In 1997, Congress, in the conference report, H.R. 105-271, to the FY1998 Energy and Water Development Appropriation Bill, directed the NRC to carry out a series of assessments of project management at the Department of Energy (DOE). This report, the 2002 Assessment, is the second in that series. It presents an examination of DOE's progress in improving program management over the past two years and offers recommendations regarding project management methodology and project oversight.
In 1997, Congress, in the conference report, H.R. 105-271, to the FY1998 Energy and Water Development Appropriation Bill, directed the National Research Council (NRC) to carry out a series of assessments of project management at the Department of Energy (DOE). The final report in that series noted that DOE lacked an objective set of measures for assessing project management quality. The department set up a committee to develop performance measures and benchmarking procedures and asked the NRC for assistance in this effort. This report presents information and guidance for use as a first step toward development of a viable methodology to suit DOE's needs. It provides a number of possible performance measures, an analysis of the benchmarking process, and a description ways to implement the measures and benchmarking process.
Peer review is an essential component of engineering practice and other scientific and technical undertakings. Peer reviews are conducted to ensure that activities are technically adequate, competently performed, and properly documented; to validate assumptions, calculations, and extrapolations; and to assess alternative interpretations, methodologies, acceptance criteria, and other aspects of the work products and the documentation that support them. Effective peer reviews are conducted in an environment of mutual respect, recognizing the contributions of all participants. Their primary objective is to help the project team achieve its goals. Reviews also contribute to quality assurance, risk management, and overall improvement of the management process. The U.S. Department of Energy (DOE) conducts different types of peer reviews at the different stages of a project, including reviews to assess risks and other factors related to design, safety, cost estimates, value engineering, and project management. Independent project reviews (IPRs) are conducted by federal staff not directly affiliated with the project or program and management and operations (M&O) contractors. External independent reviews (EIRs) are overseen by the Office of Engineering and Construction Management and conducted by contractors external to the department. EIRs are the primary focus of this report. However, the committee found that, in many cases, IPRs are explicitly used as preparation for or as preliminary reviews prior to EIRs. Thus, because IPRs are integral to the review process in DOE, they are also discussed because they might have an effect on EIRs. In October 2000, DOE issued Order 413.3, Program and Project Management for the Acquisition of Capital Assets (DOE, 2000). The order established a series of five critical decisions (CDs), or major milestones, that require senior management review and approval to ensure that a project satisfies applicable mission, design, security, and safety requirements: approve mission need, approve alternative selection and cost range, approve performance baseline, approve start of construction, and approve start of operations or project closeout. Assessment of the Results of External Independent Reviews for U. S. Department of Energy Projects summarizes the results.
A nuclear weapon or a significant quantity of special nuclear material (SNM) would be of great value to a terrorist or other adversary. It might have particular value if acquired from a U.S. facility-in addition to acquiring a highly destructive tool, the adversary would demonstrate an inability of the United States to protect its nuclear assets. The United States expends considerable resources toward maintaining effective security at facilities that house its nuclear assets. However, particularly in a budget-constrained environment, it is essential that these assets are also secured efficiently, meaning at reasonable cost and imposing minimal burdens on the primary missions of the organizations that operate U.S. nuclear facilities. It is in this context that the U.S. Congress directed the National Nuclear Security Administration (NNSA)-a semi-autonomous agency in the U.S. Department of Energy (DOE) responsible for securing nuclear weapons and significant quantities of SNM-asked the National Academies for advice on augmenting its security approach, particularly on the applicability of quantitative and other risk-based approaches for securing its facilities. In carrying out its charge, the committee has focused on what actions NNSA could take to make its security approach more effective and efficient. The committee concluded that the solution to balancing cost, security, and operations at facilities in the nuclear weapons complex is not to assess security risks more quantitatively or more precisely. This is primarily because there is no comprehensive analytical basis for defining the attack strategies that a malicious, creative, and deliberate adversary might employ or the probabilities associated with them. However, using structured thinking processes and techniques to characterize security risk could improve NNSA's understanding of security vulnerabilities and guide more effective resource allocation.
This book is the product of a congressionally mandated study to examine the feasibility of eliminating the use of highly enriched uranium (HEU2) in reactor fuel, reactor targets, and medical isotope production facilities. The book focuses primarily on the use of HEU for the production of the medical isotope molybdenum-99 (Mo-99), whose decay product, technetium-99m3 (Tc-99m), is used in the majority of medical diagnostic imaging procedures in the United States, and secondarily on the use of HEU for research and test reactor fuel. The supply of Mo-99 in the U.S. is likely to be unreliable until newer production sources come online. The reliability of the current supply system is an important medical isotope concern; this book concludes that achieving a cost difference of less than 10 percent in facilities that will need to convert from HEU- to LEU-based Mo-99 production is much less important than is reliability of supply.
The U.S. Department of Energy has been at the center of many of the greatest achievements in science and engineering in this century. DOE spends billions of dollars funding projects-and plans to keep on spending at this rate. But, documentation shows that DOE's construction and environmental remediation projects take much longer and cost 50% more than comparable projects undertaken by other federal agencies, calling into question DOE's procedures and project management. What are the root causes for these problems?
Recurrent problems with project performance in the U.S. Department of Energy (DOE) in the 1990s raised questions in Congress about the practices and processes used by the department to manage projects. The 105th Committee of Conference on Energy and Water Resources directed DOE to investigate establishing a project review process. Many of the findings and recommendations in this series of reports identified the need for improved planning in the early project stages (front-end planning) to get the project off to the right start, and the continuous monitoring of projects by senior management to make sure the project stays on course. These reports also stressed the need for DOE to act as an owner, not a contractor, and to train its personnel to function not as traditional project managers but as knowledgeable owner's representatives in dealing with projects and contractors. The NRC Committee for Oversight and Assessment of Department of Energy Project Management determined that it would be helpful for DOE to sponsor a forum in which representatives from DOE and from leading corporations with large, successful construction programs would discuss how the owner's role is conducted in government and in industry. In so doing, the committee does not claim that all industrial firms are better at project management than the DOE. Far from it-the case studies represented at this forum were selected specifically because these firms were perceived by the committee to be exemplars of the very best practices in project management. Nor is it implied that reaching this level is easy; the industry speakers themselves show that excellence in project management is difficult to achieve and perhaps even more difficult to maintain. Nevertheless, they have been successful in doing so, through constant attention by senior management.
Since its inception in 1977 from an amalgam of federal authorities, the U.S. Department of Energy (DOE) has administered numerous programs aimed at developing applied energy technologies. In recent years, federal oversight of public expenditures has emphasized the integration of performance and budgeting. Notably, the Government Performance and Results Act (GPRA) was passed in 1993 in response to questions about the value and effectiveness of federal programs. GPRA and other mandates have led agencies to develop indicators of program performance and program outcomes. The development of indicators has been watched with keen interest by Congress, which has requested of the National Research Council (NRC) a series of reports using quantitative indicators to evaluate the effectiveness of applied energy research and development (R&D). The first such report took a retrospective view of the first 3 years of DOE R&D programs on fossil energy and energy efficiency. The report found that DOE-sponsored research had netted large commercial successes, such as advanced refrigerator compressors, electronic lighting ballasts, and emission control technology for flue gas desulfurization. However, some programs were judged to be costly failures in which large R&D expenditures did not result in a commercial energy technology. A follow-up NRC committee was assigned the task of adapting the methodology to the assessment of the future payoff of continuing programs. Evaluating the outcome of R&D expenditures requires an analysis of program costs and benefits. Doing so is not a trivial matter. First, the analysis of costs and benefits must reflect the full range of public benefits that are envisioned, accounting for environmental and energy security impacts as well as economic effects. Second, the analysis must consider how likely the research is to succeed and how valuable the research will be if successful. Finally, the analysis must consider what might happen if the government did not support the project: Would some non-DOE entity undertake it or an equivalent activity that would produce some or all of the benefits of government involvement? This second report continues to investigate the development and use of R&D outcome indicators and applies the benefits evaluation methodology to six DOE R&D activities. It provides further definition for the development of indicators for environmental and security benefits and refines the evaluation process based on its experience with the six DOE R&D case studies.
The Department of Energy (DOE) is engaged in numerous multimillion- and even multibillion-dollar projects that are one of a kind or first of a kind and require cutting-edge technology. The projects represent the diverse nature of DOE's missions, which encompass energy systems, nuclear weapons stewardship, environmental restoration, and basic research. Few other government or private organizations are challenged by projects of a similar magnitude, diversity, and complexity. To complete these complex projects on schedule, on budget, and in scope, the DOE needs highly developed project management capabilities. This report is an assessment of the status of project management in the Department of Energy as of mid-2001 and the progress DOE has made in this area since the National Research Council (NRC) report Improving Project Management in the Department of Energy (Phase II report) was published in June 1999.
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