcases three specific vessels with their corresponding capabilities on cost per day basis. Our findings and analyses may aid commanders in determining the most appropriate vessel and cost-effective acquisition method to accomplish specific MIW missions in not only OEF-P, but also in other MIW environments. Based on the analysis and recommendations presented in this project, decision makers in this arena will have a mechanism from which to make a more informed decision regarding the acquisition of vessels supporting MIW. Decision makers will be able to evaluate various potential MIW scenarios; identify specific vessel capabilities to meet their operational requirements; and acquire vessels more cost-effectively based on total daily rate costs. 14. SUBJECT TERMS Maritime Support Vessel, Maritime Irregular Warfare, Naval Special 15. NUMBER OF Warfare, Leasing, Chartering, USSOCOM, Operation Enduring Freedom–Philippines, SOF, SEALs, PAGES HSV, LCS, Military Sealift Command 115 16. PRICE CODE 17. SECURITY 18. SECURITY 19. SECURITY 20. LIMITATION OF CLASSIFICATION OF CLASSIFICATION OF THIS CLASSIFICATION OF ABSTRACT REPORT PAGE ABSTRACT Unclassified Unclassified Unclassified UU NSN 7540-01-280-5500 Standard Form 298 (Rev. 2-89) Prescribed by ANSI Std. 239-18 i THIS PAGE INTENTIONALLY LEFT BLANK ii Approved for public release; distribution is unlimited ANALYSIS OF MARITIME SUPPORT VESSELS AND ACQUISITION METHODS UTILIZED TO SUPPORT MARITIME IRREGULAR WARFARE William J. Clark, Major, United States Army Christopher S. Kelley, Lieutenant, United States Navy Justin M. Bummara, Lieutenant, United States Navy Submitted in partial fulfillment of the requirements for the degree of MASTER OF BUSINESS ADMINISTRATION from the NAVAL POSTGRADUATE SCHOOL June 2010 Authors: _____________________________________ William J. Clark _____________________________________ Christopher S. Kelley _____________________________________ Justin M. Bummara Approved by: _____________________________________ Dr. Keenan D. Yoho, Lead Advisor _____________________________________ RADM James B. Greene, USN (Ret.), Support Advisor _____________________________________ William R. Gates, Dean Graduate School of Business and Public Policy iii THIS PAGE INTENTIONALLY LEFT BLANK iv ANALYSIS OF MARITIME SUPPORT VESSELS AND ACQUISITION METHODS UTILIZED TO SUPPORT MARITIME IRREGULAR WARFARE ABSTRACT As the U.S. military continuously aligns the appropriate platforms to conduct Maritime Irregular Warfare (MIW), Special Operations Command (SOCOM) has leased/chartered civilian ships to provide the appropriate vessels needed to support operations in Operation Enduring Freedom–Philippines (OEF–P). The framework of this study showcases three specific vessels with their corresponding capabilities on cost per day basis. Our findings and analyses may aid commanders in determining the most appropriate vessel and cost-effective acquisition method to accomplish specific MIW missions in not only OEF-P, but also in other MIW environments. Based on the analysis and recommendations presented in this project, decision makers in this arena will have a mechanism from which to make a more informed decision regarding the acquisition of vessels supporting MIW. Decision makers will be able to evaluate various potential MIW scenarios; identify specific vessel capabilities to meet their operational requirements; and acquire vessels more cost-effectively based on total daily rate costs. v THIS PAGE INTENTIONALLY LEFT BLANK vi TABLE OF CONTENTS EXECUTIVE SUMMARY .....................................................................................................1 I. PREFACE...................................................................................................................13 II. INTRODUCTION......................................................................................................15 III. RESEARCH OBJECTIVES AND METHODOLOGY .........................................19 IV. LITERATURE REVIEW AND BACKGROUND .................................................21 A. LITERATURE ADDRESSING MARITIME IRREGULAR WARFARE.....................................................................................................21 B. A CONTEMPORARY CASE OF MIW: OPERATION ENDURING FREEDOM–PHILIPPINES..........................................................................25 1. Background ........................................................................................25 2. OEF–P Strategy and Mission............................................................26 3. OEF–P Organization .........................................................................28 4. Terrorist Organizations.....................................................................31 5. Operations ..........................................................................................32 6. U.S. Foreign Assistance .....................................................................33 7. Maritime Aspect of OEF–P...............................................................33 8. Vessel Characteristics........................................................................34 V. VESSEL ACQUISITION STRATEGIES ...............................................................35 A. ACQUISITION METHODS.........................................................................35 1. Procurement .......................................................................................35 2. Purchasing ..........................................................................................36 3. Leases ..................................................................................................37 a.. Types of Leases........................................................................38 b. Risk Associated with Leases ...................................................39 c. Guidelines for Making the Lease or Purchase Decision.......39 d. Leasing Background...............................................................40 B. MILITARY SEALIFT COMMAND OVERVIEW....................................42 C. EARLY HISTORY OF THE MARITIME SUPPORT VESSEL (MSV)..............................................................................................................47 D. MSV PROGRAM STRATEGY ...................................................................49 E. MSV PROGRAM EXECUTION .................................................................51 1. Acquisition of Funding Phase ...........................................................51 2. Requirements Phase...........................................................................52 3. Construction Phase ............................................................................53 F. MSV BUDGET AND FINANCE..................................................................56 G. LOGISTICS AND SUPPORT ......................................................................57