This material is based upon work supported by the U.S. Department of Energy Office of Science under Cooperative Agreement DE-SC0000661, the State of Michigan.

This material is based upon work supported by the U.S. Department of Energy Office of Science under Cooperative Agreement DE-SC0000661, the State of Michigan and Michigan State University. Michigan State University designs and establishes FRIB as a DOE Office of Science National User Facility in support of the mission of the Office of Nuclear Physics.

Thomas NowakProcurement Department Manager

Procurement Practices and Procedures

T. Nowak, May 2014 SPAFOA Meeting

Procurement supports technical divisions who deliver scope

Procurement processes well integrated

Active supplier management established

Adequately staffed and delivering procurements

Summary

Outline

, Slide 2

Procurement fully integrated with technical divisions

Contract and administrative support for Conventional Facilities Division

Business Partner to Technical Divisions

T. Nowak, May 2014 SPAFOA Meeting, Slide 3

Technical Civil

Accelerator Systems Division (ASD)

Experimental Systems Division (ESD)

Conventional Facilities Division (CFD)

Major Technical Procurements 169 92 ---

Major Technical Procurements (dollars) $126,655,788 $24,275,359 ---

Georg BollenExperimental Systems

Division Director

Jie WeiAccelerator Systems

Division Director

Brad BullConventional Facilities & Infrastructure

Division Director

Major procurements (>$50k) in P6 schedule

261 major procurements over a six-year period

40 major procurements have been let

Technical Procurement Scope Understood

T. Nowak, May 2014 SPAFOA Meeting, Slide 4

Procurements Total

<$250,000 172

>$250,000, <$500,000 36

>$500,000, <$1,500,000 31

>$1,500,000 22

Division Major Procurements

High

Complexity

Accelerator Systems Division 169 52Experimental Systems Division 92 21  261 73

Technical procurements are defined in the integrated master schedule

Engage technical divisions to define the evaluation/selection criteria in all Request for Proposals (RFP) and determine “Best-Value” in all project procurements• best value = • Develop strategies for high complexity procurements and minimize risk for

one-of-a-kind procurements (versus commercially-off-the-shelf)

Find “partners” in industry that meet the project’s needs• Unique and challenging supply base (no follow-on business, unique product

specifications, tight tolerancing)• Develop long-term relationships• Build a supply base that can support the requirements and schedule

We let firm fixed-price or phase funded contracts, no “cost-plus”

Procurement Approach

T. Nowak, May 2014 SPAFOA Meeting, Slide 5

Procurement plan ties in directly with baseline schedule and incorporates cross-functional groups

Durations vary depending on complexity

Procurement Processes Tied into Schedule Facilitates Pre-Procurement Planning

T. Nowak, May 2014 SPAFOA Meeting, Slide 6

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2 3 4 5

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5a

T. Nowak, May 2014 SPAFOA Meeting

Management tool reflective of the risk and effort needed to successfully deliver the procurement based on technical impact, acquisition type, and supply base strength

Procurement complexity levels are High, Medium, or Low, determined by Control Account Manager (CAM) and approved by the Procurement Department Manager• High if»The procurement is life of facility or cannot be removed for repair or»Technical impact is High or»Procurement is build-to-spec or»Supply base is weak

• Medium if not High and»Technical impact is Medium or»Procurement is build-to-print or»Modified standard equipment or»Supply base is adequate

• Low if not Medium or High»Technical impact assessed by CAM is low and»Procurement is COTS and»Supply base is determined to be strong

Procurement Complexity Identified in Schedule

, Slide 7

Description FRIB CAMBL Project Total Cost

Is the procurement life of facility or can not be removed for repair?

Technical Impact Type of Acquisition Supply Base StrengthProcurement

Complexity Level

ASD Stripper Section Vacuum System Marti, Felix $67,529 No High Commodity off the Shelf Adequate HighASD Controls Portal Monitor Peng, Sheng $92,853 No High Commodity off the Shelf Adequate HighASD Controls Chipmunk Area Monitors Peng, Sheng $378,164 No High Build-to-Print Weak HighASD Cryo Distribution System Casagrande, Fabio $4,954,571 Yes High Build-to-Print Strong HighASD First Article RF Amplifier Morris, Dan $284,052 No Low Build-to-Spec Adequate HighASD SRF RF Amplifiers Morris, Dan $19,043,772 No Medium Build-to-Spec Adequate HighRemote Bridge Crane Bennett, Richard $2,363,652 Yes High Build-to-Spec Adequate HighRemote Viewing System Bennett, Richard $173,976 No Medium Build-to-Spec Weak HighShield Window Liners, Shield Window With Barrier Shield & Plugs Bennett, Richard $596,754 Yes Medium Build-to-Spec Weak HighRemote Handling Utility Penetration Bennett, Richard $74,153 Yes Medium Build-to-Print Adequate HighRemote Handling Lift Bennett, Richard $431,940 Yes Medium Build-to-Spec Adequate HighRemote Handling WH Bottom Loading Port Bennett, Richard $87,944 Yes Medium Build-to-Print Adequate HighRemote Handling Bridge Crane Rail Bennett, Richard $247,520 Yes Medium Build-to-Spec Strong HighESD Non-Conventional Utilities Drain Tank- Target Borden, Tom $75,000 Yes Low Modified Standard Equipment Strong HighESD Non-Conventional Utilities LLLW Tanks Borden, Tom $105,000 Yes Low Modified Standard Equipment Strong HighESD Non-Conventional Utilities Drain Tank - Beam Dump Borden, Tom $179,142 Yes Low Modified Standard Equipment Strong HighESD Non-Conventional Utilities Liquid/Gas Separation Tank- Beam Dump Borden, Tom $38,043 Yes Low Modified Standard Equipment Strong HighESD Non-Conventional Utilities Liquid/Gas Separation Tank- Beam Target Borden, Tom $34,228 Yes Low Modified Standard Equipment Strong HighESD Preseparator Mech Sys Vacuum Chamber Borden, Tom $981,690 Yes Medium Build-to-Print Strong HighESD Preseparator Mech Sys Tank Connections Borden, Tom $116,207 Yes Medium Build-to-Print Strong HighESD Preseparator Mech Sys Target/Diag Vacuum Chamber Borden, Tom $523,129 Yes Medium Build-to-Print Strong HighESD Preseparator Mech Sys Wedge Vacuum Chamber Borden, Tom $608,987 Yes Medium Build-to-Print Strong High

Risk mitigation tool utilized to identify unique storage and warranty needs CAMs identify storage requirements

• Space• Duration of storage• Climate control requirements• Export compliance and special handling

Develop and negotiate warranty plans for subsystems that arrive more than six (6) months before commissioning• Based on machine hours versus calendar days

T. Nowak, May 2014 SPAFOA Meeting, Slide 8

Storage and Warranty Considerations Identified in Schedule

Commodity procurement includes all project requirements that are considered COTS and those technical items that do not require FRIB to develop a specification to procure• Examples

» Vacuum supplies and components – flanges, valves» Electrical supplies and components – Programmable Logic Controller (PLC) components, cable, wire» Hardware items – screwdrivers, nuts, bolts, fasteners» Cryogenic supplies – gauges, bayonets, valves» Chemicals/cylinder gases» Machining services – water jet, milling, turning» Office supplies

Pursuing potential e-commerce to help further streamline• Similar to system Stanford Linear Accelerator Laboratory, California (SLAC) is currently using

and Brookhaven National Laboratory, New York (BNL) is testing

Commodities Procurement

T. Nowak, May 2014 SPAFOA Meeting, Slide 9

Cohesive and dynamic team is moving forward with successful delivery of procurements • Leveraging experience and organizational expertise

Technical• Develops Request for Quote (RFQ)/Request for

Proposal (RFP), solicits and procures all technical equipment

• Negotiates and manages high dollar/high risk contracts for technical procurements

Commodities• Solicits and procures all Commercially-off-the-Shelf

(COTS)/commodities• Manages low dollar/low risk technical procurements

Materials and Logistics• Manages the receiving and acceptance of technical

procurements• Manages the storage and inventory in support of

timely delivery for installation

Procurement StaffEffectively Delivering Procurements

T. Nowak, May 2014 SPAFOA Meeting, Slide 10

Susan HouseTechnical Buyer II

Tom NowakProcurement Manager

(Tech Buyer III)

Jim ZeqollariTechnical Buyer III

TE

CH

NIC

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Ben ShuartTechnical Buyer III

Lara DruelleTechnical Buyer I

Barb PollackTechnical Buyer I

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GIS

TIC

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April BryanProcurement Coordinator

Jenifer GilbertMaterials & Logistics Team

Leader

Nathan PeaseResearch Trades Assistant II

Staffing model has been well planned to ensure delivery of FRIB high complexity procurements• Most high complexity procurements are supported by

Zeqollari, Shuart, and House» Druelle supports some high complexity procurements and

assumes more as we increase procurement activity• Recruiting for a level 1 commodities buyer and a level

III technical buyer to support upcoming peak in procurements

• Current staffing plan supports the requirements through 2015

The procurement process has been streamlined allowing the buyers to focus on the core responsibilities• Procurement project coordinator maintains interfaces

with customers and enables buyers to focus on technical procurements

Ensures conformance of regulatory requirements• Procurement Manual (S10202-MA-000079)

Staffing Model

T. Nowak, May 2014 SPAFOA Meeting, Slide 11

HIGH COMPLEXITY PROCUREMENTS BY YEAR

Susan HouseTechnicalBuyer II

Tom NowakDept. Manager (Tech Buyer III)

Jim ZeqollariTechnicalBuyer III

Ben ShuartTechnicalBuyer III

Lara DruelleTechnicalBuyer I

April BryanProcurementCoordinator