Effectiveness and Efficiency of Defense Environmental Cleanup Activities of DOE's Office of Environmental Management Report 1 (2021) / Chapter Skim
Currently Skimming:
6 Contract Structures
6 Contract Structures
Pages 79-92
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 79... ...
In its management analysis, DOE has identified important ongoing efforts, including "defining requirements in measurable outcomes" and "using objective performance measures focusing on outcomes to balance considerations of cost control, schedule achievement, and technical performance." Specifically, con tinued performance initiatives include: • Incorporating the concept of end-state contracting in major contracts and procurements to reinvigorate the sense of urgency and the completion mindset: o Building on successes of past initiatives, such as the accelerated clo sure of the Rocky Flats Plant1 in Colorado, to include a well-defined work scope with specific end states aimed at limiting increases to liabilities at EM sites; 1 Once it became no longer operational, the plant was known by other names such as "Rocky Flats Environmental Technology Site." 79
|
From page 80... ...
are transferred in a broader outcome based completion contract; and • Fosters incentive driven innovations in outcomes focused on project execution, as seen in the reduction of expected cleanup time at Rocky Flats Plant and the Fernald site. 2 Once it became no longer operational, it was known as the "Fernald Environmental Management Project."
|
From page 81... ...
. Multiple award 3 Anne Marie White Assistant Secretary for Environmental Management, Written Statement Before the Subcommittee on Strategic Forces Committee on Armed Services United States House of Representatives April 9, 2019.
|
From page 82... ...
Reading across these rows, the reader can see the differences in approach including for example the streamlined regulatory process, the use of innovation, and the strong partnering, some or all of which were noteworthy at Fernald and Rocky Flats. ANALYSIS OF PAST CASE STUDIES OF COMPLETION CONTRACT MODELS Two of EM's cleanup efforts that are often cited as successes in achieving program objectives at low cost and accelerated schedule were the aforementioned Rocky Flats Plant in Colorado and the Feed Materials Production Center (Fernald site)
|
From page 83... ...
$7.80 $27.00 Closure contract value ($B) $2.40 $4.86 Closure contract start date 12/2000 1/2000 Closure contract end date 12/2006 12/2006 Actual completion 10/2006 10/2005 Authorization/funding Levelized All closure Task-order driven funding; unique work funding flexibility authorized at approach contract signing Contract completion and Yes No No transition document Nature of relationship Strong partnering Strong Transactional approach focus partnering limits partnering focus benefits When end state defined to Pre-award Pre-award Post-award contractor (definition/scope of end state and date)
|
From page 84... ...
EM initially expected a cost-plus incentive fee closure contract to complete in December 2009, but were able to execute the project with a revised completion date of December 2006, completed over a month early and under the contract's target cost. EM and its contractor (Fluor)
|
From page 85... ...
In large part, success resulted from the significant culture change driven by the contractor's project integration management strategy and powerful focus on safety. Negotiated about 6 months after that of the Rocky Flats Plant, the contract for Fernald required development of a contract completion and transition document, which improved on the Rocky Flats contract (DOE, 2006, p.
|
From page 86... ...
DOE-directed changes automatically resulted in requests for equitable adjustment acting to check such requests. The project's final evolution to simplified, objective performance measures focused on overall site closure led to a consensus on the "critical few" performance measures and, eventually, end-state criteria.
|
From page 87... ...
The four common types of government contracts available to EM include: • Fixed-price contracts -- used when contract risks are defined within acceptable limits. Such contracts require "delivery of a product or services 14 Anne Marie White Assistant Secretary for Environmental Management, Written Statement before the Subcommittee on Strategic Forces Committee on Armed Services United States House of Representatives April 9, 2019.
|
From page 88... ...
. -- FFP contract -- FFP level-of-effort term contract -- FFP materials reimbursement type contract -- Fixed-price contract with award fees -- Fixed-price contract with economic price adjustment -- Fixed-price incentive (FPI)
|
From page 89... ...
Over the past 30 years, EM has experienced strengths and weaknesses of various contract forms and currently is implementing the IDIQ delivery method to select the best contract form for the task or project. FINDING: The single-award IDIQ contract vehicle DOE is currently imple menting is one approach, though by no means the only one, to implement end-state contracting.
|
From page 90... ...
NOTE: CR = cost reimbursable; CPPC = cost plus percentage of cost; CPFF = cost plus fixed fee; CPAF = cost plus award fee; CPIF = cost-plus-incentive fee; T&M = time and materials; FPEPA = fixed price with economic price adjustment contract; and FPIF = fixed price incentive fee.
|
From page 91... ...
Similarly, EM has declared the $21 billion IDIQ for the Savannah River Site Integrated Mission Completion Contract to be a completion contract. (DOE took bids on the RFP until December 1, 2020.)
|
From page 92... ...
1995. Estimating the Cold War Mortgage: The 1995 Baseline Environmental Management Report.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.