1. David McGiven FAC: Construction Procurementmcgiven@slac.stanford.edu 20-21 April 2006 Facility Advisory Committee (FAC) Construction Procurement David McGiven LCLS Procurement Manager

2. David McGiven FAC: Construction Procurementmcgiven@slac.stanford.edu 20-21 April 2006 Construction Procurement Overview Contract Features Unique Aspects of the Contract Contract Administration Challenges Initiatives

3. David McGiven FAC: Construction Procurementmcgiven@slac.stanford.edu 20-21 April 2006 Contract Features Construction 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 Phases Phase 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

4. David McGiven FAC: Construction Procurementmcgiven@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)

5. David McGiven FAC: Construction Procurementmcgiven@slac.stanford.edu 20-21 April 2006 Contract Administration Challenges Developing “partnering” mentality with the CM/GC Safety Coordinating with SLAC (security, ES&H, etc.) Schedule development Risk Management Establishing responsive business controls Limited contingency management delegated to CM/GC Blanket funding Monthly reviews Change order management Technical field order authority up to $25,000 Flow charts Web based configuration control Sub-subcontracts / Bidder selection Review and approve bid packages Review and approve award recommendation

6. David McGiven FAC: Construction Procurementmcgiven@slac.stanford.edu 20-21 April 2006 Initiatives Consultant support and reviewer feedback DOE 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 problems Partnering Sessions Training Managing contracts Controlling change order costs

7. David McGiven FAC: Construction Procurementmcgiven@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

8. David McGiven FAC: Construction Procurementmcgiven@slac.stanford.edu 20-21 April 2006 Questions/Comments?