Charles Simpson Washington River Protection Solutions May 2018 DOE O 413.3B Supplemental Guidance & Chg 5 Overview EFCOG Project Delivery Working Group Charles Simpson Washington River Protection Solutions May 2018

Objectives Provide a brief overview of pending changes to DOE O 413.3B EM Supplemental Guidance for Projects between $10M - $50M DOE O 413.3B Change 5

DOE-EM Supplemental Guidance to DOE O 413.3B Projects under $50M Draft Guidance for comment issued via memo to DOE-EM Field Office Managers on December 29, 2017 Rescinds prior Huizenga policy memo issued May 19, 2014 Purpose: To “provide additional definition and eliminate any confusion regarding the applicability of DOE O 413.3B” Describes classification of work within EM Provides draft guidance for managing projects with TPC under $50M in accordance with DOE O 413.3B principles

DOE-EM Supplemental Guidance to DOE O 413.3B Projects under $50M Category Criteria Examples Managed Under Line Item Construction (capital) Construction projects above $10M and with life greater than 2 years after startup Construction of facilities and infrastructure, waste storage vaults or tanks, waste disposal cells DOE O 413.3B or principles of DOE O 413.3B (< $50M) EM Capital Cleanup Projects Expense funded activities that do not normally result in the acquisition of a tangible asset Demolition of an excess facility and excavation of waste sites Operations Activities (non-capital) Operations activities Site investigation, facilities support and operations, removal of hazardous and radioactive materials to enable demolition, technology research & demonstration, tank closure, retrieval of waste, EM Cleanup Policy Grants, Pensions, and Payments in Lieu of Taxes (PILT) Not work activities but constitute funds administration Not subject to DOE O 413.3B or the EM Cleanup Policy

DOE-EM Supplemental Guidance to DOE O 413.3B Projects under $50M For projects greater than $10M and under $50M, requirements in DOE O 413.3B Appendix A will be tailored Approval Thresholds: CD-0: HQ / Program Secretarial Officer (PSO) CD-1 through 4: EM Field Managers or EM-CBC Director Technical changes in scope that affect mission need or deviate from PDS: HQ / PSO Cost increases in excess of 25% of CD-2 TPC: HQ / PSO Appendix B responsibilities and appendix C topical areas are only applicable to the extent that they support the approved approach to tailoring

DOE-EM Supplemental Guidance to DOE O 413.3B Projects under $50M Requires a certified Federal Project Director (FPD) IPR conducted by governing local PMO approaching CD-2 Cost reviews at discretion of PMO with support of EM-HQ or EM-CBC EVMS or alternative approved system shall be utilized as required by contract Project Execution Plan approved by the PME Consolidating or phasing CDs is allowable as approved by PME Risk Management Plan approved by FPD IPABS reporting at CD-0 Appendix B responsibilities and appendix C topical areas are only applicable to the extent that they support the approved approach to tailoring

DOE-EM Supplemental Guidance to DOE O 413.3B Projects under $50M All formal CD document shall be submitted to the Director of the EM Office of Project Management (EM-5.22) A formal project closeout report shall be submitted to EM-5.22 A lessons learned report shall be submitted to EM-5.22 Reviews of cap asset projects included in the periodic progress reviews for segments Site/Field Offices expected to maintain a project management system with Acquisition advisory board comparable to Environmental Management Acquisition Advisory Board (EMAAB) Documented procedures and processes Appendix B responsibilities and appendix C topical areas are only applicable to the extent that they support the approved approach to tailoring

DOE O 413.3B Chg 5 Change 5 is currently in draft status Changes include: Revises the time-frame for achieving CD-2 approval (ESAAB and Deputy Secretary approval) following the Congressional Budget Request is revised to “two years” versus one Aligns the Order to DOE-STD-1189-2016 Updates the Order to reflect the Department’s current organizational structure (ESAAB)