1. DRAFT Procurement Joe Collins July 31, 20121

2. DRAFT Function Support the Lab’s mission of advancing the understanding of the fundamental nature of matter and energy by providing subcontracting services in a helpful, effective, and timely manner. This includes a strong emphasis on advance acquisition planning for projects and large complex procurement actions. July 31, 20122

3. DRAFT Procurement 3 Staff = 20 FTEs July 31, 2012

4. DRAFT Procurement An independent assessment – Procurement Evaluation and Reengineering Team (PERT) review – was conducted April 23-27, 2012. Team led by Mark Waite, J Lab Procurement Director, comprised of five contractor and three federal procurement employees. Evaluation included: Transactional reviews Results examination Overall process evaluation Review of quality assurance of procurement processes and data collection methodologies Results: “We believe the procurement system and existing controls are adequate and no observations of a significant nature exist that would warrant disapproval of the contractor purchasing system.” Team recognizes the positive spirit, responsiveness of the staff, and notes that Procurement is “well integrated and supportive of FNAL projects and departments”. Team recommends structured buyer training in cost/price analysis, contract administration, and sole source documentation. Team recognizes that staffing is lean and is concerned that additional workload would require the addition of staff to the Procurement effort. Team believes Fermilab would significantly benefit from the implementation of an e-catalog system. Action Plan An ‘in house” training program that addresses cost/price analysis, contract administration, and sole source documentation will commence in October. Staffing concerns are currently being addressed within Business Operations, and in particular through this Procurement Readiness Review. The implementation of an e-catalog system is being evaluated and considered as a new laboratory project. July 31, 20124

5. DRAFT Procurement The DOE Procurement Balanced Scorecard (BSC) self-assessment tool is used annually to measure system performance from four perspectives: Internal Customer Learning & Growth Financial Annual BSC results under the FRA contract have ranged from 93-97 on a 100 point scale. Fermilab has one of the lowest cost/spend ratios (FY11 = $0.012) of all the DOE laboratories. While this can point to efficiencies, it may also be a harbinger of problems that lie ahead. Estimated procurement obligations for FY2012 are $170,000,000.00 July 31, 20125

6. DRAFT Procurement Other Activities: Contractor Supply Chain Council (CSCC)—a contractor led, DOE sponsored group that is charged with leveraging supply chain functions in support of the DOE Program Mission, and providing focused communication between the DOE Procurement Executive, and the Department’s Contractor Procurement Managers. Fermilab is one of the two Science Lab CSCC representatives. Procurement Evaluation and Reengineering Team (PERT)—a joint DOE/Contractor working group that conducts peer reviews, promotes training, and procurement studies in support of the DOE complex. Fermilab is represented on the PERT steering committee, and actively participates as a team lead or member. Center for Advanced Procurement and Supply (CAPS) Research, a global research organization sponsored by the W.P. Carey School of Business at Arizona State University, and the Institute for Supply Management (ISM). Benchmarking activities are ongoing, and include DOE/NNSA and cross-industry exercises. Fermilab is represented on the DOE/NNSA CAPS benchmarking committee. July 31, 20126

7. DRAFT Procurement Other Activities, Continued: Science Lab (SC) Procurement Managers—a network of SC Procurement managers that continuously exchange information and meet biannually for training and sharing. There is an increased amount of information exchanged between the Argonne National Lab and Fermilab Procurement Departments. This mutual relationship is especially centered upon issues unique to both Labs. Fermilab Procurement is always working to ensure an effective relationship with the DOE site office, and all other levels of DOE. Monthly meetings with the DOE Contracting Officers, plus daily dialogue and correspondence are important aspects that help in promoting our relationship with the government. Procurement liaisons assigned to a dozen projects. Procurement 101 training to projects, divisions/sections, and other interested groups. July 31, 20127

8. DRAFT July 31, 20128 ComputingBill Koncelik DESByron Clark IARCSandra Efstathiou LBNETom Powers MicroBooNEByron Clark MINERvAJoe Morgan Mu2eRon Evans NOvABob Cibic Project XBob Cibic SLI Utility UpgradeSteve Gaugel SRFRon Evans FESS OperationsGordon Bagby WDRSByron Clark

9. DRAFT PROJECT LIAISONS Project liaisons are primary points of contact for the project management team. The Mu2e and LBNE liaisons are responsible for most critical project procurements, and will know the status of procurements assigned to other procurement administrators. The liaisons attend project management group and other project based meetings. They routinely meet with the senior procurement staff and procurement manager. It is estimated, as projects ramp up, that the Mu2e and LBNE liaisons will devote 75 to 100 percent of their time to these projects. July 31, 20129

10. DRAFT Procurement July 31, 201210

11. DRAFT Procurement July 31, 201211