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  1. 1. Procurement Dave Paveglio, Contract Administrator NSLS-II PAC Meeting May 25, 2007
  2. 2. Outline <ul><li>Procurement Staffing </li></ul><ul><li>Acquisition Strategy </li></ul><ul><li>Advance Procurement Planning </li></ul><ul><li>DOE Approval Requirements </li></ul><ul><li>Major Equipment Procurement Process </li></ul><ul><li>Building Construction Procurements </li></ul><ul><li>Procurement Challenges </li></ul><ul><li>Summary </li></ul>
  3. 3. Procurement Staffing
  4. 4. Staffing by Fiscal Year Procurement Category Assumptions FY07 OPC FY 07 FY08 FY09 FY10 FY11 FY12 FY13 Overall OPC Funding begins 10/1/2006                   CD1 with PED funding beginning 1/2007                 Labor Manager 440 1320 1760 1760 1760 1760 1760 1760 (in hrs) Compliance Manager (Pearman) at 50% 0 660 880 880 880 880 880 440   Contracts Specialist (Paveglio) 4/1/2007   880 1760 1760 1760 1760 1760 1760   Contracts Specialist (Woods) 12/2/06 293 1173 1760 1760 1760 1760 1760 1760   Contracts Specialist starting 10/1/2007     1760 1760 1760 1760 1760     Buyer starting 10/1/2007     1760 1760 1760 1760 1760 880   Buyer starting 10/1/2007     1760 1760 1760 1760 1760     Total Hours 733 4033 11440 11440 11440 11440 11440 6600   Total FTEs 0.42 2.29 6.50 6.50 6.50 6.50 6.50 3.75 Materials Contractor (Miller) to advise on procurement 6250 18750 25000 25000         Materials $10K per year for the Group 3750 11250 10000 10000 10000 10000 10000 5000
  5. 5. Acquisition Strategy <ul><li>NSLS-II Acquisition Strategy Document </li></ul><ul><ul><li>In accordance with DOE Directive M 413.3-1 </li></ul></ul><ul><ul><li>DOE Approved Procurement System </li></ul></ul><ul><li>NSLS-II Project Team includes: </li></ul><ul><ul><li>Dedicated Procurement Manager </li></ul></ul><ul><ul><li>Dedicated procurement support (2 nd quarter FY07) </li></ul></ul><ul><ul><li>Procurement quality support </li></ul></ul><ul><li>Use of Full and Open Competition with Qualified Sources to the maximum extent possible </li></ul>
  6. 6. Procurement Strategy <ul><li>Advance Procurement Planning </li></ul><ul><li>Procurement Planning and Communication </li></ul><ul><ul><li>Advanced Procurement Planning (SNS model) Procurements over 100k or Risk Significant </li></ul></ul><ul><ul><li>Procurement Milestone Plans developed </li></ul></ul><ul><ul><li>Procurement schedules include consideration for procurement methods and approval requirements </li></ul></ul><ul><ul><li>Procurement schedule and status reports to track procurement activities (SNS model) </li></ul></ul><ul><ul><li>Close Communication with Project and Technical Staff </li></ul></ul><ul><ul><li>Communication with Procurement Counterparts from other DOE Laboratories </li></ul></ul>
  7. 7. DOE Approval Requirements <ul><li>DOE-BHSO </li></ul><ul><ul><li>Advance Notice for sole source procurements > $100K </li></ul></ul><ul><ul><li>Buy American Act waivers > $100K </li></ul></ul><ul><ul><li>Procurements > $5M </li></ul></ul><ul><li>DOE- CH Procurements > $10M-25M </li></ul><ul><li>DOE-HQ Procurements > $ 25M </li></ul>
  8. 8. Major Equipment Procurement <ul><li>Major Equipment Acquisitions Time Phased to Correspond with the Project Schedule </li></ul><ul><li>Procurement Strategies Established as Equipment Requirements Reach Maturity </li></ul><ul><ul><li>Advanced Procurement Plans established with Requisitioners </li></ul></ul><ul><ul><li>Major equipment acquisitions reviewed by NSLS-II Division Directors </li></ul></ul><ul><ul><li>Close coordination during specification preparation to identify key functional requirements </li></ul></ul>
  9. 9. Major Equipment Procurement <ul><li>Procurements Utilize Request for Proposal “ Best Value ” (RFP) Method </li></ul><ul><ul><li>Specifications supported by Functional Requirements </li></ul></ul><ul><ul><li>Schedule and Contractor Performance - Integral Part of Proposal Evaluation Criteria </li></ul></ul><ul><ul><li>Evaluation criteria developed through close coordination with Requisitioners </li></ul></ul><ul><li>Procurements Publicly Announced on the FedBizOps Website </li></ul><ul><ul><li>Maximize competition </li></ul></ul><ul><ul><li>Develop New Sources </li></ul></ul>
  10. 10. Fiscal Year 07 Major Procurements <ul><li>Description Amount RFP Award Comments </li></ul><ul><li>A/E $15M 8/4/06(a) 6/29/07 on schedule </li></ul><ul><li>C/M Agent $4.5M 5/07 7/07 on schedule </li></ul>
  11. 11. Fiscal Year 08 Major Procurements <ul><li>Description Amount RFP Award Comments </li></ul><ul><li>Site Clearing 2.75M 8/08 10/08 Funding ? </li></ul>
  12. 12. Fiscal Year 09 and 10 Major Procurements <ul><li>Description Amount RFP Award Comments </li></ul><ul><li>Linac 5M TBD FY09 FY 08 Planning </li></ul><ul><li>Storage Ring Mag 19M TBD FY09 FY 08 Planning </li></ul><ul><li>Vacuum System 20M TBD FY09 FY 08 Planning </li></ul><ul><li>Power Supplies 13M TBD FY09 FY 08 Planning </li></ul><ul><li>RF Cryogenics 5M TBD FY10 FY 09 Planning </li></ul><ul><li>Wiggler Magnets 8M TBD FY09 FY 08 Planning </li></ul><ul><li>Ring Building 154M 9/08 02/09 FY 07 Planning </li></ul><ul><li>Chilled Water 12M TBD FY09 FY 08 Planning </li></ul><ul><li>RF Cavities 6M TBD FY09 FY 08 Planning </li></ul><ul><li>Process Water 6M TBD FY09 FY 08 Planning </li></ul><ul><li>Compact Booster 13M TBD FY09 FY08 Planning </li></ul>
  13. 13. <ul><li>Conventional Construction is planned as a Request for Proposal </li></ul><ul><li>&quot;Best Value ” procurement. </li></ul><ul><ul><li>Comparative weighing of the evaluation factors and sub-factors identified in the Request for Proposal (RFP). </li></ul></ul><ul><ul><li>Employs a trade off process permitting award to other than the low priced offeror or to the highest technically rated offeror. </li></ul></ul><ul><ul><li>Involves selecting the most advantageous offer based upon an integrated assessment of both non-cost/price factors, taking in their assigned relative importance. </li></ul></ul><ul><ul><li>Greatest overall cost/performance benefit to the Project and DOE. </li></ul></ul>Conventional Construction Procurement
  14. 14. <ul><li>Draft Evaluation Criteria </li></ul><ul><ul><li>Experienced Project Manager and Superintendent </li></ul></ul><ul><ul><li>Specialized large complex project experience and technical competence </li></ul></ul><ul><ul><li>Abilities in overall project coordination and management </li></ul></ul><ul><ul><li>Past performance on contracts of similar complexity in terms of cost control, quality of work, and compliance with performance schedules; </li></ul></ul><ul><ul><li>Experience and qualifications of proposed subcontractors </li></ul></ul><ul><ul><li>The volume of past and present workloads </li></ul></ul><ul><ul><li>Safety record better than Industry Average </li></ul></ul>Conventional Construction Procurement
  15. 15. Procurement Schedule Conventional Construction
  16. 16. Conventional Construction Schedule <ul><li>Draft Request for Proposal (RFP) 6/07-8/07 </li></ul><ul><li>A/E Delivers Title I 10/07 </li></ul><ul><li>Draft RFP to DOE BHSO 11/07 </li></ul><ul><li>DOE Procurement Validation Review 1/08 </li></ul><ul><li>Draft RFP issued to industry 3/08 </li></ul><ul><li>Industry Feedback 4/08-5/08 </li></ul><ul><li>A/E Delivers Title II 9/08 </li></ul><ul><li>Finale RFP Issued 10/08 </li></ul><ul><li>Contract Award 2/09 </li></ul>
  17. 17. Procurement Schedule Conventional Construction <ul><li>NSLS II Project must achieve the Critical Construction Schedule Award Date of February 31, 2009. Progressive and parallel reviews of draft documents, Comment Resolution and team work between NSLS II Project and DOE is essential in meeting this mission critical schedule need. </li></ul><ul><li>November 2007 </li></ul><ul><li>Draft Request for Proposal, Contract , Terms and Conditions and Title I Design submitted to DOE. </li></ul><ul><li>January 2008 </li></ul><ul><li>DOE Procurement Validation Team charged with reviewing Draft Procurement Documents </li></ul><ul><li>Team Representation: </li></ul><ul><ul><li>BHSO </li></ul></ul><ul><ul><li>DOE (CH) </li></ul></ul><ul><ul><li>DOE (HQ) </li></ul></ul>
  18. 18. Procurement Schedule Conventional Construction <ul><li>February 2008 </li></ul><ul><li>DOE Procurement Validation Team Feedback: </li></ul><ul><ul><li>Review and incorporate comments from Validation Team </li></ul></ul><ul><ul><li>Issue a Matrix indicating the comments issued and actions taken </li></ul></ul><ul><li>March 2008 </li></ul><ul><li>Draft RFP issued to prospective offerors to industry for initial feed back on Procurement Documents . </li></ul><ul><li>April 2008 </li></ul><ul><li>RFP comments received from industry </li></ul><ul><li>Expectations include but are not limited to the following: </li></ul><ul><ul><li>Expression of interest will be known </li></ul></ul><ul><ul><li>Evaluation Criteria validated </li></ul></ul><ul><ul><li>Schedule Validated </li></ul></ul><ul><ul><li>Project success/ feasibility validated </li></ul></ul><ul><ul><li>Constructability feedback </li></ul></ul>
  19. 19. Procurement Schedule Conventional Construction <ul><li>May 2008 </li></ul><ul><li>Draft RFP and Industry feedback shared with A/E and CM </li></ul><ul><li>NSLS-II Procurement group begins final RFP development </li></ul><ul><li>September 2008 </li></ul><ul><li>A/E delivers final Title II Design </li></ul><ul><li>October 2008 </li></ul><ul><li>Final RFP issued to industry </li></ul><ul><li>November 2008 - December 2008 </li></ul><ul><li>Proposals received, evaluated, firm selected and contract documents prepared for DOE. </li></ul><ul><li>December 2008 - January 2009 </li></ul><ul><li>DOE reviews/approves Contract Award </li></ul><ul><li>February – 2009 </li></ul><ul><li>BSA makes award </li></ul>
  20. 20. Major Procurement Challenges <ul><li>FY 07 </li></ul><ul><li>Establishing Advance Procurement Plans for FY 07 R&D </li></ul><ul><li>A/E Planned Award June 29, 2007 </li></ul><ul><li>Construction Management Planned Award July 07 </li></ul><ul><li>FY 08 </li></ul><ul><li>Establishing Advance Procurement Plans for FY 08 and 09 </li></ul><ul><li>Site Clearing, Planned Award 10/08 </li></ul><ul><li>Completion of A/E Design, Planned completion 8/08 </li></ul><ul><li>General Construction Ring Building Planned RFP 9/08 </li></ul>
  21. 21. Summary <ul><li>Acquisition Strategy has been developed </li></ul><ul><li>Procurement Integrated into the Project Team with dedicated Procurement Management </li></ul><ul><li>Procurement Staffing Plan established </li></ul><ul><li>Advance Procurement Planning Process </li></ul><ul><li>Procurement schedule includes consideration of procurement methods and required approvals </li></ul><ul><li>Procurement Plan for critical path conventional construction established </li></ul>