# Project Management

# Description of Issue

The Department needs to improve the discipline and structure for
approving and controlling program and baseline changes to projects as
well as the Department wide approach for certifying Federal Project
Directors at predetermined skill levels to ensure competent management
oversight of resources. In addition, it was determined that the
Department needs stronger policies and controls to ensure that ongoing
projects are re-evaluated frequently in light of changing missions.

# Actions Taken & Remaining

EM manages all of its work as a series of projects. Each project has a
"baseline" that clearly documents the scope, estimated schedule, and
estimated cost for that project. EM has applied project management
principles to all cleanup projects having a total estimated cost greater
than \$20 million and is continuing its review of resource-loaded cost
and schedule baselines for 83 active projects. The baselines describe in
detail the activities, schedule and resources required to complete the
EM cleanup mission at each site or to construct a major facility at a
site. Of the 83 projects, 58 are in the execution phase. External
independent reviews (EIR) have been completed on 100% of those projects
in the execution phase. Corrective actions resulting from the EIR's are
being addressed. EM is currently working to have all active projects
validated by December 2007.

EM recognized the need to develop a Best-in-Class Project Management
(BICPM) capability to effectively mange its mission of environmental
cleanup. To accomplish this objective, a five-phased program was
developed and designed to assess current project management
capabilities, define the criteria of a BICPM organization, and implement
changes necessary to achieve BICPM. The Untied States Army Corps of
Engineers (USACE) and Project Time and Cost (PT&C) will assist EM with
the self assessment of project management capabilities at nineteen EM
selected sites including Headquarters and the EM Consolidate Business
Center. The Phase I Assessment Work Plan that includes the technical
approach and assessment criteria was completed on April 12, 2007. The
Phase II site assessments are currently being conducted and are planned
to be completed by October 2007. Phase III and IV will provide
recommendations for improvements that can be implemented at the EM
level. Phase V will be the institutionalization of BICPM. Throughout the
assessment process needs will be identified that can be filled rather
quickly thus achieving some interim accomplishments during the
establishment of BICPM capability.

The National Academy of Public Administration (NAPA) is also currently
conducting a review of EM's organization and management, in response to
direction from the House and Senate Energy and Water Appropriations
Subcommittees. Project Management is one of the focus areas being
studied. NAPA has provided EM two unpublished interim observations
papers which are currently under consideration. At the end of its
review, NAPA will issue a final published report that summarizes its
findings and recommendations. In FY 2007, EM will begin implementation
of the following NAPA recommendations to improve its project management
capability:

-   Modify the EM Integrated Planning, Accountability, and Budgeting
    System (IPABS) to include earned value management system (EVMS) data

-   Develop an internal cost-estimating capacity to establish and
    improve EM project cost estimating and overall project/program cost
    management

-   Issue requirement for contractors to provide EVMS standard CPR
    reports

-   Modify project management training to include an increased focus for
    the EVMS, IPABS, and PARS reporting systems.

SC has an established independent, peer evaluation process for assessing
the performance of its projects. This process has been recognized by
Office of Science and Technology Policy as a best practice among Federal
agencies. Typically, SC's independent project reviews are conducted
semiannually for ongoing, major construction projects and fabrication of
large-scale experimental equipment to assess the projects' technical
progress, cost and schedule performance, and management practices.
Additionally, projects are reviewed prior to approvals of critical
decisions, such as: establishing technical, cost and schedule baselines;
requesting construction funds as part of the Department's budget
process; and requesting authorization to start operations. This process
promotes comprehensive, regular communication of project status to SC
management and timely mitigation of project issues. The effectiveness of
the process is demonstrated by the successful completion of SC projects
and the history of project performance reported in the Department's
Project Assessment and Reporting System.

During FY 2006, NNSA continued their efforts in strengthening and
expanding project management capabilities through the certification
process of its construction Project Managers.

# Expected Completion

FY 2007