P rocurement E valuation & R eengineering T eam February 7, 2012

PERT Charter  Support DOE/NNSA Procurement Executives and the Contractor Supply Chain Council –Procurement System Reviews –Procurement Process Improvements –Procurement Knowledge Management –Procurement Training –Procurement Performance Measurement and Management –“Other” related business management initiatives, studies, and other projects, as assigned 2

Procurement System Reviews  PERT Peer review process –Provide independent verification and validation of the contractor’s procurement system and self-assessments –Provide input to DOE-CO for procurement system recertification –Identify and share best practices –“Forward looking, pragmatic, advisory” instead of “prescriptive, legalistic, audit- and compliance-driven” 3

Procurement Process Improvements  Evaluate current trends in procurement  Share current effective processes –(site and review team)  Identify “best practices” during peer reviews  Arrange for demonstrations of “best practices” at annual PERT meeting  Display on PERT website. 4

Procurement Knowledge Management 5

Procurement Training 6

Procurement Performance Measurement and Management  DOE Balanced ScoreCard (BSC) Performance Measurement Program for Purchasing and Personal Property Management Systems –Established December 17, 1997 –Measures/Metrics developed by PERT –Last updated for FY2012  Center for Advanced Purchasing Studies (CAPS) DOE/NNSA procurement performance benchmarking –Prior to FY2012 conducted biennially –Now annually –Latest questionnaire 58 questions (with sub questions) 7

“Other” related business management initiatives, studies, and other projects, as assigned  Cost Improvement Reporting Template/Guidelines  Standardized Contract Format - Standard Research Subcontract (Educational Institution and Non-Profit Organizations) 8

PERT Opportunities, Challenges and Goals in 2012 Opportunities  Improve recognition for PERT participation and sites successful review  Training and recruitment of new PERT review team members  Transformation to risk based review with focus on process improvements and efficiencies  Evaluate and revise PERT Review criteria 9

PERT Opportunities, Challenges and Goals in 2012 Challenges  Budget Constraints –Travel, training,  Succession Planning –Skill mix of teams, subject matter experts  Membership on and support for multiple committees (PERT, ICPT, SCMC, CSCC) –Overlapping objectives, competing /conflicting priorities  Site management commitment to PERT Participation  Time commitment for PERT reviews  IT support demands 10

PERT Opportunities, Challenges and Goals in 2012 Goals  Revise final report transmittal letter to acknowledge noteworthy practices and recognize effort in preparing for and completing review  Focus on increasing the pool of individuals qualified as PERT Review team lead and team member  Establish standard for participation on PERT Review  Develop training for new PERT Review team members  Review and revise as necessary –Website –Criteria –Handbook  Clarify applicability of Peer Review Process and review frequency of PERT reviews 11