Teaming Between the Project Manager and Project Controls: EMSL Recovery Act Project a Case Study

1. Teaming Between the Project Manager and Project Controls: EMSL Recovery Act Project a Case Study Scott Tingey, EMSL Chief Operating Officer Gregg Andrews, Senior Project Controls Specialist 1

2. Gregg Andrews– Senior Project Controls Specialist EMSL Recovery Act PC Lead Presenters Scott Tingey– EMSL Chief Operations Officer EMSL Recovery Act Project Mgr 2

3. Battelle Memorial Institute • Started in 1923 through Gordon Battelle’s will • ~22,000 employees • Donates > 20% of annual revenue • Manages 7 National Laboratories • History of breakthroughs in Science: • 1940’s improved materials used on the armor plating in WW II • 1959 Xerox copiers enter the market • 1974 Compact disc technology • Not for profit 3

4. Pacific Northwest National Laboratory • Battelle assumed management of the laboratory in 1965 • DOE contract GOCO • ~ 4,900 employees • Business volume > $1.1 B • Richland campus includes unique laboratories and specialized equipment 4

5. Environmental Molecular Sciences Laboratory • The William R. Wiley Environmental Molecular Sciences Laboratory (EMSL) commissioned in 1996 • Research focus primarily on molecular sciences • A national scientific user facility • EMSL Focus: • Energy • Environment • Health • National Security • FY12 operating budget ~$39M and capital budget of ~$2.5M • Biofuels • Energy Storage • Solar Power • Contaminant Cleanup • Carbon Sequestration • Vehicle Emissions • Biomarkers • Nanoparticle toxicity • Drug Development • Explosives Detection • Advanced Materials • Forensics 5

6. EMSL Project Management Structure • Chief Operations Officer • Historically has been someone from Operations • Project Controls – bring expertise in: • Integrated schedule & budgeting • Earned Value Management techniques • Risk assessment & management • DOE Order 413.3 • Project Management Office • Develops project management expertise • Assigns project managers • Evaluates and accepts risk for the laboratory 6

7. EMSL Uses Tailored Approach to Project Management • Small projects (less than $2M) • Managed mostly by technical staff • Limited project controls support provided Helium Liquefier • Mid-sized projects ($2M – $10M) • Project manager selected based on risk • Increased project control support • Detailed schedules and monthly reports Titan ETEM 7

8. Facility modification projects • Partnership with F&O and EMSL PMO • Extensive project controls • Detailed documentation 8

9. EMSL Uses Tailored Approach to Project Management • Large Projects (> $10M) • Certified project manager • Integrated project team • Detailed documentation • DOE project management Order 413.3B • Rigorous project controls HRMAC Spectrometer 9

10. Recovery Act • American Reinvestment and Recovery Act signed into law in February 2009 • Expires in 5 years (Feb 2014) • Primary objective of ARRA to save and create jobs; promote economic recovery • $787B invested nationwide: • 1. California – $31.6B ($856 per resident) • 2. New York - $16.9B ($684 per resident) • 3. Texas - $16.7B ($856 per resident) • 8. Washington $8.4B ($1,260 per resident) • DOE allocated $36B 1 Billion Dollars 10

11. Recovery Act Project – EMSL Ready to Respond • Office of Science client indicates opportunity to accelerate capital refresh plan • EMSL responds at funding level of $60M • Accelerate capital planning from 7 years to 18 months • Existing plans mold priority list of instruments • List of 36 items are approved • Instruments valued from $4.9M to $90K; avg value $1.5M • Project management process already in place • Approved by sponsor • Allows for tailoring • Follows DOE Order 413. 3B • Project controls capability matrixed to EMSL • Tools in place • Experienced project manager available 11

12. EMSL Recovery Act Team 12

13. PNNL Approach to PM/PC R2A2s Typical PM Responsibilities • Single point of contact with customer • Writes PMP • Drives schedule development • Typically delegates to senior CAM • Writes Monthly reports • Develops risks mgt plans • Communicates with Senior Mgt • Shared responsibility for communicating with sponsor • Reviews & approves PMP • Sets strategy for schedule • Typically delegates PC lead • Review & approve Monthly reports • Sets strategy for risk mgt plans • Communication with sponsor • Drafts entire PMP • Drives Schedule & budget development • Drives development of entire monthly report • Typical PC Responsibilities • Communicates with CAMs • Writes small sections of PMP • Implements PM tools • Monthly performancestatusing • Develops sections of Monthly reports 13

14. Project Manager and Project Controls Teamed to: • Build trust • Enable project controls to lead (e.g., delegation) • Provide direct communication with the client based on question • Role based decisions authority • PM sought advice and input from project controls on significant issues • Project controls consider deputy to PM 14

15. Project Manager and Project Controls Relationship – How it developed • PC developed sense of what was important to project manager • Trust developed through day-to-day decisions and discussions • Developed positive relationship with CAMs, facility mod leads, and Contracting Officers • Discussed important issues and actions before delegation 15

16. Project Manager and Project Controls Relationship – How it worked • Project Manager • Retained final decision • Accountable to EMSL senior mgmt and DOE • Project Controls • Responsible for coordinating the development of the baseline plan (work scope, schedule, budget, and risks) • Generated status reports for CAMs and DOE • Provided advice and feedback on challenges and issues Dr. Allison Campbell, EMSL Director Michael Kluse, PNNL Laboratory Director 16

17. EMSL Recovery Act Project • Planning phase • Identify CAMs and Contracting Officers • WBS development • CAM’s prepare WBS dictionaries • Schedule development (P3) • Resource loading (in-house pricing) • Vendor pricing estimates • Labor estimates • Facility mod estimates • Prepare control account agreements • Prepare Project Execution Plan and Risk Management Plan • Several iterations with each CAM 17

18. EMSL Recovery Act Project • Execution phase • PM issues charge letter • Monthly status from CAMs • Monthly reporting at control account level • Reporting to DOE • Report against delivery/acceptance milestones (e.g., 50% accepted or in acceptance) • Monthly cost and schedule variance report to BER • Bi-weekly conference call with BER and PNSO • Monthly report to PNSO • Ad hoc reporting • Corrective actions • Baseline change requests 18

19. EMSL Recovery Act Project • Once a week mtg with CAMs: • Technical progress • Contracting issues • Facility modifications • Costing • 60-day look ahead • Managing Contracts • Dedicated Contracting Officers • Delivery schedules • Damages goods • Consideration when contract terms not met • Routine estimate at completions; more frequent near project finish 19

20. EMSL Recovery Act Project • Closeout phase • Ensure instrument acceptance • Ensure facility modifications are complete • Close charges codes • Close contract with vendors • Address outstanding accruals • Identify items with warranties extending below finish date • Conduct readiness review • Issue closure letter and obtain signatures 20

21. Lessons Learned • Key take-ways – the good stuff • Strategic planning brings confidence from sponsor • Identifying the appropriate CAMs • Dedicated support staff on large projects • Early involvement of project controls • Control Account Agreements clarified expectations • Key take-ways – needs improvement • Work closely with ES&H (especially with vendors) • Vigilance or workload is vital • Receiving procedures to ensure safe arrival of goods • Clarity in contract language 21

22. Questions? <#>