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CD-1 approval marks the completion of the project definition phase and the conceptual design. This is an iterative process to define, analyze, and refine project concepts and alternatives. This process uses a systems engineering methodology that integrates requirements analysis, risk identification and analysis, acquisition strategies, and concept exploration in order to evolve a cost-effective, preferred solution to meet a mission need. The recommended alternative should provide the essential functions and capabilities at an optimum life-cycle cost, consistent with required cost, scope, schedule, performance, and risk considerations.
CD-1 approval marks the completion of the project definition phase and the conceptual design. This is an iterative process to define, analyze, and refine project concepts and alternatives. This process uses a systems engineering methodology that integrates requirements analysis, risk identification and analysis, acquisition strategies, and concept exploration in order to evolve a cost-effective, preferred solution to meet a mission need. The recommended alternative should provide the essential functions and capabilities at an optimum life-cycle cost, consistent with required cost, scope, schedule, performance, and risk considerations.
The cost range provided at CD-1 should provide a Basis of Estimate (BOE) that includes all project scope as identified in the Work Breakdown Structure (WBS, typically to Level 3), with traceable justification of costs (labor and non-labor) that integrate into the point estimate . It does not represent the Performance Baseline (PB), which will be established at CD-2. Similarly the schedule should be estimated based on durations of R&D, design development, procurements, major construction tasks, and verification and commissioning. Major project milestones including Critical Decisions (CDs) should be included.
The cost range provided at CD-1 should provide a Basis of Estimate (BOE) that includes all project scope as identified in the Work Breakdown Structure (WBS, typically to Level 3), with traceable justification of costs (labor and non-labor) that integrate into the point estimate . It does not represent the Performance Baseline (PB), which will be established at CD-2. Similarly the schedule should be estimated based on durations of R&D, design development, procurements, major construction tasks, and verification and commissioning. Major project milestones including Critical Decisions (CDs) should be included.
An Analysis of Alternatives (AoA) will be conducted for projects with an estimated Total Project Cost (TPC) greater than $50M prior to the approval of CD-1 and may also be conducted when a performance baseline deviation occurs.
An Analysis of Alternatives (AoA) will be conducted for projects with an estimated Total Project Cost (TPC) greater than $50M prior to the approval of CD-1 and may also be conducted when a performance baseline deviation occurs.
The cost range provided at CD-1 is the preliminary estimate for the selected alternative. As CD-1 progresses to CD-2, the TPC will be refined and the TPC established at CD-2 may be higher than the range defined at CD-1, in which case the Project Management Executive (PME - see the Project Decision Matrix) must be notified. If the top end of the original approved CD-1 cost range grows by more than 50% as the project proceeds toward CD-2, the alternative selection process must be reassessed.
The cost range provided at CD-1 is the preliminary estimate for the selected alternative. As CD-1 progresses to CD-2, the TPC will be refined and the TPC established at CD-2 may be higher than the range defined at CD-1, in which case the Project Management Executive (PME - see the Project Decision Matrix) must be notified. If the top end of the original approved CD-1 cost range grows by more than 50% as the project proceeds toward CD-2, the alternative selection process must be reassessed.
For construction projects, project designs shall be sufficiently mature to ensure achieving a complete, accurate project baseline with 80-90 percent confidence. At CD-1, a design plan shall establish anticipated levels of design maturity at each CD through final design. Independent project reviews should evaluate progress against the design plans established at CD-1.
For construction projects, project designs shall be sufficiently mature to ensure achieving a complete, accurate project baseline with 80-90 percent confidence. At CD-1, a design plan shall establish anticipated levels of design maturity at each CD through final design. Independent project reviews should evaluate progress against the design plans established at CD-1.
In addition, for all capital asset projects greater than $100M, the Project Management Risk Committee (PMRC) will review all project design plans at CD-1 to ensure design maturity targets at critical milestones are reasonable based on numerous factors including technology readiness, complexity, total project cost, and any other relevant factor for the project. Ideally, at CD-2, the objective is to achieve a design maturity that would be used as a reliable indicator of a contractor’s actual total costs at completion that would not exceed the original cost baseline.
In addition, for all capital asset projects greater than $100M, the Project Management Risk Committee (PMRC) will review all project design plans at CD-1 to ensure design maturity targets at critical milestones are reasonable based on numerous factors including technology readiness, complexity, total project cost, and any other relevant factor for the project. Ideally, at CD-2, the objective is to achieve a design maturity that would be used as a reliable indicator of a contractor’s actual total costs at completion that would not exceed the original cost baseline.
As part of the development and approval process for CD-1 for major system projects, design management plans shall be developed and included in the approval package. An estimate of the required amount of Project Engineering and Design (PED) funds to execute the planning and design portion of a project (period from CD-1 to completion of the project’s design) shall be included.
As part of the development and approval process for CD-1 for major system projects, design management plans shall be developed and included in the approval package. An estimate of the required amount of Project Engineering and Design (PED) funds to execute the planning and design portion of a project (period from CD-1 to completion of the project’s design) shall be included.
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Prior to CD-1
Prior to CD-1
Approve an Acquisition Strategy (AS) with endorsement from the Office of Science (SC) for Major System Projects.
Approve an Acquisition Strategy (AS) with endorsement from the Office of Science (SC) for Major System Projects.
Approve a Preliminary Project Execution Plan (PEP). The Tailoring Strategy, if required, can be included in the PEP or placed in a separate document.
Approve a Preliminary Project Execution Plan (PEP). The Tailoring Strategy, if required, can be included in the PEP or placed in a separate document.
Establish and charter an Integrated Project Team (IPT) to include a responsibility assignment matrix. The Charter may be included in the PEP.
Establish and charter an Integrated Project Team (IPT) to include a responsibility assignment matrix. The Charter may be included in the PEP.
Develop a Risk Management Plan (RMP) and complete an initial risk assessment of a recommended alternative. This may be included in the PEP. For evaluating the Safety-in-Design Strategy, prepare Risk and Opportunity Assessments for input to the RMP.
Develop a Risk Management Plan (RMP) and complete an initial risk assessment of a recommended alternative. This may be included in the PEP. For evaluating the Safety-in-Design Strategy, prepare Risk and Opportunity Assessments for input to the RMP.
For projects with a TPC ≥ $100M, the Office of Project Management (PM) will develop an Independent Cost Estimate and/or conduct an Independent Cost Review, as they deem appropriate.
For projects with a TPC ≥ $100M, the Office of Project Management (PM) will develop an Independent Cost Estimate and/or conduct an Independent Cost Review, as they deem appropriate.
For projects with a TPC ≥ $100M, the Project Management Risk Committee (PMRC) will review and analyze the CD and make recommendations to the Energy Systems Acquisition Advisory Board (ESAAB), Office of Science, or the Project Management Executive (PME) (typically the Director of the Office of Science Division funding the Project), as applicable, before approval.
For projects with a TPC ≥ $100M, the Project Management Risk Committee (PMRC) will review and analyze the CD and make recommendations to the Energy Systems Acquisition Advisory Board (ESAAB), Office of Science, or the Project Management Executive (PME) (typically the Director of the Office of Science Division funding the Project), as applicable, before approval.
For Major System Projects, develop a Design Management Plan that establishes design maturity targets at critical milestones through final design.
For Major System Projects, develop a Design Management Plan that establishes design maturity targets at critical milestones through final design.
Conduct an Analysis of Alternatives (AoA) that is independent of the contractor organization responsible for managing the construction or constructing the capital asset project, for projects with an estimated TPC greater than or equal to the minor construction threshold. For projects with an estimated top-end range less than $50M, the AoA shall be commensurate with the project cost and complexity.
Conduct an Analysis of Alternatives (AoA) that is independent of the contractor organization responsible for managing the construction or constructing the capital asset project, for projects with an estimated TPC greater than or equal to the minor construction threshold. For projects with an estimated top-end range less than $50M, the AoA shall be commensurate with the project cost and complexity.
Prepare a Preliminary Hazard Analysis Report (PHAR) for facilities that are below the Hazard Category 3 nuclear facility threshold as defined in 10 CFR Part 830, Subpart B.
Prepare a Preliminary Hazard Analysis Report (PHAR) for facilities that are below the Hazard Category 3 nuclear facility threshold as defined in 10 CFR Part 830, Subpart B.
Develop and implement an Integrated Safety Management Plan into management and work process planning at all levels
Develop and implement an Integrated Safety Management Plan into management and work process planning at all levels
Complete a National Environmental Policy Act (NEPA) Strategy by issuing a determination (e.g., Environmental Assessment), as required by DOE O 451.1B. Prepare an Environmental Compliance Strategy, to include a schedule for timely acquisition of required permits and licenses.
Complete a National Environmental Policy Act (NEPA) Strategy by issuing a determination (e.g., Environmental Assessment), as required by DOE O 451.1B. Prepare an Environmental Compliance Strategy, to include a schedule for timely acquisition of required permits and licenses.
Update Project Data Sheet, or other funding documents for Major Items of Equipment (MIE) and Operating Expense (OE) projects, and A-11 Business Case, if applicable. This must contain an estimate of the required amount of PED funds to execute the planning and design portion of a project (period from CD-1 to completion of the project’s design).
Update Project Data Sheet, or other funding documents for Major Items of Equipment (MIE) and Operating Expense (OE) projects, and A-11 Business Case, if applicable. This must contain an estimate of the required amount of PED funds to execute the planning and design portion of a project (period from CD-1 to completion of the project’s design).
Post CD-1 Approval
Post CD-1 Approval
All CD documents will be submitted to the Office of Project Management (PM).
All CD documents will be submitted to the Office of Project Management (PM).
Begin expenditure of Project Engineering and Design (PED), Major Item of Equipment (MIE), or Operating Expense (OE) funds for the project design.
Begin expenditure of Project Engineering and Design (PED), Major Item of Equipment (MIE), or Operating Expense (OE) funds for the project design.
Continue monthly PARS II reporting (excluding earned value). FPD, Program Manager and Office of Science will provide monthly assessments, as appropriate.
Continue monthly PARS II reporting (excluding earned value). FPD, Program Manager and Office of Science will provide monthly assessments, as appropriate.
Annually conduct project peer reviews for projects with a TPC > $100M.
Annually conduct project peer reviews for projects with a TPC > $100M.
For line-item projects LBNL Project IDs (PIDs) on operations funds should be closed and new PIDs opened for PED funds to allow clear differentiation of costs. Completion of the Conceptual Design also marks the transition of engineering design activities from Other Project Costs (OPC) to Total Estimated Costs (TEC) and PIDs should be clearly delineated to allow tracking of these costs separately.
For line-item projects LBNL Project IDs (PIDs) on operations funds should be closed and new PIDs opened for PED funds to allow clear differentiation of costs. Completion of the Conceptual Design also marks the transition of engineering design activities from Other Project Costs (OPC) to Total Estimated Costs (TEC) and PIDs should be clearly delineated to allow tracking of these costs separately.
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