Navy Acquisition of Ships to Commercial Standards Using a Circular of Requirements

Abstract

A variety of ship acquisition procedures have been used by the Naval Sea Systems Command (NAVSEA) in recent years. Every new design uses some variant on the basic design process. There are in-house designs and contracted-out designs and a variety of gradations in between. This paper addresses the acquisition of ships designed and built to commercial standards using the two-step procurement method. Both the two-step approach and the use of commercial standards have created a degree of controversy and confusion within NAVSEA. A less rigorous degree of control is exerted by NAVSEA over these designs without a corresponding decrease in responsibility. This paper explores the advantages and the pitfalls of the Navy's commercial acquisition approach, from the perspective of both the project manager and the technical codes. The mechanics of the approach are described and compared with the conventional Navy acquisition process. Finally, "lessons learned" and possible future acquisition strategies are presented.