DRAFT1

Procurement

Joe Collins

July 31, 2012

DRAFT2

Function

Support the Lab’s mission of advancing the understanding of the fundamental nature of matter and energy by providing subcontracting services in a helpful, effective, and timely

manner.

This includes a strong emphasis on advance acquisition planning for projects and large complex procurement actions.

July 31, 2012

DRAFT

Procurement

3

Joanne Hall - Procurement Office AssociateJoyce Serritella - Admin Support Asst III

Julie Wiley - Admin Support Asst III

G. BagbySr. Procurement Admin.

R. EvansSr. Procurement Admin.

S. CozzensProcurement Associate

S. GaugelSr. Procurement Admin.

S. EfstathiouProcurement Admin.

T. PowersSr. Procurement Admin.

Construction/Fabrication Services

Bob Cibic - Procurement Supervisor

B. ClarkSr. Procurement Admin.

B. NiccolaiProcurement Admin.

G. DavisProcurement Admin.

P. NoyesProcurement Admin.

N. YackleProcurement Associate

Computing / Services

Bill Koncelik - Procurement Supervisor

M. GraczykProcurement Admin.

R. JohnsonProcurement Admin.

Electronics / MRO

Joe Morgan - Sr. Procurement Admin.

Joe CollinsProcurement Manager

Staff = 20 FTEs

July 31, 2012

DRAFT4

Procurement• An independent assessment – Procurement Evaluation and Reengineering Team (PERT) review – was

conducted April 23-27, 2012. Team led by Mark Waite, J Lab Procurement Director, comprised of five contractor and three federal procurement employees. Evaluation included:

• Transactional reviews• Results examination• Overall process evaluation• Review of quality assurance of procurement processes and data collection methodologies

• Results: “We believe the procurement system and existing controls are adequate and no observations of a significant nature exist that would warrant disapproval of the contractor purchasing system.”

• Team recognizes the positive spirit, responsiveness of the staff, and notes that Procurement is “well integrated and supportive of FNAL projects and departments”.

• Team recommends structured buyer training in cost/price analysis, contract administration, and sole source documentation.

• Team recognizes that staffing is lean and is concerned that additional workload would require the addition of staff to the Procurement effort.

• Team believes Fermilab would significantly benefit from the implementation of an e-catalog system.• Action Plan

• An ‘in house” training program that addresses cost/price analysis, contract administration, and sole source documentation will commence in October.

• Staffing concerns are currently being addressed within Business Operations, and in particular through this Procurement Readiness Review.

• The implementation of an e-catalog system is being evaluated and considered as a new laboratory project.

July 31, 2012

DRAFT5

Procurement

• The DOE Procurement Balanced Scorecard (BSC) self-assessment tool is used annually to measure system performance from four perspectives:

• Internal• Customer• Learning & Growth• Financial

• Annual BSC results under the FRA contract have ranged from 93-97 on a 100 point scale. Fermilab has one of the lowest cost/spend ratios (FY11 = $0.012) of all the DOE laboratories. While this can point to efficiencies, it may also be a harbinger of problems that lie ahead.

• Estimated procurement obligations for FY2012 are $170,000,000.00

July 31, 2012

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Procurement

• Other Activities:• Contractor Supply Chain Council (CSCC)—a contractor led, DOE

sponsored group that is charged with leveraging supply chain functions in support of the DOE Program Mission, and providing focused communication between the DOE Procurement Executive, and the Department’s Contractor Procurement Managers. Fermilab is one of the two Science Lab CSCC representatives.

• Procurement Evaluation and Reengineering Team (PERT)—a joint DOE/Contractor working group that conducts peer reviews, promotes training, and procurement studies in support of the DOE complex. Fermilab is represented on the PERT steering committee, and actively participates as a team lead or member.

• Center for Advanced Procurement and Supply (CAPS) Research, a global research organization sponsored by the W.P. Carey School of Business at Arizona State University, and the Institute for Supply Management (ISM). Benchmarking activities are ongoing, and include DOE/NNSA and cross-industry exercises. Fermilab is represented on the DOE/NNSA CAPS benchmarking committee.

July 31, 2012

DRAFT7

Procurement• Other Activities, Continued:

• Science Lab (SC) Procurement Managers—a network of SC Procurement managers that continuously exchange information and meet biannually for training and sharing. There is an increased amount of information exchanged between the Argonne National Lab and Fermilab Procurement Departments. This mutual relationship is especially centered upon issues unique to both Labs.

• Fermilab Procurement is always working to ensure an effective relationship with the DOE site office, and all other levels of DOE. Monthly meetings with the DOE Contracting Officers, plus daily dialogue and correspondence are important aspects that help in promoting our relationship with the government.

• Procurement liaisons assigned to a dozen projects.• Procurement 101 training to projects , divisions/sections, and other

interested groups .

July 31, 2012

DRAFT

Project Liaisons

July 31, 2012 8

Computing Bill KoncelikDES Byron ClarkIARC Sandra EfstathiouLBNE Tom PowersMicroBooNE Byron ClarkMINERvA Joe MorganMu2e Ron EvansNOvA Bob CibicProject X Bob CibicSLI Utility Upgrade Steve GaugelSRF Ron EvansFESS Operations Gordon BagbyWDRS Byron Clark

DRAFT9

PROJECT LIAISONS

Project liaisons are primary points of contact for the project management team. The Mu2e and LBNE liaisons are responsible for most critical project procurements, and will know the status of procurements assigned to other procurement administrators. The liaisons attend project management group and other project based meetings. They routinely meet with the senior procurement staff and procurement manager. It is estimated, as projects ramp up, that the Mu2e and LBNE liaisons will devote 75 to 100 percent of their time to these projects.

July 31, 2012

DRAFT10

Procurement

July 31, 2012

08 09 10 11 12 (est)

Pur-chase Order

106000000 117407000 246801000 163027000 146000000

PCard 8558000 9516000 7182000 9025000 9000000

Order-ing Agree-ment

11000000 14100000 14939000 16261000 15000000

25,000,000

125,000,000

225,000,000

Procurement Obligations ($) by Method and FY

DRAFT11

Procurement

July 31, 2012

08 09 10 11 12 (est)

Con-struction

6993000 11247000 41121000 13402000 40000000

Other Services

55132000 58138000 93416000 80913000 60000000

Educa-tional

15135000 14619000 26127000 30045000 22000000

Foreign 14537000 9373000 22103000 20289000 10000000

Gov't/Non Profit

15355000 15118000 24019000 15362000 13000000

Goods 18406000 32528000 62136000 28302000 25000000

25,000,000

125,000,000

225,000,000

Procurement Obligations ($) by Type and FY