LCLS Operations Budget Model & Process

1. DOE Review of the LCLS Project LCLS Operations Budget Model & Process Mark Reichanadter LCLS Deputy Director SLAC National Accelerator Laboratory

2. Outline SLAC in Transition Linac/Exp Ops Budget Structure WBS Organization Scope Statements LCLS Operations Management & Performance Work Authorization, Account Mgrs, WBS Mgrs Business Rules / Configuration control Assessment & Feedback Out-Year Planning & Lessons Learned

3. SLAC – A Laboratory in Transition • Major transition of scientific portfolio • PEP-II / BaBar shutdown • Staged transition of responsibility for linac operations from HEP to BES • Transition to multi-program environment • Revamp business systems and processes • ‘One Lab’ TOTAL BES HEP

4. SLAC Organization

5. 2009 Linac Operations Stewardship • First 2/3 of SLAC Linac in ‘minimum maintenance state • Last 1/3 of SLAC Linac operating for LCLS BES-SSRL –BES/HEP

6. 2009 – Transition to Early Science 2009 2010 2011 2012 2013 2014 Maintenance 4,260 2,160 2,160 2,160 1,960 1,960 Start of commissioning, early operations Machine studieselectrons 2,750 1,300 1,300 1,300 900 900 Machine studiesphotons 1,250 1,300 1,300 1,300 900 900 AMO 09-09 Photon scienceexperiments 500 4,000 4,000 4,000 5,000 5,000 SXR 04-10 XPP 06-10 Tentative operation plan for LCLS [hours per fiscal year] XCI 01-11 XCS 06-11 Tentative instrument operation scheme Near Experimental Hall AMO SXRXPP CXI XCS MEC Far Experimental Hall

7. LCLS Directorate Organization - Goals

8. Budget Development September 2006 Linac Ops Review Bottoms-up (activity-based) No experimental ops February 2009 Linac Ops Review Bottoms-up (improved activity-based w/defined scope) LCLS Operations FY09 budget includes: $96.7M Linac operations and SLAC core competencies and capabilities supporting LCLS science $2.0M Experimental operations & user support/administration Includes work authorization and change management

9. Work/Budgets align with Organization • WBS 1.X – LCLS Directorate • Supports management and administrative costs • WBS 2.X – Accelerator Operations • Supports LCLS accelerator operations, incl. S0-20 min. maint. • WBS 3.X – Engr & Physics Operations • Centralized technical staff assigned to 2.x, 4.x, 5.x) • WBS 4.X – Experimental Operations • Supports LCLS photon ops, beamlines, user admin • WBS 5.X – Strategic Projects (LCLS/LUSI etc.) • Supports LCLS/LUSI, upgrades, new projects • WBS 8.X – SLAC Operations • Supports LCLS core competencies in Ops, services > G&A level • WBS 9.X – SLAC Engineering & Tech Support • Supports LCLS core competencies in ETS

10. Budget Model - Categories of Support Direct program – direct costs of supporting Linac Operations or LCLS Experimental Operations. WBS 1, 2, 3, 4, 5 Core competencies – cost of all technical infrastructure at SLAC essential to support LCLS Linac Operations or Experimental Operations WBS 8, 9 (BES Primary Stewardship of SLAC) Indirects - site-wide support such as ES&H, Business Services, Site Maintenance, IGPP, LDRD Rates: 45.0% labor, 8.0% M&S LCLS and LUSI projects use major capital project rate

11. Building/Scrubbing the Ops Budget Initial budget submission LCLS Division Directors estimate internal needs Ops and ETS Departments estimate budgets to support Linac Ops Bottoms-up budgets for Linac Ops in 2009 Check against September 2008 (HEP-BES) actuals Include LCLS AIP (S20-S30) and planned upgrades/legacy issues Roll up/review budget All budgets require detailed L3 scope statements and resource detail at L4. Scrubbing process removed unrealistic scope increases and/or hiring. Pushed some planned work to FY10 to provide small reserve.

12. LCLS Operations Budget (FY09) 2.5% Linac Ops and 6% Exp Ops reserve allocated to address issues (emergencies, opportunities, etc.).

13. Total Linac/Exp Ops Budget and FTE

14. LCLS Ops Base Cost (FY09 – FY12)

15. LCLS Ops Escalated (FY09 – FY12) Assumes annual escalation of 4% labor, 2.5% M&S

16. LCLS Ops FTEs (FY09 – FY12)

17. LCLS Scope Statements Define Work WBS, Scope title, responsible managers Scope of work statement Responsible organization Fund Type Work Authorization

18. Work is authorized at WBS Level 3 Scope statements integrate fund management & accounting processes to track performance. WA Signed off by: Account Manager Responsible for L3 accounts WBS Manager (typically Division Director) Responsible for WBS L2 and related L3 accounts LCLS Associate Laboratory Director (ALD) Responsible for LCLS FWP (Linac Ops & LCLS Exp Ops) LCLS Business Manager Ensures adequate funds available LCLS ‘business rules’ are under document control. Included in backup documentation

19. Procurement Approval Thresholds Technical Approval Account Manager <$10,000 WBS Manager <$50,000 LCLS ALD <1,000,000 for WBS 1,2,3,4,5 LCLS ALD and Ops/ETS ALD <1,000,000 for WBS 8/9 SLAC Director >1,000,000 • Budget Approval • LCLS Finance Manager • <$10,000 • LCLS Business Manager • <$1,000,000 • SLAC CFO • >$1,000,000

20. Monthly Status Reporting Budgets versus actuals Linac Ops does not use “earned-value” but activity-based budgets allow for variance analysis at L3/L4 Change management L3 budgets are increased (or decreased) as necessary to optimize the science program. Update and reauthorize work consistent with new budgets and overall funding availability.

21. Linac & Exp Ops Budgets vs Actuals

22. Budget Process – FY10 and Out-Years Detailed budget process starts mid-July Set next years strategic goals Machine performance, planned AIPs Operation statistics, MTBF, legacy issues # of hours to users, power costs Assess current year costs versus scope Use June actuals (3 of 4 quarters costed) Integrate Ops and ETS core competencies Lab G&A, lessons learned Iterate on budget versus goals to optimize balanced goals of LCLS science and safe operations Budget approved by LCLS ALD mid-Sep

23. Risks and Mitigations LCLS business model moving from project to operations SLAC business model moving from single to multi-program LCLS – establish scope statements, transparent accounting SLAC – Significant effort in Operations to establish common financial reporting, metrics and accounting practices across all Directorates. Ability to hire and retain high-quality staff Hire permanent ALD and complete senior management team PMCS and Procurement teams are critical to project delivery Ramp-up photon ops, instrument scientists and user administration Taking ‘eye off the ball’ on LCLS and LUSI projects Maintain LCLS and LUSI cost and schedule performance Business Office to maintain all project tools and processes Certified EVMS, procurement cell, risk registry

24. Summary Laboratory in Transition Site is changing and management model being redefined More work to go in Operations and G&A planning LCLS transformation from project to ops/project complete. Preparing for start of LCLS science mission in Fall 2009 First call for proposals had excellent outcome - 28 AMO Proposals Budgeting processes are transparent and focus on work Science driven, Activity based, Resource-loaded budgeting Using centralized and uniform business rules and processes “Just enough project management” Core competencies to optimize future LCLS program in budget Annual budget cycle addresses operational, programmatic goals and legacy issues. Draw upon previous results + lessons learned Independent assessments and feedback