Detailed Information on the
National Nuclear Infrastructure Assessment

The Department of Energy's (DOE) Office of Nuclear Energy (NE) will commission the National Academy of Sciences (NAS) to undertake a comprehensive, independent evaluation of NE program's goals and plans, and process for establishing program priorities and oversight (including the method for determining the relative distribution of budgetary resources). The evaluation will result in a comprehensive and detailed set of policy and research recommendations and associated priorities (including performance targets and metrics) for an integrated agenda of research activities within the scope of available resources that can best advance NE's fundamental mission of securing nuclear energy as a viable, long-term commercial energy option to provide diversity in energy supply. The report will provide alternative strategies, models, and recommendations for how the R&D programs can be restructured to advance more efficiently and effectively NE's fundamental mission, goals, and objectives. The review will also evaluate the management and integration of NE's R&D programs and the Idaho Facilities Management program (including the Ten Year Site Plan), as well as the role of the Nuclear Energy Research Advisory Committee (NERAC) in the process. The final report will include findings, conclusions, and recommendations for the NE program.

Measure: To ensure unique nuclear facilities are available to support critical Departmental missions, achieve cumulative variance of less than 10 percent from cost and schedule baselines at Idaho National Laboratory for Idaho Facilities Management program facilities and activities (which include facilities used by the Radiological Facilities Management program), consistent with safe operations.

Explanation:

Measure: Stabilize (stop the growth) of INL deferred maintenance backlog for active, mission-critical INL-NE real property assets by end of FY 2007 as measured by little or no growth the last two quarters.

Explanation:

Measure: Validate the Asset Condition Index (ACI), and achieve an ACI rating of adequate, good or excellent for 60 percent of active mission-critical INL-NE facilities by 2008, and a rating of adequate, good, or excellent for 80% of active mission-critical INL-NE facilities by 2013 (Improved condition of mission-critical facilities).

Explanation:

Measure: Validate the Asset Utilization Index (AUI, and achieve an AUI rating of "good" to "excellent" for active mission-critical INL-NE facilities by 2014 (More efficient, cost-effective use of mission-critical facilities).

Explanation:

Measure: Reduce and maintain the deferred maintenance backlog for active mission-critical INL-NE real property assets to within the average range for equivalent industrial facilities by 2016.

Explanation:

Measure: To ensure unique nuclear facilities are available to support critical Departmental missions, maintain a facility operability index of 0.9 for key Idaho Facilities Management and Radiological Facilities Management program facilities.

Explanation:

Is the program purpose clear?

Explanation: The purpose of this program is to build, maintain, operate, and dispose of real property owned by Office of Nuclear Energy, Science and Technology's (NE-HQ) at the Idaho National Engineering and Environmental Laboratory (INEEL) and the Argonne National Laboratory ' West (ANL-W). This includes conducting day-to-day infrastructure operations and maintenance, and recapitalization. It also includes management of various crosscutting contracts and obligations between the Department of Energy (DOE) and other entities, including the National Oceanic and Atmospheric Administration, the Shoshone and Bannock Indian Tribes, the State of Idaho, and payments in lieu of taxes for the four counties in which the INL is located. The INEEL and ANL-W will be combined into the Idaho National Laboratory (INL) in FY 2005. The program supports the major nuclear energy programs: (1) Generation IV reactor concepts; (2) Next Generation Nuclear Plant; (3) nuclear hydrogen; (4) Advanced Fuel Cycle Initiative research and development; (5) Radioactive Power Supplies for Space Application Program; and, (6) the University Reactors Program. In addition, the program supports other programs at INL, such as National Security Technology; Fuels and core component irradiation testing for the Naval Nuclear Propulsion Program; production of M-1 Abrams Tank armor; Fossil Energy, Energy Efficiency, and Renewable Energy research programs; the Idaho Cleanup Project under the DOE Office of Environmental Management; and advanced technology laboratories.

Evidence: 1. Department of Energy (DOE) Strategic Plan, Sept. 2003 2. Secretary of Energy's Announcement of the New Mission for the Idaho National Engineering and Environmental Laboratory of July 15, 2002 3. Idaho National Laboratory Ten Year Site Plan of April 2004 4. NE-HQ Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 5. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 6. Report of the Infrastructure Task Force of the DOE Nuclear Energy Research Advisory Committee, Draft of January 16, 2003.

Does the program address a specific and existing problem, interest or need?

Explanation: The program specifically addresses the need of operating and maintaining the Idaho National Engineering and Environmental Laboratory (INEEL) mission-essential, common-use infrastructure and Office of Nuclear Energy, Science and Technology's (NE-HQ) programmatic facilities in support of the new NE-HQ mission for the site and the numerous other programs using or planning to use the site as discussed in Question 1.1. This must be done to achieve the programmatic goals of the NE-HQ programs, provide adequate infrastructure support for the multi-program, mission-essential facilities, meet Congressional direction for footprint reduction, and ensure compliance with environmental, safety and health laws and regulations.

Evidence: 1. Announcement of Secretary of Energy on the New Mission of the Idaho National Engineering and Environmental Laboratory of July 15, 2002 2. Request for Proposal for Idaho National Laboratory DE-RP07-03ID14517 3. NE-HQ Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 4. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 5. Idaho National Laboratory Ten Year Site Plan of April 2004 6. Report of the Infrastructure Task Force of the U.S. DOE Nuclear Energy Research Advisory Committee, Draft, Rev. 1 of January 16, 2003

Is the program designed so that it is not redundant or duplicative of any other Federal, state, local or private effort?

Explanation: The function of the program is to provide landlord services and infrastructure support for the programs noted in Question 1.1. A dedicated landlord program for managing infrastructure is required at all Federal sites. The Idaho facilities are unique in that for over 50 years the site has been the nation's primary laboratory for development of nuclear energy for civilian electric power and nuclear propulsion for the U.S. Navy. Most of these facilities are one-of-a-kind assets considered essential by the Secretary of Energy for accomplishment of the new nuclear energy and multi-program mission assigned to the site.

Evidence: 1. Secretary of Energy's Announcement of the New Mission for the Idaho National Engineering and Environmental Laboratory of July 15, 2002 2. FY 2005 Department of Energy's Budget Rollout 3. NE-HQ Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 4. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 5. Idaho National Laboratory Ten Year Site Plan for April 2004 6. U.S. Department of Energy Nuclear Reactor Technology Lead Laboratory Charter of July 1999 7. DOE Order 413.3, Program and Project Management of the Acquisition of Capital Assets

Is the program design free of major flaws that would limit the program's effectiveness or efficiency?

Explanation: To enhance effectiveness and efficiency in accomplishing the new mission for the INEEL discussed in Question 1.1, a new contracting arrangement consisting of two separate contracts for the INEEL has been designed and is planned to be competed in FY 2004 to take effect in FY 2005. One contract will focus on the new Office of Nuclear Energy, Science and Technology mission as well as providing adequate infrastructure support for all programs at the INEEL. The other contract is planned to be focused on completion of the cleanup mission at the site under the DOE Office of Environmental Management. The INL Ten Year Site Plan (TYSP) will be the primary management document for the Idaho Facilities Management Program. It provides a mission-based needs analysis of existing facilities and infrastructure and recommendations for short- and long-term recapitalization of existing mission-essential facilities over a ten-year planning horizon.

Evidence: 1. Request for Proposal for Idaho National Laboratory - DE-RP07-03ID14517 2. Current contract with Bechtel BWXT of Idaho, LLC ' DE-AC07-99ID13727 3. Department Order 430.1B, Real Property Asset Management 4. INL Ten Year Site Plan of April 2004

Is the program effectively targeted, so that resources will reach intended beneficiaries and/or otherwise address the program's purpose directly?

Explanation: Idaho Facilities Management Program funds are targeted to address program purposes through formal planning and financial control mechanisms such as: 1) the Idaho National Laboratory (INL) Ten Year Site Plan (TYSP); 2) the Office of Nuclear Energy, Science and Technology Program Plan for Government Performance and Results Act; 3) preparation of the program's annual Congressional Budget Request from the INL TYSP; 4) the providing of annual program execution guidance from NE-HQ that specifically delineates where funding is to be expended; and 5) ensuring strict accountability for funds using Department accounting procedures with validation by independent audits.

Evidence: 1. NE-HQ Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 2. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 3. Idaho National Laboratory Ten Year Site Plan of April 2004 4. NE-40 Memorandum of January 16, 2004, Fiscal Year (FY) 2004 Work Authorization and Program Guidance for the Idaho National Engineering and Environmental Laboratory (INEEL) Idaho Facilities Management-INEEL Infrastructure Program 5. FY 2005 Congressional Budget for Idaho Facilities Management 6. INEEL Detailed Work Plan Summary for FY 2004 ' INEEL/EXT-03-01101 7. INEEL Site Wide Landlord Operations FY 2004 Detailed Work Plan ' INEEL/EXT-03-01101-SW 8. Physical Assets Maintenance and Operations FY 2004 Performance Baseline INEEL/EXT-03-01411 9. DOE Office of Inspector General Memorandum of February 9, 2004, Management Letter on the Audit of the Department of Energy's Consolidated Financial Statements for Fiscal Year 2003.

Does the program have a limited number of specific long-term performance measures that focus on outcomes and meaningfully reflect the purpose of the program?

Explanation: The Idaho Facilities Management Program's long-term outcomes and performance measures are summarized in the Office of Nuclear Energy, Science and Technology's (NE-HQ) Program Plans for Government Performance and Results Act (GPRA), and discussed in detail in Chapter 6 of the Idaho National Laboratory's (INL) Ten Year Site Plan (TYSP). The program's basic long-term performance measures are: 1) Efficient Use of Existing Assets: The performance measure is to achieve an Asset Utilization Index (AUI) of 'good' to 'excellent' by 2014. The AUI provides a combined appraisal of utilization of operating facilities through Effective Space Management targets and elimination of excess facilities through achievement of Footprint Reduction targets; 2) Improve construction project management: The performance measure is to complete planned projects in the INL TYSP on time and within a maximum of 10% above the approved baseline cost; 3) Improved Maintenance of Facilities: The performance measures are to stabilize the deferred maintenance backlog (stop the growth) for mission-critical facilities by 2007 and to reduce the deferred maintenance backlog for those facilities to within the average range for equivalent industrial facilities by 2014, and 4) Improve value of mission-essential INL assets: The goal is to achieve a condition assessment of 'Good' for 60% of the active, mission-critical, INL NE-HQ facilities by 2008 and a condition assessment of 'Good' for 80% of the active mission-critical, INL NE-HQ Facilities by 2013.

Evidence: 1. NE-HQ Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 2. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 3. Idaho National Laboratory Ten Year Site Plan of April 2004 4. Request for Proposal for Idaho National Laboratory DE-RP07-03ID14517 5. Department Order 430.1B, Real Property Asset Management 6. Department Order 413.3, Program and Project Management for the Acquisition of Capital Assets 7. INEEL/INL Footprint Reduction Plans Summarized (in INL TYSP) 8. INEEL/INL Space Management Program Documentation 9. National Research Council Report, Stewardship of Federal Facilities, 1998

Does the program have ambitious targets and timeframes for its long-term measures?

Explanation: The Idaho National Engineering and Environmental Laboratory contract is being re-competed for implementation as the Idaho National Laboratory (INL) contract in FY 2005 to achieve the new mission in a more efficient and cost-effective manner in accordance with the Department's performance-based procurement guidance. Completion of the contract term is clearly tied to ambitious performance goals, and well-defined off-ramps are provided if performance is not achieved. The targets and timeframes in the TYSP are ambitious and challenging. They include: 1. Ensuring that achieving measurable progress in cost efficiency while accomplishing the program goals is part of the terms and conditions of the contract and is factored into the Performance Based Incentives; 2. Ensuring efficiency and cost-effectiveness in work force management through the use of sub-contracting to the maximum extent possible. 3. Conducting construction projects strictly in accordance with Department Order 413.3, Program and Project Management for the Acquisition of Capital Assets, which requires careful analysis of alternatives and cost-effectiveness; 4. Using Value Engineering processes to reduce construction project costs; and 5. Ensuring the contractor conducts periodic, targeted, in-depth reviews of infrastructure management to identify efficiencies and enhance cost-effectiveness such as the recent major maintenance management review and upgrade which led to new procedures for achieving and measuring efficiencies and cost-effectiveness in the performance of maintenance and repair.

Evidence: 1. Idaho National Laboratory Ten Year Site Plan of April 2004 2. Current Bechtel BWXT Contract DE-AC07-99ID13727 3. Current Argonne National Laboratory-West Contract, W-31-109-ENG-38 4. Request for Proposal for Idaho National Laboratory DE-RP07-03ID14517 5. Value Engineering Process description, INEEL GDE-70 6. DOE Order 413.3, Program and Project Management for the Acquisition of Capital Assets 7. Bechtel BWXT Idaho, LLC Physical Asset Maintenance Management Improvement Presentation of December 2003

Does the program have a limited number of specific annual performance measures that can demonstrate progress toward achieving the program's long-term goals?

Explanation: All annual and long-term measures for the Idaho Facilities Management Program are intended to provide infrastructure support for the research and development missions of the laboratory identified in Question 1.1. Specific annual targets to accomplish the long-term Performance Measures for the Idaho Facilities Management Program are set forth in Chapter 5 of the Idaho National Laboratory (INL) Ten Year Site Plan (TYSP) and are identified in the "Measures" section of this assessment. They include measures addressing: Infrastructure Operations and Planning; General Plant and Operating Projects; Line Item Construction Projects; General-Purpose-Capital-Equipment Procurements; and Disposition of Excess Facilities.

Evidence: 1. NE-HQ Program Plan for GPRA Unit 17, Maintaining the Nation's Nuclear Infrastructure Capability 2. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 3. Idaho National Laboratory Ten Year Site Plan of April 2004 4. DOE Order 430.1B, Real Property Asset Management

Does the program have baselines and ambitious targets for its annual measures?

Explanation: The site contractor prepares a Physical Assets Maintenance and Operations Performance Baseline document and detailed work plans each fiscal year for review and approval by the Office of Nuclear Energy, Science and Technology (NE-HQ). NE-HQ ensures that targets are ambitious relative to achieving long-term performance measures (set forth in the answers to questions 2.1 and 2.2). These include taking an aggressive approach to ensuring adequate cost estimates, managing projects on schedule and within cost, and achieving measurable gains in maintenance efficiency.

Evidence: 1. Idaho National Laboratory Ten Year Site Plan of April 2004 2. Current Contract with Bechtel BWXT of Idaho, LLC ' DE-AC07-99ID13727 3. INEEL Detailed Work Planning Summary for FY 2004 ' INEEL/EXT-03-01101 4. DOE Order 413.3, Program and Project Management for the Acquisition of Capital Assets 5. DOE Order 430.1B, Real Property Asset Management 6. INEEL Physical Assets Maintenance and Operations FY 2004 Performance Baseline ' INEEL/EXT-03-01411 7. INEEL Excess Facility Action Plan for FY 2004

Do all partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) commit to and work toward the annual and/or long-term goals of the program?

Explanation: The Department's partners for the Idaho Facilities Management Program are the primary Management and Operating (M&O) Contractor and other government programs that use the Idaho facilities and infrastructure as noted in Question 1.1. All programs at the Idaho National Engineering and Environmental Laboratory (INEEL) and the current M&O contractor for the INEEL participated in the development of the Idaho National Laboratory (INL) Ten Year Site Plan (TYSP) and committed to work toward its annual and long-term goals. The current contract is a performance-based, incentivized contract that addresses the requirements of both the nuclear energy and the current multi-program missions of the site. The Request for Proposals for the new M&O contract for the INL to take effect in FY 2005 specifically states that the new contractor will, 'Aggressively streamline, upgrade, and plan for new infrastructure'at the INL using the goals and milestones contained in the INL Ten Year Site Plan.' The new contract will also be a performance based, incentivized contract that addresses both the nuclear energy and planned multi-program missions for the Laboratory. Planned annual revisions to the INL TYSP will be made in full partnership with the M&O contractor and all the programs using the INL facilities and infrastructure.

Evidence: 1. Idaho National Laboratory Ten Year Site Plan of April 2004 2. Current Contract with Bechtel BWXT of Idaho, LLC ' DE-AC07-99ID13727 3. Request for Proposal for Idaho National Laboratory DE-RP07-03ID14517

Are independent evaluations of sufficient scope and quality conducted on a regular basis or as needed to support program improvements and evaluate effectiveness and relevance to the problem, interest, or need?

Explanation: Routine independent evaluators include: 1) the DOE Office of the Inspector General (IG); 2) the DOE Office of Independent Oversight and Performance Assessment (OA); 3) the DOE Office of Environment, Safety and Health (EH); 4) the General Accounting Office (GAO); 5) the Idaho Operations Office (NE-ID); 6) the Office of Nuclear Energy, Science and Technology (NE-HQ); and 7) the State of Idaho Department of Environmental Quality (DEQ). The DOE IG, DOE OA, DOE EH, Idaho DEQ, and GAO audits occur at random intervals and cover selected issues as determined by their planning process. A key independent evaluation was conducted after announcement of the new mission for the Idaho National Engineering and Environmental Laboratory in July of 2002. An evaluation of the status of the Idaho infrastructure and its ability to support the new nuclear energy research and development mission was conducted by the Infrastructure Task Force of the U.S. DOE Nuclear Energy Research Advisory Committee with a report issued in January of 2003. None of the members of this committee are from the Department of Energy'representatives are from universities, industry, and national laboratories. The results of this evaluation were factored into the development of the Idaho National Laboratory Ten Year Site Plan and the NE-HQ Program Plans for Government Performance and Results Act (GPRA). The Manager of NE-ID, the NE-ID Contracting Officer, and NE-HQ, as the program sponsor, are primarily responsible for providing comprehensive independent evaluations of the contractor's performance on a daily basis. These continuous evaluations and associated follow-up actions are documented in a variety of reporting mechanisms. A comprehensive program review of the contractor's performance is held annually by NE-HQ and NE-ID at the mid-point of the fiscal year from which actions and commitments for improvement are developed. At these comprehensive mid-year reviews, the program's accomplishment of its primary purpose to provide infrastructure support to all the research and development and cleanup missions of the laboratory is evaluated.

Evidence: 1. Idaho Reviews Summary of February 2004 2. Memorandum from the DOE Office of Inspector General of February 9, 2004, Management Letter on the Audit of the Department of Energy's Consolidated Financial Statements for Fiscal Year 2003 3. DOE Office of Independent Oversight and Performance Assurance (OA), Inspection of Environment, Safety, and Health Management and Emergency Management at the INEEL of September 2003 4. Idaho Operations Office Corrective Action Plan for the September 2003 DOE OA Inspection at INEEL dated January 2004 5. State of Idaho Department of Environmental Quality Letter the Idaho Operations Office of November 28, 2001, Hazardous Waste Management Act/Resource Conservation and Recovery Act Compliance Inspection Narrative Report for the Inspection Conducted at INEEL on July 16 ' 20, 2001 6. Report of the Infrastructure Task Force of the U.S. DOE Nuclear Energy Research Advisory Committee of January 16, 2003 7. ATR, TRA, INEEL Infrastructure, ANL-W Mid-Year Reviews for FY 2004 8. Idaho Operations Office Assessment Program , Schedules and Sample Reports 9. INEEL Assessment Program, Schedules and Sample Reports 10. ICARE System Description and sample status report

Are Budget requests explicitly tied to accomplishment of the annual and long-term performance goals, and are the resource needs presented in a complete and transparent manner in the program's budget?

Explanation: The long-term performance goals for the Idaho Facilities Management Program were developed and finalized in FY 2004 as part of the Idaho National Laboratory Ten Year Site Plan. They will be used to inform decisions during the FY 2006 Budget development process.

Evidence: 1. NE-HQ Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 2. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 3. Idaho National Laboratory Ten Year Site Plan of April 2004 4. FY 2005 Idaho Facilities Management Congressional Budget 5. INEEL LST 246 Rev 3, INEEL Building Ownership Data Base 6. INEEL FY 2004 Indirect and Other Distributable Costs Baseline, CCN 44714

Has the program taken meaningful steps to correct its strategic planning deficiencies?

Explanation: The Office of Nuclear Energy, Science and Technology (NE-HQ) has taken four meaningful steps to correct strategic planning deficiencies and revise strategic planning for the INEEL. 1. The current contract for the INEEL is focused on the cleanup mission under the Office of Environmental Management. It was recognized that an incentivized contract must be in place to focus on the new mission without detracting from the continuing cleanup mission. Thus, the INEEL contract is being re-competed and will be split into two contracts for implementation in FY 2005. One contract will focus on the new mission and the NE-HQ facilities under this contract will be re-named the Idaho National Laboratory (INL). The other contract will focus on completing the Idaho cleanup program and will be called the Idaho Completion Project. Thus, the new contractor for the INL will be able to fully focus on the new mission. 2. It was recognized that having the NE facilities at Argonne National Laboratory-West as a separate entity under the Chicago Operations Office while also being an integral part of the new NE-HQ mission at INEEL was not efficient or cost-effective. As a fundamental step in the new strategy, the Argonne National Laboratory-West facilities in Idaho will be transferred to the INL in FY 2005 as part of the new contract. 3. To ensure that the Idaho Facilities Management Program has clear performance goals rooted in the Department's Strategic Plan, new NE-HQ Program Plans for Government Performance and Results Act (GPRA) Unit 17, Maintain the Nation's Nuclear Infrastructure Capability, and GPRA Unit 14, Develop New Nuclear Generation Technologies, have been developed in accordance with direction from the Deputy Secretary. The Idaho Facilities Management Program is a fundamental part of GPRA Unit 17 and is required to support the Program Plan for GPRA Unit 14. These plans establish a link between the Department's Strategic Plan and the NE-HQ Idaho Facilities Management Program annual budgets, performance measures, and performance reporting. 4. NE-HQ developed the INL Ten Year Site Plan to explicitly link the annual budget requests to the Performance goals of the Program Plans for GPRA Units 17 and 14. The plan provides annual targets and performance measures in sufficient detail to fully support a defendable annual budget request for the program. The INL TYSP addresses how the site's real property assets will support the Department's strategic plan, the Secretary's 5-year planning guidance, and appropriate program guidance.

Evidence: 1. Department's Strategic Plan of September 2003 2. Secretary of Energy's Announcement of the New Mission for the Idaho National Engineering and Environmental laboratory of July 15, 2002 3. NE-HQ Ten Year Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 4. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 5. Idaho National Laboratory Ten Year Site Plan of April 2004 6. Request For Proposal for Idaho National Laboratory DE-RP07-03ID14517

Has the agency/program conducted a recent, meaningful, credible analysis of alternatives that includes trade-offs between cost, schedule, risk, and performance goals and used the results to guide the resulting activity?

Explanation: Since Idaho Facilities Management is a continuing level-of-effort program that serves all programs on the site, the INL TYSP development and maintenance process involves continuously looking at alternatives and trade-offs between cost, schedule, risk and performance goals for routine maintenance, recapitalization, and proposed new initiatives for mission-essential infrastructure facilities, systems and structures. The Congressionally sponsored analysis by the National Research Council titled "Stewardship of Federal Facilities" (1998), which discusses trade-offs and alternatives between cost, schedule, risk and performance goals, was used to guide establishment of long-term performance measures in the plan. The plan is a living document that will undergo annual revision to ensure it is current.For Line Item Construction Projects and General Plant Projects, DOE Order 413.3, Program and Project Management for the Acquisition of Capital Assets, has been implemented at INL. The Value Engineering Process is used in planning all capital projects. This process requires rigorous, documented analyses of alternatives that include trade-offs between cost, schedule, risk and performance goals as an initial step for any proposed project, and all such analyses are subject to independent review. Recent examples of this process being applied to specific issues include an independent analysis of the proposed INL Remote Treatment Project and a major maintenance management review and upgrade for routine maintenance by the contractor that analyzed alternatives and trade-offs between cost, schedule, risk, and performance goals using models from other Department sites and private industry. It is estimated that implementation of these improvements is saving about $13 million per year in routine maintenance costs across the laboratory.

Evidence: 1. Idaho National Laboratory Ten Year Site Plan of April 20042. DOE Order 430.1B, Real Property Asset Management3. DOE Order 413.3, Program and Project Management for the Acquisition of Capital Assets 4. ASTM review of RTP 5. Bechtel BWXT Idaho, LLC Physical Asset Maintenance Management Improvement Presentation of December 20036. Value Engineering Process Description7. National Research Council report on Stewardship of Federal Facilities, 1998

Does the agency regularly collect timely and credible performance information, including information from key program partners, and use it to manage the program and improve performance?

Explanation: Information collected includes but is not limited to: 1) audit reports from the DOE Office of the Inspector General and the General Accounting Office; 2) assessment reports from the DOE Office of Independent Oversight and Performance Assurance and the DOE Office of Environment, Safety and Health; 3) recurring environmental compliance inspection reports from the Idaho Department of Environmental Quality; and 4) miscellaneous inspection or assessment reports that occur on request. The Office of Nuclear Energy, Science and Technology (NE-HQ) and the Idaho Operations Office (NE-ID) collect timely and credible performance information in a variety of ways, including: 1) NE-ID monthly status meetings with the contractor on infrastructure, focusing on earned value and programmatic milestone accomplishments for the performance measures in the Idaho National Laboratory Ten Year Site Plan and the fiscal year Detailed Work Plans; 2) formal mid-fiscal year reviews with contractor program management and customers; 3) DOE Facility Representative surveillance reports that reflect a systematic, continual assessment of contractor operations at all site facilities in accordance with an annual assessment plan; 4) monthly reports on maintenance performance indicators, contractor reactor programs, and budget performance; and 5) reports from the meetings of the Facilities and Infrastructure Executive Steering Committee, which monitors integration of site-wide activities. When issues for improvement are identified in any review, they are formally documented and tracked to resolution.

Evidence: 1. Idaho National Laboratory Ten Year Site Plan of April 2004 2. INEEL Reviews Summary Report for February 2004 3. Idaho Operations Office Assessment Program Description, sample of Schedule, and sample of Reports 4. INEEL Assessment Program Description, sample of Schedule, and sample of Reports 5. INEEL Agenda for Monthly Program Status Meeting of March 2004 6. INEEL Monthly Financial Reports 7. Presentations for the INEEL Infrastructure, Test Reactor Area, Argonne National Laboratory ' West, and Advanced Test Reactor Mid-Year Reviews for FY 2004 8. Sample of Facility Representative Reports from Test Reactor Area 9. INEEL Detailed Work Plan Summary for Fiscal Year 2004 ' INEEL/EXT-03-01101 10. INEEL Detailed Work Plan for Site Wide Landlord Operations for FY 2004 ' INEEL/EXT-03-01101-SW 11. INEEL Facilities and Infrastructure Executive Steering Committee Charter 12. Sample of INEEL Reactor Programs Monthly Report 13. Memorandum from the DOE Office of Inspector General of February 9, 2004, Management Letter on the Audit of the Department of Energy's Consolidated Financial Statements for Fiscal Year 2003 14. DOE Office of Independent Oversight and Performance Assurance (OA), Inspection of Environment, Safety, and Health Management and Emergency Management at the INEEL of September 2003 15. Idaho Operations Office Corrective Action Plan for the September 2003 DOE OA Inspection at INEEL dated January 2004 16. U.S. Army Corps of Engineers Report of February 20, 1998, Critical Analysis of INEEL Infrastructure 17. Presentation and Agenda for Monthly Tele-video Conference with NE Headquarters on Status of the Test Reactor Area Landlord for March 2004 18. Bechtel BWXT Idaho, LLC Issues Communication and Resolution Environment Process and sample Status Report 19. Idaho Department of Environmental Quality Letter to the Manager of the Idaho Operations Office of November 28, 2001, Hazardous Waste Management Act/ Resource Conservation and Recovery Act Compliance Inspection Narrative Report

Are Federal managers and program partners (including grantees, sub-grantees, contractors, cost-sharing partners, and other government partners) held accountable for cost, schedule and performance results?

Explanation: Achieving formally established goals and performance measures is incorporated into individual Federal and contractor managers' performance standards upon which annual performance appraisals and bonus awards are based. Performance is reviewed periodically with each individual. Corporate accountability for meeting goals and performance standards is measured by level of success in achieving Performance Based Incentives (PBI) developed for the contract. The contractor's award fee is based on these PBIs.

Evidence: 1. Current Bechtel BWXT Contract (Pertinent Sections) ' #DE-AC07-99ID13727 2. Request for Proposal for Idaho National Laboratory - #DE-RP07-03ID14517 3. Samples of individual federal individual performance standards for the Idaho Operations Office (NE-ID)

Are funds (Federal and partners') obligated in a timely manner and spent for the intended purpose?

Explanation: Routine independent audits performed by the DOE Office of the Inspector General have revealed no weaknesses in the obligating of funds in a timely manner for the intended purpose. The Idaho Facilities Management Program managers at NE-ID prepare annual detailed work plans (DWP) based on the appropriated budget, the Idaho National Laboratory Ten Year Site Plan, and annual Program Guidance from NE-HQ. DWPs provide planned budgets and schedules to meet established performance goals within approved resources. Funds are obligated to meet the workscope defined in the approved DWPs. There is a Baseline Change Control process in place to ensure configuration management of the DWPs. Funding status is reviewed monthly which includes: issuing of a monthly Approved Funding Program from NE, tracking the actual placing of funds on contract, and generation of a monthly funding status report at NE-ID that tracks actual cost incurred against the Work Breakdown Structure for the program. Management accountability is established for both the contractor and NE-ID management (see Question 3.2).

Evidence: 1. DOE Accounting Handbook 2. DOE Order 534.1B Accounting 3. DOE Order 135.1, Budget Execution-Funds Distribution and Control 4. DOE Manual 135.1-1, Budget Execution Manual 5. NE-ID Manual 120.A-1, General Business Planning Alignment Manual 6. Memorandum from the Manager, Idaho Operations Office of August 15, 2003, Management Control and Financial Management System Review 7. DOE Office of the Inspector General Memorandum of February 9, 2004, Management Letter on the Audit of the Department of Energy's Consolidated Financial Statements for Fiscal Year 2003 8. NE-40 Memorandum of January 16, 2004, Fiscal Year (FY) 2004 Work Authorization and Program Guidance for the Idaho National Engineering and Environmental Laboratory (INEEL) Idaho Facilities Management-INEEL Infrastructure Program 9. Idaho National Laboratory Ten Year Site Plan of April 2004 10. INEEL Fiscal Year Detailed Work Plan Summary ' INEEL/EXT-03-01-01101 11. NE-HQ FY 2004 Monthly Financial and Performance Report for February 2004

Does the program have procedures (e.g. competitive sourcing/cost comparisons, IT improvements, appropriate incentives) to measure and achieve efficiencies and cost effectiveness in program execution?

Explanation: Processes and procedures used to achieve and measure cost efficiencies and cost effectiveness in program execution include: 1. Ensuring that achieving measurable progress in efficiency and cost-effectiveness is part of the terms and conditions of the contract and is factored into the Performance Based Incentives used by the Idaho Operations Office Contracting Officer to determine annual Award Fee. 2. Ensuring efficiency and cost-effectiveness in work force management through the use of sub-contracting to the maximum extent possible, maintaining the permanent workforce at the minimum needed and enabling achievement of efficiencies and cost-effectiveness through the competitive bid process for completing specific projects. 3. Conducting construction projects strictly in accordance with Department Order 413.3, Program and Project Management for the Acquisition of Capital Assets, which requires careful analysis of alternatives and cost-effectiveness in Line Item Construction Projects and General Plant Projects. 4. Using Value Engineering processes to reduce cost while ensuring performance goals are met in planning infrastructure projects. 5. Conducting targeted in-depth reviews by the contractor to identify efficiencies and enhance cost-effectiveness such as the recent major maintenance management review and upgrade which led to new procedures for achieving and measuring efficiencies and cost-effectiveness in the performance of maintenance and repair. 6. Re-competing the Department's Management and Operating contract for implementation in FY 2005 to achieve the new mission in a more efficient and cost effective manner. 7. Implementation of Enterprise Architecture for efficient and cost effective planning of Information Technology system improvements for Idaho Facilities Management including identification of duplicate applications, redundant data collection and maintenance activities, and opportunities for operational consolidation through shared resources.

Evidence: 1. Current Bechtel BWXT Contract ' #DE-AC07-99ID13727 (PBIs for Idaho Facilities Management) 2. Request for Proposal for Idaho National Laboratory - #DE-RP07-03ID14517 (sections applicable to Idaho Facilities Management) 3. Value Engineering Process description (used for Idaho Facilities Management Projects) 4. DOE Order 413.3, Program and Project Management for the Acquisition of Capital Assets 5. Bechtel BWXT Idaho, LLC Physical Asset Maintenance Management Improvement for Idaho Facilities Management Presentation of December 2003 6. NE-ID Information Technology Enterprise Architecture Program description (applicable to Idaho Facilities Management)

Does the program collaborate and coordinate effectively with related programs?

Explanation: The Idaho Facilities Management Program is primarily a landlord program. Its related programs are the multi-mission programs it supports at the laboratory as described in Question 1.1. The program collaborates and coordinates with the active programs it supports primarily through the Idaho National Laboratory's (INL) long-term planning process. The nature of the collaboration and coordination is to formally work with the tenant programs on a continuing basis to identify mission-essential infrastructure and to incorporate that information into annual and long-term maintenance and recapitalization project planning. All active programs at the INEEL and planned future users of the laboratory participate in this process. With inputs from these programs, now including ANL-W, numerous detailed five to ten-year plans linked to the research and development and cleanup missions discussed in Question 1.1 covering various infrastructure issues related to these missions are rolled up into one high level Ten Year Site Plan.

Evidence: 1. NE-HQ Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 2. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 3. INL Ten Year Site Plan of April 2004 4. Department Order 430.1B, Real Property Asset Management 5. Request for Proposal for Idaho National Laboratory - #DE-RP07-03ID14517

Does the program use strong financial management practices?

Explanation: NE-ID receives routine independent financial audits from the DOE Office of the Inspector General who uses an independent contractor, KPMG, for this function. No significant weaknesses in financial management were noted in the most recent audit. Areas noted for improvement are tracked to resolution.

Evidence: 1. DOE Accounting Manual 2. DOE Order 534.1B Accounting 3. DOE Order 135.1, Budget Execution-Funds Distribution and Control 4. DOE Manual 135.1-1, Budget Execution Manual 5. NE-ID Manual 120.A-1, General Business Planning Alignment Manual 6. Manager Idaho Operations Office Memorandum of August 15, 2003, Management Control and Financial Management System Review 7. DOE Office of the Inspector General Memorandum of February 9, 2004, Management Letter on the Audit of the Department of Energy's Consolidated Financial Statements for Fiscal Year 2003

Has the program taken meaningful steps to address its management deficiencies?

Explanation: Examples of recent actions taken by the Idaho Operations Office (NE-ID) to address management deficiencies for the Idaho Facilities Management Program include: 1. The contractor's self-assessment programs for environment, safety and health oversight were evaluated as ineffective. A credible self-assessment program is mandatory if the contractor is to accomplish program goals efficiently and effectively. A new contract oversight model has been developed as part of the re-competing of the Management and Operating contract for the Idaho National Laboratory. Under the new model, NE-ID will monitor that the contractor has a robust self-assessment program and will refocus its oversight on risk based reviews of relevant information and data. 2. In 2003, NE-ID identified three management areas as weaknesses. These were in the areas of setting contract requirements, internal management processes, and contract management all of which are applicable to Idaho Facilities Management. A Baseline and Benchmarking Initiative to address the identified weaknesses was initiated. Three teams, one for each issue, conducted an in-depth baseline review of conformance to requirements and conducted comparisons with how other similar DOE sites addresses these requirements. A report was prepared in November of 2003 and has formed the basis of a management improvement plan for NE-ID. 3. Construction project management has been identified as a Department-wide weakness. This is directly applicable to the Idaho Facilities Management Program that routinely conducts construction projects. An independent review of Program and Project Management (PPM) at the Idaho National Engineering and Environmental Laboratory (INEEL) was conducted in May of 2003 to assess the capabilities and maturity of the management processes used to deliver PPM services and products at INEEL. Two observations and five recommendations resulted from the assessment that are being used to improve PPM at INEEL. 5. To further address the Department-wide weakness in construction project management, NE-HQ and NE-ID have implemented a certification program for all construction project managers using the Department's Acquisition Career Development Program.

Evidence: 1. ISO 90001 description and process for certification 2. Department Policy 450.5, Line Environment, Safety and Health Oversight 3. Request for Proposal for Idaho National Laboratory DE-RP07-03ID14517 4. Idaho Operations Office Baseline and Benchmarking Initiative Report of November 2003, DOE/NE-ID-11126 5. Report on the Program and Project Management Independent Assessment (Rev 2) at the Idaho National Engineering and Environmental Laboratory by the Logistics Management Institute of McLean, VA, June 2003 6. Department Order 361.1, Chg. 2, Acquisition Career Development Program

Is the program managed by maintaining clearly defined deliverables, capability/performance characteristics, and appropriate, credible cost and schedule goals?

Explanation: The current contract is a 'Performance Based Management Contract' that uses an award fee element and specific performance-based incentive fees. The INL contract is being re-competed to have a new contractor in place in FY 2005. The Request for Proposals for the new contract specifies it as a performance-based contract. The Idaho Facilities Management Program is linked to the requirements of the research and development and cleanup missions discussed in Question 1.1, and the program deliverables, performance characteristics, and cost and schedule goals are completely focused on providing infrastructure support for those missions.Within this performance context, clearly defined deliverables, capability/performance characteristics, and appropriate, credible cost and schedule goals are identified primarily in: 1) the Idaho National Laboratory (INL) Ten Year Site Plan (TYSP) and its supporting documents; 2) the annual program guidance from the Office of Nuclear Energy, Science and Technology; and 3) the annual detailed work plans.The Office of Nuclear Energy, Science and Technology program managers and the Idaho Operations Office staff formally review actual accomplishments against the annual and long-term performance targets and measures primarily through a monthly reporting and review process. Oversight of contractor performance in all areas occurs in various forms on a daily basis.

Evidence: 1. INL Ten Year Site Plan of April 20042. Current Bechtel BWXT Contract (Pertinent Sections) ' #DE-AC07-99ID137273. Request for Proposal for Idaho National Laboratory - #DE-RP07-03ID145174. FY 2005 Idaho Facilities Management Budget Submission5. INEEL Fiscal Year Detailed Work Plan Summary ' INEEL/EXT-03-01-011016. NE FY 2004 Monthly Financial and Performance Report for February 2004

Has the program demonstrated adequate progress in achieving its long-term performance goals?

Explanation: The long-term performance goals for the Idaho Facilities Management Program were developed and finalized in FY 2004 as part of the Idaho National Laboratory Ten Year Site Plan. This plan was used in establishing the first program annual goals for FY 2005. Therefore, the program will be unable to demonstrate progress until the end of FY 2005. The program has met all of its significant planning milestones. These include: 1. Completion of the Office of Nuclear Energy, Science and Technology's (NE-HQ) Program Plans for Government Performance and Results Act (GPRA), which establish a concrete link between the Dpartment's Strategic Plan and the Department's annual budgets, performance measures, and performance reporting for Idaho Facilities Management. 2. Completion of the Idaho National Laboratory (INL) Ten Year Site Plan (TYSP) for the Idaho Facilities Management program for accomplishing the new mission ahead of schedule in October 2003. The plan was approved and implemented in time to allow adjustments to the FY 2004 Idaho Facilities Management detailed work planning to support the new mission within approved funding and to help support the FY 2005 budget request, then in progress. 3. Re-competing the INEEL contract for implementation in FY 2005. This new contracting process remains on schedule. 4. Overhauling the Idaho Facilities Management Program's Maintenance Management System in FY 2003 and 2004 which will result in significant savings in costs of routine maintenance.

Evidence: 1. NE-HQ Program Plan for GPRA Unit 17, Maintain the Nation's Nuclear Infrastructure Capability 2. NE-HQ Program Plan for GPRA Unit 14, Develop New Nuclear Generation Technologies 3. Idaho National Laboratory Ten Year Site Plan of April 2004 4. DOE Order 430.1B, Real Property Asset Management 5. DOE Order 413.3, Program and Project Management for the Acquisition of Capital Assets 6. INEEL Building Ownership Database ' ID LST 246, Rev. 3 of January 21, 2004 7. Bechtel BWXT Idaho, LLC Physical Asset Maintenance Management Improvement Presentation of December 2003

Does the program (including program partners) achieve its annual performance goals?

Explanation: The long-term performance goals for the Idaho Facilities Management Program were developed and finalized in FY 2004 as part of the Idaho National Laboratory Ten Year Site Plan. This plan was used in establishing the first program annual goals for FY 2005. Therefore, the program will be unable to demonstrate progress until the end of FY 2005.

Evidence:  

Does the program demonstrate improved efficiencies or cost effectiveness in achieving program goals each year?

Explanation: The long-term performance goals for the Idaho Facilities Management Program were developed and finalized in FY 2004 as part of the Idaho National Laboratory Ten Year Site Plan. This plan was used in establishing the first program annual goals for FY 2005. Therefore, the program will be unable to demonstrate progress until the end of FY 2005. Since the Office of Nuclear Energy, Science and Technology (NE-HQ) assumed responsibility for the Idaho Facilities Management Program from the Office of Environmental Management in May of FY 2003, the program is striving to implement improved efficiency and cost-effectiveness in achieving its programmatic goals of providing infrastructure support to the new and ongoing missions of the Idaho National laboratory discussed in Question 1.1. Examples of efficiency improvements include: 1. The Idaho National Engineering and Environmental Laboratory (INEEL) contract is being re-competed for FY 2005. When implemented, the Argonne National Laboratory-West facilities in Idaho will be incorporated into the INEEL and the new complex will be renamed the Idaho National Laboratory (INL). This will achieve significant improvement in efficient management of the NE-HQ programmatic facilities and common-use infrastructure at the INL. 2. A new INL Ten Year Site Plan (TYSP) has been developed in 2003 that meets the requirements of Department Order 430.1B, Real Property Asset Management. The INL TYSP provides, among other things, a mission needs analysis of existing facilities and infrastructure, a prioritization process, and long-term performance goals. 3. A new Maintenance Management Program has been implemented in FY 2004 that is expected to save $13.8 million in routine maintenance costs each year. 4. An energy management initiative that is designed to reduce energy costs continues to achieve its goals. 5. Safety emphasis at the INL has continued to make significant reductions in injury and illness incidents. This results in a direct and significant improvement in efficiency and effective use of resources. 6. A major efficiency improvement in site vehicle utilization has been achieved with a reduction in the number of vehicles needed to support INEEL programs. 7. An Information Technology Architecture Program has been implemented to define capabilities and utilization so that new requirements can take advantage of already available capability. For FY 2004 savings are anticipated to be $600,000. 8. A major upgrade to construction project management to ensure compliance with Department Order 413.3, Program and Project Management for the Acquisition of Capital Assets, has been implemented to ensure that such projects are planned effectively and meet budget and schedule goals. 9. Three Line Item Construction Projects were terminated in FY 2003 and FY 2004 as a result of rigorous implementation of Department Order 413.3. This will save several million dollars.

Evidence: 1. Current Bechtel BWXT Contract (Pertinent Sections) ' #DE-AC07-99ID13727 2. Request for Proposal for Idaho National Laboratory - #DE-RP07-03ID14517 3. Department Order 430.1B, Real Property Asset Management 4. INL Ten Year Site Plan of April 2004 5. Bechtel BWXT Idaho, LLC Physical Asset Maintenance Management Improvement Presentation of December 2003 6. Documentation about in-house energy management, including 'bi-annual' performance agreements. 7. Documentation regarding improved management of vehicles 8. Footprint and leased space reduction data. 9. Information Technology Architecture Program 10. DOE O 413.3, Program and Project Management for the Acquisition of Capital Assets 11. Data on reduced injury and illnesses 12. NE-40 Memorandum of January 16, 2004, Fiscal Year (FY) 2004 Work Authorization and Program Guidance for the Idaho National Engineering and Environmental Laboratory (INEEL) Idaho Facilities Management-INEEL Infrastructure Program

Does the performance of this program compare favorably to other programs, including government, private, etc., with similar purpose and goals?

Explanation: The long-term performance goals for the Idaho Facilities Management Program were developed and finalized in FY 2004 as part of the Idaho National Laboratory Ten Year Site Plan. This plan was used in establishing the first program annual goals for FY 2005. Therefore, the program will be unable to demonstrate progress until the end of FY 2005.

Evidence:  

Do independent evaluations of sufficient scope and quality indicate that the program is effective and achieving results?

Explanation: The long-term performance goals for the Idaho Facilities Management Program were developed and finalized in FY 2004 as part of the Idaho National Laboratory Ten Year Site Plan. This plan was used in establishing the first program annual goals for FY 2005. Therefore, the program will be unable to demonstrate whether it is effective and achieving results until the end of FY 2005. Independent, in-depth evaluations for selected areas of focus will be routinely conducted by organizations such as: the General Accounting Office, the DOE Office of the Inspector General; the DOE Office of Independent Oversight and Performance Assessment; the DOE Office of Environment, Safety and Health; the General Accounting Office; and the State of Idaho Department of Environmental Quality. The Manager of the Idaho Operations Office (NE-ID), the Contracting Officer, and the NE-ID Facilities Management Program managers are primarily responsible for providing comprehensive independent evaluations of the contractor's performance on a continuing basis. This is DOE's established process for providing comprehensive, baseline, independent oversight of its contractors. Properly qualified personnel from the Idaho Operations Office and the NE-ID Program Office are committed to this task as their primary duty. In addition to daily general monitoring of contractor performance, formal assessments will also be conducted for specific functions. The ID and NE Headquarters assessments follow formal, approved assessment plans and are detailed and comprehensive.

Evidence: 1. Idaho Reviews Summary for February 2004 ' NE-ID.2-02/17/04 2. DOE Office of the Inspector General Memorandum of February 9, 2004, Management Letter on the Audit of the Department of Energy's Consolidated Financial Statements for Fiscal Year 2003 3. DOE Office of Independent Oversight and Performance Assurance, Summary Report on Inspection of Environment, Safety, and Health Management and Emergency Management of the Idaho Operations Office and Idaho National Engineering and Environmental Laboratory, September 2003 4. ID Assessment Program, Schedules, and sample Reports 5. ID Facility Representative Assessment Program, Schedules, and sample Reports

Were program goals achieved within budgeted costs and established schedules?

Explanation: The long-term performance goals for the Idaho Facilities Management Program were developed and finalized in FY 2004 as part of the Idaho National Laboratory Ten Year Site Plan. This plan was used in establishing the first program annual goals for FY 2005. Therefore, the program will be unable to demonstrate progress until the end of FY 2005.

Evidence: