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Progress in Improving Project
at the Department of Ene
an
Cement
Committee for Oversight and Assessment of U.S. Department of Energy
Project Management
Board on Infrastructure and the Constructed Environment
Division on Engineering and Physical Sciences
NATIONAL RESEARCH COUNCIL
OF THE NATIONAL ACADEMIES
THE NATIONAL ACADEMIES PRESS
WASHINGTON, D.C.
www.nap.edu
OCR for page R2
THE NATIONAL ACADEMIES PRESS 500 Ffflh Street, N.W. Washington, DC 20001
NOTICE: The project that is the subject of this report was approved by the Governing
Board of the National Research Council, whose members are drawn from the councils of
the National Academy of Sciences, the National Academy of Engineering, and the Institute
of Medicine. The members of the committee responsible for the report were chosen for
their special competences and with regard for appropriate balance.
This study was supported by Contract Number DEAM01-99PO8006 between the U.S.
Department of Energy and the National Academy of Sciences. Any opinions, findings,
conclusions, or recommendations expressed in this publication are those of the authorts)
and do not necessarily reflect the views of the organizations or agencies that provided
support for the project.
International Standard Book Number 0-309-08909-3 (book)
International Standard Book Number 0-309-50608-5 (PDF)
Additional copies of this report are available from the National Academies Press, 500 Fifth
Street, N.W., Lockbox 285, Washington, DC 20055; (800) 624-6242 or (202) 334-3313
(in the Washington metropolitan area); Internet, http://www.nap.edu
Copyright 2003 by the National Academy of Sciences. All rights reserved.
Printed in the United States of America
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THE NATIONAL ACADEMIES
Advisers to the Nation on Science, Engineering, and Medicine
The National Academy of Sciences is a private, nonprofit, self-perpetuating society of
distinguished scholars engaged in scientific and engineering research, dedicated to the
furtherance of science and technology and to their use for the general welfare. Upon the
authority of the charter granted to it by the Congress in 1863, the Academy has a mandate
that requires it to advise the federal government on scientific and technical matters.
Dr. Bruce M. Alberts is president of the National Academy of Sciences.
The National Academy of Engineering was established in 1964, under the charter of the
National Academy of Sciences, as a parallel organization of outstanding engineers. It is
autonomous in its administration and in the selection of its members, sharing with the
National Academy of Sciences the responsibility for advising the federal government.
The National Academy of Engineering also sponsors engineering programs aimed at
meeting national needs, encourages education and research, and recognizes the superior
achievements of engineers. Dr. Wm. A. Wulf is president of the National Academy of
. ~ . .
. engineering.
The Institute of Medicine was established in 1970 by the National Academy of Sciences
to secure the services of eminent members of appropriate professions in the examination
of policy matters pertaining to the health of the public. The Institute acts under the
responsibility given to the National Academy of Sciences by its congressional charter to
be an adviser to the federal government and, upon its own initiative, to identify issues of
medical care, research, and education. Dr. Harvey V. Fineberg is president of the Institute
of Medicine.
The National Research Council was organized by the National Academy of Sciences in
1916 to associate the broad community of science and technology with the Academy's
purposes of furthering knowledge and advising the federal government. Functioning in
accordance with general policies determined by the Academy, the Council has become the
principal operating agency of both the National Academy of Sciences and the National
Academy of Engineering in providing services to the government, the public, and the
scientific and engineering communities. The Council is administered jointly by both
Academies and the Institute of Medicine. Dr. Bruce M. Alberts and Dr. Wm. A. Wulf are
chair and vice chair, respectively, of the National Research Council.
www. nationa l-academies.org
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Prepublication Copy Subject to Further Editorial Correction
COMMITTEE FOR OVERSIGHT AND ASSESSMENT OF
U.S. DEPARTMENT OF ENERGY PROJECT MANAGEMENT
KENNETH F. REINSCHMIDT, Chair, Texas A&M University, College Station, Texas
DON JEFFREY BOSTOCK, Lockheed Martin Energy Systems (retired), Oak Ridge'
Tennessee
DONALD A. BRAND, Pacific Gas arid Electric Company (retired), Novato, California
ALLAN V. BURMAN, Jefferson Solutions, Washington, D.C.
LLOYD A. DUSCHA, U.S. Anny Corps of Engineers (retired), Reston, Virginia
G. BRIAN ESTES, Consulting Engineer, Williamsburg, Virginia
DAVID N. FORD, Texas A&M University, College Station, Texas
G. EDWARD GINS ON, University of Texas, Austin, Texas
THEODORE C. KENNEDY, BE&K, Inc., Birmingham, Alabama
MICHAEL A. PRICE, Project Management Institute, Newtown Square, Pennsylvania
Stab
RICHARD G. LITTLE, Director, Board on Infrastructure and the Constructed
Environment
MICHAEL D. COHN, Project Officer
DANA GAINES, Financial Associate
PAT WIGWAMS, Senior Project Assistant
.
1V
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COMMITTEE FOR OVERSIGHT AND ASSESSMENT OF
U.S. DEPARTMENT OF ENERGY PROJECT MANAGEMENT
KENNETH F. REINSCHMIDT, Chair, Texas A&M University, College Station
DON JEFFREY BOSTOCK, Lockheed Martin Energy Systems (retired), Oak
Ridge, Tennessee
DONALD A. BRAND, Pacific Gas and Electric Company (retired), Novato,
California
ALLAN V. BURMAN, Jefferson Solutions, Washington, D.C.
LLOYD A. DUSCHA, U.S. Army Corps of Engineers (retired), Reston, Virginia
G. BRIAN ESTES, Consulting Engineer, Williamsburg, Virginia
DAVID N. FORD, Texas A&M University, College Station
G. EDWARD GIBSON, University of Texas, Austin
THEODORE C. KENNEDY, BE&K, Inc., Birmingham, Alabama
MICHAEL A. PRICE, Project Management Institute, Newtown Square,
Pennsylvania
Stay
RICHARD G. LITTLE, Director, Board on Infrastructure and the Constructed
Environment
MICHAEL D. COHN, Program Officer
DANA GAINES, Financial Associate
PAT WILLIAMS, Senior Project Assistant
v
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BOARD ON INFRASTRUCTURE AND THE
CONSTRUCTED ENVIRONMENT
PAUL GILBERT, Chair, Parsons Brinckerhoff Quade & Douglas, Seattle
Washington
MASSOUD AMIN, University of Minnesota, Minneapolis
RACHEL DAVIDSON, Cornell University, Ithaca, New York
REGINALD DesROCHE, Georgia Institute of Technology, Atlanta
DENNIS DUNNE, California Department of General Services, Sacramento
PAUL FISSETTE, University of Massachusetts, Amherst
YACOV HAIMES, University of Virginia, Charlottesville
HENRY HATCH, U.S. Army Corps of Engineers (retired), Oakton, Virginia
AMY HELLING, Georgia State University, Atlanta
SUE McNEIL, University of Illinois, Chicago
DEREK PARKER, Anshen+Allen, San Francisco, California
DOUGLAS SARNO, The Perspectives Group, Inc., Alexandria, Virginia
WILL SECRE, Masterbuilders, Inc., Cleveland, Ohio
DAVID SKIVEN, General Motors Corporation, Detroit, Michigan
MICHAEL STEGMAN, University of North Carolina, Chapel Hill
DEAN STEPHAN, Charles Pankow Builders (retired), Laguna Beach, California
ZOFIA ZAGER, County of Fairfax, Fairfax, Virginia
CRAIG ZIMRING, Georgia Institute of Technology, Atlanta
Stay
RICHARD G. LITTLE, Director, Board on Infrastructure and the Constructed
Environment
LYNDA L. STANLEY, Executive Director, Federal Facilities Council
MICHAEL COHN, Program Officer
DANA GAINES, Financial Associate
JASON DREISBACH, Research Associate
PAT WILLIAMS, Senior Project Assistant
vim
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Acknowledgment of Reviewers
This report has been reviewed in draft form by individuals chosen for their
diverse perspectives and technical expertise, in accordance with procedures approved
by the National Research Council's (NRC's) Report Review Committee. The
purpose of this independent review is to provide candid and critical comments
that will assist the institution in making its published report as sound as possible
and to ensure that the report meets institutional standards for objectivity, evi-
dence, and responsiveness to the study charge. The review comments and draft
manuscript remain confidential to protect the integrity of the deliberative process.
We wish to thank the following individuals for their review of this report:
Philip R. Clark, Nuclear Corporation (retired),
Fletcher H. (Bud) Griffis, Polytechnic University,
Henry J. Hatch, U.S. Army Corp of Engineers (retired),
Bradley C. Moore, Ohio State University,
Burton Richter, Stanford Linear Accelerator Center, and
Richard N. Zare, Stanford University.
Although the reviewers listed have provided many constructive comments
and suggestions, they were not asked to endorse the conclusions or recommenda-
tions, nor did they see the final draft of the report before its release. The review of
this report was overseen by Lawrence T. Papay, Science Applications Inter-
national Corporation. Appointed by the National Research Council, he was
responsible for making certain that an independent examination of this report was
. .
via
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vit!
ACKNOWLEDGMENT OF REVIEWERS
carried out in accordance with institutional procedures and that all review com-
ments were carefully considered. Responsibility for the final content of this report
rests entirely with the authoring committee and the institution.
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Contents
EXECUTIVE SUMMARY
INTRODUCTION
Review Activities, 6
Organization of the Report, 6
References, 8
CORE COMPETENCIES
Introduction, 9
Areas of Progress, 9
Areas of Concern, 11
References, 14
5
9
3 DOE ORDER O 413.3 AND THE PROGRAM AND PROJECT 15
MANAGEMENT MANUAL
Introduction, 15
Analysis of Current Status and Direction, 15
Findings and Recommendations, 17
References, 18
HUMAN CAPITAL
Introduction, 19
Knowledge, Skills, and Abilities, 19
Federal Workforce Trends, 21
fix
19
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x
Training and Career Development, 23
Findings and Recommendations, 25
References, 27
5 DOE'S ROLE AS OWNER
Introduction, 28
Government/Industry Forum on the Owner's Role, 28
Federal Project Managers' Functions, 30
Findings and Recommendations, 31
References, 32
6 DOE PROJECT MANAGEMENT CULTURE
Introduction, 33
Leadership, 34
Acceptance of Change Within the DOE Culture, 36
Overcoming Resistance to Cultural Change, 38
Findings and Recommendations, 39
References, 39
CONTENTS
28
33
7 READINESS TO PROCEED FOR FIRST-OF-A-KIND PROJECTS 40
Introduction, 40
Characteristics of First-of-a-Kind Projects, 41
Challenges That Arise in First-of-a-Kind Projects, 42
Critical Decisions, 44
Management Planning and Control, 47
Findings and Recommendations, 48
8 PROJECT CYCLE TIME REDUCTION
Introduction, 49
Prerequisites for Reducing Cycle Time, 49
Effect of DOE Order O 413.3 on Project Cycle Time, 50
Eliminating Delays from Critical Decisions, 52
Complexity Increases the Risk of Delays, 53
Reducing Project Time and Supportive Management Culture, 54
Staffing for Reduced Project Cycle Time, 54
Findings and Recommendations, 55
References, 56
9 ACQUISITION AND CONTRACTING
Introduction, 57
Developing an Acquisition Strategy, 58
Performance-Based Contracting, 60
49
57
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CONTENTS
Xt
Incentives, 63
Findings and Recommendations, 64
References, 66
10 RECOGNIZING PROJECT MANAGEMENT SUCCESSES 67
Introduction, 67
2002 Project Awards, 67
Other Notable Projects, 70
Common Factors, 71
Findings and Recommendations, 71
References, 72
APPENDIXES
A Statement of Task, 75
B Biographies of Committee Members, 76
C Committee Fact Finding and Briefing Activities and Documents
Reviewed from October 2001 Through October 2002, 82
D Characteristics of Effective Owners' Representatives, 92
E Key Questions for Readiness to Proceed, 96
F Building Flexibility into Projects to Manage Uncertainty, 108
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Acronyms and Abbreviations
BICE
CCB
CCIS
CD-0
CD-1
CD-2
CD-3
CD-4
Board on Infrastructure and the Constructed Environment
Change Control Board
Center for Construction Industry Studies
critical decision 0, approval of mission need
critical decision 1, approval of system requirements and alternatives
critical decision 2, approval of project baseline
critical decision 3, authorization to complete implementation
critical decision 4, approval of project completion and transition to
operations
CFO chief financial officer
CPI cost performance index
DOE U.S. Department of Energy
EM Office of Environmental Management
EPC estimated project cost
ESAAB Energy Systems Acquisition Advisory Board
ES&H environment, safety, and health
EVMS earned value management system
FAR Federal Acquisition Regulations
GAO General Accounting Office
. . .
x~
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xiv ACRONYMS AND ABBREVIATIONS
ICPP integrated construction project plan
INEEL Idaho National Engineering and Environmental Laboratory
IPT Integrated Project Team
LANL Los Alamos National Laboratory
M&I management and integration
M&O management and operations
NASA National Aeronautics and Space Administration
NIF National Ignition Facility
NNSA National Nuclear Security Administration
OECM Office of Engineering and Construction Management
OMB Office of Management and Budget
OMBE Office of Management and Budget Evaluation
ORNL Oak Ridge National Laboratory
ORO Oak Ridge Operations Office
ORP Office of River Protection
PA&E Office of Program Analysis and Evaluation
PARS Project Analysis and Reporting System
PBC performance-based contracting
PEP Project Execution Plan
PMCDP Project Manager Career Development Plan
PMP Project Management Practices
PMSO project management support office
PPM Program and Project Management manual
PSO Program Secretarial Office
RL Richland Operations Office
SC Office of Science
SNL Sandia National Laboratories
SNS Spallation Neutron Source
SPI schedule performance index
SRS Savannah River Site
UC University of California
WBS work breakdown structure
