Attachment C-4

+--------------------+----------+------------------------+------------+
| **SIGNIFICANT      | **RES    | **ACTIONS TAKEN**      | **EXPECTED |
| ISSUE**            | PONSIBLE |                        | CO         |
|                    | ORGANI   | **AND REMAINING**      | MPLETION** |
|                    | ZATION** |                        |            |
+--------------------+----------+------------------------+------------+
| **ENVIRONMENTAL    | EM       | Substantial progress   | Long-term  |
| CLEANUP:**         |          | has been made in       | correction |
|                    |          | cleaning up            | expected   |
| There are          |          | contaminated sites. By | with       |
| significant        |          | the end of Fiscal Year | completion |
| long-term          |          | 2003, cleanup of 76 of | date to be |
| compliance and     |          | the 114 contaminated   | reassessed |
| waste management   |          | geographic sites had   | following  |
| problems at the    |          | been completed.        | impl       |
| Department's       |          | However, to accelerate | ementation |
| facilities due to  |          | the cleanup, risk      | of site    |
| past operations    |          | reduction and site     | baselines  |
| that left risks to |          | closure strategies     | in Fiscal  |
| the environment.   |          | have been defined on a | Year 2004. |
| Even though these  |          | site-by-site basis and |            |
| issues resulted    |          | in Fiscal Year 2003    |            |
| from earlier       |          | performance management |            |
| activities         |          | plans describing the   |            |
| conducted in a     |          | end states, strategies |            |
| different          |          | and milestones to      |            |
| atmosphere and     |          | achieve cleanup faster |            |
| under less         |          | and cheaper than       |            |
| stringent          |          | originally anticipated |            |
| standards than     |          | were developed.        |            |
| today, the         |          | Resource-loaded site   |            |
| Department is      |          | baselines are being    |            |
| committed to       |          | implemented in Fiscal  |            |
| maintaining        |          | Year 2004.             |            |
| compliance with    |          |                        |            |
| current            |          |                        |            |
| environmental laws |          |                        |            |
| and agreements.    |          |                        |            |
+--------------------+----------+------------------------+------------+
| **NUCLEAR WASTE    | RW       | Extensive scientific   | Fiscal     |
| DISPOSAL:**        |          | testing determined     | Year 2004  |
|                    |          | that Yucca Mountain,   | upon       |
| A repository for   |          | Nevada, is suitable    | fi         |
| the Nation's spent |          | for the disposal of    | nalization |
| nuclear fuel and   |          | spent nuclear fuel and | of a       |
| high-level         |          | high-level radioactive | funding    |
| radioactive waste  |          | waste and, in 2002,    | mechanism. |
| has not been       |          | the President          |            |
| opened as required |          | designated it as the   |            |
| by the Nuclear     |          | site for the Nation's  |            |
| Waste Policy Act.  |          | first repository.      |            |
| Delays in          |          | Potential funding      |            |
| milestones and     |          | mechanisms and a       |            |
| revisions to cost  |          | proposed funding       |            |
| and schedule       |          | strategy to ensure the |            |
| baselines have     |          | Department can         |            |
| been required as a |          | complete the remaining |            |
| result of funding  |          | a                      |            |
| shortfalls. A      |          | ctivities---licensing, |            |
| mechanism needs to |          | construction, and      |            |
| be established to  |          | establishing the       |            |
| assure the         |          | capability to          |            |
| necessary funding  |          | transport waste to the |            |
| is available to    |          | repository on a timely |            |
| lead to waste      |          | basis---were developed |            |
| acceptance in      |          | in Fiscal Year 2003. A |            |
| 2010, as presently |          | final funding          |            |
| scheduled.         |          | mechanism and cost and |            |
|                    |          | schedule baseline are  |            |
|                    |          | anticipated in Fiscal  |            |
|                    |          | Year 2004.             |            |
+--------------------+----------+------------------------+------------+
| **INFORMATION      | CIO      | Management of          | Fiscal     |
| TECHNOLOGY         |          | information technology | Year 2004  |
| MANAGEMENT:**      | NNSA     | has been strengthened  |            |
|                    |          | by making the Chief    |            |
| The Department has |          | Information Officer a  |            |
| a decentralized    |          | direct report to the   |            |
| approach to        |          | Secretary and the      |            |
| information        |          | primary official for   |            |
| technology         |          | agency information     |            |
| management,        |          | technology issues. A   |            |
| limited control by |          | strategic plan         |            |
| the Chief          |          | targeted at            |            |
| Information        |          | Clinger-Cohen Act      |            |
| Officer in the     |          | reforms has been       |            |
| budgeting process, |          | developed as well as a |            |
| and lack of an     |          | high-level enterprise  |            |
| information        |          | architecture with an   |            |
| technology         |          | information technology |            |
| baseline to guide  |          | baseline. In 2004, a   |            |
| management         |          | detailed enterprise    |            |
| decisions. These   |          | architecture,          |            |
| problems have      |          | including mandatory    |            |
| impeded the        |          | standards, will be     |            |
| Department's       |          | developed and an       |            |
| ability to         |          | agency-wide directive  |            |
| effectively manage |          | establishing explicit  |            |
| its information    |          | information technology |            |
| technology         |          | requirements will be   |            |
| resources.         |          | issued.                |            |
+--------------------+----------+------------------------+------------+
| **OVERSIGHT OF     | EM       | An improved contract   | Fiscal     |
| CONTRACTORS:**     |          | administration         | Year 2004  |
|                    | NNSA     | structure that focuses |            |
| Improvements are   |          | on performance-based   |            |
| needed in the      | SC       | contracts has been put |            |
| oversight of       |          | in place and efforts   |            |
| contractors        |          | to institutionalize it |            |
| managing and       |          | are ongoing. In Fiscal |            |
| operating the      |          | Year 2003 new          |            |
| Department's       |          | strategies for         |            |
| facilities.        |          | environmental cleanup  |            |
| Specific oversight |          | contracts were         |            |
| problems have been |          | implemented. These     |            |
| identified at      |          | entail re-evaluation   |            |
| environmental      |          | and renegotiation to   |            |
| cleanup sites and  |          | align contract         |            |
| laboratories       |          | incentives with        |            |
| conducting         |          | accelerated cleanup    |            |
| national security  |          | objectives and to      |            |
| and scientific     |          | incorporate            |            |
| activities.        |          | cost-sharing options   |            |
| Adequate oversight |          | for ensuring           |            |
| is needed to       |          | contractor efficiency. |            |
| assure that        |          | In addition, the       |            |
| contractor         |          | National Nuclear       |            |
| operations are     |          | Security               |            |
| effective and      |          | Administration is      |            |
| efficient.         |          | restructuring its      |            |
|                    |          | workforce to improve   |            |
|                    |          | the oversight of       |            |
|                    |          | contractors managing   |            |
|                    |          | and operating its      |            |
|                    |          | facilities. This       |            |
|                    |          | effort is scheduled    |            |
|                    |          | for completion in      |            |
|                    |          | Fiscal Year 2004.      |            |
+--------------------+----------+------------------------+------------+
| **SECURITY:**      | CIO      | In Fiscal Year 2003, a | Long-term  |
|                    |          | 10-year security       | correction |
| Unprecedented      | NNSA     | strategic plan was     | is         |
| security           |          | published, an updated  | expected   |
| challenges have    | SP       | analysis reflecting    | due to the |
| evolved since the  |          | new threats issued,    | continuing |
| events of          |          | and a plan for near    | nature of  |
| September 11,      |          | and long-term          | security   |
| 2001. The need for |          | protection upgrades    | threats.   |
| improved homeland  |          | was developed. A       |            |
| defense,           |          | senior management      |            |
| highlighted by the |          | working group was      |            |
| threats of         |          | established to ensure  |            |
| terrorism and      |          | our security           |            |
| weapons of mass    |          | operations are well    |            |
| destruction,       |          | coordinated,           |            |
| created new and    |          | facilitate our         |            |
| complex security   |          | relationship with the  |            |
| issues that must   |          | Department of Homeland |            |
| be surmounted to   |          | Security, and          |            |
| ensure the         |          | recommend actions to   |            |
| protection of our  |          | strengthen             |            |
| critical energy    |          | accountability. In     |            |
| resources and      |          | Fiscal Year 2004,      |            |
| infrastructure.    |          | implementation of the  |            |
| These have made it |          | new agency-wide threat |            |
| necessary for the  |          | analysis will begin    |            |
| Department to      |          | and continue through   |            |
| reassess and       |          | Fiscal Year 2006. In   |            |
| strengthen its     |          | addition, the National |            |
| physical and cyber |          | Nuclear Security       |            |
| security postures. |          | Administration will be |            |
|                    |          | addressing problems    |            |
|                    |          | with its security      |            |
|                    |          | operations and         |            |
|                    |          | personnel through      |            |
|                    |          | Fiscal Year 2005.      |            |
+--------------------+----------+------------------------+------------+
| **PROJECT          | OMBE     | An improved            | Fiscal     |
| MANAGEMENT:**      |          | engineering and        | Year 2004. |
|                    | EM       | construction project   |            |
| The construction   |          | management structure,  |            |
| of new facilities  | NNSA     | completed in Fiscal    |            |
| and upgrading of   |          | Year 2003, is now in   |            |
| existing systems   | SC       | place following the    |            |
| have been          |          | implementation of      |            |
| adversely affected |          | recommendations from   |            |
| by cost overruns,  |          | an expert panel formed |            |
| schedule           |          | under the National     |            |
| slippages, and     |          | Research Council of    |            |
| other project      |          | the National Academy   |            |
| management         |          | of Sciences; external  |            |
| problems. These    |          | independent reviews    |            |
| issues have led to |          | validating project     |            |
| concern over the   |          | cost, schedule and     |            |
| Department's       |          | scope; a new system    |            |
| engineering and    |          | tracking project       |            |
| construction       |          | performance; a         |            |
| project management |          | detailed project       |            |
| practices.         |          | management manual; and |            |
| Improved           |          | a career development   |            |
| discipline and     |          | program.               |            |
| structure are      |          |                        |            |
| required to        |          | Efforts to             |            |
| effectively manage |          | institutionalize the   |            |
| project costs and  |          | improved structure are |            |
| schedules.         |          | underway. In Fiscal    |            |
|                    |          | Year 2003, the Office  |            |
|                    |          | of Science began       |            |
|                    |          | site-specific          |            |
|                    |          | implementation plans   |            |
|                    |          | and the National       |            |
|                    |          | Nuclear Security       |            |
|                    |          | Administration is      |            |
|                    |          | monitoring its         |            |
|                    |          | projects to ensure the |            |
|                    |          | new requirements are   |            |
|                    |          | consistently applied.  |            |
|                    |          | Other organizations    |            |
|                    |          | within the Department  |            |
|                    |          | are also taking        |            |
|                    |          | actions to improve     |            |
|                    |          | project management.    |            |
+--------------------+----------+------------------------+------------+
| **HUMAN CAPITAL    | OMBE     | A Departmental         | Fiscal     |
| MANAGEMENT:**      |          | framework for          | Year 2006  |
|                    | IG       | addressing this issue  |            |
| Since 1995, the    |          | was put in place with  |            |
| Department has     | NNSA     | the implementation of  |            |
| experienced a 27   |          | a comprehensive human  |            |
| percent reduction  | EM       | capital management     |            |
| in the workforce.  |          | strategy; an improved  |            |
| By Fiscal Year     |          | senior executive       |            |
| 2000, up to 30     |          | performance management |            |
| percent of the     |          | system; a guide on     |            |
| Department's       |          | developing and         |            |
| critical workforce |          | retaining a            |            |
| was eligible for   |          | highly-skilled         |            |
| retirement within  |          | workforce; and         |            |
| the next 5 years.  |          | business visions and   |            |
| Combined with      |          | workforce plans for    |            |
| other factors such |          | all major offices.     |            |
| as lengthy         |          |                        |            |
| moratoria on       |          | Individual offices are |            |
| hiring, the        |          | now right-sizing to    |            |
| relative age of    |          | address their specific |            |
| the workforce, and |          | needs. Environmental   |            |
| a variety of       |          | cleanup officials      |            |
| incentives to      |          | began management       |            |
| leave Federal      |          | rotations and          |            |
| service, the       |          | succession planning in |            |
| decline in         |          | Fiscal Year 2003 and   |            |
| staffing has left  |          | will reorganize the    |            |
| the Department     |          | headquarters office in |            |
| with a significant |          | Fiscal Year 2004. The  |            |
| challenge:         |          | National Nuclear       |            |
| reinvesting in its |          | Security               |            |
| human capital to   |          | Administration is      |            |
| ensure that the    |          | re-engineering its     |            |
| right skills,      |          | workforce, to be       |            |
| necessary to       |          | complete in Fiscal     |            |
| successfully meet  |          | Year 2004, to          |            |
| its missions, are  |          | streamline operations  |            |
| available.         |          | and strengthen         |            |
|                    |          | accountability.        |            |
|                    |          | Buyouts and increased  |            |
|                    |          | excepted service       |            |
|                    |          | authority, expected in |            |
|                    |          | Fiscal Year 2006, will |            |
|                    |          | be used to upgrade     |            |
|                    |          | technical              |            |
|                    |          | capabilities.          |            |
+--------------------+----------+------------------------+------------+
| **SAFETY AND       | EH       | Significant actions    | Fiscal     |
| HEALTH:**          |          | have been taken to     | Year 2005  |
|                    | EM       | mitigate safety and    |            |
| Ensuring the       |          | health concerns. The   |            |
| safety and health  | NE       | integrated Safety      |            |
| of the public and  |          | Management program, a  |            |
| the Department's   | NNSA     | key component of the   |            |
| workers is one of  |          | Department's long-term |            |
| the top priorities | SC       | safety and health      |            |
| in accomplishing   |          | strategy, has been     |            |
| our challenging    | SP       | implemented. The       |            |
| scientific and     |          | Office of Independent  |            |
| national security  |          | Oversight and          |            |
| missions. Due to   |          | Performance Assurance  |            |
| the inherently     |          | was established to     |            |
| critical nature of |          | evaluate safety and    |            |
| these issues,      |          | health performance. In |            |
| there is the need  |          | Fiscal Year 2003,      |            |
| for continuous     |          | updates to nuclear     |            |
| vigilance and      |          | facilities safety      |            |
| improvement.       |          | analysis documentation |            |
| Currently, the     |          | were satisfactorily    |            |
| Department is      |          | completed. In          |            |
| addressing         |          | addition, the National |            |
| explosive safety   |          | Nuclear Security       |            |
| issues and, with   |          | Administration put     |            |
| the ongoing        |          | processes in place to  |            |
| re-engineering of  |          | ensure explosive       |            |
| the National       |          | safety studies are     |            |
| Nuclear Security   |          | completed prior to     |            |
| Administration     |          | life extension work on |            |
| workforce, needs   |          | weapons. Increased     |            |
| to ensure that     |          | management focus on    |            |
| adequate focus on  |          | general safety is      |            |
| general safety at  |          | planned for Fiscal     |            |
| our laboratories   |          | Years 2004 and 2005 as |            |
| and plants is      |          | critical individuals   |            |
| maintained.        |          | are moved throughout   |            |
|                    |          | the nuclear security   |            |
|                    |          | complex and the safety |            |
|                    |          | oversight function is  |            |
|                    |          | restabilized.          |            |
+--------------------+----------+------------------------+------------+
| **STOCKPILE        | NNSA     | During Fiscal Year     | Fiscal     |
| STEWARDSHIP:**     |          | 2003, processes were   | Year 2006  |
|                    |          | put in place to        |            |
| Stewardship of the |          | eliminate a backlog of |            |
| Nation's nuclear   |          | surveillance tests and |            |
| weapons stockpile  |          | resolve deficiencies   |            |
| is one of the most |          | in the investigations  |            |
| complex,           |          | conducted when weapons |            |
| scientifically     |          | problems are           |            |
| technical programs |          | identified. Plans and  |            |
| undertaken and the |          | financial controls     |            |
| Department needs   |          | over weapons           |            |
| to ensure that all |          | refurbishment are      |            |
| aspects of this    |          | being strengthened     |            |
| mission-critical   |          | with improved cost     |            |
| responsibility are |          | accounting in Fiscal   |            |
| fulfilled. Based   |          | Year 2004 and          |            |
| on stockpile       |          | individual             |            |
| stewardship        |          | refurbishment plans to |            |
| activities, the    |          | be finalized in Fiscal |            |
| Secretary annually |          | Year 2006. Resource    |            |
| certifies to the   |          | loaded plans that      |            |
| President that the |          | contain cost, scope,   |            |
| nuclear weapons    |          | and milestones will be |            |
| stockpile is safe  |          | implemented through    |            |
| and reliable and   |          | Fiscal Year 2005.      |            |
| that underground   |          |                        |            |
| nuclear testing    |          |                        |            |
| does not need to   |          |                        |            |
| resume. Success is |          |                        |            |
| dependent upon     |          |                        |            |
| unprecedented      |          |                        |            |
| scientific tools   |          |                        |            |
| to better          |          |                        |            |
| understand the     |          |                        |            |
| changes that occur |          |                        |            |
| as nuclear weapons |          |                        |            |
| age, enhance the   |          |                        |            |
| surveillance       |          |                        |            |
| capabilities for   |          |                        |            |
| determining weapon |          |                        |            |
| reliability, and   |          |                        |            |
| extend weapon      |          |                        |            |
| lives. The         |          |                        |            |
| Department must    |          |                        |            |
| ensure that        |          |                        |            |
| problems in these  |          |                        |            |
| areas are          |          |                        |            |
| aggressively       |          |                        |            |
| addressed.         |          |                        |            |
+--------------------+----------+------------------------+------------+