Office of Project Management (2020 Presidential transition)

Book 3 - Organization Overview
Entire 2020 DOE Transition book As of October 2020

The Office of Project Management (PM) supports the Department’s mission by providing enterprise level project management leadership and expertise to ensure the efficient delivery of new or updated capital asset capabilities to enhance America’s energy and nuclear security and address the environmental legacy and liabilities of the cold war. In support of this goal, PM provides project management policy, guidance, and independent assessments to enable senior leadership to make informed decisions for capital asset projects within a mature project management framework and governance structure.

PM monitors the Department’s effectiveness in delivering capital asset projects using a project management success metric, which states, “On a three-year rolling basis, complete at least 90% of departmental projects baselined since the start of FY 2008 within the original scope baseline and not to exceed 110% of the cost as reflected in the performance baseline established at Critical Decision (CD)-2,” which is the decision point where project scope, cost, and schedule commitments are established.

Mission Statement

PM’s mission is to provide enterprise level project management leadership and assist in the development and implementation of Department-wide policies, procedures, programs, and management systems pertaining to project management, professional development, and related activities. The office is charged with providing the DOE senior leadership with timely, reliable, and credible information to enable the best-informed project execution decisions.

Budget

Fiscal Year	Budget
FY 2019 enacted	$15,000,000
FY 2020 enacted	$12,600,000
FY 2021 requested	$15.600,000

Human Resources

FY 2020 authorized full-time equivalents (FTEs): 30

History

The project management office was originally called the Office of Field Management (FM) and was under the purview of the Office of the Chief Financial Officer in the 1990s. In FY 2000 Energy & Water Development Appropriations, the Senate initiated, and the House concurred to eliminate funding for DOE’s Office of Field Management. At that time, it was viewed by many that the office had lost its independence. Thus, it lost its credibility.

During the intervening period, appropriators directed DOE to contract with the National Research Council (NRC) to study DOE’s project management. Numerous reports were produced and provided to Congress. In its first report, NRC recommended that External Independent Reviews (EIRs) of DOE projects be undertaken, and guidelines established for them. The NRC’s second report yielded the study entitled, Improving Project Management in the Department of Energy. That became a principal tool in revising DOE’s project management, along with the Deputy Secretary’s Project Management Initiative, directing changes in the Department’s project management effort. Taken together, the external NRC study and the Deputy Secretary’s initiative formed the basis for creation of the Office of Engineering and Construction Management (OECM), which continued to reside under the authority of the Office of the Chief Financial Officer.

In FY 2001, OECM began to address the voids in DOE’s project management caused by the elimination of funding for FM. Work began systematically on the following issues: a newly designed DOE Order; a revised Energy Systems Acquisition Advisory Board (ESAAB) process; a revised EIR process; development of a Project Engineering and Design (PED) requirement for new projects; research into a career development program for project managers; and liaison with the engineering and construction industries, to name a few. In FY 2006, OECM was placed under the purview of the Office of Management (MA), vice CFO, to enhance its independence, and minimize any budget influence over capital asset project baselines In 2007, the Deputy Secretary met with the Comptroller General of GAO to clarify their expectations for removal from their GAO High- Risk List (HRL), specifically for “Contract (Project) Management.” The Department had been on this List since its inception in 1990. The Comptroller General provided the five criteria which was used to determine inclusion on the High-Risk List, one of which was the need to conduct an internal root cause analysis. This immediately precipitated a department-wide initiative, led by OECM, to complete a DOE project management root cause analysis. In April 2008, the Department produced its DOE “Contract and Project Management Root Cause Analysis (RCA)” followed in July 2008 with its Corrective Action Plan (CAP). These documents highlight the top ten issues that had impeded

improved project execution performance, to include lack of upfront planning, inadequate federal staff, deficient risk management, funding turbulence, and more. The documents continue to be a key reference as we refine project management processes. As a result of the improvements initiated under the CAP, GAO has narrowed their focus of the High-Risk List to only contract and project actions greater than $750 million, and only for NNSA and EM.

In FY 2012, the project and contract management oversight offices within the Office of Management (MA), the Office of Engineering and Construction Management (OECM) and Office of Procurement and Assistance Management (OPAM) respectively, were merged and consolidated into a singular {w or p| Office of Acquisition and Project Management}} (APM). The OECM Director became the new APM Director and took on the additional role as the Department’s Senior Procurement Executive (SPE). This complemented the consolidation of similar functions and mergers within both NNSA and EM. These APM organizations worked collaboratively to address continuous improvement initiatives regarding project management.

In FY 2015, the Under Secretary for Management and Performance reorganized and consolidated parts of the Office of Management (MA) and the Office of Environmental Management (EM) into one organization and created a new office entitled the Office of Project Management Oversight and Assessments (PMOA). This new office reported directly to the Under Secretary for Management and Performance (S3), but the Director was directly accountable to the Deputy Secretary when performing functions as the Executive Secretary of the Energy Systems Acquisition Advisory Board (ESAAB) and the Project Management Risk Committee (PMRC). The Deputy Secretary chairs the ESAAB, and the PMRC is the senior project management advisory committee to the ESAAB and other senior leaders. The PMRC is chaired by an administration senior advisor to the Deputy Secretary of Energy. In the absence of a senior advisor, the PM Director serves as the Chair of the PMRC.

This reorganization was prompted by the Secretary of Energy’s “Improving the Department’s Management of Projects” Memorandum, dated December 1, 2014. It elevated the function and organizational position of project management, which resulted in a new Dash-1 Directorate. In this memo, each Under Secretary was also directed to establish, if it did not already exist, its own project assessment office that does not have line management responsibility for project execution. These assessments offices conduct peer reviews of projects in their purview that have a total project cost of $100 million or greater (or lower as deemed appropriate by the Under Secretaries). These offices were established to model the review process already established in the Office of Science and recognized as best practice. In 2017, the Under Secretary for Management and Performance was reorganized and replaced by the Under Secretary of Energy. The Office of Project Management Oversight and Assessments (PMOA) was renamed the Office of Project Management (PM) and retained as a direct report to the Under Secretary of Energy. The Office of Environmental Management (EM) was moved from the Under Secretary of Energy to the Under Secretary for Science to foster increased collaboration between EM and the national laboratories to address the challenges of the environmental legacy of the cold war. In 2019, the Under Secretary of Energy designated PM as the Under Secretary of Energy’s project assessment office and as the Project Management Support Office (PMSO) for all programs under his purview.

Functions

Executive Secretariat of the Energy Systems Acquisition Advisory Board and Project Management Risk Committee

Serve as a member and as Executive Secretariat of the Energy Systems Acquisition Advisory Board (ESAAB) and the Project Management Risk Committee (PMRC) for the Deputy Secretary. The Board and Committee review all capital asset projects with a Total Project Cost (TPC) of $750 million or greater. Upon request, the Committee also addresses projects with a TPC less than $750 million that are at risk of not meeting their performance baselines or are of special interest.

Independent Project Peer Reviews

Conduct independent Project Peer Reviews (PPRs) annually on all projects under the Under Secretary of Energy’s purview and EM capital asset projects with a TPC of $750 million or greater and on other projects at leadership or program request.

Project Management Support

Serve as the Project Management Support Office (PMSO) for all Under Secretary of Energy programs, (to include EERE, FE, NE, and OE) and execute the PMSO functions as detailed in DOE Order 413.3B.

External Independent Reviews

Conduct External Independent Reviews (EIRs) that validate the project performance baselines (to include scope, cost, and schedule) of all DOE and NNSA capital asset projects with a TPC of $100 million or greater at the time of the project’s formal baseline establishment.

Independent Cost Reviews and Estimates

Conduct Independent Cost Reviews (ICRs) or prepare Independent Cost Estimates (ICEs) at critical decisions and upon re-baselining, for capital asset projects with a TPC of $100 million or greater, as required by statute.

Earned Value Management System Certification and Surveillance Reviews

Conduct initial certification and periodic surveillance reviews to ensure contractor Earned Value Management Systems (EVMS), a project controls management system, for capital asset projects comply with industry standards (EIA-748) and in accordance with contract requirements.

Project Management Policy, Guidance and Oversight

Provide DOE policy, guidance, and oversight for project management.

Project Reporting

Manage, operate, and improve the Department’s Project Assessment and Reporting System (PARS), as the independent and auditable project data central repository of all relevant project data and documents. Provide monthly project status report from PARS, for senior leaders with independent assessments of capital asset projects with a TPC of $50 million or greater. Develop and maintain the Department’s project management knowledge repository.

Project Management Expertise

Provide project management advice and counseling to DOE Program Offices on current best practices, requirements, and project performance issues. Assess annual project budget submissions to ensure compliance with regulatory and statutory requirements.

Project Performance Metrics

Maintain project management performance metrics in PARS and share with senior leadership, OMB, GAO, and appropriate others, as requested.

Project Management Career Development Program

Manage the Project Management Career Development Program (PMCDP), along with associated mandatory (17) and elective (14) courses, to provide the professional development, continuous training, and certification of our Federal Project Directors (FPDs). Co-chair Certification Review Board, certifying FPDs at appropriate level.

Recent Organization Accomplishments

Project Management Risk Committee (PMRC)

As Executive Secretariat, supported 22 PMRC meetings to review 11 project critical decisions, two exemption requests, one project peer review, and several other actions over the past year.

Energy Systems Acquisition Advisory Board (ESAAB)

As Executive Secretariat, supported four ESAAB meetings in FY 2020 resulting in the approval of critical decisions totaling over $11.6B.

Created and Update Departmental Project Management Documentation

Created or updated critical Departmental directives, policies, guides, standard operating procedures, technical standards, and other documents to include DOE Order 413.3B, Program and Project Management for the Acquisition of Capital Assets.

Independent Cost Reviews and Estimates

Conducted 19 Independent Cost Estimates (ICEs) and Independent Cost Reviews (ICRs) in support of Critical Decisions (CDs) and Baseline Change Proposals (BCPs) valued at approximately $16.1B. Conducted seven External Independent Reviews (EIRs) in support of validating a project’s formal baseline (or re-baseline if a project was unable to achieve its original baseline during execution).

Earned Value Management System Certification and Surveillance Reviews

Conducted six Earned Value Management System (EVMS) certification and surveillance reviews. Developed the EVMS Compliance Standard Operating Procedure to synthesize and consolidate the extensive body of knowledge documents as well as testing protocols used in earned value reviews in order to provide consistency to reviews. Initiated a DOE sponsored research project through Arizona State University (ASU) to improve EVMS effectiveness and efficiency.

Project Peer and Independent Project Reviews

Supported the major Programs by participating in 25 Project Peer Reviews (PPRs), Independent Project Reviews (IPRs), Technical Independent Project Reviews (TIPRs), Project Definitions Readiness Index (PDRI) Assessments, and other similar reviews.

Training Curriculum Delivery

Transitioned PMCDP courses from classroom to virtual learning platform delivery, to deliver training in a more efficient and cost effective way, and to reach a larger segment of the DOE professional workforce. All of the 31 PMCDP courses are now available in a virtual learning environment.

Professional Development Program

Maintained a rigorous professional development program to provide Federal Project Directors (FPDs) with the experience, training, and knowledge needed to manage complex projects. DOE has 240 certified FPDs, and 95% of projects are led by a FPD certified at the appropriate level at the start of construction.

Research and Technical Publication Assistance

Currently supporting a research effort sponsored by the Construction Industry Institute, in concert with other Federal agencies, to develop cost estimating benchmarks for smaller-scale projects such as laboratories and mixed-use office facilities. Additionally, PM is sponsoring a research project through Arizona State University (ASU) to develop an easier method to evaluate maturity of an Earned Value Management System (EVMS) and the project performance data accuracy for the organizations using the system. Many DOE contractors are required to utilize a EVMS compliant with the EIA- 748 industry standard on their projects.

Annual Project Management Workshop

Host the annual DOE Project Management Workshop and sponsor the Department’s Project Management Awards (workshop cancelled in 2020 in response to the Coronavirus pandemic mitigation efforts). This event is typically attended by nearly 400 federal employees and contractors and facilitates the exchange of best practices and lessons learned.

Industry Leadership

Office of Project Management staff serve on the Board of Advisors for the Construction Industry Institute (CII), on the Project Management Institute (PMI) Global Executive Council, and actively participate in the Association for the Advancement of Cost Estimating-International (AACEI).

Updates to DOE Project Management Policy

Updated and published one DOE Guide (DOE G 413.3-6A, High Performance Sustainable Building); four DOE Guides (Risk Management, Project Definition Rating Index, Technology Readiness Assessment, and Earned Value Management System) are currently undergoing revision; and preparations have been initiated for the development of three new DOE Guides (Planning and Scheduling; Project Funding; and Scope). An administrative update to DOE Order 413.3B is also underway

Leadership Challenges

Impacts of the Pandemic

Executing PM’s mission under the constraints of the coronavirus pandemic; mitigation efforts have required the implementation of innovative communications methods with project teams and site offices, increased reliance on data analysis verse person-to-person engagement and streamlining procedures. The flexibility and professionalism of PM’s staff has contributed to our success during this period.

Improve Project Management Controls

Improving project management controls—such as the Earned Value Management Systems (EVMS) employed by DOE contractors across the DOE complex—to ensure sustained, timely, and reliable monthly project cost and schedule information.

Strengthen Project Assessment and Reporting

Enhancing capabilities of Department’s PARS to provide efficient and effective cost/schedule analysis capabilities to highlight more current project issues.

EM Major System Project Peer Reviews

Leading a newly instituted process of conducting EM Project Peer Reviews (PPRs) of projects, $750 million or greater.

Improve the Project Management Career Development Program

Improving PMCDP to enhance the skillset of DOE Federal Project Directors (FPDs) and project controls workforce.

Project Management Directives.

Maintaining PM directives (DOE Order 413.3B and 21 associated DOE Guides), incorporating all recent Secretarial policy memorandums.

Project Management Continuous Improvement

Sustaining continuous improvement momentum in project management, senior leader engagement, and conformance with all Departmental project management requirements.

GAO High-Risk List

Continuing efforts for removal from the GAO High- Risk List (for “Contract (Project) Management) for projects greater than $750 million.

Critical Events and Action Items

3-month events

Brief the Deputy Secretary on GAO’s High-Risk List to include the background, recent policy changes, project management success metrics, and strategy forward.

6-month events

Hold Quarterly ESAAB meetings to review all capital asset projects $750 million or greater. The Deputy Secretary will hold an Energy Systems Acquisition Advisory Board (ESAAB) meeting to review and approve the Critical Decision (CD)-1, Approve Alternative Selection and Cost Range, for both the NNSA Savannah River Plutonium Pit Processing Facility (SRPPPF) ($4.6B) and the Los Alamos Plutonium Pit Production Project ($2.7B).

Organizational Chart

Alt=organizational Chart for Office of Project Management

Links

Internal

Department of Energy

Office of Project Management

External

Department of Energy

Department of Energy Offices

Office of Project Management