Facility Advisory Committee (FAC)
Construction Management Procurement
David McGiven
LCLS Procurement Manager
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu
CM Procurement
FAC Findings, Comments, Recommendations
Overview
CM/GC Issues are Top Priority
Incentives to Reduce Costs
Procurement Group Staffing
Dedicated Purchasing Meetings
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu
CM/GC Issues are Top Priority
Added to the agenda of weekly procurement status meetings
List of Critical Procurements’ status updated weekly
Includes requirements ancillary to CM/GC work
Spreadsheet of current CM/GC actions updated and distributed
Awards and contemplated awards
Potential Change Orders and Change Order Requests
Other Issues
Field Change Order log
Need for additional dedicated meetings established
Individual with action item to arrange meeting identified
Change Control Board Meetings
Procurement attendance
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu
Incentives to Reduce Cost
Concern over abuse if CM/GC got their way
CM/GC wanted to be able to use contingency for themselves
Sharing of leftover contingency dismissed
Cost savings assumed to be negligible
Agreement on percent and use unlikely
Discussions continue
Approval of schedule showing shorter duration
Mitigates delayed start
Must fit project fiscal funding plan
Ability to take advantage of shorter duration considered
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu
Procurement Staff Responsibilities
Agile Organizational Structure
Fully staffed (pending accelerated construction schedule)
Allows for filtering down of priorities and quick response
Team oriented approach
Includes support from Stanford General Counsel and existing SLAC
Procurement Department
Reporting and Co-ordination
BSD Division Manager
Reviews and approves awards and modifications over $2 Million
Project Management – Procurement Oversight
Operates at high level
Interface to Project Management
Provides direction and support
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu
Procurement Staff Responsibilities (con’t)
LCLS Procurement Manager and Deputy
Manager reviews and signs off on awards and
modifications over $50K to $ 2 Million
Manager and Deputy develop modifications, author and
sign off on Deficiency Notices and Official letters
Attend meetings
FCO Administrator
Issuing and Resolution of FCOs top priority
Specialist on board to support entire process
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu
Dedicated Purchasing Meetings
Weekly meetings with CM/GC PM and Superintendent
Procurement related actions status
Potential Change Orders
Field Change Orders
Other Issues
Special meetings scheduled as needed
Advance planning
Avoid surprises
Problem Resolution
Internal strategy and approach
Open discussion with CM/GC
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu
Summary
Procurement process continues to be streamlined
Procurement Oversight individual
New full time experienced FCO Administrator
New full time Deputy Procurement Manager
New part time FCO specialist (consultant)
New Administrative Support individual
Organization roles and responsibilities better defined
Procurement management – Hands On
Room for improvement in advance planning
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu
Questions/Comments?
12 - 13 October 2006
FAC: Construction Management Procurement
David McGiven
mcgiven@slac.stanford.edu