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Coast Guard Chief Announces Plans to Overhaul the Service

February 22, 2007
By Eric Lipton
WASHINGTON, Feb. 13 — Acknowledging that the Coast Guard has failed to keep up with changing times, its commandant, Adm. Thad Allen, unveiled a plan Tuesday to restructure its management radically and expand its surveillance efforts along the nation’s coasts.
The overhaul is intended to address mounting criticism of a $24 billion equipment program known as Deepwater, which is replacing or rebuilding most of the service’s large ships, planes and helicopters.
But it is much broader, including revamping the way the Coast Guard manages its response to natural disasters and terrorist attacks, supervises its Atlantic and Pacific fleets, maintains its aircraft and ships and handles its payroll and financial systems.
Some of Admiral Allen’s proposals could be felt by boat owners. He is advocating the mandatory use of devices like the automated identification beacons that are on large ships on smaller commercial fishing vessels and at least some pleasure boats.
The plan reflects changes that have already taken place at the service since 2001 when it assumed a broader antiterrorism mission and has had its budget grow by 50 percent, to $8.6 billion this year.
“We have been running some parts of the Coast Guard like a small business when we are a Fortune 500 company,” Admiral Allen said in a speech on Tuesday to several hundred Coast Guard officials. “We need to evolve with changing times.”
Instead of operating separate Pacific and Atlantic fleets, Admiral Allen said, all 35,000 active duty Coast Guard personnel on the service’s nearly 250 large ships, 1,700 smaller boats, 200 aircraft and 750 shore-side units will now report to a single commander.
A hundred-person operations group will coordinate how specially trained Coast Guard units respond to terror attacks, natural disasters, chemical or oil spills and its war-time assignments with the Department of Defense.
A new deputy commandant for mission support will oversee the design, acquisition and construction of new ships and aircraft and the maintenance of the fleet once they are built, functions that are now managed separately.
That will allow the Coast Guard to avoid giving so much authority for design and construction choices to contractors, like Lockheed Martin and Northrop Grumman, which renovated the first eight trouble-plagued ships in the Deepwater program.
The speech by Admiral Allen was in advance of the release of another scathing report by the Department of Homeland Security’s inspector general on the Coast Guard’s management of its ship procurement program.
The newest report, a copy of which was obtained by The New York Times, confirmed safety complaints that had been filed by a former Lockheed employee, who was so frustrated that his observations had gone unheeded that he posted a Web video to detail them.
The report says that as the former employee, Michael DeKort, had asserted, Coast Guard contractors installed hundreds of cables on 123-foot patrol boats that could cause toxic smoke if they caught fire. The ships are now out of service because of hull breaches. The contractors also installed electronics equipment that was prone to failure in open-sea conditions.
Since 2001, the Coast Guard has become much more of an extension of the military, instead of a service that primarily focuses on safety, with law enforcement playing a secondary role.
“This is not my father’s Coast Guard,” Admiral Allen said. “And my father is in the room.” Admiral Allen’s father, Clyde Allen, served in the Coast Guard and was in the hotel ballroom to hear his son’s speech.
It will be several years before all the changes are made, officials said, but the plan won early praise Tuesday. James L. Hested, the former commanding officer of the Coast Guard yard, said the service needed to go on a bureaucrat diet.
“You will have fewer fiefdoms,” Mr. Hested said.
Representative Elijah E. Cummings, Democrat of Maryland and chairman of the House panel that oversees Coast Guard operations, said he hoped that Admiral Allen had time to complete the work before his four-year tour of duty ended in 2010.
“He has laid out for himself a very tall order,” said Mr. Cummings, who attended the speech. “But I think he can do it.”

Earl Industries gets contract to decommission Kennedy

February 16, 2007

By JON W. GLASS , The Virginian-Pilot
© February 16, 2007

Portsmouth-based Earl Industries LLC's shipyard in Jacksonville, Fla., has won a $15.3 million Navy contract for work to decommission the aircraft carrier John F. Kennedy, homeported in Mayport.

The work, expected to start in late March and end in August, involves deactivating various installed machinery, cleaning tanks and draining fluids such as fuel oil and cooling water.

"It's a nice one for us," said Jerry Miller, Earl's president. "It'll be a good part of our Florida revenue for the year." Three companies bid for the job.

New! TCC Maritime Shipfitting Course

February 15, 2007 Members:
  TCC has developed a new course which is designed to benefit those interested in the shipbuilding industry.  Please view their course registration form, more details, and the TCC contact person in the link below.  Registration has been extended to Saturday, February 24, 2007.  Don't let this opportunity pass you by!  The announcement and registration form for the TCC Maritime Shipfitting Course can be found at the link.

RADM Brooks Fleet Maintenance Brief Rescheduled

February 15, 2007 Emergent operational requirements have forced the postponement of the Fleet Maintenance Brief by RADM Jeff Brooks, Fleet Maintenance Officer, Commander Fleet Forces Command. Coordination with Nauticus and RADM Brooks office has resulted in the presentation being rescheduled for Thursday, February 15th. The briefing will take place at Nauticus beginning promptly at 8:15 AM. Registration will begin at 8:00 AM.

OSHA - VSRA Partnership Signed

February 15, 2007 After over a year of preparation, an important partnership was renewed at the Annual Holiday Luncheon of VSRA. Mr. Leo Edwards, Acting Area Director of OSHA, and Mal Branch, President, VSRA, formally signed the new OSHA - VSRA Strategic Partnership Agreement. This significant event is the culmination of a great deal of work by our Safety Committee and its Chairman, Phil Smith of BAE Systems. Congresswoman Thelma Drake (2nd District, Virginia) and Rear Admiral Clarke Orzalli, Commander Mid Atlantic Regional Maintenance Center, were on hand to share in this momentous event. 13 VSRA member companies completed the rigorous partnership requirements and presented their applications at the signing. The previous partnership agreement between OSHA and the association (then the South Tidewater Association of Ship Repairers [STASR]) was the model for other partnerships throughout the country. The signing of the new agreement marked a very important event in the strengthening relationship between OSHA and the member companies of VSRA. The partnership is established to collective improve the safety performance of all partnership members. It also provides an ideal forum to share ideas and develop processes to "raise the tide" of worker health and safety for the entire ship repair industry.

Where There's Smoke, People Are Getting Fired

January 24, 2007
The following article was sent to VSRA from the HR folks at the Shipbuilders Council of America (SCA).  Some food for thought.
To improve health and cut costs, a large corporation has begun firing smokers. But two attorneys are suggesting a better way.
January is traditionally a month in which people resolve to change their habits. Those who overeat try to diet. Those who disdain exercise suddenly discover the corner gym. And those who smoke ...well, if they work for lawn products maker Scotts Miracle-Gro, they might get fired.
Scotts, with 5,300 workers employed nationwide, has instituted a strict no-smoking policy. Simply put, if you smoke at work or even at home, it can cost you your job. The tool used to find out is tobacco use testing, required of all new hires and done randomly on the existing workforce.
Scotts has proved it isn't kidding around. A Massachusetts worker has already lost his job and is now suing the company.
Firing Smokers Legal in 21 States
He'll likely find, however, that the policy is legal in his and 20 other states, including Scotts' home state of Ohio. The rest prohibit adverse job actions based on use of legal products, including tobacco. Current federal law doesn't mention the issue.
Behind the policy, says Scotts, lie concerns for employee health and for the company's healthcare costs. Management has made it clear it prefers to terminate smoking, not employees. To that end, the company sponsors smoking cessation classes and provides counseling and nicotine patches at no cost to workers.
Scotts' solution may be extreme, but so are the problems of smoking. Studies by the National Business Group on Health calculate that each smoker costs employers nearly $4,000 more in added health insurance premiums and other costs each year than does a nonsmoker. The human toll exacted by cancer and other diseases is far greater... an average of 14 years lost off the average life span.
Is there a legal way to discourage smoking, one that carries more weight than education but that is less drastic than firing?
A Less Drastic Answer than Termination
According to Attorneys Steven J. Friedman and Lisa C. Chagala of the law firm Littler Mendelson, P.C., the answer is yes. It's by providing a reward in the form of lower health insurance premiums for nonsmokers. To do so, however, requires getting around provisions of the Health Insurance Portability and Accountability Act (HIPAA) that prohibit discrimination in premiums based on a health condition. For smoking, however, there is something of a loophole. "HIPAA provides an exception by permitting wellness programs," write Friedman and Chagala, "provided that certain requirements are met."
Those requirements:
1) The "reward" [reduction in premiums] cannot be more than 10% to 20% of the total cost of coverage.
2) The program must be designed to promote health or prevent disease.
3) The program must be available to all similarly situated participants.
4) A reasonable alternative must be available for those for whom it is medically inadvisable to try to meet the standard. The alternative must be disclosed in all program materials.

Executive Director of HRMFFA Speaks

January 17, 2007

Frank Robert, Executive Director of the Hampton Roads Military & Federal Facilities Alliance, addressed the members of VSRA at their monthly membership meeting on Tuesday, January 16, 2007.  The alliance was formed by the Hampton Roads Mayors & Chairs Caucus to correct what was believed to be inadequate preparation for the most recent Base Realignment and Closing (BRAC) process.  Frank Roberts HRMFFA Presentation can be reviewed to gain a better understanding of the alliance's mission.

VSRA Seeks Training Resources

January 12, 2007 The Virginia Ship Repair Association is expanding its initiatives in Workforce Development and Training. To help accomplish our expanded training offerings, we are looking for a few good people to add to our resources list! If you know someone who is retiring or has recently retired from the trades please let us know! We are building a list of instructors, resource experts and outreach staff to help us deploy our mission of becoming the most efficient and qualified ship repair yards in the world! Please have interested individuals contact Josephine Anderson at janderson@virginiashiprepair.org or by phone at (757) 233-7034.

Navy Backed Survey of HexChrome

January 11, 2007 Northrop shipyard to lead survey on rules for use of chemical By JON W. GLASS, The Virginian-Pilot © January 11, 2007 Since November, shipbuilders and repair yards in Hampton Roads and elsewhere have had to meet tougher federal rules for limiting worker exposure to a known cancer-causing chemical found in some hull paints, stainless steel and chrome plating. Now shipbuilder Northrop Grumman Newport News is taking the lead on a Navy-backed survey to develop industry wide guidance on the best ways to meet the standards. The goal is to save taxpayers money while keeping workers safe. The project is one of 16 recently selected for financ ing by the National Shipbuilding Research Program, a Navy-supported collaboration of 11 U.S. shipyards working to find ways to lower the cost of building and repairing military ships. “The purpose of the survey is to compare best practices and determine which may be the most efficient and economical while making sure workers are protected,” said Jim Thornton, director of environmental health and safety for the Newport News yard. “It’s to get the industry on the same page.” The Occupational Safety and Health Administration issued stricter rules last year to limit exposure to hexavalent chromium, a chemical used as an anti-fouling agent in some hull primer paints and as a hardening agent in stainless steel. Shipyard welders in particular could be vulnerable to inhaling the chemical while heating stainless steel without proper precautions. The chemical is known to cause lung cancer and ulcers of the nose and skin. The $50,000 survey of industry best practices is being paid for from the Navy’s research and development budget, said Jim House, technical director of the national shipbuilders group, based in Charleston, S.C. In another project, employees in the Virginia Beach office of O’Brien & Gere, a national engineering firm, will play a role in developing an oil-spill prevention guidebook intended to help shipyards comply with updated Environmental Protection Agency rules. The Navy also is pay ing for that $38,000 project. Reach Jon W. Glass at (757) 446-2318 or jon.glass@pilotonline.com.

DHS Issues Final Rule on TWIC

January 11, 2007 January 3, 2007 TSA Public Affairs: (571) 227-2829 U.S. Coast Guard Public Affairs: (202) 372-4620 DHS ISSUES CREDENTIALING RULE TO SECURE ACCESS TO U.S. PORTS WASHINGTON – The Department of Homeland Security (DHS) today announced the issuance of the final rule for the Transportation Worker Identification Credential (TWIC) program, which enhances port security by checking the backgrounds of workers before they are granted unescorted access to secure areas of vessels and maritime facilities. The rule was posted publicly on TSA’s web site Jan. 1, 2007 and has been delivered to the Federal Register for posting in the coming days. The rule lays out the enrollment process, disqualifying crimes, usage procedures, fees and other requirements for workers, port owners, and operators. These guidelines allow the industry, government and public to prepare for the implementation of this important security program. The Transportation Security Administration (TSA) and the U.S. Coast Guard held four public meetings around the nation and received more than 1,900 comments regarding the initial draft of this federal rule. Comments were filed by workers, port facility owners and operators, small businesses and others who would be affected by the new program. All comments were carefully considered in the development of the final rule. The rule is expected to impact more than 750,000 port employees, longshoreman, mariners, truckers and others who require unescorted access to secure areas of ports and vessels. Specific measures include: • Security threat assessment – TWIC applicants will undergo a comprehensive background check that looks at criminal history records, terrorist watch lists, immigration status, and outstanding wants and warrants. If no adverse information is disclosed, TSA typically completes a security threat assessment in less than ten days. • Technology – The credential will be a Smart card containing the applicant’s photograph and name, an expiration date, and a serial number. In addition, an integrated circuit chip will store the holder’s fingerprint template, a PIN chosen by the individual, and a card holder unique identifier. • Eligibility – Individuals lacking lawful presence and certain immigration status in the United States, connected to terrorist activity, or convicted of certain crimes will be ineligible for a TWIC. • Use – During the initial rollout of TWIC workers will present their cards to authorized personnel, who will compare the holder to his or her photo, inspect security features on the TWIC and evaluate the card for signs of tampering. The Coast Guard will verify TWIC cards when conducting vessel and facility inspections and through spot checks using hand-held readers to ensure credentials are valid. Until card reader technology is tested and a regulation issued on access control, facility owners and operators will not be required to utilize TWIC readers for facility access. • Cost – The fee for TWIC will be between $139 and $159, and the TWIC cards will be valid for 5 years. Workers with current, comparable background checks including a HAZMAT endorsement to a commercial driver’s license, merchant mariner document or Free and Secure Trade (FAST) credential will pay a discounted fee, between $107 and $127. The exact amount of the fee will be established and published once an enrollment support contract is finalized in early 2007. A subsequent Federal Register Notice will be issued at that time. • Biometric data – Applicants will provide a complete set of fingerprints and sit for a digital photograph. Fingerprint checks will be used as part of the security threat assessment. Fingerprint templates extracted from the biometric data will be stored on the credential. Specific measures include (continued from previous news article) • Privacy and information security – The entire enrollment record (including all fingerprints collected) will be stored in the TSA system, which is protected through role-based entry, encryption and segmentation to prevent unauthorized use. Employees of a vendor under contract to TSA known as “Trusted Agents” will undergo a TSA security threat assessment prior to collecting biometric and biographic data of TWIC enrollees. All enrollee personal data is deleted from the enrollment center work stations once the applicant completes the process. TWIC enrollment will begin in March of 2007, initially at a small number of ports. The implementation will comply with the schedule established in the SAFE Port Act. Additional TWIC deployments will increase and continue throughout the year at ports nationwide on a phased basis. Workers will be notified of when and where to apply prior to the start of the enrollment period in their given area. After issuance of TWIC cards to a port’s workers has been accomplished, DHS will at each port establish and publish a deadline by which all port workers at that port will thereafter be required to possess a TWIC for unescorted access. While developing the regulation for TWIC in the summer and fall of 2006, TSA completed name-based security threat assessments on port employees and longshoremen. These assessments against terrorist watch lists and immigration data sets were an interim measure and did not include the criminal history records check that will be a part of TWIC. The final rule is available on TSA’s web site at the TSA website and more information on port security is available at the U.S. Coast Guard’s Homeport site by clicking on the Maritime Security link. The 469 page ruling document is available in PDF format at this link.