Department of the Interior CPIC Forum Department of the Interior CPIC Forum Capital Planning and Investment Control (CPIC) Revisions to the Construction Guide January 10, 2008 Office of Acquisition and Property Management

Department of the Interior January Purpose Review CPIC Methodology Review the Current CPIC Guide Background on the Guide CPIC Program Elements Critical Areas Emphasized of the Guide

Department of the Interior January CPIC Objectives Structured, integrated performance-based management approach to manage/control investments Ensures an active, structured executive level decision- making process for selecting and managing projects Maintains bureau and DOI-wide oversight and accountability throughout the entire project life cycle Implements overall portfolio management program and develop high quality business plans

Department of the Interior January CPIC Methodology

Department of the Interior January Validates that investment is necessary–no alternative exists Selects alternative based on best value/return on investment Ensures investments align with mission and business needs Minimizes risk and maximizes returns/benefits throughout life-cycle Establishes quantifiable measurements for determining net benefits, risks and realistic performance/cost/schedule goals Governs investments so they meet defined specifications/ requirements and stakeholders’ expectations Provides critical link between strategic plans, performance, risks and budget requests CPIC Process Results

Department of the Interior January CPIC Links to the Budget EO promotes efficient and economical life-cycle management and use of Federal real property assets OMB Circular A-11 and the Capital Programming Guide – mandates policy and procedures for planning, budgeting, acquisition, and management Presidents Management Agenda (PMA) – sets implementation E.O. milestones, emphasizes cost, schedule and performance discipline

Department of the Interior January PMA’s CPIC Criteria Getting to Green on PMA scorecard: All investments are prioritized and subject to the DOI 5- year multi-planning process All major investments, regardless of funding source, have a business case that meet A-11 requirements All projects, specifically major projects, operate within 90 % of cost, schedule and performance targets

Department of the Interior January DOI Construction CPIC Guide Overview Updates Guide issued in 2002 Complies with mandates, laws and regulations Identifies CPIC processes/activities/outputs Emphasizes multi-year investment planning Describes CPIC methodology and governance hierarchy; identifying and articulating requirements and processes

Department of the Interior January CPIC Guide – Program Emphasis Establish and sustain program that controls cost, schedule and scope of project portfolio Strengthen project and portfolio management capability Use integrated approach – project manager, integrated project team (IPT), investment review boards (IRB), stakeholders Guide stresses the following: Projects that meet mission and performance goals Projects are prioritized – adopt a portfolio view Invest in mission critical assets with health/safety emphasis Collocate activities to realize economies of scale/shared facilities

Department of the Interior January CPIC Guide – Program Emphasis Link project pre-select (initiation and 5-Year Plan) and project select Use value engineering to ensure costs and risks are low Assign certified project managers and use IPT Modify or terminate projects over budget/behind schedule Ensure accountability throughout project life cycle Monitor projects and associated asset performance Identify when to dispose/replace investments Use asset management-related guidance and tools Adhere to effective, repeatable and rigorous CPIC practices

Department of the Interior January CPIC Guide – Business Case Emphasis Develop and maintain business case for use throughout project life-cycle Guide stresses the following: Bureau IRB recommendation and bureau head approval Exhibit 300 for major projects and Project Data Sheets for non-major projects Ensure business cases are complete, accurate and timely Funding, schedule and scope changes must have detailed corrective action plan −Baseline changes require bureau recommendation and Asset Management Team/OMB approval

Department of the Interior January Questions: Bill Hamele or Bob Jarcho or Resources: DOI Construction CPIC Guide A-11 Capital Programming Guide DOI Asset Management/CPIC Website CPIC Guide