1. LBNE Procurement Overview Elaine McCluskey, LBNE Project Engineer Director’s Review of Project Procurement Support 8-9 August 2012

2. Outline LBNE scope overview LBNE organization LBNE Project status Project procurement planning to date Procurement documents Procurement in the resource-loaded schedule Critical procurements Risks related to critical procurements Project procurement staffing plan Director's Procurement Review, 8-9 August 2012 2

3. Sample with bullet points First Bullet Second Bullet –More –Yet more –Still more –Less important »Trivial New Neutrino Beam at Fermilab… Directed towards a distant detector at the Sanford Underground Research Facility in Lead, SD on the Fermilab site 10 kton Liquid Argon TPC Far Detector just below the surface 3

4. Near Site: Beamline and Conventional Facilities Primary proton beam extracted from existing MI using conventional magnets in a concrete tunnel Neutrino beam is created by a proton beam striking target in a concrete below-grade target hall, focusing with horns, then decaying through a 200 m pipe to a hadron absorber: components are similar to the NuMI beamline Director's Procurement Review, 8-9 August 2012 4

5. Near Site: Beamline and Conventional Facilities Grade-level target and beam aiming through earth to South Dakota 1300 km away creates 58-ft high embankment with limited rock excavation Concrete below-grade enclosures 3 surface service buildings New cooling pond 4 m diameter steel pipe surrounded by 5.5 m radius of concrete shielding Director's Procurement Review, 8-9 August 2012 5

6. Far Site LAr Time Projection Chamber Detector Two 5-kt fiducial mass (18- kt total mass) detectors in a common pit just below grade Detector construction: Membrane cryostat made of foam insulation and stainless steel panels affixed to concrete liner cast against rock Cryogenics system to cool and purify liquid argon to 87 deg K Wire detector planes and readout electronics to capture neutrinos in the argon volume Beam Director's Procurement Review, 8-9 August 2012 6

7. Far Site Conventional Facilities Sited at Sanford Underground Research Facility (SURF) in Lead, SD Rock excavation for detector pit Reinforced-concrete building with thick concrete roof topped with rock shielding Utilities provided from SURF Director's Procurement Review, 8-9 August 2012 7

8. Project Organization Director's Procurement Review, 8-9 August 2012 Far Site CF will be managed for LBNE by SDSTA via subcontract 8

9. Project Office Organization Director's Procurement Review, 8-9 August 2012 9 Project Management Office Project Cntrls: R O’Sullivan, Lead M. Gardner D. Jones (LANL) P. Novakova (BNL) J. Sefcovic (Contractor) Financial Mgr: T. Chapman future staff Computing Coord: E. Berman Systems Engineering: (J. Dolph) Risk Mgr: M. Dinnon Documentation: A. Heavey QA Mgr: future Procurement Mgr future future procurement specialist Admin Support: S Wright Tom Powers is presently the Procurement Dept liaison, other procurement specialists also support LBNE.

10. About SURF & LBNE Sanford Underground Research Facility (SURF – the place) is owned by State of South Dakota and operated by the South Dakota Science & Technology Authority (SDSTA – the legal entity). DOE funds SURF operations through LBNL who contracts with SDSTA for this purpose. Director's Procurement Review, 8-9 August 2012 10

11. More About SURF & LBNE LBNE has been working with SDSTA on our conceptual design since 2009 with all far site CF A/E design contracts flowing through them. LBNE and SDSTA (with DOE concurrence) have agreed that SDSTA will manage the Far Site CF design and construction work, since it will be constructed on their site and their staff has unique knowledge and capabilities. In conjunction with DOE-FSO and DOE-CH, the current plan is that DOE will have a no-cost land lease for the site. Director's Procurement Review, 8-9 August 2012 11

12. Project Status LBNE had a larger scope in March 2012 and was preparing for a CD- 1 review, when Brinkman directed the project to be reconfigured for a phased approach to achieving its CD-0 mission need (achieved Jan 2010). Reconfigured current LBNE CD-1 project is smaller scope, TPC range of $660M-$940M. Currently preparing for DOE CD-1 Independent Project Assessment (Lehman review) on Oct 30-Nov 1, so everything (including procurement plans) are in state of revision. Expect re-estimating and scheduling complete at end of August CD-2 to CD-4 dates will be pinned down with final schedule. Some references will be made to possible scope opportunities that could be incorporated into the project with non-DOE commitments prior to CD-2. This would allow the Far Detector to be moved underground and a Near Neutrino Detector and associated CF to be built on the Near Site. Procurement planning is attempting to take possible increases in scope into account, including CF contract value ranges. Director's Procurement Review, 8-9 August 2012 12

13. Funding Profile Recently received from DOE OHEP - OPC/PED/Construction split not final. FY10&11 costs ~ 30M are additive Director's Procurement Review, 8-9 August 2012 FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018FY 2019FY 2020FY 2021FY 2022Total PED 4,00016,00028,00034,00028,000 - - - - - - 110,000 Con - - -10,00070,000130,000160,000 133,000 - 663,000 OPC 17,00010,000 - - - - - - - - - 27,000 Total 21,00026,00028,00034,00038,00070,000130,000160,000 133,000 - 800,000 13

14. Summary Budget as of July 2012 (AY$M) WBSDescriptionBase CostContingencyTPC TOTALLBNE547245807 1.01Project Management 441660 1.02Beamline 10459163 1.03Near Detector 7310 1.04WCD Conceptual Design 11 1.05Far Detector 17076246 1.06.01Conventional Facilities PM 527 1.06.02CF Near Site 15487241 1.06.03CF Far Site 521769 Director's Procurement Review, 8-9 August 2012 Budgets are being revised through re-estimating/scheduling for all L2 projects, so these totals are subject to change. 14

15. Overall Procurement Planning to Date As scope has been developed, discussions with Fermilab Procurement Department and DOE Fermi Site Office (FSO) and DOE Chicago Operations (CH) have occurred. Tom Powers is our Fermilab Procurement Department liaison, who participates not only in meetings requested by Project, but also in weekly PM meetings. –Other procurement staff participate as necessary –Fermilab legal staff are also involved in planning discussions Main foci to date have been planning for –CF design and construction. –Far Detector cryostat and cryogenic design and construction. –Memoranda of Understandings/Statements of Work with university and laboratory collaborators Have discussed with DOE getting CD-3a for early Near Site CF scope, even prior to CD-2, for technical reasons. Director's Procurement Review, 8-9 August 2012 15

16. FD Cryostat - Procurement Planning to Date FD cryostat procurement planning has been an ongoing discussion with Fermilab Procurement since 2010, when the membrane cryostat concept was initiated. –Technology is common in LNG ships and tanks, HEP application is new. –Two vendors identified (GTT-France & IHI-Japan) with some intellectual property issues being understood with the vendors and worked through. –Prototype under construction using Japanese vendor has provided insights into how 10-kt Far Detector cryostat procurement may occur. –Anticipating a design-build approach, a construction management firm would solicit the design of the cryostat from the two vendors who have been prequalified by LBNE as meeting the technical design requirements. $37M ($FY10) to be procured ~ 2019 Director's Procurement Review, 8-9 August 2012 16

17. FD Cryogenics - Procurement Planning to Date Learning from other major cryo projects like FRIB, cryogenics procurement has been changed from one large contract to at least 4 identified separate procurements: –Refrigeration plant $20M ($FY10) –LAr and LN2 storage vessels –Recondensors for cryostats –Purification system vessels & components –In-house expertise in some of these areas leads to Fermilab engineering with industry bidding, fabrication, and installation. –Where insufficient in-house expertise exists, consultant engineering firms would produce construction documents for bidding. –All work would be managed by LBNE/Fermilab as the construction manager at Sanford Laboratory. $36M ($FY10) to be procured ~ 2019 Director's Procurement Review, 8-9 August 2012 17

18. Near Site CF- Procurement Planning to Date Planning began in 2010, when it was recognized by Fermilab Procurement & Facilities Engineering that larger A/E contracts would be needed for future large projects. Three types of task ordering agreements were put in place @ $5M each –General A/E (4 consultants) –Tunneling/underground A/E (3 consultants) –Project management/construction management (3 consultants) LBNE expects to select one firm for design and another for CM pre- construction services after CD-1 approval, early 2013.Total Design period consultant services ~ $14-16M. Construction is expected to be via one to a few large construction contracts with total value ~ $130M. Early CD-3a procurement for large embankment with associated utilities to allow time for settlement (up to 2 years) may be desirable (~$30M). Discussing with FESS/Engineering their staffing to be the construction manager using CM consultant as extension of their staff. Director's Procurement Review, 8-9 August 2012 18

19. Far Site CF- Procurement Planning to Date As noted earlier, SDSTA will manage and led LBNE CFFS design and construction. LBNE, SDSTA, and Fermilab Procurement began discussing contracting models to accomplish this late 2011. Model is for 3 sole source task ordering agreements/subcontracts to SDSTA for –staff support/CM services (~12-26M) – needed by 1 Oct 2012 –subcontracted consultant A/E and CM professional services (~4- 13M) – needed in 2013 –Subcontracted and small amounts of self-performed construction (~35-140M) – needed in 2015-16 Due to complicated nature of Far Site CF procurements, Federal Project Director (Pepin Carolan) initiated meetings in February with FSO and CH contracting officers and LBNE to prepare for upcoming large procurements. Director's Procurement Review, 8-9 August 2012 19

20. MOUs - Procurement Planning to Date As with most HEP projects, a portion of the work is done at other laboratories and universities, mainly for the detector. The university and laboratory work responsibilities post-CD-1 is in the process of being sorted out, and so a comprehensive list of collaborator MOU/SOWs is still in preparation. MOUs are written to outline basic common agreements over many years, with annual SOWs funded by purchase orders to carry out the intent of the MOUs. List of MOUs with total PO values from 2009-2012 (may not be complete list) Director's Procurement Review, 8-9 August 2012 20 INSTITUTIONTotal PO value 2009-12 BNL740k UCLA350k Colorado State U45k UC Berkeley3,190k Georgia Tech130k Indiana U80k Institute for HEP30k LLNL600k Univ College, London 35k LANL5,000k Michigan State U270k U of Minnesota350k

21. Procurement Documents Project Acquisition Plan prepared for March CD-1 Director’s Review for larger scope – currently in revision –24 July 2012 draft provided for this review –Prepared with input from L2 managers –Describes make-buy decisions for major components –Describes procurement strategies for major purchases Most of these have been discussed with Procurement Department who have helped with planning Director's Procurement Review, 8-9 August 2012 21

22. Procurement Documents DOE Acquisition Strategy prepared for March CD-1 Director’s Review for larger scope Revised for smaller scope and draft provided for this review Written by Federal Project Director with LBNE input Director's Procurement Review, 8-9 August 2012 22

23. Procurement in Resource-Loaded Schedule - 1 Current RLS is from March 2012 CD-1 Director’s review and is in the process of being updated. Procurement process is detailed out in the schedule in various formats. Example from Beamline shield block procurement: We recognize that long procure and delivery period may require intermediate monitoring milestones Director's Procurement Review, 8-9 August 2012 23

24. Procurement in Resource-Loaded Schedule - 2 Another example from CF Near Site construction: Director's Procurement Review, 8-9 August 2012 24

25. Procurement in Resource-Loaded Schedule - 3 The Project recognizes that the time needed for the procurement review and approval within Fermilab and by DOE should be reflected in the RLS. The thresholds are noted in the LBNE Acquisition Plan, section 1.2, and will provide input to planning durations and milestones. –>5M < 25M: FSO review and approval of all procurements, durations to be determined –>25M < 50M: FSO and CH review and approval of all solicitations and awards; durations to be determined –> 50M: same as above with additional higher level approvals required, increases durations by 6 weeks This work will be closely coordinated with Fermilab Procurement and FSO to be sure adequate schedule durations for procurement planning exists. Director's Procurement Review, 8-9 August 2012 25

26. Critical Procurements LBNE has defined for this review the threshold for critical procurements to be those > $5M total value or with possible complex managerial or vendor issues. (values & dates being re-estimated) Director's Procurement Review, 8-9 August 2012 26 WBSDescriptionValueAnticipated contract type Anticipated year of contract award 130.02Beamline Shielding Blocks$8MFixed price 2019 130.05 Far Detector Cryostat (with contingency) $41MBest value, fixed price 2019 130.05 Far Detector Cryogenics Systems (multiple subcontracts, with contingency) $49MBest value, fixed price 2019 130.05 Far Detector Cryo Fluids (with contingency) $26MBest value, fixed price 2020 130.06CF Near Site Design (with contingency)$16M Task ordering agreements already in place, not-to-exceed 2013 130.06 CF Near Site Construction (with contingency) $130MBest value, fixed price 2015-16 130.06 CF Far Site SDSTA Staff Support (with contingency) $26MSole source not-to-exceed 2013 130.06 CF Far Site Design (depends on scope, with contingency) $4-13M Sole source with best value, fixed price sub-tier contracts 2013 130.06CF Far Site Construction (depends on scope, with contingency) $35-140MSole source with best value, fixed price sub-tier contracts 2015-16

27. Risks related to Critical Procurements Several risks have been identified either formally or in procurement planning documentation, related to the critical procurements: –Possible litigation may occur with large subcontracts –Bids on cryostat and cryogenics subcontracts are too high, resulting in repackaging and rebidding the contracts –Potential for subcontract claims particularly for rock excavation work –Commodity prices may be volatile, increasing costs beyond standard escalation –Cryostat & cryogenics: original plan was for one large procurement for both. Having separate subcontracts means the acceptance test for the systems will be non-cryogenic, less desirable from a technical perspective Risks were originally assessed with probabilities and impacts assigned for larger scope. Risk re-assessment is in progress. Director's Procurement Review, 8-9 August 2012 27

28. Staffing for Procurement LBNE recognizes the volume, value, and complexity of the Project’s procurements will strain existing Fermilab Procurement staff, and could slow the project, so dedicated staffing is required. Current estimate is based on management judgment at this time. Currently planning for a Procurement Manager in the Project Office starting at 0.5 FTE in FY13, going to 1.0 FTE in FY14 and beyond. This is being reviewed against present Fermilab Procurement liaison effort of 0.8 FTE. One additional Procurement Specialist is planned to be added to the Project at 0.5 FTE in FY15, 1.0 FTE starting in FY16 and beyond. Discussions about dedicated staffing have just begun between the Project and Fermilab Procurement, so not certain if new staff would be matrixed into the Project or direct hired into the Project, and whether additional staff for routine procurement would remain as an overhead function. –Expect to resolve this in next few months Director's Procurement Review, 8-9 August 2012 28

29. Summary The LBNE Project will build a beamline at Fermilab and a far detector at SURF in South Dakota. The project is in the process of re-estimating and replanning due to recent direction from DOE OHEP with a budget ~ $800M. Procurement planning was initiated several years ago and continues, involving the LBNE Project, FNAL Procurement Department, and DOE-FSO and DOE-CH. The LBNE Acquisition Plan describes major make-buy decisions and outlines major procurements planned on the project. Procurement activities are identified in the RSL and milestones included – these are being updated during replanning. Critical procurements and procurement risks have been identified. The Project is planning for 2 new hire or fully matrixed procurement staff, being reviewed with the Procurement Department. Director's Procurement Review, 8-9 August 2012 29