PROJECT CONTROL HANDBOOK

DOE Order 413. 3 Implementation Plan

![](media/image1.wmf){width="5.20625in" height="6.375in"}

September 2004

U.S. Department of Energy

National Nuclear Security Administration Service Center

Environmental Programs Department

CONTENTS

[**ACRONYMS iv**](#__RefHeading___Toc81811720)

[PREFACE vi](#__RefHeading___Toc81811721)

[1.0 INTRODUCTION 1](#introduction)

[1.1 Purpose 1](#purpose)

[1.2 Intended Audience 1](#intended-audience)

[1.3 EM Projects Planning Framework 2](#em-projects-planning-framework)

[1.3.1 Prerequisite Baseline 4](#prerequisite-baseline)

[1.3.2 Performance Baseline/Performance Measurement Baseline
4](#performance-baselineperformance-measurement-baseline)

[1.3.3 Post-Completion Baseline 4](#post-completion-baseline)

[1.4 Baseline Management Overview 5](#baseline-management-overview)

[2.0 BASELINE DOCUMENTS 6](#baseline-documents)

[2.1 Work Breakdown Structure (WBS) 7](#work-breakdown-structure-wbs)

[2.1.1 WBS 7](#wbs)

[2.1.2 WBS Dictionary 8](#wbs-dictionary)

[2.2 Responsibility Assignment Matrix (RAM)
9](#responsibility-assignment-matrix-ram)

[2.3 Project Execution Plan (PEP) 10](#project-execution-plan-pep)

[2.4 Programmatic Assumptions Document (PAD)
10](#programmatic-assumptions-document-pad)

[2.5 Task Scope Descriptions (TSD) 11](#task-scope-descriptions-tsd)

[2.6 Baseline Schedule 11](#baseline-schedule)

[2.7 Government Furnished Services and Items (GFSI)
12](#government-furnished-services-and-items-gfsi)

[2.8 Priority List 12](#priority-list)

[2.9 Risk Management Plan (RMP) 12](#risk-management-plan-rmp)

[2.10 Cost Plans 12](#cost-plans)

[2.11 Performance Metrics 13](#performance-metrics)

[2.12 Burden Rates 14](#burden-rates)

[2.13 Escalation 14](#escalation)

[2.14 Acquisition Plan or Procurement Plan
14](#acquisition-plan-or-procurement-plan)

[2.15 Project Control System Description (PCSD)
15](#project-control-system-description-pcsd)

[3.0 BASELINE DEVELOPMENT 16](#baseline-development)

[3.1 Scope 16](#scope)

[3.2 Schedule 17](#schedule)

[3.2.1 Schedule Types 17](#schedule-types)

[3.2.1.1 Project Schedule 17](#project-schedule)

[3.2.1.2 Master Summary Plan (MSP) 17](#master-summary-plan-msp)

[3.2.1.3 Integrated Baseline Schedule 17](#integrated-baseline-schedule)

[3.2.2 Building a Schedule 17](#building-a-schedule)

[3.3 Cost 19](#cost)

[3.3.1 Cost Estimating Classifications
19](#cost-estimating-classifications)

[3.3.2 Cost Estimating Methodologies 19](#cost-estimating-methodologies)

[3.3.3 Total Project Cost Components 20](#total-project-cost-components)

[3.3.4 Estimate at Completion 20](#estimate-at-completion)

[3.4 Risk Management 21](#risk-management)

[3.4.1 Contingency 22](#contingency)

[3.4.1.1 Cost Contingency 23](#cost-contingency)

[3.4.1.2 Schedule Contingency 23](#schedule-contingency)

[3.4.2 Programmatic Risk 24](#programmatic-risk)

[3.4.3 Risk Management Plan (RMP) 24](#risk-management-plan-rmp-1)

[3.4.3.1 Risk Identification 24](#risk-identification)

[3.4.3.2 Risk impact analysis and quantification
24](#risk-impact-analysis-and-quantification)

[3.4.3.3 Risk mitigation strategies development
24](#risk-mitigation-strategies-development)

[3.4.3.4 Risk monitoring 25](#risk-monitoring)

[3.4.3.5 Risk documentation 25](#risk-documentation)

[4.0 BASELINE REVIEW 26](#baseline-review)

[5.0 BASELINE PERFORMANCE REPORTING 27](#baseline-performance-reporting)

[5.1 Earned Value Principles 27](#earned-value-principles)

[5.2 Reporting Elements 27](#reporting-elements)

[5.2.1 Actual Cost Accumulation 27](#actual-cost-accumulation)

[5.2.2 Variance Analysis and Reporting
29](#variance-analysis-and-reporting)

[5.2.2.1 Schedule Variance (Time or Dollars)
30](#schedule-variance-time-or-dollars)

[5.2.2.2 Cost Variance 31](#cost-variance)

[5.2.3 Periodic Reports 31](#periodic-reports)

[5.2.3.1 IPABS-IS PEM 32](#ipabs-is-pem)

[5.2.3.2 Baseline Performance Report (BPR)
33](#baseline-performance-report-bpr)

[5.2.3.3 EM Corporate Performance Measures (Gold Chart)
33](#em-corporate-performance-measures-gold-chart)

[6.0 BASELINE MAINTENANCE 35](#baseline-maintenance)

[6.1 Baseline Change Control Objectives
35](#baseline-change-control-objectives)

[6.2 BCP Best Practices 35](#bcp-best-practices)

[6.3 Baseline Change Types 35](#baseline-change-types)

[6.4 Baseline Change Control Process
36](#baseline-change-control-process)

[6.4.1 Contractor Baseline Change Process
37](#contractor-baseline-change-process)

[6.4.2 Federal Project Director Baseline Change Process
38](#federal-project-director-baseline-change-process)

[6.4.3 EM-1 Baseline Change Process 38](#em-1-baseline-change-process)

[6.4.4 ESAAB Baseline Change Process 39](#esaab-baseline-change-process)

[Appendix A. Crosswalk - Project Controls Handbook to DOE M 413.3-1
40](#__RefHeading___Toc81811793)

[Appendix B. TSD Instructions and Example
43](#__RefHeading___Toc81811794)

[Appendix C. Baseline Performance Report (BPR) Template
49](#__RefHeading___Toc81811795)

[Appendix D. Baseline Change Proposal Template
51](#__RefHeading___Toc81811796)

[Appendix E. BCP Review Checklist 53](#__RefHeading___Toc81811797)

[Appendix F. Glossary 55](#__RefHeading___Toc81811798)

[Appendix G. References and Recommended Reading
61](#__RefHeading___Toc81811799)

**Figures**

[Figure 1: Project Management Document Framework
vi](#__RefHeading___Toc81811800)

[Figure 2: EM Projects Planning Framework
2](#__RefHeading___Toc81811801)

[Figure 3: Baseline Management Process Overview
5](#__RefHeading___Toc81811802)

[Figure 4: WBS and Scope, Schedule, and Cost Relationship
6](#__RefHeading___Toc81811803)

[Figure 5: Baseline Documentation 7](#__RefHeading___Toc81811804)

[Figure 6: Generic Work Breakdown Structure
8](#__RefHeading___Toc81811805)

[Figure 7: Simplistic Contingency and Programmatic Risk Model
22](#__RefHeading___Toc81811806)

[Figure 8: Estimating Assumptions 23](#__RefHeading___Toc81811807)

[Figure 9: Performance Measurement Parameters
29](#__RefHeading___Toc81811808)

[Figure 10. Baseline Change Control Hierarchy
37](#__RefHeading___Toc81811809)

Tables

[Table 1. Critical Decision and Baseline Relationships
3](#__RefHeading___Toc81811810)

[Table 2. WBS Dictionary Example 9](#__RefHeading___Toc81811811)

[Table 3. Responsibility Assignment Matrix Example
10](#__RefHeading___Toc81811812)

[Table 4. Cost Plan Example (separated into 2 sheets for display only)
13](#__RefHeading___Toc81811813)

[Table 5. Sample Performance Metrics Table
14](#__RefHeading___Toc81811814)

[Table 6. Contractor Reporting Elements 28](#__RefHeading___Toc81811815)

[Table 7. Example Reporting Thresholds 30](#__RefHeading___Toc81811816)

[Table 8. Reporting Requirements and How They are Met
32](#__RefHeading___Toc81811817)

[Table 9. Gold Chart Excerpt (taken directly from IPABS-IS)
34](#__RefHeading___Toc81811818)

[]{.mark}

[]{.mark}

[]{#__RefHeading___Toc81811720 .anchor}ACRONYMS

[]{.mark}

ABC Activity-based Cost

ACV At-completion Variance

ACWP Actual Cost of Work Performed

AFP Approved Funding Program

BAC Budget at Completion

BCCB Baseline Change Control Board

BCP Baseline Change Proposal

BCT Baseline Change Tool

BCWP Budgeted Cost of Work Performed

BCWS Budgeted Cost of Work Scheduled

BOE Basis of Estimate

BPR Baseline Performance Report

CAM Control Account Manager

CCB Configuration Control Board

CD Critical Decision

CPI Cost Performance Index

CPR Cost Performance Report

CSCSC Cost and Schedule Control Systems Criteria

CTD Cumulative to Date

CV Cost Variance

[]{.mark}

D&D Decontamination and Decommissioning

DOE U.S. Department of Energy

[]{.mark}

EAC Estimate at Completion

EM DOE Office of Environmental Management

EPD Environmental Programs Department

ER Environmental Restoration

ERD Environmental Restoration Division

ESAAB Energy System Acquisition Advisory Board

ETC Estimate to Complete

ETEC Energy Technology Engineering Center

EVMS Earned Value Management System

[]{.mark}

FPD Federal Project Director

FTE Full-time Equivalent

FY Fiscal Year

[]{.mark}

GA General Atomics

GE General Electric

GFSI Government Furnished Services & Items

HQ DOE Headquarters

[]{.mark}

IPABS Integrated Planning, Accountability, and Budgeting System

IPABS-IS IPABS-Information System

IPT Integrated Project Team

ITL Inhalation Toxicology Laboratory

LANL Los Alamos National Laboratory

LBNL Lawrence Berkeley National Laboratory

LCC Life Cycle Cost

LEHR Laboratory for Energy-Related Health Research

LOE Level-of-effort

LRE Latest Revised Estimate

LTES Long Term Environmental Stewardship

M Manual

MARS Management Analysis Reporting System

MLS Master Logic Schedule

M&O Management and Operating Contractor

[]{.mark}

NNSA National Nuclear Security Administration

[]{.mark}

O Order

OBS Organizational Breakdown Structure

OECM Office of Engineering and Construction Management

OMB Office of Management and Budget

PAD Programmatic Assumptions Document

PARS Project Assessment and Reporting System

PBS Project Baseline Summary

PC Project Controls

PCSD Project Control System Description

PEM Project Execution Module

PEP Project Execution Plan

PMAT Program Management and Analysis Team

PMB Performance Measurement Baseline

PSO Program Secretarial Officer

[]{.mark}

RAM Responsibility Assignment Matrix

RI Remedial Investigation

RMP Risk Management Plan

SC Service Center

SLAC Stanford Linear Accelerator Center

SPI Schedule Performance Index

SV Schedule Variance

[]{.mark}

TCPI To-Complete Performance Index

TPC Total Project Cost

TRU Transuranic Waste

TSD Task Scope Description

VAC Variance at Completion

VARS Variance Analyses

VE Value Engineering

WBS Work Breakdown Structure

WIPP Waste Isolation Pilot Plant

WMD Waste Management Division

YTD Year to Date

[]{#__RefHeading___Toc81811721 .anchor}PREFACE

The National Nuclear Security Administration Service Center (NNSA SC)
Environmental Programs Department (EPD) is providing handbooks listed in
Figure 1 for supplementing U.S. Department of Energy (DOE) Order (O)
413.3, *Program and Project Management for the Acquisition of Capital
Assets*, and DOE Manual (M) 413.3-1, *Program and Project Management
Manual* (March, 2003). NNSA SC EPD developed these handbooks to provide
guidance for DOE sites that it directs:

+---------------------------------+------------------------------------+
| -   Energy Technology           | -   Laboratory for Energy-Related  |
|     Engineering Center (ETEC)   |     Health Research (LEHR)         |
+---------------------------------+------------------------------------+
| -   General Atomics (GA)        | -   Lawrence Berkeley National     |
|                                 |     Laboratory (LBNL)              |
+---------------------------------+------------------------------------+
| -   General Electric Vallecitos | -   Stanford Linear Accelerator    |
|     (GE)                        |     Center (SLAC)                  |
+---------------------------------+------------------------------------+
| -   Inhalation Toxicology       |                                    |
|     Laboratory (ITL)            |                                    |
+---------------------------------+------------------------------------+

These handbooks provide guidance to Federal and contractor personnel who
have project management responsibilities within the NNSA SC. They
provide an understanding of the project management planning, budgeting,
executing, and reporting processes and the processes associated with
baseline reviews, cost estimating, project control systems,
decontamination and decommissioning, long-term environmental
stewardship, and value engineering.

![](media/image2.wmf){width="5.93125in"
height="3.8826388888888888in"}Figure 1 briefly describes the handbooks.
EPD personnel with project management responsibilities maintain these
handbooks. Copies are available through EPD and at
[http://www.doeal.gov/erd/policies_and_guidance.htm](http://www.doeal.gov/erd/policy_and_guidance.htm).
Beneficial comments (e.g., recommendations, additions, or deletions) and
any pertinent data for improving this document are encouraged and should
be sent to EPD's Webmaster.

[]{#__RefHeading___Toc81811800 .anchor}Figure 1: Project Management
Document Framework

# INTRODUCTION

The National Nuclear Security Administration Service Center (NNSA SC)
Environmental Programs Department (EPD) *Project Control (PC) Handbook*
consolidates standard DOE and NNSA baseline management practices used on
DOE Office of Environmental Management (EM) projects.

## Purpose

EPD implements DOE M 413.3-1, *Program and Project Management Manual*
(March, 2003) through the *PC Handbook*. DOE M 413.3-1 organizes major
project phases into initiation, definition, execution, and
transition/closeout. It identifies critical decision (CD) milestones for
project advancement and accountability to the Secretary of Energy, the
Administration, and Congress. This *PC Handbook* emphasizes the project
baseline and assumes the project is at or beyond critical decision
(CD)-2 and in the execution phase. Appendix A provides a crosswalk
between DOE M 413.3-1 and the *PC Handbook*.

The *PC Handbook* describes planning, budgeting, executing, and
reporting project control processes. It replaces the *Waste Management
Division* (*WMD) Baseline Management Guidance* document (June 2001) and
the *Environmental Restoration Division* (*ERD) Project Management
Manual* (October 2000).

## Intended Audience

NNSA SC EPD developed the *PC Handbook* to provide guidance for DOE EM
sites it directs:

+---------------------------------+------------------------------------+
| -   Energy Technology           | -   Laboratory for Energy-Related  |
|     Engineering Center (ETEC)   |     Health Research (LEHR)         |
+---------------------------------+------------------------------------+
| -   General Atomics (GA)        | -   Lawrence Berkeley National     |
|                                 |     Laboratory (LBNL)              |
+---------------------------------+------------------------------------+
| -   General Electric Vallecitos | -   Stanford Linear Accelerator    |
|     (GE)                        |     Center (SLAC)                  |
+---------------------------------+------------------------------------+
| -   Inhalation Toxicology       |                                    |
|     Laboratory (ITL)            |                                    |
+---------------------------------+------------------------------------+

The *PC Handbook* provides guidance to Federal and contractor personnel
who have NNSA SC project management responsibilities. If information in
this handbook conflicts with contractor internal requirements or
procedures, the contractor should apply the stricter guidance.
Contractors must ensure that subcontractors comply with all applicable
contract requirements and the PC Handbook principles.

This handbook uses the following terms for entities that develop,
manage, and review baseline documents:

-   ***Contractor.*** Prime contractors and their subcontractors that
    execute EM funded projects.

-   ***EPD.*** NNSA SC EPD consists of the ERD and WMD.

-   ***EM (or DOE Headquarters (HQ)).*** DOE EM funds and directs
    environmental work at the sites listed above.

-   ***Federal Project Director (FPD).*** The Federal employee
    responsible and accountable for overall project success.

-   ***NNSA SC.*** Provides business, technical, financial,
    programmatic, legal, and management services that enable NNSA
    Headquarters and Site Offices to successfully accomplish their
    missions. Supports baseline development and performs baseline
    reviews.

-   ***NNSA.*** Applies to DOE/NNSA complex-wide responsibilities,
    practices, or requirements.

## EM Projects Planning Framework 

DOE M 413.3-1 compliance is mandatory for capital asset acquisitions,
including NNSA projects with estimated fabrication, implementation, or
construction cost greater than \$5 million. DOE EM developed a framework
for integrating the DOE M 413.3-1 principles into waste management and
remedial activities. This framework (Figure 2) reflects relationships
between EM project life cycle, project management CDs, and baseline
management phases.

![](media/image3.wmf){width="5.804861111111111in"
height="3.317361111111111in"}![](media/image3.wmf){width="5.864583333333333in"
height="3.1569444444444446in"}

[]{#__RefHeading___Toc81811801 .anchor}Figure 2: EM Projects Planning
Framework

EM projects entail understanding scope through discovery, investigation,
and characterization and implementing solutions through alternative
analyses, response selection and documentation, and field cleanup. Both
CDs and the EM process follow a systematic and logical sequence.
Accordingly, baseline documentation evolves as the understanding of site
conditions increases, site data quality and information improves, and
the range of uncertainties narrows. Project baselines transition from
prerequisite then to performance and finally to post-completion,
aligning with CD-0 through CD-4 (Table 1). This handbook assumes NNSA SC
EM projects have achieved at least CD-2, but are not approved for CD-4.

+---------------------------+---------------------------+-------------+
| **EM Phase**              | **CD Definition**         | *           |
|                           |                           | *Applicable |
|                           |                           | Baseline**  |
+---------------------------+---------------------------+-------------+
| Phase 1: Initiation       | CD-0: Approve Mission     | P           |
| (pre-CD-0)                | Need (Initiation Phase)   | rerequisite |
|                           |                           | Baseline    |
|                           |                           | (Sec        |
|                           |                           | tion 1.3.1) |
+---------------------------+---------------------------+-------------+
| Phase 2: Definition       | CD-1: Approve System      |             |
| (pre-CD-1)                | Requirements and          |             |
|                           | Alternatives, Conceptual  |             |
|                           | Design Report (Definition |             |
|                           | Phase)                    |             |
+---------------------------+---------------------------+-------------+
| Phase 3: Execution        | CD-2: Approve Acquisition | Performance |
| (pre-CD-2)                | Performance Baseline,     | Baseline,   |
|                           | Final Design Report       | (Sec        |
| Phase 4: Execution        | (Execution Phase)         | tion 1.3.2) |
| (pre-CD-3)                |                           |             |
|                           |                           |             |
| Phase 5: Execution        |                           |             |
| (post-CD-3)               |                           |             |
+---------------------------+---------------------------+-------------+
|                           | CD-3: Approve Start of    |             |
|                           | Construction/Remediation  |             |
|                           | (Execution Phase)         |             |
+---------------------------+---------------------------+-------------+
| Phase 6: Transition       | CD-4: Approve Project     |             |
| (pre-CD-4)                | Transition, Project       |             |
|                           | Closeout                  |             |
| Phase 7: Close-out        | (Transition/Closeout      |             |
| (post-CD-4)               | Phase)                    |             |
+---------------------------+---------------------------+-------------+
|                           |                           | Post        |
|                           |                           | -completion |
|                           |                           | Baseline    |
|                           |                           |             |
|                           |                           | (Section    |
|                           |                           | 1.3.3)      |
+---------------------------+---------------------------+-------------+

[]{#__RefHeading___Toc81811810 .anchor}Table 1. Critical Decision and
Baseline Relationships

The Integrated Project Team (IPT) is critical to EM planning framework.
IPTs are comprised of Federal and contractor professionals of diverse
disciplines with specific knowledge, skills, and abilities necessary to
support successful project execution. Project Directors, contracting
officers, safety and quality, legal, and technical personnel participate
on IPTs. As projects progress from initiation to transition/closeout,
IPTs evolve to incorporate the necessary skills.

The IPT is responsible for the following project planning activities:

-   Developing acquisition and project contracting strategy

-   Supporting project performance, scope, schedule, cost, safety, and
    quality objectives

-   Identifying and defining appropriate and adequate project scope,
    schedule and cost parameters

-   Performing monthly reviews and assessments of project performance
    and status against established performance parameters, baselines,
    milestones, and deliverables

-   Planning and participating in project reviews, audits, and
    appraisals as necessary

-   Reviewing CD packages for completeness and recommending approval or
    disapproval

-   Reviewing change requests and supporting change control boards

-   Planning and participating in operational readiness reviews

-   Supporting the preparation, review, and approval of project
    completion and closeout documentation.

### Prerequisite Baseline

Develop project prerequisite baselines at CD-0 and CD-1 to provide
information regarding scope, schedule, resource needs, and acquisition
strategy for the CD-2 performance baseline. Describe the strategy and
requirements for achieving CD-2. Establish project requirements at CD-1
to ensure clear contract statements of work, a risk-based end state, and
criteria for achieving EM completion.

### Performance Baseline/Performance Measurement Baseline

Establish a performance baseline at CD-2 and maintain it until CD-4.
Define performance parameters, scope, and a risk-based end state.
Provide a schedule that integrates the cleanup tasks with Government
Furnished Services & Items (GFSI) and resource-loaded activities. Risk
management and contingency planning are also critical elements of the
performance baseline as cleanup projects inherently have varying degrees
of uncertainty. The EM performance baseline is synonymous with DOE/NNSA
Acquisition Performance Baseline.

The contractor project manager submits the performance baseline to the
FPD. The FPD approves it and submits it to EM HQ for final approval at
CD-2. A performance measurement baseline (PMB) is a performance baseline
that DOE has reviewed and validated. The PMB provides the basis for all
performance reporting, e.g., earned value, performance metrics, and
management commitments.

The NNSA SC may review the performance baseline and any baseline change
proposals (BCPs). EPD's *Baseline Review Handbook* describes the review
process.

### Post-Completion Baseline

Post-completion baselines are established at CD-4. Like the performance
baseline, the post-completion baseline defines cleanup performance
parameters, scope, schedule, and cost estimates. However, it addresses
activities that occur after EM completion, including institutional
controls, long-term response actions, and other activities and
responsibilities needed to maintain the site in a sustainable, safe
condition. Administrative activities such as five-year remedy reviews,
permit renewals, and information management are also described in the
post-completion baseline.

## Baseline Management Overview

Approved baselines allow for systematically managed projects by
providing the basis for measuring performance and demonstrating that the
project is under financial and managerial control. An approved baseline
provides DOE assurance that the project is inherently less risky because
it demonstrates sound planning, assumptions, and management. An approved
baseline reflects high confidence in the baseline, resulting in DOE's
ability to be a project proponent to EM Headquarters, the Office of
Management and Budget (OMB), and Congress.

[]{.mark}

If a baseline does not receive approval, then the FPD must address the
deficiencies.

![](media/image4.wmf){width="1.7375in" height="1.582638888888889in"}

During the execution phase (CD-2 and CD-3), the baseline is reviewed for
the following:

-   Baseline integrity in terms of scope, schedule, and cost

-   Baseline documentation

-   Assumptions used in deriving the baseline

-   Risk identification, quantification, mitigation, and reporting

-   Procedures for reporting performance against the baseline

-   Procedures for managing baseline changes

Contractors must report progress against the PMB. Changes to the PMB are
made in accordance with the contractor's approved procedures. Figure 3
depicts the overall relationship of baseline management processes
discussed in this document.

![](media/image5.wmf){width="6.035416666666666in" height="3.08125in"}

[]{#__RefHeading___Toc81811802 .anchor}Figure 3: Baseline Management
Process Overview

> Solid lines reflect the general flow for a new project. Dashed lines
> reflect the dynamic baseline management occurring for ongoing
> projects.

# BASELINE DOCUMENTS

Project baseline documents describe project scope, schedule, and cost
estimates and are linked by the work breakdown structure (WBS) (Figure
4). Define the scope before developing the schedule and cost estimates.
Lack of clear scope definition frequently causes negative cost and
schedule variances (SV) and baseline changes. Distributing resource
needs throughout the project schedule results in schedule and cost
estimates reflecting information contained in the baseline scope.
Section 3 provides scope, schedule, and cost estimate information.

![](media/image6.png){width="1.6666666666666667in" height="1.475in"}

[]{#__RefHeading___Toc81811803 .anchor}Figure 4: WBS and Scope,
Schedule, and Cost Relationship

The WBS must crosscut baseline documents (described in this section) and
tie together both vertically and horizontally (Figure 5). For example,
horizontal traceability is demonstrated when a particular WBS level is
identified in the responsibility assignment matrix (RAM), the task scope
description (TSD), and the project schedule with consistent scope,
schedule, and costs. Vertical traceability is demonstrated by
identifying a work hierarchy from high-level documents, such as the
program assumptions document (PAD), to more detailed documents such as
the project schedule and TSDs. The following sections describe the
documents developed to represent the baseline.

![](media/image8.wmf){width="5.793055555555555in"
height="3.134027777777778in"}

[]{#__RefHeading___Toc81811804 .anchor}Figure 5: Baseline Documentation

## Work Breakdown Structure (WBS)

The WBS has two distinct parts: the WBS and the WBS dictionary. These
are developed at the project start and used throughout the baseline
documentation (Figure 5). Figure 6 provides an example generic and
sample WBS.

### WBS

The WBS is a hierarchy of related activities and/or products that must
occur to accomplish project objectives. The WBS can be structured in
many ways as long as it reflects the way work is performed and costs can
be collected, summarized, and reported using this structure. For
instance, the WBS can be structured by waste type, waste location, or
processing method.

The WBS begins at Level 1, representing the entire system. Lower levels
are consecutively numbered 2, 3, 4, etc. The contractor maintains the
WBS down to at least one level below WBS Level 8, or the deliverable
level. Control accounts (the cost and schedule control focus for each
project) usually are established at or just below the deliverable level
for EM projects or at the appropriate level as determined by the project
manager. Assign responsibility for each control account to the project
manager or a control account manager (CAM) responsible for controlling
resources and tasks for the control account. Each contractor maintains a
CAM list. Additionally, each contractor establishes, implements, and
maintains a process for controlling control account openings and
closings, in accordance with the contractor's work authorization
procedures. For any opened control account, contractors maintain control
account packages, which include the following at a minimum:

-   Work authorization record

-   Baseline scope, schedule, and cost estimates

-   Cost and schedule performance, baseline variances and corrective
    actions, and baseline change control action records.

![](media/image9.wmf){width="5.992361111111111in"
height="2.3222222222222224in"}

![](media/image10.wmf){width="5.492361111111111in"
height="3.6777777777777776in"}

[]{#__RefHeading___Toc81811805 .anchor}Figure 6: Generic Work Breakdown
Structure

### WBS Dictionary

Activities associated with each WBS are defined in the WBS Dictionary.
The definitions cover the life cycle scope, not just the estimate to
complete (ETC). The WBS Dictionary does not include dates and costs
(because these are included in the TSDs and schedule). A contractor may
include the WBS Dictionary information within TSDs if the scope is
described to WBS Level 8 or 9. An example of a WBS Dictionary is
provided in Table 2.

+-----------+----------------------------------------------------------+
| ***WBS*** | ***Definition***                                         |
+-----------+----------------------------------------------------------+
| **1       | The laboratory has an ongoing research mission. The site |
| .4.2.6.** | will maintain most of its 43 square mile property but is |
|           | considering transfer of up to 7,000 acres to the country |
|           | for industrial use. Land and facilities that DOE will    |
|           | retain will be remediated to allow for industrial use.   |
|           | The land that has been released or is scheduled to be    |
|           | released will be remediated to allow for unrestricted    |
|           | sue. The environmental restoration project is scheduled  |
|           | for completion in FY2015.                                |
+-----------+----------------------------------------------------------+
| **1.      | Assessment consists of CERCLA remedial investigation     |
| 4.2.6.**1 | including risk assessments, feasibility studies          |
|           | including ARAR identification, removal actions, and      |
| A         | codification of cleanup standards and selected remedy    |
| ssessment | for remedial action in the record of decision. Also      |
|           | included are monitor well field O&M and compliance       |
|           | monitoring during the assessment phase.                  |
+-----------+----------------------------------------------------------+
| **1.4.    | RI consists of investigation, evaluation, and            |
| 2.6.**1.1 | documentation of site characteristics, nature and extent |
|           | of contamination, contaminant fate and transport, and    |
| Remedial  | risks/hazards posed by contaminants identified at the    |
| Inve      | site. RI includes information gathering, field           |
| stigation | investigations, data collection, analysis, QA/QC and     |
| (RI)      | evaluation, risk assessment, and preparation of RI       |
|           | documents.                                               |
+-----------+----------------------------------------------------------+
| **1.4.2.  | RI planning consists of the preparation and review of    |
| 6.**1.1.1 | plans that identify how the RI will proceed. Work plan,  |
|           | chemical data acquisition plan, sampling and analysis    |
| RI        | plan, site health and safety plan, data management plan, |
| Planning  | community relations plan, and risk assessment plan are   |
|           | included.                                                |
+-----------+----------------------------------------------------------+
| *         | Work plan consists of all activities related to the      |
| *1.4.2.6. | preparation and review of a detailed scope of work and   |
| **1.1.1.1 | task and subtask descriptions, and development of        |
|           | interrelations, schedule, resource requirements, and     |
| Work plan | sequencing.                                              |
+-----------+----------------------------------------------------------+

[]{#__RefHeading___Toc81811811 .anchor}Table 2. WBS Dictionary Example

## Responsibility Assignment Matrix (RAM)

The RAM states the name, title, organization, and phone number of each
CAM responsible for the scope, schedule, and cost performance for each
work package defined in the WBS. Elements of the Organizational
Breakdown Structure can be included in the RAM by including the CAM's
department or organization. Table 3 includes a sample RAM.

  ----------- ------------------ ------------- ---------------- -------------- ------------- ----------
  WBS         WBS Title          CAM           Title            Organization   Control       Phone
                                                                               Acclount No.  Number

  1.0         PRS#16-30          Shirley       Environmental    Engineering    AB110.1       \(505\)
                                 Jackson       Scientist        Dept.                        555-1211

  1.1         Characterization   Gilbert       Geohydrologist   Geophysics     AB110.12      \(505\)
                                 Johnson                        Dept.                        555-1212

  1.1.1       RFI Report         Sue Smith     Env. Eng.        Geophysics     AB110.121     \(505\)
                                                                Dept.                        555-1213

  1.1.1.1     Field Work         Frank Bell    Env. Eng         Engineering    AB110.1211    \(505\)
                                                                Dept.                        555-1213

  1.1.1.1.1   Work Plan A        Jane Johnson  Senior Scientist Geophysics     AB110.12111   
                                                                Dept.                        

  Note: All                                                                                  
  WBS                                                                                        
  elements                                                                                   
  will be                                                                                    
  included in                                                                                
  the RAM.                                                                                   
  ----------- ------------------ ------------- ---------------- -------------- ------------- ----------

[]{#__RefHeading___Toc81811812 .anchor}Table 3. Responsibility
Assignment Matrix Example

## Project Execution Plan (PEP)

The PEP summarizes critical information and documentation necessary for
managing the project. DOE M 413.3-1 specifies the PEP's contents. PEP
topics (that may be summarized in the PEP and more fully presented in
another document) include:

-   Mission need statement and project objectives

-   Organization chart with positions, departments, and names

-   Organizational Breakdown Structure, including responsibility
    assignment matrix, roles, responsibilities, authorities, and
    accountabilities; change control management, support functions

-   Project description, including reference to operational, technical,
    and functional requirements, and priorities

-   Acquisition and contracting strategy, including methods used to
    conduct the various activities and sub-activities (e.g., what work
    is conducted in-house and what is performed by contract).

-   Summary of the following information that is provided in separate
    documents:

```{=html}
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```
-   Schedule (project begin, major milestones, planned design reviews,
    including critical design reviews and other reviews, and critical
    path\[s\])

-   Annual and life-cycle costs

-   Metrics by year, including history

-   Resource requirements (including budget, staffing, support
    contracts)

-   Site development, permits, and licensing

-   Integrated Safety Management

-   Quality assurance plan

## Programmatic Assumptions Document (PAD)

The PAD documents key assumptions used to develop the project's life
cycle baseline. Update the PAD as assumptions change. The PAD
accompanies the initial baseline, updates to the baseline, and baseline
reviews. Programmatic assumptions are those that apply to the majority
of project activities. The PAD may be a stand-alone document or the
information included in the PEP. Assumptions included are:

-   Technical assumptions (e.g., overall strategy and assumptions for
    remedial actions or waste management, sampling assumptions, document
    preparation, information and data management, decontamination and
    decommissioning (D&D), long-term environmental stewardship (LTES))

-   Schedule

-   Regulatory assumptions (including assumptions for regulatory review
    periods)

-   Administrative

-   Project organization

-   Prioritization

-   Budget and cost estimating assumptions (cost estimating types and
    methodologies, contingency development, budget cycles)

-   Programmatic risk development assumptions

Describe activity-specific assumptions in the TSDs.

## Task Scope Descriptions (TSD)

TSDs tie scope, cost estimate, and schedule together for individual
tasks using the common WBS. Provide sufficient detail so an independent
expert who has a general knowledge of the scope area but limited project
knowledge can understand them.

Write TSDs to WBS Levels 8 or 9, depending on the project and as
negotiated between DOE and the contractor. Update them annually at a
minimum. Instructions and format for preparing TSDs, along with an
example, are included in Appendix B. TSDs include, but are not limited
to, the following headings:

-   WBS number and title

-   Date prepared and updated

-   Control account manager and organization

-   Performance measures

-   Planned start and completion dates

-   Annual cost plan and FTE plan

-   Cost estimating methodology

-   Work scope and resource requirements

-   Critical milestones

-   Project risks

-   References

-   Related TSDs

-   Gantt chart

## Baseline Schedule

The baseline schedule is the primary tool used to manage the project.
Section 3.2 discusses schedule development and requirements in detail.

The schedule is logically built and resource loaded and has a defined
critical path or paths. Maintain a milestone log that will accompany the
schedule and include enforceable agreement milestones, EM corporate
performance measures, management commitments, critical path milestones,
and other milestones.

## Government Furnished Services and Items (GFSI)

GFSI includes those activities performed by DOE and other government
agency employees necessary for accomplishing project completion. GFSI
activities are integrated into the project schedule. The baseline links
GFSI to required delivery dates. The level of detail should be
determined based on complexity of the project, remaining project
life-cycle, maturity of Federal business systems, and any other factor
deemed necessary by the FPD or Project Manager. GFSI activities include
the following areas:

These activities have logical interfaces with the contractors' scheduled
activities. DOE and the contractor develop the protocol for statusing
GFSI activities since integrating these activities with the contractor's
baseline is necessary.

## Priority List

The contractor develops a list of execution-year work, identifying and
prioritizing discrete activities or groups of activities with associated
funding requirements. This makes scope adjustment easier in the event of
funding cuts or funding additions.

## Risk Management Plan (RMP)

The RMP describes the project's risk management process, methodology,
risk analysis results, and mitigation planning. Section 3.4 provides a
detailed description of RMPs. RMPs include, but are not limited to, the
following categories, representing sequential risk management steps:

-   Risk identification

-   Risk impact analysis and quantification

-   Risk mitigation strategies development

-   Risk monitoring

-   Risk documentation

## Cost Plans

Cost plans are usually included in all planning documents to show the
total project cost. They should be signed and approved by the contractor
project manager and included in each Baseline Performance Report (BPR).
Cost plans include costs incurred to date (prior year actuals), current
year planned costs, and out-year plans by year. Provide cost plans to
WBS level 6, 7, or 8, depending on the project and agreement between the
DOE and the contractor. Table 4 provides an example of a cost plan.

![](media/image11.wmf){width="6.820833333333334in"
height="2.2819444444444446in"}

![](media/image12.wmf){width="4.270833333333333in"
height="2.2868055555555555in"}

[]{#__RefHeading___Toc81811813 .anchor}Table 4. Cost Plan Example
(separated into 2 sheets for display only)

## Performance Metrics

Metrics are included in baseline documentation (PMP and TSDs), IPABS
(Gold Chart), and contractual documents and can include a variety of
items, depending on the project. Some metrics are annualized projections
of measurable output project quantities such as numbers of drums shipped
to the Waste Isolation Pilot Plant (WIPP) or the number of dispositioned
sealed sources. Metrics are best displayed in a table and must include
history (accomplishments to date), yearly projections, a yearly total
and a project total. The table can be included in the PEP or be a
stand-alone table. TSDs that include elements captured on the metrics
tables should include the metrics information. An example is provided in
Table 5.

  ----------------- ----------- ---------- ---------- ---------- ---------- ---------- ------------- ------------- ------------- ------------- ------------- ------------- ----------- --------------
  **Description**   **History   **FY04**   **FY05**   **FY06**   **FY07**   **FY08**   **FY09-13**   **FY14-20**   **FY21-30**   **FY31-40**   **FY41-50**   **FY51-60**   **Total**   **Comments**
                    to Date**                                                                                                                                                          

  Release site      5           4          5          3          3          1          0             0             0             0             0             0             21          Defined per
  completions                                                                                                                                                                          DOE release
                                                                                                                                                                                       site metrics
                                                                                                                                                                                       table and
                                                                                                                                                                                       database.

  \# operating GW   3           4          4          5          6          8          5             3             0             0             0             0             38          Some STUs will
  treatment units                                                                                                                                                                      shut down
                                                                                                                                                                                       earlier as VOC
                                                                                                                                                                                       & RDX plumes
                                                                                                                                                                                       remediate.

  \# Drums          9           3          4          2          2          2          1             1             1             1             1             1             28          Priority to
  characterized                                                                                                                                                                        characterize
                                                                                                                                                                                       legacy waste,
                                                                                                                                                                                       then newly
                                                                                                                                                                                       generated

  \# Drums shipped  3           6          7          2          2          2          1             1             1             1             1             1             28          Priority to
                                                                                                                                                                                       ship legacy
                                                                                                                                                                                       waste, then
                                                                                                                                                                                       newly
                                                                                                                                                                                       generated
  ----------------- ----------- ---------- ---------- ---------- ---------- ---------- ------------- ------------- ------------- ------------- ------------- ------------- ----------- --------------

[]{#__RefHeading___Toc81811814 .anchor}Table 5. Sample Performance
Metrics Table

An extract of these project metrics are the basis for the second type,
the EM corporate performance measures, that are included in Integrated
Planning, Accountability, and Budgeting System Information System
(IPABS-IS) and reported in the quarterly BPR. This is a high-level
performance metrics table called the "Gold Chart" and described in more
detail in Section 5.2.3.3.

## Burden Rates

The contractor\'s finance organization provides approved burden rates
and makes them available for DOE review. Rates used, and examples of how
rates are applied in the baseline cost estimates, should be presented
clearly and concisely. The "Accounting Disclosure Statement" with
"provisional rates" identifies what is included in the burden pool and
the basis on which they are liquidated.

## Escalation

When building a project budget, escalation is applied to cost estimates
and contingency for each fiscal year (FY) (excluding the execution
year). This converts base-year dollars to year of expenditure dollars;
referred to as converting "constant" to "current year" dollars in
IPABS-IS. Clearly identify escalation factors in the baseline
documentation and ensure consistent application with either
OMB-specified escalation rates or DOE-approved rates.

## Acquisition Plan or Procurement Plan

DOE M 413.3-1 states \"the Acquisition Plan delineates in ever
increasing detail the processes by which the Government and/or its
contractors will acquire a system, project or product or portions of
such system.\" However, as stated earlier, the assumption is that the
projects for which baselines addressed in this Handbook are in the
execution phase, not at the mission need stage, when a range of
acquisition alternatives are being evaluated. Therefore, using a
tailored approach is appropriate for this requirement.

A stand-alone acquisition strategy may not be necessary but rather a
section could be included in the PEP. The contractor can include the
strategy used for integrating multiple subcontractors, as an example.
Contractors should have the FPD approve the tailored approach in
advance.

## Project Control System Description (PCSD)

The PCSD documents the project control processes used and can be
considered a desktop procedure for those responsible for performing
project controls. Document the following processes in the PCSD:

Update the PCSD as processes change or new requirements are added or
deleted. During baseline reviews, project control staff may be
interviewed as to how they perform some of their processes. Interview
results are typically compared to the PCSD, so it is important the PCSD
accurately presents the practices.

# BASELINE DEVELOPMENT

Realistic baseline development requires that technical work scope,
schedule, and costs are fully defined based on realistic and
understandable assumptions and exclusions, documented in the PAD, and
identified and analyzed project risks documented in the RMP. Contractors
document baseline development procedures in the PCSD. Scope, schedule,
and cost estimate development activities are described in the following
sections.

## Scope

Project scope describes activities for accomplishing project objectives
(e.g., remedial action, waste management, D&D, or LTES). The DOE,
applicable regulators, other stakeholders, and the contractor should
agree on technical approach and planning assumptions prior to baseline
development. The scope serves as the basis for preparing cost and
schedule estimates. Describe the overall scope in the PEP and provide
detailed descriptions in TSDs. Scope descriptions include constraints
and assumptions and are used for preparing activity-based cost (ABC)
estimates. Appendix B provides TSD required fields, instructions, and a
sample report.

![](media/image13.wmf){width="1.4375in" height="1.2430555555555556in"}

The scope should:

-   Describe the work to be done and trace through the WBS levels.

-   Clearly relate to the baseline schedule and cost via the WBS.

-   Be revised so that it remains accurate and up-to-date

-   Reflect compliance with federal and state environmental, safety, and
    health laws and requirements.

For example, waste management project scopes may describe operations
based on specific waste streams (e.g., waste treatment, storage, or
shipment; or directing waste minimization, pollution prevention, and
characterization activities). Contractors also may identify and document
projected capacity needs for on- and off-site treatment, storage, and
disposal facilities or for new or upgraded facilities.

Program management scope descriptions have special characteristics,
differing from activity-specific scope descriptions in several ways.
Program management scope descriptions typically include the following:

-   Core or infrastructure requirements.

-   Requirements for quality assurance, health and safety, and
    Integrated Safety Management.

-   Activities necessary for complying with regulatory drivers such as
    DOE orders; Federal statutes and regulations (e.g., Federal Facility
    Compliance Act, Low-level Radioactive Policy Act, or Resource
    Conservation and Recovery Act); state environmental regulations; and
    negotiated compliance agreements. Regulatory drivers may require
    deadlines for performing specific tasks such as periodic reporting,
    public comment periods, monitoring activities, use of specific
    protocols, and work exposure limits, which may affect cost and
    schedule.

-   Level-of-effort (LOE) activities. LOE activities are not easily
    tracked using earned value project control techniques. To ensure
    that the project level earned value is appropriately summarized,
    contractors may choose to set budgeted cost of work performed (BCWP)
    equal to budgeted cost of work scheduled (BCWS). An alternate
    approach is tracking program management costs by spend variances
    (i.e., actual cost of work performed (ACWP) versus BCWS). LOE
    activities should not be on the critical path because schedule
    delays associated with LOE work would not cause corresponding delays
    in the project completion date.

## Schedule

The baseline schedule provides a time-phased, logical sequence of
interdependent activities and milestones defined by technical scope. It
contains the lowest level PMB schedule elements. The baseline schedule
provides source data and status of summary schedule reports, integrates
the entire work scope, and assigns resources (hours and dollars). All
scheduled activities must be traceable to the WBS and associated cost
estimate. Activity relationships and sequencing should describe
lifecycle scope, constraints, and decision points reflecting a critical
path and enabling meaningful total float analysis. After DOE approves
the baseline schedule, contractors should use it as the primary project
management tool. Technical and project control staff must understand the
assumptions used in building the schedule and the principles involved in
maintaining it.

Well-constructed and maintained schedules provide critical-path and SV
analysis data for timely management decision-making and required
corrective actions. The schedule also:

-   Establishes the foundation for the PMB, providing a basis for EV
    assignment, variance analysis, status reporting, and overall project
    performance evaluation.

-   Compares actual to planned performance for activities and
    milestones.

-   Facilitates and supports completion date forecasting of project
    milestones, activities, and overall project completion.

### Schedule Types

The primary EPD required schedules are project schedules, Master Summary
Plan (MSP), and the Integrated Baseline Schedule.

#### Project Schedule

Project schedules include planning (also referred to as target or
baseline) and forecast (working or status) schedules. Both schedules are
fully integrated, resource loaded networks, separately maintained using
the scheduling software. At project start or during rebaselining,
planning and t forecast schedules are identical for activities that have
not started, but will usually diverge when the first forecast schedule
is statused. An approved BCP is required for revising the planning
schedule but is not required for forecast schedule changes. Forecast
schedules are updated and compared with planning schedules monthly, to
determine variances in start and finish dates.

#### Master Summary Plan (MSP)

MSPs are one page, presentation quality, Gantt charts depicting major
activities, milestones, CDs, and performance measures from project start
through project completion and progress to date. An MSP is only a
snapshot. MSPs need not be electronically generated by the project
schedule but should be frequently updated with project schedule
information. MSP milestones must be consistent with milestones in
IPABS-IS and Project Assessment and Reporting System (PARS) (Section
5.2.3.1) updates.

#### Integrated Baseline Schedule

Integrated baseline schedules include contractor-generated project
schedules, risk mitigation (or Management) baselines, and the DOE/GFSI
baseline. GFSI is described in Section 2.7.

### Building a Schedule

Building a schedule is an iterative process beginning at project
inception and continuing through project completion. Knowledgeable
project technical staff and experienced schedulers build the schedule,
understanding project constraints (e.g., must be within 90 days of
permit approval per permit requirements), assumptions (e.g., client
review not to exceed 10 days), and milestones (e.g., deliverable due
dates). Schedules must include:

-   Activities aligned with WBS

-   Resource loaded discrete activities, including subcontractors

-   Resource loaded LOE activities

-   Milestones

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```
-   Enforceable agreement and regulatory-driven milestones

-   EM corporate performance measures

-   Management commitments

-   Budget

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```
-   Approved baseline change actions

-   Predecessor/Successor logic relationships

-   Total Float

-   Critical path identification

Project schedules may reflect a rolling wave approach with higher level
planning detail of near-term activities and less planning detail for
future work. This approach does not preclude inclusion of all known
project information in the near term. Near term is between two and five
years, depending on the remaining project duration and FPD direction.
Beyond the two to five year period, schedule detail should be based on
good technical and project management judgment or current site
knowledge, task complexity, and risk.

[]{.mark}

**Predecessor/successor relationships.** Contractors are required to
establish activity dependencies in schedules. A schedule dependency is a
timing relationship between two activities that determines the logical
sequence of events. Activities and events should be logically linked.
The most common logic relationship is a finish-to-start relationship
(one activity must end before the next can begin). However,
finish-to-start is not the way work is always performed. It is also
necessary to include logic relationships that provide flexibility, such
as one activity (successor) cannot begin until 20 days after another
activity (predecessor) starts or one activity cannot finish until 10
days after another activity finishes. Credible critical paths are not
possible if activities are not logically linked.

[]{.mark}

**Total float.** Total float is the difference, usually measured in
days, between when an activity could start and finish and when it must
start and finish to avoid affecting the critical path and total project
duration. Total float management is one of many tools contractors use
for managing projects. It highlights future work that could be impacted
by current schedule delays, enabling early action. To accurately
calculate float, contractors should ensure that activities are logically
tied to predecessor/successor activities to create a closed network and
remove inaccurate and inappropriate activity constraints. Negative total
float indicates the project cannot finish on time. Excessive positive
float generally indicates lack of a closed network or incorrect logic.

**Critical path.** Properly constructed project schedules identify
credible project critical path(s). A critical path includes activities
for which any schedule delay causes a corresponding delay in project
completion. Thoroughly develop logical links to ensure an accurate
critical path as the basis for forecasting and decision-making
throughout project life. Schedules depict critical path(s) for
completing the mission and the project end state. Critical path(s)
descriptions should be documented in the PEP. Critical paths can change.

## Cost

Cost is the dollar estimate for completing the technical work scope
within schedule, regulatory, and funding constraints. ABC estimating is
the preferred cost-estimating methodology. This estimating methodology
breaks project work into discrete quantifiable activities by the WBS.

Include labor requirements (labor dollars = hours x dollars per hour),
material, equipment, indirect costs, escalation, and subcontracted costs
in cost estimates. Contingency is added for some environmental
restoration (ER) projects.

### Cost Estimating Classifications

DOE commonly uses the following four cost-estimating classifications,
reflecting degree of project definition:

-   **Planning estimates** are used when information is lacking (e.g.,
    for new and/or competing technologies). Planning estimates evaluate
    and compare potential options or alternatives. Planning estimate
    cost elements combine, or are based on, parametric models, empirical
    data, analogies, and expert opinions. Reliability ranges from ±50
    percent to ±25 percent.

-   **Preliminary estimates** are for projects with moderately detailed
    scope definition (e.g., known technology and processes). Preliminary
    estimate cost elements are based on parametric cost-estimating
    relationships and use detailed estimating techniques. Reliability
    ranges from ±25 percent to ±15 percent.

-   **Detailed estimates** are appropriate for detailed activity
    estimates. Reliability ranges from ±15 percent to ±5percent.

-   **Government estimates support procurement actions.** Baseline
    documents are public; therefore, government estimates are prepared
    independently, primarily for procurements actions. They are based on
    bid documents and specifications and used only for evaluating bids.
    Governmental estimates are reconciled competitive offers prior to
    contract award. Reliability ranges from ±5 percent to ±10 percent.

![](media/image14.wmf){width="1.2645669291338584in"
height="1.1366141732283463in"}Cost estimates are reviewed at each
project phase to determine if a more defined cost estimate is attainable
based on actual project history. Estimates are the basis of submittals
to the budget formulation process. ABC estimates are prepared for
activities for a three-year period, supporting DOE budget formulation by
establishing estimates for the budget year plus one year. This does not
imply that baseline estimates for out-year work can be omitted, but
acknowledges that lack of information may impact estimate quality.

Estimates for activities required for project completion must be
provided and assumptions and accuracy documented in TSDs. The best
possible estimate or an existing quote should be provided regardless of
the year work is planned. In addition, backup estimates for subcontracts
greater than \$100K must be available to DOE and include estimated costs
for material, labor, and equipment.

### Cost Estimating Methodologies

Identify a cost estimating methodology consistent with ABC and with the
project phase or level of definition. Classify the estimate as LOE,
specific analogy, existing contract, bottom-up, empirical data,
parametric, estimating models, expert opinion, market quotations, or a
combination of methods and include assumptions for determining the life
cycle costs. The contractor is expected to:

-   Use estimating techniques (if time and budget are available) that
    provide the most accurate forecast of expected costs.

-   Use the most current rates available.

-   Rely, wherever possible, on historic cost data.

-   Document labor, material, equipment, and subcontract cost
    assumptions and exclusions.

-   Provide assumptions used in developing technical, schedule, and
    cost.

-   Provide discrete estimates of direct and indirect costs.

-   Prepare TSDs that tie scope, schedule, and cost into one document.
    TSD cost estimates must include labor, material, equipment, and
    subcontracted costs. See Appendix B for TSD preparation
    instructions.

-   Escalate estimates based on DOE or OMB approved rates.

### Total Project Cost Components

The total project cost (TPC) includes all costs required for completing
the scope within schedule, regulatory, and funding constraints,
including project management. TPC is computed as follows:

**TPC = actuals to date + estimate to complete (ETC) + contingency (for
ER)**

ETC includes the following components:

-   ***Time-Phased Cost Profile.*** Resource and/or cost load schedule
    activities for determining annual funding requirements. Employ
    resource leveling necessary for aligning with realistic out-year
    funding expectations and regulatory compliance requirements in the
    submitted baseline cost plan and updated cost plans in monthly and
    quarterly reports.

-   ***Subcontractor Estimates.*** Subcontractor estimates can be either
    lump sum or hourly estimates, but must include assumptions used to
    quantify proposed subcontractor efforts. TSDs will contain detailed
    backup for lump sum and major services in excess of \$100K, or
    amounts specifically directed by EPD.

-   ***Level of Effort (LOE).*** Contractors estimate support effort
    that cannot be measured as discrete accomplishments. LOE is a
    sustained rate of activity for a specific time period. Assumptions
    used for developing LOE estimates must be included in baseline PADs
    or TSDs.

-   ***Burdened Rates.*** Direct and burdened rates are established
    yearly for budget estimating purposes and included in baseline
    documentation as "Overhead" or "Burdened Rates." Rate variations
    during the year will not be reflected in the baseline. Contractors
    should include the algorithms for applying burdened rates in
    baseline documentation, such as the PAD.

-   ***Escalation Factors.*** Clearly identify escalation factors in
    baseline documentation and demonstrate consistency with either
    OMB-specified escalation rates or DOE-approved rates. Escalation is
    applied to baseline estimates each FY to determine the PMB.

-   ***Contingency.*** Annual contingency estimates included for some ER
    projects are also escalated.

### Estimate at Completion

**EAC = actuals to date + ETC +contingency \[for some ER projects\]**

Estimate at completion (EAC) equals actual incurred costs to date plus
remaining estimated costs (ETC). It does not include contingency.
Contractors develop an ETC at the lowest WBS level for determining
required resources for completing remaining tasks in the current working
schedule. Contractors use the latest direct and indirect rates
experienced, and may re-confirm supplier and subcontractor commitments
to accurately forecast the ETC. Revised costs and assumptions are
communicated to involved stakeholders. Compare the budget at completion
(BAC) to the EAC to derive the variance at completion (VAC).

A variety of statistical efficiency factors are available for assessing
completed work and evaluating performance trends. This enables valid and
objective future performance and EAC forecast calculations. Efficiency
factors complement project manager judgment and experience in assessing
project performance and forecasting future costs. EACs can be computed
automatically by most project management software based on monthly input
of actual and/or accrued costs. Reliable revised EACs can be generated
using mathematical algorithms if the original baseline estimates were
valid and minimal changes to original project assumptions have occurred.
When projects have not followed the original plan, EAC computation is
inappropriate and a detailed EAC is developed to include information not
considered in the original baseline assumptions.

Contractors document EAC development processes and criteria in the PCSD.
Procedures should include at least annual EAC reviews. The DOE reviews
and approves revised EACs, ETCs, assumptions, crosswalks, and other
required documentation.

## Risk Management

Perform risk management for identifying and mitigating inherent project
risks. Because projects contain uncertainty (e.g., changes to funding
profiles and/or technical and regulatory requirements), a risk
management strategy is necessary for managing projects responsibly.
Uncertainties can impact TPCs and/or schedules that are based on the
"most likely case". DOE M 413.3-1 states, \"risk management is a
structured, formal, and disciplined approach, focused on the necessary
steps and planning actions to determine and control risks to an
acceptable level.\" Begin risk management early in the project and
continue in a proactive manner throughout the project life cycle. The
following risk management steps are defined in Section 3.4.3:

-   Risk identification

-   Risk impact analysis and quantification

-   Risk mitigation strategies development

-   Risk monitoring

-   Risk documentation

Document the risk management process (including project risk management
philosophy, approach, objectives, and priorities) and risk analysis
results. Both can be included in the RMP (see Section 3.4.3). DOE may
direct EM projects to incorporate risk analysis results in TPCs.

Uncertainties derived from risk analysis are categorized as contingency
risk or programmatic risk. The relationship between contingency and
programmatic risk in evaluating risk is shown in Figure 7. Detailed risk
categorization depicted in Figure 7 and Figure 8 is not mandatory, but
contractors should consider this process for establishing a risk
framework.

[]{#__RefHeading___Toc81811806
.anchor}![](media/image15.wmf){width="5.999305555555556in"
height="3.48125in"}Figure 7: Simplistic Contingency and Programmatic
Risk Model

### Contingency

Contingency estimates are intended to cover inadequacies in basic known
scope estimates and resulting schedule delays. It accounts for
incomplete design, unforeseen and unpredictable conditions, or
uncertainties in project or subproject scope. For example, receiving
more transuranic (TRU) waste for characterization than planned and more
WIPP shipments than planned are instances of contingency risk, rather
than programmatic risk. Contingency associated with current FY
activities should be substantially less than out-year amounts since
near-term work is better defined than out-year work. Contingency is
calculated after base cost estimates are derived by determining risks
associated with achieving the work scope.

Figure 8 depicts that project efficiencies can accelerate schedule
completion and reduce costs, or conversely, that realized programmatic
risks could delay project schedule completion and increase costs.

[]{#__RefHeading___Toc81811807
.anchor}![](media/image16.wmf){width="5.999305555555556in"
height="3.7333333333333334in"}Figure 8: Estimating Assumptions

#### Cost Contingency

Cost contingency is DOE, not contractor, controlled. However,
contractors may hold and track contingency in a project management
control account. EPD approves contingency usage in accordance with
established change control thresholds. When DOE approves a BCP
requesting contingency use, the contingency budget is reduced and the
PMB increases based on the contractor's BCP justification. Changes are
reflected in a contractor contingency log.

#### Schedule Contingency

Schedule contingency is allotted time to compensate for potential
occurrence schedule delays. Schedule risk factors include technical data
gaps, infrastructure constraints, labor productivity levels, labor
availability, characterization and cleanup plan completeness, project
complexity, applicable technology availability, stakeholder involvement,
regulatory delays, and constructability issues. Schedule contingency
should explicitly address identified risks, especially those likely to
have the greatest project execution impact. Schedule contingency does
not cover schedule delays resulting from funding reductions.

Schedule contingency may be necessary when unrealistic or overly
optimistic activity duration estimates are used or too many activities
are scheduled in parallel rather than using more "finish to start"
activities.

The received contingency amount is commonly developed using Monte Carlo
simulation methods. To perform these simulations, activity duration
range estimates are developed for inclusion in the risk analysis. For
example, excavating contaminated soil may take two days for best case,
ten days for worst case, and five days for most likely case. The Monte
Carlo computer simulation performs basic scheduling calculation
iterations using activity duration values sampled from the range
estimates. An appropriate schedule contingency amount is allocated
during project execution as necessary. The contingency allocation is
managed and documented through approved baseline changes.

### Programmatic Risk

Programmatic risk covers work having a medium level of project
definition and out-of-scope work with low levels of project definition.
Programmatic risk is an estimate of potential new scope or additional
in-scope work and can equal more than 100% of the base cost estimates.

### Risk Management Plan (RMP)

The RMP is a required part of the project baseline documentation. It
documents the entire risk management process and includes the project\'s
risk management approach and project personnel's risk management roles
and responsibilities. It also includes the actual risk analysis results
(risk identification, impact, etc.).

The amount of detail in the RMP should be proportionate to the project's
potential risk consequences. Update the RMP with a frequency
commensurate with the magnitude of identified risks and the project
phase but no less frequently than annually.

Sections 3.4.3.1 through 3.4.3.5 present the steps necessary to develop
an RMP.

#### Risk Identification 

Identify possible risks by consulting key personnel; drawing upon
experiences; and evaluating current technical issues and alternatives,
regulatory/political climate, budget projections, value engineering
sessions, alternative analysis, and other relevant data sources.
Identify risks at activity levels or the level considered most
appropriate by the project team. Project team brainstorming sessions are
appropriate to initiate this process. The agreed upon list of identified
risks should be documented in the RMP. DOE M 413.3-1 suggests the use of
a "risk screening" checklist to assist in determining whether the
identified risk should be included in the risk management process.

#### Risk impact analysis and quantification

This risk management step is the most labor intensive. The DOE
encourages the use of tailoring in determining risk commensurate with
dollar value, complexity, and project visibility. Performing risk
analysis depends on project complexity and size. Avoid shortcuts where
negative risk potential is high.

Determine the probability of occurrence and cost, schedule, and
technical consequences if the risk occurs and provide yearly cost
consequences. Contractors may choose from several methods for
quantifying risks. These include probability multiplied by consequence,
simulation (such as Monte Carlo), expert opinion, and decision trees.
Substantiate risk estimates with reasonable assumptions.

DOE's October 2000 draft *Project Management Practice,* Section 8, Risk
Management, includes tables that describe typical criteria for defining
probabilities and consequences. These probability and consequence tables
are used with qualitative and quantitative methods of risk
quantification. *Project Management Practice* Section 8 includes a
sample risk assessment form for documenting the necessary risk
information in the RMP. The FPD may direct some ER projects to
incorporate risk analysis results into the TPC.

#### Risk mitigation strategies development 

The project team should select the risk mitigation, or handling,
strategy for each risk, identifying the optimum set of steps to balance
risk with other factors, such as cost and timeliness. Handling
strategies generally fall into one of four major categories (reduce or
mitigate, accept, avoid, or transfer). Document in the RMP these
selected strategies. See DOE's October 2000 draft *Project Management
Practice,* Section 8 for descriptions of these major categories.

#### Risk monitoring

Risk monitoring is the tracking of risk action items developed from risk
handling strategies, the evaluation of new risks, and the reevaluation
of changes in previously identified risks. Because the monitored
information and indicators are so diverse, appropriate tracking tools
will vary among projects. Define a tracking system and tracking tools
commensurate with project size and complexity. Unfavorable trends from
risk tracking indicate that risks were not fully or properly defined or
that mitigation strategies were not adequate. In such cases, reevaluate
the risk analysis. As the project matures, the project team must
reassess risks and strategies. Reevaluation frequency should correspond
to project change and uncertainty dynamics.

#### Risk documentation 

Risk documentation is the recording of the risk management steps in the
RMP. It describes the identified risk from cradle-to-grave. That is, the
RMP must describe the risk, estimated impacts, handling strategy, and
final disposition. Final disposition documentation includes whether the
risk was realized (and at what final cost or schedule impact compared
with the estimate), not realized, or the manner it was mitigated.

# BASELINE REVIEW

DOE reviews baselines to assure baseline[^1] integrity. Reviews are
performed minimally prior to each CD for assessing project readiness for
proceeding to the next phase. Reviews are also conduced, as necessary,
with significant baseline changes due to technical redirection, new
scope addition, large funding shifts, and other situations. See DOE M
413.3-1 and the *Baseline Review Handbook* for review typed descriptions
and review team selection.

Baselines are usually reviewed at the project location. The contractor
presents the baseline review team with a stand-alone package. The review
team will assess the scope, schedule, and cost adequacy without needing
to request additional information during the review. The *Baseline
Review Handbook* provides a checklist against which the review team will
evaluate the baseline. The baseline documentation should:

-   Include all baseline documents listed in Section 2

-   Be a stand-along information package

-   Be traceable to the previously approved baseline.

# BASELINE PERFORMANCE REPORTING

Baseline performance reporting is fundamental for determining how the EM
project is performing against the approved baseline. This section
describes the processes for assessing and reporting progress, including
various analyses and reporting requirements. Contractors should use this
handbook as a basis for preparing internal baseline analysis and
reporting procedures.

Contractors are required to status and report baselined activities to
DOE on a regular basis. Contractors are also required to report status
against appropriate milestones or performance measures. The DOE uses
IPABS-IS, specifically the Program Execution Module (PEM), as their
official HQ reporting mechanism. The PEM reports status at the project
baseline summary (PBS) level on planned cost, schedule, milestones, and
performance measures. The DOE also requires periodic performance
reporting and program reviews.

## Earned Value Principles 

DOE M 413.3-1 requires that projects implement an earned value
management system (EVMS). EVMS provides contractor and DOE managers with
accurate data for monitoring project execution. It provides the tools
for measuring work progress and facilitating sound DOE and contractor
decision-making. An EVMS objectively measures progress against baselined
scope, schedule, and cost. The EVMS may be tailored to the project size,
risk, and visibility. The contractor is responsible for implementing an
EVMS whose elements include:

-   Planning project work scope through project completion.

-   Integrating project scope, schedule, and cost objectives against
    which accomplishments may be measured.

-   Objectively assessing accomplishments at the work performance level.

-   Analyzing significant variances from the plan and forecasting
    impacts.

-   Providing data to higher levels for management decision-making and
    implementation of management actions.

Budget is established for each scheduled work elements and is referred
to as BCWS. As these work elements complete, their values are "earned"
and referred to as earned value or BCWP. Work progress is quantified,
and the earned value metric is compared with the actual expenditures for
performing the work (referred to as ACWP) and what was scheduled for
accomplishment (BCWS). Without earned value, only planned expenditures
(BCWS) and actual expenditures (ACWP) can be compared, which does not
indicate how much of the planned work was actually accomplished (BCWP).
Earned value provides the data for calculating variances and other
related performance indices, as discussed in the sections below.

## Reporting Elements

Table 6 lists contractor performance reporting elements. Reports may be
calculated for WBS levels on a current and cumulative to-date basis. The
reports are expressed in terms of dollars, time (days), performance or
output metrics, or milestones. Table 6 depicts some data elements and
dollarized variances.

### Actual Cost Accumulation

To ensure accurate cost reporting consistent with internal cost
reporting systems, the ACWP reported on the contractor cost performance
report (CPR) should be identical to the costs reported for that month in
DOE's Management Analysis Reporting System (MARS). The MARS is the
official DOE system for funds and cost status. Actual costs from MARS
are automatically downloaded as ACWP each month. Use a reconciliation
process to ensure that ACWP reporting and cost invoicing are
synchronized. Where actual costs reported and actual costs invoiced are
different due to report and invoice cycles timing, the costs in the next
reporting cycle should be adjusted to reflect accrued costs for the two
or more periods affected. The contractor should have an accrual process
in place and documented in the PCSD. Enter accrued costs into the MARS
in order to be used in the project control system reports. Explain
exceptions in contractors' monthly reporting to the EPD.

+-----------+---------------------------------+------------------------+
| **        | **Examples**                    | **Formula**            |
| Element** |                                 |                        |
+-----------+---------------------------------+------------------------+
| **Data    | -   Planned value (BCWS)        | Sum of BCWSs           |
| E         |                                 |                        |
| lements** | ```{=html}                      | Cumulative ACWP + ETC  |
|           | <!-- -->                        |                        |
|           | ```                             |                        |
|           | -   Earned value (BCWP)         |                        |
|           |                                 |                        |
|           | ```{=html}                      |                        |
|           | <!-- -->                        |                        |
|           | ```                             |                        |
|           | -   Actual costs (ACWP)         |                        |
|           |                                 |                        |
|           | ```{=html}                      |                        |
|           | <!-- -->                        |                        |
|           | ```                             |                        |
|           | -   Budget at Completion (BAC)  |                        |
|           |                                 |                        |
|           | -   Estimate at Completion      |                        |
|           |     (EAC)                       |                        |
+-----------+---------------------------------+------------------------+
| **D       | -   Schedule variance (SV)      | BCWP-BCWS              |
| ollarized |                                 |                        |
| Va        | ```{=html}                      | BCWP-ACWP              |
| riances** | <!-- -->                        |                        |
|           | ```                             | BAC-EAC                |
|           | -   Cost variance (CV)          |                        |
|           |                                 | BCWS-ACWP              |
|           | ```{=html}                      |                        |
|           | <!-- -->                        |                        |
|           | ```                             |                        |
|           | -   Variance at Completion      |                        |
|           |     (VAC)                       |                        |
|           |                                 |                        |
|           | ```{=html}                      |                        |
|           | <!-- -->                        |                        |
|           | ```                             |                        |
|           | -   Spend variance              |                        |
+-----------+---------------------------------+------------------------+
| *         | -   Schedule variance in days   | Planning (target)      |
| *Schedule |     (project schedule)          | schedule minus         |
| Variances |                                 | forecast (working)     |
| (days)**  |                                 | schedule               |
+-----------+---------------------------------+------------------------+
| **Pe      | -   Cost Variance %             | (BCWP-ACWP)/BCWP\*100  |
| rformance |                                 |                        |
| Indices** | -   Cost Performance Index      | BCWP/ACWP              |
|           |     (CPI)                       |                        |
|           |                                 | (BCWP-BCWS)/BCWS\*100  |
|           | -   Schedule Variance %         |                        |
|           |                                 | BCWP/BCWS              |
|           | -   Schedule Performance Index  |                        |
|           |     (SPI)                       | (BAC-                  |
|           |                                 | cumBCWP)/(BAC-cumACWP) |
|           | -   To-Complete Performance     |                        |
|           |     Index (TCPI)                |                        |
+-----------+---------------------------------+------------------------+
| **Pe      | Annualized EM metrics include:  |                        |
| rformance |                                 |                        |
| Metrics** | -   Waste retrieved             |                        |
|           |                                 |                        |
| *         | -   Treatment (amounts treated) |                        |
| *(outputs |                                 |                        |
| such as   | -   Storage (amounts stored or  |                        |
| volume    |     removed from storage)       |                        |
| and       |                                 |                        |
| count)**  | -   Disposal (amounts sent for  |                        |
|           |     disposal)                   |                        |
|           |                                 |                        |
|           | -   Number of shipments         |                        |
|           |                                 |                        |
|           | -   New waste generated         |                        |
|           |                                 |                        |
|           | -   Number of release sites     |                        |
|           |     complete or remedial        |                        |
|           |     actions complete            |                        |
+-----------+---------------------------------+------------------------+
| **Mil     | -   Budget Milestones           |                        |
| estones** |                                 |                        |
|           | -   Project start/complete      |                        |
| **(Who    |                                 |                        |
| does what | -   Critical Decisions          |                        |
| by what   |                                 |                        |
| date?)**  | -   Regulator or Enforceable    |                        |
|           |     Agreement Milestones        |                        |
|           |                                 |                        |
|           | -   Management Commitment       |                        |
|           |     Milestones                  |                        |
|           |                                 |                        |
|           | -   Other milestones            |                        |
+-----------+---------------------------------+------------------------+

[]{#__RefHeading___Toc81811815 .anchor}Table 6. Contractor Reporting
Elements

Figure 9 graphically depicts commonly used earned value performance
indicators.

![](media/image18.wmf){width="6.260236220472441in"
height="3.760236220472441in"}

[]{#__RefHeading___Toc81811808 .anchor}Figure 9: Performance Measurement
Parameters

### Variance Analysis and Reporting

The baseline is the basis for project performance analysis and
reporting. A thorough analysis provides the project management staff
with the following:

(1) Consistent assessment of accomplished work

(2) Information for deriving corrective actions when significant
    baseline variances, or deviations, develop

(3) Tools for forecasting future trends.

The analysis requires a review of actual costs an, earned value, and
schedule status against the PMB and baselined metrics and milestones.
Corrective action planning requires an understanding of the data
elements and variances for project recovery. Analysis results and
identified corrective actions enable the project management staff to
effectively control the project.

Variance analyses identify problems, determine reasons for plan
deviations, formulate corrective action plans, and report the results,
based on performance to date and estimates of future conditions.
Evaluate variances at the cost account level and summarize up through
the WBS. Variances exceeding approved reporting thresholds are
incorporated in the contractor's quarterly BPR.

Established variance thresholds enable management to focus attention and
resources on the most significant variances. Contractor project managers
should ensure that thorough performance analyses occur and include
identification of:

-   Variance causes

-   Cost, schedule, and regulatory project impacts

-   Recovery prognosis (planned corrective actions and trending
    analyses).

Contractors prepare and maintain a reporting and analysis procedure for
EPD review, comment, and concurrence, which is normally included in the
PCSD. At a minimum, these procedures should be consistent with this
handbook and reflect unique project-specific conditions. Contractors
establish variance thresholds for determining and reporting significant
cost and schedule exceptions. These variance thresholds should be more
stringent than the FPD thresholds. Table 7 includes example contractor
variance thresholds for preparing BPR variance analyses.

Variances exceeding DOE-established thresholds require analysis and
appropriate corrective action. DOE reporting thresholds may be adjusted
based on contractor performance and reissued to the contractors.
Negative variances can be carried over from one fiscal year to the next
without requiring rebaselining.

If DOE approved reporting thresholds have *not* been developed, the
contractor recommends thresholds for DOE review. If the contractor finds
these approved reporting thresholds to be inappropriate following
several reporting cycles, the contractor formally requests deviations
from these thresholds, which includes the reasons for the requests. The
FPD makes a determination on the request and provides a written response
to the contractor.

+-----+---------+-------------+-------------+-------------+----------+
| **  | **V     | **Current   | **Year to   | *           | **       |
| WBS | ariance | Reporting   | Date**      | *Cumulative | Variance |
| L   | Type**  | Period (3   |             | (Project)   | at       |
| eve |         | months)**   |             | to Date**   | Comp     |
| l** |         |             |             |             | letion** |
+-----+---------+-------------+-------------+-------------+----------+
| 8   | CV & SV | ± 10% or    | ± 20% or    | ± 20% or    | ± 20% or |
|     |         | \$50K       | \$200K      | \$500K      | \$1M     |
|     |         |             |             |             |          |
|     |         | (Whichever  | (Whichever  | (Whichever  | (W       |
|     |         | is lower)   | is lower)   | is lower)   | hichever |
|     |         |             |             |             | is       |
|     |         |             |             |             | lower)   |
+-----+---------+-------------+-------------+-------------+----------+
| 8   | S       | 1 month     | 2 months or | 3 months or | 6 months |
|     | chedule |             | any delay   | any delay   | or any   |
|     | (Time)  |             | that slips  | that slips  | delay    |
|     |         |             | activity    | activity    | that     |
|     |         |             | into a      | into a      | slips    |
|     |         |             | new FY      | new FY      | activity |
|     |         |             |             |             | into a   |
|     |         |             |             |             | new FY   |
+-----+---------+-------------+-------------+-------------+----------+

[]{#__RefHeading___Toc81811816 .anchor}Table 7. Example Reporting
Thresholds

#### Schedule Variance (Time or Dollars)

A SV is defined as BCWP minus BCWS and is normally expressed in dollars.

**SV = BCWP -- BCWS**

Express SV in terms of time or dollars, depending on whether the
planning and forecast schedules or BCWS and BCWP are compared. When the
variance is expressed in terms of time, the project management and
project control staff evaluate it relative to the project schedule. This
evaluation quantifies the extent of the schedule deviation, analyzes the
schedule deviation in relation to the critical path, and determines
whether variance analysis is warranted.

Whether the variance is expressed in terms of dollars, it is referred to
and defined as BCWP less BCWS. If reporting thresholds are exceeded for
either time or dollars, the variance analysis must include the
following:

-   ***Net Variance.*** The variance value in dollars or days.

-   ***Cause.*** Explain the specific variance causes. Examples of
    causes include delays from vendors, rework, unforeseen complexities,
    tooling problems, increased/reduced productivity/efficiency of labor
    resources, or insufficient resources.

-   ***Impact.*** Address the impact that a schedule slippage will have
    on other tasks or baseline elements within the project, i.e.,
    project end date, performance measures, milestones, cost, and
    stakeholders/regulators. Potential cost escalation resulting from
    end date slippage is determined. The CAM addresses any current or
    potential problem areas for possible corrective action.

-   ***Corrective action.*** After the cause and impact are determined,
    formulate corrective action plans for mitigating any unfavorable
    variance impacts. The CAM reviews and approves these plans. The
    plans include a detailed explanation of the corrective action, how
    the action is expected to impact the variance and other baseline
    elements, who will take the action, and a date by which the action
    is completed. These corrective action plans also address required
    interfaces with other organizations.

    []{.mark}

    Related performance indices are the SV percentage and SPI, which are
    defined below. An SPI of one or greater indicates that the project
    is on, or ahead of, schedule.

    **SV% = (BCWP-BCWS)/BCWS\*100**

    **SPI = BCWP/BCWS**

#### Cost Variance

CV is defined as BCWP minus ACWP and is expressed in dollars and by cost
element.

**CV = BCWP -- ACWP**

If reporting thresholds are exceeded, the variance analysis must include
the following:

-   ***Net Variance.*** The variance value in dollars.

-   ***Cause.*** Explain the specific variance causes***.*** Each cost
    element is reviewed for potential contribution to the overall
    variance. Some of the causes of the variance may not be within the
    control of team leaders or functional managers, such as allocable
    costs. Contributors to a CV may include labor rate differences,
    manpower levels, attrition, or material price.

-   ***Impact.*** The impact to the calculated EAC is identified by cost
    element. The cost performance index (CPI) may be used to
    statistically determine a revised EAC, but this result does not
    alleviate the requirement to perform an independent assessment of
    the remaining effort.

-   ***Corrective action.*** Consider work-around or corrective action
    plans for achieving the approved budget. This may involve
    reallocating resources or developing another approach. The plan
    contains a detailed explanation of what corrective action is being
    or will be taken, how the action is expected to impact the CV, how
    the corrective action will be implemented, and when it will become
    effective. The CAM reviews and approves the corrective action plan.

    Related performance indices are the CV percentage and CPI, which are
    defined below. A CPI of one or greater indicates that the project is
    at or under budget.

    **CV% = (BCWP-ACWP)/BCWP\*100**

    **CPI = BCWP/ACWP**

### Periodic Reports

Contractor reporting requirements come from several DOE organizations,
e.g., DOE/NNSA-HQ, EM, and EPD. The requirements share some common
attributes and are listed below.

-   Earned value and completed metrics

-   Cost and schedule variances

-   Recovery plans for getting back on track

-   Revised ETCs

-   Identified cost and schedule efficiencies

-   Newly identified risks and status of previously identified risks

-   Log of internal and external baseline changes

-   Contingency log (for those projects which include contingency in
    baseline)

    FPDs also require periodic status presentations from the
    contractors.

    []{.mark}

    Table 8 includes some of the general requirements and the vehicles
    for meeting these requirements.

+-------------------+----------------------+---------------------------+
| **Owner**         | **Requirement**      | **Met through:**          |
+-------------------+----------------------+---------------------------+
| DOE-HQ/OECM       | -   DOE M 413.3-1    | -   BPR                   |
|                   |                      |                           |
|                   | -   PARS             | -   Quarterly status      |
|                   |                      |     presentations to DOE  |
|                   |                      |                           |
|                   |                      | -   PARS entries via      |
|                   |                      |     IPABS-IS              |
+-------------------+----------------------+---------------------------+
| DOE-HQ/EM         | -   IPABS            | -   IPABS-IS              |
|                   |                      |                           |
|                   | -   EM Corporate     |                           |
|                   |     Performance      |                           |
|                   |     Measures         |                           |
+-------------------+----------------------+---------------------------+
| FPD/EPD           | -   *PC Handbook*    | -   BPR                   |
|                   |     (this document)  |                           |
|                   |                      | -   Quarterly status      |
|                   |                      |     presentations to      |
|                   |                      |     FPD/EPD               |
+-------------------+----------------------+---------------------------+

[]{#__RefHeading___Toc81811817 .anchor}Table 8. Reporting Requirements
and How They are Met

#### IPABS-IS PEM

The IPABS-IS PEM requires monthly updates. Check the IPABS-IS manual for
the most current and complete information on the PEM's content, format,
due dates, and completion instructions. The IPABS-IS users' manual is
available at the IPABS-IS website, <https://ipabs-is.em.doe.gov/ipabs/>
under the report module link. The NNSA SC Administrator can arrange for
an IPABS-IS login identification and password.

As of March 2004, PEM monthly requirements include the following
information collected at the PBS level:

-   PARS field updates for BCWP and ACWP (See PARS requirement below)

-   Corporate Performance Measures updates for PBSs with these metrics

-   Milestones for all PBSs with HQ-level milestones

-   Milestones status and variance narrative for HQ-level milestones

-   Projected carryover and project unobligated funding at FY end

DOE O 413.3-1 requires that projects with a TPC of \$5 million or more
provide a monthly project status using OECM's PARS. For EM funded
projects, PARS data are entered into designated fields in IPABS-IS in
order to avoid duplicate data entry. PARS data for EM is spread
throughout the IPABS PEM. The purpose of PARS is delivering reliable,
accurate, complete, and timely project status and analysis information
to DOE senior managers and key program stakeholders. The FPD is
responsible for this update requirement. The data must be entered
electronically no later than 14 days following receipt of the
contractor's monthly progress reports. Explain any missing data. Fields
required for PARS validation should not be left blank.

The information for each record consists of three types of data.

1.  ***Profile data.*** This data are entered one time and is used for
    identifying the project, points of contact, and other identifying
    information. Nearly static data are found in the PEP and the project
    data sheet (if used). Enter this data in the General Information Tab
    of the PEM.

2.  ***Event data.*** These data are associated with the project life
    cycle, such as decision data, milestone, budget, funding, and other
    information, and changes infrequently.

3.  ***Status and performance data.*** This information is available
    monthly from the contractor's project control system (and other
    sources) and provides actual progress and overall project status.
    Enter this data in the Cost/Schedule, Performance Measures, and
    Milestones tabs of the PEM.

#### Baseline Performance Report (BPR)

Contractors submit the quarterly BPR. It is the most comprehensive
contractor required report. Instructions and report contents are listed
in Appendix C, BPR Template. However, BPR format and contents should be
approved by EPD prior to implementation. The report is submitted
quarterly and is due to EPD no later than the 20^th^ calendar day of the
month following the end of the fiscal quarter. If the 20^th^ falls on a
Saturday or Sunday, it is due on the following Monday.

#### EM Corporate Performance Measures (Gold Chart)

The EM Corporate Performance Measures are the performance measures
selected by EM as part of their "Corporate Performance Measures" in the
Congressional Budget Request for a particular year. Enter target values
in the "Budget Formulation" module. These are not editable in IPABS-PEM.
However, actuals are statused monthly via IPABS-PEM under the
"Performance Measures" tab. The "Performance Measures" tab collects
quantities of achieved performance measures for each project or PBS
against the planned quantities. The FPD has overall responsibility for
these updates. Examples of the types of metrics collected are cubic
meters of transuranic waste shipped for disposal at WIPP and numbers of
remediations completed. Information on updating performance measures can
be found in Chapter 2 of the IPABS Users Manual.

The IPABS report module produces a report of these performance measures,
which has become known as the "Gold Chart". A portion of the Gold Chart
from the IPABS-IS report module is displayed in Table 9 below.

[]{#__RefHeading___Toc81811818
.anchor}![](media/image19.wmf){width="5.625694444444444in"
height="1.7513888888888889in"}Table 9. Gold Chart Excerpt (taken
directly from IPABS-IS)

# BASELINE MAINTENANCE

This section describes baseline change control rules and processes,
including baseline change descriptions, control thresholds, baseline
change control boards (BCCBs), responsibilities, and contractor change
control procedure requirements. Project baselines approved by DOE are
managed using a rigorous change control system that reflects current and
future changes. Baseline change proposals (BCPs) describe changes to the
last approved baseline, reasons for changes, and major effects of the
changes. All baseline documents must be maintained to support future
baseline reviews. Contractors should also have a documented procedure
for archiving obsolete documents.

## Baseline Change Control Objectives

Baseline changes are inevitable due to uncertainties in scope, funding,
schedule, and costs. After baselines are approved, contractors must
monitor performance regularly to determine if events require baseline
adjustments and to identify, document, and communicate baselined work
scope changes. Baseline change control objectives are:

-   Provide EPD and contractors a consistent, formal decision-making
    process for defining, documenting, evaluating, approving, and
    incorporating baseline changes throughout project life cycles.

-   Ensure that EM project baselines are accurately and promptly
    maintained without integrity loss.

-   Identify changes as they occur so cost and schedule impacts can be
    evaluated early.

-   Ensure communication between EPD, contractors, and contractor teams

-   Ensure approved BCP procedures used for processing changes.

## BCP Best Practices

Apply the following rules when preparing BCPs:

-   Do not make retroactive changes. Submit proposed changes to the FPD
    for endorsement 30 to 45 days before the change approval is
    required.

-   Do not make changes eliminating cost and/or SVs. Variances must be
    continuously reported until the task is completed or re-planned
    through BCP submittal and approval.

-   Do no implement changes without verification of sufficient funding
    availability.

-   Do not implement changes without BCP approval.

-   Do not propose multiple, smaller BCPs to remain under specified
    thresholds.

-   BCPs should generally involve only baseline change, ensuring
    traceability for each subject. However, multiple changes may be
    submitted in one BCP if justification and cost and schedule impacts
    for each subject are included. Multiple changes in one BCP may be
    appropriate if:

```{=html}
<!-- -->
```
-   Escalation and burden rate changes affect all WBSs.

-   Revised regulator requirements affect all cleanup levels.

## Baseline Change Types

Baseline changes are either DOE directed or contractor initiated.

-   ***DOE Directed Change.*** Directed changes are imposed on projects
    by authority or command, with direction to implement. Authority may
    be in the form of congressional appropriations, HQ-approved funding
    changes, Program Secretarial Officer (PSO) direction, new or revised
    policy directives, regulatory or statutory requirements, or FPD.
    Contractors are required to prepare BCPs for FPD submittal defining
    the cost, schedule, and technical impacts. Directed changes are not
    used for correcting CVs or SVs. FPDs are usually notified of
    directed changes from HQ and are responsible for providing necessary
    written guidance for implementing changes to contractors.

-   ***Contractor Initiated Change.*** Contractors initiate most changes
    based on schedule, budget, or technical work scope changes and
    determining breached control levels. Contractor initiated changes
    shall not be used as a means of correcting CVs or SVs.

BCPs are categorized by urgency, as described below.

-   ***Emergency change.*** A change needed for preventing
    life-threatening situations. Emergency changes are implemented
    immediately (or as soon as practicable) to prevent further life
    threatening or environmental safety and health issues. FPDs or
    designees must be informed of emergency conditions immediately.
    Normally, BCPs documenting cost, schedule, and technical baseline
    changes are issued after emergency changes are implemented.

-   ***Priority change.*** A change correcting a potentially unsafe or
    hazardous condition, preventing possible injury to personnel or
    immediate damage to plant/equipment, enabling significant cost
    reductions, or avoiding significant cost increases based on an
    immediate decision. Priority changes also result from regulatory
    compliance orders or enforcement actions. Priority changes are
    usually implemented before initiating a formal BCP. FPD or designees
    must approve priority changes in advance. BCP documentation is
    processed when received.

-   ***Routine changes.*** Changes required as part of project
    management. Routine changes can affect cost, schedule, or technical
    baseline elements. They may be required for reducing cost or
    schedule, including improved technology, or for other project
    enhancements. Routine changes are used for correcting document
    errors, adding clarifying notes, or substituting alternate baseline
    documentation that does not affect the baseline cost, schedule, or
    technical elements.

## Baseline Change Control Process

BCPs must be endorsed by each lower-level BCCB before consideration by
the highest-level BCCB from which approval must be received. A BCP must
be approved by the BCCB corresponding to thresholds at Levels 1 through
4. The four management control levels for projects are described in DOE
M 413.3-1 and include:

-   Level 1, Under Secretary/NNSA Administrator

-   Level 2, Assistant Secretary (PSO)/Assistant Administrator

-   Level 3, Federal Project Director

-   Level 4, Contractor BCCB, contractor organization

In general, baseline changes made by contractors, whether directed or
project initiated, are reviewed and approved by DOE for Levels 1, 2, and
3. Contractors may make Level 4 changes without receiving DOE review and
approval. Figure 10 indicates the baseline change approval process flow.

![](media/image20.wmf)

[]{#__RefHeading___Toc81811809 .anchor}Figure 10. Baseline Change
Control Hierarchy

### Contractor Baseline Change Process

Contractors prepare and maintain baseline change control procedures in
PCSDs or PEPs. Before implementation, FPDs must approve change
processes, which at a minimum should include:

-   FPD established Level 3 baseline change control thresholds.

-   BCCB member designation and responsibilities.

-   Procedures.

-   Standard processing forms, including change control logs.

-   Record-keeping system description.

FPDs determine change control Level 3, triggering approval authority.
Contractors establish thresholds for local (Level 4) change control.

Contractor BCCBs approve all directed or project-initiated BCPs before
submittal to the FPD BCPs are submitted to FPDs regardless of whether
changes require FPD approval (Level 3 breaches) or EM-1 and ESAAB
(levels 1 and 2 breaches) approval. Additional EM-1 and ESAAB
requirements are described in sections 6.4.3 and 6.4.4.

Contractors prepare BCPs in documents explaining change causes, impacts
(cost, schedule, technical, regulatory), and before and after cost plans
and Gantt charts. Generally, the elements listed in Appendix C, BCP
Template, should be included. BCP supporting documentation must contain
regulator concurrence if a regulatory milestone is impacted.

All contractor change control activities must be communicated to FPDs
through contractor change control logs submitted quarterly in the BPR.
Contractors assign BCP numbers and include the title and cost, scope,
and schedule impacts, and disposition (approved, not approved, pending,
assigned action items). Yearly and total cost impacts also should be
included.

Under routine circumstances, contractors submit BCPs requesting baseline
change approvals for changes breaching level 3 thresholds. Requests
should be made as far in advance of the proposed start as possible, (30
to 45 days) to allow FPD review and processing time.

Contractors incorporate approved BCP changes into project baselines
before the end of the next accounting month and in the next monthly
report or notify the FPD if unable to meet the monthly reporting
deadline.

### Federal Project Director Baseline Change Process

FPD options for evaluating BCPs, all of which may involve program
analyst assistance, include:

-   Assembling a BCCB composed of technical and project control members
    for either a specific BCP or group of BCPs; the degree of formality
    is dependent upon the FPD.

-   Personally reviewing the BCP.

-   Requesting informal review by a few individuals.

FPDs and EPD individuals reviewing BCPs use the BCP Review Checklist
included in Appendix D for identifying missing or incomplete items.
Contractors are required to provide additional information requested by
FPDs in a timely fashion. FPDs provide contractors with written
documentation of approval or disapproval.

[]{.mark}

FPDs can issue contractors temporary authorization with a not-to-exceed
funding limit, so that work can proceed before BCP approval. Emergency
changes may be approved by telephone or fax, followed by contractor
preparation and submittal of emergency BCP documentation before the next
accounting month.

### EM-1 Baseline Change Process

In September, FPDs indicate agreement with IPABS baseline information
through IPABS-IS Gen 2 report signoff. Ongoing baseline changes are not
immediately reflected in IPABS. EM requires contractor change control
log usage for documenting changes between FPD approved Gen 2 reports.

FPDs may delegate change control log reporting to EPD program analysts.
PMAT requires the logs at least five working days before each quarterly
review. The PMAT Team Leader forwards logs quarterly to EM, including
all changes (even Level 4). Program analysts may use existing logs if
all required BCP log template fields are included.

Changes breaching level 2 thresholds are documented through the IPABS
Baseline Change Tool (BCT). The thresholds relate to EM's configuration
control criteria, which are changes to:

-   Performance Management Plan

-   Cleanup end states/end points

-   EM Corporate Performance Metrics (Gold Chart)

-   Performance Measures/Performance Incentives

-   Annual baseline cost

-   Life-cycle cost

-   PBS structure

-   WIPP transportation baseline

The IPABS Manual provides instructions for electronically documenting
the baseline change, roles and responsibilities, and schedule
information for using the BCT.

### ESAAB Baseline Change Process

Level 1 breaches as described in the Manual are

  ---------------------- ------------------------------------------------
  **Technical**          Any change in scope and/or performance that
                         affects mission need requirements or is not in
                         conformance with current approved Project Data
                         Sheet.

  **Schedule**           6 months or greater increase (cumulative) in the
                         original project completion date.

  **Cost**               Increase in excess of \$25M or 25% (cumulative)
                         of the original cost baseline.
  ---------------------- ------------------------------------------------

The Manual also mentions that Congress must be notified if the project
change results in a 25 percent increase in the total project cost, the
same cost threshold for which ESAAB requires approval authority.

[]{.mark}

[]{#__RefHeading___Toc81811793 .anchor}Appendix A. Crosswalk - Project
Controls Handbook to DOE M 413.3-1

+-------------------------------------+--------------------------------+
| **DOE M 413.3-1**                   | **Project Control Handbook**   |
+=====================================+================================+
| FOREWORD                            |                                |
+-------------------------------------+--------------------------------+
| SECTION I: REQUIREMENTS             |                                |
+-------------------------------------+--------------------------------+
| 1\. ACQUISITION MANAGEMENT SYSTEM\  | Section 2.14, Acquisition Plan |
| OVERVIEW 1-1                        | or Procurement Plan            |
+-------------------------------------+--------------------------------+
| 1.1 Introduction and Key Terms      |                                |
+-------------------------------------+--------------------------------+
| 1.2 Acquisition Management System   |                                |
+-------------------------------------+--------------------------------+
| 1.3 Program and Project             |                                |
| Relationship                        |                                |
+-------------------------------------+--------------------------------+
| 1.4 Planning, Programming,          |                                |
| Budgeting, and Evaluation Process   |                                |
+-------------------------------------+--------------------------------+
| 2\. REQUIREMENTS                    |                                |
+-------------------------------------+--------------------------------+
| 2.1 Introduction and Key Terms      | Appendix F, Glossary           |
+-------------------------------------+--------------------------------+
| 2.2 Requirements and Authorities    | Section 1.1, Purpose           |
+-------------------------------------+--------------------------------+
| 2.3 Risk Management                 | Section 2.9 RMP; Section 3.4,  |
|                                     | Risk Management                |
+-------------------------------------+--------------------------------+
| 2.4 Change Control                  |                                |
+-------------------------------------+--------------------------------+
| 2.5 Performance Baseline Deviation  |                                |
+-------------------------------------+--------------------------------+
| 2.6 Tailoring                       |                                |
+-------------------------------------+--------------------------------+
| 2.7 Other Requirements              |                                |
+-------------------------------------+--------------------------------+
| 3\. ROLES AND RESPONSIBILITIES      |                                |
+-------------------------------------+--------------------------------+
| 3.1 Introduction and Key Terms      |                                |
+-------------------------------------+--------------------------------+
| 3.2 Key Roles and Responsibilities  |                                |
+-------------------------------------+--------------------------------+
| 3.3 Federal Project Directors and   |                                |
| Contractor Project Managers         |                                |
+-------------------------------------+--------------------------------+
| 3.4 Integrated Project Teams        | Section 1.3, EM Projects       |
|                                     | Planning Framework             |
+-------------------------------------+--------------------------------+
| 3.5 Energy Systems Acquisition      |                                |
| Advisory Board                      |                                |
+-------------------------------------+--------------------------------+
| SECTION II: GUIDANCE                |                                |
+-------------------------------------+--------------------------------+
| 4\. INITIATION PHASE                | Section 1.3, EM Projects       |
|                                     | Planning Framework             |
+-------------------------------------+--------------------------------+
| 4.1 Introduction                    |                                |
+-------------------------------------+--------------------------------+
| 4.2 Strategic Planning              |                                |
+-------------------------------------+--------------------------------+
| 4.3 Present Performance Assessment  |                                |
+-------------------------------------+--------------------------------+
| 4.4 Performance Requirements        |                                |
| Analysis                            |                                |
+-------------------------------------+--------------------------------+
| 4.5 Alternatives To Capital Assets  |                                |
+-------------------------------------+--------------------------------+
| 4.6 Mission Need Statement          |                                |
+-------------------------------------+--------------------------------+
| 4.7 Tailoring                       |                                |
+-------------------------------------+--------------------------------+
| 5\. DEFINITION PHASE                | Section 1.3, EM Projects       |
|                                     | Planning Framework             |
+-------------------------------------+--------------------------------+
| 5.1 Introduction and Key Terms      |                                |
+-------------------------------------+--------------------------------+
| 5.2 Conceptual Design               |                                |
+-------------------------------------+--------------------------------+
| 5.3 Risk Analysis                   |                                |
+-------------------------------------+--------------------------------+
| 5.4 Acquisition Strategy            |                                |
+-------------------------------------+--------------------------------+
| 5.5 Estimating Costs                |                                |
+-------------------------------------+--------------------------------+
| 5.6 Project Execution Plan          |                                |
+-------------------------------------+--------------------------------+
| 6\. EXECUTION PHASE                 | Section 1.3, EM Projects       |
|                                     | Planning Framework             |
+-------------------------------------+--------------------------------+
| 6.1 Introduction and Key Terms      |                                |
+-------------------------------------+--------------------------------+
| 6.2 Preliminary Design              |                                |
+-------------------------------------+--------------------------------+
| 6.3 Critical Decision-2, Approve    |                                |
| Acquisition Performance Baseline    |                                |
+-------------------------------------+--------------------------------+
| 6.4 Final Design                    |                                |
+-------------------------------------+--------------------------------+
| 6.5 Scheduling and Controlling      |                                |
+-------------------------------------+--------------------------------+
| 6.6 Configuration Management        |                                |
+-------------------------------------+--------------------------------+
| 6.7 Critical Decision-3, Approve    |                                |
| Start of Construction               |                                |
+-------------------------------------+--------------------------------+
| 6.8 Execution or Implementation     |                                |
+-------------------------------------+--------------------------------+
| 7\. TRANSITION/CLOSEOUT PHASE       | Section 1.3, EM Projects       |
|                                     | Planning Framework             |
+-------------------------------------+--------------------------------+
| 7.1 Introduction                    |                                |
+-------------------------------------+--------------------------------+
| 7.2 Transition and Turnover         |                                |
+-------------------------------------+--------------------------------+
| 7.3 Checkout, Testing, and          |                                |
| Commissioning                       |                                |
+-------------------------------------+--------------------------------+
| 7.4 Knowledge Transfer              |                                |
+-------------------------------------+--------------------------------+
| 7.5 Documentation                   |                                |
+-------------------------------------+--------------------------------+
| 7.6 Lessons Learned                 |                                |
+-------------------------------------+--------------------------------+
| 7.7 Logistics                       |                                |
+-------------------------------------+--------------------------------+
| 7.8 Readiness Reviews               |                                |
+-------------------------------------+--------------------------------+
| 7.9 Critical Decision-4, Approve    |                                |
| Start of Operations or Project      |                                |
| Closeout                            |                                |
+-------------------------------------+--------------------------------+
| 7.10 Project Closeout               |                                |
+-------------------------------------+--------------------------------+
| 8\. PROJECT BUDGET DEVELOPMENT      |                                |
+-------------------------------------+--------------------------------+
| 8.1 Introduction and Key Terms      |                                |
+-------------------------------------+--------------------------------+
| 8.2 Planning, Programming,          |                                |
| Budgeting, and Evaluation           |                                |
+-------------------------------------+--------------------------------+
| 8.3 Constructing a Defensible       |                                |
| Budget Request\                     |                                |
| 8-1                                 |                                |
+-------------------------------------+--------------------------------+
| 8.4 Appropriations                  |                                |
+-------------------------------------+--------------------------------+
| 8.5 Application of Inflation to the |                                |
| Financial Forecast                  |                                |
+-------------------------------------+--------------------------------+
| 8.6 Project Engineering and Design  |                                |
| Funds                               |                                |
+-------------------------------------+--------------------------------+
| 8.7 Key Documents                   |                                |
+-------------------------------------+--------------------------------+
| 9\. PROJECT REVIEWS                 | Section 4.0, Baseline Review   |
+-------------------------------------+--------------------------------+
| 9.1 Introduction                    |                                |
+-------------------------------------+--------------------------------+
| 9.2 Project (Program) Management    |                                |
| Reviews                             |                                |
+-------------------------------------+--------------------------------+
| 9.3 Independent Reviews             |                                |
+-------------------------------------+--------------------------------+
| 9.4 Specific Types of Project       |                                |
| Reviews                             |                                |
+-------------------------------------+--------------------------------+
| 9.5 Technical Review                |                                |
+-------------------------------------+--------------------------------+
| 9.6 Operational Readiness Review    |                                |
+-------------------------------------+--------------------------------+
| 10\. PERFORMANCE BASELINE           | Section 1.3.2, Performance     |
|                                     | Baseline/Performance           |
|                                     | Measurement Baseline           |
+-------------------------------------+--------------------------------+
| 10.1 Introduction and Key Terms     |                                |
+-------------------------------------+--------------------------------+
| 10.2 Key Parameters                 |                                |
+-------------------------------------+--------------------------------+
| 10.3 Performance Baseline           | Section 2.0, Baseline          |
| Preparation                         | Documents                      |
|                                     |                                |
|                                     | Section 3.0 Baseline           |
|                                     | Development                    |
+-------------------------------------+--------------------------------+
| 10.4 Performance Baseline Deviation |                                |
+-------------------------------------+--------------------------------+
| 11\. CHANGE CONTROL                 |                                |
+-------------------------------------+--------------------------------+
| 11.1 Introduction and Key Terms     |                                |
+-------------------------------------+--------------------------------+
| 11.2 Controlling Changes            |                                |
+-------------------------------------+--------------------------------+
| 12\. EARNED VALUE MANAGEMENT        | Section 5.1, Earned Value      |
|                                     | Principles                     |
+-------------------------------------+--------------------------------+
| 12.1 Introduction                   |                                |
+-------------------------------------+--------------------------------+
| 12.2 Management Need                |                                |
+-------------------------------------+--------------------------------+
| 12.3 Management Systems             |                                |
+-------------------------------------+--------------------------------+
| 12.4 Industry Standard              |                                |
+-------------------------------------+--------------------------------+
| 12.5 System Design and Development  |                                |
+-------------------------------------+--------------------------------+
| 12.6 Earned Value Management        |                                |
| Implementation                      |                                |
+-------------------------------------+--------------------------------+
| 12.7 Criteria Concept               |                                |
+-------------------------------------+--------------------------------+
| 12.8 Performance Measurement        |                                |
| Baseline                            |                                |
+-------------------------------------+--------------------------------+
| 13\. INTEGRATED SAFETY,             | Section 2.3, PEP               |
| ENVIRONMENTAL, QUALITY ASSURANCE,   |                                |
| AND SAFEGUARDS AND SECURITY         |                                |
+-------------------------------------+--------------------------------+
| 13.1 Safety                         |                                |
+-------------------------------------+--------------------------------+
| 13.2 Environment                    |                                |
+-------------------------------------+--------------------------------+
| 13.3 Quality Assurance              |                                |
+-------------------------------------+--------------------------------+
| 13.4 Source Documents               |                                |
+-------------------------------------+--------------------------------+
| 13.5 Safeguards and Security        |                                |
+-------------------------------------+--------------------------------+
| 14\. RISK MANAGEMENT                | Section 3.4, Risk Management   |
+-------------------------------------+--------------------------------+
| 14.1 Introduction                   |                                |
+-------------------------------------+--------------------------------+
| 14.2 Characteristics of Effective   |                                |
| Risk Management                     |                                |
+-------------------------------------+--------------------------------+
| 14.3 Risk Management Process        |                                |
+-------------------------------------+--------------------------------+
| 14.4 Risk Identification,           |                                |
| Assessment and Mitigation           |                                |
+-------------------------------------+--------------------------------+
| 14.5 Risk Management Plan           |                                |
+-------------------------------------+--------------------------------+
| 15\. CONTRACTING AND CONTRACT       |                                |
| MANAGEMENT                          |                                |
+-------------------------------------+--------------------------------+
| 15.1 Introduction and Key Terms     |                                |
+-------------------------------------+--------------------------------+
| 15.2 Fundamental Principles         |                                |
+-------------------------------------+--------------------------------+
| 15.3 U.S. Government Contract       |                                |
+-------------------------------------+--------------------------------+
| 15.4 Acquisition Planning           | Section 2.14, Acquisition Plan |
|                                     | or Procurement Plan            |
+-------------------------------------+--------------------------------+
| 15.5 Solicitation Planning          |                                |
+-------------------------------------+--------------------------------+
| 15.6 Evaluation and Selection       |                                |
+-------------------------------------+--------------------------------+
| 15.7 Contract Management and        |                                |
| Administration                      |                                |
+-------------------------------------+--------------------------------+
| 15.8 Contract Closeout              |                                |
+-------------------------------------+--------------------------------+
| 15.9 Performance-Based Contracting  |                                |
+-------------------------------------+--------------------------------+
| 15.10 Lessons Learned               |                                |
+-------------------------------------+--------------------------------+
| 16\. SPECIAL CONSIDERATIONS         |                                |
+-------------------------------------+--------------------------------+
| 16.1 Introduction                   |                                |
+-------------------------------------+--------------------------------+
| 16.2 Design Build                   |                                |
+-------------------------------------+--------------------------------+

[]{#__RefHeading___Toc81811794 .anchor}Appendix B. TSD Instructions and
Example

This appendix presents annotated guidance for developing TSDs and an
example TSD. TSDs include lifecycle task scope, schedule, costs,
metrics, FTEs, assumptions, and risks. Sufficient detail is included
enabling an independent but knowledgeable reviewer to assess its
reasonableness relative to scope, schedule, and cost. The collection of
project TSDs should encompass the project lifecycle scope, cost, and
schedule.

**Annotated Guidance for TSD Format and Content**

The following items correspond to the TSD form and provide instructions
for recording the correct information:

**[WBS Number/Title]{.underline}:** List the appropriate WBS or WBSs and
title.

**[Date Prepared/Updated]{.underline}:** Present the date the TSD was
prepared or last updated.

**[Control Account Manager/Organization]{.underline}:** Provide the
control account manager\'s name and organization.

**[FYXX Performance Measures]{.underline}:** List the specific
contractual performance measures for the current FY. (This field will
need to be updated annually.)

**[Planned Start/Completion]{.underline}:** Indicate task starting and
ending month and FY. Include both EM and non-EM portions, where
appropriate.

**[Cost Plan/FTEs]{.underline}:** Provide a task life-cycle budget and
FTE summary table, broken out separately for EM and non-EM. Break out
overhead costs (costs required to \"keep the lights on\") as a
percentage of the total costs.

**[Cost Estimating Methodology]{.underline}:** Identify the cost
estimating methodologies used, such as expert opinion, parametric,
specific analogy, bottom-up, cost review and update, and trend analysis.
One or more estimating methodologies may be used.

**[Scope of Work and Resource Assignments]{.underline}:**

This section consists of two subsections, \"Site Status\" and \"Specific
Work Elements.\" Site Status summarizes history so the reviewer can
evaluate the proposed task relative to what preceded it. "Specific Work
Elements" provide the work description, organizations involved,
regulatory drivers, costs, and other pertinent information required for
project understanding. Organize the scope by WBS to provide a tiered
description of information. "Specific Work Elements" consist of an
activity-based, step-by-step description of the tasks for the remaining
work, emphasizing the current fiscal year. Enough detail is provided for
enabling an independent, knowledgeable reviewer to grasp the scope of
work and relate it to the estimated schedule and requested resources.
The narrative identifies major accomplishments and required
deliverables.

**[Critical Milestones and Performance Measures]{.underline}:** List the
life-cycle critical milestones and performance measures.

**[Project Risks to Meeting Critical Milestones and Performance
Measures]{.underline}:** List the assumptions, exclusions, and any risks
potentially impacting the task\'s scope, cost, and/or schedule. Detailed
risk information is referenced back to the RMP.

**[References]{.underline}:** List technical, regulatory, and other
documents providing additional detail for the reviewer.

**[Related TSDs]{.underline}:** Reference other TSDs potentially
effecting scope, schedule, or cost, or otherwise aiding reviewer project
understanding.

**[Schedule (Gantt Chart):]{.underline}** Include a Gantt chart of the
TSD activities and milestones.

![](media/image21.wmf){width="5.583333333333333in"
height="8.541666666666666in"}**Example Task Scope Description**

**TRU Waste Characterization and Certification**

![](media/image21.wmf){width="5.583333333333333in"
height="8.541666666666666in"}

**WBS Number/Title:** 1.3.1.3.1J.06.06.04.HJ Non-Destructive Assay
Testing

**WBS Level 6 Reference:** 1.3.1.3.1J.06 Waste Operations

**Date Prepared/Updated:** April 6, 2001.

**Control Account Manager/Organization:** Howard Granzow/PM-DS

**FY01 Performance Measures:** Refer to TSD WBS Level 6 1.3.1.3.1J.06
Waste Operations.

**Planned Start/Completion:** FY99/FY15 (EM), continuing for DP.

**Budget/FTEs:** Refer to Tables 1 and 2 for a budget summary. Resource
tables providing a detailed breakdown of costs and personnel are
attached.

**Cost Estimating Methodology:** Cost estimates were prepared based on
professional expertise, historical data from previous years, and a
bottoms-up activity-based approach.

**SCOPE OF WORK AND RESOURCE ASSIGNMENTS**

**1.3.1.3.1J.06.06.04.HJ Non-Destructive Assay Testing**

**[Site Status]{.underline}**

This TSD describes non-destructive assay (NDA) testing on legacy and
newly generated TRU waste prior to WIPP shipment. The WIPP Waste
Acceptance Criteria (WAC) requires that TRU waste generators identify
and determine the mass of each isotope present in each container of
waste shipped to the repository. LANL uses NDA methods to identify which
isotopes are present and their masses through a non-invasive process
(i.e.: the container is not penetrated or breached). Currently work is
performed at the TA-54 Radioactive Non-Destructive Assay (RANT)
facility. However, the NDA testing unit is a mobile unit. Once permits
and procedures are in place the unit can be moved to TRU-waste retrieval
or generation areas, such as Area G and TA-50. Onsite NDA will be more
cost efficient and reduce waste transport between LANL technical areas,
which sometimes requires road closures.

As part of the assays and associated costs, the following activities are
part of this TSD work scope: day-to-day technical management, data
acquisition, drum handling, data evaluation, QA at the generation level,
equipment inspection and maintenance, procedure writing, capital
equipment acquisition, PDP participation, training, travel, expert
consultation, emergency support, service contracts storage manifest
retrieval, storage manifest review, database interface with operators,
database updating and trend analysis.

**[Specific Work Elements]{.underline}**

[NDA Testing and Analysis]{.underline}: TRU waste drum packages are
moved to the RANT facility for NDA. The identification of isotopes
present in each container is necessary information for any of the NDA
methods used to determine mass. Based on process knowledge, a list of
suspected radionuclides, plus a standard fixed set of radionuclides is
created for analysis. Every container must be analyzed using an
isotopics analysis system, such as the Fixed Energy Response Function
Analysis with Multiple Efficiencies (FRAM) system prior to additional
assay on any of the mass determination NDA systems. The mass
determination systems are the High Efficiency Neutron Counter (HENC),
the Passive Active Neutron
![](media/image21.wmf){width="5.583333333333333in"
height="8.541666666666666in"}(PAN) system, and the Segmented/Tomographic
Gamma Scanner (TGS). Due to species interference and other problems that
might affect equipment accuracy, sometimes more than one equipment
system is necessary to quantify the activity of each radionuclide in a
drum. For each container, NDA measures the activity of each radionuclide
to determine which isotopes are present and their respective masses
based on the radioactive emissions of these materials. Certain isotopes
during their decay process emit detectable levels of particles or
radiation without any inducement and are appropriate for passive
scanning procedures. Other isotopes only emit detectable levels when
stimulated by the addition of neutrons during active scanning.

Several NDA methods have been developed to address the range of isotopes
that may be present in LANL TRU waste streams. The following is a
description of the primary NDA-testing methods:

-   FRAM System - The FRAM system records gamma spectral data using a
    germanium detector and computer controlled spectroscopy software as
    in traditional gamma spectroscopy, but analyzes these data using a
    specialized peak fitting routine for special nuclear material (FRAM
    software program) to determine which isotopes are present in a
    container. The FRAM is used as a screening tool to evaluate the
    isotopic composition of plutonium and the ratio of certain
    radionuclides relative to it, identify interfering isotopes that
    could affect the results of quantitative NDA instruments, and assist
    the operator to decide which assay system(s) to use to quantify the
    TRU waste in the container.

> The FRAM instrument counts radioactivity from the container for
> durations intended to meet acceptable statistical detection limits.
> The "loading" or quantity of TRU material present in a container
> affects the count time (i.e.: higher loading usually requires shorter
> count times). After FRAM analysis is complete the container is removed
> from the instrument and returned to local storage while the data are
> compiled, checked, and assessed. Activities are performed in parallel
> as much as possible to maximize throughput.

-   HENC Operations - Following FRAM analysis, containers are analyzed
    using the HENC system. The HENC system is an advanced passive
    neutron counter that measures the transuranic nuclide mass and uses
    IAEA Neutron Coincidence Counting (INCC) software. It was developed
    under a cooperative research agreement between LANL and Canberra
    Industries, specifically for measuring plutonium in scrap and waste.
    The system conducts passive multiplicity assays corrected using the
    add-a-source technique. Historical results indicate that the HENC
    system successfully determines mass values for approximately 80% of
    the containers processed. Therefore, baseline planning schedules and
    estimates assume that containers will be analyzed using the HENC
    system and that 20% of those containers will require additional
    analyses with the PAN or the TGS systems.

-   PAN Operations - The PAN assay system is a second-generation
    differential die-away neutron assay system. It uses a neutron
    generator to measure transuranic radionuclide content. It can be
    operated in the active mode for low-level measurements or the
    passive mode for higher-level measurements. Passive data are
    corrected for matrix effects using the data from a short active
    measurement completed on waste containers tested.

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-   TGS - The TGS assay technique combines high-resolution gamma-ray
    spectroscopy with three-dimensional imaging to produce reliable
    quantification of special nuclear material. The technique corrects
    for inhomogeneities of the matrix and non-uniform distribution of
    special nuclear material within the container and is generally more
    accurate than non-imaging gamma-ray assay techniques.

The current throughput capability of the NDA process is approximately
2,400 containers per year. Containers requiring NDA include existing
containers in the legacy inventory and new containers resulting from
repack activities. The typical team required to effectively handle the
containers, calibrate instruments, conduct the analyses, compile, check,
and assess data for the FRAM includes 3 technicians and 2.5 technical
staff members (TSM - includes engineers, chemists, etc.). The typical
team required to effectively handle the containers, calibrate
instruments, conduct the analyses, compile, check, and assess data for
the HENC, PAN, and TGS includes 4 technicians and 3.5 TSMs. The total
number of full-time employees (FTEs) is 13, which includes 7 technicians
and 6 TSMs to maintain the current NDA throughput capability. This FTE
estimate includes funding both from EM and DP.

![](media/image21.wmf){width="5.583333333333333in"
height="8.541666666666666in"}[Data Package Preparation and
Review]{.underline}: Following NDA testing, data are reviewed and
validated by data collectors under strict WAP QA/QC protocols. LANL is
also implementing a computer automation process that will perform review
activities for some data aspects. Once the data are validated, a data
package is prepared that includes the raw data, review checklists, QA/QC
analysis, and computer printout data. A hard copy and an electronic copy
of each data package are ultimately sent to the records center.

**Critical Milestones and Performance Measures:**

-   Permits and procedures will be in place to mobilize the NDA unit as
    needed by FY02.

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-   NMED audit will be resolved in a timely manner to meet the
    14-shipment performance measure for FY01.

**Project Risks to Meeting Critical Milestones and Performance Measures
(see RMP):**

-   Permits will not be acquired by FY02 to allow the NDA unit to be
    mobilized as needed.

-   NMED audit might not be resolved in a timely manner to meet the 14
    shipment performance measure

**References:**

-   WIPP WAC

-   RCRA Part B Permit - WAP

-   Various DOE Orders

-   Various LANL Procedures

**Related TSDs:**

**1.3.1.3.1J.06 Waste Operations**

Table 1: EM ETC Cost Plan (\$K) and FTE Plan for NDA Testing

![](media/image21.wmf){width="5.583333333333333in"
height="8.541666666666666in"}(WBS Level 9)

  ---------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
  **Cost           **FY01**   **FY02**   **FY03**   **FY04**   **FY05**   **FY06**   **FY07**   **FY08**   **FY09**   **FY10**   **FY11**   **FY12**   **FY13**   **FY14**   **FY15**
  Category**                                                                                                                                                                 

  Labor                                                                                                                                                                      

  Material/Equip                                                                                                                                                             

  Subcontractor                                                                                                                                                              

  Total                                                                                                                                                                      

  RTBF^1\                                                                                                                                                                    
  ^(% of Total)                                                                                                                                                              

  FTEs^2^                                                                                                                                                                    
  ---------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

Table 2: DP ETC Cost Plan (\$K) and FTE Plan for NDA Testing

(WBS Level 9)

  ---------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
  **Cost           **FY01**   **FY02**   **FY03**   **FY04**   **FY05**   **FY06**   **FY07**   **FY08**   **FY09**   **FY10**   **FY11**   **FY12**   **FY13**   **FY14**   **FY15**
  Category**                                                                                                                                                                 

  Labor                                                                                                                                                                      

  Material/Equip                                                                                                                                                             

  Subcontractor                                                                                                                                                              

  Total                                                                                                                                                                      

  RTBF^1\                                                                                                                                                                    
  ^(% of Total)                                                                                                                                                              

  FTEs^2^                                                                                                                                                                    
  ---------------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------

^1^ RTBF = Readiness in Technical Base and Facility\
^2^ FTEs = Full-Time Equivalents (University of California (UC) Labor
only)

[]{#__RefHeading___Toc81811795 .anchor}Appendix C. Baseline Performance
Report (BPR) Template

1.  ***Signature Page:*** Review and signature sign-off signifying the
    report was reviewed. The contractor Project Control Manager,
    Contractor Project Manager, and FPD sign the report. Include dates
    with signatures.

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1.  ***Contents page***.

2.  ***Executive Summary:***

-   Summary of major quarterly accomplishments for the quarter and
    issues/concerns.

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-   [Project Status]{.underline}: Provide ongoing operations and other
    activities related to future goals and capabilities. Examples
    include the following:

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-   Status of IPABS-IS budget milestones and EM Corporate Performance
    Measures

-   Volumes and types of waste stored, treated, and disposed through the
    reporting period

-   Status of specific waste management projects, such as \"Drums
    removed from TWISP pads" and status of DVRS facility construction

-   Numbers and types of sealed sources recovered from the licensed
    sector

-   Development effort status of sealed source storage containers and
    subcontractor capabilities

-   Issues, problems, or impediments affecting continued project
    operations, costs, and schedule and a highlight of those requiring
    DOE action

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-   Project level CV and SV for current period (quarter), year to date
    (YTD), and cumulative to date (CTD).

4.  ***Cost Performance Report (CPR):*** Provide a report of current
    period (quarter), YTD, and CTD BCWS, BCWP, and ACWP, as well as, BAC
    and EAC at WBS Level 7 or at a level agreed to by the contractor
    project manager and FPD. Include subtotals and total.

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4.  ***Performance Charts***:

-   Provide graphs depicting CTD BCWS, BCWP, and ACWP for total project
    and also for each WBS Level 7 element, or at a level agreed to by
    the contractor project manager and the FPD.

-   Provide performance indicator charts displaying CPI, SPI, and TCPI
    for total project and also for each WBS Level 7 element, or at a
    level agreed to by the contractor project manager and the FPD.

6.  ***Narrative and Table of Variances:*** The narrative section
    addresses the current period (quarter), YTD, and CTD CVs and SVs,
    and at-completion variances (ACVs) exceeding established reporting
    thresholds at Level 7, or at a level agreed to by the contractor
    project manager and the FPD. Thoroughly discuss variance causes,
    impacts, and corrective actions. Describe variance changes from the
    previous quarter and the factors influencing the data. Explain
    negative and positive trends.

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6.  ***Total Float Analysis.*** Discuss total float usage, usage rate,
    and negative and positive trends.

7.  ***Risk Status:*** Provide a status of previously identified project
    risks from the RMP, Also provide newly identified risks not
    previously included in the RMP. Include reasons for the anticipated
    risk, expected impact, and corrective actions currently planned or
    taken.

8.  ***Cost Plan:*** Include historical BCWS through the previous FY,
    execution year BCWS by month, and annual BCWS for the outyears at
    WBS level 7, or at a level agreed to by the contractor project
    manager and the FPD. Historical data through and including the
    current reporting period, should match the project BCWS in
    IPABS-PEM.

9.  ***Milestone Exception Report:*** Include the following milestones
    in this section: overdue, project overdue, or forecasted for
    completion within six months of report date. New or modified
    milestones from last report are highlighted. Identify milestones
    tracked in IPABS-IS such as budget and performance measure
    milestones.

10. ***Baseline Change Activity Log:*** Provide a table of internal and
    external submitted BCPs, indicating schedule and cost changes.

***Note:*** Data submitted in the BPR matches IPABS-IS unless exceptions
are explained to and approved by the FPD.

[]{#__RefHeading___Toc81811796 .anchor}Appendix D. Baseline Change
Proposal Template

**Introduction**

The contractor uses the BCP template for describing level 3 proposed
baseline changes to the FPD. The FPD, in turn, uses the completed BCP
template when levels 1 and 2 thresholds are breached. Each BCP stands on
its own and provides enough information for an independent third party
to trace the changes and understand impacts.

**BCP content**

1\. ***Contractor Name:*** Enter the name of contractor submitting the
BCP.

2\. ***BCP Number:*** Enter a unique identifier for each BCP. The
contractor assigns a sequential number that includes the current FY and
up to a three-digit number. For example, the first BCP number in FY04 is
\"CONT-04-001.\"

3\. ***Date Prepared:*** Enter the date the BCP is prepared.

4\. ***Type:*** Enter the change type (directed or project initiated as
defined in Chapter 6 of this handbook).

5\. ***Processing Designation:*** Check the applicable box for
\"emergency, routine, or priority change\" as defined in Chapter 6 of
this handbook.

6\. ***Originator:*** Enter the name, phone and fax numbers, and
organization of the person to whom the FPD can address questions or
status reports. This originator understands the issues and impacts and
is responsible for expeditiously coordinating responses.

7\. ***Description:***

-   **[WBS \#]{.underline}.** Subproject Title - Enter the applicable
    WBS and subproject title.

-   **[Change To]{.underline}.** Indicate affected areas (i.e.,
    technical, schedule, and/or cost).

-   **[General Description]{.underline}.** Enter a brief explanation,
    referencing the impacted PBS(s)/Summary Deliverable(s). Appendices
    are included for enhancing the reviewer\'s understanding.

8\. ***Change Justification:*** Describe the reasons for the change. In
some cases, regulatory requirements cause scope changes. Evidence of
regulatory concurrence is included in supporting BCP documentation if a
regulatory milestone changes.

9\. ***Impact Assessment:*** Describe the significant technical, cost,
and schedule impacts. The following describes required BCP appendices
and/or reference information, depending on the change type:

-   **[Technical Change]{.underline}.** Any information for further
    defining or determining the technical merits of the change.

-   **[Cost Change]{.underline}.**

a.  The total cost change impact as well as the before and after BCWS
    time phasing.

b.  Total contingency and before and after contingency time phasing.

-   **[Schedule Change]{.underline}.** Impacts and before and after
    conditions of regulatory milestones, subproject or project end date,
    deliverables, budget milestones, and performance measures.

10. ***Assessment of Alternatives:***

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a.  Describe and analyze all reasonable BCP alternatives for informed
    BCP decisions.

b.  Describe impacts if the BCP is not approved.

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11. ***List of Appendices or References:*** List all documents, reports,
    and plans used for preparing the BCP and those attached as
    supporting BCP documentation. Include notes and footnotes if
    appendices are not self-explanatory.

12\. ***Submitted By*:** Include the contractor representative,
generally the project manager, typed name, signature, and signature
dates.

[]{#__RefHeading___Toc81811797 .anchor}Appendix E. BCP Review Checklist

***CONTRACTOR/PROGRAM OR PROJECT:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_***

***BCP NUMBER: \_\_\_\_\_\_\_\_\_\_\_\_\_\_***

The following are potential review items. Negative or conditional
responses will not be accepted. The reviewer must resolve all concerns
or questions and initial each potential review item when accepted.

**[ADMINISTRATOR:]{.underline}**

\_\_\_\_1. The BCP Proposal form is completed properly and signed.

\_\_\_\_2. The \"before\" and \"after the change\" cost plans, or BCWS
profiles of the baseline, are included.

\_\_\_\_3. The \"before\" and \"after the change\" logic schedules or
Gantt charts are included, as well as the Master Logic Schedule (MLS).

\_\_\_\_4. The "before" and "after" change performance measures.

\_\_\_\_5. A crosswalk is included.

\_\_\_\_6. The contingency log is included indicating \"before\" and
\"after the change\" effects.

\_\_\_\_7. The cost estimating back-up material is included.

\_\_\_\_8. Additional comments are attached. (Contact Record)

\_\_\_\_9. Documented assumptions are provided.

\_\_\_\_10. Contingency analysis is included.

**[FEDERAL PROJECT DIRECTOR:]{.underline}**

\_\_\_\_1. BCP justification is adequate including regulatory agreement,
if applicable.

\_\_\_\_2. The change in scope of work is properly prioritized.

\_\_\_\_3. Changes affecting installation priority list are noted.

\_\_\_\_4. The schedules and resources applied are reasonable.

\_\_\_\_5. It appears that the installation has considered all aspects.

\_\_\_\_6. All change related contractual aspects have been met.

\_\_\_\_7. All programmatic issues have been reviewed and addressed in
the BCP.

\_\_\_\_8. Additional comments are attached. (Contact Record or notes)

**[TECHNICAL SUBJECT MATTER EXPERT:]{.underline}**

\_\_\_\_1. The technical write-up provides adequate justification for
the technical change

\_\_\_\_2. Risks for not making the change as well as risks with the
change are adequately explained.

\_\_\_\_3. Impacts to other baseline scope are described and understood.

\_\_\_\_4. The technical write-up or BCP appendix provides concurrence
from the regulator for regulatory changes\...

**[PROJECT CONTROL OFFICER:]{.underline}**

\_\_\_\_1. The Current (before change) cost plan is in agreement with
the most recent monthly report.

\_\_\_\_2. The justification for the scope change included on the BCP is
adequate.

\_\_\_\_3. All charges, including error corrections, are made to the
current reporting period; no retroactive changes are made.

\_\_\_\_4. MSPs or Gantt charts properly depict \"before\" and \"after"
change conditions, including the MSP.

\_\_\_\_5. The BCWS crosswalk, (\"before\" and \"after" change) is
correct.

\_\_\_\_6. The contingency log clearly reflects the BCP changes.

\_\_\_\_7. Additional comments are attached. (Contact Record)

**[COST ESTIMATOR:]{.underline}**

\_\_\_\_1. The program's collection of task scope descriptions presents
the complete baseline through closure.

\_\_\_\_2. An estimate summary is provided and appears to include the
entire baseline scope requirements.

\_\_\_\_3. BCP cost changes relate to the new scope of work.

\_\_\_\_4. Additional comments are attached (Contact Record).

\_\_\_\_5. Individual scope descriptions are complete and include
assumptions as necessary.

\_\_\_\_6. Task scope descriptions effected by a BCP have been amended
and are included.

**[BUDGET ANALYST]{.underline}**

\_\_\_\_1. Adequate funds are available for supporting base cost BCP
increase.

\_\_\_\_2. Sufficient contingency funds are available for funding the
BCP.

\_\_\_\_3. The contractor has furnished the most current Approved
Funding Program (AFP) data.

\_\_\_\_4. Assumptions regarding uncosted carryover are documented.

\_\_\_\_5. Additional comments are attached. (Contact Record)

[]{#__RefHeading___Toc81811798 .anchor}Appendix F. Glossary

***Activity-based cost (ABC) estimating.*** ABC is a cost-estimating
technique based on defining processes and activities. Each activity is
defined in terms of a unit of measure; quantities and unit costs of
labor-hours, materials, equipment, and subcontracted services; and
burdened value(s).

***Actual cost of work performed (ACWP).*** ACWP includes actual costs
plus accrued costs. The contractor records ACWP at the deliverable level
or lower for accumulative expenditures in the reporting period.

***Annual.*** Annual refers to scope, schedule, and cost changes
affecting any single fiscal year.

***Baseline.*** The quantitative expression of the project scope,
schedule, and cost against which the status of resources and progress
can be measured. The field maintains the project baseline as a
collection of documents, including resource loaded schedule networks,
cost estimates, and documented assumptions. The baseline is the key
component of the PCS because it documents the program plan for
performing the work and provides the information required by DOE
business practices for evaluating resources and program performance. For
planning purposes, project baselines should reflect full regulatory
compliance and should be based on reasonable out-year funding
assumptions. The degree of baseline detail should be consistent with the
project phase and should adopt the "rolling wave" approach, such as
greatest level of detail for near-term (FY plus 2 years) activities. The
baseline is often referred to as the performance measurement baseline
(PMB).

***Baseline Change Control Board (BCCB).*** BCCBs are the site office
and contractor level baseline change control boards. These boards report
up to EM's CCB.

***Baseline change proposal (BCP).*** The contractor normally generates
the BCP for documenting baseline changes. It should provide a complete
description of a proposed change and its resulting baseline impacts. The
BCP serves as an audit tool for baseline changes. The BCP must be
submitted in accordance with the baseline change control guidelines
contained in the change control section of this document.

***Budget-at-completion (BAC).*** BAC is equal to the sum of all BCWS or
resource allocated activities. BAC does not change unless the budget is
changed through the baseline change control process.

***Budgeted cost of work performed (BCWP).*** BCWP is the value of work
performed or accomplished relative to the total budgeted value (BCWS) of
a task. Both this value and the budgeted value can be expressed in terms
of any relevant units (dollars, man-hours, gallons, tons, etc.). BCWP is
a field on the CPR.

***Budgeted cost of work scheduled (BCWS).*** BCWS is the baselined
dollars corresponding to scheduled work within a given time period. The
sum of all BCWS equals the BAC. Although the BCWS plan and the cost plan
are not technically identical, EPD and its contractors use these terms
synonymously.

***Budget milestone.*** Budget milestones are commitments for performing
work and meeting specified performance objectives in return for a given
amount of funding. They establish accountability for achieving results.
The contractors and FPD jointly develop one or more budget milestones
per PBS for the execution year and are entered into the IPABS-IS. The
Assistant Secretary for EM tracks execution year budget milestones from
a roll up of the installations and field. These commitments consist of
high visibility project milestones, site critical path milestones, and
other major milestones. Budget milestones are statused in the IPABS PEM
and BPR.

***Change control.*** A documented process applying technical and
management review and approval of changes to technical, schedule, and
cost baselines.

***Contractor.*** The term contractor as used in this document refers to
management and operation (M&O) contractor unless otherwise stated.
Synonymous with contractor and M&O contractor is site contractor.

***Configuration Control Board (CCB).*** The CCB is the EM-1 baseline
change control board to which all lower level (site office and
contractor) BCCBs are submitted. It is a multi-discipline functional
body of representatives designated and chartered by DOE EM for ensuring
the proper definition, coordination, evaluation, and disposition of
baseline changes. The CCB oversees the EM configuration control process
and is comprised of three individuals (two board members and one
chairperson) who are appointed to the board by EM-1 for a one-year term.
The CCB is supported by an appointed Secretary, who prepares formal
Board meeting minutes for communicating Board deliberations, Board
assigned actions, Board decisions, and Board policy changes.

***Corporate Performance Measures.*** EM Corporate Performance Measures
are included in IPABS-IS and statused monthly. They support budget
justification and allow DOE to measure contractor progress. Corporate
Performance Measures are subject to change control in IPABS. The
reporting module of IPABS-IS produces a report of these performance
measures and is referred to as the "Gold Chart".

***Cost Performance Index (CPI).*** A measure of cost performance based
on the ratio of earned value (BCWP) to actual costs incurred (ACWP).

**CPI = BCWP/ACWP**

A CPI of 1.0 indicates perfect performance, greater than 1.0 indicates
exceptional performance, and less than 1.0 indicates poor performance.

***Cost Performance Report (CPR).*** The CPR provides the data for
variance analysis and corrective action planning because it displays
BCWS, BCWP, ACWP, SVs, CVs, EAC, BAC, and VAC by a WBS level agreed to
by the FPD. The CPR is submitted in the BPR.

***Cost plan.*** The cost plan includes historical BCWS through the
previous FY, baselined (BCWS) dollars by month for the execution year,
and baselined (BCWS) dollars by year for the outyears at an agreed upon
WBS level, generally level 6 or 7. The sum of historical data through
and including the current month data, should match the project's BCWS in
IPABS-PEM. The cost plan defines the activities in monthly increments
for the current FY, thus providing time-phased data upon which
performance can be measured and reported to EPD. Although the cost plan
and the BCWS plan are not technically identical, the EPD and its
contractors use these terms synonymously.

***Cost variance (CV).*** The CV is the dollar difference between the
work performed (BCWP) and actual cost (ACWP) and is displayed in the CPR
at an agreed upon WBS level.

**CV = BCWP -- ACWP**

***Cost variance percent (CV%).*** The CV percent is the percentage that
a task is over- or under-spent. CV percentages greater than zero
indicate the task or project is under spent, and CV percentages less
than zero indicate the task or project is over spent. CV percentages may
be displayed in the CPR at an agreed upon WBS level.

**CV% = (BCWP -- ACWP)/BCWP \* 100**

***Critical Decision (CD).*** A formal determination made by the AE, at
a specific point in a project that allows the project to proceed. CDs
occur during the course of a project. Example CDs are prior to
commencement of pre-conceptual design, commencement of execution, and
turnover.

***Cumulative-to-date (CTD*).** Cumulative to date includes collected
data from the inception of the project through the current reporting
period.

***Environmental Restoration Division (ERD).*** The EPD division that
oversees planning, budgeting, execution, and reporting and evaluation
activities for ER projects at the sites listed in this Handbook's
preface. It also provides input to decision making concerning
dispositioning properties and facilities that do not support DOE\'s
evolving missions (excess facilities), and assists communities in
planning the future use of DOE site that are to be transitioned back to
local ownership (land transfers).

***Estimate at completion (EAC).*** EAC is synonymous with latest
revised estimate (LRE***).*** It is the total cumulative costs to date
(ACWP) plus the estimated cost of remaining work (ETC). EACs change as
project costs are tracked and estimates are updated. EAC indicates the
most likely final cost of the project.

***Estimate to complete (ETC).*** The current, best-estimated costs for
completing remaining project work. ETCs are adjusted to reflect current
information, such as expected performance, pending rate changes, and
escalation. One method for computing ETC is:

**ETC = BAC/CPI**

***Federal Project Director (FPD).*** As defined in DOE M 413.3-1, the
FPD resides at either the field or HQ and serves as the single point of
contact between Federal and contractor staff for matters relating to the
project and its execution. The Program Secretarial Officer may delegate
certain authorities and responsibilities to the FPD.

***Fiscal year (FY).*** The U.S. government FY begins on October 1 and
ends on the following September 30 of every year.

***Gold Chart.*** The Gold Chart is the IPABS-IS report containing EM
Corporate Performance Measures. These performance measures are statused
monthly in IPABS-IS Project Execution Module. These performance measures
are reported to the Assistant Secretary of Environmental Management and
are subject to baseline change control.

***Independent cost estimate.*** A "bottoms-up" documented, independent
cost estimate for the express purpose of serving as an analytical tool
for validating, cross checking, or analyzing cost estimates developed by
the FPD.

***Integrated Planning, Accountability, and Budgeting System (IPABS).***
The objective of IPABS is to establish a single integrated EM corporate
database to support budget, performance, technical analyses, and
inquiries for eliminating redundant requirements and reporting systems
and providing a single source for data management. IPABS-IS should
correlate to baselines. The IPABS-IS is IPABS user interface for data
input and reporting.

***Life cycle.*** Project inception through project completion.

***Management Analysis Reporting System (MARS).*** The DOE software
system used for tracking and reporting actual costs on a monthly basis.

***Management and operating (M&O).*** \"Management and operating
contract\" means an agreement under which the Government contracts for
the operation, maintenance, or support, on its behalf, of a
Government-owned or -controlled research, development, special
production, or testing establishment wholly or principally devoted to
one or more major programs of the contracting Federal agency (Federal
Acquisition Regulations System Section 17.601).

***Milestone.*** A milestone is an important or critical event with no
duration required for achieving project objective(s). Milestones are
comprised of a noun; modifiers; active, results-oriented verb; and a
date. Milestones can signify activity starts and completions.

***NNSA Service Center (NNSA SC).*** The NNSA Service Center includes
the NNSA and EM personnel and facilities. In reference to this handbook,
NNSA Service Center personnel, specifically EPD, support the FPD in
providing oversight to DOE's interests at designated national
laboratories, production plants, environmental management sites, and the
contractors who manage and operate these sites for DOE.

***Office of Engineering and Construction Management (OECM**).* The OECM
is a DOE HQ organization within the Office of the Chief Financial
Officer. It serves as DOE's principal point of contact relating to
program and project management and develops policy and assists in the
planning, programming, budgeting, and execution process for the
acquisition of capital assets in coordination with the PSOs and project
management support offices.

***Office of Environmental Management (EM).*** DOE created this
organization in 1989 to mitigate the risks and hazards posed by the
legacy of nuclear weapons production and research. Included are an
unprecedented amount of contaminated waste, water, and soil, and a vast
number of contaminated structures that will remain radioactive for
thousands of years. EM is composed of the Offices of ER and Waste
Management.

***Office of Environmental Programs Department (EPD).*** The NNSA SC
department responsible for supporting FPD oversight of waste management
and environmental restoration work at DOE EM projects at plants and
laboratories.

***Office of Management and Budget (OMB).*** OMB is housed within the
Executive Office of the President and provides the most objective
analysis possible for the President. It has the lead role within the
Executive Branch for maintaining Federal fiscal discipline, allocating
scarce resources, and promoting program efficiency. OMB provides
leadership and assistance in financial management, procurement,
information collection and dissemination, and other government-wide
management functions. These responsibilities are carried out working
cooperatively with the Congress and congressional agencies such as the
Congressional Budget Office and the General Accounting Office. The OMB
assists the President by (1) reviewing agency proposals and programs on
a variety of topics from budgets to regulations; (2) assuring that these
proposals and programs are consistent with relevant statutes and
Presidential objectives; (3) providing analysis and advice on a variety
of subjects; and (4) developing government-wide policies for the
effective and efficient operations of the Executive Branch.

***Organizational Breakdown Structure (OBS).*** The project's functional
organization. Control accounts are identified at a natural intersection
point of the WBS and OBS.

***Performance Measurement Baseline (PMB).*** The time-phased budget
(BCWS) plan plus any undistributed budget against which project
performance is measured.

***Priority list.*** A prioritized list of discrete execution year work
scope and associated budget used for determining funding cut and funding
addition impacts.

***Program Management and Analysis Team (PMAT).*** PMAT is the
organization within EPD that oversees EPD business practices. It
interprets EM guidance for EPD divisions; provides information on
project control, project management, and DOE orders; and ensures
policies and procedures are followed, especially those connected with EM
corporate database quality (IPABS-IS) and PBS consistency. PMAT also
helps develop policies and procedures for supporting various study and
working groups, develops funding strategies in concert with the BRMD,
and prepares reports for the EPD Manager.

***Project.*** A unique effort that supports a program mission, having
defined start and end points, undertaken to create a product, facility,
or system, and containing interdependent activities planned to meet a
common objective or mission. Project types include planning and
execution of construction, renovation, modification, line items for
maintenance and repair, environmental restoration, deactivation and
decommissioning efforts, information technology, and large capital
equipment or technology development activities. Tasks such as basic
research, grants, ordinary repairs, maintenance of facilities, and
operations are not considered projects. For simplicity, this document
uses "projects" when referring to both programs and projects.

***Project Assessment and Reporting System (PARS).*** The OECM developed
web-based database for collecting and reporting projects' scope,
schedule, and cost across the complex. EM responds to PARS data requests
by updating designated PARS fields within EM's IPABS-IS.

***Project Baseline Summary (PBS).*** The PBS is the main source of
summary EM project information needed to support planning, budgeting,
execution, and reporting/evaluation. IPABS-IS collects data by PBS, and
EM funds projects by PBS. The majority of ERD and WMD projects have one
PBS. PBSs are the common denominator for the planning, budgeting,
execution, and reporting/evaluation functions.

***Project risk.*** A factor, element, constraint, or course of action
on a project that introduces an uncertainty of outcome and the
possibility of technical deficiencies, inadequate performance, schedule
delays, or cost overruns that could impact a mission. In the evaluation
of project risk, the potential negative or positive impacts and the
probability of occurrence must be considered.

***Schedule performance index (SPI).*** The ratio of the value of work
accomplished (BCWP) to what was planned (BCWS) in the specified time
period.

**SPI = BCWP/BCWS**

A SPI of 1.0 indicates perfect performance, greater than 1.0 indicates
exceptional performance, and less than 1.0 indicates poor performance.

***Schedule variance (SV).*** The SV provides the dollar difference
between the work performed (BCWP) and the work scheduled (BCWS) and is
included in the CPR.

**SV = BCWP -- BCWS**

***Schedule variance percentage (SV%).*** The SV percent provides the
arithmetic difference, expressed as a percentage, between work performed
(BCWP) and work scheduled (BCWS). It is a measure of the percentage that
a task is ahead or behind schedule. SV percentages greater than zero
indicate the task or project is ahead of schedule and less than zero
indicates the task or project is behind schedule. SV percentages may be
included in the CPR.

**SV% = (BCWP - BCWS)/BCWS \* 100**

***To-complete performance index (TCPI).*** The TPCI is the ratio of the
value of the work remaining to be accomplished to the budget remaining
to be spent to finish the activity.

**TCPI = (BAC -- BCWP cumulative)/(BAC -- ACWP Cum.)**

If the ratio is greater than the cumulative CPI, the TCPI indicates that
future efforts must be more efficient than has been experienced to date
so as not to exceed the BAC. If the ratio is less than the cumulative
CPI, the TCPI indicates that the balance of the effort could be
accomplished at less than the BAC provided that the balance of the
activity is performed at the same efficiency factor experienced to date.

***Total float.*** The amount of time an activity can be delayed from
its early start or finish dates before it impacts the project end date.

***Total project cost (TPC).*** The sum of all costs identified for a
project. TPC and TEC are equivalent for WM and ER projects.

**TPC = actuals to date + ETC + contingency (for ER projects)**

***Variance-at-completion (VAC).*** The VAC is the difference between
the budget at completion (BAC) and the estimate at completion (EAC).

***Waste Management Division (WMD).*** The EPD Division responsible for
oversight of waste management projects and programs at the laboratories
and production plants included in this handbook's preface.

***Work Breakdown Structure (WBS).*** The WBS is a product-oriented
family tree subdivision of the work required to produce the end product.
The WBS is structured in accordance with the way work will be performed
and reflects the way in which project costs and data will be summarized
and eventually reported.

***Year-to-date (YTD).*** Year to date includes collected data from the
inception of the current, or execution, year through the current
reporting period. It is for the execution year only; it does not include
any data prior to or beyond the execution year. It is used when
referencing ACWP, BCWP, and BCWS in CPRs.

[]{#__RefHeading___Toc81811799 .anchor}Appendix G. References and
Recommended Reading

**References**

DOE, 2003, DOE M 413.3-1, *Program and Project Management Manual*, March
2003.

DOE, 2000, Project Management Practices, Draft. October.
<http://oecm.energy.gov/policies_guides/practices.pdf>

DOE, 2000, DOE O 413.3, *Program and Project Management for the
Acquisition of Capital Assets*, October 13, 2000.

NNSA SC, EPD, *Cost Estimating Handbook*, (TBD)

NNSA SC, EPD, *Baseline Review Handbook*, April 2004

NNSA SC, EPD, *Decontamination and Decommissioning Handbook,* September
14, 2001

NNSA SC, EPD, *Long-Term Environmental Stewardship Handbook*, 2003

NNSA SC, EPD, *Project Oversight Handbook*, (TBD)

NNSA SC, EPD, *Value Engineering Handbook*, (TBD)

**Recommended Reading**

ANSI/EIA-748, *Earned Value Management System,* August 28, 2002

DOE, Jess Hill Roberson (EM-1), *Environmental Management Federal
Baseline Development Policy*, October 27, 2003

DOE G 430.1-1, *Cost Estimating Guide*, March 28, 1997

DOE O 412.1, *Work Authorization System*, April 20, 1999

DOE O 430.1, *Life Cycle Asset Management (LCAM),* August 24, 1995

DOE P 141.2, *Public Participation and Community Relations*, May 2, 2003

DOE P 413.1, *Program and Project Management Policy for the Planning,
Programming, Budgeting, and Acquisition of Capital Assets*, June 10,
2000

DOE P 450.4, *Safety Management System Policy*, October 15, 1996

DOE P 455.1, *Use of Risk-Based End States Policy*, July 17, 2003

DOE, FM-50, *DOE Cost Estimating Guide*, Volume VI, Cost Guide,
November, 1994

DOE, *IPABS-IS Data Requirements*, December 18, 1998,
http://www.em.doe.gov/ipabs*/*

DOE, *IPABS-IS Guidance,* December 1999 -- present,
http://www.em.doe.gov/ipabs/

DOE, *IPABS Handbook*, February 16, 1999. http://www.em.doe.gov/ipabs/

DOE, Office of Environmental Management, *DOE EM-15 Environmental
Management FY 1996 Performance Plan,* June 1996

DOE, Office of Field Management, *Life Cycle Asset Management Good
Practices Guides,* March 1996.\
Risk Analysis and Management, GPG-FM-007\
Project Execution and Engineering Management Planning, GPG-FM-010\
Performance Analysis and Reporting, GPG-FM-006\
Performance Measures, GPG-FM-020\
Interface Management, GPG-FM-013\
Engineering Tradeoff Studies, GPG-FM-003\
Baseline Change Control, GPG-FM-009\
Configuration and Data Management, GPG-FM-012\
Critical Decision Criteria, GPG-FM-002\
Work Scope Planning, GPG-FM-008

DOE, Office of Project Management, EM-6, *Office of Environmental
Management Project Definition Rating Index (EM PDRI) Manual*, Revision
0, March 6, 2000

DOE, Office of Training and Human Resource Development, *Project Risk
Analysis and Management,* course number PMCE02

DOE, Office of Waste Management (EM-30) *Standard Operating Practice and
Procedure (SOPP), 2.2.2, Managing Baseline Change Control*, 1992

DOE, Office of Waste Management (EM-30), *Management Policies and
Requirements (MPR),* 1992.

DOE, Waste Management Division, *Performance Measurement Processes*,
June 2001

DOE/MA-0040, *Cost and Schedule Control Systems Criteria for Contract
Performance Measurement, Work Breakdown Structure Guide*, October 1981

Executive Order 13148, *Greening the Government through Leadership in
Environmental Management*

National Research Council, 1999. *Improving Project Management in the
Department of Energy*, National Academy Press

OMB Bulletin 95-03, *Planning and Budgeting for the Acquisition of Fixed
Assets*, June 1995

OMB Circular A-109, *Major Systems Acquisition,* April 1979

U.S. Congress, H.R. 826, *Government Performance and Result Act*,
February 1993

U.S. Office of the Inspector General, *Audit Report-Best Practices for
Environmental Management Baseline Development*, DOE/IG-0476, July 2000

[^1]: Baseline reviews are only one review type DOE or other independent
    entities perform for ensuring DOE management that technical,
    schedule, and fiscal commitments are being met. Others include
    Independent Cost Reviews, Independent Project Reviews, External
    Independent Reviews, and Readiness Reviews. DOE M 413.3‑1 describes
    these various reviews.