ARRA Contracting Issues Savannah River Site Small Business Forum

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ARRA Contracting IssuesSavannah River SiteSmall
Business Forum

• Progress and Accountability in Implementing the
• American Recovery and Reinvestment Act
• Office of Environmental Management
• Ralph Holland

November 2, 2009
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Starting Point February 2009

• Meet the objectives of the Act
• Promptly
• Transparently
• Delivering meaningful and measureable results
• On schedule and at or under cost

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EM ARRA Contracting Goals

• Initiate immediate action
• Shovel ready projects
• Well defined scope
• Stable regulatory environment
• Significant footprint reduction by 2011
• Accelerate ARRA investment through early
  obligation of funds
• Aggressive goals balanced by appropriate
  management controls

4
Progress

• 29 Contract Modifications issued
• Major projects valued gt5.5B
• ARRA funds obligated to contract gt5.8B
• ARRA funds costed gt652M
• 5 New contract awards
• 1 award by 9/30/09, final awards early 2010
• Estimated value 250M
• Numerous support actions

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Process

• Balancing priorities within EM objectives
• Commitment to small business at prime and
  subcontract level
• Competition
• Contract type
• Significant number of contract changes
• Accelerating previously competed work
• Early initiation of activities through unpriced
  changes
• Commitment to prompt definitization
• Model modification standardized practices
• Streamlined internal processes

6
Contract Implementation

• Risk based approach to contract administration
• Reviewed risks identified by OMB and DOE-IG
• Reporting and transparency
• Segregation of funds and performance metrics
• Developed ARRA Contract Management Plan template
• Tailored to unique ARRA requirements
• Risk mitigation tool
• Guide to oversight execution

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Small Business

• Prime contract
• ARRA allocation of EM goal is 288M
• ARRA on track to exceed 400M
• Small business obligations to date 393M
• Subcontract
• Simple objective Meet or exceed existing goals
• Very early, but trends are positive
• At SRS, 191M with 74 to small businesses

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Challenges

• Contract definitization by 9/30/09
• External audit requirement
• Proposal inadequacies
• Solutions developed case-by-case
• Results 85 of contracts definitized by 9/30/09
• Internal processes
• Balancing need for appropriate management
  oversight and control with need for expeditious
  processing
• Commitment to success led to streamlined
  processes

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Conclusion

• EM ARRA activities off to an outstanding start
• Majority of projects are under contract
• 96.6 of EM ARRA funding is obligated
• 85 of contract changes definitized
• 393M in direct awards to small business
• Challenges remain
• Continue to maximize subcontract opportunities
  for small businesses
• Safe delivery of our commitments
• Appropriate rigor and discipline through project
  completion is critical
• Expect significant independent validation of
  results