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Lessons Learned: How NASA turned its Legacy WB-57 Program into a Successful
Reimbursable Program
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“Success is not final, failure is not fatal. It is the courage to continue that counts.”
- Winston Churchill
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Breakout Session
Name Scott A. Stephens, Contracting Officer, Mission Operations Office
Kevin J. Lesenski, Deputy Program Manager, WB-57 Program Office NASA Johnson Space Center, Houston TX
Date Thursday, October 11, 2012
Lessons Learned: How NASA turned its Legacy WB-57 Program
into a Successful Reimbursable Program
Executive Summary
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How NASA turned its Legacy WB-57 Program into a Successful Reimbursable Program•Overview: WB-57 Program, History and Operations•Four Critical Lessons Learned •Questions
Mission Statement
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The NASA WB-57 Program provides unique, high-altitude airborne platforms to US Government agencies, academic institutions, and commercial customers in order to support scientific research and advanced technology development and testing at locations around the world.
Mission examples include atmospheric and earth science, ground mapping, cosmic dust collection, rocket launch support, and test bed operations for future airborne or space borne systems.
The Aircraft
Capabilities
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• Day and night, global operations• Endurance: 6+ hours• Max Altitude: 60,000 + feet• Payloads: > 8,800 lb.
– Nose, Pallet / Bomb Bay, Spear Pods (2x), U-2/ER-2 Superpods (2x)
– Payloads Range From:• Complex Single Instruments Weighing Several Tons• Many Small Instruments Working Independently
History
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English Electric Canberra•1944 British Air Ministry RFQ + English Electric design•1949 First Flight, retired 2006 (RAF)
Glenn L. Martin B-57 Canberra / Night Intruder•Built under license 1953 – 1957 •Flew missions during the Vietnam War
General Dynamics RB-57F Canberra•High altitude strategic reconnaissance platform•First flight 23 JUN 1963•Redesigned “WB” 1968
NASA WB-57 History
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• 1968 – First NASA WB-57 - Earth Resources Technology Satellite (ERTS) program (NASA 925)
• 1972 – Second NASA WB-57 (NASA 926)• 1974 – Third NASA WB-57 (NASA 928). Operated by NASA
in support of other US Government Agencies. USAF stands down WB-57F operations
• 1982 – NASA 925 retired• Present Day – NASA 926 and 928 in active service – local
and worldwide. NASA 927 being refurbished to return to flight in 2013 (planned)
Reimbursable Business Model
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WB-57F Program is funded by our customers•Customers
– NASA Airborne Science – Government Sponsored Science– Academia
– Other US Government Agencies– Commercial Entities
•WB-57 Program is healthy, flight rate increasing, fleet expanding
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How NASA turn it’s Legacy WB-57 Program into a Successful Reimbursable Program…
Lessons Learned
1. We Recognized Our Unique Capability
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We have a Unique Aircraft
1. We Recognized Our Unique Capability
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We have Unique Authorityo Authority to self-certify aircrafto There is no OEM participation in our Program
• We do maintenance, operations and certification• Good News – We do it • Bad News – No one to call for help
1. We Recognized Our Unique Capability
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We have a Unique Center– Most People Do Not Associate Aircraft Operations With JSC– JSC Aircraft Fly the Majority of All Flight Hours Flown by NASA– JSC Aircraft Fly Complex and Unusual Missions
1. We Recognized Our Unique Capability
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We have a Unique Kind of Excess Capacity- Payloads Range From Complex Single Instruments
Weighing Several Tons to Many Small Instruments Working Independently
- The payloads we fly are limited only by the customer’s imagination…
1. We Recognized Our Unique Capability
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We have a Unique Team of People
o Committed to the mission
o Committed to reimbursable work
Big Difference:
Government – Get Budget – distribute without skin in the game
Reimbursable – Find the work/Find a Budget – skin in the game
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What is Unique About You? What do you do? What do you offer? Who is on your team? Where are you located? What is your excess capacity?
1. We Recognized Our Unique Capability
2. We Listened to Our Customer
• They want flight services in support of maturing technologies
• They want reliable support (when you go to the airport, you want to get on the plane)
• They want us to make the job of performing their mission as painless as possible
• They want solutions to their problems• In summary: They want Excellent Customer
Service!
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2. We Listened to Our Customer
When talking with a prospective customer consider three questions:
• Is it legal? – Government cannot compete with private industry
• Is it Safe (or can we make it safe)? – What makes it unsafe, what can you do to mitigate risk
• Can you pay?– Remember you are doing this because you have excess
capacity
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2. We Listened to Our Customer
Form Win-Win Agreements with your Customers!!!• Relationships are Essential!• With Government Services, your customers become
your partners• We do not enter into contractual or sub-contractual
relationships, we enter into agreements (In NASA speak, Space Act Agreements) – MOA-MOU with other Government Entities– Space Act Agreements with Commercial Entities
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2. We Listened to Our Customer
Who is your Customer? • What are your customer’s needs, wants, wishes?• The Goal is to satisfy the customers needs and as
many of the wants and the wishes as you can!
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3. We Created a Culture of Commitment
Management Buy-in is Essential• We can’t do it at all without management buy-in• The greater the management buy-in, the greater freedom
we have• What we do to cultivate management buy-in:
– We develop a business case that shows the need– We don’t bring the boss a problem without a solution– Selling excess capacity should relieve budget concerns
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3. We Created a Culture of Commitment
Support Organization Buy-in is Critical• Procurement, Legal, Finance are the big three• Also, Facilities, Security, etc.
– All Internal Agency Support Organizations
• Each is required
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3. We Created a Culture of Commitment
Procurement Organizations:• Be Responsive (don’t just say no)
– Put people in place who are willing to be responsive– Surround the effort with the right contracts and
agreements
• Collaborate with your reimbursable activity – Forecast procurements– Solicit financial support for your procurement activity
• Ask: “Help us help you” – If you want support, show us the money!
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3. We Created a Culture of Commitment
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Procurement’s Goal: Build a “Quick Reaction
Capability”• Requires:
– Team Work– Excellent Communication– Well-Defined Processes– Flexibility– “Yes We Can” Mentality
• Always find a way to meet the customer’s needs• Commitment to the mission – not just risk mitigation
3. We Created a Culture of Commitment
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Current Contracts:– Cost Contracts
• NNJ12JC05C – Aircraft Maintenance and Operational Support• NNJ11JB28C – WB-57 Special Capabilities Support and Engineering Services
– Time and Materials Contracts• NNJ12JB12B – Aircraft Aeronautics and Structural Engineering Services• NNJ12JB11B – Aircraft Mechanical Engineering Services
– Firm Fixed Price Contracts• NNJ11JC84C – WB-57 Aircraft Emergency Egress System Upgrade• NNJ11JC14C – WB-57 High Altitude Flying Helmets
– NASA Interagency Purchase Requests (NIPRs)• 13 Active with US Air Force, Navy, Others
3. We Created a Culture of Commitment
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Current Agreements:• One Space Act Agreement
– Commercial Work
• Three Memorandums of Agreement (MOAs)– Partnerships with Other Government Agencies
3. We Created a Culture of Commitment
Support Contractors • Maintenance personal and Support staff• They must understand that their positions are
dependent on the success of the reimbursable efforts
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3. We Created a Culture of Commitment
What do you do to create a culture of
commitment in your organization?
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4. We Learned to Run the Business
Identifying Costs• Identifying Cost in the Government environment
is challenging
– Identify ALL the Elements of Cost involved– Understand each Element of Cost
• Materials, Labor, Travel, etc.
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4. We Learned to Run the Business
Actively Manage Costs• Manage Cost at the appropriate levels
– Labor resources must be managed, especially in a cost environment
– Materials procurement must be done competitively
• Challenge cost assumptions
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4. We Learned to Run the Business
Price the Work• Develop pricing that covers the TOTAL cost• Establish FULLY burdened rates for all activities
– In Government we are not used to doing this• Develop a pricing model that is accurate, sensible,
and competitive
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4. We Learned to Run the Business
Price the Work• Sudden Death vs. Prolonged Misery
…if you price it too high, you will have no business …if you price it too low, you will die slowly• Price Matters!
– If you don’t buy from me, we both lose money!
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1. We Recognized Our Unique Capability2. We Listened to Our Customer3. We Created a Culture of Commitment4. We Learned to Run the Business
Lessons Learned: How NASA turned its Legacy WB-57 Program
into a Successful Reimbursable Program
QUESTIONS?
Scott A. Stephens Contracting Officer
Kevin J. LesenskiDeputy Program [email protected]
281.244.9664
