LBNE Procurement Overview

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Nov 26, 2013 (3 years and 11 months ago)

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The
L
ong
-
B
aseline
N
eutrino
E
xperiment
P
roject

LBNE Procurement Overview

Elaine McCluskey, LBNE Project Engineer

Director’s Review of Project Procurement Support

8
-
9 August 2012

Outline


LBNE scope overview


LBNE organization


LBNE Project status


Project procurement planning to date


Procurement documents


Procurement in the resource
-
loaded schedule


Critical procurements


Risks related to critical procurements


Project
procurement staffing plan


Director's Procurement Review, 8
-
9 August 2012

2

Director's Procurement Review, 8
-
9 August 2012

Sample with bullet points


First Bullet


Second Bullet


More


Yet more


Still more


Less important

»
Trivial

New Neutrino Beam at Fermilab…





Directed
towards a distant
detector at the


Sanford
Underground Research Facility in Lead
,
SD



on
the Fermilab site

10 kton
Liquid Argon TPC Far
Detector

just below the surface

3

Near Site: Beamline and Conventional Facilities


Primary proton beam
extracted from existing
MI using conventional
magnets in a concrete
tunnel


Neutrino beam is
created by a proton
beam striking target in a
concrete below
-
grade
target hall, focusing with
horns, then decaying
through a 200 m pipe to
a hadron absorber:
components are similar
to the NuMI beamline


Director's Procurement Review, 8
-
9 August 2012

4

Near Site: Beamline and Conventional Facilities


Grade
-
level target and beam aiming through earth to South Dakota 1300 km
away creates 58
-
ft high embankment with limited rock excavation


Concrete below
-
grade enclosures


3 surface service buildings


New cooling pond


4 m diameter steel pipe surrounded by 5.5 m radius of concrete shielding



Director's Procurement Review, 8
-
9 August 2012

5

Far
Site
LAr Time Projection Chamber Detector


Two
5
-
kt fiducial mass (18
-
kt total mass) detectors in
a
common
pit just below
grade


Detector construction:


Membrane cryostat made
of foam insulation and
stainless steel panels
affixed to concrete liner
cast against rock


Cryogenics system to cool
and purify liquid argon to
87 deg K


Wire detector planes and
readout electronics to
capture neutrinos in the
argon volume


Director's Procurement Review, 8
-
9 August 2012

6

Far
Site
Conventional
Facilities


Sited at Sanford Underground
Research Facility (SURF) in Lead,
SD


Rock excavation for detector pit


Reinforced
-
concrete building with
thick concrete roof topped with rock
shielding


Utilities provided from SURF

Director's Procurement Review, 8
-
9 August 2012

7

Project Organization

Director's Procurement Review, 8
-
9 August 2012

Far Site CF will
be managed
for LBNE by
SDSTA via
subcontract

8

Project Office Organization

Director's Procurement Review, 8
-
9 August 2012

9

Project Management Office

Project Cntrls: R O’Sullivan, Lead



M. Gardner



D. Jones (LANL)



P. Novakova (BNL)



J. Sefcovic (Contractor)

Financial Mgr: T. Chapman



future staff

Computing Coord: E. Berman

Systems Engineering: (J. Dolph)



Risk Mgr: M. Dinnon



Documentation: A. Heavey



QA Mgr:
future

Procurement Mgr
future



future procurement specialist

Admin Support: S Wright


Tom Powers is presently the
Procurement Dept liaison, other
procurement specialists also
support LBNE.

About SURF & LBNE


Sanford Underground Research Facility (
SURF


the place
) is
owned by State of South Dakota and operated by the South
Dakota Science & Technology Authority (
SDSTA


the legal
entity
). DOE funds SURF operations through LBNL who
contracts with SDSTA for this purpose.

Director's Procurement Review, 8
-
9 August 2012

10

LBNL
P.
Alivisatos, Director
J. Symons, Associate Director
FNAL
P.
Oddone, Director
Y.
-
K. Kim, Deputy Director
LBNE Project Office
J. Strait, Project Manager
E. McCluskey, Project Engineer
SURF Operations Office
K. Lesko,
Head
M. Gilchriese, Deputy Head
SDSTA
Board of Directors,
C.Peterson,
Chair
R. Wheeler, Executive Director
Sanford
Underground Lab
M. Headley
, Director
LBNE Project Organization
SURF Operations Organization
Sanford Lab
Organization
Line
Management / Program Direction
Contracts
DOE
OHEP
DOE OHEP
DOE
ONP
South Dakota
State Government
More About SURF & LBNE


LBNE has been working with SDSTA on our conceptual design
since 2009 with all far site CF A/E design contracts flowing
through them.


LBNE and SDSTA (with DOE concurrence) have agreed that
SDSTA will manage the Far Site CF design and construction
work, since it will be constructed on their site and their staff has
unique knowledge and capabilities.


In conjunction with DOE
-
FSO and DOE
-
CH, the current plan is
that DOE will have a no
-
cost land lease for the site.

Director's Procurement Review, 8
-
9 August 2012

11

Project Status


LBNE had a larger scope in March 2012 and was preparing for a CD
-
1 review, when Brinkman directed the project to be reconfigured for a
phased approach to achieving its CD
-
0 mission need (achieved Jan
2010).


Reconfigured current LBNE CD
-
1 project is smaller scope, TPC range
of $660M
-
$940M.


Currently preparing for DOE CD
-
1 Independent Project Assessment
(Lehman review) on Oct 30
-
Nov 1,
so everything (including
procurement plans) are in state of revision.


Expect re
-
estimating and scheduling complete at end of August


CD
-
2 to CD
-
4 dates will be pinned down with final schedule.


Some references will be made to possible scope opportunities that
could be incorporated into the project with non
-
DOE commitments
prior to CD
-
2. This would allow the Far Detector to be moved
underground and a Near Neutrino Detector and associated CF to be
built on the Near Site. Procurement planning is attempting to take
possible increases in scope into account, including CF contract value
ranges .


Director's Procurement Review, 8
-
9 August 2012

12

Funding Profile

Recently received from DOE OHEP
-


OPC/PED/Construction split not final.

FY10&11 costs ~ 30M are additive

Director's Procurement Review, 8
-
9 August 2012

$0M
$20M
$40M
$60M
$80M
$100M
$120M
$140M
$160M
$180M
FY 2012
FY 2013
FY 2014
FY 2015
FY 2016
FY 2017
FY 2018
FY 2019
FY 2020
FY 2021
OPC
Con
PED
FY 2012

FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

Total

PED

4,000

16,000

28,000

34,000

28,000


-



-



-



-



-



-


110,000

Con


-



-



-


10,000

70,000

130,000

160,000

160,000

133,000


-


663,000

OPC

17,000

10,000


-



-



-



-



-



-



-



-



-


27,000

Total

21,000

26,000

28,000

34,000

38,000

70,000

130,000

160,000

160,000

133,000


-


800,000

13

Summary Budget as of July 2012 (AY$M)

WBS

Description

Base Cost

Contingency

TPC

TOTAL

LBNE

547

245

807

1.01

Project
Management

44

16

60

1.02

Beamline

104

59

163

1.03

Near

Detector

7

3

10

1.04

WCD Conceptual

Design

11

11

1.05

Far Detector

170

76

246

1.06.01

Conventional

Facilities PM

5

2

7

1.06.02

CF Near Site

154

87

241

1.06.03

CF Far Site

52

17

69

Director's Procurement Review, 8
-
9 August 2012

Budgets are being revised through re
-
estimating/scheduling for all L2 projects,
so these totals are subject to change.

14

Overall Procurement Planning to Date


As scope has been developed, discussions with Fermilab
Procurement Department and DOE Fermi Site Office (FSO)
and DOE Chicago Operations (CH) have occurred.


Tom Powers is our Fermilab Procurement Department liaison,
who participates not only in meetings requested by Project, but
also in weekly PM meetings.


Other procurement staff participate as necessary


Fermilab legal staff are also involved in planning discussions


Main foci to date have been planning for


CF design
and
construction.


Far Detector
cryostat and cryogenic design and construction.


Memoranda of Understandings/Statements of Work with university
and laboratory collaborators


Have discussed with DOE getting CD
-
3a for early Near Site CF
scope, even prior to CD
-
2, for technical reasons.




Director's Procurement Review, 8
-
9 August 2012

15

FD Cryostat
-

Procurement Planning to Date


FD cryostat procurement planning has been an ongoing
discussion with Fermilab Procurement since 2010, when
the
membrane
cryostat concept was initiated.


Technology is common in LNG ships and tanks, HEP application is
new.


Two vendors identified (GTT
-
France & IHI
-
Japan) with some
intellectual property issues being understood with the vendors and
worked through.


Prototype
under construction
using Japanese vendor has
provided
insights into how 10
-
kt Far Detector cryostat procurement may
occur
.


Anticipating a design
-
build approach, a
construction management
firm would solicit the design of the cryostat from
the two
vendors

who have
been prequalified by LBNE as meeting the technical
design requirements
.


$37M ($FY10) to be procured ~ 2019




Director's Procurement Review, 8
-
9 August 2012

16

FD Cryogenics
-

Procurement Planning to Date


Learning from other major cryo projects like FRIB, cryogenics
procurement has been changed from one large contract to at
least 4 identified separate procurements:


Refrigeration plant $20M ($FY10)


LAr and LN2 storage vessels


Recondensors for cryostats


Purification system vessels & components


In
-
house expertise in some of these areas leads to Fermilab
engineering with industry bidding, fabrication, and installation.


Where insufficient in
-
house expertise exists, consultant engineering
firms would produce construction documents for bidding.


All work would be managed by LBNE/Fermilab as the construction
manager at Sanford Laboratory.


$36M ($FY10) to be procured ~ 2019



Director's Procurement Review, 8
-
9 August 2012

17

Near Site CF
-

Procurement Planning to Date


Planning began in 2010, when it was recognized by Fermilab
Procurement & Facilities Engineering that larger A/E contracts would
be needed for future large projects.


Three types of task ordering agreements were put in place @ $5M
each


General A/E (4 consultants)


Tunneling/underground A/E (3 consultants)


Project management/construction management (3 consultants)


LBNE expects to select one firm for design and another for CM pre
-
construction services after CD
-
1 approval, early 2013.Total Design
period consultant services ~ $14
-
16M.


Construction is expected to be via one to a few large construction
contracts with total value ~ $130M.


Early CD
-
3a procurement for large embankment with associated
utilities to allow time for settlement (up to 2 years) may be desirable
(~$30M).


Discussing with FESS/Engineering their staffing to be the construction
manager using CM consultant as extension of their staff.




Director's Procurement Review, 8
-
9 August 2012

18

Far Site CF
-

Procurement Planning to Date


As noted earlier, SDSTA will manage and led LBNE CFFS
design and construction.


LBNE, SDSTA, and Fermilab Procurement began discussing
contracting models to accomplish this late 2011. Model is for 3
sole source task ordering agreements/subcontracts to SDSTA
for


staff support/CM services (~12
-
26M)


needed by 1 Oct 2012


subcontracted consultant A/E and CM professional services (~4
-
13M)


needed in 2013


Subcontracted and small amounts of self
-
performed construction
(~35
-
140M)


needed in 2015
-
16


Due to complicated nature of Far Site CF procurements,
Federal Project Director (Pepin Carolan) initiated meetings in
February with FSO and CH contracting officers and LBNE to
prepare for upcoming large procurements.




Director's Procurement Review, 8
-
9 August 2012

19

MOUs
-

Procurement Planning to Date


As with most HEP projects, a portion of
the work is done at other laboratories
and universities, mainly for the detector.


The university and laboratory work
responsibilities post
-
CD
-
1 is in the
process of being sorted out, and so a
comprehensive list of collaborator
MOU/SOWs is still in preparation.


MOUs are written to outline basic
common agreements over many years,
with annual SOWs funded by purchase
orders to carry out the intent of the
MOUs.


List of MOUs with total PO values from
2009
-
2012 (may not be complete list)




Director's Procurement Review, 8
-
9 August 2012

20

INSTITUTION

Total

PO
value 2009
-
12

BNL

740k

UCLA

350k

Colorado State U

45k

UC

Berkeley

3,190k

Georgia Tech

130k

Indiana U

80k

Institute

for HEP

30k

LLNL

600k

Univ College,
London

35k

LANL

5,000k

Michigan

State U

270k

U of Minnesota

350k

Procurement Documents



Project Acquisition Plan
prepared
for March CD
-
1 Director’s Review for
larger scope


currently in revision


24 July 2012 draft provided for this
review


Prepared with input from L2 managers


Describes make
-
buy decisions for
major components


Describes procurement strategies for
major purchases


Most of these have been discussed
with Procurement Department who
have helped with planning



Director's Procurement Review, 8
-
9 August 2012

21

Procurement Documents



DOE Acquisition Strategy
prepared for March CD
-
1
Director’s Review for larger
scope


Revised for smaller scope
and draft provided for this
review


Written by Federal Project
Director with LBNE input



Director's Procurement Review, 8
-
9 August 2012

22

Procurement in Resource
-
Loaded Schedule
-

1


Current RLS is from March 2012 CD
-
1 Director’s review and is
in the process of being updated.


Procurement process is detailed out in the schedule in various
formats.


Example from Beamline shield block procurement:






We recognize that long procure and delivery period may
require intermediate monitoring milestones








Director's Procurement Review, 8
-
9 August 2012

23

Procurement in Resource
-
Loaded Schedule
-

2


Another example from CF Near Site construction:













Director's Procurement Review, 8
-
9 August 2012

24

Procurement in Resource
-
Loaded Schedule
-

3


The Project recognizes that the time needed for the
procurement review and approval within Fermilab and by DOE
should be reflected in the RLS.


The thresholds are noted in the LBNE Acquisition Plan, section
1.2, and will provide input to planning durations and milestones.


>5M < 25M: FSO review and approval of all procurements,
durations to be determined


>25M < 50M: FSO and CH review and approval of all solicitations
and awards; durations to be determined


> 50M: same as above with additional higher level approvals
required, increases durations by 6 weeks


This work will be closely coordinated with Fermilab
Procurement and FSO to be sure adequate schedule durations
for procurement planning exists.














Director's Procurement Review, 8
-
9 August 2012

25

Critical Procurements


LBNE has defined for this review the threshold for critical
procurements to be those > $5M total value or with possible complex
managerial or vendor issues.
(values & dates being re
-
estimated)





Director's Procurement Review, 8
-
9 August 2012

26

WBS

Description

Value

Anticipated contract type

Anticipated year of
contract award

130
.
02

Beamline

Shielding

Blocks

$8M

Fixed price

2019

130
.
05

Far

Detector

Cryostat

(with

contingency)

$41M

Best
value, fixed price

2019

130
.
05

Far

Detector

Cryogenics

Systems

(multiple

subcontracts,

with

contingency)

$49M

Best
value,

fixed
price

2019

130
.
05

Far

Detector

Cryo

Fluids

(with

contingency)

$26M

Best value, fixed
price

2020

130
.
06

CF

Near

Site

Design

(with

contingency)

$16M

Task

ordering agreements
already in place, not
-
to
-
exceed

2013

130
.
06

CF

Near

Site

Construction

(with

contingency)

$130M

Best
value, fixed price

2015
-
16

130
.
06

CF

Far

Site

SDSTA

Staff

Support

(with

contingency)

$26M

Sole
source not
-
to
-
exceed

2013

130
.
06

CF

Far

Site

Design

(depends

on

scope,

with

contingency)

$4
-
13M

Sole source with best value
,
fixed price sub
-
tier
contracts

2013

130
.
06

CF

Far

Site

Construction

(depends

on

scope,

with

contingency)

$35
-
140M

Sole source with best value
,
fixed price sub
-
tier
contracts

2015
-
16

Risks related to Critical Procurements


Several risks have been identified either formally or in procurement
planning documentation, related to the critical procurements:


Possible litigation may occur with large subcontracts


Bids on cryostat and cryogenics subcontracts are too high, resulting in
repackaging and rebidding the contracts


Potential for subcontract claims particularly for rock excavation work


Commodity prices may be volatile, increasing costs beyond standard
escalation


Cryostat & cryogenics: original plan was for one large procurement for
both. Having separate subcontracts means the acceptance test for the
systems will be non
-
cryogenic, less desirable from a technical
perspective


Risks were originally assessed with probabilities and impacts
assigned for larger scope.


Risk re
-
assessment is in progress
.





Director's Procurement Review, 8
-
9 August 2012

27

Staffing for Procurement


LBNE recognizes the volume, value, and complexity of the Project’s
procurements will strain existing Fermilab Procurement staff, and
could slow the project, so dedicated staffing is required. Current
estimate is based on management judgment at this time.


Currently planning for a
Procurement Manager
in the Project Office
starting at
0.5 FTE in FY13, going to 1.0 FTE in FY14
and beyond.
This is being reviewed against present Fermilab Procurement liaison
effort of 0.8 FTE.


One additional
Procurement Specialist
is planned to be added to the
Project at
0.5 FTE in FY15, 1.0 FTE starting in FY16
and beyond.


Discussions about dedicated staffing have just begun between the
Project and Fermilab Procurement, so not certain if new staff would
be matrixed into the Project or direct hired into the Project, and
whether additional staff for routine procurement would remain as an
overhead function.


Expect to resolve this in next few months





Director's Procurement Review, 8
-
9 August 2012

28

Summary


The LBNE Project will build a beamline at Fermilab and a far
detector at SURF in South Dakota.


The project is in the process of re
-
estimating and replanning due
to recent direction from DOE OHEP with a budget ~ $800M.


Procurement planning was initiated several years ago and
continues, involving the LBNE Project, FNAL Procurement
Department, and DOE
-
FSO and DOE
-
CH.


The LBNE Acquisition Plan describes major make
-
buy decisions
and outlines major procurements planned on the project.


Procurement activities are identified in the RSL and milestones
included


these are being updated during replanning.


Critical procurements and procurement risks have been
identified.


The Project is planning for 2 new hire or fully matrixed
procurement staff, being reviewed with the Procurement
Department.

Director's Procurement Review, 8
-
9 August 2012

29