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(M6) Procurement
Contractor Assurance

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

Revision and Date: Revision 1.4 - January 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.

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.
  • Develops, executes, and controls assurance activities.
  • Responsible for Procurement Manual contents and obtaining DOE approval.

3.0 Pri​​​mary Requirements

The M&O Contract

○       DOE Prime Contract No. DE-AC02-07CH11359 for the Management and Operation of the Fermi National Accelerator Laboratory (Fermilab)  clause I.128 – DEAR 970.5244-1 Contactor Purchasing System (JAN 2013) (DEVIATION: PF 2011-98, PF 2013-64)

○       Fermilab Performance Evaluation and Measurement Plan (PEMP) Objective 6.2 Acquisition Management

○       Fermilab Performance Evaluation and Measurement Plan (PEMP) Notable Outcome 6.2: Demonstrate improvement in procurement performance.

○       Appendix G. Purchasing System Requirements

○       Appendix H. Small Business Contracting Plan

○       C.4(c) Administration and Operation of the Laboratory

○       H.5 Administration of Subcontracts

○       H.9 Service Contract Act

Other DOE orders, regulations, and statutes

○       DOE Order 413.3b Program and Project Management for the Acquisition of Capital Assets

FRA Contract Clause Mapping to Management Systems

4.0 Management Sy​​stem Description Overview

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 Reports, Audits and Asse​​ssm​ents, and Required Records

Audits and 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.

Required Records

  • ​​Procurement files

6.0 Additional Refer​​ences

  • Applicable FRA Contract clauses
  • Director's Policy—Procurement
  • Procurement Policies and Procedures, including the Procurement Manual

7.0​ Definitio​ns of Acronyms and Terms


​CAS​Contractor Assurance System
CFO​​Chief Financial Officer
COO​​Chief Operating Officer
DOE​​Department of Energy
FRA​​Fermi Research Alliance
FTMS​​Foreign Travel Management System
​M&O​Management & Operating
​MSO​Management System Owner
​OMB​Office of Management and Budget
​PEMP​Performance Evaluation Measurement Plan
​PERT​Procurement Evaluation Reengineering Team
​RFI​Request for Information

​​Request for Proposal


8.0            Extension of Management System To South Dakota

This section formally captures the extension of this management system to Fermilab activities and roles at Sanford Underground Research Facility (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.