Maintaining Contract and Project Management Alignment Throughout the Contract Lifecycle

Transcription

1 #78 US DOE Procurement Process Trends and Contractor Delivery Challenges Maintaining Contract and Project Management Alignment Throughout the Contract Lifecycle Ken Rueter President and Project Manager URS CH2M Oak Ridge, LLC 1

2 Contract at a Glance Contract Information Awarded under Federal Acquisition Regulation (FAR) Part 15.2 Size - $2.6 Billion Contract Duration and Specifics -Base CLINs 8/1/11 through 7/31/16 -Option CLINs 8/1/16 through 7/31/20 ETTP Contract Scope of Work and Primary Mission/Role at Site Decontamination & Demolition (D&D) of the major facilities at the East Tennessee Technology Park - K-25 and K-27 Uranium Enrichment Plants - Other facilities such as the Centrifuge, TSCA Incinerator, and K-1037 Barrier Plant Environmental remediation of contaminated soils Significant waste management activities disposal of radioactive waste both onsite and offsite Perform surveillance, maintenance and operations activities at DOE EM owned facilities at ETTP, Oak Ridge National Laboratory, and Y-12 National Security Complex 2

3 Maintaining Two Sides of the Coin Contract and Project Management Alignment UCOR and DOE worked together to establish alignment between Total Estimated Contract Cost with the Contract Budget Base at contract true up Identified Material Difference s (MDs) during Transition Periodic partnering meeting with customer to determine de minimis MDs and scheduled and established a chunking process Streamline Negotiations by using Federal Acquisition Regulation (FAR) Profit; (c)6 aka small dollar changes Managed challenges by appointing Ombudsmen {DOE & UCOR} Worked true-up, transition and alignment process as a project 3

4 Setting the Stage for Maintaining Alignment Through Contract and Project Execution Phase Exercising Option CLINs The same discipline is needed when Option CLINs are exercised UCOR and DOE OREM began planning for exercising of Option CLINs 22 months in advance By that time ~90Min clean-up scope needed exercised Operations CLINs (5 and 6) had not been exercised nor baselined Clean-up CLINs (7a and 7b) had a contract constrained Period of Performance (POP) end date Operations CLINs were a DOE provided plug cost and needed to be priced and known changes incorporated UCOR planned to utilize operational efficiencies from CLIN 5 to support establishment of Management Reserves in the option period Would allow approved baseline to be used for development of budget requests beyond FY16 4

5 Contract Options Execution and Completion Feb Mar Apr May Jun Jul Aug Sep Oct Nov 2/15 CLINs 7C and 8 DOE UCOR Contracting Officer issues letter of intent to exercise remaining CLINs 2/15 Option CLINs 7C and 8 exercised 2/15 UCOR provide Baseline Change Request (BCR) for Option CLINs 7 & 8 3/15 DOE approve CLINs 7 and 8 BCR 3/15 UCOR implements CLINs 7C and 8 BCR 180 Days 11/15 CLINs 5 and 6 DOE UCOR 4/15 UCOR submit Contract Change Proposals (CCPs) for Option CLINs 5 & 6 material differences Technical Evaluation PNM Development Negotiation etc. 10/15 CCPs Definitized 10/15 UCOR submit BCR for Option CLINs 5 & 6 DOE exercises Option CLINs 5 & 6 11/15 DOE approves BCR for Option CLINs 5 & 6 DAS Contract Options Execution and Completion R0 January

6 Planning the Work Partnering: UCOR and OREM set the stage at semi-annual partnering session Discussed performance and need Established teams to plan and accomplish work Committed to success Teams worked with DOE Headquarters Head Contracting Authority (HCA) to establish the alignment plan to exercise the options HCA provided expectations and requirements Contract first, baseline to follow Foresight avoided need for directed change in most instances Avoided gaps in the execution of cleanup scope 6

7 Work the Plan Contract Delivery and Long term management Staying committed to alignment Now ingrained into entire process including exercising of option Contract Line Item Numbers (CLINs) Importance of sequencing and timing Contractor provides CCPs for known change conditions (similar to MDs during transition) {FAR Changes Cost-Reimbursement} Changes are definitized first into Option CLINs CLINs with updated pricing are exercised via contract modification Baseline Change Request (BCR) follow contract actions {FAR Earned Value Management System} Performance based assignment IPT must demonstrate progress executing base period cleanup scope Option continues to fulfill an existing requirement Risks are adequately identified and potentially mitigated 7

8 Two Sides of the Coin Base Period Contract Authorized Scope Fee = $127.1M Fee = $127.1M AUW $14.2M MR = $10.6M Total Contract Price Total Contract Cost = $1,669.2M PMB - $1,672.8 Total Contractor Baseline Contract Budget Base Total Contract Cost = $1,683.4M Total Contract Price = $1,810.5M Total Contract Budget Base = $1,683.4M Total Contract = $1,810.5M 8

9 Two Sides of the Coin with Options Exercised Contract Authorized Scope Fee = $151.5M Fee = $151.5M AUW $14.7M MR = $46.6M Total Contract Price Total Contract Cost = $2,419.1M PMB - $2,387.2 Total Contractor Baseline Contract Budget Base Total Contract Cost = $2,433.8M Total Contract Price = $2,585.3M Total Contract Budget Base = $2,433.8M Total Contract = $2,585.3M 9

10 Ken Rueter 10