Newsletter: April/May 2007 Newsletter

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May General Membership Meeting

We are pleased to welcome Dr. Steve Jones, Superintendent, Norfolk Public Schools, as our speaker at the May VSRA General Membership Luncheon on Tuesday, May 15th.  As the leader of the winner of the Broad Award, given to the top urban school system in the United States, Dr. Jones is focused on the goal of reaching World Class status by the year 2010.


VSRA has a close working relationship with the Norfolk Public Schools, as well as other city school systems in Hampton Roads.  Our ship repair industry needs a steady flow of qualified graduates to renew our workforces for the future.  To that end, we are working with the schools to increase student understanding of the great career opportunities available in ship repair.


VSRA members volunteer to represent our industry at career fairs at elementary, middle and high schools.  To date, we have touched over 2000 students in 2007.  We have also just completed a pilot LEGO competition with Blair Middle School.  Dr. Jones has been very supportive and encouraging in both efforts.


Come and hear his plans for the future of Norfolk Public Schools and his vision of preparing his students for careers in ship repair.

Dr. Jones'  biography may be found at http://www.nps.k12.va.us/admin/super.htm.

 

Featured Committee - Quality Assurance

The Quality Assurance Committee is one of the founding committees of the South Tidewater Association of Ship Repairers (STASR). It was started in 1984 and was chaired by Carl Cherry. The committee was instrumental in bringing ship repair quality managers together to the benefit of the ship repair industry. Two of the major accomplishments in the early days were the Subcontractor Quality Audit Program and the Procedure for Transfer of Welders Qualification. These vital processes are still in effect today.
Carl relinquished the chair upon his retirement to Pat Horan in 1993. Pat chaired the committee until his retirement in 1998. Mike Dunn has been the committee chair since that time.
The committee meets on the second Tuesday of each month from 10:15 to 11:15. The committee continues to be a driving force in the improvement of the quality of the ship repair industry. Through the Quality Committee, there have been many changes in standards and procedures to the benefit of the industry and our community. By working together with local Governmental representatives, we have standardized many processes, i.e., Standardization of Weld Procedure Format, P-1 Piping Procedure, Standardized Cofferdam Procedure, Diesel Engine Flush (now a Supship Drawing), WAF Process, and PCP for Critical Coated Areas; Reduction in the number of PCP’s within NAVSEA Standard Items; Development of the NACE Equivalent Course and Instrumental in the change of Quality Systems from Mil-I-45208 to ISO 9000.
The Quality Assurance Committee is an excellent resource for remaining up to date with the various government quality standards. It is also a great forum in which to discuss issues and/or opportunities that may arise within our community so that we can respond and quickly resolve them.

Lego Competition Results Are In!

 

The first annual VSRA LEGO Competition concluded the morning of Tuesday, April 24 at Nauticus, with two teams from Blair Middle School in Norfolk facing off.  Each team had been preparing for this day since October.  Over the interim period, they researched ship designs and the occupations in the ship repair industry necessary to maintain ships.

With the research, the teams utilized LEGO freeware to design a ship or ship component.  The rules of the competition required an innovation be included in the design that was not found in the research.  Written reports were prepared, as well as PowerPoint presentations.  On Tuesday morning, each team presented their design to a team of four expert judges.

The Techno Geeks were the first team to present.  The team consisted of 6th and 7th graders, led by Mr. Paul Abramson, a Blair teacher.  Their design was of a ship's Commanding Officer’s (CO’s) Quarters.   Using the LEGO design software, the team chose the specific LEGO pieces to develop their model of the cabin.  The innovation in their design was a "touch panel" that could be used by the CO to control all the systems on his ship from his quarters. 

The Robotics Team was the next team to make their presentation.  The team was led by Nanette Dean, the robotics teacher from Blair.  Their design was of a cargo ship.  As with their sister team, the LEGO software was used to create their ship.  In addition, the team constructed LEGO models of container cranes and a truck to move the containers that were used in their presentation.  The Robotics Team innovation was "Spi-pod", a robot that would roam the ship with sensors to detect explosives or other hazardous cargo.  "Spi-pod" was constructed from LEGO pieces and fitted with a functioning robotics devise, which was demonstrated as part of the presentation.

The judges had a very difficult time choosing a winner.  But in the end, using objective numerical scoring mechanisms, the Robotics Team  "eeked" out a win.  In fact, both teams were WINNERS!  The energy, imagination, and unbridled enthusiasm were extraordinary.  The success of this first competition is a testament to the team members, their teacher leaders, and Principal, Sarah McKown. 

In recognition for the win, the Robotics Team design will be sent to LEGO, where it will be kitted and returned to the team to build - creating their own trophy for display at Blair.  In addition, each team member will receive a ticket to Nauticus.  Blair Middle School received a $500 check from the Virginia Ship Repair Foundation. 

In closing the event, it was announced that next year's competition would involve at least four middle schools in Norfolk, with the goal of including all middle schools in Hampton Roads in the future.

The Jones Act and Ship Repairers – A Perspective By Ron Ritter, Senior Vice President, Earl Industries, LLC

Of the many tankers, container ships and other bulk cargo commercial vessels that ply the waters of Hampton Roads, did you ever wonder if any of these vessels receive repairs or conversions at Hampton Roads shipyards? The answer is not many, even though a good number of these ships are flagged in the United States, have U.S. citizen crews, and receive preferential treatment in the carrying of inter-U.S. coastal cargo. Under what is called “The Jones Act” (http://www.admiraltylawguide.com/courts.html), most of the repairs and/or conversions of these U.S.-flagged vessels should be conducted exclusively in U. S. shipyards. However, due to liberal interpretations of the law, these ships are being repaired and, in some cases, rebuilt overseas in such distant countries as Mainland China, South Korea, and Singapore. 
 
This is not just a Hampton Roads issue. Throughout the country, U.S.-flagged vessels are being routinely repaired and rebuilt overseas at a lost work value of, by some conservative estimates, $150 million already under contract in foreign shipyards and another $230 million potentially to be placed in the near term. An argument could be made that economic reasons are driving ship owners and operating companies to seek repairs overseas.   It is certainly, in pure dollar terms, less expensive to drydock, repair, rebuild, or convert a ship overseas than in the United States.   However, these overseas yards are often subsidized by their governments and do not have to meet the stringent and costly safety and environmental rules legitimately imposed on U.S. shipyards. But, beyond the economic implications, there are historic and strategic reasons why these repairs should and are legally required to be conducted in U.S. shipyards.
 
For nearly two hundred years, it has been the maritime policy of the United States to require that vessels operating in the domestic, coastwise trade be built/rebuilt/repaired in the United States. Our Founding Fathers invoked this policy in the second act passed by the country’s fledgling Congress (Act of March 1, 1817, Chapter 31, Stat. 351). A major reason for this restrictive policy (now referred to colloquially as The Jones Act), renewed and reaffirmed over the years, has been the preservation of an adequate U.S. shipbuilding and ship repair industry, which is essential to national defense. Certain provisions of the Jones Act require that vessels issued an endorsement for coastwise trade must be constructed in the United States and that all “major” components must be fabricated in the United States. The Act further provides that, if that vessel is later rebuilt outside the United States, it may not thereafter engage in the coastwise trade. A vessel is deemed under the law to have been rebuilt in the United States only if the entire rebuilding, including the construction of any “considerable part” of the hull or superstructure, is accomplished in the United States.  Conversely, a ship is considered rebuilt foreign when any “considerable part” of its hull or superstructure is built upon or substantially altered outside the United States.
 
While the above statutory requirements governing construction and rebuilding of Jones Act-eligible vessels seem straightforward, the U.S. Coast Guard, the agency responsible for implementing and overseeing the Jones Act, has issued regulations and rulings that have, over time, provided exceptions to the law. For example, there are Coast Guard rulings that provide that foreign-constructed components to the hull and superstructure of new build ships must be less than 1.5% of that vessel’s total steelweight, thus defining “major” as only those structures over 1.5% of the steelweight of the vessel. The Coast Guard’s regulations regarding rebuild requirements provide that a vessel is deemed rebuilt when work performed on its hull or superstructure constitutes more than 10% of the vessel’s steelweight. Since the eligibility of vessels under the Jones Act for coastwise trade is based on the definition of “rebuild”, an owner or operator can have significant work performed on their vessels overseas and still maintain the lucrative Jones Act eligibility under the Coast Guard’s regulations and rulings. Also, the 10% ceiling on steelweight modifications is not cumulative but applied to each “visit” to a foreign shipyard. Thus, a U.S. flagged, Jones Act ship, which can legitimately perform in both domestic and foreign markets, may conveniently visit a foreign yard repeatedly to achieve rebuilding and modifications that, in total, exceed the ceiling over a relatively short period of time.
 
Those owners and operators of Jones Act vessels that are having major rebuilding of their vessels (such as the double-hulling required by OPA 90) accomplished overseas are receiving an unfair competitive advantage over their competitors who are following the letter of the law by having their vessels rebuilt in U.S. shipyards. In addition, as our Founding Fathers realized, our nation relies on a strong maritime capability for our economic wellbeing and a sound shipyard infrastructure to support national defense. These essential and strategic capabilities have been eroded, in my opinion, by the regulations and rulings of the Coast Guard that have allowed these U.S.-flagged vessels to enjoy the benefits of the Jones Act while being rebuilt, repaired, and modernized in foreign shipyards. Several affected ship owners/managers have recently brought suit in Federal Court to challenge the Coast Guard rulings, and Congress is being asked to consider legislation that would close the loopholes that are allowing this work to be accomplished overseas. 
 
The Virginia Ship Repair Association and many of its members are closely following these developments. The results of the court cases and the legislative initiatives could have a significant effect on the workload of the Association’s member companies and our economy.

BAE Systems Dedicates New $9.3 Million Pier: Strengthens Ties to Navy Customer By John Kowalczyk

BAE Systems Norfolk Ship Repair formally dedicated its newly constructed $9.3 million Pier 3 in a ceremony on April 12, recognizing a key project in the $70 million of total capital investments in the yard since 1999.  Participating in the event, which a host of senior Navy and local corporate officials attended, were keynote speaker, Congresswoman Thelma Drake (R-VA); Al Krekich, President, BAE Ship Repair; and Bill Clifford, President, BAE Norfolk Ship Repair.  The catered ceremony took place under a tent at the foot of the pier and was punctuated with a ribbon cutting, which prompted the 200-ton rail-based gantry crane, “Big George,” to blow its horn and roll down the length of the pier. 
 
Nearly a month before this dedication ceremony, on March 15, the 677-foot-long Military Sealift Command ship USNS Leroy Grumman tied up to the new Pier 3, marking the early completion of the massive overhaul project that demonstrates the company’s commitment to re-investing capital for its primary customer, the U.S. Navy.  
 
At 700 feet long on the north side and 500 feet long on the south side, this 2-foot-thick, 50-foot-wide steel-reinforced concrete pier meets stringent Navy mooring standards and is sturdy enough to hold a ship tight against the winds of a Category 2 hurricane. Able to moor a 790-foot-long ship and supply 8000 amps of power (double that of the old pier), this second largest of four piers in the facility can accommodate nearly any size of Navy ship the yard can service. Since 2004, Norfolk Ship Repair has won three multi-ship, multi-option (MSMO) contracts, which allow for work on multiple ships of a given class over several years. 
 
With the relative workload stability these MSMO contracts provide, the company has been able to reinvest capital to improve yard capabilities for the customer. “From a competitive perspective, I wanted to be able to show the Navy I can accommodate all classes of ships at all times,” said Bill Clifford, Norfolk Ship Repair’s president and general manager. “This also gives me the flexibility to do even larger commercial projects.” Last year, Norfolk Ship Repair also spent $2.6 million on improvements to another pier in the yard.
 
Work to create the more safe, efficient and capable Pier 3 began in June 2006 and was originally envisioned to be completed in mid-April.  Eddie Goldman, Facilities and Drydock Manager and the overall project lead, attributed the early finish to a seamless team effort. Eddie, Bob Troupe, Director of Production Support, and Electrical and Mechanical Superintendents, Billy Hoenig and Paul Stokes, commissioned Clark Nexsen Architecture and Engineering to design the pier, which would be built right on top of the old one. With over 100 people working on site on any given day, construction contractor W.F. Magann Corp. of Portsmouth, VA drove over 400 120-foot-long, 18-square-inch concrete pilings down through the cylinders of the previous pier. After pouring 4000 cubic yards of concrete on the structure, the new free-standing pier is now 12 feet above the water, three feet higher than the original.
 
Pier 3 now has an elevated rail-based gantry crane that can move easily along the length of the pier, able to reach any part of a moored ship. The raised rail tracks stay out of the way of equipment and personnel that will crowd the busy pier during a ship’s availability. The pier also contains all of its ship services, such as water, sewage, and oxygen, inside the wider pier structure for easy and efficient access, and the dry power transformers require no oil, making them safer than before. These transformers distribute power evenly to either side of the pier and have enough juice for a ship to “light off” its systems for testing without using its own power.
 
The work posed unique challenges. To mount the 200-ton, eight-wheel crane, appropriately named, “Big George,” on the newly elevated rails, the team had to jack it up five-and-a-half feet. According to Goldman, W.F. Magann consulted the company that several years ago moved North Carolina’s Cape Hatteras Lighthouse inland to make sure there were no errors in this massive feat.
 
Rear Adm. Jeffrey Brooks, director of fleet maintenance for the Navy’s Fleet Forces Command, said the investment is a healthy sign for the industry. “I think BAE has a long-term focus on what their business is, and their business is not solely Navy work,” Brooks said.

While already realizing the immediate benefits of the project, BAE Systems Norfolk Ship Repair is investing with an eye on the future. “One of the benefits of the MSMO contract is a more stable workload,” Clifford said. “We can look out four and five years, and we can plan ahead.” Pier 3 is a big part of that plan. 



VSRA Committee Update

VSRA committee members can access the complete text of all committee minutes by logging onto the VSRA website.  You must be a member of VSRA or invited by a VSRA member company to attend VSRA committee meetings.
 
QA Committee
The committee sent its proposed change to the cofferdam procedure to MARMC. MARMC is concerned about problems in the area of non-destructive testing, and all companies are advised to review their program and correct any deficiencies found. In light of these NDT problems, MARMC will be conducting audits or oversight to G-points concerning P-1 piping procedures and processes. Any proposed changes to standard items are due May 18, 2007. 
 
Safety and Environmental Committee and Worker’s Compensation Committee
The 12th annual VSRA Safety & Health Seminar is scheduled for September 13 at the Ted Constant Convocation Center at ODU. A subcommittee has been formed to revise the VSRA Employee Safety Handbook. Jerry Fulk, with AMSEC, was recognized and received $250 for winning the 4th Quarter Safety Award. His idea resolved a compressed gas storage issue.   Rick Oliver, with Metro Machine Corp., was recognized and received $500 for winning the 2006 Annual Safety Award for his grinder tool gauge. 
 
Human Resources Committee
The committee reviewed and discussed the survey results. The next step for the committee is to update the VSRA roster to be sure they have the H.R. contacts for each member company. Once the contact information is updated, companies will be solicited to see what kind of interest there is in having a half-day “H.R. 101” seminar. 
 
Contracts Committee
The Committee discussed its 2007 training program. On June 25-27, 2007, the American Society of Naval Engineers will hold their annual premier event, ASNE Day. This event will include a formal reception and the presentation of ASNE’s prestigious awards at the Hyatt Regency, Crystal City. For the June Meeting, Pete Schleck, of Bank of America, will conduct a presentation on financing government contract work. Vanessa Nemara briefed the Committee on recent developments with the Coast Guard. The Coast Guard intends to use more requirements type contracts for ship repair and is currently working on solicitations for topside painting and Appleton and Allied Crane maintenance. The Coast Guard is working on combining LANT area and PAC area into LANT area. Jim Stricker of NOAA briefed on NOAA’s current prospects for repair work. NOAA has 18 ships and is currently building 2 more. NOAA has moved to 5 and 10 year budgeting for repair, with an annual budget of $15,000,000-$17,000,000. NOAA is interested in developing a contractor base to work in the Hampton Roads market, particularly, on its new catamaran hull type vessels. 
 
Security Committee
Discussion was held about concerns over delays in obtaining badges to work on government installations. The SAVE Program is a Federal program under the Department of Homeland Security and is the only means available for employers to verify that their newly hired employees are authorized to work in the United States. This program only applies to new hires. Beginning January 2008, only SAVE employees will be permitted to work in the NN and SS sector locations. To register for the program, go to https://www.vis-dhs.com/EmployerRegistration and follow the instructions. In addition to the required employee brief (upon hire), F.S.O.’s need to be continually briefing employees on Adverse Information issues.  The suggestion was brought up to create an ongoing newsletter of pertinent information within your own Company. There are process changes effecting JPAS regarding the Certification pages and Release of Medical Information. They can now be either uploaded or faxed. Revoked clearances will be posted under JPAS Notifications. If there are incident reports on employees and their name shows up in red in JPAS, they will not be able to access red badge areas, even if they have a red badge. If faxed to the appropriate office, the “reader” from the FAX machine will be able to identify the office source and update the data into the JPAS system.
 

Educational Opportunities in May and June

 
National Maritime Day luncheon on 5/22/07
Sponsored by Nauticus, Hampton Roads Shipping Association, Maritime Institute, Old Dominion University, Propeller Club, Port of Norfolk, Virginia Maritime Association, and Virginia Ship Repair Association
yard
COST: $30.00 per person NO PAYMENTS ARE ACCEPTED AT THE DOOR
DATE: May 22, 2007, 12:00
LOCATION: Half Moon Cruise and Celebration Center at Nauticus
This event is being held to highlight and celebrate our broad maritime industry in Hampton Roads.  This will be a great opportunity to network with our elected officials and fellow maritime industry leaders and emphasize the critical part that our ship repair industry plays in the economy of the Commonwealth and the region.
Guest speaker John Vickerman, Founding Principal, TransSystems, “How the Virginia Sea Port Touches You”
Register on line at http://vamaritime.com/Members/eventsmgr/national-maritime-day or fax to 622-9624 by Friday, May 18
 
 
Emergency First Responder/First Aid/CPR/AED Responder Certification
Sponsored by VSRA and Earl Industries (UCC)
COST: $95.00 VSRA members; $115.00 Non VSRA members
DATE: May 24 and June 21, 2007, 7:30am - 4:30pm
LOCATION: United Coatings Corp., 650 Chautauqua Avenue, Portsmouth, VA 23707
Emergency First Responders ~ OSHA Approved/Internationally Accepted
*This certification is a step beyond the Red Cross certification and is more oriented to industrial environments*


NAVSEA Cableway Training and Certification Course
Sponsored by VSRA, AMSEC LLC, and Colonna’s Shipyard
COST: $585.00 VSRA Members; $675.00 Non-VSRA Members
DATE: June 4-8, 2007 8:00am – 4:00pm
LOCATION: Colonna’s Shipyard, 400 E. Indian River Rd., Norfolk, Va. 23523
Upon successful completion of this course, the attendee will receive a NAVSEA Cableway Certification Card.
 
 
NAVSEA Basic Paint Inspector Training (NBPI)
Sponsored by VSRA and MARMC
COST: $495.00 VSRA members; $649.00 Non VSRA members; $250.00 Certification Test Fee (Submitted to SSPC)
DATE: June18-22, 2007 7:00am - 5:00pm
LOCATION: MARMC Building LF-18, Norfolk Naval Base
Submit all documentts to VSRA by 5/29.  Attendance is limited to 25 applicants.
 
 
If you would like to register for a training class, please do so at www.virginiashiprepair.org. If you would like to receive additional information on training classes or have questions, please contact the VSRA office at (757) 233-7034.