• NAVFAC MIDLANT Awards Contract for Building Renovations at Portsmouth Naval Shipyard as part of Navy SIOP

Courtesy Story from Naval Facilities Engineering Systems Command Mid-Atlantic Public Affairs

NORFOLK, Va. (Sept. 19, 2023)– Naval Facilities Engineering Systems Command Mid-Atlantic (NAVFAC MIDLANT) awarded The Nutmeg Companies Inc., Norwich, Connecticut, a $22,623,810, firm-fixed-price contract for renovations of Building 79 at Portsmouth Naval Shipyard (PNSY), Kittery, Maine. The contract also contains two unexercised options, which if exercised, would increase the total cumulative contract value to $27,104,580.

The work is part of the Shipyard Infrastructure Optimization Program (SIOP), and is a continuation of the Navy’s commitment to investing in the nation's critical naval facilities.

SIOP is a holistic plan that integrates all infrastructure and industrial plant equipment investments at the Navy’s four public shipyards to meet nuclear fleet maintenance requirements, as well as improve Navy maintenance capabilities by expanding shipyard capacity and optimizing shipyard configuration.

SIOP projects are essential to the on-time completion of submarine availabilities at PNSY, and critical to maintaining the Navy’s maritime superiority.

“The restoration and modernization of our shipyard’s nuclear engineering and planning spaces substantially improves the quality of service for our most important asset, our people,” said Russ Gagner, PNSY SIOP Program Manager. “As a primary tenet of SIOP, this project will deliver improvements to our spaces – meeting all current codes – and provides savings through reduced sustainment costs to maintain the facility, and utility cost reduction.”

Work will be performed in Kittery, Maine, and is expected to be completed by September 2025.

“This project – and many others – is essential to our national defense. It also demonstrates our collaboration with Naval Sea Systems Command and Commander, Navy Installations Command to help modernize our shipyards,” said Capt. Matt Riethmiller, Commanding Officer of NAVFAC MIDLANT. “These direct and significant contributions will support warfighter readiness for many years to come.”

Fiscal year 2023 operation and maintenance (Navy) funds in the amount of $22,623,810 will be obligated at time of award, and will expire at the end of the current fiscal year.

This contract was competitively procured via the sam.gov website, with one proposal received.

NAVFAC MIDLANT is the contracting activity (N4008523C0049).

For more information about the Shipyard Infrastructure Optimization Program, visit www.navfac.navy.mil/PEO-Industrial-Infrastructure/PMO-555-SIOP/. The Navy is investing heavily in shipyard infrastructure. SIOP will construct and recapitalize dry docks, recapitalize and reconfigure infrastructure, and modernize industrial plant equipment.

NAVFAC MIDLANT provides facilities engineering, public works and environmental products and services across an area of responsibility that spans from South Carolina to Maine, as far west as Illinois, and down to Indiana. As an integral member of the Commander, Navy Region Mid-Atlantic team, NAVFAC MIDLANT provides leadership through the Regional Engineer organization to ensure the region’s facilities and infrastructure are managed efficiently and effectively.

• Program Milestone Achieved

On Aug. 17, 2023, Admiral Lisa Franchetti, Vice Chief of Naval Operations, signed the Shipyard Infrastructure Optimization Program’s (SIOP) Capability Development Document (CDD) with program Key Performance Parameters (KPPs).

The CDD established the operational performance criteria to achieve the militarily required throughput, capacity, condition, resiliency, and configuration at the shipyards.  The CDD specifies Key Performance Parameters (KPPs) to guide designs and measure performance, with thresholds that use nominally current methods performed efficiently through improved facilities built to modern standards. The CDD’s objectives guide the reuse and construction of infrastructure that will provide the growth, reconfiguration, increased quality of service, accommodation of new and developing technologies, and process improvements needed for the future fleet.

Ultimately, SIOP will provide the Navy’s four public shipyards purpose-built Waterfront Production Facilities (light industrial capability) and Ship Maintenance Facilities (heavy industrial capability), repair/replace all utility systems, and repair/replace administrative, transportation and logistics complexes throughout the shipyards using a mix of new construction and reuse of facilities to optimize production, increase adaptability for future requirements and technologies, and provide resiliency to natural and adversary threats.

A program executive officer, or PEO, is one of a few key individuals in the Department of Defense acquisition process.  A program executive officer may be responsible for a specific program (e.g., the Joint Strike Fighter), or for an entire portfolio of similar programs (e.g., the Navy PEO for aircraft carriers).

In September 2021, the Department of the Navy updated the Shipyard Infrastructure Optimization Program's (SIOP) reporting relationships to ensure disciplined and synchronized execution of the multiple major construction efforts managed within SIOP and designated Naval Facilities Engineering Systems Command as the single, responsible executive lead for execution of SIOP and established the Program Executive Office Industrial Infrastructure (PEO II) to oversee Program Management Office 555 (PMO-555) SIOP.  

The Fiscal Year (FY) 2020 National Defense Authorization Act (NDAA) and FY 2020 Military Construction and Veterans Affairs Appropriations Act added new reporting requirements. These requirements included a report on the Navy’s implementation plan to revitalize the industrial base, a prioritized list of SIOP projects and a cost estimate for the dry dock support facility concept.

The Navy submitted its first five-year plan to Congress in September 2021, with updates annually consistent with the President's Budget submission. The most recent report was submitted in March 2023 and that plan includes measurable near-term goals; project known costs; specifying how projects will be passed and sequenced with required maintenance, environmental planning timelines; and incorporating lessons learned to control future costs.

Fully executed, SIOP will deliver required dry dock repairs and upgrades to support current and planned future classes of nuclear-powered warships, optimize workflow within the shipyards through significant changes to their physical layout and recapitalize obsolete capital equipment with modern technology that will dramatically increase productivity and safety.  It will also deliver a digital twin of each shipyard, to enable digital modeling for use by each shipyard commander. The Navy remains committed to working with Congress, the Department of Defense leadership, the naval shipyard workforce, potentially impacted communities, regulators, and other stakeholders to determine the best path forward for each shipyard.

MARK K. EDELSON, PE

Mr. Mark Edelson entered the Senior Executive Service in July 2022. He serves as the Program Executive Officer for Industrial Infrastructure (PEO II). PEO II is responsible for cost, schedule, and performance of the Shipyard Infrastructure Optimization Program (SIOP). SIOP is a holistic investment plan to optimize the four naval public shipyards located in Portsmouth, Virginia; Kittery, Maine; Puget Sound, Washington, and Pearl Harbor, Hawaii.

Prior to his current assignment, Mr. Edelson was the Deputy Assistant Administrator for Design and Construction at the Department of Energy’s National Nuclear Security Administration. He oversaw a portfolio of 31 projects worth $36 billion recapitalizing the nation’s nuclear security enterprise at sites. Mr. Edelson was responsible for project management policy, acquisition, and execution performance of capital construction and major item of equipment projects.

Previously, he served as the Naval Facilities Engineering Systems Command (NAVFAC) Assistant Commander for Public Works. From 2017 to 2019 he commanded NAVFAC Southwest and served as the Navy Regional Engineer. Mr. Edelson served on active duty for 30 years in the U. S. Navy Civil Engineer Corps. His tours included a variety of command, operational, and staff positions in combat, contingency response, contracting, construction and facilities management. He has received numerous awards throughout his military career including the Legion of Merit (four awards).

Mr. Edelson has a Bachelor of Science Degree in civil engineering from the Massachusetts Institute of Technology. He earned a Master of Science degree in civil engineering from Stanford University and is a graduate of the Marine Corps Command and Staff College and the Duke University Advanced Management Program. He is a registered Professional Engineer (civil) in Virginia.

NAVFAC Atlantic Honors Andrew S. Haas as Employee of the Year

Andrew S. Haas, Supervisory Community Planner at Naval Facilities Engineering Systems Command (NAVFAC) Atlantic, has been honored with the title of NAVFAC Atlantic's Employee of the Year, a recognition that highlights his outstanding contributions to the organization. Mr. Haas, who has served the federal government for 15 commendable years, was celebrated for his remarkable dedication to his role and his unwavering commitment to excellence.

Haas' journey at NAVFAC Atlantic was marked by his instrumental role as a founding member of the NAVFAC Atlantic Shipyard Infrastructure Optimization Program (SIOP) Cell, representing Asset Management (AM), where he currently serves as AM's SIOP Lead. His exemplary leadership came to the forefront when he led a team of 20 multidisciplinary project managers and subject matter experts (SMEs) in scoping, reviewing, negotiating, and overseeing the contract execution of multiple studies, with a combined contract value of $39.5 million during fiscal year 2022.

Initially tasked with eight studies for Norfolk Naval Shipyard (NNSY) in fiscal year 2022, His leadership navigated the evolving mission requirements and increased resource funding, resulting in the award of an astounding 40 studies, 2 Area Development Plans (ADP), and the NNSY Waterfront Production Facility (WPF) at the Norfolk and Portsmouth Naval Shipyards (PNSY) by the end of that fiscal year. His collaborative efforts with NAVFAC Pacific Contracting led to the successful negotiation and awarding of 21 advanced planning studies and 1 ADP at NNSY, amounting to approximately $20 million. Furthermore, his involvement with NAVFAC LANT Contracting resulted in the negotiation and award of the NNSY WPF Study valued at over $3 million and 19 Advanced Studies and PNSY ADP totaling $16.5 million.

One of Haas' notable achievements was his ability to meet these additional requirements without any delays in the execution of Program Management Office 555's studies within the original timeline. His strategic decision to switch contract vehicles from a global contingency services multiple award cost-plus contract to a NAVFAC Atlantic indefinite delivery/indefinite quantity fixed-price contract translated into savings exceeding $3 million for the government.

Apart from his remarkable accomplishments in the field, Haas has dedicated his time to volunteering for numerous extended TDY assignments to support lower echelon commands. His humanitarian mission work in Port-au-Prince, Haiti, during Operation Unified Response - Joint Task Force Haiti in 2010 earned him the Joint Civilian Service Achievement Award and the Armed Forces Civilian Service Medal.

In addition to his SIOP responsibilities, Haas played a pivotal role in building up the Integrated Product Support (IPS) team in 2016. He became the go-to subject matter expert on surface warfare platforms and mentored new planners assigned to IPS. In a recent development in 2023, Haas was promoted to the position of AM41 supervisor, overseeing four senior planners while continuing his SIOP lead duties.

Haas' commitment to professional development is evident through his maintenance of certification with the American Institute of Certified Planners (AICP) and his active participation in annual planning conferences, including the Federal Planning Division, American Planning Association, and various local planning events. Additionally, he generously volunteers his time to NAVFAC Atlantic’s morale, welfare, recreation team known as the RECing Crew, contributing to the command’s team-building events.

Upon receiving the Employee of the Year honor, Haas expressed his gratitude and acknowledged the collaborative effort of his team, stating, "It was a surprise but feels great to be recognized. All the SIOP work wouldn't have been possible without a team effort though crossing disciplines and business lines."

Rear Adm. Lore Aguayo, Commander, NAVFAC Atlantic and Fleet Civil Engineer and Director, Fleet Installations and Environment, US Fleet Forces Command, praised Haas, saying, "Andrew’s achievements are nothing short of extraordinary, and his dedication to excellence is truly commendable. His pivotal role in leading complex projects and his unwavering commitment to NAVFAC’s mission exemplify the highest standards of service and management.”

Haas' journey, from earning a bachelor's degree in urban studies with concentrations in planning, public policy, and social change at Virginia Commonwealth University, to his 15-year career with NAVFAC, and being recognized as NAVFAC Atlantic's Employee of the Year, serves as a testament to his unwavering dedication and excellence in service.

Questions & Answers with Mr. Mark K. Edelson, Program Executive Officer, PEO Industrial Infrastructure

What is PEO II’s role in the Navy’s Shipyard Infrastructure Optimization Program (SIOP)
and how would you define its mission?
 

PEO Industrial Infrastructure (PEO II) is the program executive overseeing SIOP, responsible for the cost, schedule, and performance of the program. In the early stages, my focus is determining the baseline program that fulfills the Navy’s requirements, while building the specific projects (dry docks) that have near term mission need dates. I intend to bring the rigor, discipline, and standardization to SIOP that makes executing a geographically diverse, multibillion-dollar program over decades possible, while creating stakeholder confidence and predictable results for customers (Fleet Commanders and shipyard workers). The PEO will ensure faithful and effective execution of the program mission: recapitalizing the Nation’s four public shipyards to shorten availability duration and improve availability efficiency so that submarine and aircraft carrier maintenance throughput allows the Navy to meet its deployment commitments and warfighting responsiveness.

 
What has been the biggest challenge so far as the newly appointed executive for PEO II?
 

A. Adapting the DoD’s MDAP process for weapons systems to an inherently facilities-based program,
and using the best of both systems rather than the bureaucracy of both.
 
B. Bringing innovation and programmatic thinking to the planning, design, and construction world that has traditionally focused on discrete projects unconnected with each other and reliant on
acquisition strategies that work well for smaller, individual projects but likely not for interconnected
mega-projects.
 
C. Establishing cost and schedule estimates with high confidence when only early planning is complete for work that is highly site dependent and will occur over decades with little opportunity for economies of scale or learning curves.
 
D. Building from scratch the organization, people, processes, and relationships to execute the program.

 
What are your top three priorities for your area of responsibility?
 

A. Creating realistic cost and schedule estimates that the Navy can make informed decisions using.
 
B. Making informed decisions early enough to allow execution of work that will meet mission need dates, while keeping stakeholders informed of the trade-off consequences.
 
C. Executing work in a transparent, repeatable (across space and time) manner to meet mission need dates.

CONTACT US

For more information regarding the Program Executive Office Industrial Infrastructure (PEO II) or Program Management Office 555 (PMO 555) Shipyard Infrastructure Optimization Program (SIOP), please contact the Congressional and Public Affairs Liaison Office at peoii_pmo555_siop_publicaffairs@us.navy.mil.