CD-2, Approve Performance Baseline
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Completion of preliminary design is the first major milestone in the project execution phase. The design must be sufficiently mature at the time of CD-2 to provide reasonable assurance that the design will be implementable within the approved Performance Baseline (PB). The project must clearly specify the PB, which includes scope definition in a fully-inclusive work breakdown structure (WBS) with a WBS dictionary defining each element of the work scope, the Total Project Cost (TPC) and associated Basis of Estimate (BOE) that clearly identify costs for each WBS element, an Integrated Master Schedule (IMS) that aligns and is consistent with all elements of the WBS and time-phased costs in the TPC, CD-4 date (month and year), and Key Performance Parameters (KPPs) that must be achieved at CD-4.
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Cost and Schedule Development
Cost estimates should be developed with input from subject matter experts and use vendor quotes or similar work recently completed where possible. Similarly, schedules and labor estimates should be developed by subject matter experts where possible; planning packages may be used for future work not sufficiently well defined to allow detailed schedule development. Costs should be adjusted to reflect both escalation from prior-year costs where they are used, and also escalation into future years for planned activities and procurements. Overheads and burdens on labor and non-labor costs must also be escalated appropriately, with forward-pricing obtained from the OCFO Budget Office.
Prior to CD-2
Approve an updated Acquisition Strategy, if there are any major changes to the acquisition approach. Obtain endorsement from The Office of Science (SC) for Major System Projects.
Establish a Performance Baseline (PB), reflective of identified and assessed risks and uncertainties, to include TPC, CD-4 date, and minimum KPPs. The key project milestones and completion dates shall be stated no less specific than month and year. The scope will be stated in quantity, size and other parameters that give shape and form to the project. The funding assumptions upon which the PB is predicated will be clearly documented and approved.
Approve updated Project Execution Plan (PEP).
With the Program Office, prepare a Funding Profile to support the execution of the PB. The funding profile is usually included in the PEP.
Approve Long-Lead Item Procurements, if necessary. Approval may be concurrent with (or prior to) CD-2 approval. (Long-lead item procurement approval will be designated as CD-3A.)
Develop a Project Management Plan, if applicable.
Perform an Independent Project Review (IPR). OPA will conduct reviews to validate the PB. The Federal Project Director (FPD) will coordinate with Program Office to provide a Performance Baseline Validation Letter that describes the cost, schedule, and scope being validated. (Refer to DOE G 413.3-9)
For projects with a TPC ≥ $100M, PM will perform an Independent Cost Review (ICR) and/or develop an Independent Cost Estimate (ICE). The ICR/ICE will support validation of the PB.
Complete a Preliminary and/or Final Design.
Conduct a Design Review of the preliminary and final designs.
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), and the Office of Science before approval.
Employ an Earned Value Management System compliant with EIA-748C, or as required by the contract. This is performed by the contractor. (Refer to DOE G 413.3-10A.)
Prepare a Hazard Analysis Report for facilities that are below the Hazard Category 3 nuclear facility threshold as defined in 10 CFR Part 830, Subpart B by updating the PHAR based on new hazards and design information.
Determine that the Quality Assurance Program is acceptable and continues to apply. (Refer to 10 CFR Part 830, Subpart A, DOE O 414.1D, and DOE G 413.3-2.)
Conduct a Preliminary Security Vulnerability Assessment, if necessary. (Refer to DOE O 470.4B, Change 1, and DOE G 413.3-3A.)
Issue the final Environmental Impact Statement or Environmental Assessment and Finding of No Significant Impact, as required by 10 CFR Part 1021. For an Environmental Impact Statement, the appropriate authority shall issue the Record of Decision after CD-2 is granted, but prior to CD-3 approval. (Refer to DOE O 451.1B.)
Update Project Data Sheet, or other funding documents for MIE and OE projects, and A-11 Business Case, if applicable. (Refer to DOE CFO Budget Call for PDS and Business Case Template.)
Post CD-2 Approval
Submit all CD documents, and if there are changes to the PB, submit BCP documents to PM.
Submit budget request for the TPC. The Director of the Office of Science Division funding the project will request full funding for all new projects with an estimated TPC of $50M or less, within a single budget year request, unless justification for less than full funding is provided to and approved by the ESAAB.
For projects with a TPC ≥ $100M, the PMRC will review and analyze the PB deviation disposition request and make recommendations to the ESAAB, the PME (typically the Director of the Office of Science Division funding the project), as applicable, before approval. The resulting BCP must also be presented to the PMRC before convening an ESAAB.
Obtain Office of Science (SC) endorsement on any changes to the approved funding profile that negatively impacts the project.
Continue monthly PARS II reporting (including earned value data). FPD, Program Manager and SC will provide monthly assessments.
Continue Quarterly Project Reviews with the Program Office or their designee.
Annually conduct project peer reviews for projects with a TPC > $100M.
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