# Presentation: 273028

## Procurement

**Dave Paveglio, Contract Administrator**
**NSLS-II PAC Meeting**
**May 25, 2007**

## Outline

- Procurement Staffing
- Acquisition Strategy
- Advance Procurement Planning
- DOE Approval Requirements
- Major Equipment Procurement Process
- Building Construction Procurements
- Procurement Challenges
- Summary

## Procurement Staffing

## Staffing by Fiscal Year

| 1.1.3.5 | 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 |

## Acquisition Strategy

- NSLS-II Acquisition Strategy Document
- In accordance with DOE Directive M 413.3-1
- DOE Approved Procurement System
- NSLS-II Project Team includes:
- Dedicated Procurement Manager
- Dedicated procurement support (2nd quarter FY07)
- Procurement quality support
- Use of Full and Open Competition with Qualified Sources to the maximum extent possible

## Procurement Strategy

_**Advance Procurement Planning**_
**Procurement Planning and Communication**
- Advanced Procurement Planning (SNS model) Procurements over 100k or Risk Significant
- Procurement Milestone Plans developed
- Procurement schedules include consideration for procurement methods and  approval requirements
- Procurement schedule and status reports to track procurement activities (SNS model)
- Close Communication with Project and Technical Staff
- Communication with Procurement Counterparts from other DOE Laboratories

## DOE Approval Requirements

- DOE-BHSO
- Advance Notice for sole source procurements > $100K
- Buy American Act waivers > $100K
- Procurements > $5M
- DOE- CH Procurements > $10M-25M
- DOE-HQ Procurements  > $ 25M

## Major Equipment Procurement

- Major Equipment Acquisitions Time Phased to Correspond with the Project Schedule
- Procurement Strategies Established as Equipment Requirements Reach Maturity
- Advanced Procurement Plans established with Requisitioners
- Major equipment acquisitions reviewed by  NSLS-II Division Directors
- Close coordination during specification preparation to identify key functional requirements

## Major Equipment Procurement

**Procurements Utilize Request for Proposal ****“****Best Value****”**** (RFP) Method**
- Specifications supported by Functional Requirements
- Schedule and Contractor Performance -  Integral Part of Proposal Evaluation Criteria
- Evaluation criteria developed through close coordination with Requisitioners
**Procurements Publicly Announced on the *****FedBizOps *****Website**
- Maximize competition
- Develop New Sources

## Fiscal Year 07 Major Procurements

- _Description_             _Amount _        _RFP_           _Award _          _Comments_
- A/E                        $15M           8/4/06(a)       6/29/07         on schedule
- C/M Agent             $4.5M          5/07              7/07               on schedule

## Fiscal Year 08 Major Procurements

- _Description_             _Amount _           _RFP_             _Award _     _Comments_
- Site Clearing            2.75M              8/08            10/08       Funding ?

## Fiscal Year 09 and 10 Major Procurements

- _Description_    _Amount _    _RFP_      _Award _     _Comments_
- Linac                           5M              TBD            FY09     FY 08 Planning
- Storage Ring Mag     19M              TBD            FY09     FY 08 Planning
- Vacuum System        20M              TBD            FY09     FY 08 Planning
- Power Supplies         13M              TBD            FY09     FY 08 Planning
- RF Cryogenics            5M              TBD            FY10      FY 09 Planning
- Wiggler Magnets         8M              TBD            FY09     FY 08 Planning
- Ring Building           154M              9/08            02/09     FY 07 Planning
- Chilled Water            12M               TBD            FY09     FY 08 Planning
- RF Cavities                 6M               TBD            FY09     FY 08 Planning
- Process Water            6M               TBD            FY09     FY 08 Planning
- Compact Booster      13M               TBD            FY09     FY08 Planning

## Conventional Construction is  planned as a Request for Proposal 
"Best Value” procurement. 
Comparative weighing of the evaluation factors and sub-factors identified in the Request for Proposal (RFP).   
Employs a trade off process permitting award to other than the low priced offeror or to the highest technically rated offeror.  
Involves selecting the most advantageous offer based upon an integrated assessment of both non-cost/price factors, taking in their assigned relative importance. 
Greatest overall cost/performance benefit to the Project and DOE.  

**"Best Value****”**** procurement. **
- Comparative weighing of the evaluation factors and sub-factors identified in the Request for Proposal (RFP).
- Employs a trade off process permitting award to other than the low priced offeror or to the highest technically rated offeror.
- Involves selecting the most advantageous offer based upon an integrated assessment of both non-cost/price factors, taking in their assigned relative importance.
- Greatest overall cost/performance benefit to the Project and DOE.

**Conventional Construction Procurement**

## Draft Evaluation Criteria
Experienced Project Manager and Superintendent
Specialized large complex project experience and technical competence 
Abilities in overall project coordination and management
Past performance on contracts of similar complexity in terms of cost control, quality of work, and  compliance with performance schedules; 
Experience and qualifications of proposed subcontractors
The volume of past and present workloads	
Safety record better than Industry Average

- Experienced Project Manager and Superintendent
- Specialized large complex project experience and technical competence
- Abilities in overall project coordination and management
- Past performance on contracts of similar complexity in terms of cost control, quality of work, and  compliance with performance schedules;
- Experience and qualifications of proposed subcontractors
- The volume of past and present workloads
- Safety record better than Industry Average

**Conventional Construction Procurement**

## Procurement ScheduleConventional Construction

## Conventional Construction Schedule

- Draft Request for Proposal (RFP) 6/07-8/07
- A/E Delivers Title I 10/07
- Draft RFP to DOE BHSO 11/07
- DOE Procurement Validation Review 1/08
- Draft RFP issued to industry 3/08
- Industry Feedback 4/08-5/08
- A/E Delivers Title II 9/08
- Finale RFP Issued 10/08
- Contract Award 2/09

## Procurement ScheduleConventional Construction

** **
**  ****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.**
_**November 2007**_
- Draft Request for Proposal, Contract , Terms and Conditions and Title I Design submitted to DOE.
_**January 2008**_
- DOE Procurement Validation Team charged with reviewing Draft Procurement Documents
- Team Representation:
- BHSO
- DOE  (CH)
- DOE (HQ)

## Procurement ScheduleConventional Construction

_**February 2008**_
- DOE Procurement Validation Team Feedback:
- Review and incorporate comments from Validation Team
- Issue a Matrix indicating the comments issued and actions taken
_**March 2008**_
- Draft RFP issued to prospective offerors to industry for initial feed back on Procurement Documents**. **
_**April 2008**_
- RFP comments received from industry
- Expectations include but are not limited to the following:
-   Expression of interest will be known
-   Evaluation Criteria validated
-   Schedule Validated
-   Project success/ feasibility validated
-   Constructability feedback

## Procurement ScheduleConventional Construction

_**May 2008 **_
- Draft RFP and Industry feedback shared with A/E and CM
- NSLS-II Procurement group begins final RFP development** **
_**September 2008**_
- A/E delivers final Title II Design
_**October 2008**_
- Final RFP issued to industry
_**November 2008 - December 2008**_
- Proposals received, evaluated, firm selected and contract documents prepared for DOE.
_**December 2008 - January 2009 **_
- DOE reviews/approves Contract Award_** **_
_**February **__**–**__** 2009**_
- BSA makes award

## Major Procurement Challenges

**FY 07**
- Establishing Advance Procurement Plans for FY 07 R&D
- A/E Planned Award June 29, 2007
- Construction Management Planned Award July 07
**FY 08**
- Establishing Advance Procurement Plans for FY 08 and 09
- Site Clearing,  Planned Award 10/08
- Completion of A/E Design, Planned completion 8/08
- General Construction Ring Building Planned RFP 9/08

## Summary

- Acquisition Strategy has been developed
- Procurement Integrated into the Project Team with dedicated Procurement Management
- Procurement Staffing Plan established
- Advance Procurement Planning Process
- Procurement schedule includes consideration of procurement methods and required approvals
- Procurement Plan for critical path conventional construction established