Worldwide Schedule for Management, Organization and

Business Improvement Services (MOBIS)

Federal Supply Group 874 Class 8742

Contract Number: GS-10F-0063J

For more information on ordering from Federal Supply Schedules

Contract Period: April 1, 1999 through March 31, 2004

Contractor: Foster Wheeler Environmental Corporation

143 Union Blvd., Suite 1010

Lakewood, Colorado 80228

Business Size: Large

Telephone: (303) 980-3556

FAX Number: (303) 980-3539

Program Manager: Michael Amdurer

143 Union Blvd., Suite 1010

Lakewood Colorado 80228

Telephone: (303) 980-3556

FAX Number: (303) 980-3539

Contract Administrator: Dan Sullivan

143 Union Blvd., Suite 1010

Lakewood, Colorado 80228

Telephone: (303) 980-3574

FAX Number: (303) 980-3539

1. Table of Awarded Special Item Number(s) SINs and pricing (pricing attached):

2. Maximum Order: $1,000,000 (higher amounts to be negotiated)
3. Minimum Order: $300.00
4. Geographic Coverage (delivery area): Worldwide
5. Point(s) of Production: (city, county, and state or foreign country). Same as Contractor
6. Discount from list prices or statement of net price: Government net prices (discounts already deducted).
7. Quantity Discounts: Quantity discounts negotiated on task order basis.
8. Prompt Payment Terms: None offered

12. F.O.B. Points/Scope: Destination/Worldwide
13. Ordering Address: Same as Contractor
14. Payment Address: Foster Wheeler Environmental Corporation

16. Export Packing Charges: N/A
17. Terms and Conditions of Government commercial credit card acceptance (if applicable): N/A

20. Terms and Conditions of repair parts indicating date of parts, price lists, and any discounts from list prices: N/A
21. List of Service and Distribution Points: N/A
22. List of Participating Dealers: N/A
23. Preventative Maintenance: N/A

24. Environmental Attributes: ISO 14001 Certification
25. DUNS Number: 83-487-6385

In April 1988, Executive Order 12367, Productivity Improvement for the Federal Government, called for the establishment of a government-wide program to improve the quality, timeliness and efficiency of services provided by the Federal Government. One of the outcomes of this program was management, organizational and business improvement services (MOBIS). The General Services Administration (GSA) was designated to set up and administer the MOBIS Multiple Award Schedule. The MOBIS pro curement provides a full range of services and products for consulting, facilitation, surveys, training, privatization support, and support products, which will permit Federal agencies to begin or continue management, organizational and business improvement effort s. These efforts should ultimately result in increased customer satisfaction and enhance the public s confidence in their government.

Foster Wheeler Environmental Corporation was awarded MOBIS Contract No. GS-10F-0063J on April 1, 1999. This contract is designed to provide Federal agencies with an effective contract vehicle to use various management, organizatio nal and business improvement services offered by Foster Wheeler Environmental Corporation. Our MOBIS contract is an Indefinite Delivery/Indefinite Quantity award with a five-year base period and a five-year option. Depending on the requirements, task s can be bid as either firm fixed-price or labor hour task orders. Our geographic coverage is worldwide under this contract.

Any Federal agency can use our MOBIS contract. This includes:

• all Legislative, Judicial and Executive branches of the Federal Government
• all Executive agencies including departments, independent establishments and government corporations including agencies, boards, commissions, and corporations
• the government of the District of Columbia

Descriptions of the various services provided by Foster Wheeler Environmental Corporation under our MOBIS contract are provided below.

Independent Cost Estimating. The value of an independent cost estimate (ICE) lies in the conscientious, independent review of project cost estimates and schedules by an unbiased third party. This leads to the independent verification, from a firm that has no vested interest in the project, that a proposed estimate or budget is accurate, complete, and realistic, and that the project, as defined by the baseline scope of work, can be completed within the stated budget and sch edule. Using its own resources and databases, Foster Wheeler Environmental will pinpoint areas of the estimate and schedule that are weak, unsupported, or in error. It will also offer alternative prices for equipment and materials based on firm vendor quotatio ns, established databases, or historical references. The ICE will identify redundancies in the cost estimate, as well as omissions. Softer areas of the estimate, such as project management, construction management, and startup costs, will be independently assessed using parametric estimating techniques, staffing plans, and historical information for similar projects. Project schedules will be analyzed for continuity, completeness, and reasonableness in terms of activity duration, activity sequencing, and overlap. Re commen dations will be offered to the program or project people as to how the estimate and schedule can be enhanced. The ICE helps the project by pointing out problem areas in the estimate and schedule before they occur.

Foster Wheeler Environmental Corporation has performed independent cost estimates since 1985. We previously held two contracts with the US Department of Energy to perform ICEs on the largest and most strategic projects within the DOE complex, in cluding the Office of River Protection Project, the Defense Waste Processing Facility, the Tritium Extraction Facility, and the Yucca Mountain Project. Foster Wheeler has performed over 100 ICEs, and has identified many billions of dollars in cost avoidance and co st savings, and has made significant recommendations for enhanced project management and execution.

Validations. Validations are similar to ICEs, but are performed to verify an annual budget rather than the entire project. Validations usually occur two fiscal years ahead of when the money is to be spent. As projects devel op their budgets for future fiscal years, it is common to have an independent firm verify the accuracy and reasonableness of the budget based on the expected scope of work for that year. This process ensures that annual budgets are sound, and t hat the stated w ork can be completed within the proposed budget. It ensures that project spending is justified, and that taxpayer dollars are not being wasted. Like the ICE work, Foster Wheeler Environmental Corporation has performed many validations over the years, including the Waste Receiving and Processing Module (WRAP I) at Hanford and the Plutonium Immobilization Facility for DOE.

External Assessments. The external assessment is an extremely valuable process because it analyzes an entire project, not just from a cost and schedule perspective, but from the standpoints of mission justification, operational readiness, management approach, acquisition strategy, and other areas. Projects are typically borne under a certain set of criteria or needs; however, many times those criteria and needs are altered or eliminated over the course of months or years due to chan ging priorities, technological advances, world events, or new administrations. However, the project may continue under the original project criteria and may not re-assess itself in light of these changing events. Within the purview of management and business impro vement, the external assessment provides unbiased analysis of the project to ensure that the justification exists, that the proper management structure is in place, and that the project costs and schedule are reasonable and verifiable. Foster Wheeler Environmental Corporation was instrumental in laying the groundwork for the external independent assessment process mandated by Congress in the late 1990s, and has performed several EIRs for projects at Pantex and Kansas City.

Value Engineering and Value Management. Value Engineering (VE) is a project management and analysis tool that is commonly used on government, transportation, and industrial projects. It is a highly effective optimization techni que to control or reduce the cost of a project while maintaining the quality of that project. Traditionally, VE is applied to manufacturing or construction projects. When VE techniques are applied to non-traditional projects, e.g., organizational structures, p rocedures, safety procedures, and the like, it is called Value Management (VM). VE and VM do not necessarily reduce the cost of a project by downsizing; they do offer alternative approaches to a project. Each VE study consists of a facilitator and a team of knowle dgeable, qualified people who are dedicated to finding viable solutions for a client. The VE capabilities offered by Foster Wheeler should be of tremendous value to MOBIS with the emphasis that federal agencies have on cost containment, optimization, and cost redu ction.

Organizational Assessments. Foster Wheeler performs organizational assessments, and because we function strongly in a facilitation capacity, this area is described in more detail under SIN 874-2.

ISO 14000. Foster Wheeler Environmental was the first major full-service environmental consulting, engineering, remediation and construction firm to earn ISO 14001 certification. Our Do It Right principles and Cli ent Service Quality philosophy are incorporated into our Environmental Management System (EMS). The experience we utilized to develop our EMS and obtain ISO 14001 certification is directly applicable to assisting government agencies realize improved perform ance, quality, timeliness and efficiency while increasing their customers satisfaction and enhancing the public s confidence in their government. ISO 14000 is a set of standards that provides structure for managing potential environmental impacts and liabiliti es. Strategic environmental management and planning through utilization of ISO 14001 standards is the process used to integrate environmental aspects with strategic business planning to fully capture financial, economic, competitive and operational benefits, there by assuring improved customer service. Foster Wheeler Environmental supports our clients' ISO 14001 efforts through each stage of the EMS development, implementation, and certification process. Specifically, we provide: (1) management seminars; (2) gap analysis to evaluate the differences between existing conditions at a location and the ISO standards; (3) evaluation of facility operations and identification of significant environmental aspects; (4) development of environmental objectives and targets; (5) environmental doc umentation development (manuals and procedures); (6) Third Party registrar selection assistance; and (7) pre-audit assistance prior to registration. Foster Wheeler Environmental is fully qualified to provide expert advice to support government agencies in the deve lopment and implementation of an ISO 14001 program.

Value Engineering. Foster Wheeler offers expert facilitation services, particularly in regards to Value Engineering (VE) and Value Management (VM) studies. VE and VM are extremely important to the federal government as effectiv e, low cost mechanisms to optimize project costs and evaluate viable alternatives to the proposed design or structure. A good example of VE s importance is its requirement as one of the key steps in project execution according to DOE s Life Cycle Asset Managem ent Order (DOE 430.1). The key to a successful VE or VM study is the leadership and direction provided by an unbiased, professional facilitator. The facilitator organizes the VE study, assembles participants, develops and enforces the rules for the study , focuses the discussion, documents the findings, and keeps the meeting on-track. This all leads to a productive, low cost session. A professional facilitator focuses the team members on the project, not personalities and politics. The facilitator is w ell ver sed in all the tools of the trade. These tools, such as Function Analysis System Technique (FAST) modeling, enable the team to evaluate the project at the most fundamental level and identify as many alternatives as possible.

The facilitator is a meeting chauffeur, a servant of the group. Neutral and non-evaluating, the facilitator is responsible for making sure the participants are using the most effective methods for accomplishing their task in the shortest time. T he facilitator holds the group back, offers a menu of possible ways of attacking the problem, and waits until there is agreement on one particular process. Then the facilitator helps keep the group on track until it has accomplished what it set out to do or want s to change direction. By getting all the group members to use the same tool at the same time on the same problem, the facilitator can transform a group from a multi-headed animal to a creative, coordinated organism.

Organizational Assessments. An organizational assessment is the initial phase of a facilitated process leading to improvements in efficiency, customer service, and new approaches to work flow or work designs. During the assessm ent, trained facilitators collect data through written surveys, group interviews, face-to-face interviews, or a combination of these methods. The responses are used to identify 1) organizational aspects that contribute to success and therefore need to be supported and/or enhanced, and 2) aspects that inhibit or hinder the organization s potential. Working with both sets of data, the facilitator assists all levels of the organization in recognizing areas of improvement, designing creative solutions which all stakeholders ca n support, and committing to the action steps which will move the organization forward without harming the original success factors. Foster Wheeler Environmental provides expert facilitators for organizational assessments, and is directly related to MOBIS within the purview of organizational improvement.

The training services offered by FWENC are intended to improve the management skills and operational effectiveness of the client organization. These courses should be of considerable value to the MOBIS program because they would teach pe ople how to be better project managers and how to control their projects, how to give effective oral presentations, how to negotiate contracts, and how to implement an ISO 14000 program. The positive results from these training courses include decreased project costs, increased productivity, better communications and interpersonal skills, higher quality, and enhanced public confidence.

Project Management Training. FWENC offers two Project Management (PM) training courses - PM100 which is a one-day introductory course designed for individuals who have little or no PM experience, and PM200 which is a four-day intensiv e course for individuals with some PM background. The introductory course addresses such topics as the roles and responsibilities of a project manager, the importance of planning, and understanding the client. The advanced course goes into more depth on the aforem entioned topics, and also addresses such items as contracts, project implementation, change management, and project closeout. In the advanced course, several case studies are worked on by the participants in small group settings to facilitate understanding and to provide a forum for alternative approaches towards problem solving. Besides discussing the basic elements of project management to the audience, these courses are intended to heighten overall awareness of the intricacies of effective project management, and will p oint out many of the pitfalls encountered in day-to-day project management execution. Because so many federal agencies act as overall project managers and oversee the work of multiple contractors, these courses should be invaluable to the MOBIS program in terms of promoting better overall management practices.

Negotiation Skills. This two-day workshop helps improve participant s ability to negotiate contracts and change orders, pricing, scope, and terms and conditions. The course emphasizes the interpersonal aspects of negotiations, stra tegies and tactics, and principled vs. positional negotiations through the use of contract negotiation simulations. Other session objectives include understanding the role of ego in negotiations, capitalizing on the importance of relationships and communication, a nd knowing how to prepare for negotiations. Good negotiation skills should be vital to MOBIS since federal agencies contract with a multitude of contractors, suppliers, and consultants, and nearly all contracts require some form of upfront negotiation. By negotiat ing clearly and effectively at the outset of a contract, potential problem areas and points of misunderstanding can be brought out, discussed, and reconciled, thus leading to a more productive and comfortable relationship, with a minimum of disruption, during the contract period.

Oral Presentations. This two-day workshop is designed to help individuals enhance their confidence and skills in making oral presentations. Participants make four videotaped presentations which allow them to practice specific skill bu ilding such as eye contact, body language, use of voice, audience contact, use of visual aids, and organization of content. Session objectives include gaining confidence in speaking skills, enhancing each individual s presentation style, improving specific skills based on self-assessment and feedback from others, and learning how to handle question/answer sessions more effectively. Oral presentation skills are directly relevant to MOBIS because they focus on the improvement of individual skills, which ultimately improves t he organization. Individuals will become more confidant in a speaking environment, and will more effectively communicate ideas, thoughts, and technical matter.

One of the major hurdles that has faced federal agencies is the successful management and execution of major programs and projects, often very complex, costing many billions of dollars and spanning several years. These projects typically involve numerous individual contractors and perhaps several different offices within the federal agency. For example, it is not uncommon for a project to involve elements from both the headquarters group and from the field offices. These groups may have different perceptions about what is required and there may be inadequate information flow. Complicating this further is that often the federal managers in charge of these projects and programs have not had sufficient experience and training to manage the "mega-projects", n or are they given the authority to properly execute the project and to make the tough decisions. Thus, the problems that arise are typically not technical issues, but management issues.

Program/Project Integration and Oversight. The value of program/project integration and oversight rests in the capability of the contractor to effectively bring together the components of a program or project such that the individual piec es function in a cohesive and coordinated manner towards a common mission objective, and to monitor those components throughout project execution to ensure that everything runs smoothly and cost effectively. In the case of project integration, this may involve something of a team building approach, bringing together such components as engineering and design, environmental permitting and compliance, construction, procurement, and other major players so that everyone understands the various functional groups, what is exp ected of each, and how the various groups interact. This typically involves numerous subcontractors, and the contractor in charge becomes the "integrating contractor". Program integration runs along the same lines, but is more focused on the interrelationships and synergy among several projects, and how those projects collectively meet a major policy goal or mission objective.

A major objective of program/project oversight is the early identification and resolution of potential problem areas and roadblocks before they become a problem. This can effectively be accomplished by having a singular oversight entity that see s the entire picture, communicates with all project components, and ensures that those components work together. The oversight function encompasses such activities as assessing the quality of the work being performed, compliance with standards and regulations, adh erence to schedule and budget, monitoring and implementation of safety/health issues and programs, and assessment of actual cost of work performed versus budgeted cost of work performed.

The integration and oversight functions provided by Foster Wheeler Environmental Corporation directly support MOBIS since they effectively improve the way projects and programs are run, keep projects on schedule and within budget, and improve th e way the government operates through increased efficiency, early detection and resolution of problems, and ultimately, lower overall costs.

Program and Project Management. The heart of every project or program is its management. More often than not projects fail not because of technical or environmental issues, but because of poor management. Within the context of MOBI S and federal agencies, it is vital to be able to successfully manage projects in order to improve public perception of its government and effectively utilize taxpayer dollars that are funding the project.

Management focuses on the four major objectives of 1) performing the stated scope of work, 2) staying within the project budget, 3) completing the project within the required schedule, and 4) providing the expected level of quality. A key to suc cessful project/program management starts in the planning stages, where a comprehensive Project Plan is developed that addresses such components as health & safety, risk management, staffing and resource management, communications, project documentation, regul atory compliance, and quality control. The Project Plan will also address the project organization and lines of authority, and will outline the change control procedure. The Plan is communicated to all project participants, including federal agency managers and su bcontractors so that everyone understands proper procedures and expectations.

During project implementation, effective managers communicate regularly with project staff and subcontractors so that everyone understands current status, problem areas and future activities. Management also must constantly monitor ongoing work and compare actual progress with budgeted expectations. Particularly with federal projects, it is also important to communicate with external agencies, the public and stakeholders in order to keep them involved and informed. This helps to improve the public percep tion of the project or program by "keeping them in the loop".

In summary, the program and project management services offered by Foster Wheeler Environmental Corporation are those required to keep a project running smoothly, with particular attention to scope, schedule, budget, and quality. Effective commu nication, project planning and team building are among the most important attributes. These all support MOBIS to help improve overall project management and execution, and to optimally use available funding.

Our MOBIS contract is accessed by our government clients through award of task orders under a Federal Supply Schedule (FSS). The FSS is a streamlined contracting vehicle that GSA makes available to all agencies. The first step an ordering agency must do is to prepare a performance-based statement of work that specifies the work to be performed, location of work, period of performance, deliverable schedule, applicable standards, and any special requirements (i.e. security clearances, travel , etc. ). A request for quotation is then prepared that requests contractors to submit either a firm fixed-price or a ceiling price in response to the statement of work. If the ordering agency determines that a firm fixed-price is not possible due to extent or dur ation of work, then a labor hour quote may be requested. Following review of bids, selection is made under a "best value" criterion. After a contractor is selected, the ordering office submits a task order directly with the selected contractor using t hat c ontractor s MOBIS contract. There is no need for the ordering office to contact GSA or to go through them when ordering services. The contract for work is directly with Foster Wheeler. Invoicing will go directly from the contractor to the ordering office, and payment will be directly to Foster Wheeler.

Foster Wheeler Environmental Corporation s approved MOBIS price list follows for SINs 874-1, 874-2, and 874-7.

*Rates are the same for SINs 874-1, 874-2, and 874-7.

Foster Wheeler Environmental Corporation s approved MOBIS price list follows for SIN 874-4.