Large Facility Projects (LFP) – Guidelines & Procedures Manual

1. Large Facility Projects (LFP) – Guidelines & Procedures Manual Status Report to the NSB Jack Lightbody Interim LFP Deputy, BFA October 10, 2002

2. Why the focus on facilities? • Tools (largely facilities) investment of $1.1B in FY02 • Increasing number, complexity, cost, and visibility • Growing interest in Congress, OMB, and OIG • Issues encountered: • defining facility lifecycle stages, determining costs • priority setting • Need for: • enhanced capability to estimate costs and provide oversight • ability to meet and stick to cost and schedule commitment • implementation of the Large Facility Projects Management & Oversight Plan (D/LFP, Manual, ...)

3. Guidelines and Procedures Drafting Group • Charged in late November, 2001 • Examine processes used by NSF and other federal agencies • Suggest levels of project management and oversight that are commensurate with complexity and risk • Develop guidelines and procedures to serve as a Manual for NSF and its Awardees

4. The Drafting Group • Representatives from each directorate/office • Rich Behnke, GEO • Henry Gholz, BIO • Paul Herer, O/D • Rich Hirsh, CISE • Sue LaFratta, BFA/DGA, Executive Secretary • Jack Lightbody, MPS, Chair • Joy Pauschke, ENG • Brian Stone, OPP • Ken Whang, EHR

5. Framework of the Manual • Define the lifecycle stages: • Concept; Development; Implementation; Operations & Maintenance; Renewal (re-compete), Upgrade, or Termination • Requirements: • Common Framework; Accountability and Authority; Decision Points; Budgeting and Funding; Documentation; Oversight, Reviews, and Reporting • Procedures and Best Practices: • Details at each stage, responsibilities of POs and Awardees • Special Topics (covered in appendices): • NSF Review and Approval and the Federal Budget Process; Budgeting and Funding; Risk Assessment and Management; Documentation; Oversight, Reviews, and Reporting

6. Lifecycle Stages • Concept: • Conceptual design, cost, schedule, performance goals; partnership plans and possibilities; community interactions (Long Range Planning); alternative technologies identified; NSF role; IT needs; conceptual funding plan, including operations; DD, AD approval and, if eligible, submit to the MREFC Panel ‘running list’ of projects • Development: • R&D completed, feasibility established; proposal developed (S&E need, importance, impacts, outcomes, project execution plan); internal mgmt plan developed by NSF; partnerships finalized; project review and approval process (MREFC Panel, Director, NSB), Congress appropriation, NSB approval of award

7. Lifecycle Stages (cont.1) • Implementation (construction or acquisition) • Awardee executes and controls project; NSF PO oversees project; external reviews of cost, schedule, technical progress; commissioning/testing, leading to acceptance; development of operations proposal, review, approval • Operations & Maintenance • Awardee operates facility, manages/allocates resources for research and educational program; provides for maintenance, periodic technical enhancements; PO conducts periodic external reviews of program, interacts with community, conducts comprehensive review to decide on renewal, re-competition, upgrade, or termination; DD&AD approve PO recommendation

8. Lifecycle Stages (cont.2) • Renewal, Re-competition, Upgrade, Terminate • Facility still meeting community goals and community still actively engaged? • Facility still a high priority of the field (Long Range Plan)? • Facility still places U.S. in a leadership position? • Facility operating efficiently, cost effectively; or are there more cost effective, new alternative technologies? • What are the research and educational opportunities being lost (the opportunity costs)? • Cost-effective upgrade path available? Phase out or terminate? Alternative landlords? What are the costs of phase-out?

9. Best Practices – a few examples • Consider all project phases at the outset: understand and define them clearly; understand the interfaces • Budget up front: analyze costs, cash flow, identify funding sources, secure commitments, understand cost categories • Start partnerships early: clarify NSF policies & procedures • Utilize project management tools: baselines, critical path analysis, earned value, cost & schedule variances, contingency mgmt, risk analysis, … • Review all aspects of project: cost, schedule, technical, business, and mgmt; clarify requirements for PDs and awardees • Plan for IT needs: use Moore’s law, look beyond (Grid, ...)

10. Budgeting and Funding • “The budget should include not only the cost to implement the project ... but it should also identify and estimate all costs to operate the facility ...” • “The (NSF) plan should also specify the sources of all NSF funds and any plans to share costs between Directorates/Offices and with partners.” • “When funds from (MREFC, EHR, and R&RA) appropriations are obligated under a single award, the award instrument must include provisions that specify the account to which expenditures are to be charged and restrict any reprogramming ... by the Awardee”.

11. Internal Management Plan [NSF] • Science/engineering needs justification • Technical feasibility, R&D path articulated • Annual funding profile, cash-flow analysis • Proposal generation and review process • Awardee Project Execution Plan • Organizational structure: lines of authority, responsibility, communications - NSF, awardee, partners, other interfaces • Oversight, reviews, and reporting • Transition plan Implementation to Ops

12. Project Execution Plan [Awardee] • Organizational Structure (Project Manager, ...) • Baseline Project Definition, Work Breakdown Structure • Risk Assessment and Mgmt • Contingency Mgmt, Configuration Mgmt, Change Control • QA/QC;, Environment, Health, and Safety • Financial, Business Operations Controls • System Integration, Commissioning, Acceptance • Transition Plan: Implementation to Operations/Maint. • Tracking systems (scheduling, resource loading, critical path analysis, earned value, variances, cost and schedule performance, ...)

13. Improving NSF Management/Oversight • Facility Panel: • Reviews project Internal Management Plan and advises Program Officers (POs) on appropriate level of management, how to manage and oversee projects, difficulties that may be encountered, and shares lessons learned • Members: POs (3), BFA staff (3); LFP Director (chair) • Project Advisory Team (PAT): • Project specific; standing advisory group to advise PO on all aspects of project, periodic meetings (bi-weekly, monthly, ...) • Members: BFA/DGA, BFA/CPO, OGC, OLPA, INT, other POs • Program Officers and Staffing: • Need experience in project management, adequacy in number