Advance Procurement Plans

Sonny RogersContract Services Group Manager

Presented to: 2010 Capital PERT Annual Meeting

February 24, 2010

2 Managed by UT-Battellefor the U.S. Department of Energy

• Defined in SBMS, Purchasing Supplies & Services

• Required for procurements ≥ $500K

• Facilitates:– Early Contracts involvement– Increased communications with customer– Future staffing needs

• Web Based System which allows various reporting capabilities

• FY05 initial implementation

• Ideally suited for projects

Advance Procurement Plans

3 Managed by UT-Battellefor the U.S. Department of Energy

Step 1 During the annual business planning process for the upcoming fiscal year and as identified during the current year, management identifies procurements estimated to be $500K or greater that are planned for award.

Step 2 Management submits procurements meeting the requirements for advance procurement planning via the ORNL Advance Procurement Planning (APP) system.

Step 3 Appropriate approval is required for the APP:Project/Division Directors or designee must approve procurements greater than $500K.The appropriate Contracts Group Leader must approve procurements greater than $500K.The Contracts Division Director must approve procurements greater than $2M.The appropriate Level 1 Director must approve procurements greater than $5M.

Step 4 The APP information is submitted to Contracts (Procurement) Division via the APP system once appropriate approval has been given.

Step 5 APPs are revised as needed.

2.0 Required Procedure

Advance Procurement Plans (APPs) are required for all anticipated procurements $500K or greater.See also the Advance Procurement Planning Flowchart.

Advance Procurement Plans

4 Managed by UT-Battellefor the U.S. Department of Energy

2. ACQUISITION PLANNING

2.1 REQUIREMENT IDENTIFICATION

2.1.1 Planning The purpose of acquisition planning is to ensure that needs are met in the most effective, efficient, and economical manner. Planning should begin as soon as the need is identified, and should be appropriate and proportionate to the complexity and dollar value of the requirement. Specific planning considerations should include dollar value, sourcing, competition, urgency, type of subcontract, options, quality assurance requirements, Government-furnished property, security and other considerations. ORNL’s Advance Procurement Planning (APP) System is used for planning major procurements estimated to be $500K or greater. Use of the APP System is not required for task orders under Basic Ordering Agreements and Inter-Contractor Purchases (see Sect. 4.2.5). (See the procedure “Advance Procurement Planning” in ORNL’s Standards-Based Management System (SBMS) Subject Area “Purchasing Supplies and Services.”)

Advance Procurement Plans

5 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans

6 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans

14. UT-B Board of Directors Approval (>$75M)

7 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans

8 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans

9 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans

10 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans

11 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans

12 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans

13 Managed by UT-Battellefor the U.S. Department of Energy

Advance Procurement Plans