# Presentation: 732133

- Contractor
- Purchasing
- Council

## How Does DOE Spend Its Money?

_**How Does DOE Spend Its Money?**_
**Total FY-1999 DOE Obligations**

**$ in Millions**

**Other Contracts**
**$2,013 (12% )**

**Site & Facility Management**
** ****Contracts **
**$13,487 (78%)**

**Financial **
**Assistance **
**$1,493 (9% )**

**Interagency**
**Agreements**
**$208 (1% )**

## How Does DOE Spend Its Money?

**$ in Millions**

**Other Contracts**
**$2,013 (13% )**

_**How Does DOE Spend Its Money?**_
**Total FY-1999 DOE Contract Obligations**

**Site & Facility Management**
** ****Contracts **
**$13,487 (87%)**

## How Does DOE Spend Its Money?

**$ in Millions**

_**How Does DOE Spend Its Money?**_
**Breakdown of Total FY-1999 “Other Contract” Obligations**

## Who’s Getting the Business?

**$ in Millions**

**For-Profit**
**Businesses**

**Educational**
**and**
**Nonprofits**

**Foreign**
**Entities**

_**Who’s Getting the Business?**_
** ****FY-1999 Contract Obligations **
**[Other Contracts]**

## Who’s Getting the Business?

** ****FY-1999 Contract Obligations **
**[Site & Facility Management Contracts]**

**$ in Millions**

**For-Profit**
**Large **
**Businesses**

**State**
**Educational**
**Institutions**

**Other**
**Nonprofits**

##   A Report on Innovations in Purchasing by Department of Energy Contractors

**“****Exceeding Expectations”**

## Cultural Changes

## Interrelationships 

_**Interrelationships**_

**Customers**** **

**Compliance**

**Cost**

**Culture**

## DEAR Reduction(1993 - 1996)

## Acquisition Order Reduction(1993 - 1996)

## Major Competitions

## Compliance

**1994**

**2000**

**Value-**
**Based**
**Self-**
**Assessment**

**Compliance-**
**Based**
**Transactional**
**Reviews**
**(CPSR)**

**Balanced**
**ScoreCard**

**1995**

## Slide 14

## Competitive Subcontracts

## Cost Cutting Examples

-        **97% reduction in cycle time for low dollar purchases resulting in annual cost savings of $1.6 million**
-        **Total acquisition costs reduced from $23 million to $16.5 million for small purchases**
-        **Reduced cycle time from 21-40 days to 6-10 days with $1.5 million in annual cost savings**

## Cost Cutting Examples

-        **Cycle time reduction on small fabrication orders from 28 days to 5 days**
-        **90% cycle time reduction on low dollar off-the-shelf commodities and 50% cycle time reduction on PC software and maintenance support**
-        **R&D contracting cycle time reduced from 235 days to 90 days**

## Cost Cutting Examples

-        **Architect-Engineering services cycle time reduced from 122 days to 81 days**
-        **Consultant contracting cycle time reduced from 66 days to 28 days and professional service agreements from 66 days to 24 hours**
-        **77% reduction in cycle time for environmental restoration contracts and 70% reduction for technical support services**

## Cost Cutting Examples

-        **Reduced cycle time on purchase requisitioning process from 2 weeks to 17 minutes resulting in annual cost savings of $2.5 million**
**Reduced administrative cost of purchasing operations from $37 million to $25 million annually; reduced staff by 50%; increased production by 57% and decreased paperwork by 44%.**

## P-card Transactions

## Co-located Staff

## Customer Satisfaction

- 4 @ 100%

## Peer Review - System Obligations

## Subcontract Awards as a % of Base

- 0

- 5

- 10

- 15

- 20

- 25

- FY 1995

- FY 1996

- FY 1997

- FY 1998

- FY1999

**%**

## On Time Delivery

## The Next 5 Years?

## Breakout Sessions

- Argonne
- Livermore
- Nevada
- Pantex
- Rocky
- Sandia
- Savannah River

## Breakout Sessions

- New areas of interest/initiatives
- Stretch Goals
- Commitments

_**Barriers & DOE Assistance**_

- Contractor
- Purchasing
- Council