Last month, ships participating in the 28th annual New York City Fleet Week 2016 employed the new fleet-wide process designed to simplify the way in which the Navy works with husbanding service providers (HSP) to procure and pay for services.

Participating ships included USS Bataan (LHD 5), USS Bainbridge (DDG 96), USS Farragut (DDG 99), USS Fort McHenry (LSD 43), and USS Shamal (PC 13).

The Secretary of the Navy initiative, known as Off-Ship Bill Pay (OSBP), began in fiscal year 2016 and streamlines the procurement and bill pay process for all U.S. Navy ships and Military Sealift Command (MSC) vessels.

"Off-ship bill pay plays a significant role in better managing the
husbanding process, especially on the last day of a port visit when a ship is focusing efforts on getting underway," said Cmdr. Mark Rice, supply officer, USS Bataan. "During Fleet Week New York, Bataan met with the Husbanding Agent daily and verified all port costs. On the last day, we summarized these costs and submitted our report to the contracting officer representative. By eliminating the need for shipboard payment via Treasury check, the last hours before leaving a port are far less hectic, and the potential for mistakes is minimized."

Only eight months after OSBP was implemented, the system is in full use throughout the Navy and covers transactions including invoicing, receipt, acceptance, and property transfer (IRAPT) during port visits and removes the treasury check payment obligation from the ship's disbursing officer. OSBP also creates a Federal Acquisition Regulations and Financial Improvement and Audit Readiness compliant process.

"Moving the task order being written by shipboard supply officers to warranted contracting officers at the Fleet Logistics Centers ensures pricing and delivery of services within the scope and terms of the contract," said U.S. Fleet Forces Command HSP Program Manager Tracy Rider. "This eliminates the risks of unauthorized contract modifications. The contracting officer [representatives] work in conjunction with the ship's supply officer to ensure proper administration and management of the HSP contracts."

Deployed units now submit a ship-specific fleet area of responsibility standard logistics request (LOGREQ) vetted and approved by contracting officer representatives (COR) working at the numbered fleet staffs. The requirements are then given to a warranted contracting officer, who submits it to the vendor for pricing and determines a "fair and reasonable" price according to the existing contract.

During a port visit, shipboard personnel designated as receipt inspectors work with the vendor as they receive goods and services requested. At the end of the port visit, the ship's supply officer submits a material inspection and receiving report to the COR. This form used by the COR, along with the contract task order and the vendor's invoice, constitute a three-way match that validates requested and received items.

Payment is processed through IRAPT and funds are certified for payment and electronically transmitted to the vendor's bank account.

Historically, procurement and payment processes for LOGREQs were submitted at the ship level, but now OSBP serves as the way-to-pay for port services.

"With the movement of bill payment off ship and a compliant process that's part of Federal Acquisition Regulations and Financial Improvement and Audit Readiness, we're ensuring accurate receipt quantities are paid at the contracted prices," said Rider. "Any discrepancies are resolved before payment is rendered."

OSBP also standardizes LOGREQs for every type of surface vessel in each area of responsibility worldwide. Removing HSP bill payments from ships and utilizing OSBP efficiently coordinates the purchase of foreign and homeport necessities such as food, potable water, crane and tugboat services, brow set up, and other provisions.

OSBP covers all administrative tasks associated with ordering and paying for husbanding services, and importantly serves as a countermeasure to an overcharge in port service fees as well.

A handful of Navy vessels and fleet logistic centers began testing the OSBP process more than a year ago, then referred to as Procure-to-Pay.

"As exhibited at Fleet Week New York this year, what was once in the testing phase has now become the standard as all our crews employ Off-Ship Bill Pay to effectively monitor the execution of funds used for port visit husbanding goods and services," said Rider.

For more information, visit http://www.navy.mil/, http://www.facebook.com/usnavy/, or http://www.twitter.com/usnavy/.

For more news from Navy Public Affairs Support Element, visit http://www.navy.mil/.