Planning for FY08: Managing the Transition of the LM Organization December 2004

LM’s First Year of Operation OMB and the Congress have supported our standup, our operations, and our budget requests. Completed our first set of planning documents: a Strategic Plan, a Workforce Plan, and an Annual Performance Plan. Successfully merged four separate organizations spanning seven locations into a functioning, “Virtual” office of 73 federal staff. Started to optimize our skill mix by offering buyouts and early retirements and adding critical staff in the areas of: worker benefits, records management, and real estate. Conducted long term surveillance and maintenance and/or record keeping at over 60 sites across the country.

LM’s First Year of Operation (continued) Budgeted for, and delivered, $23M in benefits to former contractor workers from the Portsmouth and Paducah plants, the Pinellas Plant, and Grand Junction. Managed over 10,000 cubic feet of records and several cutting- edge information technology systems. Assessed our property for both protectiveness and for beneficial reuse options. Identified five properties for disposition outside the federal government. Coordinated policy in the area of strategic materials and labor relations with the Department’s contractor workforce. Actively prepared for the transfer of over 50 sites by These transfers include: Rocky Flats, Fernald, Mound, and the Nevada Off- sites.

LM’s Transition Efforts to Date … LM has made tremendous progress with site transition effort in FY04. That progress is a direct result of the support and hard work by all LM organizations and our partnership with EM field elements. Site Transition Teams are actively working with EM and the sites. Policy and guidance generation has been in the form of two page fact sheets and/or signed memos. In accordance with the LM-1/EM-1 guidance, the site transition plans are being submitted and/or reviewed. LM and EM have signed CD-4 packages and transitioned records responsibility for General Atomics, MURR, and the Geothermal Test Facility.

LM expects to add 56 sites by FY2010.

What to Expect for Site Transition in FY05-07 LM must effectively manage a large influx of sites (~40 sites) between FY A site transition can take up to two years or longer for complex sites. Advance planning is necessary to ensure successful transitions of these sites. A successful transition requires everyone’s involvement. Focused and continuous support is critical to bring these sites into the program. We will continue to work to ensure policies, guidance, and funding mechanisms are in place to support the influx of sites We need to continue to identify critical path issues and decisions and address them in a timely manner.

LM’s Vision for 2008 – Organization and Personnel A projected Federal staff of ~80 FTEs. Current staffing is 73. Based on our demographics, ~40% of LM staff could be new to LM by All critical skill gaps will be filled and succession plans will be in place. LM will maintain offices in locations that make sense for the work we do. The major work at Pinellas should be completed and no longer require a federal presence. LM-40 will no longer be needed as a stand alone office. The major closure sites will be in LM and the policy and guidance for transfer in place. LM will be recognized as a high performing organization.

LM’s Vision for 2008 – Program Goals Be a model for DOE in the delivery of pensions and medical benefits to roughly 20,000 former workers. Support the Department’s efforts to restructure its workforce to meet emerging mission requirements. Conduct long term surveillance and maintenance and/or record keeping for over 100 sites spanning 20 states and Puerto Rico. Have a robust program for beneficial reuse (e.g., conservation, renewable energy, and reindustrialization) or disposition of our federally owned properties. Have a Records Management Facility that meets NARA 2009 standards with room for over 200,000 cubic feet of records. Be the national model for capturing and providing information on our sites to regulators and the public.

LM’s Vision for 2008 – Budgeting and Contracting LM’s budget will increase from ~$60M today to a projected level of ~$270M in FY08. The budget increase will be driven largely by the transfer from EM to LM of benefits payments to former workers. However we also expect the long term surveillance and maintenance budget to increase to ~ $50M. New, multi-year contracts will be in place that meet LM’s goals and drive improved performance for our major functional responsibilities: –Delivery of worker benefits. –Performance of long-term surveillance and maintenance activities. –Records and information management