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Procurement Practices and Procedures

Procurement Practices and Procedures . Thomas Nowak Procurement Department Manager. Outline. Procurement supports technical divisions who deliver scope Procurement processes well integrated Active supplier management established Adequately staffed and delivering procurements Summary.

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Procurement Practices and Procedures

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  1. Procurement Practices and Procedures Thomas NowakProcurement Department Manager
  2. Outline Procurement supports technical divisions who deliver scope Procurement processes well integrated Active supplier management established Adequately staffed and delivering procurements Summary T. Nowak, May 2014 SPAFOA Meeting
  3. Business Partner to Technical Divisions Procurement fully integrated with technical divisions Contract and administrative support for Conventional Facilities Division Jie Wei Accelerator Systems Division Director Brad Bull Conventional Facilities & Infrastructure Division Director Georg Bollen Experimental Systems Division Director T. Nowak, May 2014 SPAFOA Meeting
  4. Technical Procurement Scope Understood Major procurements (>$50k) in P6 schedule 261 major procurements over a six-year period 40 major procurements have been let T. Nowak, May 2014 SPAFOA Meeting
  5. Procurement Approach Technical procurements are defined in the integrated master schedule Engage technical divisions to define the evaluation/selection criteria in all Request for Proposals (RFP) and determine “Best-Value” in all project procurements best value = Develop strategies for high complexity procurements and minimize risk for one-of-a-kind procurements (versus commercially-off-the-shelf) Find “partners” in industry that meet the project’s needs Unique and challenging supply base (no follow-on business, unique product specifications, tight tolerancing) Develop long-term relationships Build a supply base that can support the requirements and schedule We let firm fixed-price or phase funded contracts, no “cost-plus” T. Nowak, May 2014 SPAFOA Meeting
  6. Procurement Processes Tied into Schedule Facilitates Pre-Procurement Planning Procurement plan ties in directly with baseline schedule and incorporates cross-functional groups Durations vary depending on complexity 1 1 6 2 3 4 5 6 5a 2 3 5 5a 4 T. Nowak, May 2014 SPAFOA Meeting
  7. Procurement Complexity Identified in Schedule Management tool reflective of the risk and effort needed to successfully deliver the procurement based on technical impact, acquisition type, and supply base strength Procurement complexity levels are High, Medium, or Low, determined by Control Account Manager (CAM) and approved by the Procurement Department Manager High if The procurement is life of facility or cannot be removed for repair or Technical impact is High or Procurement is build-to-spec or Supply base is weak Medium if not High and Technical impact is Medium or Procurement is build-to-print or Modified standard equipment or Supply base is adequate Low if not Medium or High Technical impact assessed by CAM is low and Procurement is COTS and Supply base is determined to be strong T. Nowak, May 2014 SPAFOA Meeting
  8. Storage and Warranty Considerations Identified in Schedule Risk mitigation tool utilized to identify unique storage and warranty needs CAMs identify storage requirements Space Duration of storage Climate control requirements Export compliance and special handling Develop and negotiate warranty plans for subsystems that arrive more than six (6) months before commissioning Based on machine hours versus calendar days T. Nowak, May 2014 SPAFOA Meeting
  9. Commodities Procurement Commodity procurement includes all project requirements that are considered COTS and those technical items that do not require FRIB to develop a specification to procure Examples Vacuum supplies and components – flanges, valves Electrical supplies and components – Programmable Logic Controller (PLC) components, cable, wire Hardware items – screwdrivers, nuts, bolts, fasteners Cryogenic supplies – gauges, bayonets, valves Chemicals/cylinder gases Machining services – water jet, milling, turning Office supplies Pursuing potential e-commerce to help further streamline Similar to system Stanford Linear Accelerator Laboratory, California (SLAC) is currently usingand Brookhaven National Laboratory, New York (BNL) is testing T. Nowak, May 2014 SPAFOA Meeting
  10. Procurement StaffEffectively Delivering Procurements Cohesive and dynamic team is moving forward with successful delivery of procurements Leveraging experience and organizational expertise Technical Develops Request for Quote (RFQ)/Request for Proposal (RFP), solicits and procures all technical equipment Negotiates and manages high dollar/high risk contracts for technical procurements Commodities Solicits and procures all Commercially-off-the-Shelf (COTS)/commodities Manages low dollar/low risk technical procurements Materials and Logistics Manages the receiving and acceptance of technical procurements Manages the storage and inventory in support of timely delivery for installation TECHNICAL Tom Nowak Procurement Manager (Tech Buyer III) Jim Zeqollari Technical Buyer III Susan House Technical Buyer II April Bryan Procurement Coordinator COMMODITIES Lara Druelle Technical Buyer I Barb Pollack Technical Buyer I Ben Shuart Technical Buyer III MATERIALS AND LOGISTICS Nathan Pease Research Trades Assistant II Jenifer Gilbert Materials & Logistics Team Leader T. Nowak, May 2014 SPAFOA Meeting
  11. Staffing Model Staffing model has been well planned to ensure delivery of FRIB high complexity procurements Most high complexity procurements are supported by Zeqollari, Shuart, and House Druelle supports some high complexity procurements and assumes more as we increase procurement activity Recruiting for a level 1 commodities buyer and a level III technical buyer to support upcoming peak in procurements Current staffing plan supports the requirements through 2015 The procurement process has been streamlined allowing the buyers to focus on the core responsibilities Procurement project coordinator maintains interfaces with customers and enables buyers to focus on technical procurements Ensures conformance of regulatory requirements Procurement Manual (S10202-MA-000079) Lara Druelle TechnicalBuyer I Tom Nowak Dept. Manager (Tech Buyer III) Susan House TechnicalBuyer II Jim Zeqollari Technical Buyer III Ben Shuart Technical Buyer III April Bryan ProcurementCoordinator T. Nowak, May 2014 SPAFOA Meeting
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