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OAS Insights 1.1
 

Acquisition Process for U.S. Navy Shipbuilding, Maintenance, Repair, and Overhaul (MRO)

In the illustration below, learn how nGAP’s Open Acquisition System (OAS) manages the lifecycle of US Navy acquisitions for the maintenance, repair and overhaul (MRO) of a typical warship. Drilling down on individual illustration elements will reveal how our real-time acquisition process reduces cycle time and cost to significantly contribute to fleet readiness.

*This illustration is a conceptual representation

Beginning with Congressional appropriations and ending with invoice payments, all procured goods or services have a cost, whether for a single bolt or an entire aircraft carrier. During a typical project there are changes in objectives, priorities, specifications, and timing, all with associated debits and credits. Funding citations—or in government jargon, “fund cites”—keep track of the money, and OAS keeps track of the who, what, when, where, and why of all funding citations, providing actionable data, in real time and down to the penny, for all stakeholders.

*This illustration is a conceptual representation

Nothing is perfectly static in shipbuilding, maintenance and modernization; changes are the rule rather than the exception. The history of funding citations is a seemingly endless listing of every action that modifies and justifies every penny of project cost, every source of funding and every element of financial and contractual documentation. The OAS fund cite history is the real time and searchable source of all actions that affected the scope, delivery, and cost of the project.

*This illustration is a conceptual representation

The fund cite transaction log distills the historic details of the project into a logical and big picture record of how the project proceeded from inception to final delivery. It is a summary of the financial changes during the execution of the project. Real time records are instantly available for analysis and reporting in OAS.

*This illustration is a conceptual representation

The government acquisition process utilizes a complex alphanumeric key known as the Line of Accounting (LOA), which is essential for funding acquisitions across all government agencies. In our software, the acquisition process starts with a requisition number, which is similar to the accounting numbers used by various government agencies. Like the basic LOA, our requisition number consists of several individual elements that are crucial for funding procurement activities. However, unlike a general LOA, every element of our requisition number is specifically tied to acquisition features within the software. Agencies and departments can append additional alphanumeric codes as necessary for specific operations.

 

OAS manages these diverse types through sophisticated algorithms built into the system. It tracks all procurement activities from the initial appropriation by Congress down to the Contract Line Item Number (CLIN) and Sub-Contract Line Item Number (SCLIN). This enables stakeholders to trace every transaction from appropriation to the smallest expenditure with just a few mouse clicks.

OAS Insights 1.6
 

Between the initial appropriation of funding and the commitment of those funds to specific goods or services, numerous changes occur. These can include variations in costs and quantities, adjustments in requirement dates, vendor changes, and supply chain disruptions. Although the initial appropriation amount remains constant, the application of the funds can fluctuate significantly throughout the acquisition process. Fund cite splitting is a crucial mechanism to manage these variations. OAS efficiently tracks an unlimited number of fund-splitting actions, accommodating the dynamic needs of the government acquisition process.

*This illustration is a conceptual representation

The real-time data within your project module can serve as a powerful tool to alert system users—including Program Managers, Project Managers, Captains, and Admirals—about impending thresholds that, if ignored, could significantly impact project outcomes, readiness, and funding.


For instance, a project manager can set a specific budget for a sub-project. When the available funds approach a predefined level—completely controlled by the Project Manager—an alert will be sent to notify them that immediate attention is required. This message can also be disseminated to other key personnel who are invested in ensuring projects are adequately funded, preventing misallocation of funds, meeting deadlines, and avoiding waste or abuse that could further diminish readiness.


These alerts can automate many existing manual processes. With our AI and machine learning capabilities, we elevate this functionality to an unprecedented level.
These tools are currently available and ready to use now for the Navy and the DOD.

For reference view article 1.1

The OAS project plan module is fully integrated into the entire system. This means that any changes made in either a shipbuilding project or a ship maintenance project are instantly reflected in the Project Plan module of OAS. This includes all relevant data elements, encompassing every aspect of funding.

Tracking funding in real time for each project—whether related to sibling projects or sub-projects—is crucial. This ensures that you will never lose control of your shipbuilding and maintenance projects.

Too often, we see reports where managers lack access to this vital information, leading to situations where they:

Spend more funds on projects and sub-projects than have been allocated, resulting in certain aspects being either unfunded or partially funded.

This can create the appearance of misappropriated funding, discrepancies in vendor quotes, or a lack of planning awareness regarding necessary items to complete the project.

It is critical for the Navy (DOD) to have real-time visibility of available funds. Frequently, issues arise too late, with the “horse already out of the barn.” There have been instances where appropriated funds from Congress were redirected to unauthorized sub-projects, jeopardizing the entire project and its sub-projects. These critical events occur far too often.

The consequences of misallocating funds can extend beyond financial waste and potential fraud; they can also have a devastating impact on Naval readiness.

The OAS tools available to the Navy (DOD) today are designed to enhance readiness and significantly reduce cost overruns.

Our unique project planning module is robust and can effectively manage the entire fleet's activities with just a few clicks.

 

For reference view article 1.1

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*This illustration is a conceptual representation

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