Reference no: EM133678377

Homework: Scope Project Management- Change Request Essay Scenario

Overview:

Use scenario presented below to answer the questions in the scenario.

Instructions:

The NNS is currently working with their subcontractor, American Coatings Incorporated, to develop a new anechoic treatment for the hull tiles under modification P0002 dated July 29, 2015. On September 11, 2015, Emmett Smith of NNS discovers a new polymer, which will make the use of sonar-absorbing tiles obsolete. The new hull treatment will only require a coating of this new polymer. Emmett notifies the PCU Delaware's program manager who requests Emmett to write up his new polymer hull treatment as an engineering contract change and request a contract modification. Emmett complies by identifying the classified technical aspects of the new polymer under closed cover and develops a cost estimate of $1,131,000/sub ($3000 per linear foot for a sub that is 377 feet in length and 34 feet in the beam). Emmett also identifies associated cost, schedule, and performance risks with implementing his new innovative hull coating approach. He forwards his engineering contract change proposal to the PM who forwards it to Ms. Biddle, NNS's contracting officer.

Ms. Biddle develops a bilateral contract modification for the proposed change and forwards it to the Navy's Procurement Contracting Officer (PCO) at the Naval Sea Systems Command. The Navy PCO forwards the proposal to the Virginia-class Program Management Office (PMO). The PMO's engineers are intrigued with the innovative proposal. They recognize the potential benefits of not layering their subs with sonar absorbent panels. Using only the hull coating as a shield for enemy sonar detection would significantly reduce the lifecycle costs by 20% (estimated life cycle cost per sub is $7 billion over a 30-year period). This new approach would offset the cost of the tiles currently installed and maintained on each sub. The current tiles cost $840 million and 6 months to initially install. The new coating could be applied in 90 days or less; this could potentially reduce the build time by 3 months. Based upon the proposal, the Navy and their partners could share in the lifecycle savings with a 70/30 split in cost savings. This change is forwarded to the program sponsor, Admiral Johnson.

Admiral Johnson initially likes the proposal but feels the proposed change is technically too risky. The current fleet is already outfitted with the proven existing technology using the hull anechoic coating and tiles. He tells the Navy's PCO and PMO that he does not want these tiles on the PCU Delaware and orders them to tell NNS that this proposal, although innovative and promising, is out of scope for the existing program and contract. The PMO engineers acquiesce, and the PCO notifies NNS that the Navy denies their request for the change.

The NNS's Vice President of the Virginia-class submarines is disappointed, and he and Ms.

Biddle convey the news to the PM and the engineer. The engineer suggests that NNS submit a claim against the government to ask for an official determination of what is within scope and what is outside the scope, especially in light of the recent P0002 modification.

Write a short essay (3 to 5 pages) synopsizing the case and include relevant scholarly practitioner references responding to the following question:

Using your expert judgment, the PMBOK course materials, and other scholarly references, to analyze the situation and describe what actions and decisions you think NNS should take as a result of the current situation. Justify and explain your response(s).