DOE Mini-Review of the LCLS Project

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

2. Outline • Project Progress / Status • Cost and Schedule Performance • EAC Contingency Allocation • Effects of the FY07 CR, Prep for EIR • Revised Project Baseline • Procurement Status • Risk Management • Summary

3. Progress since the last Review • LCLS Performance – Good News • Injector construction, installation and commissioning complete • Linac is recovering from CR effects. • Shutdown underway. Installing BC-2. • Undulators @ SLAC. Prototype vacuum chamber in Sept. • Civil Construction effort fully deployed. • Stronger SLAC and Turner teams in place. • LCLS Performance – Bad News • FY07 funding uncertainties have degraded overall CPI and SPI • Redirected staff, hold procurements. SPI drops to ‘yellow’ • $8M funding reduction in FY07 requires project to replan remaining work. • Move FY07 procurements to FY09, phase NEH/FEH commissioning • DOE directs change to baseline to address the CR effects • EIR scheduled for October 2007

4. LCLS Progress on Approved Baseline • % Planned 63% • % Complete 54% • SPI = 0.85 • CPI = 0.92 • EAC up-trend BCWP down- trend, due to CR • $ total burn rate ~$7-8M per/mo • SLAC labor portion burns ~ $2.5M/mo

5. LCLS TEC Earned Value (through Jul07) • Cum Work Scheduled (BCWS) $192.7M • Cum Work Performed (BCWP) $163.8M • Cum Actual Costs (ACWP) $181.8M • Estimate at Complete (EAC) $304.6M • Includes all Pending BCR’s and Variances • % Contingency on EAC 7.9% • % contingency dropped from ~22% to 7.9% since Oct06 due to CR and funding uncertainties. Not accomplishing planned work.

6. Cost and Schedule Variance Trend • CV and SV show significant degradation • Redirected staff to address directed rebaseline • Delay and acceleration costs due to CR uncertainty • Defer XT and XE procurements until FY09

7. Rebaseline Timeline • Sep5 – PMOG Meeting • Review revised baseline plan • Cost and schedule contingencies considered adequate • Tighten up FY08 contingency planning • Response to Lehman recommendations ~reasonable • Sep7 – EIR Pre-Briefing Documentation Complete • Sep18 – Mini-Review (Lehman) with DOE-BES • Review revised baseline plan and response to recommendations • Oct 9-12 – OECM on-site EIR (w/LMI) • Limited EIR (5/16 points) • Validate revised ETC baseline plan • ~mid-Nov – ESAAB to approve new LCLS baseline • LCLS to ‘retire’ old baseline and start reporting on new baseline

8. EIR Review Documentation • Pre-Briefing Documentation • Project WBS & WBS Dictionary • Resource – Loaded Schedule • L4 Project Schedules • P3 Data File • Milestones & Milestone Dictionary • Key Project Assumptions • Guidance on Estimating Cost, Schedule & Contingency • Funding Profile • Critical Path • Risk Management Plan & Risk Registry • Project Execution Plan • On-Site Documentation • FTE Profile Tables • Detailed Cost Estimate • Basis of Estimate Documentation • BCR PM-38

9. Revised Baseline Actions • Revise LCLS baseline to deliver technical scope on cost and on schedule • Address the effects of the CR and FY07 funding reduction • Shift from FY07 to FY09 photon and FEH procurements • Update all remaining work using current (FY07) estimates • No changes in scope or technical capabilities • Update resource rates and escalation • SLAC, ANL & LLNL indirect rates unchanged • Use 4% escalation on future labor costs • Update OPC to reflect LCLS transition to operations • LCLS and SLAC management coordinated staff roll-off into operations once commissioning goals are achieved • Update cost contingency and risk handling plans • No significant scope contingency remains in the ETC.

10. Summary of Revised Baseline ($K) • ETC Summary • Address delay costs, acceleration costs, redirected and standing army costs. • Extend manpower to reflect extended (16 mo) project timeline • Update all remaining work; reassess contingency and management reserve

11. Updated L2 milestones L2 milestones have 2 months float to ‘early finish’ date to allow some replanning discretion in response to changing conditions.

12. LCLS Phased Commissioning • Beam Transport Hall – 227m long above grade facility to transport the electron beam through the existing RSY • Near Experimental Hall – underground facility whose primary function is to house 3 experimental hutches, prep and shops • Undulator Hall – 170m long underground tunnel housing undulators and ancillary equipment • Far Experimental Hall – underground single 46’ cavern to house 3 experimental hutches and prep space • Front End Enclosure – 40m long underground facility to house diagnostic equipment in support of photon beam LCLS Operations in NEH – late 2009 • X-Ray Transport Tunnel – 200m long underground tunnel used to transport photon beams to FEH Defer XT, XE technical procurements until FY09 CD-4 LCLS Operations in FEH - July 2010

13. Revised TEC Funding & Obligations FY08 funding-limited, tight on contingency ~$8M • FY07 TEC down $5M • FY08 no restoration • CR degraded performance Mitigation • Push work into FY09. • Identified swing procurements • Stanford backing on obligation authority • Track on risk list. • FY08 Contingency Management Plan

14. Revised ETC, BAC @ L2 • Awarded contracts reserve 10% contingency for CF and 5% on technical.

15. Basis of Estimate on Remaining Work (TEC) • Significant portion of ETC is contracts in hand. Reduce cost risk.

16. WBS 1.1 Project Management ETC • ETC cost increase primarily due to extending team to cover project timeline.

17. LCLS Schedule & Milestones • Major Milestones • Sept 2009 – Initiate Early Experimental Operations • FY09 Funding – Pop-Up Cameras – install – NEH commission • Total float ~49 working days to L2 milestone • Near CP – BPMs, Undulator vacuum system, Undulator testing • July 2010 – Photons in FEH (CD-4, Project Complete) • FY09 Funding – Pop-Up Cameras – install – FEH commission • Includes 2 months to process DOE project closeout activities • Total float to CD-4; ~101 working days to CD-4 • Near CP – XT/XE procurements, FEH Hutches • LCLS schedule includes integrated Turner Schedule • “Early-occupancy” dates meet LCLS requirements • Turner earned-value tracked by site walks, OAC meetings • LCLS installation schedules integrated with Turner • RM Boyce providing oversight on global integration

18. LCLS Procurements • LCLS using co-located procurement group (7) • Procurement Manager – D. Pindroh • B. Miller <20% support, J. Dee (Negotiator) roll-off ~Dec07. • Weekly technical/procurement staff meetings • Procurements monitored via and CP List and APP’s • Field Change Order Process monitored closely • <4% FCO’s on work accomplished • This is working well. Same organization to manage LUSI • Procurement Issues • DOE SSO to approve all SLAC procurement actions >$100K • Use detailed tracking document. Added to risk registry. • Turner Claim. May go to arbitration. • Support from SLAC Counsel and Stanford Attorney • Additional time sink on CF & PO staff. Added to risk registry.

19. Most LCLS Procurements under Contract • Of ~$185M procurements, subcontracts, ~$31M have yet to be awarded. • Some specialty components but most are commodities. (vacuum, cabling, power supplies) • Largest Remaining Procurements • Space Renovation ~$5.0M • 2 FEH Hutches ~$2.8M • Attenuator ~$1.0M • Install Contracts • Cost Risks • CF Procurements • Additional expertise in cost estimating • Staying to Schedule • System Integration

20. Risk Management • Updated LCLS Risk Management Plan reflects Lehman recommendations. • Risk-based contingency analysis • Residual risk (post-handling) is compared to available contingency. • Senior Management ‘own’ (manage) the risk. • Add/retire risks, evaluate handling plans • Review monthly with senior management team.

21. Project Management Risks & Mitigations • Contingency Analysis • Rebaseline project. Need a baseline to measure against • Implement contingency management plan through FY08 • Control Account Mischarges (at SLAC) • Effective use of project tools to track actual costs • Timely closure of control accounts • SSO Prior Approval of Bids & Contracts >$100K • Track weekly active procurements • Installation Schedules • Track weekly installation status, Integrate installation schedules • Safety Incident or Accident • Implement ISM plan, work authorization processes • Lessons learned at the completion of major activities • Owner-Directed Changes to Conventional Facilities • Implement weekly walk-arounds by Photon Systems, LUSI staff • System Managers and LUSI Staff review shop drawings

22. Summary • LCLS has prepared a revised ETC to address the funding uncertainties and reduced funding in FY07. • TPC of $420M and delayed CD-4 (16 month extension) • The revised ETC allows the project to complete its commitments (technical, cost and schedule) to DOE. • No changes to scope or technical capabilities • Cost and schedule contingencies are adequate • Contingency remains tight in FY08. Need to manage carefully. • Challenges ahead: • Maintain construction progress, refocus on building the project • Prepare for efficient handoff to installation teams • Continue good progress on commissioning • Get ready for LCLS transition to operations and LUSI