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NASSCO-Earl Industries Paint Overview George Murphy Coatings Deputy Program Manager June 26, 2014

Industry Perspective Mega Rust Presentation 2014-06-26

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NASSCO-Earl Industries Paint OverviewGeorge Murphy

Coatings Deputy Program Manager

June 26, 2014

2NASSCO PROPRIETARY/TRADE SECRET INFORMATION

General Dynamics Marine Systems

Designer, Integrator, Builder and Repairer of Submarines, Aircraft Carriers, Complex Combatants, Naval Auxiliaries, and Commercial Jones Act Ships

NASSCO-San Diego

BIW

EB

NASSCO-NorfolkNASSCO-Earl Industries

NASSCO-Mayport

NASSCO-Bremerton

3NASSCO PROPRIETARY/TRADE SECRET INFORMATION

NASSCO-Earl Industries Coatings

Full Service Marine Preservation Rapid Cure/Fast Clad High Solids Abrasive Blasting UHP Water Blasting Blast & Paint Shop Services Non-Skid Applied Decking Environmental Containment Lead Abatement

4NASSCO PROPRIETARY/TRADE SECRET INFORMATION

NASSCO-Earl Industries28 Years Serving the U.S. Navy in Ship Repair and Preservation Formerly Earl Industries; Acquired by General Dynamics in 2012

Pier 2799 x 48 ft.

Berth 2BBerth 2A

Berth 1B

Pier 1799 x 55ft.

Berth 1A

NASSCO-Earl Industries’ 60 acre, modern, fully-equipped shipyard on the Elizabeth River in Portsmouth, Virginia is one of the most capable facilities for systematically servicing large ship repair contracts. Augmenting NASSCO-Earl Industries’ pier facilities are nearly 50,000 sq. ft. of modern, covered, environmentally-controlled shops and storage areas. NASSCO-Earl Industries is an expert and fully certified at all types of complex, restricted, and technical availabilities on US Navy ships and craft of all classes.

Structural / Pipe Fitting Services Sheet metal & pipe fabrication and installation Fluid systems overhaul & hydrostatic testingMechanical Services Diesel engine overhaul and maintenance Pump / valve overhaul Re-tubing of condensers and heat exchangers Bearing surface refurbishment Full rigging and lagging services Electrical Services Design / modification / trouble shooting / repair &

overhaul of electrical systems & equipment Cleaning and refurbishment of electrical equipment Installation & repair of joint mission command and

communications systems

Coatings Complete metal preservation services Environmentally-compliant containment systems Ultra-high pressure water blasting Abrasive blasting Application of all types of paint & coatings

Comprehensive staff of Engineers, Planners, Project Managers & Technicians

50k sqftShop & Storage

5NASSCO PROPRIETARY/TRADE SECRET INFORMATION

NASSCO-Norfolk50 Years Serving the U.S. Navy in Ship RepairFormerly Metro Machine Corp; Acquired by General Dynamics in 2011

Pier 1915 ft

Pier 3775 ft

Dry Dock750 ft; 40kLT

Hull Steel ShopRepair & alteration of main hull structuresHull Outfitting Shop Repair & alteration of hull outfit, dock blocking,

crating servicesInside / Outside Machine Shop Machine, valve, pump and winch overhaul & repairOutside Machine Shop Hydraulic, major mechanical, rudders, propulsion,

turbine & CPP repairsBoiler Shop Boiler repair alterations, condenser & cooler repairsElectrical Shop Electrical repair & alterations, testing & calibrationsMaintenance Shop Facilities repair & alterations, shop testingPaint Shop Painting of ships structure, equipment storage &

coating / material mixingRiggers Shop Material & equipment handling, crane operation,

ship handlingComprehensive staff of Engineers, Planners, Project Managers & Technicians

Located on the Elizabeth River, with 33 acres and 900 feet of waterfront access, NASSCO-Norfolk has the ability and the experience to prefabricate and repair major structural assemblies. Steel and aluminum components up to 350 tons in weight can be processed by our experienced teams of employees utilizing our advanced facilities. From its production flow layout of shops and computerized material management processes, to its massive remote controlled tower cranes, NASSCO-Norfolk covers all needs of ship owners and operators.

Pier 1915 ftPier 2

1,150 ft150k sqftShop & Storage

6NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Current Navy Contracts in Norfolk

Prime Contracts East Coast CVN (2010-2015) Pacific Northwest CVN (2014-2019) LSD modernization (2009-2014) LSD/LPD (2009-2014) FFG (2010-2015) LPD-17 SSMO (2014-2016)

Principal subcontractor to BAE for large deck amphibs, cruisers, and destroyer major ship modernization

We preserve the majority of the Navy’s Ships in Norfolk

7NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Coating Application Over the Past 12 Months

Ship Class Period Square Footage

USS IWO JIMA LHD 1/29/13 – 10/4/13 728,000

USS LABOON DDG 5/23/13 – 9/15/13 137,000

USS EISENHOWER CVN 9/9/13 – 11/9/14 1,187,000

USS WASP LHD 11/14/13 – 8/21/14 936,000

USS KEARSARGE LHD 12/12/13 – 4/6/14 197,000

USS BARRY DDG 12/16/13 – 7/15/14 61,700

USS CARTER HALL LSD 1/13/14 – 4/17/15 100,900

We have preserved 3.35 million square feet over the past 12 months for the US Navy

8NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Planning of Hulls

9NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Execution of Hulls

10NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Planning of Tanks

11NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Execution of Tanks

12NASSCO PROPRIETARY/TRADE SECRET INFORMATION

The NASSCO Production Process

Standards, Compliance, Accountability

Work Request

Planning

Tech Work Document

Gov’t Review/Authorization

Ready to Start Review

Turnover to Production

Production Work Complete

Work Certification

TestingTotal Ship Test Plan

ScheduleAnalysis

ResourceAnalysis

SpecificationDevelopment Estimating

EngineeringAnalysis

QARequirements

Work Control

Execute Work Quality Surveillance

Dialogue with the Navy

at Every Step!

SafetySurveillance

13NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Improvements

Preservation Work Packages “Controlled”, step-by-step compliance

Development of Talent Ultra High Pressure (UHP) Training Program

Ship’s Force Coating System Training Paint Companies direct training to Ship’s Force on

USS Eisenhower and USS Laboon

Subcontractor Development Help new companies “bridge” into NAVSEA

Subcontractor Relationship Every qualified preservation company in the port of

Norfolk supported NASSCO contracts this past year

14NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Opportunities for Improvement and Cumbersome Practices Blast Media on the Flight Decks of Amphibious Ships

Limits the surface preparation options Impacts the cost of surface preparation on structural components

Flight Deck Tie-Downs Drips on the underside - % acceptable? Tightly adhered paint and mil-scale

Pipe Hangers in Potable Water Tanks on CVNs 2 options and both are difficult

Removal of rubber grommets to ensure no paint adheres any non-metallic surface Wrapping of the rubber, followed by touch-up is nearly impossible where the grommets

are adjacent to hangers and piping

Schedule and Cost Impacts of High Chlorides and Conductivities There’s always a percentage of surface preparation on any availability where

high chlorides and high conductivities are found Chlorides and conductivities are never accounted for in the initial cost or

schedule

15NASSCO PROPRIETARY/TRADE SECRET INFORMATION

Questions?

George MurphyCoatings Deputy Program Manager

[email protected]

757-328-6300