Joint MeetingFebruary 7, 2012

Paul BoscoSenior Procurement Executive

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Agenda

Introduction

Challenges

Alignment

Closing Comments & Questions

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Challenges

1940

1945

1950

1955

1960

1965

1970

1975

1980

1985

1990

1995

2000

2005

2010

2015

estim

ate

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Fiscal Year

$ in t

rillio

ns (

000,0

00)

Actual

Estimate

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Challenges

1948

1951

1954

1957

1960

1963

1966

1969

1972

1975

1978

1981

1984

1987

1990

1993

1996

1999

2002

2005

2008

-1,600.0

-1,400.0

-1,200.0

-1,000.0

-800.0

-600.0

-400.0

-200.0

0.0

200.0

400.0

Deficit

Fiscal Year

$ in b

illions

4

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• Need better sense of budget stability in both the contracts & project worlds

• ‘Bite sized’ appropriations

• Need to reduce the size of work & contracts

2007 2008 2009 2010 2011 2012 2013 2014

$ in

bill

ions

Fiscal Year

DOE Appropriations

Budget Request Base Appropriations Recovery Act Appropriations

Source: FY2011 DOE Financial Report and FY12 Appropriations

Estimated

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Alignment

• Aligning Interests How can DOE can better align its interests and

incentives with those of its contractors? Government-contractor partnering relationship

• Balancing risks Need to improve how contracts balance risks and

incentives between DOE and contractors Reduce high risk contracts (move from cost plus

towards fixed price)

• Contract and Project Management Need to align contract management with project

management GAO High-Risk List Define your requirements up-front Funding profiles Reflect Priorities

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Closing Comments and Questions

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• CREDIBILITY• COMMITMENTS• COMMUNICATION