www.em.doe.gov

Acquisition and Contract Management Acquisition and Contract Management Update Update

Jay RhoderickAssociate Deputy Assistant Secretary for

Tank Waste and Nuclear Material

AtomEco-2012Moscow

October 16, 2012

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DOE Organization Chart

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EM Organization Chart

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Key Performance Indicators

EM Goals for Fiscal Year 2012 included:

Goal 1: Reduce the life cycle cost and accelerate cleanup

Goal 2: Improve safety and quality performance toward a goal of zero accidents, incidents, and defects and continue to improve the EM Complex-wide Safety Culture

Goal 3: Improve project, budget, and contract management with the objective of delivering results on time, within cost, and with world-class technical competencies

Goal 4: Achieve excellence in management and leadership with the objective of making EM an employer of choice in the Federal government

Goal 5: Execute the EM mission in a sustainable manner

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EM FY 2012 Annual Performance Agreement

Goal #3: Improve contract and project management with the objective of delivering results on time, within cost, and with world-class technical competencies.

• Use an internal quality assurance process to Monitor and validate effectiveness of corrective measures reviews

• Monitor contract and project management staffing to sustain Federal oversight of the EM mission

• Improve and Expand use of independent contract and project reviews

• Become a stronger owner by holding contracts accountable and pursuing partnering relationships with contractors

• Strengthen the integration of acquisition, budget and project management

• Develop EM-specific cost estimating policy, guidance, historical cost databases, and expertise to improve ability to perform Independent Government Cost Estimates and Reviews

• Shift away from management and operating culture to take advantage of traditional (non-management and operating contract)

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Monitoring Contractor Performance

• Performance Evaluation Measurement Plans

• Monthly Contractor Performance Reports

• Review Earned Value Management Systems

• Quarterly Project Reviews

• Project Peer Reviews

• Project Assessment and Reporting System

• Integrated Planning, Accountability and Budget System

• Safety Reporting

• Oversight by external reviewers – Defense Nuclear Facility Safety Board Environmental Management Advisory Board Government Accountability Office Office of the Inspector General

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Comparison of EM Liability Costs by Mission Area (in Constant 2011 Billion Dollars)

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Where Our Work is Performed

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Quantity of EM Major Contract Types

Contract Type Total Number Total Dollar Value

Cost Plus Award Fee (CPAF)

20 $51.857B

Cost Plus Incentive Fee (CPIF)

5 $7.553B

Cost Plus Fixed Fee (CPFF)

1 $407M

Fixed Price Plus Award-Fee (FPPAF)

1 $98.7M

Firm Fixed Price 3 $125.9M

ESPC Fixed Price Delivery Order

1 $795M

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EM Contract Type by Site

Site Contractor Contract TypeCarlsbad Field Office Nuclear Waste Partnership LLC Cost Plus Award Fee

Cast Specialty Transportation, Inc Firm Fixed PriceVisionary Solutions LLC Firm Fixed Price

Idaho Idaho Treatment Group Cost Plus Award FeeCH2M-WGI LLC Cost Plus Incentive Fee

Oak Ridge Isotek Systems LLC Cost Plus Fixed FeeLATA-Sharp Remediation Services LLC Firm Fixed PriceURS/CH2M Oak Ridge LLC Cost Plus Award FeeWastren Advantage, Inc. Cost Plus Award Fee

Office of River Protection Advanced Technologies and Laboratories Cost Plus Award FeeBechtel National Cost Plus Award FeeWashington River Protection Company Cost Plus Award Fee

Portsmouth/Plymouth Project Office Babcock & Wilcox Conversion Services LLC Cost Plus Award FeeWastren-EnergX Mission Support LLC Cost Plus Award FeeFluor-B&W Portsmouth LLC Cost Plus Award FeeLATA Environmental Services Kentucky LLC Cost Plus Award FeeRestoration Services, Inc Time & MaterialsSwift & Staley Mechanical Contractors, Inc. Cost Plus Award Fee

Richland CH2M Hill Plateau Remediation Company Cost Plus Award FeeHPM Corporation Hybrid – Firm Fixed Price/Cost Plus Award FeeMission Support Alliance LLC Cost Plus Award FeeWashington Closure Hanford LLC Cost Plus Incentive Fee

Savannah River Ameresco Federal Solutions Fixed Price (Energy Savings Performance ContractParsons Infrastructure and Technology Group Cost Plus Incentive FeeSavannah River Remediation LLC Cost Plus Award FeeSavannah River Nuclear Solutions Cost Plus Award FeeWackenhut Services, Inc. Cost Plus Award Fee

Small Sites CH2M Hill B&W West Valley LLC Cost Plus Incentive FeeEnergy Solutions Firm Fixed PriceURS Cost Plus Incentive FeePortage Hybrid – Cost Plus Award Fee/Fixed Unit Price

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Continuous Improvement

• EM continues to seek ways to streamline the acquisition process

• To improve contractor relations EM has established partnering agreements with major contractors at EM sites

• Increased use of fixed price contracts

• Implement use of hybrid contracts where entire work scope cannot be fixed price

• EM has conducted sessions with contractors to develop lessons learned and best practices that can be implemented to improve contracting practices

Questions?

Please email me atvoglerkm@state.gov