Department of Energy Review of the LCLS Project David Pindroh, LCLS Procurement and Mike Owens, Turner Construction

CM/GC Contract Status LCLS Purchasing Organization Procurement/CF/Turner Collaboration Change Orders Field Change Orders Trade Subcontracts Estimate to Complete Audits and Outcomes Summary

LCLS Procurement LCLS Procurement Organization LCLS Purchasing Manager – David Pindroh Barry Miller – Consultant James Dee - Contractor (Price/Cost Analyst – Negotiation) Scott Zadel – Sr. Construction Contracts Admin. – Turner David McGiven – Sr. Contract Administrator – Jacobs John Azevedo – Construction Contractor Administrator Beverly Freeman – Sr. Buyer Vince Villanueva – Buyer Sally Zapata – Jr. Buyer/Admin. Asst.

Procurement/CF/Turner Collaboration Weekly Meetings Advance Procurement Planning Report, Critical Items list, Tuner contract status reports (FCO’s, COR’s, PCO’s) Turner/LCLS Turner Procurement OAC (Owner/Architect/Contractor) CF/Procurement change disposition Partnering teams

Change Orders & FCO’s Status 17 Change Order Requests (CORs) settled contract modifications signed. 17 CORs open Total = ($87,082) 21 FCOs settled Total = $337,244 15 FCOs open Total Maximum Exposure = $626,315

Estimate to Complete 31 outstanding critical and advanced procurement planning requisitions still to be awarded. Estimated under $500K total (Ceramic Tile, Toilet Accessories, Glazing, and Curb & Gutter/Paving) 27 Sub Contract executed (99.6% of Volume) Current DOE Approval up to $90M, with local site office authority available for additional funds if needed.

Internal Audits and Outcomes Jacobs Internal Audit: An internal audit was completed on the Jacobs contract file on February 9, 2007 by SLAC Purchasing Officer and Deputy Purchasing Officer which resulted in the following operational improvements: Note: The Jacobs Contract was awarded by the SLAC Purchasing Dept. and subsequently transferred to LCLS Purchasing for on-going administration. Contract Files were organized and purged of extraneous documents. Training commenced for all Purchasing staff and requestors in Internal Policy and procedures (on-going) LCLS designated an Internal Review Board to initially review all transactions in excess of $10,000 and subsequently over $100,000 to assure compliance with P & P.

Internal Audits and Findings Turner Internal Audit: On May 14, 2007, the LCLS/Turner Construction Internal Procurement Assessment Team conducted an internal assessment of the Turner Contract that resulted in the following operational improvements: An allowance log table was implemented on July 1 to track Turner trade subcontracts that include/provide for fixed-unit rate allowances. Tracking of all related data and University formal written approval to Turner are required going forward. Turner to provide an adequate CAP (Contractor Acquired Property) furnished property tracking system for University or Turner furnished property. Established an LCLS Collaborative Partnering Team to review timeliness of FCO and COR processes, and review Brookhaven’s automated FCO and COR system as a process enhancement. Definitized FCOs/COR’s are formalized in a contract modification monthly. Total contract NTE $ amounts clearly identified in the contract modification. June 1, 2007. Require Turner to provide a status update and a formal Small Business as required.

External Audit and Findings PERT Review: On June 8th, 2007, A PERT Review Team conducted an assessment of the SLAC’s Procurement System that resulted in the following additional LCLS operational improvements: An implementation team meets weekly to proactively definitize all outstanding change orders under Turner. Outstanding change orders should be completed by July 31st. LCLS Project management to provide data necessary for internal cost analyst to complete analysis, determine reasonableness of pricing, and definitize all outstanding change orders. All data from LCLS Project staff to be furnished to Purchasing by July 31, 2007 In early June, the Laboratory has moved the Lab’s Deputy Purchasing Officer to Manage the LCLS Procurement cell to ensure continued operational improvements, resolve audit deficiency findings, and ensure Business Services Purchasing Procedures are followed consistently.

Summary Additional DOE Approval needed prior to any significant dollar modification. DOE SSO can approve limited additional “limited” funding if needed over the $90M. Delays due to additional SSO pre-bid and pre-award review of contracts >$100K as a result of overall PERT review findings. 2 Open Claims, 1 Open Change Order, 17 Open CORs, 15 Open FCOs Overall, significant operational improvements ensuring the timely processing of changes and contract compliance has been made and is expected to continue. Establishment of Collaborative Partnering teams with Turner. Formalized follow-up and control of contract administration. Contractual actions pending include an administrative zero dollar modification and authorization of final 4 trades and additional FCO funding.