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(M6) Procurement
Contractor Assurance

​​​​​​​​​​​​​​Management System Owner: Acquisition Officer

Revision  Revision 1.5           Date: August 2, 2019

1.0​ Pur​​pose

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 Responsibili​​​ties

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.
  • Executes assurance activities to ensure compliance.

3.0 Pri​​​mary 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 Sy​​stem 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 Compli​​ance

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   Doc​​​umentation

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 Busin​ess 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.

   ​​
Procurement to payables process
 

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)

  • Procurement uses various metrics to understand performance and identify areas for process improvement. 
    • The average daily requisition (req) count is tracked to understand the workload coming into the department and the corresponding flow of subcontracts awarded.
    • Post-award compliance reviews are conducted on a sampling of subcontracts valued <$250,000 to measure file documentation compliance.
    • Pre-award compliance file reviews are conducted on all subcontracts valued >$250,000 to measure file compliance.
    • Award cycle times are measured from receipt of a proper/actionable req to award.
    • Unauthorized commitments are counted to identify trends and educate "repeat offenders."
    • ProCard transaction compliance reviews are conducted on a sampling on transactions monthly measure compliance with the ProCard program.

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

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

  • Procurement files

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 Refer​​ences

  • Applicable FRA Contract clauses  

12.0   Acronyms and Terms

​Acronym​Definition
BODABeam-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
​EOEnvironmental 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
​QA​Quality Assurance
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