WHAT ARE THE BASIC PRINCIPLES AND OBJECTIVES OF PROJECT MANAGEMENT?

1.  Use Project Management fundamentals as part of our broader management agenda with: 

-Line management accountability;
-Effective up-front planning;
-Accurate performance measurement;
-Management of risk; and
-Communication with stakeholders.

2.  Provide effective program and project acquisition systems such that Department of Energy (DOE) projects are delivered on time, within budget, and fully capable of mission performance.

Although the Department depends upon outstanding companies, universities and other partners for the day-to-day project execution and management, the overall execution, management and performance of DOE’s mission remain the ultimate responsibility of the Federal officials of this Department.  We must continually improve our methods, processes and management to mitigate risks, better control costs and achieve better performance. 

WHY IS PROJECT MANAGEMENT IMPORTANT?

While DOE has successfully delivered the vast majority of its projects, we must increase our success rate and continually improve our management of all of our projects.  Companies in the business of project management, such as the engineering and construction industry and the aerospace and defense industries, tell us that achieving project management success is a very difficult and a never ending challenge for them.  We should not expect to spend any less effort on this than the best of our private sector peers do.  Further, what makes DOE’s projects among the most exciting in the world is that they are frequently one of a kind using complex systems and technologies in a first time application.  Obviously, this requires even more planning and expectations management at the inception of a project and skillful management of its delivery.

The Department has billions of dollars invested in projects, which are planned or under construction.  To complete these projects successfully, safely and within budget, the Department has significantly revised its project management policies and practices to increase accountability, require effective up-front planning, improve performance measurement, and manage risk within the Department’s acquisition management system.
 
WHAT IS THE DEPARTMENT DOING ABOUT PROJECT MANAGEMENT?

On June 25, 1999, the Deputy Secretary announced by memorandum the beginning of a DOE-wide initiative to reform the way the Department manages projects by strengthening accountability for project performance, and thereby, improving project performance.  As DOE’s Chief Operating Officer and Acquisition Executive, the Deputy Secretary directed actions be taken in the following seven areas.  The following areas summarize several aggressive and comprehensive actions the Department has taken since 1999 to achieve strong project management capabilities.  

1.  Establish a Strong Corporate Project Management Organization in the Office of Management, Budget and Evaluation/ Chief Financial Officer to strengthen project management direction and oversight. 

The Office of Engineering and Construction Management (OECM) was established and is responsible for driving change in the Department’s project management system and supporting the Department’s project managers.  This organization is closely aligned with contract reform initiatives and improvements in our financial reporting and budget control systems, crucial to overall Departmental success.   DOE O 413.3 and DOE M 413.3-1 were issued to provide DOE project management direction. 

OECM serves as Secretariat for the Energy Systems Acquisition Advisory Board (ESAAB) and provides analytical support and recommendations to that board.  The ESAAB advises the Secretarial Acquisition Executive on key critical decision points, (e.g., approving a baseline, initiating construction), related to major system projects with total project costs over $400 million.  The Office also provides assistance to the Program Offices in establishing their decision processes on smaller projects.

2.  Establish Project Management, Tracking, and Control Systems. 

The OECM established the Project Assessment and Reporting System (PARS).  PARS provides a web-based system for Programs to report project status and corrective actions.  Starting at Critical Decision – 0, project status is reported monthly utilizing the PARS, and the Acquisition Executive begins conducting quarterly progress reviews.  OECM is invited to all quarterly reviews. 

3.  Establish the Chief Operations Officer’s (COO’s) Watch List for projects with significant issues or emerging problems. 

The COO Watch List report has now been replaced with OECM’s Monthly Project Status Report of all open projects to the Deputy Secretary.  This report presents the project status data collected in PARS; earned value codes of red, yellow, or green; and other items of interest.  For projects where corrective actions are not being made in a timely fashion, the Department may withhold, redirect, or withdraw funding, or initiate other contractual actions which may include key personnel changes, fee reductions, and/or contract scope reductions. 

4. Strengthen line management accountability for project management results. 

Program Secretarial Officers (PSOs) have established project management offices within their organizations reporting directly to them that include the roles and responsibilities listed in DOE M 413.3-1.  Each office should be staffed by appropriately skilled personnel who will keep the PSO fully informed on project management performance, including implementation of corrective actions.  The Program Project Management offices will coordinate with the OECM to ensure effective and consistent development and implementation of Department policies throughout the line.

The PSOs have line accountability for applicable program and project execution.   Successful performance of DOE projects depends on professional and effective project management by the Federal Project Directors as well as the Contractor Projector Managers.  Key roles and responsibilities of line managers are defined in DOE M 413.3-1.  Line managers, extending from the Secretary to the PSO, the Field Manager and contractor executives, are the individuals held responsible and accountable for successfully developing, executing, and managing our projects within cost, schedule, and scope commitments.   They are also expected to ensure that project management will incorporate integrated safety management principles and functions.  The initiatives were intended to strengthen the PSO ability to manage projects without calling into question either their authority or ultimate responsibility.

In coordination with its project management office, each PSO will provide an assessment of the organization’s project management system, along with their plan to correct identified deficiencies or establish management improvements, as appropriate.  These assessments and action plans will be compiled and evaluated in the context of a working management system for the Department by the OECM.  This system will incorporate reviews of project management issues and the status of corrective action plans, to ensure that accountability is being maintained.

5.  Establish greater contractor accountability for project management. 

The Department will assess issues involved in contractor project management and steps required to improve performance in acquisition and contracting.  Contractor performance measures and incentives must be enhanced to focus on key project success factors, not the process itself.  Roles and responsibilities of the DOE project management team and the contractor project management team are defined in DOE M 413.3-1.

6. Revise the criteria and funding processes related to a DOE project. 

Budgeting for the acquisition of capital assets is an integral part of DOE’s Planning, Programming, Budgeting, and Evaluation (PPBE) Process.  The PPBE Process provides a systematic framework for prioritizing program needs, allocating resources, measuring performance and delivering results.  OECM plays an integral role during the budget cycle in reviewing Project Data Sheets against reported project status, baseline validations and project plans.

The Department implemented use of Project Engineering and Design (PED) funds in FY 2003.  Once Critical Decision – 1 is obtained, PED funds become available for use on preliminary design and final design, baseline development, and/or a statement of work/request for proposal for a design/build project.  PED funds are requested using a Project Data Sheet.  PED funds are not to be used for construction, long-lead procurement, or major equipment items.   

OECM will continue to work with OMB and Congressional Committees to find ways to improve budgeting and funding processes as related to project management. 

7.  Develop a longer term program for institutional capacity building. 

OECM has overall responsibility for developing and overseeing the Project Management Career Development Program (PMCDP).  This is a Department-wide program establishing criteria and standards for developing and certifying DOE’s Federal Project Directors.  The mandatory facets of the PMCDP are institutionalized in DOE O 361.1, Attachment 4 Project Management Career Development Program Module.

The DOE Project Management Manual and Order are building blocks on our way to improved project and general management.  The Department’s broader management agenda will not be complete without adequate organizational and training implementation, attention to other key management issues such as safety, and many other features of our management systems.

WHAT IS A GENERAL DESCRIPTION OF THE PROCESSES UNDER PROJECT MANAGEMENT? 

What is DOE’s Acquisition Management System?

DOE’s Acquisition Management System establishes a management process to translate user needs and technological opportunities into reliable and sustainable facilities, systems, and assets that provide the required mission capability.  The system is organized by phases and Critical Decisions.  The phases represent a logical maturing of broadly stated mission needs into well-defined technical, system, safety, and quality requirements and ultimately into operationally effective, suitable and affordable facilities, systems, and other end products.  The Acquisition Management System supports the PPBE process by providing project planning, budget justification, and project performance information.  
 
Roles, responsibilities, and authorities drive the implementation of the Acquisition Management System.  The authority to make decisions and the responsibilities for executing the decisions are aligned according to the complexity, criticality and cost parameters for all projects.  This authority is by appointment and is designated or delegated as directed in DOE M 413.3-1.  DOE M 413.3-1 emphasizes three themes regarding roles and responsibilities that are necessary to consistently achieve defined project objectives:

-Strengthening line management accountability for project management results;
-Clearly defining the roles and responsibilities of the Federal project management team relative to the contractor project management team; and
-Developing effective Integrated Project Teams to assist the Federal Project Director in planning, programming, budgeting and acquisition of capital assets.

What are the requirements that form the framework? 

The Acquisition Management System uses a cascaded set of requirements, direction, guidance, and practices that minimize mandatory requirements and provide balance and effectiveness while protecting the public trust. Identification, implementation, and compliance with requirements other than DOE O 413.3 and DOE M 413.3-1 are the responsibility of line management, including the Federal Project Director and the Integrated Project Team (IPT). Key requirements include:

-Critical Decisions including approval of Mission Need, Alternative Selection and Cost Range, Performance Baseline, Start of Construction, Start of Operations;
-Acquisition Strategy;
-Risk Management with analysis, forward-looking, structured, informative and continuous;
-Project Changes identified, controlled and managed through a traceable, documented process;
-Performance Baseline deviations managed with appropriate approval authority;
-Tailoring of requirements in consideration of the complexity, cost, and risks of each project;
-Validations and independent reviews; and
-Federal Project Directors that are certified appropriate with the complexity of the project.

What is the Integrated Project Team? 

The IPT is an essential element of the Department’s acquisition process and will be utilized during all phases of a project life cycle.  The IPT is a team of professionals representing diverse disciplines with the specific knowledge, skills, and abilities necessary to support the successful execution of projects.  The Federal Project Director is the IPT lead.  As the project progresses from Initiation to Transition/Closeout, the IPT membership will change to incorporate the necessary skills and expertise required. 

What is the Earned Value Management System (EVMS)?

Recently, the Office of Management and Budget (OMB) and the Government Accountability Office have placed increased emphasis on the effective management of projects across the Federal Government and at the DOE in particular.  Project management tools currently contained in DOE O 413.3, “Program and Project Management for the Acquisition of Capital Assets,” provide excellent means to ensure that DOE contracts and projects are properly managed.  Integral to the effective management of the contract under the requirements of DOE O 413.3 is the monitoring of schedule and cost performance through the ANSI Standard 748 compliant Earned Value Management System (EVMS). 

1.  What is the objective of an EVMS?

The objective of EVMS is to design and implement integrated management processes to achieve effective project oversight, facilitate DOE performance reporting, and to recognize early warning signals in project performance.  This should be accomplished in a common, well-understood framework that facilitates communicating progress and performance as well as support course correction when a project goes off the path.  The responsibility for developing and complying with the standard resides with the performing organization whether it is a contractor or a Government entity.

Industry has long recognized the importance of earned value in program and project management, and the industry-developed American National Standards Institute (ANSI)/Electronic Industries Alliance (EIA) Standard - 748-A-1998, Earned Value Management Systems (EVMS) approved May 19, 1998, reaffirmed August 28, 2002, defines 32 criteria for implementing earned value management.  A copy of Standard 748 is available from Global Engineering Documents (1-800-854-7179).  An EVMS that complies with the standard will contain the characteristics of a good EVMS.  Some of these characteristics include:

*thorough planning;
*information broken down by organization and product;
*objective measurement of accomplishing tasks against the EVMS;
*summary of the level where work is performed, reported to management or used in decision making;
*improved reporting discipline; and
*implementation of management actions to manage risk, cost, and schedule performance. 

2.  What are the requirements for EVMS?

DOE O 413.3, Attachment 3, Contractor Requirements Document requires the industry standard for project control systems described in ANSI EIA 748-1998, Earned Value Management Systems, to be implemented on all projects with a total project cost greater than $20M. 

Both DOE O 413.3 and DOE M 413.3-1 state that the OECM within the Office of Management, Budget and Evaluation (OMBE) manages the EVMS certification process.  For projects executed under time-and-material contracts, firm-fixed-price contracts, or level of effort support contracts, the Acquisition Executive may approve an alternative performance management system.  The alternative performance management system must be described in the Project Execution Plan.
 
OMB Circular No. A-11, Part 7, Section 300 provides definitions for earned value computations, requires performance curve graph plotting on a monthly basis, and EVMS variance analysis.  OMB evaluates business cases and capital asset plans based on earning the maximum scoring when an agency uses an EVMS that meets ANSI/EIA Standard 748 and the investment is earning the value as planned for costs, schedule, and performance goals.  It also requires a description of the performance-based management system used by the agency to analyze and use the earned value performance data to manage performance and the process planned to verify that the contractor’s project management system follows the ANSI/EIA Standard 748A. 
 
3.  How has the department implemented EVMS?

DOE O 413.3 requires that project Acquisition Strategies be written early in the project planning phase and prior to Critical Decision -1 Approve Alternative Selection and Cost Range - must address the IPT’s approach to managing the project.  This includes a description of the project management and control system that will be used to successfully execute the project, i.e., EVMS for projects over $20M. 

Please note that DOE O 413.3 is in the process of being updated.  One of the updates will be an enhancement of the definition of major information technology investments and the use of EVMS as required by OMB Circular A-11.   It is the responsibility of the federal project director to insure that EVMS is properly invoked in contracts. 

Contracting Officers insert the clause at DEAR 970.5204-2, Laws, Regulations and DOE Directives in management and operating (M&O) contracts.  Department of Energy directives are identified in the List of Applicable Directives (List B should include DOE O 413.3) appended to the contract.  The contracting officer may, from time to time and at any time, revise List B by unilateral modification to the contract to add, modify, or delete specific requirements. 

For other than M&O contracts, contracting officers have used a Section H clause on Project Control Systems or an EVMS clause requiring DOE O 413.3 with CO approval of the following: (1) project control system; (2) compliance review of the contractor system; (3) any changes to the approved system; and flow down to subcontracts. 

When implementing the EVMS, contractors must be prepared to demonstrate compliance with the criteria and undergo a certification review by the Department.  The certification authority for the Department is OECM within OMBE.  A system description is usually used to document the system and should be available for the review.  The objective of the review is for the Department and the contractor to jointly assess compliance with the standard.  This will be accomplished by assessing specific areas, such as the contractor’s planning, to ensure complete coverage of the statement of work, logical scheduling of the work activities, and adequate resources allocation.

Once an EVMS has been accepted, all significant proposed changes to the system should obtain concurrence to ensure that the certification is not compromised.   The Department has entered into a Memorandum of Agreement with the Defense Contract Management Agency (DCMA) to conduct acceptance reviews in cooperation and coordination with the Department.  The DCMA is the executive agent for EVMS in the Department of Defense and provides EVMS support to the Department of Defense and other Government agencies. 

Previously accepted and/or certified EVMSs by the DCMA will be accepted by the Department.  If the contractor proposes to use a system previously approved by the Department or other Federal agency, the project office, or program office should submit a memorandum to OMBE stating that the project will use a previously approved system, and include the particulars of that approval.  An EVMS that was previously approved for a small project may not be deemed as adequate for a Major System.  If a contractor is responsible for an entire site location that requires execution of projects, a site certification may be requested and issued upon review or assessment. 

Go to additional information on earned value management systems, and at http://wwwacq.osd.mil/pm

What are the Contracting Officer’s Responsibilities under Project Management and the EVMS?

The contracting officer is broadly responsible for ensuring that the requirements of the contract (cost, schedule, quality, etc.) are met by the contractor.  FAR 1.602-2 states that “contracting officers are responsible for ensuring performance of all necessary actions for effective contracting, ensuring compliance with the terms of the contract, and safeguarding the interests of the United States in its contractual relationships.”  In fulfilling these responsibilities, it is inherent within the scope of the contracting officer’s duties that he or she must monitor the contractor’s performance under the contract. 

Performance monitoring is conducted with the assistance of representatives expert in various technical and administrative areas including the Federal Project Director.  DOE Order 413.3 provides project management tools for monitoring performance.  The EVMS is an excellent tool for monitoring both cost and schedule performance under the contract.

While the contracting officer is not expected to be an expert in the EVMS, he or she must have a basic understanding of the principles of the system in order to monitor performance effectively and be conversant with the other members of the Integrated Project Team.  The EVMS is capable, when properly used, to provide insight into whether the contractor is on schedule and performing within budget and scope.  In other words, EVMS provides the ability to assess if the contractor is making satisfactory progress. 

We all would like the contractor to achieve satisfactory performance under the contract and deliver that project on time.  It makes our jobs so much simpler.  However, we all know that sometimes that just doesn’t happen.

The EVMS gives us an early warning system for detecting performance problems.  If we listen to that early warning system and take timely action when appropriate, the opportunity exists to identify problems and, hopefully, get the contractor back on track.  However, if we don’t pay attention to the warning signs that the EVMS provides us and take timely corrective actions, getting the contractor back on track may not be possible, and additionally, the Government may inadvertently waive its rights under the contract. 

The Contractor Requirements Document attached to DOE O 413.3 lays a number of requirements on the contractor relating to project management and the EVMS.  If problems in the contractor’s performance do produce variances which “exceed DOE-established reporting thresholds,” the contractor is required to prepare and report variance analyses and corrective action plans to hopefully resolve the problem.  The Integrated Project Team (IPT) needs to be constantly aware of the contractor’s performance progress. 

If performance does become a problem, there are a number of remedies open to the IPT and the contracting officer.  Whenever the contractor’s satisfactory progress under the contract is perceived to be endangered but before a contractual delivery is actually missed, the contracting officer always has the right to notify the contractor and request an explanation regarding the cause of the problem and the contractor’s plans for getting back on track.  When identification of a problem becomes more severe, the Government has more formal remedies which can be exerted in order to preserve its rights.  Such remedies are the Show Cause Notice and Cure Notice discussed at FAR 49.607. 

If progress under the contract or project is so poor that termination or rebaselining is contemplated, DOE O 413.3 identifies the DOE management individuals who must be involved in making the decision for either termination or rebaselining.  A specific determination must be made by the Secretarial Acquisition Executive for Major System projects, and the Program Secretarial Officer/Deputy Administrator NNSA for non-major system projects, whether to terminate the project or change the Performance Baseline.

Where can I find information on project management training requirements?

For more information please refer to DOE O 361.1A, Acquisition Career Development Program, which lists the specific training requirements for project/program managers and contracting officers in the area of project management.  For example, for a Contract Specialist certified at Level III, a Project Management Overview course is required.  Included in the Order is the DOE Project Management Career Development Program for project managers that details the training requirements by four certification levels.

WHAT ARE MY MAJOR ROLES AND RESPONSIBILITIES IN THE AREA OF PROJECT MANAGEMENT?

On the following pages are the major roles and responsibilities of members of the contract administration team.  Key sections of documents have been summarized for ease of reference.  Please bear in mind that the referenced documents themselves are controlling and should be consulted for a complete discussion of the various roles, responsibilities and requirements.  Additionally, other documents, not listed here, may contain other roles and responsibilities.

Note:  Various responsibilities on the following pages are marked with an asterisk (*).  This signifies that the responsibility is not specifically assigned to this individual by a clause, regulation, or procedure.  It is suggested because:
(1) The responsibility is necessary to perform Government contract administration responsibilities.
(2) (2) The responsibility is stated in the reference as a DOE/Government responsibility; and is either commonly performed by this individual or reflects “good business practice.”

Local guidance may determine who specifically is obligated to perform the responsibility.

DEPUTY SECRETARY

Serves as the senior manager responsible and accountable for all project acquisitions. [DOE M 413.3-1]

Exercises decision-making authority, including Critical Decisions for all Major System projects.  [DOE M 413.3-1]

Ensures senior executive level quarterly reviews are conducted for those projects. [DOE M 413.3-1]

Approves disposition of projects and Performance Baseline changes at SAE approval level following Performance Baseline deviations. [DOE M 413.3-1]

Serves as the chair for the Energy Systems Acquisition Advisory Board. [DOE M 413.3-1]

Approves site selection for facilities for new sites. [DOE M 413.3-1]

Addresses and resolves issues that crosscut between NNSA and Energy, Science and Environment programs. [DOE M 413.3-1]

UNDER SECRETARY FOR ENERGY, SCIENCE AND ENVIRONMENT AND THE ADMINISTRATOR FOR NNSA

Receive Acquisition Executive authority from the SAE and delegate, as appropriate. [DOE M 413.3-1]

Exercise decision-making authority, including Critical Decisions when functioning as Acquisition Executives. [DOE M 413.3-1]

Serve as chairs and appoint members for acquisition advisory boards. [DOE M 413.3-1]

Approve disposition of projects and Performance Baseline changes below SAE approval level following Performance Baseline deviations (may be delegated to PSOs/Deputy Administrators). [DOE M 413.3-1]

Establish Project management Support Offices or delegate responsibility to PSOs/Deputy Administrators/Associate Administrators. [DOE M 413.3-1]

PSOs AND DEPUTY ADMINISTRATORS/ASSOCIATE ADMINISTATORS FOR NNSA

Have line accountability for applicable program and capital asset project execution and implementation of policy. [DOE M 413.3-1]

Execute accountability for site-wide environment, safety, and health and safeguards and security. [DOE M 413.3-1]

Approve Mission Need Statement and Acquisition Strategy documents (cannot be delegated). [DOE M 413.3-1]

Approve disposition of projects and Performance Baseline changes below SAE approval level following Performance Baseline deviations, if delegated the authority (cannot be further delegated). [DOE M 413.3-1]

Exercise decision-making authority, including Critical Decisions when functioning as Acquisition Executive. [DOE M 413.3-1]

Responsible for Critical Decision – 0 Approve Mission Need, for all projects $100 million and below (cannot be delegated). [DOE M 413.3-1]

Delegate as appropriate, Acquisition Executive functions. [DOE M 413.3-1]

Approve selection of the Project Director for projects no later than Critical Decision – 1. [DOE M 413.3-1]

Serve as chairs, appoint members for acquisition advisory boards, and direct independent reviews.  [DOE M 413.3-1]

Establish project management support offices when responsibility is delegated or directed by Under Secretary/Administrator NNSA. [DOE M 413.3-1]

PROJECT MANAGEMENT SUPPPORT OFFICES (WHEN ESTABLISHED)

Provide independent oversight and report directly to the Under Secretary, NNSA Administrator, or PSO, as appropriate. [DOE M 413.3-1]

Serve as the Secretariat for the PSO/NNSA-level Advisory board functions. [DOE M 413.3-1]

Coordinate quarterly performance reports. [DOE M 413.3-1]

Coordinate with other DOE organizations and offices, including OECM, to ensure effective and consistent implementation project management policies and directives. [DOE M 413.3-1]

Provide assistance and oversight to line project management organizations. [DOE M 413.3-1]

Analyze project management execution issues. [DOE M 413.3-1]

Actively assist senior management on issues related to project management performance, including implementation of corrective actions. [DOE M 413.3-1]

PROGRAM MANAGERS, HEADS OF FIELD ORGANIZATIONS AND OTHERS REPORTING AT THIS LEVEL

Direct initial project planning and execution roles for projects assigned by the Acquisition Executive. [DOE M 413.3-1]

Initiate definition of mission need based on input from sites, laboratories, and Program Offices. [DOE M 413.3-1]

Establish Integrated Project Teams no later than Critical Decision – 0. [DOE M 413.3-1]

Oversee development of project definition, technical scope, and budget to support mission need. [DOE M 413.3-1]

Initiate development of the Acquisition Strategy before Critical decision – 1. [DOE M 413.3-1]

Perform functions as Acquisition Executive when so delegated. [DOE M 413.3-1]

Develop project performance measures, and monitor and evaluate project performance throughout the project’s life cycle. [DOE M 413.3-1]

Allocate resources throughout the program. [DOE M 413.3-1]

Oversee the project line management organization. [DOE M 413.3-1]

CONTRACTING OFFICER (CO)

Is a member of the Integrated Project Team.  [DOE O 413.3]

Develops and concurs in Acquisition Strategies.  [DOE O 413.3]

*Provides approval of the project control system, changes to the system and flow down to subcontracts.  [DOE O 413.3]

*Based on input from the Federal Project Director:

1.  When DOE O 413.3 and/or EVMS are required, ensure that the proper terms and conditions requiring DOE O 413.3 and EVMS are included in the solicitation/contract,

2.  After award, ensure compliance with the requirements of the contract including DOE O 413.3 and EVMS (compliant with the ANSI/EIA Standard 748A) to the extent requirement.  [DOE O 413.3]

*Monitors project performance in coordination with members of the Integrated Project Team. [DOE O 413.3]

*Maintains communications with contractor on matters of contract compliance.  [FAR 1.602-2]

Takes appropriate and timely remedial action(s) when contractor performance deficiencies, delinquencies or failures are identified.  Actions may include the issuance of cure or show cause notices and/or full or partial terminations notices consistent with the terms and conditions of the contract and FAR Part 49.

OFFICE OF THE CHIEF INFORMATION OFFICER

Establishes and maintains Department-wide guidance for Information Technology investment management projects, including Information Technology hardware, software and application and capital assets. [DOE M 413.3-1]

*See Page 1-11.

Develops supporting policy, requirements, and guidance for Information Technology investments and projects. [DOE M 413.3-1]

Provide Information Technology investment management process assistance to Program Office, field elements, and contractor locations, as requested. [DOE M 413.3-1]

Regularly collects process performance measurement information, and prepares a summary report on the status and performance of Information Technology investment management processes. [DOE M 413.3-1]

OFFICE OF ENGINEERING AND CONSTRUCTION MANAGEMENT WITHIN THE OFFICE OF MANAGEMENT, BUDGET AND EVALUATION

Serves as DOE’s principal point of contact relating to project management. [DOE M 413.3-1]

Develops policy, requirements, and guidance for the acquisition of capital assets. [DOE M 413.3-1]

Assists in the planning, programming, budgeting and execution process for the acquisition of capital assets in coordination with Program Secretarial Offices and project management support offices. [DOE M 413.3-1]

Supports the Office of the Secretary, the SAE, the NSA Administrator and the Program Assistant Secretarial Office in the Critical Decision process and oversight of the acquisition management process. [DOE M 413.3-1]

Serves as Secretariat for the Energy Systems Acquisition Advisory Board functions. [DOE M 413.3-1]

Serves as an acquisition advisory board member for non-Major System projects over $20 million. [DOE M 413.3-1]

Manages the Project Manager Career Development Program. [DOE M 413.3-1]

Manages the Earned Value Management System certification process. [DOE M 413.3-1]

Provides an independent assessment and analysis of project planning, execution and performance. [DOE M 413.3-1]

Reviews acquisition strategies for all capital asset projects. [DOE M 413.3-1]

Coordinates review of Mission Need Statement with OMBE Office of Program Analysis and Evaluation. [DOE M 413.3-1]

Maintains a corporate project reporting capability. [DOE M 413.3-1]

Establishes, maintains and executes a corporate independent review capability. [DOE M 413.3-1]

Validates the Performance Baseline for all capital asset projects to permit inclusion in the budget. [DOE M 413.3-1]

INTEGRATED PROJECT TEAM

Supports the Project Director. [DOE M 413.3-1]

Develops a project contracting strategy. [DOE M 413.3-1]

Ensures all project interfaces are identified, completely defined, and managed to completion. [DOE M 413.3-1]

Identifies and defines appropriate and adequate project technical scope, schedule, and cost parameters. [DOE M 413.3-1]

Performs monthly reviews and assessments of project performance and status against established performance parameters, baselines, milestones, and deliverables. [DOE M 413.3-1]

Plans and participates in project reviews, audits, and appraisals, as necessary. [DOE M 413.3-1]

Reviews all Critical Decision packages for completeness and recommends approval/disapproval. [DOE M 413.3-1]

Reviews and comments on project deliverables (e.g., drawings, specifications, procurement, and construction packages). [DOE M 413.3-1]

Reviews change request (as appropriate) and supports change control boards as requested. [DOE M 413.3-1]

Plans and participates in operational readiness reviews. [DOE M 413.3-1]

Supports the preparation, review, and approval of project completion and closeout documentation. [DOE M 413.3-1]

FEDERAL PROJECT DIRECTOR

Federal official responsible and accountable for overall success of the project. [DOE M 413.3-1]

Charters and leads the Integrated Project Team. [DOE M 413.3-1]

Tailors DOE project management requirements to the project. [DOE M 413.3-1]

Ensures timely completion and quality of required project documentation. [DOE M 413.3-1]

Assesses contractor project performance versus contract requirements. [DOE M 413.3-1]

Ensures quality and timely completion of project documentation and other deliverables. [DOE M 413.3-1]

Proactively identifies and ensures timely resolution of critical issues within Federal control that impact project performance – strives to remove any barriers to project success. [DOE M 413.3-1]

Integrates and manages the timely delivery of Government reviews, approvals, property, services, and information. [DOE M 413.3-1]

Assesses and reports project performance to DOE management. [DOE M 413.3-1]

Monitors contractor’s risk management efforts. [DOE M 413.3-1]

Manages DOE project contingency funds. [DOE M 413.3-1]

CONTRACTOR PROJECT MANAGER

Contractor official responsible and accountable for successful execution of contractor’s project scope of work. [DOE M 413.3-1]

Key member of the IPT. [DOE M 413.3-1]

Chairs the contractor’s IPT. [DOE M 413.3-1]

Supports Federal Projector Director in implementing DOE project management process. [DOE M 413.3-1]

Provides input on project documents and develops and maintains contractor project documentation. [DOE M 413.3-1]

Defines the contractor project organization. [DOE M 413.3-1]

Manages the day-to-day project execution activities. [DOE M 413.3-1]

Implements contractor performance measurement system. [DOE M 413.3-1]

Delivers project deliverables as defined in the contract on time and within budget. [DOE M 413.3-1]

Proactively identifies and ensures timely resolution of critical issues within contractor’s control which impact project. [DOE M 413.3-1] 

WHERE CAN I GO FOR MORE DETAILED INFORMATION ON PROJECT MANAGEMENT?

1. DOE O 413.3 “Program and Project Management for the Acquisition of Capital Assets”
2. DOE M 413.3-1 “Project Management for the Acquisition of Capital Assets”
3. DOE P 413.1 “Program and Project Management for the Planning, Programming, Budgeting and Acquisition of Capital Assets”
4. DOE O 361.1 “Acquisition Career Development Program, Attachment 4 Project Management Career Development Program Module”
5. OMB Circular -11, Part 7 “Planning, Budgeting, Acquisition and Management of Capital Assets”
6. Office of Engineering and Construction Management Project Management Practices Website
7. Construction Industry Institute (DOE is a member of CII).  For login and password to access CII products and publications contact Rajeev Railian, OECM 202-586-3620, Rajeev.railian@hq.doe.gov) http://www.construction-institute.org
8. Project Management Institute http://www.pmi.org
9. DOE Acquisition Guide, Chapter 70.7, “Contract Administration,” (Reference Book for Contract Administrators, Chapter 42.5, “Contract Management Planning”)
 
CHAPTER REVISIONS
Date   Subject of Revision
November 10, 2004.   1.  Revised chapter to include an update on project management and earned value management systems.