1. www.em.doe.gov Acquisition and Contract Management Update Jay Rhoderick Associate Deputy Assistant Secretary for Tank Waste and Nuclear Material AtomEco-2012 Moscow October 16, 2012

2. www.em.doe.gov 2 DOE Organization Chart

3. www.em.doe.gov 3 EM Organization Chart

4. www.em.doe.gov 4 Key Performance Indicators EM Goals for Fiscal Year 2012 included: Goal 1: Reduce the life cycle cost and accelerate cleanup Goal 2: Improve safety and quality performance toward a goal of zero accidents, incidents, and defects and continue to improve the EM Complex-wide Safety Culture Goal 3: Improve project, budget, and contract management with the objective of delivering results on time, within cost, and with world-class technical competencies Goal 4: Achieve excellence in management and leadership with the objective of making EM an employer of choice in the Federal government Goal 5: Execute the EM mission in a sustainable manner

5. www.em.doe.gov 5 EM FY 2012 Annual Performance Agreement Goal #3: Improve contract and project management with the objective of delivering results on time, within cost, and with world-class technical competencies. Use an internal quality assurance process to Monitor and validate effectiveness of corrective measures reviews Monitor contract and project management staffing to sustain Federal oversight of the EM mission Improve and Expand use of independent contract and project reviews Become a stronger owner by holding contracts accountable and pursuing partnering relationships with contractors Strengthen the integration of acquisition, budget and project management Develop EM-specific cost estimating policy, guidance, historical cost databases, and expertise to improve ability to perform Independent Government Cost Estimates and Reviews Shift away from management and operating culture to take advantage of traditional (non-management and operating contract)

6. www.em.doe.gov 6 Monitoring Contractor Performance Performance Evaluation Measurement Plans Monthly Contractor Performance Reports Review Earned Value Management Systems Quarterly Project Reviews Project Peer Reviews Project Assessment and Reporting System Integrated Planning, Accountability and Budget System Safety Reporting Oversight by external reviewers –  Defense Nuclear Facility Safety Board  Environmental Management Advisory Board  Government Accountability Office  Office of the Inspector General

7. www.em.doe.gov 7 Comparison of EM Liability Costs by Mission Area (in Constant 2011 Billion Dollars)

8. www.em.doe.gov 8 Where Our Work is Performed 8

9. www.em.doe.gov 9 Quantity of EM Major Contract Types Contract TypeTotal NumberTotal Dollar Value Cost Plus Award Fee (CPAF) 20$51.857B Cost Plus Incentive Fee (CPIF) 5$7.553B Cost Plus Fixed Fee (CPFF) 1$407M Fixed Price Plus Award- Fee (FPPAF) 1$98.7M Firm Fixed Price3$125.9M ESPC Fixed Price Delivery Order 1$795M

10. www.em.doe.gov 10 EM Contract Type by Site SiteContractorContract Type Carlsbad Field OfficeNuclear Waste Partnership LLCCost Plus Award Fee Cast Specialty Transportation, IncFirm Fixed Price Visionary Solutions LLCFirm Fixed Price IdahoIdaho Treatment GroupCost Plus Award Fee CH2M-WGI LLCCost Plus Incentive Fee Oak RidgeIsotek Systems LLCCost Plus Fixed Fee LATA-Sharp Remediation Services LLCFirm Fixed Price URS/CH2M Oak Ridge LLCCost Plus Award Fee Wastren Advantage, Inc.Cost Plus Award Fee Office of River ProtectionAdvanced Technologies and LaboratoriesCost Plus Award Fee Bechtel NationalCost Plus Award Fee Washington River Protection CompanyCost Plus Award Fee Portsmouth/Plymouth Project OfficeBabcock & Wilcox Conversion Services LLCCost Plus Award Fee Wastren-EnergX Mission Support LLCCost Plus Award Fee Fluor-B&W Portsmouth LLCCost Plus Award Fee LATA Environmental Services Kentucky LLCCost Plus Award Fee Restoration Services, IncTime & Materials Swift & Staley Mechanical Contractors, Inc.Cost Plus Award Fee RichlandCH2M Hill Plateau Remediation CompanyCost Plus Award Fee HPM CorporationHybrid – Firm Fixed Price/Cost Plus Award Fee Mission Support Alliance LLCCost Plus Award Fee Washington Closure Hanford LLCCost Plus Incentive Fee Savannah RiverAmeresco Federal SolutionsFixed Price (Energy Savings Performance Contract Parsons Infrastructure and Technology GroupCost Plus Incentive Fee Savannah River Remediation LLCCost Plus Award Fee Savannah River Nuclear SolutionsCost Plus Award Fee Wackenhut Services, Inc.Cost Plus Award Fee Small SitesCH2M Hill B&W West Valley LLCCost Plus Incentive Fee Energy SolutionsFirm Fixed Price URSCost Plus Incentive Fee PortageHybrid – Cost Plus Award Fee/Fixed Unit Price

11. www.em.doe.gov 11 Continuous Improvement EM continues to seek ways to streamline the acquisition process To improve contractor relations EM has established partnering agreements with major contractors at EM sites Increased use of fixed price contracts Implement use of hybrid contracts where entire work scope cannot be fixed price EM has conducted sessions with contractors to develop lessons learned and best practices that can be implemented to improve contracting practices

12. Questions? Please email me at voglerkm@state.gov