FY14/15 Initial Planning & Budget Workshop Carl Strawbridge/Cindy Conger October 19,

Meeting Agenda 2 Welcome and OverviewPier Meeting Logistics, Purpose/Outputs and Agenda Review Carl Defining the Planning Framework for FY2014/FY2015 Carl OHEP and Fermilab Program and Budget Climate, Constraints and Planning Assumptions For FY14/15/16 Pier/ALDs/ Cindy/ Randy Q&A, Summary, Action Items, Next Meeting(s) Carl Adjourn

Meeting Outcomes for Today Shared understanding of strategic priorities and the FY14+ planning environment Agreement/update on FRA/FNAL Agenda Major Initiatives (today, still in draft) Agreement on proposed B&R FY14/15 targets (today) Initial draft Sector PEPs by mid-November to support DSC guidance (Thanksgiving) Agreement on future workshop plan (today) Action items (from the meeting) 3

Why are we here? Nailing down the FY14 budget for PBR/Feb Budget Brief Capturing the FY15 budget assumptions with HEP Initiating movement toward a Lab/OHEP strategy- driven budget (vs. budget-driven strategy) Introducing proposed planning framework, annual calendar and new Lab and Sector-level plans that lay foundation for integration of longer-term strategies into 3-year budget planning cycle What is the FY14/FY15 Integrated Planning & Budgeting process: deliverables, outcomes, and planning milestones ? 4

Annual Planning & Budgeting Process 5

Annual Planning & Budget Process (cont.) Synchronizes/integrates 5 year+ SC/HEP/FNAL strategic plans and 1-3 year budget plans Moves toward forward-looking plans and earlier DOE sponsor/laboratory/community alignment Add integrating management workshops (to avoid stovepipe-by-spreadsheet) by to get Sector/Lab-wide self-consistency in program prioritiesmanpower, funds and facilities/infrastructure needs Supports downstream development of performance monitoring (PEMP) and reporting (ALP, Budget briefs, other financial) 6

Defining the Planning Framework for FY2014/2015 FRA/FNAL Agenda – Distills/Captures 5-7 year Lab strategies with major supporting initiatives – Captures Lab top-level plans that are deployed thru annual actions in Sector(D/S/C) Program Execution Plans – Update annually but should not change drastically – Communication tool with sponsors and staff (broad audience) throughout the year Updated since August workshop, a number of changes Does the current draft FRA/FNAL Agenda capture the right Strategies, Critical Outcomes and appropriate Major Initiatives? – Which initiatives should be the focus for FY14 Sector PEPs?FY15 and FY16? – In line with stakeholder thinking? 7

Draft FRA Agenda (Aug 2012) 8

Draft FRA Agenda (Oct 2012) 9

Sector Program Execution Plans Cover 3 years (align w/ budget planning of CY +2) Developed/updated annually by Sectors during Oct-Dec (thru gap analysis in projected resources and FRA-Agenda driven program) Implement Initiatives/actions/milestones for top- level Lab initiatives and other important sector initiatives Integrate funds, staff/skills and facilities & infrastructure requirements 10

PEP Contents (Mission-Area) 1.Sector strategies (CY+3, tie Sector to Lab-level (Agenda)) 2.For each of major (and other Sector) initiatives, identifies: A.Vision/Goals B.Objectives and Outcomes C.Actions to achieve objectives/outcomes D.Resources needed for actions: 1)Funds (labor $, M&S $) 2)Staff (FTE, skills—OHEP primary level) 3)Facilities & infrastructure (specific needs and readiness assessment) 3.Performance Monitoring Plan A.KPI/Metrics B.Assessment plan (risk-based) 11

Facilities & Infrastructure What Sector (D/S/C) facilities and infrastructure needs require funding to meet FY2014 (and projected 2015 & 2016 program execution plans?) Include operating projects > $25K (maintenance, repair & minor construction) plus GPP-level improvement projects Include FESS-provided FIMS Facility Matrix spreadsheet Where do new/upgraded networks get addressed? 12

Sector PEP Facilities Assessment Are there any facility deficiencies or capability gaps that currently exist that prevent you from performing the mission? Are there new programs coming that will require new facilities? Could these new requirements be satisfied in existing facilities or will new facilities be required? Are there efficiency gains or cost savings to be realized if facility improvements or modifications are made? Are there major organizational changes that will affect the way in which existing facilities are used (changes in staffing or equipment)? What facility improvements if implemented would allow for facility demolition or consolidations such that existing footprints are reduced? Are there facilities that are no longer needed that could be repurposed to help meet another Sector’s facility requirements? 13

Mission-area Planning Process Gaps? Coordination roles at Sector Offices with IPPM? Is development of project labor budgets rigorous and realistic and looking out 3 years? – Reaching agreement between resource providers and projects efficiently Is internal program management rigorous and looking out 3 years? – Roles of Overall and Technical POCs are not defined – Are there leadership weaknesses in critical programs? – How are cross-Sector program B&R efforts to be integrated? 14

PEP Contents (Mission Support) Addresses Excellence in Operations, plus… Meet support needs of Mission-Areas, so must iterate with them before next workshops Integrates supporting plans from key resource areas (ESH&Q, PSS, WFDR, IPPM, other staff) Basis for contract-required Annual HR Strategic Plan? 15

Mission-Support Thoughts Does FRA/FNAL Agenda give sufficient focus to – Project management initiatives? – IT support priorities? Accounting for transition of OPPS/OCBP/OPMO into ESH&Q, IPPM and PSS Others? 16

B&R Proposed Targets FY14 & FY15 See spreadsheet for starting points on FY14-15 B&R-level agreement needed today, subject to approved changes prior to guidance release Next steps: – Request project labor estimates (big-P and little-p projects) – Allow forward progress on organizational allocations within B&Rs in next month (ADs, COO) – Guidance out to DSCs by Thanksgiving 17

What are the high-level drivers affecting our planning, including sponsor needs and expectations? What commitments (to HEP and others) are expected to be carried forward, which may be of lower priority? What are the top Sector issues/concerns? (Sector Heads) What budget set-asides should be considered for strategic initiatives? (Jack/Vicky) What are the pressing facilities and infrastructure (including networks) needs? (Randy/Vicky) OHEP and Fermilab Program and Budget Climate, Constraints and Planning Assumptions for FY14 & FY15 18

Annual Lab Plan Update Should Capture Agreed Strategies, Outcomes, Initiatives Call for ALP comes from DOE in January, plan due to DOE in May – Possible changes to Sec 4.1 from DOE optimizing Science Strategies for the Future? FRA Agenda and Sector PEPs updated post-Feb can provide the inputs/basis for ALP ALP Breakdown (IPPM to coordinate): – Mission, overview, Lab-at-a Glance (YKK, CFO, WFDR) – Lab Core Capabilities (YKK and ALDs) – Work For Others (CFO, ALDs) – Science Strategies for future/major initiatives (YKK/ALDs) – Mission Readiness (FESS) – HR (WFDR) – Cost of Doing Business (CFO/COO) 19

Future Management Workshops Plan for future Management Workshops – Dec: Schedule Mission Area Workshop (ALDs w/ YKK) Follow with Mission-Support Workshop (COO) – Jan: Schedule top-management workshop to resolve issues with integrated plans leading toward Feb budget briefs (plus other topics) 20

Summary, Q&A, Action Items, Next Meeting(s) Meeting outcomes: – Shared understanding of strategic priorities and the FY14+ planning environment – Agreement/update on FRA/FNAL Agenda Major Initiatives (today, still in draft) – Agreement on proposed B&R FY14/15 targets (today) – Initial draft Sector PEPs by mid-November to support DSC guidance (Thanksgiving) – Agreement on future workshop plan (today) Action items (from the meeting) 21