In the last six months of fiscal year 2003, the LLNL facilities management staff and their construction subcontractors initiated and completed 25 projects, totaling about $2.5 million, using its Streamlined New Acquisition Process (SNAP). A typical project consisted of an equipment replacement, a small renovation, or miscellaneous site work and cost approximately $100,000.

Located in Livermore, Calif., LLNL is a national research and development laboratory operated by the University of California for the U.S. Department of Energy. Being able to perform work safely and efficiently is especially important for the Laboratory personnel who must perform in a highly regulated environment of government protocol.

"We have some of the top scientists and engineers in the world working on leading-edge technology in laser, weapons, biomedical, and environmental research," says Sheree Swanson, project manager for LLNL. "The environment is highly regulated and requires extensive reviews before any construction work can be started."

The normal process to have a subcontract awarded and construction started was expensive in both time and dollars. As a result of a litigious construction industry the construction bid packages were highly detailed. Combining the extensive plans and specification with the lengthy drawing review cycle, even a small job would take five to six months from the initial request until a contractor was on site starting work. Those six months included development of full plans and specifications, the advertisement period, bidding, and the contract award cycle.

"As our workload for small construction jobs increased we required a new approach," she says.

Plant Engineering staff developed SNAP in 2003 at a time when the incoming work load far exceeded in-house capability. The project work load increased from $50 million in 2002 to $110 million in 2003.

"We had to come up with a smarter, better, faster way to do business. Flexibility in federal acquisition requirements allowing best value contracting and the ability to pre-qualify contractors provided us with new opportunities," says Swanson. "We focused on the up-front process of getting a subcontractor on site to perform work. The ability to pre-qualify contractors in lieu of advertising helped tremendously. We recognized that in order to provide timely and quality service to our clients we needed to develop solid relationships with pre-qualified contractors."

Defining SNAP

SNAP is a new approach to construction contracting designed for flexibility with projects costing $250,000 or less. The acquisition process is built around a partner relationship with a core group of blanket order contractors. The partnership with the contractors is key to providing safe, cost-effective, and quality construction services for customers.

"Ultimately, we are looking for a three-day turnaround from the initial request to the day the contractor is released to start work," says Swanson. "Recognizing that going from five or six months to three days is not only thinking outside the box, but almost thinking off this planet, we decided to celebrate minor successes and take one step at a time. We set the goal of a two-week turnaround."

Twenty percent of the $2.5 million in projects completed in 2003 met the two-week turnaround goal, while one project—construction of a 20-foot-by-30-foot concrete pad—was turned around in three days. The average for all projects was six weeks. The 2004 SNAP work load has increased significantly and includes 60 projects with a total value approximately $7 million. The work consists primarily of equipment replacements, landscaping, room remodeling, fencing work, and small additions.

"The process continues to be refined and additional partners are being evaluated to handle the increased workload," says Swanson.

Partnering is not new to the construction industry and typically involves the owner, contractor, and architect/engineer working on a large project. However, the SNAP arrangement is more complicated because it involves multiple projects with different contractors, clients, and team representatives.

Details of SNAP

SNAP does just as its name implies by streamlining the entire work order acquisition process from start to finish with the elimination of several steps previously used on the standard purchase order contract. The SNAP model eliminates the extensive drawing review cycle; scope reviews are conducted during the site visit with the subcontractor and all stakeholders. The bidding documents may include formal drawings and specifications, or may include just a brief written description of the work. Subcontractors are asked if they have enough information to bid the work, if not, the scope is clarified as a team.

Requisitions are initiated after the bid in order to avoid any contract addendums. Final government estimates are performed in parallel with the contractor's bid. SNAP results in a significantly shortened review cycle. Instead of conducting stakeholder signoffs at preliminary design and full design, the SNAP "job plan" is signed off by a reduced stakeholder list. The remainder of the stakeholders receives an electronic copy of the job plan and a contact point in case they need additional information. Online signoffs are not being done at the present time, but may facilitate project movement in the future.

"Each job is issued as a release to the master task order and can include design/build work," says Swanson. "General conditions and most safety documentation are approved at the master task agreement level. Clearly, it requires an investment in time by both the laboratory and our contractors. It is absolutely critical that the contractors know what we expect in terms of construction and safety standards."

Clients and facility managers are also held accountable in terms of ensuring they do not abuse the accessibility to the contractors and do not use SNAP as a "job shopping" perspective. The Lab's project managers require verification that funding is available and that the project is generally in the right cost range for the work to be performed.

Using SNAP has meant that all team players must complete a two-part job plan consisting of a scope development worksheet and a task order statement of work. The scope development worksheet is designed to identify issues that must be addressed when starting a project and is well suited for situations where planning is in its infancy. The worksheet contains a list of questions pertaining to environmental and construction concerns, such as whether soil samples are needed or if the project really is appropriate for SNAP.

The task order statement of work describes the work the sub-contractor is responsible to perform. Special provisions and requirements can be listed and checked off as they apply to each job. Lab representatives sign off the job plan, which includes both the scope development worksheet and the task order statement of work.

Addressing Special Concerns

In the past, LLNL typically worked with general contractors, but SNAP is different and includes subcontracting directly with specialty contractors. The SNAP core contractors include electrical, mechanical, civil, roofing, and general contractors. LLNL plans on adding abatement and landscaping in the future. Blanket order or master task agreements with the Lab are for three years and notices of interest are distributed in an attempt to attract contractors to go through the pre-qualification process. Participating contractors must meet the Lab's specified safety and insurance requirements.

Adding flexibility in the system also means the job manager may wear more than one hat, unlike the circumstances of a conventional project which usually has a project manager, design manager, and construction manager.

"It's important to determine the right skill set to ensure that the person defining the project scope knows where to go for help," says Swanson. "We have identified subject matter experts so job managers can talk to those specialists if they need clarification on requirements."

Another problem which had to be addressed was the communication between internal players at LLNL. Before the Lab can partner with a subcontractor, a solid working relationship must be developed with the various stakeholders internal to the Lab. A training session was held with construction, environmental, safety, and health representatives to aid in improving those relationships and understanding of the SNAP vision.

The Lab's high level of security is maintained as contractors are required to wear identification badges and in some areas are escorted by security officers. LLNL is currently instituting a subcontractor evaluation program, which will include tracking the contractors' performance in areas such as quality, safety, cooperation, and schedule.

A work induction board, comprised of representatives from groups within plant engineering, space and site planning, environmental safety, and health teams, meets three times per week to review incoming work and determine the best manner for completing the job. Work orders may be performed by SNAP, standard purchase order construction subcontracts, an on-site labor-only contractor, or in-house shops. Small jobs taking place in high-security areas are best suited for in-house shops or the labor-only contractor who employs a large percentage of craftsmen with security clearances in order to avoid passing additional escort costs onto the client.

"We are finding that some jobs fit better into the SNAP mold than others," says Swanson. "SNAP will continue to evolve; we are involved in a learning process."

By Tracy Carbasho