1. 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

2. Department of the Interior January 2008 2 Purpose Review CPIC Methodology Review the Current CPIC Guide Background on the Guide CPIC Program Elements Critical Areas Emphasized of the Guide

3. Department of the Interior January 2008 3 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

4. Department of the Interior January 2008 4 CPIC Methodology

5. Department of the Interior January 2008 5 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

6. Department of the Interior January 2008 6 CPIC Links to the Budget EO 13327 - 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

7. Department of the Interior January 2008 7 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

8. Department of the Interior January 2008 8 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

9. Department of the Interior January 2008 9 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

10. Department of the Interior January 2008 10 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

11. Department of the Interior January 2008 11 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

12. Department of the Interior January 2008 12 Questions: Bill Hamele 202-208-5704 or William_Hamele@ios.doi.gov Bob Jarcho 202-208-3329 or Robert_Jarcho@ios.doi.gov Resources: DOI Construction CPIC Guide http://www.doi.gov/pam/CPICguide62107.pdf A-11 Capital Programming Guide http://www.whitehouse.gov/omb/circulars/a11/current_year/part7.pdf DOI Asset Management/CPIC Website http://www.doi.gov/pam/assetmanage.html CPIC Guide