LBNE Procurement Overview Elaine McCluskey, LBNE Project Engineer Director’s Review of Project...

The Long-Baseline Neutrino Experiment Project

LBNE Procurement Overview

Elaine McCluskey, LBNE Project Engineer

Director’s Review of Project Procurement Support

8-9 August 2012

Director's Procurement Review, 8-9 August 2012 2

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

3Director'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…

Long Baseline Neutrino Experiment

Directed towards a distant detector at the Sanford Underground Research Facility in Lead, SD

on the Fermilab site

10 kton Liquid Argon TPC Far Detectorjust below the surface


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


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


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

Beam


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


Project Organization

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


Project Office Organization

Project Management OfficeProject Cntrls: R O’Sullivan, Lead M. Gardner D. Jones (LANL) P. Novakova (BNL) J. Sefcovic (Contractor)Financial Mgr: T. Chapman future staffComputing Coord: E. BermanSystems Engineering: (J. Dolph) Risk Mgr: M. Dinnon Documentation: A. Heavey QA Mgr: futureProcurement Mgr future future procurement specialistAdmin 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.

LBNLP. Alivisatos, Director

J. Symons, Associate Director

FNALP. Oddone, Director

Y.-K. Kim, Deputy Director

LBNE Project OfficeJ. Strait, Project Manager

E. McCluskey, Project Engineer

SURF Operations OfficeK. Lesko, Head

M. Gilchriese, Deputy Head

SDSTABoard of Directors, C.Peterson, Chair

R. Wheeler, Executive Director

Sanford Underground LabM. Headley, Director

LBNE Project OrganizationSURF 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.


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 .


Funding ProfileRecently received from DOE OHEP -

OPC/PED/Construction split not final.

FY10&11 costs ~ 30M are additive

FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021$0M

$20M

$40M

$60M

$80M

$100M

$120M

$140M

$160M

$180M

OPCConPED

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


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 1631.03 Near Detector 7 3 101.04 WCD Conceptual

Design11 11

1.05 Far Detector 170 76 2461.06.01 Conventional

Facilities PM5 2 7

1.06.02 CF Near Site 154 87 2411.06.03 CF Far Site 52 17 69

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


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.


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


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


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.


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.


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)

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


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


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



• Another example from CF Near Site construction:



• 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.


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)WBS Description Value Anticipated contract type Anticipated year of

contract award130.02 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)


130.05 Far Detector Cryo Fluids (with contingency)


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.


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


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.

LBNE Procurement Overview Elaine McCluskey, LBNE Project Engineer Director’s Review of Project...

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