This written article may go inspire out of the Philippine Armed Forces wherein speaking of second hand equipment, many lessons will be gathered from the experience of the Singaporean Armed Forces long before it became the most advanced military in the South East Asia. These in which, is a thing that needs to get pondered upon.
From the points of the Defense Minister of Singapore Ng Eng-Hen in the book "Engineering our Navy".
Acquisition of pre-owned military platforms can be a cost-effective solution to meet operational requirements but it also poses significant challenges.
While these issues can be partially mitigated through a well-crafted contract and close supervision during the acquisition, the challenge comes in handling the unexpected and resolving them swiftly in order not to impact the program schedule adversely. Our engineers provide some insight into the challenges faced and suggest measures that can be used to refine the existing framework for the acquisition of pre-owned platforms.
Pre-owned military platforms are opportunity buys that can be brought into service rapidly and cost effectively. Compared to the long lead time required to design, build and test new military platforms, pre-owned platforms typically only require country specific modifications and refurbishment and therefore can be inducted into service in a short time. Such acquisitions are not new to the SAF. Pre-owned platforms such as the Country-class LST's, AMX-13 light tanks and A-4 Skyhawks allowed the SAF to build up military capabilities which were required urgently in it's formative years, in a quick and cost-effective manner.
While the SAF has evolved over the years and many new systems have been acquired, the advantage offered by opportune pre-owned military platforms has not been completely dismissed. This is clearly demonstrated by the acquisition of the Challenger-class submarines as well as the Leopard 2 tanks. Our engineers know there is a wealth of experience in the realm of acquiring pre-owned platforms, and many project teams have since drawn on this knowledge.
Framework for Acquiring Defense Systems
Over the years, the MINDEF has developed a structured approach to manage the life cycle of defense systems. The framework serves to guide the management of systems throught the system's life cycle, beyond just the acquisition phase. It has been useful in the management of new systems and capabilities.
While the process for the acquisition of new build military platforms is well defined and the challenges understood, the same cannot be said of the acquisitions projects of pre-owned platforms. Being opportunistic buys, such acquisition projects of pre-owned platforms tend to be ad-hoc purchases, and have unique project management and technical challenges. As such, the existing framework can be adapted to better reflect the unique challenges of such acquisitions.
Unique Challenges in Acquisition of Pre-owned Platforms
Time pressure to conclude opportunistic acquisitions is usually leaves the project team with little time to examine the state of the component systems on board the platforms thoroughly and properly, look out for defects or to validate the prevailing performance of the systems before contractual commitment. Without in-depth system knowledge, the project team will also face difficulty in specifying the modification and upgrades required to customise the platform for the new intended usage.
Dealing with Uncertainty in Material Condition.
Normally, the material condition of pre-owned platforms cannot be fully ascertained prior to acquisition as it is not possible to strip the entire platform down to it's component level. As it is impractical and too costly to order a complete overhaul and renewal of ever component, it's not unusual to adopt the existing refurbishment scope of work of the host country since the project team may not be equipped with sufficient knowledge to specify the required scope of refurbishment accurately.
However, adopting the existing maintenance scope of work is inadequate. It is not unusual for the existing owner to drop selective scope of work of overhaul to manage cost and availability. This is usually an acceptable practice for the existing owner since the platform's original equipment manufacture (OEM) is able to provide timely support when defects occur due to their close proximity with their armed forces. The same would probably not be valid for the new owners of the pre-owned platforms as the OEM is most likely located at extended distances and thus unable to provide the required repair at short notice. In this case, there is a need to perform the additional overhaul scope of work not normally performed during the refurbishment, especially for safety critical systems, to mitigate potential future availability issues due to component failure. The additional scope of work would be next to impossible to establish at such short notice under such a normal contract situation.
Poor material conditions are picked up typically through close supervision of the refurbishment process. The presence of an on-site supervision team, otherwise known as the Resident Programme Office, enables the prompt identification of defects over the course of the refurbishment phase and helps to mitigate potential schedule delays. In addition, the availability of a fast-track process will greatly facilitate the project team's engagement with the OEM to resolve issues expeditiously. The boundaries of such a fast track process would have to be defined during the acquisition management phase of the system's life cycle.
Handling Existing Systems
Beside from being unable to ascertain the exact material conditions of existing components, the project team would also likely be hard-pressed to provide the detailed modification and upgrades required to convert the pre-owned platforms to suit local needs due to insufficient system knowledge. Likely shortfalls will occur in areas such as adaptation to local conditions (different environment conditions), safety (due to differing workflows and safety tolerances), monitoring system (different operating philosophies), host country laws and regulations.
Additional modifications not included within the original scope of work will likely incur substantial cost and adversely impact the schedule especially if identified late in the project management when design has been finalised. To mitigate such issues, a checklist of potential modifications would be helpful. Such a list would be accumulated over time drawing from the lessons learnt from similar projects. The applicability and critical level of each lesson would have to be assessed during the front-end planning phase.
Another likely issue on existing systems relates to the performance of the pre-owned platform and the onboard system. While the refurbishment and upgrade would have rejuvenated and extended the service life of the pre-owned platform, it is not realistic to expect the pre-owned platform and the onboard system to perform to the originally specified performance. This is especially so for electromechanical systems. In the event where the the existing or modified system fails to meet specific performance requirements, disputes would arise between the OEM and the project team on the acceptability of the performance demonstrated and whether additional modification would be required to improve the performance. The resulting cost and impact on schedule would be another point of contention.
To handle such issues, it is important to provide acceptable tolerance to handle the likely deterioration of performance due to ageing as well as a mechanism in the contract to handle the liability and responsibility in the event of such an occurrence. The mechanism should include cost-sharing formulae to handle situations where additional modifications of existing systems are required. Such a mechanism would have to be purposes during the acquisition management phase to gain the OEM's acceptance on the cost-sharing approach prior to contract signing.
Configuration Management Challenges
Over the course of the project, it is not uncommon to note discrepancies between the documented information and the physical configuration found on board the platforms. The most common observations are missing components, from items as minor as cable tages to major items like sub-assembles as well as the mismatch between the actual component and it's description as stated in the technical manuals (e.g. normal nuts were used instead of self-locking nuts). It is common to discover additional components fitted but not reflected in the drawings ( typical items are electrical sockets and storage boxes) as well as electrical connections in the drawings differing from physical connectors on board. It is also possible to note discrepancies in configurations between different platforms of the same class (such as additional structural fittings, elbows and extensions on various piping) Ad hoc corrective actions will be required to manage such discrepancies of to document the non-conformity.
Other than inaccurate configuration, it is also likely that the text on the labels, tags, gauges, instructions and warning signs are written in the language of the host country.
Such a configuration could post a dilemma. Enforcing blanket changes to English text would likely incur a substantial cost, bearing in mind that the related documentation such as drawings and technical manuals will need to be updated as well. In many cases, trade-offs will be necessary to achieve the right balance between operational efficiency/safety and cost effectiveness. Based on experience, all text with safety implications (such as warning signs, operational instructions and push buttons) should be replaced to reduce the likelihood of human error during operations. This would have to be imposed on the OEM during the acquisition management phase. Unfortunately, it is impractical and impossible to identify all the text that needs to be changed at contract signing. Hence, the remaining configuration issues would have to be resolved during the project implementation.
Sine many configuration issues cannot be fully anticipated, it is necessary to set aside adequate budget to update the configuration to reflect actual conditions, and without compromising safety.
Dealing with obsolescence.
Equipment obsolescence is a key requirement that must be addressed to ensure supportability and maintainability post-delivery. This is especially critical when the pre-owned platforms are expected to be supported for an additional service life of greater than 10 years. It is important to demand that the OEM provide evidence during the acquisition management phase to identify potential obsolescence issues upfront. It is also important to continue to keep a close watch during the refurbishment or upgrade to identify further occurrences of potential obsolescence and resolve them promptly. Solutions to overcome obsolescence include acquiring the remaining spares, contracting the OEM for an extended maintenance agreement or warranty, sourcing third-party maintenance and supply support, and redesigning, replacing or upgrading the existing components or system.
To mitigate potential schedule delay, it is necessary to purchase the remaining available spares to ensure at least short-term supportability while efforts are taken to review the feasibility of the other solutions to obsolescence. Redesign and upgrade of obsolete components/systems are usually undertaken after a proper cost-effectiveness study is conducted since it will incur substantial cost and impact on schedule. Nevertheless, redesigning, replacing or upgrading existing components may be necessary during the course of the project implementation and it would therefore be important to address, if possible, how to manage such issues in the contract.
Courtesy of Tan Tian Cai, DefensePH
From the points of the Defense Minister of Singapore Ng Eng-Hen in the book "Engineering our Navy".
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| BRP Gregorio del Pilar FF-15, an ex-Hamilton cutter of the US Coast Guard. |
While these issues can be partially mitigated through a well-crafted contract and close supervision during the acquisition, the challenge comes in handling the unexpected and resolving them swiftly in order not to impact the program schedule adversely. Our engineers provide some insight into the challenges faced and suggest measures that can be used to refine the existing framework for the acquisition of pre-owned platforms.
Pre-owned military platforms are opportunity buys that can be brought into service rapidly and cost effectively. Compared to the long lead time required to design, build and test new military platforms, pre-owned platforms typically only require country specific modifications and refurbishment and therefore can be inducted into service in a short time. Such acquisitions are not new to the SAF. Pre-owned platforms such as the Country-class LST's, AMX-13 light tanks and A-4 Skyhawks allowed the SAF to build up military capabilities which were required urgently in it's formative years, in a quick and cost-effective manner.
While the SAF has evolved over the years and many new systems have been acquired, the advantage offered by opportune pre-owned military platforms has not been completely dismissed. This is clearly demonstrated by the acquisition of the Challenger-class submarines as well as the Leopard 2 tanks. Our engineers know there is a wealth of experience in the realm of acquiring pre-owned platforms, and many project teams have since drawn on this knowledge.
Framework for Acquiring Defense Systems
Over the years, the MINDEF has developed a structured approach to manage the life cycle of defense systems. The framework serves to guide the management of systems throught the system's life cycle, beyond just the acquisition phase. It has been useful in the management of new systems and capabilities.
While the process for the acquisition of new build military platforms is well defined and the challenges understood, the same cannot be said of the acquisitions projects of pre-owned platforms. Being opportunistic buys, such acquisition projects of pre-owned platforms tend to be ad-hoc purchases, and have unique project management and technical challenges. As such, the existing framework can be adapted to better reflect the unique challenges of such acquisitions.
Unique Challenges in Acquisition of Pre-owned Platforms
Time pressure to conclude opportunistic acquisitions is usually leaves the project team with little time to examine the state of the component systems on board the platforms thoroughly and properly, look out for defects or to validate the prevailing performance of the systems before contractual commitment. Without in-depth system knowledge, the project team will also face difficulty in specifying the modification and upgrades required to customise the platform for the new intended usage.
Dealing with Uncertainty in Material Condition.
Normally, the material condition of pre-owned platforms cannot be fully ascertained prior to acquisition as it is not possible to strip the entire platform down to it's component level. As it is impractical and too costly to order a complete overhaul and renewal of ever component, it's not unusual to adopt the existing refurbishment scope of work of the host country since the project team may not be equipped with sufficient knowledge to specify the required scope of refurbishment accurately.
However, adopting the existing maintenance scope of work is inadequate. It is not unusual for the existing owner to drop selective scope of work of overhaul to manage cost and availability. This is usually an acceptable practice for the existing owner since the platform's original equipment manufacture (OEM) is able to provide timely support when defects occur due to their close proximity with their armed forces. The same would probably not be valid for the new owners of the pre-owned platforms as the OEM is most likely located at extended distances and thus unable to provide the required repair at short notice. In this case, there is a need to perform the additional overhaul scope of work not normally performed during the refurbishment, especially for safety critical systems, to mitigate potential future availability issues due to component failure. The additional scope of work would be next to impossible to establish at such short notice under such a normal contract situation.
Poor material conditions are picked up typically through close supervision of the refurbishment process. The presence of an on-site supervision team, otherwise known as the Resident Programme Office, enables the prompt identification of defects over the course of the refurbishment phase and helps to mitigate potential schedule delays. In addition, the availability of a fast-track process will greatly facilitate the project team's engagement with the OEM to resolve issues expeditiously. The boundaries of such a fast track process would have to be defined during the acquisition management phase of the system's life cycle.
Handling Existing Systems
Beside from being unable to ascertain the exact material conditions of existing components, the project team would also likely be hard-pressed to provide the detailed modification and upgrades required to convert the pre-owned platforms to suit local needs due to insufficient system knowledge. Likely shortfalls will occur in areas such as adaptation to local conditions (different environment conditions), safety (due to differing workflows and safety tolerances), monitoring system (different operating philosophies), host country laws and regulations.
Additional modifications not included within the original scope of work will likely incur substantial cost and adversely impact the schedule especially if identified late in the project management when design has been finalised. To mitigate such issues, a checklist of potential modifications would be helpful. Such a list would be accumulated over time drawing from the lessons learnt from similar projects. The applicability and critical level of each lesson would have to be assessed during the front-end planning phase.
Another likely issue on existing systems relates to the performance of the pre-owned platform and the onboard system. While the refurbishment and upgrade would have rejuvenated and extended the service life of the pre-owned platform, it is not realistic to expect the pre-owned platform and the onboard system to perform to the originally specified performance. This is especially so for electromechanical systems. In the event where the the existing or modified system fails to meet specific performance requirements, disputes would arise between the OEM and the project team on the acceptability of the performance demonstrated and whether additional modification would be required to improve the performance. The resulting cost and impact on schedule would be another point of contention.
To handle such issues, it is important to provide acceptable tolerance to handle the likely deterioration of performance due to ageing as well as a mechanism in the contract to handle the liability and responsibility in the event of such an occurrence. The mechanism should include cost-sharing formulae to handle situations where additional modifications of existing systems are required. Such a mechanism would have to be purposes during the acquisition management phase to gain the OEM's acceptance on the cost-sharing approach prior to contract signing.
Configuration Management Challenges
Over the course of the project, it is not uncommon to note discrepancies between the documented information and the physical configuration found on board the platforms. The most common observations are missing components, from items as minor as cable tages to major items like sub-assembles as well as the mismatch between the actual component and it's description as stated in the technical manuals (e.g. normal nuts were used instead of self-locking nuts). It is common to discover additional components fitted but not reflected in the drawings ( typical items are electrical sockets and storage boxes) as well as electrical connections in the drawings differing from physical connectors on board. It is also possible to note discrepancies in configurations between different platforms of the same class (such as additional structural fittings, elbows and extensions on various piping) Ad hoc corrective actions will be required to manage such discrepancies of to document the non-conformity.
Other than inaccurate configuration, it is also likely that the text on the labels, tags, gauges, instructions and warning signs are written in the language of the host country.
Such a configuration could post a dilemma. Enforcing blanket changes to English text would likely incur a substantial cost, bearing in mind that the related documentation such as drawings and technical manuals will need to be updated as well. In many cases, trade-offs will be necessary to achieve the right balance between operational efficiency/safety and cost effectiveness. Based on experience, all text with safety implications (such as warning signs, operational instructions and push buttons) should be replaced to reduce the likelihood of human error during operations. This would have to be imposed on the OEM during the acquisition management phase. Unfortunately, it is impractical and impossible to identify all the text that needs to be changed at contract signing. Hence, the remaining configuration issues would have to be resolved during the project implementation.
Sine many configuration issues cannot be fully anticipated, it is necessary to set aside adequate budget to update the configuration to reflect actual conditions, and without compromising safety.
Dealing with obsolescence.
Equipment obsolescence is a key requirement that must be addressed to ensure supportability and maintainability post-delivery. This is especially critical when the pre-owned platforms are expected to be supported for an additional service life of greater than 10 years. It is important to demand that the OEM provide evidence during the acquisition management phase to identify potential obsolescence issues upfront. It is also important to continue to keep a close watch during the refurbishment or upgrade to identify further occurrences of potential obsolescence and resolve them promptly. Solutions to overcome obsolescence include acquiring the remaining spares, contracting the OEM for an extended maintenance agreement or warranty, sourcing third-party maintenance and supply support, and redesigning, replacing or upgrading the existing components or system.
To mitigate potential schedule delay, it is necessary to purchase the remaining available spares to ensure at least short-term supportability while efforts are taken to review the feasibility of the other solutions to obsolescence. Redesign and upgrade of obsolete components/systems are usually undertaken after a proper cost-effectiveness study is conducted since it will incur substantial cost and impact on schedule. Nevertheless, redesigning, replacing or upgrading existing components may be necessary during the course of the project implementation and it would therefore be important to address, if possible, how to manage such issues in the contract.
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| This is where we gather the details of the whole article. |
Courtesy of Tan Tian Cai, DefensePH
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