Peer Reviews

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 Strengths and/or Best Practices across multiple Sites ◦ Internal customers involved in Acq. Planning (3) ◦ Leveraging buying power (2) ◦ Controls for rapid purchasing techniques (3) ◦ Integration of ES&H, Security, etc. (4) ◦ Use of Automation (1+1) ◦ Internal customer education on required inputs (2) ◦ Controls for specialized purchasing methods (3 BP) ◦ Protection against Fraud, Waste, Abuse (1+1) ◦ Specialized Purchasing: Policies & training (1+1) 3

 Isolated Best Practices ◦ Specialized Purchasing Methods conforming to requirements and good business practice  Weaknesses across multiple Sites ◦ File Documentation  Best overall criteria performance ◦ Reduction of subcontract performance risks & facilitation of quality relationships  Worst overall criteria performance ◦ No overall “Weakness” in any major criteria area 4

◦ Requiring activities and purchasing involved together in effective purchase planning ◦ Pre-award cost/price analysis ◦ Analysis of options before exercising ◦ Copies/compliance of insurance certificates ◦ Internal customer education on required inputs ◦ Minimizing Sole Source awards ◦ Periodic audit of cost reimbursement and post- award cost/price issues ◦ Frequency/timing of procurement training ◦ Post award administration records 5

 Strengths ◦ Advanced Procurement Planning ◦ Small Business Outreach ◦ Robust Training Programs Customers ◦ Succession Planning ◦ Self Assessment Processes ◦ Corrective Actions in Response to Lessons Learned and Findings from Prior PEER Reviews  Weaknesses ◦ File Documentation ◦ Cost and Price Analysis ◦ Lack of Resources (personnel)  Best Practice ◦ Contractor Labor Time Reporting (CTLR) System ◦ Purchasing System Policies: Requirements of Prime Contract, Applicable Laws, Regulations ◦ Relationship with Subcontractors and Suppliers ◦ System in Place to Prevent the Award of a Construction Subcontract to the A&E Company or Affiliate Who Prepared the Design 6

2008 Review Trends ◦ Strengths and Best Practices  Leveraged Buying Power  Rapid Purchasing Techniques Strategic sourcing  Advanced Procurement Planning  Subcontractor Performance Evaluation Systems  Use of Technology for Efficiency: Electronic Certified Payroll, Contract Audit System  Robust Assessment Programs Customer Feedback for Continuous Improvement  Small Business Outreach  Acquisition Process  Internal Cost/Price Analysis Teams ◦ Weaknesses  No Trended Weaknesses 7  2009 Review Trends ◦ Strengths - Rapid Purchasing Techniques, Advanced Procurement Planning, Use of Technology for Efficiency, Small Business Outreach, Robust training programs customers ◦ Best Practices - Use of Technology for Efficiency: Ariba electronic workflow requisition, Open Rating’ database, Advanced Procurement Plan (APP). NSE Roof Asset Management Program contract (RAMP) ◦ Weaknesses - File Documentation, Cost and Price Analysis

8 FY08 (9)FY09 (8)FY10 (9)FY11 (6) Best Practices5567 Strengths Weaknesses

 Team Leads: Ensure you are using the current version of the Assurance Criteria  ANL: Received “Strength” in File Documentation  LANS: Specialized Purchasing Methods (P- Card, Rapid Purchasing, etc.) policies, procedures and controls: YOU ROCK!!!!  Discussion item: “raising the bar” as improvements are realized at multiple sites 9