Laboratory Operations Board Carmelo Melendez May 2015

LOB- Agenda & BLUF Information brief & Discussion Outline What is it? & Why? WG Infrastructure Assessments WG Excess Contaminated Facilities Take Aways BLUF: S-1 mandated governance for enterprise-wide discussion and resolution of issues and opportunities with Senior Level engagement. Outputs will be codified in DRB process. Pay attention and be responsive: good for all of us.

LOB – What is it? & Why? S-1 formed the National Laboratory Operations Board (LOB) in 2013 to provide an enterprise-wide forum to engage the Laboratories, Plants, Sites, and DOE’s Programs Offices in operational and policy matters Joint effort to identify opportunities to improve effectiveness and efficiency Replaced the Federal Chief Operating Officers Council

LOB – WG Infrastructure Assessments Opportunity identified by the LOB to focus on revitalizing the general purpose infrastructure across the DOE enterprise to better support mission activities today and in the future A WG established an integrated plan to conduct an assessment of general purpose infrastructure across as a pilot, using common standards and an enterprise-wide approach Approach was well received by OMB and $100M above target was requested in PresBud FY-16 Infrastructure Crosscut Committee.  The committee is working on a budget crosscut proposal for general purpose infrastructure that will be similar to last year’s budget crosscut proposal.  Most programs have integrated their data needs into their general budget planning efforts and so will not need to issue a separate data call; a few programs may be issuing data calls if necessary.  The crosscut proposal also will include a status report on our infrastructure efforts over the past year, as described in the draft Infrastructure Strategic Plan.  If you have questions, please contact Jim McConnell or me.   Does the LOB Infrastructure Crosscut represent above target requests?  Yes, likely.        Can new facilities be included in the LOB Infrastructure Crosscut?  Crosscut is for GPP-level investments in general purpose infrastructure        Are there prioritization criteria for the projects submitted in the LOB Infrastructure Crosscut?  The programs involved in the Crosscut committee will work jointly on prioritization.  The projects fall into the following categories:          Basic Infrastructure        1) Utilities (distribution systems, chillers, telecommunications networks, etc.)               2) Facility Improvements (roofs, windows, HVAC, etc.)          3) Mission-Enabling Renovations (minor renovations/retrofits)            Excess Facilities            4) Removal of Excess Facilities and Structures (non-process contaminated)              5) Readying Facilities for transition to EM            Will the LOB Infrastructure Crosscut data call follow the CFO’s budget call schedule?  The budget guidance will refer to the crosscut.  Programs have been asked to provide their crosscut data by May 15.  Some programs are issuing a separate data call but most programs will have the necessary data collected as part of their general budget guidance and planning efforts.  

LOB – WG Infrastructure Assessments Credible consistent data to enable F&I decisions Determines whether infrastructure is aligned with core capabilities Provides new linkages between space & capabilities Standard criteria allows for comparisons across Sites and Programs Offices

LOB – Infrastructure Executive Committee Infrastructure Executive Committee established to manage the annual assessment, review, budget crosscut, and Senior Leadership presentation process Responsible for ensuring the process outlined in the Infrastructure Plan is fully implemented, analyzing metrics on progress, and promulgating improvements Chaired on an annual rotating basis by a Senior Federal Executive representative responsible for infrastructure (chaired by NNSA NA-50 in FY 2015)

LOB – IAWG Measuring Progress The annual report to S-1 will address the areas outlined below: Did the Department make the investments it committed to make? Is the percent of adequate facilities and other structures and facilities (OSFs) increasing? Is deferred maintenance decreasing? Five year target: No net growth on DM Is the square footage of underutilized space decreasing? Five year target: 5% reduction (400,000 gross square feet) Are excess space/buildings being eliminated? Are core capabilities at reduced risk due to infrastructure deficiencies?

LOB – WG Excess Contaminated Facilities Opportunity identified by LOB based on ext reports (GAO/IG) Excess facilities continue to be a drain on resources EM resources to D&D facilities are constrained, as a result EM will be unable to accept the transfer of many high risk facilities from the former program users for many years A WG was established to prepare an analysis and report on contaminated excess facilities to provide information for decisions regarding the path forward for addressing these facilities for the FY17 budget; possibly above target Analysis will leverage teams and processes from two recent reviews: LOB IA & NNSA’s high-risk excess facilities review 4. Update on Excess Facilities Working Group.  The Excess Facilities working group has drafted a data call that was shared with the LOB and has now been issued by each program to its labs/sites.  Data is due by May 15.  Concurrently, the group is developing strategic approaches and options for how the Department may address the numerous excess contaminated facilities owned by the various program offices, taking into consideration risk, cost and budget constraints.  A draft is due by May 15 and will incorporate the data at that time.  If you have questions, please contact Mark Gilbertson, Tania Smith, or me.   The following data elements have now been added to the Excess window for all property types in support of the recently released guidance for evaluating the Department of Energy’s excess facilities. These changes are outlined in change request 15-07. Detailed definitions can be found in the FIMS Data Element Dictionary. o Site Priority for Disposition o Contamination Category o Disposal Readiness o Disposal Complexity o Mission Impact o Public Health & Environmental Stewardship o Safety o Est Annual MSRO o Est Cleanup & Disposition Cost o Anticipated Repair Cost

LOB – ECFWG Analysis How many excess facilities are in DOE portfolio? Which/how many excess facilities are contaminated and what types of contamination? How many D&D and/or disposal projects does this equate to? What are the costs and what is the size distribution (dollar value) for these projects? What risks do these facilities pose to site missions, public health, the environment, and safety? What is the probability and timeframe for realizing undesired consequences if nothing is done? When can projects be executed? and How? What costs can be avoided through timely D&D/disposal?

LOB - Take Aways New governance in DOE – S-1 Commitment Use of enterprise-wide analysis/prioritization to make the best use of limited resources Outputs will be codified in the Directives Process IEC supplements FISC and FIMS Governance Pay attention to Working Groups & Outputs 1) a new standard process and format for assessing and reporting the condition of infrastructure at labs, sites, and plants across the complex on an annual basis that relies on engineering data; (2) the use of enterprise-wide analysis and prioritization to make the best use of limited resources to invest in the most important infrastructure needs; and (3) a commitment from the Secretary, Departmental senior leaders, and the program offices to sustainably manage and steward DOE’s infrastructure using common tools to achieve enterprise-wide performance objectives.

Questions & Discussion