The project must establish a Performance Baseline (PB), reflective of identified and assessed risks and uncertainties, and 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. 

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.

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. (Refer to DOE G 413.3-5A). The PB includes the entire project budget (total cost of the project that includes contingency) and represents DOE's commitment to Congress and the OMB. The approved PB must be controlled, tracked and reported from the beginning to the end of a project to ensure consistency between the Project Execution Plan (PEP), the Project Data Sheet (PDS), and the Business Case (a requirement of OMB Circular A-11).  

Development of a Performance Baseline is a collaborative effort between the Project Management and the Project Controls team, with the Federal Project Director and funding agency, and integrated with detailed input from Control Account Managers (CAMs) and other expert sources on cost and schedule.

There is only one original PB and it is documented at CD-2 approval. The PB represents the Department's commitment to Congress to deliver the project’s defined scope by a particular date at a specific cost. Cost estimates in advance of CD-2 do not represent such commitments. Also, there should be clarity over the terms PB and Performance Measurement Baseline (PMB) as they are different. The former is the project's baseline and the latter is for use by the EVMS. 

Projects shall develop and maintain an Integrated Master Schedule (IMS). The IMS shall be developed, maintained, and documented in a manner consistent with methods and the best practices identified in the Planning and Scheduling Excellence Guide, published by the National Defense Industrial Association, and the GAO’s Schedule Assessment Guide (GAO-16-89C).

Particular attention shall be directed to advancing design maturity to a sufficient level prior to establishing the PB. The project design will be considered sufficiently mature when the project has developed a cost estimate and all relevant organizations have a high degree of confidence that it will endure to project completion. In determining the sufficiency of the design level, factors such as project size, duration and complexity will be considered.

Cost and schedule should be developed with subject matter experts and use vendor quotes or similar work recently completed where possible, and should be adjusted to reflect both escalation from prior-year costs and also escalation into future years for planned activities and procurements. Overheads and burdens must also be escalated appropriately, with forward-pricing obtained from the OCFO Budget Office.

FPDs, contracting officers and program managers are accountable for ensuring contract and project documentation is complete, up-to-date, and auditable. Project baseline documentation must clearly define scope, key performance parameters, and the desired product, capability, and/or result. At project completion, there should be no question whether the objectives were achieved. Contracts and M&O work authorizations must clearly reflect project objectives and scope. Changes, especially to project objectives, need to be executed through a timely, disciplined change control process. Significant changes should be the exception, rather than the norm.