This directive was reviewed and certified as current and necessary by Susan J. Grant, Director,
Office of Management, Budget and Evaluation/Chief Financial Officer, 6-23-05.
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| U. S. Department of Energy |
ORDER
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DOE O 413.3
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Approved:
10-13-00
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| SUBJECT: PROGRAM AND PROJECT MANAGEMENT FOR THE ACQUISITION OF CAPITAL ASSETS | |
1. OBJECTIVES.
a. To provide Department of Energy (DOE), including the National Nuclear Security
Administration (NNSA), project management direction for the acquisition of capital assets
that are delivered on schedule, within budget, and fully capable of meeting mission
performance and environmental, safety, and health standards. (See paragraph 8 for
definitions of terms used in this Order.)
b. To implement Office of Management and Budget (OMB) Circulars A-109 (to be replaced
by A-11, Part 3), A-11, A-123, A-127, and A-130. (See paragraph 6 for a list of
references cited in this Order.)
c. To implement DOE P 413.1, PROGRAM AND PROJECT MANAGEMENT POLICY
FOR THE PLANNING, PROGRAMMING, BUDGETING, AND ACQUISITION
OF CAPITAL ASSETS.
2. CANCELLATION. DOE N 430.1, ENERGY SYSTEMS ACQUISITION ADVISORY
BOARD PROCEDURES, dated 10-28-97. Cancellation of a directive does not, by itself,
modify or otherwise affect any contractual obligation to comply with the directive. A canceled
directive that is incorporated by reference in a contract remains in effect until the contract is
modified to delete the reference to the requirements in the canceled directive.
This Order supersedes specific project management provisions within DOE O 430.1A, LIFE
CYCLE ASSET MANAGEMENT. The specific paragraphs canceled by this Order are 6e(7);
7a(3); 7b(11) and (14); 7c(4), (6), (7), (11), and (16); 7d(4) and (8); 7e(3), (10), and (17);
Attachment 1, Definitions (item 30 - Line Item Project, item 42 - Project, item 48 - Strategic
System); and Attachment 2, Contractor Requirements Document (paragraph 1d regarding a
project management system). The remainder of DOE O 430.1A remains in effect.
3. APPLICABILITY. This Order applies to all DOE projects, including NNSA, regardless of
funding type or phase of execution.
a. DOE Elements. The requirements in this Order are mandatory for DOE, including NNSA,
on all Major System (MS) projects [total project cost (TPC) $400M or greater and as
defined in paragraph 8] and Other Projects (TPC less than $400M and as defined in
paragraph 8).
b. Contractors. The Contractor Requirements Document (CRD), Attachment 1, sets forth
the requirements of this Order that must be applied to management and
operating/management and integrating (M&O/M&I) contractors and other prime
contractors responsible for project execution at DOE facilities, including NNSA, as
adapted to meet site-specific needs. Federal instructions for implementing the CRD are
included in Chapter VII, paragraph 3. Contractor compliance with the CRD will be
required to the extent set forth in a contract.
c. Tailoring. Tailoring may be applied to all projects. The principles of this directive will be
applied on a tailored basis (see paragraph 8) as appropriate to the size and risks of a
project. The use of tailoring will be stated in the appropriate documents and subject to the
approval of the Acquisition Executive (AE).
d. Implementation. All projects with an approved performance baseline as of the approval
date noted on this Order are exempted from the requirement for Critical Decision (CD)-1,
Approve Preliminary Baseline Range. Projects between CD-1 and CD-2, Approve
Performance Baseline, may request an exception to specific documentation requirements
from the Secretarial Acquisition Executive (SAE), through the appropriate Under
Secretary, on a case-by-case basis. All projects that have not received CD-3 approval
(see Chapter I) must ensure that the contractor complies with the CRD. Exceptions to this
Order can be requested on a case-by-case basis from the SAE. Any exception to the
requirements set forth in OMB circulars must be approved by OMB.
e. Implementation Review. This Order will be subject to a formal implementation review
through the DOE directives systems 12 months after the date of publication. The purpose
of this review is to incorporate lessons learned and improvements.
4. REQUIREMENTS. Requirements are set forth in Chapters I through VII. Mandatory
procedures, definitions, and management processes are further addressed in the DOE Program
and Project Management Manual (see paragraph 6, References).
5. RESPONSIBILITIES. This paragraph provides the basic framework for roles and
responsibilities for program and project management at the various operating levels within the
Department, including NNSA. Line managers, extending from the Secretary to the Deputy
Secretary (who also serves as DOE's Chief Operating Officer) and/or Under Secretary for
NNSA and Under Secretary for Energy, Science, and Environmental Management; the Program
Secretarial Officers (PSOs), including the Deputy Administrators for NNSA; the
Operations/Field Office Managers; the Federal Project Managers, and the Contractor Project
Managers (i.e., contractor executives responsible for execution of the project), will be held
responsible and accountable for successfully developing, executing, and managing DOE projects
within the baseline (cost, schedule, and scope). Attachment 2 is a chart on authority, roles, and
responsibility for line managers. Attachment 3 shows a summary of decision authority thresholds
for the SAE/AE line managers. Any DOE definition of Federal responsibilities that is inconsistent
with this Order is hereby rescinded.
a. Deputy Secretary/SAE. As SAE, the Deputy Secretary of Energy as senior manager
responsible and accountable for all project acquisitions, may delegate AE authority for
Other Projects to the PSOs, with the concurrence of the Under Secretary (for Energy,
Science and Environment); or for the NNSA, to the Administrator, NNSA who may
redelegate AE authority at his discretion (see Attachment 3). The SAE chairs the Energy
Systems Acquisition Advisory Board (ESAAB) and performs specific roles defined in this
Order for projects designated as MS projects and for projects on the Chief Operating
Officer Watch List. The SAE approves the site selections for facilities for new sites, the
CDs, and Level 0 baseline changes for MS projects. The AE performs similar roles for
projects under her/his purview.
b. Lead Program Secretarial Offices (LPSOs), Including the Deputy Administrators for
NNSA.
(1) Recognizing that most field sites are multi-program, the LPSOs have overall line
accountability for sitewide environment, safety, and health; safeguards and security;
and implementation of policy promulgated by Headquarters staff and support
functions.
(2) If LPSOs have project delivery responsibility, they establish project management
support offices, reporting directly to them, to provide project management support
throughout their organization.
c. Program Secretarial Officers (PSOs), Including the Deputy Administrators for NNSA, and
Program Directors.
(1) Responsible for the success of all MS projects and Other Projects within their
programmatic areas of control as the responsible and accountable officers.
(2) Serve as the AE for Other Projects that are not designated as MS projects.
Approve the CDs and Level 1 baseline changes for those projects.
(3) Approve selection of the Federal Project Manager for projects where the equivalent
AE functions have not been further delegated.
(4) Define the roles and responsibilities of the project management support office.
(5) Delegate, if desired, equivalent AE functions to a Senior Executive Service (SES)
Program Manager or Operations/Field Office Manager for projects with a TPC less
than $100M. The recipient of this AE delegation may recommend the elevation of a
project to a higher-level AE at any time.
d. Program Manager.
(1) Directs project planning and execution roles for projects assigned by the PSO/AE.
(2) Initiates definition of mission need, based on input from sites, labs, and program.
(3) Oversees development of project definition, scope, and budget to support mission
need.
(4) Initiates development of the Acquisition Strategy and Acquisition Plan (during the
period of time preceding designation of the Federal Project Manager).
(5) Recommends a Federal Project Manager for those projects for which the PSO
retains AE responsibility. Approves the Federal Project Managers where the
Program Manager has been delegated AE authority.
(6) Develops performance measures, and monitors and evaluates performance
throughout the life of a project.
(7) Allocates resources throughout the program.
(8) Oversees and manages the project line management organization.
(9) Performs functions as AE when so delegated by PSO.
e. Project Management Support Office.
(1) Provides independent oversight and reports directly to the PSO.
(2) Serves as the Secretariat for the PSO ESAAB-equivalent function.
(3) Coordinates quarterly project performance reviews and monthly/quarterly
performance reports for the PSO.
(4) Coordinates with the Office of Engineering and Construction Management (OECM)
to ensure effective and consistent implementation of this Order.
(5) Provides assistance and oversight to line project management organizations.
(6) Analyzes the full range of project management and project delivery issues for the
PSO.
f. Operations/Field Office Manager, Including the Field Managers for NNSA Operations.
(1) Reports directly to an LPSO and has line accountability for contract management of
all site program/project execution.
(2) Recommends a Federal Project Manager for those projects for which the PSO
retains AE responsibility. Approves the Federal Project Manager where the
Operations/Field Office Manager has been delegated AE authority.
(3) For projects with TPCs less than $20M, may delegate project planning and
execution roles, including performance reviews, to a direct reporting subordinate
manager (or SES subordinate manager for AE delegation).
(4) Performs functions as AE when so delegated by PSO.
g. Federal Project Manager.
(1) Responsible and accountable for project management activities of one or more
discrete projects under his or her cognizance. General plant projects, accelerator
improvement projects, capital equipment projects, and operating expense funded
projects that are $5M or less are the responsibility of the Federal Project Manager
as delegated by the Operations/Field Office Manager.
(2) Responsible and accountable for planning, implementing, and completing a project
using a systems approach.
(3) Develops and implements the Acquisition Plan and Project Execution Plan.
(4) Defines project objectives, scope, cost, and schedule.
(5) Allocates project funding and authorizes work activities.
(6) Oversees the design, construction, environmental, safety, and health efforts
performed by various contractors, and other functions enumerated in the Project
Execution Plan in accordance with public law, regulations, and Executive orders.
(7) Serves as the single point of contact between Federal and contractor staff for all
matters relating to the project and its execution.
(8) Serves as the Contracting Officer's Technical Representative, as appointed.
h. Contractor Project Manager.
(1) Manages day-to-day execution of assigned projects in a cost-effective manner, in
accordance with requirements, procedures, and standards, as set forth in the
contract (see CRD, Attachment 1).
(2) Executes projects within approved cost, schedule, and scope baselines, as defined
in the Project Execution Plan, as set forth in the contract.
i. Office of the Chief Information Officer.
(1) Establishes and maintains Departmentwide guidance for Information Technology
(IT) investment management processes, including IT (e.g., hardware, software, and
application) and capital assets.
(2) Designs and guides implementation of the corporate-level IT investment
management process.
(3) Provides IT investment management process assistance to Program Office, Field
Office, site, and contractor locations, as requested.
(4) Collects process performance measurement information regularly and prepares a
summary report on the status and performance of IT investment management
processes.
j. Office of Engineering and Construction Management (Within the Office of the Chief
Financial Officer).
(1) Serves as DOE's principal point of contact relating to project management.
(2) Develops policy and assists in the planning, programming, budgeting, and execution
process for the acquisition of capital assets in coordination with PSOs and project
management support offices.
(3) Supports the Office of the Secretary, the Chief Operating Officer, the Administrator
of NNSA, and Program Secretarial Offices in the CD process for MS projects and
oversight of DOE's project management process.
(4) Serves as Secretariat for the ESAAB and Chief Operating Officer Watch List
functions.
(5) Establishes and oversees the Federal Project Manager career/professional
development programs.
6. REFERENCES.
a. OMB Circular A-109, Major System Acquisitions, dated 4-5-76 (to be replaced by
OMB Circular A-11, Part 3).
b. OMB Circular A-11, Part 3, Planning, Budgeting, and Acquisition of Capital Assets,
dated 11-10-99, and the supplement to Part 3, Capital Programming Guide.
c. OMB Circular A-123, Management Accountability and Control, dated 6-21-95.
d. OMB Circular A-127, Financial Management Systems, dated 7-23-99.
e. OMB Circular A-130, Management of Federal Information Resources, dated 2-8-96.
f. OMB Circular A-131, Value Engineering, dated 5-21-93.
g. DOE O 430.1A, LIFE CYCLE ASSET MANAGEMENT, dated 10-14-98.
h. DOE P 413.1, PROGRAM AND PROJECT MANAGEMENT POLICY FOR THE
PLANNING, PROGRAMMING, BUDGETING, AND ACQUISITION OF
CAPITAL ASSETS, dated 6-10-00.
i. DOE M 413.X, MANUAL FOR PROGRAM AND PROJECT MANAGEMENT FOR
THE PLANNING, PROGRAMMING, BUDGETING, AND ACQUISITION OF
CAPITAL ASSETS, to be issued.
j. Department of Energy Acquisition Guide: A DOE Guide to the Award and
Administration of Contracts, Office of Policy, Office of Procurement and Assistance
Management, dated 9-30-98.
7. CONTACT. Questions concerning this Order should be directed to the Office of Engineering
and Construction Management, 202-586-1784.
8. DEFINITIONS.
a. Acquisition Plan. The Acquisition Plan provides the procurement and contracting detail for
elements of a system, program, or project. The Acquisition Plan is execution oriented and
provides the framework for conducting and accomplishing the procurements and includes
actions from solicitation preparation through contract award administration.
b. Acquisition Strategy. The acquisition strategy establishes the framework within which
detailed acquisition planning and program execution are accomplished. The requirements
document describes what DOE needs to buy, while the acquisition strategy describes how
the Department will acquire capital assets. Once approved, it should reflect the approving
authority's decisions on all major aspects of the contemplated acquisition. The acquisition
strategy describes the relationships of essential program elements (e.g., management,
technical, resources, testing, safety, procurement, and contracting).
c. Baseline and Change Control Levels. The project baseline consists of cost, schedule, and
scope as stated on the Project Data Sheet (PDS), the project baseline summary, or similar
documents. A baseline range is established at CD-1, Approve Preliminary Baseline
Range, for tracking purposes. A performance baseline, against which project performance
will be measured, is established at CD-2, Approve Performance Baseline. (See Chapters
1 and 2 for more information on CDs.)
d. Capital Assets. Land, structures, equipment, and information technology (e.g., hardware,
software, and applications) that are used by the Federal Government and have an
estimated useful life of 2 years or more. Capital assets include environmental restoration
(ER) of land (decontamination and decommissioning) to make useful leasehold
improvements and land rights, and assets whose ownership is shared by the Federal
Government with other entities. This Order does not apply to capital assets acquired by
State and local governments or other entities through DOE grants. Capital assets do not
include intangible assets, such as the knowledge resulting from research and development
and education and training.
e. External Independent Review (EIR). An EIR is conducted by reviewers outside the
Department. OECM will select an appropriate contracting agency to contract for such
reviews, excluding the M&O/M&I contractors. The actual selection of reviewers,
contract management and contact with the Contracting Officer, and dialogue with the EIR
contractor on matters pertaining to the contract are the sole purview of OECM. OECM
may make nonproject/nonprogram funds available to pay for the EIR contractor and for
travel expenses of OECM staff participating in such reviews; however, OECM funds are
not available for PSO staff support. The PSO's project management support office
provides coordination for the EIR contractor on site, resolves issues of schedule and
access while on site, gathers and provides requested and proffered information to the
reviewer, and responds to the reviewer on errors of fact or needed clarification. The
project management support office does not provide direction to the reviewer as to the
content of the reviewer's report.
EIRs are managed by OECM as DOE's agent. Line management, including the Deputy
Secretary, PSO, or a program or project organization within the PSO may request an EIR.
EIRs also may be initiated in response to an external requirement, however, reviews,
studies, or investigations conducted by the General Accounting Office or the Office of the
Inspector General are not considered EIRs for DOE purposes. OECM coordinates all
such reviews with the appropriate PSO to define review scope, choose an optimal time
during the acquisition process, minimize impact on the project of conducting multiple
reviews, and evaluate credentials of potential reviewing organizations and individuals.
f. Independent Cost Estimates (ICEs). ICEs are used primarily to verify project cost and
schedule estimates and support the CD-2 process in establishing project performance
baselines. ICEs are part of the Performance Baseline EIR, although an ICE can be
combined with any EIR or IPR for efficiency. ICEs may be requested at other times and
for other reasons. OECM functions as DOE's agent, working through appropriate
Contracting Officers to establish contracts for ICEs. ICEs are documented in formal
reports submitted to the SAE/AE by OECM. Each ICE is reconciled with the current
Program Office estimate by the Federal Project Manager.
g. Independent Project Review (IPRs). An IPR is conducted by reviewers within the
Department. The Deputy Secretary as SAE, or the PSO and the Operations/Field Office
Manager and Program Managers and Federal Project Managers, may authorize or
conduct IPRs as required. The PSO or Operations/Field Office Manager, as part of the
project management oversight process, may request IPRs through the project management
support office for any project, including MS projects. Irrespective of the organizational
level initiating an IPR, the PSO or Operations/Field Office Manager notifies OECM of its
intent to conduct such a review, and OECM is included as an invited observer for all
planned reviews. OECM coordinates the extent of participation on a case-by-case basis
with the appropriate organization. Committee members of an IPR team are not drawn
from the responsible program office within a program secretarial organization, related
contractors from the project office, or a related funding program. Reviews may use
laboratory, contractor, university, or other expertise from organizations not directly funded
by or related to the program/project office being reviewed.
h. Integrated Project Team. Led by the Federal program or project manager, the Integrated
Project Team includes other DOE functional areas such as budget, financial, legal, safety,
and contracting.
i. Major System (MS) Project. Any project or system of projects with a TPC of $400M or
greater or any Other Project so designated by the Office of the Secretary. A project may
be classified as an MS either solely by the Office of the Secretary or by the Deputy
Secretary in response to recommendations from the appropriate PSO or head of a
Departmental office, which is endorsed by the appropriate Under Secretary. OECM
maintains and periodically publishes a list of MS projects.
j. Project. In general, 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, ER, decontamination and decommissioning efforts, information
technology, and large capital equipment or technology development activities. Tasks that
do not include the above elements, such as basic research, grants, ordinary repairs,
maintenance of facilities, and operations are not considered projects.
k. Other Project. Any project with a TPC less than $400M and not designated as an
MS project, including line item projects, general plant projects, and capital equipment,
information technology, whether funded by capital or operating funds.
l. Scope. In the context of DOE program and project management directives, scope is the
sum of the products and services which comprise the capital asset to be provided by a
project. Scope, as defined here, is not the Federal Acquisition Regulation (FAR) definition
of scope.
m. Tailoring. Tailoring is a flexible approach to most aspects of the acquisition of capital
assets. Tailoring can be applied to all projects for oversight, acquisition planning,
performance reviews, reporting, change control, and CDs. In a tailored approach, project
documentation requirements as described in this Order are applied to a level of detail
based on the projects's size, risk, and complexity. However, the tailoring is in the degree
of detail, not in omitting the requirements altogether.
n. Total Estimated Cost (TEC). The TEC of a construction project is the gross cost of the
project, including the cost of land and land rights; engineering, design, and inspection costs;
direct and indirect construction costs; and the cost of initial equipment necessary to place
the plant or installation in operation, whether funded as operating expense or construction.
In recent years Congress has authorized amounts for construction projects exclusive of
amounts for the construction planning and design. In these cases, the amount authorized is
used as a base for TEC, even though it does not include planning and design costs. These
costs are typically capitalized. TEC does not typically apply to ER projects.
o. Total Project Cost (TPC). TPC consists of all the costs included in the TEC of a
construction project plus the preconstruction costs, such as conceptual design and
research and development, as well as the costs associated with the preoperational phase,
such as training and startup costs.
BY ORDER OF THE SECRETARY OF ENERGY:
T.J. GLAUTHIER
DEPUTY SECRETARY REQUIREMENTS
TABLE OF CONTENTS
Page
APPLICABILITY TO NNSA. . . . . . . . . . . . . . . . . . . . .iii
CHAPTER I CRITICAL DECISIONS . . . . . . . . . . . . . . . . .I-1
1. MS Project CDs. . . . . . . . . . . . . . . . . . . . . .I-1
2. Other Project CDs . . . . . . . . . . . . . . . . . . . .I-1
3. Environmental Restoration and Facility Disposition Project CDsI-1
CHAPTER II BASELINE CHANGE CONTROL . . . . . . . . . . . . . II-1
1. Baseline Change Control Approval Authority. . . . . . . II-1
2. Thresholds. . . . . . . . . . . . . . . . . . . . . . . II-1
3. Variances . . . . . . . . . . . . . . . . . . . . . . . II-1
4. Programmatic Baseline Changes . . . . . . . . . . . . . II-1
CHAPTER III ACQUISITION PROCESS. . . . . . . . . . . . . . .III-1
1. Preconceptual Planning. . . . . . . . . . . . . . . . .III-1
2. Risk Identification and Analysis. . . . . . . . . . . .III-1
3. Acquisition Process . . . . . . . . . . . . . . . . . .III-1
4. Acquisition Plan. . . . . . . . . . . . . . . . . . . .III-3
CHAPTER IV PROJECT EXECUTION PROCESS . . . . . . . . . . . . IV-1
1. Project Execution Plan. . . . . . . . . . . . . . . . . IV-1
2. Source Selection Plan . . . . . . . . . . . . . . . . . IV-2
3. Business Clearances . . . . . . . . . . . . . . . . . . IV-2
CHAPTER V ENERGY SYSTEMS ACQUISITION ADVISORY BOARD. . . . . .V-1
1. MS Project ESAABs . . . . . . . . . . . . . . . . . . . .V-1
2. Membership. . . . . . . . . . . . . . . . . . . . . . . .V-1
3. ESAAB Secretariat . . . . . . . . . . . . . . . . . . . .V-1
4. Other Project ESAABs. . . . . . . . . . . . . . . . . . .V-1
5. Delegated Other Project ESAABs. . . . . . . . . . . . . .V-1
6. Discretionary Board Meetings. . . . . . . . . . . . . . .V-1
REQUIREMENTS
TABLE OF CONTENTS (continued)
Page
CHAPTER VI PERFORMANCE REVIEWS AND REPORTING . . . . . . . . VI-1
1. Per. . . . . . . . .VII-1
4. Value Engineering . . . . . . . . . . . . . . . . . . .VII-1
5. Integrated Safety Management. . . . . . . . . . . . . .VII-1
6. Sustainable Building Design . . . . . . . . . . . . . .VII-2
ATTACHMENT 1 CONTRACTOR REQUIREMENTS DOCUMENT
ATTACHMENT 2 AUTHORITY AND ROLES AND RESPONSIBILITIES FOR LINE
MANAGERS
ATTACHMENT 3 DECISION AUTHORITY THRESHOLDS
ATTACHMENT 4 PROJECT ACQUISITION PROCESS AND CRITICAL DECISIONS
ATTACHMENT 5 BASELINE CHANGE CONTROL APPROVAL THRESHOLDS
ATTACHMENT 6 TYPICAL PROJECT PHASES CORRELATE WITH THE FEDERAL
BUDGET PROCESS
ATTACHMENT 7 CHIEF OPERATING OFFICER MAJOR SYSTEM WATCH LIST APPLICABILITY TO THE
NATIONAL NUCLEAR SECURITY ADMINISTRATION
The requirements in the following chapters include organizational responsibilities that are applicable to
DOE, including NNSA. When the organizational responsibilities are identified as DOE, they include
NNSA. Likewise, LPSO and PSO responsibilities also apply to Deputy Administrators for NNSA,
and Operations/Field Office Manager responsibilities also apply to the Field Manager for NNSA
Operations. CHAPTER I
CRITICAL DECISIONS
A Critical Decision (CD) is a formal determination or decision at a specific point in a project phase that
allows the project to proceed to the next phase and commit resources. CDs are required during the
planning and execution of a project; for example, prior to commencement of conceptual design,
commencement of construction, or start of operations. The CDs and the prerequisites for each project
phase are shown in Attachment 4. CDs for traditional construction projects include the following:
CD-0, Approve Mission Need
CD-1, Approve Preliminary Baseline Range
CD-2, Approve Performance Baseline
CD-3, Approve Start of Construction; and
CD-4, Approve Start of Operations or Project Closeout
The project may propose partial or phased CDs. CD determination meetings will be planned so that
necessary documentation and activities can be performed without causing delay in project schedules. A
schedule for planned CDs on all projects over $5M will be provided to OECM.
1. MS PROJECT CDs. All MS project CDs must be proposed by the appropriate PSO, and for
NNSA approved by the Administrator, and approved by the Deputy Secretary as DOE's
designated SAE before proceeding to the next project phase.
2. OTHER PROJECT CDs. All Other Project CDs must be approved by the PSO or delegated
AE.
3. ENVIRONMENTAL RESTORATION (ER) AND FACILITY DISPOSITION PROJECT
CDs. ER and facility disposition projects are driven by the regulatory requirements in the
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) or
Resource Conservation and Recovery Act (RCRA). Therefore CD-0, CD-1,CD-2, and CD-
3 for these projects are different than those of a traditional construction project. The following
CDs are associated with ER and facility disposition projects; however, because of statutory
time limits, potential fines, extensive documentation requirements, and the nature of the CDs,
the SAE/AE, subject to approval of the PSO and notification of OECM, may decide not to
require an ESAAB for all CDs. The CD will be disposed and documented by the SAE/AE.
a. For ER projects, the CDs include:
CD-0, Approve Mission Need. Complete restoration screening process
(preliminary assessment/site investigation) and need assessments.
CD-1, Approve Preliminary Baseline/Proposed Work Plan. Prerequisites
include Remedial Investigation/Feasibility Study and Proposed Work Plan.
CD-2/3 (combined), Approve Performance Baseline. Start field work.
CD-4, Project Closeout. Prerequisite is completion of all administrative, and
closeout activities. Site is transferred into long-term stewardship program.
b. For facility disposition projects, the CDs include:
CD-0, Approve Mission Need.
CD-1 and CD-2, Approve Performance Baseline: CD-1 and CD-2 are
combined. Submit conceptual information (30 to 35 percent of preliminary
design activities) for baseline approval.
CD-3 , Approve Start of Construction or Remedial Action.
CD-4, Approve Start of Operations or Project Closeout.
c. For privatization projects:
Because privatization projects are driven by contractual agreements and shift the risk to
the contractor, the issue of CDs will be addressed in the Acquisition Plan and submitted
to the SAE/AE, as appropriate, for approval. CHAPTER II
BASELINE CHANGE CONTROL
Baseline change control is initiated after CD-1 for design (scope, schedule, cost) control and after CD-
2 for the performance baseline.
1. BASELINE CHANGE CONTROL APPROVAL AUTHORITY. For MS projects and
Other Projects, baseline change approval authority is as follows:
Level 0, the SAE;
Level 1, the PSO;
Level 2, the Federal Project Manager, as delegated by the Operations/Field Office
Manager or Program Manager; and
Level 3, the contractor.
The appropriate PSO proposes and the SAE approves all Level 0 baseline change proposals
and site selections for all facilities for new sites. The PSO must provide a copy of all approved
Level 1 baseline changes to OECM.
2. THRESHOLDS. Thresholds for change control authority for MS and Other Projects will be
documented in the Project Execution Plan. The change control threshold table for MS and
Other Projects is shown in Attachment 3. The appropriate AE (Program Manager or
Operation/Field Office Manager) may delegate Level 2 change control authority to the Federal
Project Manager. This delegation of authority must be stated in the Project Execution Plan.
3. VARIANCES. A variance is a deviation from the approved scope, cost, or schedule
performance. Variances must be tracked and reported. Variances should be mitigated through
corrective actions and not eliminated through baseline change control unless valid rationale can
be presented to justify a change in the baseline. Baseline changes are submitted for changes in
technical, work scope, funding, or other directed changes.
4. PROGRAMMATIC BASELINE CHANGES. Any baseline change caused by a
congressional action, such as an appropriation act that reduces funding, shall follow the baseline
change control process and must be documented and approved by the appropriate SAE/AE
within 4 months from the time the congressional action is enacted. CHAPTER III
ACQUISITION PROCESS
1. PRECONCEPTUAL PLANNING. Preconceptual planning activities will focus on the
program's strategic goals and objectives. The appropriate Federal program and project
managers will form an Integrated Project Team (see paragraph 8) consisting of members from
each organizational and customer element that affects and contributes to the project. Before a
project is formally initiated, the Integrated Project Team should document its consensus on the
project objectives, program and functional requirements, priorities, constraints, and the
Acquisition Strategy and Acquisition Plan.
2. RISK IDENTIFICATION AND ANALYSIS. An essential part of project planning is to
ensure that the risks associated with the project have been identified, analyzed, and determined
to be either eliminated, mitigated, or manageable. Risk identification and analyses should be
continued through the succeeding stages, including the Acquisition Plan and the Project
Execution Plan. Each of the identified risks is monitored at future CD and review points to
ensure that they have been satisfactorily addressed, eliminated, mitigated, or managed.
3. ACQUISITION PROCESS. The acquisition process for all projects is intended to flow in the
following sequence. CD checkpoints occur at the points indicated below.
a. Preparation of the justification of mission need document constitutes the first step in the
acquisition process and initiates preconceptual planning activities. These activities
continue with the preparation of the acquisition strategy, which is normally developed
by DOE Federal officials. This strategy sets forth the management approach that will
be used to ensure that the project contract or system of project contracts satisfies the
approved mission need. The acquisition strategy can be part of the mission need
document, a separate document, or a part of the Acquisition Plan. The elements of the
acquisition strategy will address such issues as whether the acquisition will be
conducted by DOE directly or through an M&O/M&I contractor; the extent of
competition; proposed location of the project site or sites; and project size. The PSO
is responsible for performing a Mission Validation Independent Project Review (IPR)
on all MS projects. This is a limited review of the project prior to CD-0. It validates
the mission need and the funding request. An IPR may be conducted as appropriate to
assist in the CD-0 on Other Projects over $5M. The SAE/AE will have all this material
for consideration in making Critical Decision-0 (see Attachment 4).
b. Once CD-0 is obtained, the AE directs development of the conceptual design, which
results in a Conceptual Design Report, an Acquisition Plan, a preliminary hazard
analysis, a preliminary Project Execution Plan, and preliminary baseline range. The
preliminary baseline range at the design stage consists of a cost, schedule, and scope
for the design phase, and a range for the cost, schedule, and scope for the remainder of
the project. These documents are submitted for SAE/AE approval along with a PSO-
validated PDS for design. The PSOs will establish a project and engineering design
(PED) funding pool for all projects for FY2002 and beyond and for projects over $5M
TPC, as appropriate, in accordance with the DOE Budget Formulation Handbook.
Where long lead procurement is required, a phased CD-3 may be used, subject to
prior budget approval and funding availability. The SAE/AE will consider the above
elements in making Critical Decision-1 (see Attachment 4).
c. Once CD-1 is obtained, PED funds become available for use on preliminary design and
final design, baseline development, and/or a statement of work/request for proposal for
a design/build project. For long lead procurement, a separate budget request for
capital funds (non-PED) may be submitted prior to CD-2 for a partial CD-3
determination. Attachment 6 shows the correlation between typical project phases and
the Federal budget process, with emphasis on PED funding.
The project manager must obtain a draft Preliminary Safety Analysis Report and
National Environmental Policy Act documentation, if appropriate. The project manager
also must finalize the Project Execution Plan and performance baseline and reflect the
results in the PDS for construction funding. A Performance Baseline EIR must be
performed by OECM as agent for the Department on all projects over $5M. This is a
detailed review of the entire project, including an Independent Cost Estimate, prior to
CD-2. It verifies that the mission need is satisfied; validates the proposed technical,
cost, and schedule baseline; and assesses the overall status of the project management
and control system. The results of the EIR together with any corrective actions resulting
from the EIR will be reviewed by OECM and presented to the SAE/AE to assist with
Critical Decision-2 (see Attachment 4).
d. Once CD-2 is obtained, include the project in the budget submission. Final design
would continue with PED funds through completion of the design. If requested and
approved, long lead procurement funds are committed. The draft Preliminary Safety
Analysis Report must be submitted for approval, and the DOE safety evaluation report
will be issued, as appropriate. An Execution Readiness EIR must be performed by
OECM on MS projects, and an IPR must be performed by the appropriate AE for
Other Projects over $5M. This is a general review of the project prior to CD-3 that
may range from an abridged review of specific areas within a project to a
comprehensive review of the entire project. As a minimum, it verifies the readiness of
the project to proceed into construction or remedial action. The results of the EIR/IPR
and any corrective actions resulting from the EIR/IPR shall be reviewed by OECM and
shall be presented to the AE and ESAAB equivalent board in conjunction with CD-3.
The AE may request an EIR in lieu of an IPR through OECM. The Project Execution
Plan and performance baseline will be updated, if required. These activities will be
considered by the SAE/AE in making Critical Decision-3 (see Attachment 4).
e. Once CD-3 is obtained, execute and complete all project activities, including
construction where required. Complete transition to operations planning activities,
including DOE approval of Environmental, Safety and Health documentation, an
operational readiness review, and an acceptance report. These activities will lead to
Critical Decision-4 (see Attachment 4).
4. ACQUISITION PLAN. The Acquisition Plan provides a description of the contractual means
by which the project's acquisition strategy will be carried out. Use of such a plan reduces
acquisition lead time and ensures consistency in the preparation of project conceptual execution
documents by providing all those involved in project management with specific information
about project business objectives. The Acquisition Plan for every project contract specifies the
organization (DOE or contractor) identified in the acquisition strategy to execute the project
management functions.
a. DOE Award. The Acquisition Plan for acquiring a project or system of projects is
developed by an Integrated Project Team, including, as a minimum, the Program
Manager, the Federal Project Manager (once assigned), and a DOE Contracting
Officer (provided or approved by the Director of Procurement) and approved by the
appropriate SAE or AE. An Acquisition Plan prepared in accordance with Federal
Acquisition Regulation (FAR) Subpart 7.1 (and FAR Part 34 for MS acquisitions) is
required for every project contract or system of project contracts, that will be
accomplished by direct DOE placement. M&O/M&I contractors may be consulted
during the development of the Acquisition Plan for a direct DOE contract placement if
those contractors are not potential competitors for the contract. In all cases, the roles
and responsibilities of those involved in the acquisition process are defined in the plan,
including line and matrix reporting relationships.
b. Contractor Award. For project contracts that will be accomplished by M&O/M&I
contractors, the DOE Contracting Officer must ensure that the contractor's
procurement system requires a written Acquisition Plan that is appropriate for the
requirements and dollar value of each contract and consistent with the intent of the
FAR. The Acquisition Plan for a project contract to be awarded by an M&O/M&I
contractor is developed by a team of contractor employees including, as a minimum, the
prospective Project Manager and Contract Negotiator. The Acquisition Plan will also
be concurred in by the DOE Contracting Officer.
c. Acquisition Plan Elements. The Acquisition Plan required by the FAR Subpart 7.1
(and FAR Part 34 for MS projects) may be one document containing elements as
shown in those sections of the FAR. This Acquisition Plan will document the
requirements of the both parts of the FAR (as applicable) and includes, but is not
limited to:
background and objectives, including mission need statement
description of the program of which the project(s) is a part
cost, budget, funding, and life cycle considerations
plan of action, including
- possible sources
- a performance-based contractor incentive process
- methods of competition
- options for source selection procedures
- justification for non-competitive acquisitions if this is recommended
- contracting options and milestones for the acquisition, and
- a statement as to whether the Government or a prime contractor will
conduct the competition
risk analysis, and mitigation strategies
schedules, including milestones
business considerations, including
- Government roles
- contractor roles
- interrelationships between contractors
- interagency cooperation
- Government-furnished property
- security
- international cooperation and considerations
- make-or-buy considerations
- warranty
- licensing considerations
- safety
logistics considerations, including contractor and agency support, computer-
aided acquisition systems, and other technical considerations
a recommendation forwarding the plan to the approving authority and signed by
all members of the team
approval
d. Tailoring. (See paragraph 8.) The Acquisition Plan may be tailored to suit the size,
risk, and complexity of the project. Tailoring is in the degree of detail, not in omitting
the requirements altogether. The elements listed above for the Acquisition Plan are not
intended to be all inclusive, nor may all the elements apply to each project. The
rationale for the tailoring should be presented to the SAE/AE.
e. Approval Authority. The Acquisition Plan approval authority is the appropriate SAE or
AE. CHAPTER IV
PROJECT EXECUTION PROCESS
This chapter outlines the process and documents leading to project award.
1. PROJECT EXECUTION PLAN. The Project Execution Plan is the primary agreement on
project planning and objectives between the Headquarters Program Office and the Field, which
establishes roles and responsibilities and defines how the project will be executed. Of the
elements described in this chapter, the Project Execution Plan, once approved, becomes a
significant tool for the Project Manager through the life of the project. The Headquarters or
Field Program Manager and/or the Federal Project Manager initiates a Project Execution Plan.
Development of the preliminary Project Execution Plan can be started by the prime contractor
or M&O/M&I at the same time as development of the Acquisition Plan or shortly after. The
two plans should be synchronized. If the approved Acquisition Plan indicates that the
M&O/M&I contractor has a role in the acquisition of the project as prime
contractor/integrator, the M&O/M&I contractor may participate with DOE in development of
the final Project Execution Plan.
a. Project Execution Plan Elements. All projects will have both preliminary and final
Project Execution Plans that are approved by the appropriate SAE/AE. Elements of
the Project Execution Plan may be included by reference. Minimum elements of this
plan are the following:
mission need justification/project objectives
project description
organizational structure; roles, responsibilities, and authorities; and
accountability, including decision authority for Headquarters and Field Element,
program and project management and support functions, safety analysis
support functions such as health physics, Environment, Safety and Health,
National Environmental Policy Act documentation, etc.
resource requirements
technical considerations, including
extent of research and development and its relationship to the project
value engineering
test and evaluation
Environment, Safety and Health
Integrated Safety Management
sustainable building design
configuration management
system engineering, and
reliability, maintainability, and quality assurance
project cost, schedule, and scope baselines (or preliminary baseline ranges for
a preliminary Project Execution Plan), including separately identified
contingencies, and descriptions of Levels 0, 1, 2, and 3 baseline change control
thresholds
life-cycle cost
alternatives, trade-offs
Risk Management Plan
Integrated Safety Management Plan
project controls system and reporting system
Acquisition Plan
b. Tailoring. (See paragraph 8.) The Project Execution Plan may be tailored to suit the
size, risk, and complexity of the project. Tailoring is in the degree of detail, not in
omitting the requirements altogether. The elements listed above for the Project
Execution Plan are not intended to be all inclusive, nor may all the elements apply to
each project. The rationale for the tailoring should be presented to the SAE/AE
c. Approval Authority. The Project Execution Plan approval authority is the appropriate
SAE or AE.
2. SOURCE SELECTION PLAN. If the Acquisition Plan determines that any contractor for the
project will be acquired competitively, a Source Selection Plan must be developed in
accordance with FAR Part 15.3 and DEAR Part 915.3. This plan will outline the criteria for
selection, including technical factors (such as approach, technical risk, life cycle cost, and
management approach); cost factors (including evaluation of reasonableness and risk); and an
overall risk assessment. If the M&O/M&I contractor will be the prime contractor, it will
develop this plan and seek approval from the appropriate procurement authority before
beginning the source selection process.
When the source selection board completes the source selection process (following the
requirements indicated in the Source Selection Plan), the appropriate procurement authority
(either DOE or the M&O/M&I contractor) will prepare a Source Selection Board Report. If
DOE prepares the report, the board members will sign and submit that report to the
appropriate source selection authority for approval.
3. BUSINESS CLEARANCES. If the acquisition procurement contract is to be individually
negotiated (rather than being selected through an evaluation of price and other factors), the
appropriate authority should prepare both the pre- and post-negotiation business clearances in
accordance with Department of Energy Acquisition Guide, Chapter 71. The pre-negotiation
business clearance will specify the negotiation strategy and objectives for the elements included
in the request for proposal for cost and fee, drawn from the Government estimate. The post-
negotiation business clearance will show how the contractor's proposed cost and fee elements
were resolved, compared to the pre-negotiation business clearance. Each business clearance is
approved by the warranted DOE Contracting Officer. Negotiations cannot begin until the pre-
negotiation business clearance has been approved. Note: The SAE or AE may require
clearance approval at their levels. If the M&O/M&I contractor is handling the procurement,
Department of Energy Acquisition Guide requires that the contractor obtain approval of the
same reports prior to negotiations and award, as applicable. CHAPTER V
ENERGY SYSTEMS ACQUISITION ADVISORY BOARD
1. MS PROJECT ESAABs. The ESAAB advises the SAE in making MS project CDs, Level 0
baseline changes, and site selections for facilities for new sites. The ESAAB meets once every
2 months, or at the call of the SAE.
2. MEMBERSHIP. ESAAB membership includes the SAE as chair; the Under Secretaries; the
DOE General Counsel; the Chief Financial Officer; the Director of OECM; the Assistant
Secretary for Environment, Safety and Health; the Assistant Secretary for Environmental
Management; the Deputy Administrator for Defense Programs; the Director for Office of
Science; and the Director of Procurement and Assistance Management. The Deputy Secretary
may designate other PSOs or functional staff as board members as needed.
3. ESAAB SECRETARIAT. The ESAAB Secretariat resides in OECM and provides
administrative and analytical support and recommendations to the ESAAB.
4. OTHER PROJECT ESAABs. Each appropriate PSO appoints an ESAAB-equivalent board
for advising on actions regarding those projects within the PSO office that are not MS projects.
The PSO serves as AE for these projects and as chair of the ESAAB-equivalent board. The
ESAAB-equivalent board replicates and conducts the same functions as those performed by
the corporate ESAAB. Members may be selected from within the PSO's office or from other
Headquarters functions having Departmental responsibility. At least one member is from a
different PSO office and is designated by the contributing PSO. OECM provides a member of
each ESAAB-equivalent board for projects $100M and greater. Each PSO provides the
composition of its ESAAB-equivalent board to OECM.
5. DELEGATED OTHER PROJECT ESAABs. The PSO may delegate equivalent AE
functions, including decision approvals, for those Other Projects below $100M to an SES
Program Manager or an Operations/Field Office Manager. For those delegated Other Projects
less than $20M, the Program Manager or Operations/Field Office Manager may further
delegate equivalent AE functions to a direct reporting SES subordinate. Attachment 3 provides
an overview of the allowable AE delegations. The AE so designated establishes and chairs an
ESAAB-equivalent board, notifies OECM of its composition, invites OECM to all board
meetings, and provides all agendas and minutes to the appropriate PSO project management
support office. However, OECM is not a board member.
6. DISCRETIONARY BOARD MEETINGS. The SAE/AE may, at their discretion, dispense
with an ESAAB or ESAAB-equivalent board meeting when making CD-0 and CD-4, or
programmatic baseline changes (see Chapter II, paragraph 4). This does not obviate the need
for the AE to document relevant considerations nor the decision itself.
CHAPTER VI
PERFORMANCE REVIEWS AND REPORTING
1. PERFORMANCE REVIEWS. For all projects, the appropriate AE conducts a quarterly
project performance review with the Federal Project Manager and staff. The contractor may
participate in this review as appropriate. For MS projects, the schedule and agenda are
coordinated with OECM, and OECM is invited to participate with the PSO in the review.
Quarterly performance reviews for Other Projects with TPCs less than $100M may be
delegated to a SES Program Manager or Operations/Field Office Manager. The contractor
may participate in this review as appropriate. OECM is invited to participate in all performance
reviews for projects with a TPC over $5M.
2. INDEPENDENT REVIEWS. DOE recognizes that independent reviews are valuable in
assessing the status and health of its projects. An independent review is conducted by a non-
proponent of the project. It may be a science-based or engineering-oriented peer review, a
review of the project management structure and interrelationships between key organizational
components, a review targeted to a specific issue such as cost or budget, a review covering
safety, or a combination thereof. Independent reviews may be combined for efficiency, as
appropriate. For definitions of such reviews see paragraph 8; for application of these reviews
see Chapter III.
3. REPORTING. The Federal Project Manager submits monthly and/or quarterly project status
reports to line management, the project management support office, and OECM using the data
elements, analyses, and other information specified in the DOE Program and Project
Management Manual (see paragraph 6, of the Order). Project reporting typically begins during
CD-0 with (1) a comparison of contractor performance with the conceptual design schedule
and cost plan and (2) a comparison of earned value performance against the preliminary
baseline range at CD-1. Reporting of earned value performance with the performance baseline
is initiated at CD-2. The Program Manager and Federal Project Manager will define specific
reporting requirements in the appropriate project documentation. At a minimum, such reports
for projects with TPCs greater than $20M include the Earned Value Management System
peral Project Managers and their appropriate PSOs
are required to inform the Deputy Secretary, with a copy to OECM, on project issues that may
contribute to an expected unfavorable Level 0 scope change, an expected unfavorable Level 0
milestone schedule variance, or an expected unfavorable Level 0 cost variance in TEC and/or
TPC. Projects that encounter significant cost and schedule variances and/or technical issues or
projects that develop other problems may be placed on the Chief Operating Officer Watch List
and could face funding consequences. Once placed on this list, projects require corrective
action plans, specific corporate reporting requirements, and periodic review by the Deputy
Secretary, arranged through OECM. These projects will be released from the list when Watch
List milestones are completed, progress on corrective action warrants, or the project recovers
(i.e., the variances fall back within established criteria). A flow diagram of the steps and criteria
used in the Chief Operating Officer Watch List is shown in Attachment 7.
2. Project Manager Development. OECM, in coordination with the program and other DOE
support offices, is responsible for establishing and monitoring a project manager development
program for Federal program and project managers and other staff involved in project
acquisition.
3. Contractor Project Management System. The DOE prime contractor's project management
system must satisfy, at a minimum, the requirements specified in the CRD, Attachment 1. These
requirements must be included in all project acquisition solicitations and contracts. Contractor
compliance with these requirements will be determined through the use of DOE reviews of
contractor project management system descriptions, procedures, and operations.
Contracts with project TPCs of $20M or more except for time-and-materials contracts,
firm fixed-price contracts, or level-of-effort support contracts must use Earned Value
Management Systems. However, these contractors must have adequate control systems that
suit the nature of the project and reflect good business practices. The head of the contracting
activity is responsible for ensuring that all applicable CRD provisions are included in project
contracts.
4. Value Engineering. DOE is committed to the use of value engineering to derive the lowest life-
cycle cost of a capital asset. Value engineering yields the greatest cost savings when applied
during the planning and design phases of a project. Value engineering should also be used
during the construction phase of a project.
5. Integrated Safety Management. Safety must be integrated into both Federal and contractor
management and work practices at all levels in compliance with DOE P 450.4, SAFETY
MANAGEMENT SYSTEM POLICY; DOE P 411.1, SAFETY MANAGEMENT
FUNCTIONS, RESPONSIBILITIES, AND AUTHORITIES POLICY; and DOE M
411.1-1A, SAFETY MANAGEMENT FUNCTIONS, RESPONSIBILITIES, AND
AUTHORITIES MANUAL. Missions will be accomplished through effective integration of
safety management into all design and construction phases of a project while protecting the
public, the worker, and the environment. For facilities that contain hazardous materials,
continuous coordination is necessary between the facility design process and the parallel
development of the safety analysis.
6. Sustainable Building Design. New Federal buildings must meet or exceed energy efficiency
standards established under the Energy Policy Act, Public Law 102-486, Section 305.
Sustainable building design principles must be applied to the siting, design, and construction of
new facilities. CONTRACTOR REQUIREMENTS DOCUMENT
DOE O 413.3, PROJECT MANAGEMENT
FOR THE ACQUISITION OF CAPITAL ASSETS
The Department of Energy (DOE) prime contractor's project management system must satisfy the
following requirements.
1. The industry standard for project control systems described in American National Standards
Institute (ANSI) EIA-748, Earned Value Management Systems, must be implemented on all
projects with a total project cost (TPC) greater than $20M for control of project performance
during the project execution phase.
2. Cost and schedule performance, milestone status, and financial status must be reported to DOE
on a monthly basis using DOE-approved work breakdown structure elements and data
elements for all projects with a TPC greater than or equal to $20M, except for time-and-
materials contracts, firm fixed-priced contracts, or level-of-effort support contracts, for control
of project performance during the project execution phase. The report must also include
variance analyses and corrective action plans that integrate cost, schedule, and scope if
variances exceed DOE-established reporting thresholds. Also reported will be analyses of cost
and schedule trends, financial status, and baseline change control activity, including the
allocation of management reserve, potential problems, and critical issues.
3. For project contracts that will be accomplished by M&O/M&I contractors, the contractor
must have a written Acquisition Plan that is appropriate for the requirement and dollar value of
each contract and consistent with the intent of the FAR. The Acquisition Plan for a project
contract to be awarded by an M&O/M&I contractor is developed by a team of contractor
employees including, as a minimum, the prospective Project Manager and Contract Negotiator.
The Acquisition Plan will also be concurred in by the DOE Contracting Officer.
4. Technical performance analyses and corrective action plans must be reported to DOE for
variances to the project baseline objectives resulting from design reviews, component and
system tests, and simulations.
5. A critical path schedule and a project master schedule must be developed and maintained.
6. Cost estimating must be an integral part of cost baseline and life-cycle cost development and
maintenance, budget request development, and estimates at completion.
7. Project technical, cost, and schedule risks must be identified, quantified, and mitigated (as
appropriate). Risk mitigation strategies must be developed and implemented.
8. An integrated contractor technical, cost, and schedule baseline must be developed and
maintained through the use of a contractor-level change control board.
9. A configuration management process must be established that controls changes to the physical
configuration of project facilities, structures, systems, and components in compliance with
ANSI/EIA-649, National Consensus Standard for Configuration Management. This
process must also ensure that the configuration is in agreement with the performance objectives
in the technical baseline.
10. A value engineering process must be used that identifies high-cost project activities in order to
realize a maximum return on investment through the use of systems engineering trade-offs and
functional analyses that identify alternate means of achieving the same function at a lower life-
cycle cost.
11. A quality assurance program must be developed and implemented for the contract scope of
work in compliance with DOE O 414.1A, QUALITY ASSURANCE, at the beginning of the
project and maintained over the project life. This program must assign responsibilities and
authority for quality, define policy and requirements, and provide for the performance and
assessment of work.
12. An Integrated Safety Management system must be developed and implemented for the contract
scope of work in compliance with DEAR 970-5204-2, Integration of Environmental, Safety
and Health into Work Planning and Execution.
13. Sustainable building design principles must be applied to the siting, design, and construction of
new facilities.
AUTHORITY AND ROLES AND RESPONSIBILITY FOR LINE MANAGERS
Approval Authority
Roles and Responsibilities
Deputy Secretary
Policy and procedures
Critical Decisions for MS projects
Conceptual Design Report, Project Execution
Plan, Acquisition Plan and documents for MS
projects
Site selections for facilities for new sites
Level 0 baseline changes
Deputy Secretary
Secretarial Acquisition Executive for all projects
Develop Policy and procedures
Select and monitor Chief Operating Officer
Watch List projects
Direct External Independent Reviews and other
reviews
Chair ESAAB
Delegate project authority as appropriate
Program Secretarial Officer
Acquisition Executive delegation of Other
Projects of less than $100M to an SES Program
Manager or Operations/Field Office Manager
Critical Decisions for Other Projects
Federal Project Manager selection
Conceptual Design Report, Project Execution
Plan, Acquisition Plan, and documents for Other
Projects
Level 1 baseline changes
Program Secretarial Officer
Acquisition Executive as delegated for Other
Projects
Conduct performance reviews
Chair ESAAB-equivalent board
Direct Independent Project Reviews, and other
reviews
Delegate project authority as appropriate
Program Manager
Approval authority as delegated by PSO for
Conceptual Design Report, Project Execution
Plan, Acquisition Plan and project documents
for Other Projects
Level 2 baseline change (per Project Execution
Plan with delegation allowed to the Federal
Project Manager)
Program Manager
Acquisition Executive as delegated for Other
Projects
Develop Acquisition Plan
Chair ESAAB-equivalent board, if delegated as
the Acquisition Executive
Direct Independent Project Reviews, and other
reviews
Conduct performance reviews
AUTHORITY AND ROLES AND RESPONSIBILITY FOR LINE MANAGERS
Approval Authority
Roles and Responsibilities
Operations/Field Office Manager
Acquisition Executive of Other Projects of less
than $20M to a direct reporting SES subordinate
Approval authority as delegated by PSO for
Conceptual Design Report, Project Execution
Plan, Acquisition Plan, and documents for Other
Projects
Level 2 baseline change (per Project Execution
Plan with delegation allowed to the Federal
Project Manager)
Operations/Field Office Manager
Acquisition Executive as delegated for Other
Projects
Chair ESAAB-equivalent board, if delegated as
the Acquisition Executive
Conduct performance reviews
Support Federal Project Manager support
functions
Direct Independent Project Reviews, and other
reviews
Federal Project Manager
Level 2 baseline changes, as delegated by the
Program Manager or Operations/Field Office
Manager in accordance with the Project
Execution Plan
Project reporting
Federal Project Manager
Develop Acquisition Plan
Develop Project Execution Plan
Conduct project performance reviews and
report results to senior officials
Manage and direct contractor as the
Contracting Officer's Technical Representative,
as assigned by the Contracting Officer
Manage Independent Project Reviews, and
other reviews
Allocate project funding and authorize work
activities
Contractor Project Manager
Approval authority as directed by the contract
Level 3 baseline change (per Project Execution
Plan)
Contractor Project Manager
Roles and responsibilities as required by the
contract. For example:
Develop/assist Project Execution Plan
Execute scope of work
Report to Federal Project Manager for
project execution
PROJECT ACQUISITION PROCESS AND CRITICAL DECISIONS
Project Planning Phase
Project Execution Phase
Mission
Preconceptual
Planning
Conceptual
Design
Preliminary
Design
Final
Design
Construction
Operations
CD-0 CD-1 CD-2 CD-3 CD-4
Approve
Mission Need
Approve
Preliminary
Baseline Range
Approve
Performance
Baseline
Approve Start of
Construction
Approve Start of
Operations or
Project Closeout
See Page 2 for CDs on Environmental Restoration and Facility Disposition Projects
CD-0
CD-1
CD-2
CD-3
CD-4
Actions Authorized by Critical Decision Approval
Proceed with
conceptual design
using program funds
Request PED
funding
Allow
expenditure
of PED
funds for
design
Establish baseline
budget for construction
Continue design
Request construction
funding
Approve
expenditure of
funds for
construction
Allow start of
operations or
project closeout
Critical Decision Prerequisites
Justification of
mission need
document
Acquisition Strategy
Preconceptual
planning
Mission Need
Independent Project
Review
Acquisition
Plan
Conceptual
Design
Report
Preliminary
Project
Execution
Plan and
baseline
range
Project Data
Sheet for
design
Verification
of mission
need
Preliminary
Hazard
Analysis
Report
Preliminary design
Review of contractor
project management
system
Final Project Execution
Plan and performance
baseline
Independent cost
estimate
National Environmental
Policy Act
documentation
Project Data Sheet for
construction
Draft Preliminary Safety
Analysis Report
Performance Baseline
External Independent
Review
Update Project
Execution Plan
and
performance
baseline
Final design
and
procurement
packages (**)
Verification of
mission need
Budget and
congressional
authorization
and
appropriation
enacted
Approval of
Safety
documentation
Execution
Readiness
Independent
Review
Operational
Readiness
Review and
acceptance
report
Project
transition to
operations
report
Final Safety
Analysis Report
After CD-4
Closeout
Project
closeout report
(**) To the degree appropriate to initiate construction as scheduled.
CRITICAL DECISIONS FOR ENVIRONMENTAL RESTORATION PROJECTS
Project Planning Phase
Project Execution Phase
Mission
Preconceptual
Planning
Conceptual
Design
Preliminary
Design
Final
Design
Construction
Operations
CD-0 CD-1 CD-2/3 CD-4
Approve
Mission
Need
Approve
Preliminary
Baseline/
Proposed Work
Plan
Approve
Baseline,
Start Field Work
Approve
Start of
Operations or
Project Closeout
CRITICAL DECISIONS FOR FACILITY DISPOSITION PROJECTS
Project Planning Phase
Project Execution Phase
Mission
Preconceptual
Planning
Conceptual
Design
Preliminary
Design
Final
Design
Construction
Operations
CD-0 CD-1 / CD-2 CD-3 CD-4
(Combined Decision)
Approve
Mission
Need
Approve
Performance
Baseline
Approve
Start of
Construction or
Remedial
Action
Approve
Start of
Operations or
Project
Closeout
BASELINE CHANGE CONTROL APPROVAL THRESHOLDS
1. APPROVAL AUTHORITY
Level 0 Changes - Secretarial Acquisition Executive
Level 1 Changes - Program Secretarial Officer
Level 2 Changes - Federal Project Manager as delegated by the
Operations/Field Office Manager or Program Manager
Level 3 Changes - Contractor
2.a MAJOR SYSTEM PROJECTS
Major System
Level 0
Level 1
Level 2/3
Technical
Scope
Changes to scope that
affect mission need
requirements.
Changes to scope that
may affect operation
functions but does not
affect mission need.
As defined in the Project
Execution Plan.
Schedule
6 or more months
increase (cumulative) in a
project-level schedule
milestone date.
3 to 6 months increase
(cumulative) in a project-
level schedule milestone
date.
As defined in the Project
Execution Plan.
Cost
Any increase in Total
Project Cost and/or
increase in Total
Estimated Cost. **
Project cost sub-elements
as defined in the Project
Execution Plan.
As defined in the Project
Execution Plan.
2.b OTHER PROJECTS
Other Projects
*
Level 0
Level 1
Level 2/3
Technical
Scope
New scope/performance
not in conformance with
current approved Project
Data Sheet
Changes to scope that
affect mission need
requirements.
As defined in the Project
Execution Plan.
Schedule
6 or more months
increase (cumulative) in a
project-level schedule
milestone date.
3-6 or more months
increase (cumulative) in a
project-level schedule
milestone date.
As defined in the Project
Execution Plan.
Cost
Baseline change of $5M,
or 25 percent of Total
Project Cost and/or Total
Estimated Cost
(whichever is less)
Any increase in Total
Project Cost and/or
increase in Total
Estimated Cost.**
As defined in the Project
Execution Plan.
* For Other Projects less than $100M, the PSO may delegate Level 1 approval authority to the Program Manager or
Operations/Field Office Manager. General plant projects, accelerator improvement projects, capital equipment
projects, and operating expense funded projects that are $5M or less are the responsibility of the Federal
Project Manager as delegated by the Operations/Field Office Manager.
** Total Estimated Cost does not apply to environmental restoration projects.
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