DEPARTMENT OF ENERGY CONTRACTOR PURCHASING SYSTEM BALANCED SCORECARD

DEPARTMENT OF ENERGY CONTRACTOR PURCHASING SYSTEM BALANCED SCORECARD PERFORMANCE ASSESSMENT FY 2000

BALANCED SCORECARD PERSPECTIVES AND OBJECTIVES CUSTOMER - Customer Satisfaction FINANCIAL - Optimum Cost Efficiency of Purchasing Operations MISSION VISION STRATEGY LEARNING AND GROWTH - Employee Satisfaction - Employee Alignment - Information Availability INTERNAL BUSINESS PROCESSES - Effective Internal Controls - Effective Supplier Management - Effective Utilization of Alternate Procurement Approaches - Streamlined Processes - Acquisition Process - Good Corporate Citizenship through Purchasing

MISSION To provide acquisition and assistance services to support accomplishment of the Department’s programmatic goals and objectives. VISION To deliver on a timely basis the best value product or service to our customers while maintaining the public’s trust and fulfilling public policy objectives. STRATEGY To change the present system’s culture, management systems, and line processes consistent with the principles of Quality Management, in order to establish and maintain: a customer focus, a sense of urgency, continuous and breakthrough process improvement, and an emphasis on results.

CUSTOMER PERSPECTIVE CUSTOMER - Customer Satisfaction

CUSTOMER PERSPECTIVE OBJECTIVE Customer Satisfaction MEASURE NATIONAL TARGET Core: Data Source: Customer Climate Survey Customer Satisfaction Index Also, documented results from formal Baldrige, Presidential or Energy Quality Award Self-Assessments and Site Visit Elements: Evaluations Timeliness: Extent of customer satisfaction with timeliness of procurement processing; planning activities; and on-going communications Quality: Extent of customer satisfaction with the quality of procurement services Communications: Extent to which procurement communicates accurate information which impacts the work of my organization 85% customer satisfaction rating in 1998 (90% in 1999, 95% in 2000)

CUSTOMER PERSPECTIVE OBJECTIVE Customer Satisfaction (Cont. ) MEASURE Optional: Real-time Transactional Survey (if appropriate) Elements Menu: Schedule Cost Best Value Performance against standard/commitment Overall Satisfaction NATIONAL TARGET (Appropriate targets will be negotiated between the Cognizant DOE Contracting Officer and the contractor purchasing organization)

INTERNAL BUSINESS PROCESS PERSPECTIVE INTERNAL BUSINESS PROCESSES -Effective Internal Controls -Effective Supplier Management -Effective Utilization of Alternate Procurerment Approaches -Streamlined Processes -Acquisition Process -Good Corporate Citizenship through Purchasing

INTERNAL BUSINESS PERSPECTIVE OBJECTIVE MEASURE Effective Internal Controls Data Source: Transactional review of purchasing files, review boards and Local Purchasing Information Systems (LPIS) Core: % of systems in full compliance with stakeholder requirements (e. g. , applicable laws, regulations, terms and conditions of contracts, ethics, etc. ) based on self-assessment and subject to fatal flaw considerations Effective Supplier Management Data Source: LPIS Core: % Delivery on-time NATIONAL TARGET Meets or exceeds expectations 85% on-time delivery (includes JIT) Optional: Supplier Satisfaction Prequalified suppliers as a % of all suppliers Rejection rates due to non-conformance to contract requirements Effective Utilization of Alternate Procurement Approaches Data Source: LPIS Core: Optimum % of transactions placed by users (JIT, Procurement Card, etc. divided by the sum of total transactions) Optional: % utilization of ICPT and other leveraged purchases % of RFPs over $100 K issued electronically (Appropriate targets will be negotiated between the Cognizant DOE Contracting Officer and the contractor purchasing organization)

INTERNAL BUSINESS PERSPECTIVE OBJECTIVE Streamlined Processes Data Source: LPIS MEASURE Core: Number of critical processes reengineered, redesigned or re-validated NATIONAL TARGET Two annually Optional: % purchase action utilization of Electronic Commerce Acquisition Process Data Source: LPIS Core: Average cycle time (exception: Procurement Card) 20 days cycle time (CAPS) Optional: Average cycle time<=$100, 000 Average cycle time >$100, 000 Good Corporate Citizenship through Purchasing Data Source: Local goals as negotiated with cognizant DOE office Core: % of economic and social diversity and local participation program goals achieved, including: SB, SDB and Women Owned SB Goals Regional/Local Outreach/Support Good Neighbor Program Specific negotiations with local DOE office

LEARNING AND GROWTH PERSPECTIVE LEARNING AND GROWTH - Employee Satisfaction - Employee Alignment -Information Availability

LEARNING AND GROWTH PERSPECTIVE OBJECTIVE Employee Satisfaction Data Source: Employee Climate Survey Also, documented results from formal Baldrige, Presidential or Energy Quality Award Self-Assessments and Site Visit Evaluations Employee Alignment Data Source: Employee Performance Appraisals and LPIS as appropriate Information Availability Data Source: LPIS as appropriate MEASURE NATIONAL TARGET Core: Employee Satisfaction Index includes data from employee survey, focus groups, absenteeism, and voluntary terminations (Appropriate targets will be negotiated between the Cognizant DOE Contracting Officer and the contractor purchasing organization. ) Core: Employee Alignment % of employees whose actual performance is aligned with Key Success Factors 90% aligned Core: Information Availability Measure This is a measure of useful information (e. g. , policies, procedures, operational reports) available to employees 90% of work groups have the data they need to do their jobs

FINANCIAL PERSPECTIVE FINANCIAL - Optimum Cost Efficiency of Purchasing Operations

FINANCIAL PERSPECTIVE OBJECTIVE Optimum Cost Efficiency of Purchasing Operations Data Source: LPIS MEASURE NATIONAL TARGET Core: Cost to Spend Ratio Purchasing Operation’s operating costs (labor plus overhead) divided by purchasing obligations (Appropriate targets will be negotiated between the Cognizant DOE Contracting Officer and the contractor purchasing organizational)