DOE Review of the LCLS Project

1. DOE Review of the LCLS Project Status of Project Management M. Reichanadter LCLS Deputy Project Director

2. Outline • Baseline Changes and Documentation • Managing Cost Growth • Risk Identification and Management • SLAC Management Oversight and Support • Procurement Management • Integration, Installation & Commissioning • Summary

3. Contingency Allocation to Date • Majority of contingency allocation is in CF. • CF baseline – Title I design, parametric cost estimate. Stable since August 2006

4. TEC Contingency Performance • Steady, consistent rise in project % complete. • Recent downturn due to CR. • Two dips in contingency% • 30% T2 Cost Estimate • Subcontract Bids • Apr07 Pending BCR’s • $630K - UN CT Install • $198K - Dump Shielding • $287K - Turner 2nd shift • PBCR’s are included in EAC calculation.

5. Continuing Resolution ETC @ System Level • Supporting details are included in backup documentation

6. Contingency Assessment • ~10% reserved for awarded contracts • ~25% contingency on commitments to go. • Greatest cost risk • Design, Assemble, Test • Install, Construct

7. Monte Carlo Contingency Analysis • Monte Carlo analysis • Uniform probability distribution for each level 2 WBS element • lower bound of 1X baseline cost estimate • upper bound of 1.40 x (bottoms-up contingency assessment) • Equivalent to 60% probability that actual cost is below the bottoms-up cost+contingency • Analysis provides that project can be completed for a TEC = $339M with a 90% confidence level.

8. Contingency reserve on construction • Recent DOE construction contingency experience • ORNL – Spallation Neutron Source • 5.7% - Errors, Omissions & Site Conditions • 18.0% - Owner directed changes • LBNL – Molecular Foundry • 4.7% - Errors, Omissions & Site Conditions • 4.8% - Owner directed changes (late in the game) • SLAC – Linac Coherent Light Source • 10% - Contingency reserved for remaining construction • 4% - Experience to date on construction accomplished • LCLS “Owner” Changes are anticipated to be small. • Design is ~stable. Scope is ~fixed.

9. Risk Identification & Management • LCLS Senior Management reviews risks monthly. • Add/retire risks, evaluate handling plans • Risks are ‘owned’ by LCLS System Managers. • Uniformity in assessing risks across the project • Better execution of resources (FTE’s & $$$) to handle the risks. • High risk items factored into LCLS contingency and EAC.

10. Risk registry identifies key project risks • LCLS Risk Registry is in backup documentation.

11. Procurement Status • Procurement Planning & Acquisition • ~85% of LCLS procurements awarded • LUSI just ramping up, using LCLS ‘cell’ • Weekly LCLS/LUSI Procurement Status Meeting • Track APPs, Procurements in Process • Report on FCOs, CORs, Negotiations • Recently added DOE Tracking Log • Procurement Issues • New LCLS Procurement Manager • Procurement Team relies heavily on consultants • LCLS ramping down, competition from other projects • SLAC recognizes need to recruit high-quality procurement professionals • Long-term strategic issue for SLAC. LCLS working with BSD.

12. SLAC Management & Oversight • Good interaction between LCLS and SLAC Management • Twice weekly with SLAC Management (DOE FPD/DFPD included) • Status/check-off, coordination, emerging issues • SLAC management involved in high-level Turner partnering • SLAC management’s ‘gang of five’ includes LCLS PD (Galayda) • PMOG reports to SLAC Director • Regular (monthly) interaction w/project • Conducted installation readiness review, help on vacuum chamber, etc. • Transition to Ops is being worked in close collaboration w/LCLS • SLAC resources support LCLS programmatic space renovation • Project striving to maintain flexibility on endgame • SLAC Director briefings to lab management (including LCLS) • Consultant interviewing key managers and programs/projects • See Galayda talk on transition to ops

13. Integration, Installation & Commissioning • Integration Mgmt Team facilitates installation tasks • Directed by RM Boyce (staff of 6) • Centrally coordinates installation readiness & planning • Review and ‘own’ ICD’s, Gaps, Conflicts • CF-Tech leads for construction • Revised cost and schedule consistent with plans for installation, commissioning and transition to ops • L4, hardware RFI milestones tracked to monitor float • Track status in weekly installation meetings (RMB talk) • Use completion milestones to transition to operations • Start-Up plan (in rev) describes commissioning steps

14. Summary • Contingency allocation in CF has been stable since Aug06. • Significant portion of remaining work is under contract. • Remaining cost risk will be in design, testing and assembly (labor costs) and installation contracts. • Contingency is considered adequate to address the project’s risks for the remainder of the project. • Project risks are evaluated monthly at the tactical level in the LCLS Risk Registry. • ~85% of all LCLS procurements are awarded. • Installation and uncertainties on LCLS transition to operations will be developed in the near-term.

15. LCLS Technical Specifications • Photon Systems beginning to finalize its design specs • QA Mgr working monitoring dates for PRD’s and ESD’s • Setting up Group to manage LCLS-LUSI Interface

17. FY08 Contingency Forecast

18. FY08 Contingency Forecast