ML20135D861

Informs Commission of Status of Procurement Streamlining & Reform Efforts Under NRC Procurement Reinvention Lab

ML20135D861
Person / Time
Issue date:	12/04/1996
From:	Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:
References
SECY-96-247, SECY-96-247-R, NUDOCS 9612100211
Download: ML20135D861 (6)

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• e... >.initia!s POLICY ISSUE December 4, 1996 (InfOrmation)

SECY-96-247 l

For:

The Commissioners From:

James M. Taylor Executive Director for Operations Subiect:

NRC'S PROCUREMENT REINVENTION LABORATORY

Purpose:

To inform the Commission of the status of the procurement streamlining and reform efforts under NRC's Procurement Reinvention Laboratory.

Discussion:

The Division of Contracts (DC), Office of Administration (ADM), is entering its fourth year as a Procurement Reinvention Laboratory (PRL).

NRC's PRL was approved by the National Performance Review (NPR) at NRC's request on November 9,1993, and was recently extended through April 1998 by the Administrator, Office of Federal Procurement Policy (0FPP). The PRL was established to streamline the acquisition process consistent with objectives of the NPR and procurement reform legislation. The NPR's basic objectives are to cut red tape, empower employees to get results, cut back to basics, and to put customers first.

Under the PRL, NRC has sought to improve procurement lead time and conserve staff effort through a variety of streamlining initiatives for contracting with commercial firms, non-profit organizations, and universities.

Key Innovations 1.

Waiver of Commerca Business Daily

.I The key element of our reinvention laboratory stems from the h I uniqueness of NRC's technical mission and relatively small cadre of qualified contractors who provide support to that mission.

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Contact:

NOTE:

TO BE MADE PUBLICLY AVAILABLE IN 5 Edward L. Halman, DC/ADM WORKING DAYS FROM THE DATE OF THIS PAPER 415-7305 gh/kd @tintch SU$7000" loo}2, y x o tM w -

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i obtained special waivers from 0FPP and the Small Business Administration under the authority of Federal Acquisition Regulation 5.202(b) to permit Contracting Officers to exempt selected research and technical assistance procurements from the l

Commerce Business Daily (CBD) advertising require nts of the

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Federal Acquisition Regulation. Using these waivers, NRC has sought to --

substantially reduce the lead time and staff resources necessary to conduct its procurements; make both technical and cost competition more effective and meaningful; and i

i continue its program of contract awards to small businesses.

i' Use of this waiver authority has relieved NRC evaluators of the burdens associated with evaluating a large number of technical proposals from marginally qualified firms. Greater focus can now be placed on distinguishing among the most qualified firms, i

resulting in more meaningful competition and better contractor selections. As a further consequence, NRC offices have exhibited i

a greater willingness to utilize the competitive process to acquire contractor support.

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Use of Oral Presentations 1

NRC has been a leader among agencies in pioneering the use of oral presentations. Under this innovation, each offeror makes an oral presentation to the NRC Source Evaluation Panel (SEP), in lieu of submitting a detailed written proposal.

Proposers. submit a cost proposal, resumes for key personnel and, if necessary, a brief i

description of their technical approach to supplement the oral j

presentation.

Evaluators then rate each presentation, including 1

j the limited written information, and make a selection.

NRC has used this process for 13 procurements under the PRL, and i

customer feedback has been positive.

Competitors and NRC staff i

alike welcome this innovation as a process that saves time for all

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parties and provides evaluators with a better understanding of l

offeror capabilities.

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Simolif_v the Contractor Selection Process t

l In addition to oral presentations, NRC has applied a variety of j

other innovations to further streamline the selection and award process:

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l designating fewer than three SEP members; setting a deadline for competitors' questions j

reducing proposal preparation time; allowing Contracting Officer discretion in waiving audit requirements; and foregoing discussions before award, when appropriate.

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Increased Threshold for Acouisition of Information Technoloav Resources In November 1993, GSA approved NRC's request for an increase in i

delegated authority to acquire IT resources valued at up to i

$10,000,000. This early DC initiative has subsequently been superseded by the Information Technology Management Reform Act of i

1996 which provided individual agencies with unlimited authority to make IT purchases.

j BankCard Proaram In July 1994, NRC established a Bankcard program to empower employees to irdtpendently make purchases of goods and services valued at $2,500 or less. BankCards are also used by procurement staff to make streamlined purchases up to $25,000.

NRC offices have embraced this procurement technique as a simple and efficient means of directly obtaining items and services required to t

meet mission needs.

Participation has grown to a total of 89 cardholders spread throughout 19 Headquarters and regional offices.

BankCard usage during the second year of the program more than doubled that for the first year in both transactions and dollars.

Since inception of the Bankcard program, NRC has completed 5,263 transactions j

totalling $3,142,680, saving over $250,000 in administrative costs, f

Federal-wide Initiatives i

NRC has joined 0FPP and other agencies on several Federal-wide i

initiatives:

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Electronic Commerce In April 1996, NRC acquired and installed software which permitted DC to solicit and receive vendor quotations using the Federal j

Acquisition Network (FACNET). Demonstration of this capability allowed NRC to use simplified acquisition procedures for i

prce:urements up to $100,000. This threshold was later raised Federr.1-wide under the authority of the Federal Acquisition Reform Act c# 1996.

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Performance-Based Service Contractino In response to an 0FPP initiative to increase the use of performance-based service contracting (PBSC), NRC pledged to use performance-based statements of work under two contracts.

consistent with PBSC objectives, NRC included measurable performance requirements and quality standards in these contracts l

which provided the contractors with a better understanding of

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contract requirements. NRC also served on a Federal-wide i

implementation task group which developed the "Best Practices i

Guide on Performance-Based Service Contracting," issued by 0FPP in i

April 1996.

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Past Performance as a Key Selection Criterion i

In February 1995, NRC established a policy requiring evaluation of j'

past contractor performance in all procurements, where feasible.

i Use of past performance has helped to simplify the proposal preparation and evaluation process and resulted in more meaningful i

i assessments of contractor capabilities.

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Alternative Dispute Resolution I

NRC also pledged to utilize alternative dispute resolution (ADR),

when needed, to help resolve conflicts informally, thereby avoiding the administrative and legal expenses associated with 1

resolution of contractor claims and disputes.

i NRC is currently applying ADR partnering techniques in managing the contract for refurbishment of the OWFN building, working in partnership with GSA, the prime contractor, and subcontractors to ensure that issues are surfaced quickly for resolution and that l

project objectives are accomplished as scheduled.

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Procurement Performance Measures i

NRC has also developed procurement performance measures as a i

participant in the Office of Management and Budget's "world class acquisition system" initiative.

l Measurements of Success i

At a July 1, 1994, Federal-wide meeting sponsored by the NPR and the Sull Agency Council, Vice President Gore praised NRC for its innovative approach to reinventing the procurement process, specifically citing NRC's concept of waiving the CBD for certain technical assistance and research contracts.

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Since that time, NRC has applied its innovative streamlining techniques i

to 123 procurements under the PRL. As a result, the average lead time j

for competitive procurements has dropped from 272 days in Fiscal Year 1994, to 226 days in Fiscal Year 1995, to 169 days in Fiscal Year 1996.

Examples of procurements which benefitted from use of these innovations 4

follow:

Five contracts for " Review of NDE Evaluation of Pressure Vessel Material Properties" were awarded under one competitive solicitation in 33 days.

1 One contract for " Support to the Former Soviet Union Republics for j

Activities Under the Cooperative Threat Reduction Program and l

Lisbon Initiatives" was competitively awarded in 71 days.

Eight contracts for " Technical Assistance for the New Thermal 4

Hydraulic Code Planning" were awarded under one competitive j

solicitation in 104 days.

5 Three contracts for " Acquisition of Nuclear Architect / Engineer l

(AE) Technical Assistance for Design. Inspections" were awarded under one competitive solicitation in 73 days.

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One contract for " Refurbishing the One White Flint North Building" j

was competitively awarded in 140 days.

1 0FPP recently cited NRC's creative use of the Internet as a 4

i "Consunication Success Story." NRC used the Internet to conduct i

negotiations with a firm located in a remote area of the former Soviet Union. As a result, NRC overcame time differences, problems with mail deliveries, and language barriers, saving over six weeks in the process.

Future of the PRL I

The most recent proposed rules published by 0FPP offer NRC even greater opportunities to improve the efficiency of the procurement process.

These changes give greater latitude to Contracting Officers in i

conducting the competitive process without overburdening the technical i

staff with undue procedural requirements.

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The Director, ADM, has designated an Advocate for Procurement Reform to ensure that NRC takes full advantage of these opportunities.

DC has also instituted a new procurement culture which emphasizes responsible risk taking and creates an environment which stimulates new ideas. We are confident that these changes will continue to improve the efficiency l

of the procurement process and better support agency mission needs.

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ocutive irector for Operations DISTRIBUTION:

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