# Presentation: 093157

## Office of Environmental ManagementBest Practices

**Office of Environmental Management****Best Practices**

**J. E. Surash, P.E.**
**Deputy Assistant Secretary**
**Acquisition and Project Management**
**Office of Environmental Management**
**November 15, 2006**

**2006**
**Project**
**Management**
**Workshop**

## The EM Program is a Large, Complex Cleanup Effort..........

- 114
- 31
- ~ 2,000,000
- ~ $5.9 B
- ~ 34,000

**Sites**
**States**
**Acres**
**Budget (FY-07)**
**Workforce (federal and contractor)**

## Project Management Within DOE

**Late 1990’s, National Research Council (NRC) study**
- “Construction and environmental projects take too long and cost too much . . .”
**Improvements made by implementation of DOE Order 413.3A, “*****Program and Project Management for the Acquisition of Capital Assets”***

**Notes:**
Late 1990’s, National Research Council (NRC) conducted a study to Improve Project Management
“Construction and environmental projects take much longer and cost about 50% more then comparable projects by other federal agencies or projects in the private sector” (NRC)
Improvements made by implementation of DOE Order 413.3A, “Program and Project Management for the Acquisition of Capital Assets”:
Five “Critical Decision” gates for senior management decisions on projects
Emphasis on earned value management
Safety in design
Certification of Federal Project Directors
Monthly Reporting to the Deputy Secretary on earned value for all DOE Projects

## Project Management Within EM

**EM has applied project management to the entire environmental cleanup effort, not just capital asset projects**
**EM Project Portfolio’s total project cost is ~$160 billion**
- 87 Projects
- 7 EM Line Item Construction Projects  ($14.5B)
- 80 EM Cleanup Projects ($145.7B)

## EM Project Management Systems Accomplishments

**EM has made significant improvement in project performance in FY06**
- January 2006 - 15 “red/yellow” projects
- October 2006 - 3 “red/yellow” projects
- 68 of the 87 Projects have been Reviewed for Life-Cycle Reasonableness and/or Near-Term Validation
**58 Certified Federal Project Directors**
- Currently 39 are Managing the on-going projects

**Notes:**
Of the Projects Reviewed:
27% of Projects (18) received Endorsement for Life-Cycle Reasonableness
38% of Projects (26) received Near-Term Baseline Validation
25% Projects (17) received both an endorsement and validation for Life-Cycle Reasonableness and Near-Term Baseline
The remaining 22% of Projects are currently scheduled or are being planned

## EM Project Management Systems Accomplishments (Cont’d)

**EVMS Certification Status for Projects > $20M at CD-2 (55)**
- 36.4% of  Projects (20) have Certified EVMS
- 16.4 % of Projects (9) in Review
- To improve credibility of data and systems we use to manage
**Federal Oversight: Reporting, Monitoring, Control **
- Performance Reporting
- Contractors Monthly Status Report
- Quarterly Performance Reviews
- Office of Project Management Oversight Monthly Project Assessment
- OECM Monthly Project Status Report for the Deputy Secretary

## Program Accomplishments Fernald ---- Before and After

**Fernald Closure Project**

## Summary

**DOE has had a significant culture change in the last five years in applying a more rigorous project management structure**
**EM has applied DOE Order 413.3A to its entire cleanup program**
**EM is integrating comprehensive safety processes to our projects**
**EM continues to complete cleanup in a safe, compliant manner with Senior management focus on controlling cost and schedule**