NNSA's Office of Acquisition and Project Management (APM), the community manager for acquisition professionals, hosted NNSA Contracting Officers in Albuquerque this week to align NNSA acquisition policies and procedures with Departmental goals and priorities, and to clarify roles and responsibilities among the various COs across the Nuclear Security Enterprise.
A key discussion topic was how NNSA was implementing the Deputy Secretary's policy for improving acquisition planning and contract management for capital asset projects. The primary principle behind this policy is that the Department must align contract incentives and vehicles with taxpayer interests. Each party must share the risk by bearing responsibility for its own actions. The policy includes guidance to ensure proper project planning so that requirements are clearly defined before issuing a solicitation; to first consider the use of a firm-fixed-price contract to complete work requirements; to establish objective performance measures when a fixed-price contract is not in the government’s best interest; to utilize fee strategies that assure each party in the contract bears responsibility for its own actions; and to document and stay apprised of real-time, accurate, and reliable project performance data.
With this new organizational construct in place, NNSA has delivered its $725M project portfolio $50M - or 7% - under budget during the past the three years. In 2013, NNSA was removed from the GAO High Risk list for construction projects, with a Total Project Cost up to $750 million as a result of the improvements it is making in NNSA contract and project management.