Nevada Site Office Management & Operating Contractor Post Award Briefing

Nevada Site OfficeNevada Site OfficeManagement & Management &

Operating ContractorOperating ContractorPost Award Briefing Post Award Briefing

Jay H. NormanJay H. NormanSource Evaluation Board ChairSource Evaluation Board Chair

OverviewOverview• Major Contract ElementsMajor Contract Elements• Contractor OrganizationContractor Organization• Key PersonnelKey Personnel• Transition PlanTransition Plan• Schedule for Document ApprovalSchedule for Document Approval• NSO ActionsNSO Actions• NSO Transition TeamNSO Transition Team

Major ElementsMajor ElementsNew Contract ClausesNew Contract Clauses

• Contractor Assurance System (CAS)Contractor Assurance System (CAS)– Identifies risks, key activities, and Identifies risks, key activities, and

accountabilitiesaccountabilities– Notification to CO of significant changesNotification to CO of significant changes– Rigorous, risk based, credible self-assessments, Rigorous, risk based, credible self-assessments,

feedback and improvementfeedback and improvement– Encourages third party certifications (VPP, ISO Encourages third party certifications (VPP, ISO

9001, ISO 14001)9001, ISO 14001)– A method of validating assurance processesA method of validating assurance processes– Integration with ISM and ISSMIntegration with ISM and ISSM

Major Elements Major Elements New Contract Clauses New Contract Clauses

(Cont)(Cont)• NNSA/NSO OversightNNSA/NSO Oversight

– Contractor cooperation with NSO personnelContractor cooperation with NSO personnel– Nuclear facility and high hazard activities, Nuclear facility and high hazard activities,

oversight at transaction leveloversight at transaction level– When CAS is operating effectively, When CAS is operating effectively,

nonnuclear operations oversight at systems nonnuclear operations oversight at systems levellevel

– For programs, projects, and business For programs, projects, and business systems, oversight focus on PEP and CAS systems, oversight focus on PEP and CAS metrics and targetsmetrics and targets


(Cont)(Cont)• Parent Organization OversightParent Organization Oversight

– Monitor Contractor’s programmatic ISM and Monitor Contractor’s programmatic ISM and ISSM performanceISSM performance

– Assist Contractor in meeting mission and Assist Contractor in meeting mission and operational requirementsoperational requirements


(Cont)(Cont)• Award TermAward Term

– Initial contract performance period – 5 yearsInitial contract performance period – 5 years– Starts in second full year of the contractStarts in second full year of the contract– Must meet performance objectives:Must meet performance objectives:

• Meets all commitments in support of Stockpile Meets all commitments in support of Stockpile Stewardship Levels 1 and 2 milestones identified in the Stewardship Levels 1 and 2 milestones identified in the Milestone Reporting ToolMilestone Reporting Tool

• Earns greater than 95% of Incentive Fee performance Earns greater than 95% of Incentive Fee performance measures in PEPmeasures in PEP

• Award Fee rating greater than 85% in PEPAward Fee rating greater than 85% in PEP• Meets or exceeds Award Term Incentives in PEPMeets or exceeds Award Term Incentives in PEP

– If met, contract can be extended one year up to If met, contract can be extended one year up to a maximum of 10 years total contract a maximum of 10 years total contract performanceperformance

Major Elements New Contract Major Elements New Contract ClausesClauses

Award Term (Cont)Award Term (Cont)– Decision on Award Term is unilateral by FDODecision on Award Term is unilateral by FDO– Failure to earn Award Term twice makes clause inoperativeFailure to earn Award Term twice makes clause inoperative– ““Significant failure” can result in loss of up to 3 years of Significant failure” can result in loss of up to 3 years of

earned Award Termearned Award Term• Defined by CODefined by CO• In areas of management controls or performance failureIn areas of management controls or performance failure


(Cont)(Cont)• Liaison Support with OGAsLiaison Support with OGAs

– Requires Contractor to support NSO interface with other Requires Contractor to support NSO interface with other agencies. Examples:agencies. Examples:• DNFSBDNFSB• AFAF• State regulatory agenciesState regulatory agencies

Major ElementsMajor ElementsSimilar Contract ClausesSimilar Contract Clauses

• Workforce Transition, Contractor Workforce Transition, Contractor Compensation, Benefits, Pension, and Compensation, Benefits, Pension, and Labor RelationsLabor Relations– Retain existing employees except current Key Retain existing employees except current Key

Personnel and direct reportsPersonnel and direct reports– Existing labor agreements to remain in forceExisting labor agreements to remain in force– Salary and benefits comparable to existingSalary and benefits comparable to existing– Pension plan preserves accrued benefits and Pension plan preserves accrued benefits and

recognizes earned service creditrecognizes earned service credit– Personnel Appendix to be submitted for CO Personnel Appendix to be submitted for CO

approvalapproval

Major ElementsMajor ElementsSimilar Contract ClausesSimilar Contract Clauses

• Fee PolicyFee Policy– No change from current contractNo change from current contract

• Performance Based ManagementPerformance Based Management– No change from current contractNo change from current contract

• Continuation of Predecessor Contractor’s ObligationsContinuation of Predecessor Contractor’s Obligations– Contractor will assume existing agreements and regulatory obligations Contractor will assume existing agreements and regulatory obligations

entered into under the current contractentered into under the current contract

NSTec Organization and Key NSTec Organization and Key PersonnelPersonnel

Proposed NSTec GovernanceProposed NSTec Governance

NSTec Board of Directors Jim O’Neill, Chair4 NG 1 CH2MHILL2 AECOM 1 NFS

Provide Assistance and Consultation asrequired by NSTec General Manager

Parent OrganizationOversight Committee

Gregg Donley, NG; Chairwith one or more senior

executives from each partner

NSTec, LLCGeneral Manager

Dr. Steven M. YoungerDeputy General Manager

Mike Butchko

Senior Advisory GroupTroy WadeBob Seldon

Lisa Gordon-Hagerty

1. Monitor activities, performance, and issues with focus on ISM, ISSM, nuclear and non-nuclear operations

2. Bring best practices and lessons learned

3. Facilitate NSO interaction at corporate level

4. Assess adequacy of employee compensation and incentive programs

5. Bring corporate support as needed

1. Appoint NSTec General Manager and evaluate performance

2. Assess performance and provide reachback to corporate resources

3. Develop/Update Parent Organization’s Oversight Plan

4. Act as fiduciaries wrt NSTec including appointment/ oversight of audit committee

ESH&Q FunctionsESH&Q Functions

Mgr/Dep

ESH&Q Bus Ops/CFO Plan&IntegPlan & Int

DE&SSHmlnd Sec& Def App

Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

Environmental Policy & Compliance

Safety & Health

Quality Assurance

Independent Audit & Assessment

Gary Griess

Business Operations & CFO Business Operations & CFO FunctionsFunctions

Mgr/Dep



Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

ControllerContracts and PurchasingProject Finance and BudgetsInformation Technology

Jack Stumpf

Planning & Integration Planning & Integration FunctionsFunctions

Mgr/Dep



Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

Cost Estimating

Baseline Integration and Control

Performance Measurement, Risk Analysis and Strategic Planning

IT System Design and Reporting

Al Rubalcaba

DESS – Experimentation DESS – Experimentation Functions Functions

Mgr/Dep



Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

Physics Experimentation

Diagnostic Development and Instrumentation

Livermore Operations

Los Alamos Operations

Jim Holt

Test Readiness FunctionsTest Readiness Functions

Mgr/Dep



Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

Readiness Planning High Bay

Authorization Basis Archiving

Field Operations

Ping Lee

Defense Facilities & Defense Facilities & Nuclear Operations Nuclear Operations

FunctionsFunctionsMgr/Dep



Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

Resources/Requirements Management

Nuclear Facilities Management and Support

Operations and Nuclear Support

Non-Nuclear Facilities and Management Support

Dave Post

Homeland Security & Homeland Security & Defense Applications Defense Applications

FunctionsFunctionsMgr/Dep



Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

Emergency Response

Non-Proliferation

Counter Terrorism Center

Other DOE & Non-DOE Work

Bob Summers

Environmental Environmental Management FunctionsManagement Functions

Mgr/Dep



Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

Waste Operations

Waste Programs

Nuclear Waste Transport

Environmental Restoration and Monitoring

John Ciucci

Site Operations Site Operations FunctionsFunctions

Mgr/Dep



Env Mgt Site Ops

TRDef Fac & Nuc Ops

Expermnt

Engineering Medical Services

Emergency Operations Services Construction Services

Facilities and Infrastructure Logistics Services

A.C. Hollins

NSTec Critical ActivitiesNSTec Critical Activities• Mobilization of the Transition TeamMobilization of the Transition Team 1 April 1 April• NSO approval of the Transition PlanNSO approval of the Transition Plan ~15 April~15 April• Accept transfer of incumbent personnelAccept transfer of incumbent personnel• Prepare employee benefit packagesPrepare employee benefit packages• Prepare and validate payroll systemPrepare and validate payroll system• Prepare and validate ES&H PlanPrepare and validate ES&H Plan• Prepare to execute oversight planPrepare to execute oversight plan• Validate process to accept assetsValidate process to accept assets

NSTec Key IssuesNSTec Key Issues

• SafetySafety• Incumbent employeesIncumbent employees• Continuity in operationsContinuity in operations• Communication and relationshipsCommunication and relationships

Schedule for NSO Approval Schedule for NSO Approval of Contractor’s Key of Contractor’s Key

DocumentsDocuments• Transition PlanTransition Plan• Personnel Appendix APersonnel Appendix A• Parent Organization Oversight PlanParent Organization Oversight Plan• Diversity PlanDiversity Plan• Small Business Plan Approved by Small Business Plan Approved by

Procurement COProcurement CO

NSO ActionsNSO Actions

• Support review/approval process for documentsSupport review/approval process for documents• Provide information to assist Contractor during Provide information to assist Contractor during

transitiontransition• Issue new COR delegationsIssue new COR delegations

NSO Transition TeamNSO Transition Team• Core TeamCore Team

– Team LeaderTeam Leader Jay NormanJay Norman– Legal AdvisorLegal Advisor Kathy IzellKathy Izell– BusinessBusiness Darby DieterichDarby Dieterich– National SecurityNational Security John LeppertJohn Leppert– AdministrativeAdministrative Catherine Catherine

MorrisMorris• Points of ContactPoints of Contact

– SafetySafety Mike MarelliMike Marelli– InfrastructureInfrastructure Gerry BaberoGerry Babero– EnvironmentEnvironment Sabine CurtisSabine Curtis– SecuritySecurity Heidi BrockHeidi Brock– Human Relations AdvisorHuman Relations Advisor Andy Gonzales Andy Gonzales

(SC)(SC)

Nevada Site Office Management & Operating Contractor Post Award Briefing

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