Department of Energy Washington. DC 20585

June 27, 2017

THROUGH:

FROM: JOSEPH F. WADDELL <?ft~ DEPUTY ASSOCIATE ADMINISTRATOR /)J OFFICE OF ACQUISITION AND ~~ -

PROJECT MANAGEMENT, NNSA

SUBJECT: Procurement Evaluation and Re-Engineering Team (PERT) Establishment of a Six-Year Cycle and Corresponding Schedule for M&O and As Warranted for Non-M&O Contractor Reviews

The Procurement Evaluation and Re-Engineering Team (PERT) and Peer Review Program has a proven track record within the Department of Energy (DOE) complex for effectively assessing the Contractor Purchasing Systems (CPS) of Management and

Operating (M&O) contracts and the contractor purchasing systems for other major sites and facility management contractors (FMC) and other identified Cost Re-imbursement contracts. For the DOE Federal Acquisition Community, the PERT is the Department's

methodology for conducting Contractor Purchasing System Reviews (CPSRs) and for serving as the PEER Review program for the Contractor Community. The PERT Peer Review program has been designated by the NNSA and DOE Senior Procurement Executives (SPEs) to perform the Department's CPSR function.

Federal Acquisition Regulation (FAR) 44.302(b) requires Contracting Officers (CO's) to

determine every three years if a review of a CPS is required, based on, but not Ii mite~ to, the past performance of the contractor, and the volume, complexity and dollar value

of the subcontracts awarded under the prime contract (FAR 44.302 (a)). The DOE approach to meeting this requirement will be to have the CO's utilize a Risk Assessment

process to aid them in making the determination.

Based on the requirement that the CO determine if a CPSR is needed every three years,

the following cycle shall be used:

1. At the end of the first three-year review cycle, the CO uses the Risk assessment

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Tool to determine if a CPSR is required. 2. Before the end of the second three-year review cycle, the CO uses the Risk

Assessment Tool to determine if a CPSR is required. If the CO determ ines a review is not required, CO will submit a justification package to the Field Assist ance and Oversight Division for Business Clearance review and approval.

3. By the end of the third three-year cycle, a CPSR is mandatory.

For the Department's PERT Peer Review Program, the CPSR review cycle will be based on a six-year scheduling interval for identified or selected contracts. Notwithstanding the above, the cognizant SPE, HCA, PD and CO can direct that a CPSR be conducted at any time if it is determined that an independent verificat ion of the CPS is requ ired. The

maximum period between reviews will be nine years. This approach is t aken t o ensure Department level Independent Validation of a Contractor's purchasing system and the CO's FAR 44.302 (b) based determination process. For non-M&O contract sit es which do not exceed a five-year award period including options, this waiver process is not applicable.

The PERT schedule below has been developed to correspond with the FAR based three­year determination cycle as discussed in this memorandum. Due to limited resources, if too many reviews are scheduled in any one-year period, some adjustment to t he schedule may become necessary.

Thank you for your continued commitment to the PERT program. If you have questions, please feel free to contact Barry Ross at (202) 287-1552 or Barry.Ross@hg.doe.gov.

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Procurement Directors William Gibson, FE- 44

John Meeker, GFO

Joseph McBrearty, SC Anthony Montoya, WAPA Richard Provencher, NE-ID

John Surash, EM-50 Sean Long, SWPA Shane Kosinski, ARPA-e

Bart Bridwell, ARPA-e

Karen Bahan, EMCBC Jeff Burgan, ORO

Kelly Gele, SPR George Kelley, WAPA

Michael Adams, NE-ID Andrew Wirkkala RL

Sally Sieracki, ROO Patricia Schuneman, SC-CH Joel Seymour, SEPA Mark Brady, MA-64

Denise Riggi, NETL

Marc Mccusker, ORP Craig Armstrong, SRS

Grace Bochenek, NETL Mark Dickinson, APL

Nichoias Jenkins, BPA Kim Gallegos, HCA, NA~APM-10

Kelly Miller; LLNL Curtis Mears, National Security

Campus Sharon Nanez, Nevada Test Site Doug Mccrary, LANL Skip Skelton, CNS {Pantex & Y-12)

Cynthia Morgan, CNS {Pantex & Y-12) Jodi Maheras, SNL Ralph Holland {EMCBC)

Barry Page {EMCBC

Carrie Causey (EM) Tamara Mile.s (EMCBC)

Suzette Olson (NE)

FY 2018

M&OSites AMES National Lab SLAC National Accelerator Laboratory Lawrence Berkeley National Laboratory Pacific Northwest National Laboratory

N0.n-M&O Contracts (if requested by the CO) Oak Ridge

• URS/CH2M Oak Ridge, LLC- East Tennessee Technology Park (ETTP Contract (Contract No. DE-SC-0004645) (Desk Audit)

Portsmouth • Fluor-B&W Portsmouth, LLC - Portsmouth Remediation Contract (Contract

No. DE-AC30-10CC40017) (Desk Audit)

Idaho • Fluor Idaho, LLC - Idaho Cleanup Project (ICP) Core Contract (Contract No. DE­

EM0004083) (Desk Audit)

FY 2019

M&OSites Waste Isolation Pilot Plant Kansas City National Security Campus National Renewable Energy Laboratory Nevada National Security Site Sandia National Laboratories

Non-M&O Contracts (if requested by the CO) • Energy Solutions/Corporate Centralized Procurement Process (Desk Audit)

Portsmouth • Portsmouth Mission Alliance, LlC- Portsmouth Infrastructure Contract {Contract

No. DE-EM0004062) (Desk Audit)

FY 2020

M&OSites Oak Ridge National Laboratory We~t Valley Demonstration Project Savannah River Site

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Brookhaven National Laboratory

Non-M&O Contracts (if requested by the CO) Idaho

• Fluor Idaho, LLC- Idaho Cleanup Project (ICP) Core Contract (Contract No. DE­EM0004083) (Desk Audit)

Lexington • Mid-America Conversion Services, LLC - Operation of Depleted Uranium

Hexafluoride (DUF6) Conversion Facilities Project (Contract No. DE-EM­0004559) (Desk Audit)

FY 2021

M&O Sites Princeton Plasma Physics Laboratory Los Alamos National Laboratory Argonne National Laboratory Strategic Petroleum Reserve

Non-M&O Contracts (if requested by the CO) Savannah River

• Savannah River Liquid Waste Contract (contract anticipated to be awarded in FY2018) (Site Audit)

Paducah • Paducah Deactivation & Remediation Contract (contract anticipated to be

awarded in FY2018) (Desk Audit)

Los Alamos • Los Alamos Legacy Cleanup Contract (contract anticipated to be awarded in

FY2018) (Desk Audit)

FY 2022

M&OSites Lawrence Livermore National Laboratory Stanford National Linear Accelerator Laboratory FERM I National Accelerator Laboratory

Non-M&O Contracts (if requested by the CO) Hanford

• Central Plateau Operations and Cleanup (CPOC) Contract (contract anticipated to

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be awarded in FY2019) (Site Audit)

• Waste Treatment Plant Operations (WTPO) Contract (contract anticipated to be awarded in FY2019) (Desk Audit)

• Hanford Mission Essential Services (HMES) Contract (contract anticipated to be awarded in FY2019) (Desk Audit)

FY 2023

M&OSites Idaho National Laboratory Ames National Laboratory Thomas Jefferson National Accelerator Facility PANTEX Plant/ Oakridge Y12 Site (Dual Sites)

Non-M&O Contracts (if requested by the CO)

Portsmouth • Follow-on to Portsmouth Remediation Contract No. DE-AC30-10CC40017

(contract expires November 16, 2020) (Desk Audit)

Oak Ridge • Follow-on to East Tennessee Technology Park (ETTP) Contract No. DE-SC­

0004645 (contract expires July 31, 2020) (Desk Audit)