NWC Contracting Strategy

1
NWC Contracting Strategy

• DOE?CAA
• Panel on Transformation of the Weapons Complex
• May 1, 2008
• Walt Lips, Senior Source Evaluation Advisor
• Office of the General Counsel
• National Nuclear Security Administration
• 202-586-1806, Walter.Lips_at_NNSA.DOE.GOV

2
Outline

• Background and Objective
• Planning Schedule
• Expected Results
• Planning Considerations
• Wrap-up

3
Vision of the Future Complex

• A smaller, safer and less expensive complex that
  leverages the scientific and technical
  capabilities of our workforce,
•    and meets national security requirements.

4
Transformation Strategies

• Long-term strategies
• In partnership with DoD, transform the nuclear
  stockpile.
• Transform to a modernized, cost-effective nuclear
  weapons complex.
• Create a fully integrated and interdependent
  nuclear weapons complex.
• Drive the science and technology base essential
  for long-term national security.

5
Need for NWC Efficiencies

• An ever increasing nuclear weapons program
  budget would be required without transformation
  due to escalating costs for landlord and security
  functions and greater demands of maintaining an
  aging stockpile

6
NWC Contracting Strategy

• Objective
• Evaluate alternative contracting approaches for
  promoting more effective and efficient technical
  and business operations in support of a more
  responsive and affordable Nuclear Weapons Complex
  (NWC)
• Approach
• Engage in an open, public process to stimulate
  interest, innovative input, and potential
  participation in the procurement process from
  industry and other interested parties.

7
NNSA MO CONTRACTS Key Dates
If all remaining Award Term periods are earned.
8
POTENTIAL CONTRACTING STRATEGIES

• Consolidate two or more MO contracts
• Use of other types of contracts on a single or
  multiple facility basis
• Use of Function-based contracts applicable to two
  or more sites (e.g., construction, IT)
• Transfer work scope from one or more current
  contracts to other existing or new contracts

9
Expected Results

• Reduced cost and improved performance
• More uniform program execution with improved
  integration of resources and priorities
• Increased standardization of technical processes
  and application of best practices to improve
  operational effectiveness and efficiency
• Improved inter-site coordination, cooperation,
  information sharing and technical integration
• Improved workforce planning, maintenance of
  critical skills, and human capital management
• Increased contractor authority and accountability
  -- potential increased use of industry-owned
  facilities and equipment

10
Promoting Competition

• NNSA seeks industry input on likelihood of
  companies to compete or re-compete
• NNSA seeks industry input on how to encourage
  competition

11
Planning Schedule

• Establish Team/Start Task 6/15/07
• Draft Request for Information (RFI) 7/13
• Review Draft RFI with NNSA, DOE 7/16-8/28
• Release RFI-1 9/10
• Analyze Responses over 20 received 10/1-
• Identify Potential Contract Options
  (RFI-2) 1/23/08
• One-on-One meetings over 30 3/08
• Analyze Responses, Due Diligence,
• Develop Contract Strategy 4/1-6/30
• Potential follow-on tasks
• Acquisition Plan, draft RFPs, Industry days,
  Site Visits

12
Planning Considerations

• Supplemental Programmatic Environmental Impact
  Statement process
• Congressional actions budgets, Congressional
  Commission on U.S. Strategic Posture
• Transition schedule to new Administration

13
Wrap-up

• DOE/NNSA have much to gain from early engagement
  with industry/interested parties in the
  procurement process
• Final action on NNSAs contract strategy by a new
  Administration depends in part on the rigor and
  thoroughness of this process