Acquisition and Contract Management Update Jay Rhoderick Associate

Acquisition and Contract Management Update Jay Rhoderick Associate Deputy Assistant Secretary for Tank Waste and Nuclear Material Atom. Eco-2012 Moscow October 16, 2012 www. em. doe. gov

DOE Organization Chart www. em. doe. gov

EM Organization Chart www. em. doe. gov

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 www. em. doe. gov

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) www. em. doe. gov

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 – Ø Defense Nuclear Facility Safety Board Ø Environmental Management Advisory Board Ø Government Accountability Office Ø Office of the Inspector General www. em. doe. gov

Comparison of EM Liability Costs by Mission Area (in Constant 2011 Billion Dollars) www. em. doe. gov 7

Where Our Work is Performed 8 www. em. doe. gov 8

Quantity of EM Major Contract Types Contract Type Total Number Total Dollar Value Cost Plus Award Fee (CPAF) 20 $51. 857 B Cost Plus Incentive Fee (CPIF) 5 $7. 553 B Cost Plus Fixed Fee (CPFF) 1 $407 M Fixed Price Plus Award. Fee (FPPAF) 1 $98. 7 M Firm Fixed Price 3 $125. 9 M ESPC Fixed Price Delivery Order 1 $795 M www. em. doe. gov 9

EM Contract Type by Site Carlsbad Field Office Idaho Oak Ridge Office of River Protection Portsmouth/Plymouth Project Office Richland Savannah River Small Sites Contractor Nuclear Waste Partnership LLC Cast Specialty Transportation, Inc Visionary Solutions LLC Idaho Treatment Group CH 2 M-WGI LLC Isotek Systems LLC LATA-Sharp Remediation Services LLC URS/CH 2 M Oak Ridge LLC Wastren Advantage, Inc. Advanced Technologies and Laboratories Bechtel National Washington River Protection Company Babcock & Wilcox Conversion Services LLC Wastren-Energ. X Mission Support LLC Fluor-B&W Portsmouth LLC LATA Environmental Services Kentucky LLC Restoration Services, Inc Swift & Staley Mechanical Contractors, Inc. CH 2 M Hill Plateau Remediation Company HPM Corporation Mission Support Alliance LLC Washington Closure Hanford LLC Ameresco Federal Solutions Parsons Infrastructure and Technology Group Savannah River Remediation LLC Savannah River Nuclear Solutions Wackenhut Services, Inc. CH 2 M Hill B&W West Valley LLC Energy Solutions URS Portage Contract Type Cost Plus Award Fee Firm Fixed Price Cost Plus Award Fee Cost Plus Incentive Fee Cost Plus Fixed Fee Firm Fixed Price Cost Plus Award Fee Cost Plus Award Fee Cost Plus Award Fee Time & Materials Cost Plus Award Fee Hybrid – Firm Fixed Price/Cost Plus Award Fee Cost Plus Incentive Fee Fixed Price (Energy Savings Performance Contract Cost Plus Incentive Fee Cost Plus Award Fee Cost Plus Incentive Fee Firm Fixed Price Cost Plus Incentive Fee Hybrid – Cost Plus Award Fee/Fixed Unit Price www. em. doe. gov

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 www. em. doe. gov 11

Questions? Please email me at voglerkm@state. gov