1. ARRA Contracting Issues Savannah River Site Small Business Forum Progress and Accountability in Implementing the American Recovery and Reinvestment Act Office of Environmental Management Ralph Holland November 2, 2009

2. 2 Starting Point – February 2009 Meet the objectives of the Act –Promptly –Transparently –Delivering meaningful and measureable results –On schedule and at or under cost

3. 3 EM ARRA Contracting Goals Initiate immediate action –Shovel ready projects Well defined scope Stable regulatory environment Significant footprint reduction by 2011 –Accelerate ARRA investment through early obligation of funds Aggressive goals balanced by appropriate management controls

4. 4 Progress 29 Contract Modifications issued –Major projects valued >$5.5B –ARRA funds obligated to contract >$5.8B –ARRA funds costed >$652M 5 New contract awards –1 award by 9/30/09, final awards early 2010 –Estimated value ~$250M Numerous support actions

5. 5 Process Balancing priorities within EM objectives –Commitment to small business at prime and subcontract level –Competition –Contract type Significant number of contract changes –Accelerating previously competed work –Early initiation of activities through unpriced changes Commitment to prompt definitization Model modification standardized practices –Streamlined internal processes

6. 6 Contract Implementation Risk based approach to contract administration –Reviewed risks identified by OMB and DOE-IG Reporting and transparency Segregation of funds and performance metrics –Developed ARRA Contract Management Plan template Tailored to unique ARRA requirements Risk mitigation tool Guide to oversight execution

7. 7 Small Business Prime contract –ARRA allocation of EM goal is $288M –ARRA on track to exceed $400M –Small business obligations to date ~$393M Subcontract –Simple objective – Meet or exceed existing goals –Very early, but trends are positive At SRS, $191M with 74% to small businesses

8. 8 Challenges Contract definitization by 9/30/09 –External audit requirement –Proposal inadequacies –Solutions developed case-by-case –Results – 85% of contracts definitized by 9/30/09 Internal processes –Balancing need for appropriate management oversight and control with need for expeditious processing –Commitment to success led to streamlined processes

9. 9 Conclusion EM ARRA activities off to an outstanding start –Majority of projects are under contract –96.6% of EM ARRA funding is obligated –85% of contract changes definitized –$393M in direct awards to small business Challenges remain –Continue to maximize subcontract opportunities for small businesses –Safe delivery of our commitments Appropriate rigor and discipline through project completion is critical Expect significant independent validation of results