1. Advance Procurement Plans Sonny Rogers Contract Services Group Manager Presented to: 2010 Capital PERT Annual Meeting February 24, 2010

2. 2Managed by UT-Battelle for the U.S. Department of Energy Defined in SBMS, Purchasing Supplies & Services Required for procurements ≥ $500K Facilitates: – Early Contracts involvement – Increased communications with customer – Future staffing needs Web Based System which allows various reporting capabilities FY05 initial implementation Ideally suited for projects Advance Procurement Plans

3. 3Managed by UT-Battelle for the U.S. Department of Energy Step 1 During the annual business planning process for the upcoming fiscal year and as identified during the current year, management identifies procurements estimated to be $500K or greater that are planned for award. Step 2 Management submits procurements meeting the requirements for advance procurement planning via the ORNL Advance Procurement Planning (APP) system. Step 3 Appropriate approval is required for the APP:  Project/Division Directors or designee must approve procurements greater than $500K.  The appropriate Contracts Group Leader must approve procurements greater than $500K.  The Contracts Division Director must approve procurements greater than $2M.  The appropriate Level 1 Director must approve procurements greater than $5M. Step 4 The APP information is submitted to Contracts (Procurement) Division via the APP system once appropriate approval has been given. Step 5 APPs are revised as needed. 2.0 Required Procedure Advance Procurement Plans (APPs) are required for all anticipated procurements $500K or greater. See also the Advance Procurement Planning Flowchart. Advance Procurement Plans

4. 4Managed by UT-Battelle for the U.S. Department of Energy 2. ACQUISITION PLANNING 2.1 REQUIREMENT IDENTIFICATION 2.1.1 Planning The purpose of acquisition planning is to ensure that needs are met in the most effective, efficient, and economical manner. Planning should begin as soon as the need is identified, and should be appropriate and proportionate to the complexity and dollar value of the requirement. Specific planning considerations should include dollar value, sourcing, competition, urgency, type of subcontract, options, quality assurance requirements, Government-furnished property, security and other considerations. ORNL’s Advance Procurement Planning (APP) System is used for planning major procurements estimated to be $500K or greater. Use of the APP System is not required for task orders under Basic Ordering Agreements and Inter-Contractor Purchases (see Sect. 4.2.5). (See the procedure “Advance Procurement Planning” in ORNL’s Standards-Based Management System (SBMS) Subject Area “Purchasing Supplies and Services.”) Advance Procurement Plans

5. 5Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans

6. 6Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans 14. UT-B Board of Directors Approval (>$75M)

7. 7Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans

8. 8Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans

9. 9Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans

10. 10Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans

11. 11Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans

12. 12Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans

13. 13Managed by UT-Battelle for the U.S. Department of Energy Advance Procurement Plans