Cost Estimating Subgroup (CES) FY2013 EFCOG Annual Meeting Daniel - - PowerPoint PPT Presentation

Cost Estimating Subgroup (CES) FY2013 EFCOG Annual Meeting

Daniel Ferguson, CEP B&W TS Pantex Working Group Chair June 11, 2013

CES Topics

 Ratify Charter Revision  DOE Critical Publications  FY13 Achievements to Date  FY13 Achievements Here  FY13 Achievement to Go  Publications by the National Academies  Planned/Proposed Meetings for FY14  Issues  CES in Summary

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CES Change in Charter

 Revised CES Charter to Reflect Changes  Record acknowledgement by CES members  Request approval by PMWG  Ratify Revised Charter

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DOE Critical Publications

 Root Cause Analysis Guidance (FEB 2011)  Work Breakdown Structure Handbook

(AUG 2012) applies to all projects subject to DOE O 413.3B

 DOE Cost Guide 413.3-21(Application)  DOE O 430.1B Real Property Asset

Management & Condition Assessment Information System

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FY13 Achievements to Date

 Semi-Annual PMWG Meeting:

 7 December 2012 – Washington, DC  40+ PMWG attendees

 Result 1: DOE-APM presented “DRAFT” WBS

handbook under DOE O 4713.3B

 Result 2: John Ball, NST LLC, addressed topic

“Escalation-Inflation” to PMWG

 Result 3: Recorded Changes to Sponsors  Result 4: AACEI Code of Ethics addressed

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FY13 Achievements Here

 Issue the White Paper on Escalation and

Inflation Study

 John Ball: lead action officer  Collaborative effort with Univ. of Cincinnati

Economic Depart

 Apply a Training module for a walk through of the

calculation process for a project application

 Establish a Committee to validate results of this

white paper in a comparison with other Escalation methods applied at DOE and private sector

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FY13 Achievements On Going

 Ongoing activities:

 Incorporation of GAO 12 key steps  Respond to the effects of Sequestration-Prepare for Long Term  Provides support to 413.3-12 “Project Definition Rating Index

Guide for Traditional Nuclear and Non-Nuclear Construction Projects

 Alignment with the Association for the Advancement of Cost

Engineering (AACE) international practices

 Advance the WBS Handbook through the EVMS Sub-Group to

the respective CFOs & Project Controls Divisions to test and apply on new projects

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FY13 Achievements To Go

 Establish a CER Table of Ranges (in %) for

CD levels on Line Items

 Develop % Ranges for pre-CD-0 thru CD-3 based

upon metrics applied to projects deemed successful in Root Cause Analysis Final Issue

 To be used as a basis for establishing budgets for

CD-0 through CD-2 to increase project success

 Potential to mitigate premature advancement of a

project in to CD-3 and minimize false starts

 Reference: Starting Smart-Key Practices For Developing

Scopes of Work For Facility Projects-Federal Facilities Council TR#146

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Publications by the National Academies-Welcomed Resources

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First: Starting Smart: Key Practices for Developing Scopes of Work for Facility Projects, http://www.nap.edu/catalog/10870.html

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Second: Understanding and Managing Risk in Security Systems for the DOE Nuclear Weapons Complex, http://www.nap.edu/catalog.php?record_id=13108

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Third: The Owner's Role in Project Management and Preproject Planning, http://www.nap.edu/catalog/10343.html

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Forth: The Owner's Role in Project Risk Management, http://www.nap.edu/catalog/11183.html

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Fifth: Measuring Performance and Benchmarking Project Management at the Department of Energy, http://www.nap.edu/catalog/11344.html

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Planned/Proposed Meetings for CY 2014 (Full WG and Subgroups)

 Distribute Copies of the Annual June Meeting  Send out a Survey for feed back on Actions

and Issues

 Verify, then Use the Survey results in the

Virtual Workshop

 Establish an On-line: Virtual Workshop  Monthly: Tele-Conferences JUNE-DEC

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Issues

 Application of AACEI Code of Ethics  Survey sites for impacts of Sequestration  DOE’s position on DOE/IG-0874  NNSA’s position on GAO-13-510T  NNSA’s Response to House Panel, “Fencing

Off Funds in FY 2014”

 New Streamlining Initiative by NNSA  Support for Real Estate, FIMS & Real

Property, and Personal Property

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CES Summary

 We see a growing working relationship with

APM

 Health of the CES is strong…

 But membership participation limited due to the

imposition of “Sequestration”

 And needs to Apply Technology for Virtual

Workshops to encourage greater participation

 By Searching & Sharing New Sources of

Information and Software

 With Potential to Provide Additional Support

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