Management System Owner: Acquisition Officer
Revision Revision 1.5 Date: August 2, 2019
1.0 Purpose
To provide the Procurement Services necessary to support the science mission of the Laboratory in accordance with all applicable laws, regulations and Department of Energy (DOE) requirements as set forth in DOE Contract No. DE-AC02-07CH11359. Procurement is responsible for maintaining and operating a DOE approved Procurement System to acquire materials and services for the Laboratory. The Procurement Management System consists of policies and procedures that are used to plan, direct, control, assure and improve the execution of the elements of the Laboratory's Procurement responsibilities in accordance with DOE Contract No. DE-AC02-07CH11359 and relevant DOE orders and guidance.
2.0 Roles and Responsibilities
Title |
Responsibilities |
Laboratory Director | - Receives delegated authority from the FRA Board of Directors for procurement actions.
- Delegates authority to the CFO.
|
Laboratory Chief Financial Officer (CFO) | - Delegates authority to the Acquisition Officer.
- Provides budget allocations to Laboratory organizations based on programmatic requirements.
- Ensures DOE Performance Evaluation Measurement Plan (PEMP) Objectives and Notable Outcomes for Procurement are met.
|
Acquisition Officer | - Management System Owner (MSO).
- Coordinates major procurement activities with the CFO, Procurement Manager, project managers, and line managers.
- Interfaces with Legal Office and DOE to ensure compliance.
- Delegates authority to Procurement Manager.
- Develops and controls assurance activities.
- Responsible for Procurement Manual contents and obtaining DOE approval.
|
Procurement Manager | -
Delegates authority to Procurement staff in accordance with responsibilities.
-
Executes the requirements of the Procurement System to meet the Laboratory requirements in accordance with the contract.
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Executes assurance activities to ensure compliance.
|
3.0 Primary Requirements
3.1 The M&O Contract
DOE Prime Contract No. DE-AC02-07CH11359 for the Management and Operation of the Fermi National Accelerator Laboratory (Fermilab)
C.4(c) Administration and Operation of the Laboratory
Appendix G - Purchasing System Requirements
Appendix H - Small Business Contracting Plan
H.5 Administration of Subcontracts
H.9 Service Contract Act
I.128 - DEAR 970.5244-1 Contractor Purchasing System (Jan2013) (DEVIATION: PF 2011-98, PF 2013-64)
Contract deliverables are entered in a database and tracked on a monthly basis, with upcoming deliverables highlighted prior to their due date. Each Procurement deliverable is assigned to a Procurement representative who reports on the submittal/status as it becomes due.
3.2 Fermilab Performance Evaluation and Measurement Plan (PEMP)
- Goal 6.0: Deliver Efficient, Effective, and Responsive Business Systems and Resources that Enable the Successful Achievement of the Laboratory Mission(s).;
- Objective 6.2: Provide an Efficient, Effective, and Responsive Acquisition Management System and Property Management System
- Objective 6.2 Part 1: Acquisition Management System
PEMP Notables and their sub-actions are entered in iTrack with each Procurement deliverable assigned to a Procurement representative. PEMP Objectives are part of Procurement's "culture foundation," and are supported by four (4) key focus areas: capacity, capability, communication, and confidence.
3.3 Other Required DOE Orders and Instructions
DOE Order 413.3B Program and Project Management for the Acquisition of Capital Assets
3.4 FRA Contract Clause Mapping to Management Systems
https://fermipoint.fnal.gov/organization/ood/cas/
4.0 Management System Description
Procurement Management provides procurement services to the entire Laboratory in accordance with the prime contract, DOE and Federal Acquisition Regulations, and best business practices. The laboratory is contractually required to maintain a DOE approved Procurement System. The objective of the Procurement Management System is to implement the policies and procedures necessary to execute the acquisition of materials and services in an efficient, effective, responsive, and compliant manner.
4.1 Procurement Processes
4.1.1 Planning
The planning of procurement actions requires the coordination of procurement activities with requisitioners, project managers, potential sources of supply or services, DOE and other stakeholders. The amount of planning time required depends upon the complexity, and value of the procurement. Common, off-the shelf goods do not typically require much planning as the information regarding sources of supply is normally readily available. Long lead time, high value, and technically complex equipment or construction services may require initial market research, or the issuance of a Request for Information.(RFI) to help determine budgets and lead times; followed by the distribution of a Request for Proposal (RFP).
4.1.2 Solicitation
Most solicitations for low dollar value (under $10k) goods and services are done by requesting quotations verbally, or via e-mail. Larger dollar value and technically complex procurements are solicited by Request for Proposal (RFP), and transmitted via the electronic solicitation system.
4.1.3 Negotiation
Prior to award of any procurement action, price, schedule, terms and conditions may need to be negotiated.
4.1.4 Source Selection
Competition among sources of supply that are responsive and responsible, and which yield the low priced technically acceptable choice, is the preferred manner of source selection for common off–the–shelf items. Specialized equipment, fabrications, construction, and procurements containing performance specifications are normally sourced based upon best value in which technical, past performance and cost components are weighed to determine the source that offers FRA the best value.
4.1.5 Administration
Procurement ensures compliance by the subcontractor and FRA with the subcontract terms and conditions.
4.1.6 Close Out
This is an extension of subcontract administration that includes proof of final acceptance, payment, and completion of system requirements necessary to final-close the procurement action.
4.1.7 Payment
There are special terms that may be applied to larger, complex subcontracts such as progress and milestone payments; as well as special considerations for small businesses that ensure expedited payment.
4.1.8 ProCard
Management of a Laboratory-wide credit card program.
4.2 Procurement Compliance
4.2.1 Audit
Audits by FRA Internal Audit, external auditors, DOE, and the Inspector General take place throughout the year, and they cover subjects such as Cost Allowability, Subcontract Administration, and Purchase Card.
4.2.2 Reporting
Procurement reports on activity such as the quantity of purchase orders, purchase card transactions, total obligations; small business awards, demographic distribution of dollars obligated, and answers several DOE data calls throughout the year, as well as reports requested by other government entities.
4.2.3 Education
Staff training is planned and conducted in accordance with the DOE approved training policy. External training is common in Cost/Price Analysis and Construction; and other topics such as Service Contract Act and Davis Bacon Act are covered internally.
4.3 Documentation
Subcontract pre- and post-award administration is documented throughout the procurement cycle in a Procurement file. This includes requisition, proposals, records of negotiation, memorandums of purchase, subcontract, chronologies, e-mails, and memos to file.
4.4 Small Business Program
This is carried out in accordance with Appendix H of the Prime Contract. Compliance, reporting, mentor protégé, and outreach activities are key elements of the program.

5.0 Policies
6.0 Key Processes, Procedures, and Manuals
7.0 Approach to Collaboration and Communication
Procurement has assigned Procurement Liaisons to serve as Procurement’s representatives
to the Divisions/Sections/Projects (D/S/Ps).
They are the communication conduit to ensure Procurement understands
project needs and projects understand what is happening with their
procurements. As the communication conduit, they gather and report critical information
between D/S/Ps and Procurement.
8.0 Contractor Assurance Requirements
8.1 Metrics and Key Performance Indicators (KPIs)
8.2 Assessments
- A-123 annual assessment
- PERT Review
- Director's Review of Procurement
- DOE review and approval of Procurement Policies and Procedures Manual
- Internal Audits—In accordance with IA risk assessment
- PEMP and Notable Outcome assessment
- Ongoing DOE review of Procurement procedures and files.
- Annual Balanced Scorecard Report
- Annual CAPS Benchmarking Survey
8.3 Approach to Issues Management
Procurement uses the iTrack database to report on and status formal issues and actions resulting from the various reviews and assessments noted in 8.2 above.
8.4 Lessons Learned
Procurement conducts weekly Knowledge Sharing Sessions to highlight experiential leaning from current issues, to share information about process improvements, and to highlight new processes and initiatives that impact the Procurement team. Additionally, the Compliance team shares the results of file reviews and identifies trends and weaknesses in Procurement processes so corrections/improvements can be implemented. Procurement also participates in HPI assessments.
8.5 Risk Management
Procurement proactively manages risk by ensuring the correct contract type is selected for each new procurement. Procurement collaborates with the D/S/Ps to understand when items/services are needed, and helps to reduce schedule risk through early engagement and acquisition planning. Additionally, Procurement's compliance reviews ensure the team is operating within the prime contract, Procurement Policy and Procedures Manual, and appropriate FAR and DEAR requirements.
Risks/assessments monitored by:
Self-Assessment Program
- iTrack Procedures and Risk Assignment
- Corrective Action Plans – in iTrack
9.0 Required Reports and Records
9.1 Required Records
9.2 Required Reports
Procurements submits reports as required under the prime contract. Examples include the Small Business Subcontracting Plan, Balanced Scorecard Report, and Negotiated Cost savings Report.
10.0 Extension of Management System to SDSTA (SURF)
Finance Section/Procurement provides support to FRA's South Dakota Services Division, located at SURF, through the Central Procurement organization. Two employees have been assigned to South Dakota - SURF Services Subcontract, Procurement Liaison to SDSD and a SURF Infrastructure Subcontract Administrator. They will be available to management and employees by telephone or email. This support is identical to Procurement support provided to other FRA projects.
11.0 Additional References
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Applicable FRA Contract clauses
12.0 Acronyms and Terms
BODA | Beam-On Dose Assessment |
CEMP | Comprehensive Emergency Management Plan |
CPR | Cardiopulmonary Resuscitation |
DOE | Department of Energy |
D/S/P | Divisions, Sections, and Projects |
EMS | Environmental Management System |
EO | Environmental Office |
ESH | Environmental, Safety and Health |
FESHCom | Fermilab ES&H Committee |
FESHM | Fermilab Envirnomental, Safety, and Health Manual |
FPE | Fire Protection Engineer |
HAD | Hazard Analysis Document |
HPR | Highly Protected Risk |
IEPA | Illinois Environmental Protection Agency |
IH | Industrial Hygiene |
ISO | International Organization for Standardization |
NEPA | National Environmental Policy Act |
NPDES | National Pollution Discharge Elimination System |
NTS | Noncompliance Tracking System |
ORPS | Occurrence Report and Processing System |