Risk management is an essential element of every project and must be analytical, forward looking, structured and continuous.  A Risk Management Plan (RMP) is required to describe effective risk management processes for the project. Risk assessments are started as early in the project life-cycle as possible and should identify critical technical, performance, schedule and cost risks. Once risks are identified and prioritized, sound risk mitigation strategies and actions are developed and documented in the Risk Register. Post CD-1, the risk register (including new risks) should be evaluated at least quarterly.

Risks and their associated confidence levels are dependent on multiple factors such as complexity, technology readiness and strength of the Integrated Project Team (IPT). Risks for all capital asset projects should be analyzed using a range of 70-90% confidence level upon baselining at CD-2 and reflected in funded contingency, budgetary requests and funding profiles. If a project has a Performance Baseline (PB) change, consider reanalyzing the risks at a higher confidence level and then reflecting this in budgetary requests and funding profiles. Additional risk management information is provided in DOE G 413.3-7A. 

The RMP includes the continuous and iterative process of updating project risk documents and the risk management plan itself and emphasizes implementation of communication of the risks and actions taken. 

To address potential mission impacts, aggressive risk mitigation strategies are required for close-coupled or fast-tracked design-build projects. Risk management strategies must be outlined in the RMP and at a minimum must address: 

• All technical uncertainties

• The establishment of design margins to address the unique nature of the design

• Increased technical oversight requirements

The Project Data Sheet (PDS) must be submitted for the budget year in which the Design-Build contract is to be awarded and must include the costs of design as part of the TPC. The Office of Science (SC) may budget for PED funds if there is a need to develop significant performance or technical specifications for the project. For Design-Build projects, PED funds may be used for the design of line item projects and may be used to develop a statement of work or a request for proposal; whereas, operating funds are used for MIE or OE projects.