Navy Working Capital Fund - DON FM&C Website

ACTIVITY GROUP CAPITAL INVESTMENT JUSTIFICATION($ in Thousands)Department of the Navy / Base Support / Naval FacilitiesEngineering Service CenterFISCAL YEAR (FY) 2012 BUDGET ESTIMATESFeb-2011#001 - Non-ADPE and Telecommunications Replacement Naval Facilities EngineeringCapabilitiesService CenterFY 2010 FY 2011FY 2012Non-ADPE and Telecommunications EquipmentQuant Unit Cost Total Cost Quant Unit Cost Total Cost Quant Unit Cost Total CostReplacement 1 500 500Productivity 0 0 0 0 0 0New Mission 0 0 0 0 0 0Environmental 0 0Total 1 500 500 0 0 0 0 0 0Justification:The Navy's Deep Ocean Simulation Facility is located at NFESC, Building 1100, in Port Hueneme CA. The facility is comprised of two pressure vessels which are usedto simulate the deep ocean environment, both pressure and temperature. The 72" diameter vessel is capable of applying a static pressure of 5,500 psi and the 24"diameter vessel is capable of applying a static pressure of 15,000 psi. These two vessels allow customers to subject their equipment to a pressurized environmentwhile monitoring and or operating the equipment at the required depth. The vessels are critical to testing equipment prior to deployment in the ocean. Support tothe Navy includes testing of all Deep Sea Rescue Vehicle (DSRV) and deep submergence batteries, fiber optic cables and connectors, electronic bottles that are to beused in the deep ocean environment, ROV's, deep sea lights and cameras as well as many other types of equipment. All is being conducted within the OceanEngineering Business Line; many of the tests result in follow on work for the O BL.Integral to the facility is an overhead bridge crane that is used to load/unload thepressure vessels. In March of 2009, Navy Crane Center (NCC) inspectors informed NAVFAC ESC verbally that due to the age of the crane (+40 years) and the nonavailability of repair parts (manufacturer closed 30 years ago) that this would be the last time the crane could be certified. In short, the crane that supports all workin the facility needed to be removed and disposed of. Without the crane, this unique and vital facility (the only one of its kind west of the Mississippi/one of two inthe country) will have to shut down. The NCC's recommendation is that a new bridge and hoist system be procured and installed. This purchase must be madethrough NCC. They also provided a ROM quote of $500,000.00 for purchase of the new crane, removal of the old unit and installation of the new one. Scaling downthe size of the crane was discussed and found to not be feasible. Rebuilding the crane could run almost $1M due to its age and the unavailability of parts.Exhibit Fund-9B Capital Purchase Justification