msa-1605193 attachment - energy.gov · 2017-12-04 · 1.0 fy 2017 annual forecast of services...

MSA-1605193 CONTRACT NO. DE-AC06-09RL14728

ATTACHMENT

Contract Deliverable CD0002

ANNUAL FORECAST OF SERVICES AND INFRASTRUCTURE FOR FISCAL YEAR 2017

Consisting of 14 pages, including this cover page

Annual Forecast of Services and Infrastructure

i November 21, 2016 Trademarks and registered trademarks are property of their respective owners.

HANFORD MISSION SUPPORT CONTRACT


For Fiscal Year 2017


ii November 21, 2016

CONTENTS

1.0 FY 2017 ANNUAL FORECAST OF SERVICES SUMMARY ......................................1

2.0 PURPOSE ..........................................................................................................................2

3.0 FY 2017 FORECAST ANALYSIS – BY CONTRACTOR .............................................3

3.1 CHPRC ..................................................................................................................4 3.2 WRPS ....................................................................................................................4 3.3 WCH ......................................................................................................................4 3.4 MSA ......................................................................................................................4 3.5 MISCELLANEOUS (BALANCE OF SITE CUSTOMERS) ...............................5

4.0 COLLABORATION WITH THE OTHER HANFORD CONTRACTORS TO DEVELOP AN INTEGRATED ANNUAL FORECAST OF SERVICES REPORT ............................................................................................................................5

5.0 REFERENCES ..................................................................................................................6

APPENDIX

Appendix A ANNUAL FORECAST OF USAGE-BASED SERVICES SHOWING FY 2016 ACTUALS AND FY 2017 FORECAST ............................................... A-i


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FIGURES

Figure 1. FY 2017 Usage-Based Services Forecast by Contractor ($ in millions) ........................ 2

Figure 2. FY 2017 Usage-Based Services Forecast by Service Area ($ in thousands) ................. 3

TABLES

Table 1. By-Contractor Forecast Comparison from FY 2016 to FY 2017 .................................... 5

Table 2. Annual Forecast of Services Development Timeline* .................................................... 6


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TERMS

BNI Bechtel National, Inc. CHPRC CH2M HILL Plateau Remediation Company CIB Contractor Interface Board DLA Direct Labor Adder DOE U.S. Department of Energy FY fiscal year IT Information Technology J.3 Matrix MSC, Section J.3, “Hanford Site Services and Interface

Requirements Matrix” LMSI Lockheed Martin Services, Inc. MSA Mission Support Alliance, LLC MSC Mission Support Contract OHC other Hanford Site contractor PFP Plutonium Finishing Plant PNNL Pacific Northwest National Laboratory UBS Usage-Based Service WAI Wastren Advantage Inc. WCH Washington Closure Hanford WRPS Washington River Protection Solutions LLC


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1.0 FY 2017 ANNUAL FORECAST OF SERVICES SUMMARY

The fiscal year (FY) 2017 forecasted demand for Mission Support Alliance, LLC (MSA), usage-based services (UBS) is projected to increase by 5.0 percent over FY 2016, from an FY 2016 total of $160.2 million to the projected $168.2 million in FY 2017.

Effective February 1, 2016 the Applications and Records Management scopes were transitioned from the Lockheed Martin Services, Inc. (LMSI) subcontract to be self-performed by MSA. This is reflected in the increase in Information Technology (IT) costs from FY 2016 actuals to FY 2017 forecasts for MSA and Washington River Protection Solutions. Four months of the Applications/Records support is not reflected in the FY 2016 actuals because the scopes were captured through LMSI subcontract task orders for the October 2015 – January 2016 time period. In summary, eight months of the Records and Applications scope is reflected in the FY 2016 actuals, while the full 12 months of costs are reflected in the FY 2017 forecast.

Figure 1 shows the FY 2017 UBS forecast by contractor. By contractor, the change in UBS from FY 2016 to FY 2017 is as follows:

• CH2M HILL Plateau Remediation Company (CHPRC) projects a 1.2 percent increase in MSA services from FY 2016 levels. While the demand for Motor Carrier, Crane and Rigging, and Radiological Site Services-Calibration increases due to the needs on the Plutonium Finishing Plant (PFP) project, Facilities Maintenance support is reduced due mostly to improvements in FY 2017 forecasting.

• WRPS forecasts a 10.1 percent increase in MSA services from FY 2016 levels. WRPS forecasts significant increases in Facility Maintenance and IT services. The IT services increase is largely because of the IT contract transition. The Miscellaneous category projection also increased significantly which usually indicates a change in forecasting practices. Details of these changes are discussed in Section 3.0.

• Washington Closure Hanford (WCH) concluded its final contract year in FY 2016 and therefore does not forecast any additional services from MSA.

• Miscellaneous Other Hanford Contractors (OHC), which include Bechtel National, Inc. (BNI), Pacific Northwest National Laboratory (PNNL), Wastren Advantage Inc. (WAI), and U.S. Department of Energy (DOE) customers, project level spending levels from FY 2016 spending levels.

• MSA projects an increase in IT services and decreases in Crane & Rigging services. The increase in IT support is due to the IT transition. The decrease in Crane & Rigging is due to the expectation that the Water Filter Plant project would be completed in FY 2016. Demand for the other service areas will remain materially the same as FY 2016 spending levels.

The FY 2017 forecast represented in this report is based on OHC information provided to MSA as of October 2016. MSA used best available information from the OHCs in July 2016 to develop FY 2017 UBS rates. As OHC final forecasts are different today from their July 2016


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forecast, MSA may need to make UBS adjustments throughout the year to maintain alignment with the OHC’s changing needs.

The FY 2017 Annual Forecast of Services contract deliverable (CD0002) is the second year of MSA’s contract in which the due date was set for November 30, rather than the previously established date of July 31. This change was initiated by DOE to allow the OHCs to provide improved forecasts. However, the Annual Forecast still represents a snapshot in time and does not account for continued DOE funding changes and OHC forecast changes that will occur throughout the fiscal year.

Figure 1. FY 2017 Usage-Based Services Forecast by Contractor ($ in millions).

2.0 PURPOSE

In accordance with the Mission Support Contract (MSC), Section C.1.3, “Scope Summary,” MSA has prepared the Annual Forecast of Services and Infrastructure for FY 2017. The Annual Forecast is a key planning tool that MSA uses in right-sizing staffing and service levels. The Annual Forecast provides the basis for formulating MSA’s UBS rates. This report forecasts the following major usage-based services:

• Crane and Rigging Services • Facility Services • Training Services • Fleet Services • Motor Carriers Services


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• IT Services • Radiological Site Services, Calibration, and Dosimetry • Other miscellaneous services. The types of services represented in this account include

reproducing documents, acquiring and verifying services, miscellaneous utility costs, subcontracts, materials, and other direct costs. Each contractor accounts for these costs differently.

The OHC’s forecasts are used in developing MSA FY 2017 UBS budgets and liquidation rates to align MSA resources to OHC changing needs. Throughout development of the Annual Forecast of Services, MSA worked closely with the OHCs in obtaining their best estimate of their site-wide infrastructure and support service needs for FY 2017. MSA requests revised inputs from the Site contractors several times before this report is finalized, and this report represents the OHCs’ best estimate for FY 2017 UBS services as of November 2016. Forecasts for FY 2017, by MSA service area, are shown in Figure 2.

Figure 2. FY 2017 Usage-Based Services Forecast by Service Area ($ in thousands).

3.0 FY 2016 FORECAST ANALYSIS – BY CONTRACTOR

The following sections summarize the FY 2017 UBS forecast analysis by contractor, as shown in Appendix A.


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3.1 CHPRC CHPRC projects a 1.2-percent overall increase in UBS spending from FY 2016 to FY 2017. The major changes from FY 2016 are as follows:

• $1.5 million increase in Motor Carrier services for Teamster for the PFP project.

• $3.1 million reduction in Facilities Maintenance services largely due to the fact that some Teamster costs were incorrectly captured in Facilities Maintenance in FY 2016. These costs were accurately captured as Motor Carrier costs in the FY 2017 forecast.

• $1.8 million increase in Crane and Rigging for the PFP project.

• $800K increase in Radiological Site Services-Calibration due to the expansion of the PFP schedule through the duration of FY 2017.

• $700K reduction in miscellaneous costs. This reduction reflects CHPRC management focus on requiring managers to properly forecast costs in the correct categories, thus minimizing the use of the Miscellaneous cost category.

3.2 WRPS WRPS projects a 10.1-percent increase in UBS spending from FY 2016 to FY 2017. The major changes from FY 2016 are based on FY 2017 funding constraints and planning. The major changes from FY 2016 are as follows:

• $1.6 million increase in Facilities Maintenance because of the addition of Janitorial support from MSA.

• $1.9 million increase in IT Services because Applications and Records Support were not included in the costs prior to February 1, 2016 so one-third of the annual costs were not captured in FY 2016.

• $1.9 million increase in Miscellaneous costs. While WRPS discourages cost account managers from forecasting in the Miscellaneous category, it is likely that costs from other categories were included in the FY 2017 Miscellaneous forecast. As FY 2017 progresses, MSA and WRPS will work collaboratively to recast Miscellaneous cost items into other categories.

3.3 WCH Washington Closure Hanford (WCH) concluded its final contract year in FY 2016 and therefore does not forecast any additional services from MSA.

3.4 MSA MSA projects a 7.9-percent increase in UBS spending from FY 2016 to FY 2017. The major changes from FY 2016 are as follows:

• $8 million increase in IT services. This is largely driven by the fact that the Records and Software costs were not captured in the FY 2016 forecast because of the IT contract transition.


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• $300K reduction in Crane and Rigging Services because of the expectation that support to the Water Filter Plant project will be reduced in FY 2017.

3.5 MISCELLANEOUS (BALANCE OF SITE CUSTOMERS)

Other site contractors project UBS spending to remain level with FY 2016 levels.

• The Miscellaneous OHC category represents cumulative UBS spending by WAI, PNNL, HPM Corporation, and other organizations on Site.

The UBSs that MSA plans to provide to the Hanford Site contractors in FY 2017 are summarized in Appendix A. These services are described in MSC, Section J.3, “Hanford Site Services and Interface Requirements Matrix” (J.3 Matrix).

Table 1. By-Contractor Forecast Comparison from FY 2016 to FY 2017. Contractor FY 2016 ($ millions) FY 2017 ($ millions) Percent (%) Change

CHPRC 53.0 53.6 1.2 WRPS 46.7 51.4 10.1 WCH 1.9 0 N/A Miscellaneous OHCs 0.7 0.7 0 MSA 57.9 62.5 7.9

Total 160.2 168.2 5.0 CHPRC = CH2M HILL Plateau Remediation Group FY = fiscal year OHC = other Hanford Site contractor

WCH = Washington Closure Hanford WRPS = Washington River Protection Solutions MSA = Mission Support Alliance, LLC

4.0 COLLABORATION WITH THE OTHER HANFORD CONTRACTORS TO DEVELOP AN INTEGRATED ANNUAL FORECAST OF SERVICES REPORT

Each year, MSA works closely with the OHCs in developing the Annual Forecast. The Annual Forecast development timeline, which demonstrates the frequent involvement of the OHCs, is summarized in Table 2. This iterative process with the OHCs involves ongoing communication between Interface Management, Project Controls, and line organizations from MSA, CHPRC, and WRPS. Once each company submits its final forecast to MSA, MSA develops the final forecast and rates that the OHCs use to calculate their final pricing. MSA then briefs the Contractor Interface Board (CIB) before publishing the new rates on MSA’s website. This process ensures thorough inter-company communication at every step in the process.


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Table 2. Annual Forecast of Services Development Timeline.* Rate Development Schedule Schedule

Initiate discussions with OHCs on next FY UBS forecast March

Provide OHCs with mid-year UBS actual costs/units May

OHCs submit preliminary next fiscal year forecasts to MSA June

MSA develops preliminary FY 2017 planning labor rates June

MSA develops DLA rates July

MSA communicates preliminary UBS rates to OHCs August

MSA develops final rates September

MSA briefs the Contractor Interface Board September

Publish final FY 2017 MSA UBS rates September

OHCs provide final FY 2017 UBS forecasts to MSA October

MSA publishes final next fiscal year forecast November *These timelines are dependent on timing of DOE budget guidance to OHCs. DLA = direct labor adder FY = fiscal year MSA = Mission Support Alliance, LLC

OHC = other Hanford contractor UBS = usage-based service

MSA, CHPRC, WRPS, and WCH are members of the CIB, as described in MSC-CTR-00016, Hanford Site Contractor Interface Board Charter. On a quarterly basis, the CIB will be briefed on the UBS financial performance by service area. The CIB will discuss emergent UBS issues and elevate major issues to the Hanford Contract Alignment Board if the issue cannot be resolved by the CIB. MSA’s preliminary rates for FY 2017 are available on the MSA Finance webpage at http://msc.ms.rl.gov/rapidweb/Finance/index.cfm?PageNum=55.

5.0 REFERENCES

DE-AC06-09RL14728, “Mission Support Contract,” issued to Mission Support Alliance, LLC, U.S. Department of Energy, Richland Operations Office, Richland, Washington.

MSC-CTR-00016, 2014, Hanford Site Contractor Interface Board Charter, Rev. 1, Mission Support Alliance, LLC, Richland, Washington.

http://idmsweb.rl.gov/idms/livelink.exe/fetch/2000/60628/60730/143415559/153988818/153988820/173667884/CIB_Charter_2014-04-22_%28linked_to_IFM_website%29.pdf?nodeid=174195526&vernum=-2

http://msc.ms.rl.gov/rapidweb/Finance/index.cfm?PageNum=55


A-i November 21, 2016

APPENDIX A

ANNUAL FORECAST OF USAGE-BASED SERVICES

SHOWING FY 2016 ACTUALS AND FY 2017 FORECAST


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Table A-1. Annual Forecast of Usage-Based Services Showing FY 2016 Actuals and FY 2017 Forecast. (2 sheets) FY 2016 Actuals and FY 2017 Forecast

Dollars in (000's)

FY 2016 Actuals FY 2017 Forecast % Delta Comments CHPRC

Fleet Services $ 5.3 $ 5.7 7% PFP addition of equipment. Motor Carrier 6.2 7.7 25% PFP addition of Teamsters. Facility Maintenance 14.7 11.6 -21% Teamster charges mistakenly included in FY 2016 were removed from the FY 2017 Forecast. Crane and Rigging 4.4 6.2 42% Addition of 4 riggers and 1 crane operator. Training 4.9 5.1 4% Information Technology (IT) 12.0 11.6 -4% FY 2016 rate structure changes. RSS - Calibration 1.4 2.2 57% Increase due to the expansion of the PFP work schedule through FY 2017. RSS - Dosimetry 1.9 2.0 5% Miscellaneous 2.2 1.5 -30% Managers are encouraged not to plan in Miscellaneous creating a false decrease over FY 2016 actuals CHPRC Totals $ 53.0 $ 53.6 1% WRPS Fleet Services $ 6.4 $ 6.3 -2% Motor Carrier 3.8 3.7 -3% Facility Maintenance 5.7 7.3 28% Custodial staff moving to MSA, previously direct labor charge to WPRS, now captured in Facility Maintenance account. Crane and Rigging 6.2 6.2 0% Training 6.8 6.3 -7% Information Technology 12.4 14.3 15% Applications/Records support (IS) not reflected in costs prior to February 1, 2016. RSS - Calibration 1.9 2.0 5% RSS - Dosimetry 1.7 1.6 -6% Miscellaneous 1.8 3.7 106% $0.6-Contractor walk-in for A Farm Ventilation Installation. $1.3-Misc for Waste Management Area A/AX Performance Assessment. WRPS Totals $ 46.7 $ 51.4 10% FY 2017 Forecast based on FY 2017 Budget. WCH Fleet Services $ - $ - 0% Motor Carrier 0.1 $ - -100% Facility Maintenance 0.2 $ - -100% Crane and Rigging - $ - 0% Training 0.8 $ - -100% Information Technology - $ - 0% RSS - Calibration 0.6 $ - -100% RSS - Dosimetry 0.2 $ - 0% Miscellaneous - $ - 0% WCH Totals $ 1.9 $ - -100% The WCH contract ended in FY 2016. MISC OHC Fleet Services $ - $ - 0% Motor Carrier - - 0% Facility Maintenance - - 0% Crane and Rigging - - 0% Training 0.1 0.1 0% Information Technology 0.5 0.5 0% RSS - Calibration - - 0% RSS - Dosimetry 0.1 0.1 0% Miscellaneous - - 0% MISC OHC Totals $ 0.7 $ 0.7 0% Forecasting same level of support in FY 2017.


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Table A-1. Annual Forecast of Usage-Based Services Showing FY 2016 Actuals and FY 2017 Forecast. (2 sheets) FY 2016 Actuals and FY 2017 Forecast

Dollars in (000's)

FY 2016 Actuals FY 2017 Forecast % Delta Comments MSA Fleet Services $ 9.8 $ 9.7 -1% Motor Carrier 8.7 8.2 -6% Facility Maintenance 16.6 15.8 -5% Crane and Rigging 1.5 1.2 -20% FY 2016 actuals included Water Filter Plant support, expected to be greatly decreased in FY 2017. Training 2.4 2.3 -4% Information Technology 17.5 23.9 37% SES/CRM DLA forecast $15.3M in FY 2017, actuals $8.5M in FY 2016, due to the mid-year transition of LMSI IT departments. RSS - Calibration 0.4 0.4 0% RSS - Dosimetry 1.0 0.9 -10% Miscellaneous - 0.1 100% MSA Totals $ 57.9 $ 62.5 8% CUM Fleet Services $ 21.5 $ 21.7 1% Motor Carrier 18.8 19.6 4% Facility Maintenance 37.2 34.7 -7% Crane and Rigging 12.1 13.6 13% Training 15.0 13.8 -8% Information Technology 42.4 50.3 19% RSS - Calibration 4.3 4.6 7% RSS - Dosimetry 4.9 4.6 -6% Miscellaneous 4.0 5.3 33% CUM Totals $ 160.2 $ 168.2 5%

Notes: 1. 2016 FYTD actuals were provided by MSA Project Controls. 2. Miscellaneous service category can include the following: Reproduction Services, Job Control System, Acquisition Verification Services, Miscellaneous Utilities, Construction Labor Subcontracts, Materials, and Other Direct Costs. 3. The MISC OHC category includes all other contractors that receive services from MSA besides CHPRC, WRPS, and WCH. 4. The MSA 2017 forecast was provided by MSA Project Controls. CRM = Content and Records Management DLA = direct labor adder IS = Information Systems SES = Software Engineering Services

msa-1605193 attachment - energy.gov · 2017-12-04 · 1.0 fy 2017 annual forecast of services...

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