SCN DESK REFERENCE - Sunset Design

1 NAVSEA desk REFERENCE for the Shipbuilding and Conversion, Navy (SCN) Appropriation Version 1 Office of Naval Sea Systems Command Comptroller 14 September 09 ii Table of Contents Chapter Page Purpose of This Guidebook .. 1 Obligation and Work Limiting Date (OWLD) .. 2 Current Policy .. 2 Use of SCN Funds After the OWLD .. 3 OWLD Extension Requests .. 4 Advanced Procurement .. 5 Limitations of Advance Procurement .. 5 Budgeting for Advance 5 Economic Order Quantity (EOQ) .. 6 Advanced Construction.

2 6 Pre-commissioning .. 7 Pre-commissioning Crew .. 7 Pre-commissioning Unit (PCU) .. 7 Pre-Commissioning Expenditures .. 8 Planning .. 9 Information Technology (IT) .. 9 Travel .. 9 Personnel .. 10 Office .. 11 Fuel .. 11 Messing and Berthing .. 11 Training .. 14 Navy Systems Training Plan (NTSP) .. 15 Crew Familiarization .. 15 On-Board Training .. 15 En Route Training .. 16 Travel for Training .. 16 Curriculum 17 Training for Reimbursable Personnel .. 17 Equal Employment Opportunity Awareness.

3 17 Training Support .. 17 Testing and Trials .. 20 Funding .. 20 Integrated Test Package (ITP) .. 20 Trials .. 20 Dock Trial .. 21 Builder's Trials .. 21 Acoustic Trials .. 22 Fast Cruise .. 22 Acceptance 22 Underway 23 Combined 23 23 iii Final Contract Trials .. 24 Special Trials .. 24 Outfitting .. 25 SCN Outfitting Defined .. 25 SCN Outfitting 25 Appropriate Use of SCN Outfitting Funds .. 25 Inappropriate Use of SCN Outfitting Funds .. 26 Outfitting Requirements Development.

4 27 SEA 04L4 Budgets and Financial Management .. 27 Budget Preparation and Submittal .. 27 Congressional and FMB Budget Actions .. 28 Obligation Tracking and Execution Reviews .. 28 Outfitting Funds Extensions .. 28 29 Delivery Letter .. 29 Documenting Deficiencies .. 30 Guarantee Period .. 30 Water, Fuel, and Lubricating Oil Soundings .. 31 Commissioning .. 32 Commissioning 32 Allowable Ceremony Costs .. 32 Prohibited Ceremony Costs .. 33 Travel for Commissioning Ceremonies.

5 33 Official Representation Funds .. 34 Commissioning Committee .. 35 Post Shakedown Availability (PSA) .. 36 Sea Trials .. 36 Deficiency Correction Period .. 36 PSA Guarantee Period .. 36 Post Delivery .. 37 Concurrent Availability .. 37 Budgeting .. 37 Budget and Financial Management of SCN Post Delivery .. 40 Post Delivery Funds Extensions .. 41 Post Delivery Deficiencies .. 41 Shipbuilder / Shipyard Responsibilities .. 42 Refueling Complex Overhaul (RCOH) .. 43 RCOH Concurrent Availability.

6 44 Budgeting for RCOH .. 44 Customer Contracted Teams (CCT) .. 44 Messing and Berthing .. 44 APPENDIX A List of Acronyms .. A-1 APPENDIX B List of References .. B-1 APPENDIX C Training Summary Chart .. C-1 iv 1 Purpose of This Guidebook This document provides guidelines for the common Financial Management (FM) processes for the Shipbuilding and Conversion, Navy (SCN) appropriation. The primary objective of the guidelines is to establish a common and documented rule-set for the SCN appropriation and to standardize training.

7 These guidelines will reduce the errors and rework in the processing of SCN relevant information and products as well as the associated labor and delay. This guide will: o Document and centralize business rules governing the use of SCN funds. o Provide a common understanding of the business rules that control funding document approval involving SCN funds. o Clarify the milestones and events during the construction of a ship and determine the responsible payee. o Document business rules that determine the type of funding appropriate for specific purposes during the shipbuilding process.

8 O Clarify the rules on the use of SCN funding for reimbursable work vice the work that is mission funded with Operations and Maintenance, Navy (O&M,N). o Clarify what can be procured with SCN, software development and maintenance. o Provide a standard SCN execution process with integrity in the product, including quality assurance, variance measures, and process transparency. 2 Obligation and Work Limiting Date (OWLD) The delivery of a fully capable vessel to the fleet typically extends beyond the initial five year period of availability of the SCN appropriation.

9 Consequently, Congress inserts the following provision in each year s appropriation act, Provided, that additional obligations may be incurred after 30 Sept ____, for engineering services, tests, and evaluations, and other such budgeted work that must be performed in the final stage of ship construction. This language in the laws allow for the creation of a funds expiration date beyond the original five year period of availability Congress provides this extended availability to the Navy to enable shipbuilding contracts that result in a longer ship construction period comply with the full funding policy.

10 During this extended period of availability the program can incur new scope obligations up to the funds expiration date shown in the Treasury table or the OWLD of the ship. The NAVSEA Comptroller establishes the expiration and cancellation dates of an appropriation and forwards the dates to FMB prior to the end of the original fifth year of availability of the SCN Appropriation. The Treasury table is updated with the data received from the Navy. The Obligation and Work Limiting Date (OWLD) is normally11 months after Completion of Fitting-Out (CFO), unless other specific written authority has been granted by the Comptroller of NAVSEA.