WASHINGTON STATE FERRIES FLEET MODERNIZATION PROGRAM Thursday, May 8, 2014 Brian Evert, Director of New Construction Vigor Industrial

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Eric Morrison, Former Project Controller Vigor Shipyards

BRIAN EVERT BIO Director of New Construction – Vigor Industrial Companies: Vigor Shipyards, Todd Pacific Shipyards, US Navy 30 + years experience in ship construction, repair, shipyard operations Leadership positions -

Director of Program Management Director of Navy Programs Director of Project Development Planning Dept Manager Project Manager Electrical Trade Supervisor

ERIC MORRISON BIO Vice President and Treasurer of AACE – Seattle Section Senior Advisor, Rio Tinto Group - Project Development and Implementation Companies: Vigor Shipyards, Todd Pacific Shipyards, Parsons, KJM & Associates Certifications: CCP, EVP, PMP, CMIT BS Business Administration and Accounting Certificates in Project Management and Construction Management

WASHINGTON STATE FERRIES FLEET MODERNIZATION PROGRAM Agenda •

Introduction to Washington State Ferries – Eric

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Olympic Class Ferries (144-Car) – Brian

• Vessel History • Vessel Specifications and Requirements • Build Strategy • Kwa-di Tabil Class Ferries (64-Car) – Eric

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• Vessel History • Vessel Specifications and Requirements • Construction • Construction Cost and Schedule Control • Questions and Answers

WASHINGTON STATE FERRIES FLEET MODERNIZATION PROGRAM About the Ferry System •

System

• 23 Ferry Vessels • 20 Ferry Terminals • 01 Ferry Maintenance Facility • Passengers • 22 Million Passengers • 10 Million Vehicles • Biennium 2013-2015 Budget Request • Operating $478.6M • Capital $245.9M • $217.0M for vessel construction

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• 11% of total WSDOT Budget

WASHINGTON STATE FERRIES FLEET MODERNIZATION PROGRAM

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Fleet

WASHINGTON STATE FERRIES FLEET MODERNIZATION PROGRAM Aging Fleet +40 Years •

Steel Electrics – Quinault, Illahee, Nisqually, Klickitat

• Built in late 1920s • Retired in 2007 • Evergreen State – Evergreen State, Klahowya, Tillikum • Built in 1950s • Super – Hyak, Kaleetan, Yakima, Elwha • Built in 1960s • Jumbo – Walla Walla, Spokane

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• Build in early 1970s

WASHINGTON STATE FERRIES FLEET MODERNIZATION PROGRAM Fleet Replacement •

Jumbo Mark II – Tacoma, Wenatchee, Puyallup

• Built in late 1990s by Todd Pacific Shipyards • 202 Car / 2,500 Passenger • Kwa-di Tabil – Chetzemoka, Salish, Kennewick • Built in early 2010s by Vigor Industrial • 64 Car / 750 Passenger • Olympic Class – Tokitae, Samish

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• Built in early 2010s by Vigor Industrial • 144 Car / 1,500 Passenger

WSF 144 Car Ferry Build Program

Vessel • Vessel is a diesel propulsion ferry designed to carry up to 144 vehicles and 1,500 passengers • 46 CFR Subchapter H, ABS Rules, inspected by USCG • 17 knot design speed at 80% MCR on two diesel engines • Double-ended vessel design with controllable pitch propellers, high lift rudders • 2 pilot houses with duplicate controls • 2 engine rooms with EMD 3,000 BHP main engines and Detroit Diesel generator sets, Falk reduction gears, interconnecting high speed shaft

Background • Program genesis 2003 as 130 car ferry • Variety of delays, interruptions in process • Joint Single Proposal accepted • Negotiated Design–Build Contract executed - December ‘07 • Negotiated contract partnership between WSF, SY • 1st ferry ordered and NTP issued November `11

Build Strategy Overview • Fabrication of structure • Hull at Vigor Seattle • Ends at Jesse Engineering Tacoma • Superstructure at Nichols Bros Boat Builders Whidbey Island • Join all at Vigor Seattle

• Launch by undocking • Significant subcontracts • WSF furnished propulsion equipment and controls package, including tech support

Schedule Overview- 1st Vessel • Delivery 27 months from NTP • ~3 months engineering, material order • ~24 months build, outfit, test, deliver

Planning, build strategy, schedule • • • •

Integrated process during functional, detailed design phases Build decisions implemented affect design Structure Modular Construction

All Vessel Units Unit 94

Unit 91 Unit 82

Unit 92 Unit 81 Unit 95 Unit 62 Unit 70

Unit 43

Unit 93 Unit 61

Unit 42

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Unit 71 Unit 50

Unit 72

Unit 41

Unit 22 Unit 51 Unit 30

Unit 52

Unit 21 Unit 31

Unit 10 Unit 32

3 3

Unit 11

Unit 33

Unit 12

Hull Units

Unit 23

Unit 22

Unit 21

Unit 10

Unit 11

Unit 12

Unit 13

Planning, build strategy, schedule • Develop fabrication and erection schedule • Systems

Planning, build strategy, schedule • Outfitted, painted units transported to building hall and erected

Planning, build strategy, schedule • Unit flip prior to erection

Planning, build strategy, schedule • Systems installation continues in building hall as units are erected and hull takes shape

Planning, build strategy, schedule • Similar processes ongoing at Jesse Engineering and NBBB as they separately fabricate the vessels ends and superstructure respectively. • Vessel ends and superstructure are loaded and barged to Harbor Island to be loaded on the hull as scheduled • Vessel ends erected onto hull prior to rollout to dry dock

Planning, build strategy, schedule • Completed hull is rolled out to dry dock • Completed superstructure in one grand block is delivered by barge • Superstructure with transport barge lifted on second dry dock and transferred to hull via bridge between two dry docks • Underwater hull and machinery are completed in dry dock • Completed vessel structure is undocked • 6 months pierside to complete equipment installations, system installations, passenger accommodations outfitting, connection of all systems, testing and commissioning

Project Start Up @ NTP • Assemble production and management team • Procurement - Order • Engineering detail design development and drawing deliverables ongoing through construction, developed by unit, issued sequentially in support of schedule • Steel plate ordered cut by unit as part nests developed • Piping ordered by unit

Construction • Construction process • Erection in build hall, first half • Rollout, turn, return to building • Erect second half • Rollout to dry dock • Load superstructure

• 3 months dry dock period • Undock

Dry Dock Period

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Complete all underwater work

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Installation of shafts, propellers

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Installation of rudders

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Paint underwater hull, exterior superstructure

6 Month Pierside Period • Completion of systems • Completion of habitability spaces • Sea Trials • Delivery in 2nd Qtr 2014

WSF 64 Car Ferry Build Program

Vessel • Vessel is a diesel propulsion ferry designed to carry up to 64 vehicles and 750 passengers • Based on 76-Car Island Home Ferry serving Martha’s Vineyard • 46 CFR Subchapter H, ABS Rules, inspected by USCG • 15 knot design speed on two diesel engines • Double-ended vessel design with controllable pitch propellers (last two vessels) • 2 pilot houses with duplicate controls • 2 engine rooms with EMD 3,000 BHP main engines • 274 foot length by 64 foot beam • 4,600 tons and 1,500 ton displacement • Three Vessels in Class • Total Budget: $213.2M

Background • Program genesis 2007 following retirement of Steel Electrics and need for a Port Townsend-Keystone run replacement • RFP issued and procurement cancelled for a 50-Car replacement • Design and intent to build 64-car ferries announced in April 2008 • RFP issued September 2008 • Award issued for $65.5M in December 2008 to Todd Pacific Shipyards – the 99th Hull. • 18-month final design and construction • Additional RFP for two vessels issued August 2009 • Award issued for $114.1M in October 2009 to Todd Pacific Shipyards - the 101st and 102nd Hull.

Planning, build strategy, schedule • Todd Pacific Shipyards: Hull Structure • Jesse Engineering: Ends • Nichols Brothers Boat Builders: House • Everett Shipyards: Outfitting • MD Marine Electric - Electric

Contract Management Contracting • Fixed Price • Change Management Process • Requirements Management – Apprentice, Prevailing Wage, ITP Subcontracts • Contract Flowdown • Managed by the Project Team Relationships and Communication • Monthly Progress Reports and Meetings • WSDOT Dispute Resolution Board • Public Website Contract Communication Tools • Contract Reports / Condition Found Reports • Non-Conforming Service Notices

Project Controls Schedule and Cost Controls • Enterprise Resource Planning Systems • Industrial and Financial Systems (IFS)

• Work Breakdown Structure • IFS Project System • Developed Ship Building System • Subcontractor Integration

• Scheduling • Planning and Integration – Assembly Diagrams • Primavera Project Planner (v3.1) and P6 (v7.0)

• Standardized Reporting • • • •

Weekly Progressing Production Reports Trackers – Material, Cable, E&I, Pipe Revenue Recognition

• Earned Value Management System (EVMS) • ANSI/EIA-748 Compliant / Navy Approved

Project Controls Production Reports • Hour and Rate Control • Management Hours • Overtime and Double Time Control • Closed Activities

• Production Control • Organized By Workstation • Hundreds of activities, organized by units and zones, tied to schedule • Percentage earned based on time

• Metrics • Current Period Earned, Actual, CPI, ETC, BTC Current EAC, WS EAC • Reporting Period Earned, Actual, CPI, BTC, Current EAC, WS EAC

• Workstation Trending • By Steel Fab, Steel Erection, Electrical, Pipe, Paint

Project Controls

Project Controls Earned Value Management • ANSI/EIA-748 Compliant • Navy Approved • Detailed levels of control • • • • •

Revenue and cost loading on control account Report all levels of the WBS Structuring: Direct and Indirect Costs Cost Types: Labor Hours, Labor $, Material $, Subs $ Rules of Earning and Progressing

• Integrate Changes – Baseline Management • Produce Progress Payment Requests

Project Controls Earned Value Management

Project Controls Earned Value Management

End Washington State Ferry Public Website http://www.wsdot.wa.gov/Projects/Ferries/64CarFerries/ http://www.wsdot.wa.gov/projects/ferries/144carferries/ Contracts http://www.wsdot.wa.gov/Ferries/Business/Contracts/search/brow se?category=6&fiscalYear=&awarded= Question and Answer