1. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 Facility Advisory Committee (FAC) Construction Management Procurement David McGiven LCLS Procurement Manager

2. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 CM Procurement FAC Findings, Comments, Recommendations Overview CM/GC Issues are Top Priority Incentives to Reduce Costs Procurement Group Staffing Dedicated Purchasing Meetings

3. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 CM/GC Issues are Top Priority Added to the agenda of weekly procurement status meetings List of Critical Procurements’ status updated weekly Includes requirements ancillary to CM/GC work Spreadsheet of current CM/GC actions updated and distributed Awards and contemplated awards Potential Change Orders and Change Order Requests Other Issues Field Change Order log Need for additional dedicated meetings established Individual with action item to arrange meeting identified Change Control Board Meetings Procurement attendance

4. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 Incentives to Reduce Cost Concern over abuse if CM/GC got their way CM/GC wanted to be able to use contingency for themselves Sharing of leftover contingency dismissed Cost savings assumed to be negligible Agreement on percent and use unlikely Discussions continue Approval of schedule showing shorter duration Mitigates delayed start Must fit project fiscal funding plan Ability to take advantage of shorter duration considered

5. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 Procurement Staff Responsibilities Agile Organizational Structure Fully staffed (pending accelerated construction schedule) Allows for filtering down of priorities and quick response Team oriented approach Includes support from Stanford General Counsel and existing SLAC Procurement Department Reporting and Co-ordination BSD Division Manager Reviews and approves awards and modifications over $2 Million Project Management – Procurement Oversight Operates at high level Interface to Project Management Provides direction and support

6. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 Procurement Staff Responsibilities (con’t) LCLS Procurement Manager and Deputy Manager reviews and signs off on awards and modifications over $50K to $ 2 Million Manager and Deputy develop modifications, author and sign off on Deficiency Notices and Official letters Attend meetings FCO Administrator Issuing and Resolution of FCOs top priority Specialist on board to support entire process

7. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 Dedicated Purchasing Meetings Weekly meetings with CM/GC PM and Superintendent Procurement related actions status Potential Change Orders Field Change Orders Other Issues Special meetings scheduled as needed Advance planning Avoid surprises Problem Resolution Internal strategy and approach Open discussion with CM/GC

8. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 Summary Procurement process continues to be streamlined Procurement Oversight individual New full time experienced FCO Administrator New full time Deputy Procurement Manager New part time FCO specialist (consultant) New Administrative Support individual Organization roles and responsibilities better defined Procurement management – Hands On Room for improvement in advance planning

9. David McGiven FAC: Construction Management Procurement mcgiven@slac.stanford.edu 12 - 13 October 2006 Questions/Comments?