Progress in Improving Project Management at the Department of Energy 2002 Assessment (2003) / Chapter Skim
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9. Aquisition and Contracting
9. Aquisition and Contracting
Pages 57-66
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From page 57... ...
The committee continues to emphasize the importance of sound up-front acquisition planning, performance-based contracting, and the effective use of incentives as key elements in a successful project management process. DOE has taken positive steps over the past year in each of these areas.
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From page 58... ...
DOE Order 413.3 requires approval of mission need and acquisition plans by senior department management (DOE, 2000~. The deputy secretary approves projects of $400 million or higher, the under secretaries approve projects of less than $400 million and may delegate this authority to the assistant secretaries/ program secretarial officers as they deem appropriate.
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From page 59... ...
The committee examined some of the draft acquisition plans submitted by various DOE components. These included, among others, plans for the development of a materials facility for special nuclear materials, a technology center upgrade construction project, and a communications infrastructure modernization program.
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From page 60... ...
The committee believes that as more acquisition strategies are developed and as more staff become familiar with the benefits of addressing these issues early in the project, support for these management tools will increase. PERFORMANCE-BASED CONTRACTING It is vital that DOE project management staff be well versed in techniques that allow them to identify key outcomes to be achieved through contractor efforts, to develop performance incentive targets, and to monitor and oversee contractor performance.
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From page 61... ...
The committee's 2001 assessment described the basic components of a performance-based contracting template and defined how outcomes, performance metrics, quality assurance surveillance plans, and incentives all work together to produce a framework for contractor accountability (NRC, 2001~. As mentioned previously, a 1998 OMB study found both cost savings (of about 15 percent)
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From page 62... ...
Some of the contracts identified specific performance metrics (as, for example, safety or production performance at the Tooele depot for eliminating nerve agents)
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From page 63... ...
These views inhibit greater use of performance-based techniques and help to explain the government's reluctance to adopt a more objectively determined fee process. One of the positive aspects of using a performance-based approach was that such measures allow a better understanding of up-front expectations on performance and outcomes for all parties, while reducing the impact of unsubstantiated information on the award fee process.
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From page 64... ...
FINDINGS AND RECOMMENDATIONS Acquisition Strategy Finding: The committee believes that the August 2002 draft PPM provides a good framework for addressing acquisition strategy issues and offers a useful
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From page 65... ...
Performance-Based Contracting Finding: For large cost-reimbursement contracts, many factors compromise the ability of the government to use purely objective measures for assessing performance. Moreover, federal agencies are comfortable using a more traditional cost reimbursement award fee approach, in which the award fee is at the discretion of the federal project manager.
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From page 66... ...
2002. Progress in Improving Project Management at the Department of Energy, 2002 Interim Assessment.
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