David McGiven

FAC: Construction Procurement mcgiven@slac.stanford.edu

20-21 April 2006

Facility Advisory Committee (FAC)

Construction Procurement

David McGiven

LCLS Procurement Manager

David McGiven

FAC: Construction Procurement mcgiven@slac.stanford.edu

20-21 April 2006

Construction Procurement Overview

Contract Features

Unique Aspects of the Contract

Contract Administration Challenges

Initiatives

David McGiven

FAC: Construction Procurement mcgiven@slac.stanford.edu

20-21 April 2006

Contract FeaturesConstruction Management / General Contractor (CM/GC) services performed by Turner Construction

SLAC assumes most construction cost risk

CM/GC assumes schedule risk via liquidated damages

Two PhasesPhase 1- Preconstruction services, cost ~ $600k, constructability reviews, cost estimates, solicitation packages, etc.

Phase 2 - Turner Construction “holds paper” and provides: Construction management services for ~ 28 months, cost ~ $12 million (Fixed Price)

Awards/administers construction subcontracts (~ $65-70 million)

Manages and co-ordinates construction activities

David McGiven

FAC: Construction Procurement mcgiven@slac.stanford.edu

20-21 April 2006

Unique Aspects

Phase 2 is a unilateral option of SLAC

Providing direction to and surveillance over a CM/GC

Sub-subcontract costs pass through to SLAC

CM/GC is responsible for co-ordination efforts

Contractor controlled insurance program

Incentive Provisions—Safety, Schedule, Cost Control

Tunneling operations (25-30% of all construction)

David McGiven

FAC: Construction Procurement mcgiven@slac.stanford.edu

20-21 April 2006

Contract Administration Challenges

Developing “partnering” mentality with the CM/GCSafetyCoordinating with SLAC (security, ES&H, etc.) Schedule developmentRisk Management

Establishing responsive business controls Limited contingency management delegated to CM/GC

Blanket fundingMonthly reviews

Change order managementTechnical field order authority up to $25,000Flow chartsWeb based configuration control

Sub-subcontracts / Bidder selectionReview and approve bid packagesReview and approve award recommendation

David McGiven

FAC: Construction Procurement mcgiven@slac.stanford.edu

20-21 April 2006

Initiatives

Consultant support and reviewer feedbackDOE experienced construction project procurement professionals Estimator specialists and/or temporary personnel to augment staff Take review group/committee comments seriously

Work more closely with Project staff to understand milestones, develop strategies, advance planning, and avoid problemsPartnering SessionsTraining

Managing contractsControlling change order costs

David McGiven

FAC: Construction Procurement mcgiven@slac.stanford.edu

20-21 April 2006

Summary

Establishing dedicated procurement office, setting up effective business controls, and supporting project goals are challenging on a $75+ million construction management services contract

Initiatives and external advice should help achieve our goal to: effectively support the LCLS project with timely, cost effective acquisition support using best business practices

David McGiven

FAC: Construction Procurement mcgiven@slac.stanford.edu

20-21 April 2006

Questions/Comments?