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NPS-AM-20-028 ACQUISITION RESEARCH PROGRAM SPONSORED REPORT SERIES Cost-Benefit Analysis of Converting Wasp Class Landing Helicopter Dock (Lhd) Steam Propulsion Plants to Hybrid Propulsion December 2019 LT Joseph G. Jablonski, USN LT Richard Rodriguez, USN Thesis Advisors: Dr. Marigee Bacolod, Associate Professor Dr. Amilcar A. Menichini, Associate Professor Graduate School of Defense Management Naval Postgraduate School Approved for public release; distribution is unlimited. Prepared for the Naval Postgraduate School, Monterey, CA 93943. Acquisition Research Program Graduate School of Defense Management Naval Postgraduate School The research presented in this report was supported by the Acquisition Research Program of the Graduate School of Defense Management at the Naval Postgraduate School. To request defense acquisition research, to become a research sponsor, or to print additional copies of reports, please contact any of the staff listed on the Acquisition Research Program website (www.acquisitionresearch.net). Acquisition Research Program Graduate School of Defense Management Naval Postgraduate School ABSTRACT The purpose of this thesis is to conduct a cost-benefit analysis of converting steam- powered propulsion plants on-board Wasp-Class Landing Helicopter Dock (LHD) hulls 1 through 7 to hybrid propulsion. The objective of this research was to evaluate the net present value of conversion by weighing the cost-savings benefits of fuel savings, in-port utility consumption, and manpower against the cost of conversion. The results of the analysis conclude that LHDs 5 and 7 have a positive net present value; therefore, their conversion is recommended. LHD 6 can have a positive net present value with recommended complex overhaul schedule changes. Recommendations are made to maximize benefits to the Navy, considering potential changes in force structure and follow- on studies. Acquisition Research Program Graduate School of Defense Management - i - Naval Postgraduate School THIS PAGE INTENTIONALLY LEFT BLANK Acquisition Research Program Graduate School of Defense Management - ii - Naval Postgraduate School ABOUT THE AUTHORS LT Joseph G. Jablonski is a Surface Warfare Officer who graduated from Fairleigh Dickinson University in Madison, New Jersey, where he was awarded a Bachelor of Science in Chemistry and a minor in Mathematics. LT Jablonski then attended Clemson University in Clemson, South Carolina, where he was awarded a Master’s of Science in Environmental Engineering. After commissioning through the Nuclear Propulsion Officer Candidate program, LT Jablonski completed his first Division Officer tour onboard USS Gravely (DDG 107) as the Gunnery and Ordnance Officer. He was then assigned to Navy Nuclear Power Training Command, where he completed nuclear power school, followed by Nuclear Power Training Unit. LT Jablonski completed his nuclear Division Officer tour onboard USS Dwight D. Eisenhower (CVN 69) as the Electrical Division Officer for Number Two Reactor Plant, as well as the Assistant Main Propulsion Assistant following his successful completion of the Prospective Nuclear Engineering Officer exam. After his NPS graduation, LT Jablonski will be attending SWO Department Dead school in Newport, Rhode Island with follow on orders to USS James E. Williams (DDG 95) as the Weapons Officer. LT Richard Rodriguez is is a native of Naranjito, Puerto Rico, Lieutenant Richard Rodriguez was graduated from the United States Naval Academy in 2013 with a Bachelor of Science. Afloat, Lieutenant Rodriguez completed his division officer tours aboard the destroyer USS FORREST SHERMAN (DDG 98) as the Strike Officer and then aboard USS BAINBRIDGE (DDG 96) as the Fire Control Officer. During his sea tours he deployed to the Fifth Fleet area of operations in support of the Global War on Terrorism. Ashore, Lieutenant Rodriguez is a student at the Naval Postgraduate School earning a Master of Business Administration degree in Financial Management as well as completing the Naval War College Resident Program for Joint Professional Military Acquisition Research Program Graduate School of Defense Management - iii - Naval Postgraduate School Education Phase I. After his NPS graduation he will join the Commandant’s staff at the National War College. Lieutenant Rodriguez’s personal awards include the Navy and Marine Corps Achievement Medal with two Gold Stars as well as multiple service awards. He is married with two children. Acquisition Research Program Graduate School of Defense Management - iv - Naval Postgraduate School ACKNOWLEDGMENTS We would like to thank the numerous parties that helped us out along our path toward completing this thesis. To our advisors, Dr. Marigee Bacolod and Dr. Amilcar Menichini, thank you for the constant support and guidance throughout. To Expeditionary Strike Group Three staff, our sincerest thanks to Rear Admiral Pringle, Captain Bailey, and Mr. Matudio for supporting our constant questions and ship tours in San Diego. Mr. Severs, thank you for compiling all the historical and current data supporting our topic. CAPT Hill, thank you for your support and for making N953 resources available to us. Thank you to the officers and crew of USS Essex, USS Bonhomme Richard, and USS Makin Island for your insightful tours and hospitality. Thank you for the engaging and thoughtful discussions that shaped this thesis to CAPT Lebron, CAPT Mutty, CAPT Rodriguez, and CDR Ponce. We are also indebted to LCDR Henley, LCDR Daniel Kohlbeck, ENS Surman, CWO4 Osgatharp, MM1 Peralta, MM3 Martinez, and MM3 Okray for your detailed tours and genuine feedback. We must also thank our shore support staff. Thank you for your infinite assistance, Mr. Chris Roberts. We need Fleet Energy Managers back! Mr. Patrick M. McDonnell from the IBM VAMOSC help team, Mr. Ramon S. Leyeza from NAVFAC, Mr. Al R. Herche from the Navy Manpower Analysis Center, Mr. Bob Alperstein from NAVSEA, and Mr. Al Struna from Forecast International, we could have not done it without your overwhelming support and enthusiasm. Joseph dedicates this thesis to his father, Joseph Gerard Jablonski, Sr., who passed away during Joseph’s time at NPS. There was no father prouder of a son than Joseph Jablonski Sr. was. Thank you for the life lessons and memories we had together, Dad; you will be with me every day. Joseph would like to thank his wife, Rachele, for supporting him not only during the final months of thesis production but for the entirety of his naval career. Joseph would also like to thank his mother, Laurie, and brother, Anthony, for always being his backbone in life. Richard dedicates this thesis to his family. To my wife, Magdielis, thank you for your endless patience and devotion. Your encouragement motivates me to be better every Acquisition Research Program Graduate School of Defense Management - v - Naval Postgraduate School day, and I am excited to spend the rest of our lives together. Thank you for being the most loving and supporting wife a naval officer can ask for. To my children, Ricardo and Henry, thank you for giving me the endless inspiration that drives me to succeed every day. No one has been more important to me in the pursuit of this research than the three of you. Acquisition Research Program Graduate School of Defense Management - vi - Naval Postgraduate School NPS-AM-20-028 ACQUISITION RESEARCH PROGRAM SPONSORED REPORT SERIES Cost-Benefit Analysis of Converting Wasp Class Landing Helicopter Dock (Lhd) Steam Propulsion Plants to Hybrid Propulsion December 2019 LT Joseph G. Jablonski, USN LT Richard Rodriguez, USN Thesis Advisors: Dr. Marigee Bacolod, Associate Professor Dr. Amilcar A. Menichini, Associate Professor Graduate School of Defense Management Naval Postgraduate School Approved for public release; distribution is unlimited. Prepared for the Naval Postgraduate School, Monterey, CA 93943. Acquisition Research Program Graduate School of Defense Management - vii - Naval Postgraduate School THIS PAGE INTENTIONALLY LEFT BLANK Acquisition Research Program Graduate School of Defense Management - viii - Naval Postgraduate School TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................... XVII I. INTRODUCTION ...................................................................................................1 A. PROBLEM STATEMENT ..........................................................................1 B. RESEARCH QUESTIONS .........................................................................3 C. PURPOSE ....................................................................................................3 D. ORGANIZATION .......................................................................................4 II. BACKGROUND .....................................................................................................7 A. HISTORY OF LANDING HELICOPTER DOCK PROPULSION ...........7 Transition from Steam .....................................................................7 Technological Advances Pave the Way ...........................................8 B. COMBINED DIESEL-ELECTRIC AND GAS PROPULSION .................9 System Requirements.......................................................................9 The Combined Diesel-Electric and Gas Design ............................10 III. LITERATURE REVIEW ......................................................................................13 A. HISTORICAL CONVERSION FEASIBILITY AND COST SAVINGS ..................................................................................................13