Office of Science Perspective and Project Management Kin Chao PE, CCP, PMP June 6, 2017

1. Office of Science Perspective and Project Management Kin Chao PE, CCP, PMP June 6, 2017 http://science.energy.gov/opa

2. Topics of Discussion • SC Overview • SC Office of Project Assessment • SC Contractors and Contract Types • Strong HQ Roles and Responsibilities • Project Types and Sizes • Contingency • Funding • Stakeholders • Motivation

3. SC Overview SC Mission: To deliver the scientific discoveries and major scientific tools that transform our understanding of nature and advance the energy, economic, and national security of the United States. • SC budget is ~$5B to $5.5B per year • Construct and Capital Assets (fusion reactors, accelerators, laboratories, instruments, infrastructure, others) • Operation and Maintenance of facilities and assets • Grants and Small Business Innovation Research/Technology Transfer • SC is exempt from requirements of DOE Order 413.3B

4. (Completed projects since 2002)

5. Office of Science Organization Chart Office of the Director (SC-1) J. Steve Binkley (A) Deputy Director for Field Operations (SC-3) Joseph McBrearty Deputy Director for Science Programs (SC-2) J. Steve Binkley Deputy Director for Resource Management (SC-4) Jeffrey Salmon Office of Safety and Security Policy (SC-31) M. Jones Workforce Development for Teachers/ Scientists (SC-27) Jim Glownia Ames SO Cynthia Baebler Advanced Scientific Comp. Research (SC-21) Barbara Helland Chicago Office Roxanne Purucker Office of Budget (SC-41) Kathleen Klausing Office of SC Communications and Public Affairs (SC-47) Rick Borchelt Argonne SO Joanna Livengood Basic Energy Sciences (SC-22) Harriet Kung Office of Grants & Contracts (SC-43) Michael Zarkin Berkeley SO Paul Golan Office of Laboratory Policy (SC-32) J. LaBarge SC Integrated Support Center Brookhaven SO Frank Crescenzo Office of Project Assessment (SC-28) Stephen W. Meador Office of Management (SC-48) Cynthia Mays Biological & Environ. Research (SC-23) Sharlene Weatherwax Office of Scientific and Technical Information (SC-44) Brian Hitson Fermi SO Michael Weis Fusion Energy Sciences (SC-24) Edmund Synakowski Oak Ridge Office Ken Tarcza Office of Information Technology and Services (SC-45) Vasilios Kountouris Oak Ridge SO Johnny Moore Office of Operations Program Management (SC-33) M. Jones(A) Small Business Innovation Research (SC-29) Manny Oliver Princeton SO Peter Johnson High Energy Physics (SC-25) James Siegrist Pacific NWest SO Roger Snyder Nuclear Physics (SC-26) Timothy Hallman SLAC SO Paul Golan (A) Acting Thomas Jeff. SO Joe Arango 01/2017

6. Office of Project Assessment Functions • Advise the Director of SC on the construction and operation of major research facilities as required. • Develop and implement policies and procedures for the design, fabrication, construction, commissioning, operation, and decommissioning of research facilities and devices consistent with Departmental and SC project management requirements. • Conduct technical, cost, schedule, and management peer reviews of SC construction projects (~ 30 per year). • SC Secretariat for Energy Systems Acquisition Advisory Board (ESAAB) and the Project Baseline Change Control Process (~ 30 per year). • PMCDP, Exhibit 300s, EVMS, assistance and support, etc.

7. SC Contractors and Contract Types • SC projects and management of the facilities are executed through the SC Laboratories (and one university) • SC Laboratories are M&O contractors and SC does not have a direct contract for projects • SC Laboratories are Not-for-Profit • Projects are typically built to cost

8. SC HQ Roles and Responsibilities • SC Associate Directors • Project owners • Initiates and prioritizes projects and needs based on available funding • Requests, defends, and provides the project funding • Seeks advice and recommendations from Subject Matter Experts through project peer reviews, ESAAB, regular communication with the project team, etc. • Approves critical decisions and allows a project to proceed to the next phase • Approves major changes to the project

9. SC HQ Roles and Responsibilities • SC HQ Program Managers • Very strong technical backgrounds with a many having PhDs. • Understand technical issues and thus can challenge contractors • Typically have responsibilities for more than one project • Interacts with the Federal Project Director • Present to SC-2 during monthly Watchlist meetings

10. SC Projects • Typically have ~40-50 active projects at any time • ~99% of SC projects are Non-Nuclear projects • ~50-60% of projects are less than $100M in TPC thus funding challenges are less

11. Contingency • Cost contingency is included in the TPC regardless of who owns the risk (external or internal) • Schedule contingency and the cost associated with potential schedule delays are included in the baseline • Scope contingency (the difference between the Threshold and Objective KPPs) is identified in the PEP • Contingency is based on project status, complexity, and risks. Analysis of contingency is performed continuously throughout the life of the project • Contingencies (cost, schedule, and scope) are held by the FPD and released to the project using a formal change control process identified in the PEP % Contingencies at CD-2 Cost—30% to 40% Schedule—20% to 30% Scope (Prioritized list of items for additions/deletion)—10% to 30%

12. Funding • Project funding needs to be affordable in the context of the total Program • Project funding profile needs to be realistic • Funding must include adequate project contingency (regardless of who owns the risk) • Funding must be stable and should not be changed after CD-2 is approved • Funding for smaller projects are less risky than for larger projects

13. Stakeholders • SC has very supportive stakeholders • Typically do not encounter regulatory issues (EPA, citizens, state regulators) associated with EM projects • SC typically does not have “not-in-my backyard” issues

14. Motivations • A large part of SC success is due to contractor/laboratory motivation • Having best-in class facilities means more prestige and attract best scientists in the world • Having successful projects results in bringing in more jobs/work • Having successful projects results in more money for Operations and Maintenance—which are much greater than the TPC • If the laboratories do not have world class facilities—existence of the lab would be in jeopardy

15. Summary of SC Project Characteristics

16. SC Decision and Requirements Matrix Although SC is exempt from DOE O 413.3B—we still implement it because we believe in good project management practices