Detailed Information on the
Environmental and Post-Retirement Liabilities Assessment

As appropriate, get partners to commit to, measure, and report on performance related to the program's goals.

Schedule independent evaluations of the program's effectiveness by goal or program area.

Evaluate partners' contractual agreements to determine those that are not tied to performance of the program's goals.

Measure: Reduce the cost of performing long-term surveillance and monitoring activities at sites managed by the Department of Energy's Office of Legacy Management (LM), while meeting all regulatory requirements to protect human health and the environment. Reduction is measured in percent from the life-cycle baseline. Goal is a 2% reduction below the baseline for FY 2007-2011, increasing to a 10% reduction by FY 2015.

Explanation:This measure is associated with the LM subprogram of Long-Term Surveillance and Maintenance (LTS&M). For this performance measure, the baseline is the LM approved FY06 LTS&M Life-Cycle Baseline, period is FY07-FY15, in thousands of dollars by year. The current adjusted baseline funding, updated to reflect change in planned scope of activities to be conducted by LM in support of LTS&M, is as follows, with original FY06 baseline in parentheses: FY07 $39,780 ($39,780); FY08 $41,226 ($49,800); FY09 $48,212 ($55,671); FY10 $37,707 ($41,418); FY11 $38,885 ($41,427); FY12 $34,163 ($37,037); FY13 $36,156 ($38,580); FY14 $33,698 ($36,374); FY15 $33,195 ($35,719).

Measure: By FY 2015, demonstrate a reduction in risk at LM sites by employing sound project management, engineering and science-based solutions for long-term surveillance and maintenance.

Explanation:This measure is associated with the LM subprogram of Long-Term Surveillance and Maintenance. Target 1: The goal is to have zero infractions. (LTS&M to remain 100% compliant through FY 2015).

Measure: Reduce the cost to manage and store information while ensuring all regulatory and stakeholder requirements are met. Reduction is measured in percent from the life-cycle baseline. Goal is a 3% reduction below the baseline for for FY 2007-2012, increasing to a 10% reduction by FY 2015.

Explanation:This measure is associated with the LM subprogram of Archives and Information Management. Baseline: For this performance measure, the baseline is the LM approved FY07 Archives and Information Management Life-Cycle Baseline, period is FY07-FY15, in thousands of dollars by year: FY07 $9,229; FY08 $8,868; FY09 $9,770; FY10 $9,864; FY11 $9,417; FY12 $8,605; FY13 $8,763; FY14 $8,810; FY15 $9,088

Measure: Eliminate DOE's liability and future funding for the Pinellas Pension Plan through the purchase of annuities. Assumes DOE approval is first obtained. Goal is that purchase of annuities would be completed in FY 2008.

Explanation:This measure is associated with the LM subprogram of Pension and Benefit Continuity. This goal was discontinued because DOE decided on a different approach to its pension policy.

Measure: Eliminate DOE's liability and future funding for the Fluor Fernald Pension Plan through the purchase of annuities. Assumes DOE approval is first obtained. Goal is that purchase of annuities would be completed in FY 2009.

Explanation:This measure is associated with the LM subprogram of Pension and Benefit Continuity. This goal was discontinued because DOE decided on a different approach to its pension policy.

Measure: Reduce the cost to administer benefits to retired contractor workers while ensuring benefits are delivered according to schedule with no interruptions and without improper payments. Reduction is measured in cost per person per year. Based upon current program assumptions, goal is 1% reduction over the long-term (FY 2015).

Explanation:This measure is associated with the LM subprogram of Pension and Benefit Continuity. Beginning with FY08, the baseline is the estimated administrative costs per person per year through FY15. The current estimated cost per person per year is: FY08 $137.00 per person; FY09 $176.00 per person; FY10 $181.00 per person; FY11 $183.00 per person; FY12 $190.00 per person; FY13 $154.00 per person; FY14 $155.00 per person; FY15 $161.00 per person.

Measure: Increase the number of LM custody and control sites in beneficial reuse. Increase is measured against the baseline. Goal is 9,039 additional acres placed in beneficial reuse by FY 2015.

Explanation:This measure is associated with the LM subprogram of Reuse and Property Management. Beginning in FY07, LM will conduct a beneficial reuse assessment of all custody and control sites in the LM program for that year. Upon completion of the assessment, actual beneficial reuse acreage will be identified at each applicable site and will be compared to the planned beneficial reuse acreage for that same site. The goal was changed from 15,116 acres in 2015, largely because the transfer of approximately 6,000 acres at Rocky Flats will occur under management by the Environmental Management program, instead of under the LM program as originally planned.

Measure: Disposition LM managed federal property. Measured by the number of properties disposed of per year. Goal is five federal properties by end of FY 2015.

Explanation:This measure is associated with the LM subprogram of Reuse and Property Management. Targets by year: 1) 2007 - Rocky Flats, CO, Partial Disposition; 2) 2007 - Canonsburg, PA, Disposal Parcel C Disposition; 3) 2007 - New Brunswick, NJ, Disposition Site; 4) 2009 - Colonie Site, NY, Disposition Site; 5) 2010 - Middlesex Sampling Plant, NJ, Disposition Site; and, 6) 2014 - Maywood, NJ, Disposition Site.

Is the program purpose clear?

Explanation: The Department of Energy's (DOE) Office of Legacy Management's (LM) principal mission is to manage the Department's legacy issues following site closure while ensuring the protection of human health and the environment. The LM program's responsibilities include environmental surveillance and maintenance, records and real property management, and pension and benefits administration. LM's mission is composed of the following four mission goals: ?? Protect human health and the environment through effective and efficient long-term surveillance and maintenance; ?? Preserve, protect, and make accessible legacy records and information; ?? Support an effective and efficient work force structured to accomplish departmental missions and assure contractor worker pension and medical benefits; and ?? Manage legacy land and assets, emphasizing protective real and personal property reuse and disposition. LM is responsible for the environmental remedies, beneficial reuse, and records and information associated with over 70 sites (expanding to 110 sites by 2010) that contributed to the production of nuclear weapons and nuclear energy research but no longer support a continuing DOE mission. Additionally, LM is responsible for the administration of pension and benefits plans for former contractor employees at DOE closure sites and the Department's labor relations and contractor work force restructuring responsibilities. LM's mission supports DOE's Environmental Responsibility Goal to manage departmental post-closure environmental responsibilities and ensure the future protection of human health and the environment.

Evidence: ?? Department of Energy, Office of Legacy Management Stand-Up Memorandum, November 5, 2003 ?? Department of Energy Strategic Plan ?? Office of Legacy Management Strategic Plan

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

Explanation: The Department of Energy's (DOE) Office of Legacy Management (LM) addresses a specific need for the Department as well as the American taxpayer. The Department has undertaken efforts to reduce the environmental consequences of the Cold War and to cleanup radioactive and hazardous chemical wastes at Departmental sites. Remediation requires a comprehensive Department-wide approach to monitor and maintain the Departmental investments in over a hundred sites across the country and ensure that environmental remedies are functioning properly and will continue to do so to protect future generations. LM is charged with several important missions that include: manage the Department's post-closure responsibilities and ensure the protection of human health and the environment; manage the records of LM's sites and make them accessible for future data needs; ensure the pension and post retirement benefit commitments for contractor personnel at closed sites are satisified; and, where possible, facilitate beneficial reuse of closed sites. LM ensures the effective and efficient management of our nation's legacy activities for former nuclear weapons production sites throughout the country.

Evidence: ?? Long-term Surveillance and Maintenance Site Plans ?? Annual Site Inspection and Monitoring Report for Uranium Mill Tailings Radiation Control Act Title I Disposal Sites ?? Annual Site Inspection and Monitoring Report for Uranium Mill Tailings Radiation Control Act Title II Disposal Sites ?? Annual Report to Congress on Work Force Restructuring ?? Aon Consulting Cost Estimate Reports

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

Explanation: DOE is legally responsible for long-term surveillance and maintenance, pension and benefits administration, and records and real property management at sites that have been closed and no longer support the Department's ongoing national security, energy and science missions. LM is the Federal program tasked with ensuring that DOE meets these legal obligations.

Evidence: ?? Department of Energy Strategic Plan ?? Office of Legacy Management Strategic Plan ?? Office of Legacy Management High Performing Organization Report ?? Buck Consultants Report, Analysis of Health and Welfare Benefit Program at Environmental Management Closure Sites, September 25, 2000

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

Explanation: The nature of the Office of Legacy Management's (LM) work, long-term surveillance and maintenance activities, records and real property management, and delivery of post-closure pension and benefits compensation and work force restructuring is dictated by Federal and state laws and regulations. LM's program design was developed and implemented to comply with these legal requirements. LM has taken proactive steps to ensure that its management and organizational structure optimize the program's design. Using the Most Efficient Organization approach and model authorized by the Office of Management and Budget (OMB), LM has taken steps to streamline the organization, allowing it to better meet programmatic objectives and performance goals. Additionally, an extensive management controls review was conducted, which established a system to ensure that resources are used to achieve intended program results.

Evidence: ?? Office of Legacy Management High Performing Organization Report ?? OMB, Office of Federal Procurement Policy, February 13, 2007, letter designating DOE Office of Legacy Management as a High Performing Organization ?? Office of Legacy Management, Management Control Program Manager's Guide ?? Office of Legacy Management, Annual Management Control Self-Assessment

Is the program design effectively targeted so that resources will address the program's purpose directly and will reach intended beneficiaries?

Explanation: The Office of Legacy Management (LM) has a focused multi-year planning process and prepares plans in accordance with the DOE's requirements-based planning and budgeting process. As a part of the multi-year planning process, LM develops life-cycle baselines to estimate the scope and cost to meet its legal and regulatory requirements for future years, ensuring that all planned and expended resources address the program's mission. In the area of post-closure pension and benefits, LM is following an interim course of action which will ensure no interruption in the payment of benefits to retirees of DOE closure sites. Appropriate internal controls have been developed to assure that funding for contractor benefits and work force restructuring activities are used for eligible employees and programs only.

Evidence: ?? Office of Legacy Management High Performing Organization Report ?? OMB, Office of Federal Procurement Policy, February 13, 2007 letter designating DOE Office of Legacy Management as a High Performing Organization

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 Office of Legacy Management (LM) has four mission goals: ?? Protect human health and the environment through effective and efficient long-term surveillance and maintenance; ?? Preserve, protect, and make accessible legacy records and information; ?? Support an effective and efficient work force structured to accomplish departmental missions and assure contractor worker pension and medical benefits; and ?? Manage legacy land and assets, emphasizing protective real and personal property reuse and disposition. To meet these goals, LM has established long-term outcome and efficiency performance measures, which tie directly to the LM Strategic Plan.

Evidence: ?? Office of Legacy Management Strategic Plan ?? Office of Legacy Management PART Performance Measures Implementation Plans ?? Office of Legacy Management High Performing Organization Report

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

Explanation: The Department of Energy's (DOE) Office of Legacy Management (LM) has specific quantified targets and timeframes that are in support of the program's long-term performance measures. These ambitious targets are measured against established LM baselines and utilized as indicators for tracking program performance in association with LM's goals and long-term measures.

Evidence: ?? Office of Legacy Management Master Integrated Schedule ?? Office of Legacy Management Life-Cycle Baselines ?? Office of Legacy Management PART Performance Measures Implementation Plans

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: LM has established annual outcome and efficiency performance measures. These annual performance measures indicate progress toward achieving the goals of the program's strategic plan.

Evidence: ?? Office of Legacy Management Strategic Plan ?? Office of Legacy Management life-cycle baselines ?? Office of Legacy Management Master Integrated Schedule ?? Office of Legacy Management Internal President's Management Agenda (PMA) Scorecard ?? Office of Legacy Management PART Performance Measures Implementation Plans

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

Explanation: The Department of Energy's (DOE) Office of Legacy Management's (LM) life-cycle baselines are developed through a series of documents and/or databases that use a rolling planning approach, i.e., near-term work is defined in greater detail than the outyears. These documents describe the program scope, the schedule for completion of the scope, and the basis of estimate to determine the cost estimate. Additionally, a risk management process is utilized to help assess and mitigate potential risk to the program. Ambitious targets in support of LM's annual measures have been established. These targets are reviewed on a quarterly basis to ensure the program is on track to meet its goals and annual measures.

Evidence: ?? Office of Legacy Management Strategic Plan ?? Office of Legacy Management life-cycle baseline estimates and documentation ?? Office of Legacy Management Master Integrated Schedule ?? Office of Legacy Management Monthly and Quarterly Reviews ?? Office of Legacy Management PART Performance Measures Implementation Plans

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 of Energy's (DOE) Office of Legacy Management (LM) ensures that private partners support and are committed to accomplishment of the program's annual and long-term goals. Specifically, LM partners with contractors to deliver the most cost-effective services. LM's current prime contract is a performance-based technical assistance contract (TAC) with "no award fee" for satisfactory performance. The contract includes schedules, deliverables, and performance criteria that fee is awarded based on meeting the performance measures. These performance measures link directly to LM's business lines and performance metrics. The prime contractor has disseminated LM's goals and performance measures throughout the organization and incorporated them into the performance objectives of their staff. The program ensures, through monthly and quarterly updates, that its contractors support LM's program planning efforts and that contract requirements and deliverables are directly aligned to the program's annual and long-term goals. LM partnerships also include government entities. Within DOE, LM partners with the Office of Environmental Management, the Office of the Chief Information Officer, the General Counsel, and the Office of Health, Safety, and Security. Additionally, LM partners with other Federal agencies such as the Department of Labor, Internal Revenue Service, the Environmental Protection Agency, the General Services Administration, the U.S. Army Corps of Engineers, and the National Archives and Records Administration. LM also relies on State and tribal partnership. However, these formal and informal relationships have not included collaboration in the development of or the communication of the progam's goals. Additionally, LM's Program Summary Work Breakdown Structure (PSWBS) is a tool that helps to ensure, among other things, that LM partnerships meet programmatic requirements and are planned, executed, controlled, statused, reported, and evaluated on a monthly and quarterly basis. However, the PSWBS has only been distributed within the LM organization, which does not provide for partner commitment to program goals.

Evidence: ?? LM Program Summary Work Breakdown Structure (PSWBS) ?? Technical Assistance Contract bi-annual performance evaluation criteria and performance evaluation reports ?? LM Contracts or negotiated Contractual Modifications ?? LM Contractor Work Orders ?? LM "partners" contractual agreements, reviews, and reports ?? LM prime contractor's report, Stoller Team Report for Initiatives in Support of the Continuous Improvement Program, Cost Savings, and Legacy Management Goals ?? General Services Administration and Department of Energy Memorandum of Understanding ?? U.S. Army Corps of Engineers and Department of Energy Memorandum of Understanding ?? Agreements with State and local governments ?? Agreements with Tribal governments

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: Stand-up of the Office of Legacy Management in December 2003 was a result of evaluations conducted in association with Departmental program improvements. Various portions of the LM program are regularly evaluated by independent entities, such as the U.S. Environmental Protection Agency (EPA), Nuclear Regulatory Commission (NRC), state regulators, and state health agencies, in association with LM's long-term surveillance and maintenance activities. Evaluations on specific LM sites and activities are periodically performed by private entities, such as the Consortium for Risk Evaluation and Stakeholder Participation (CRESP). Recently, the Office of the Inspector General (IG) conducted an audit of the Department's efforts to identify a solution to the issue of the delivery system of benefits to retirees at the closure sites. The results of the audit were documented in a memorandum to the Deputy Secretary on June 20, 2005. Additionally, LM expects that there will be independent evaluations conducted by outside entities (actuarial consultants, the General Accountability Office, and the Office of the Inspector General (IG)) on the pensions and post-retirement benefits area. The archives and information management area has also received assistance from National Archives and Records Administration (NARA) in determination of records collection. The Department of Labor is utilizing LM's electronic finding aides in their efforts to access records and data for a complex-wide site exposure matrix. The LM program is also part of the scope of a comprehensive evaluation of the organization and management of the Environmental Management program, which is being performed by the National Academy of Public Administration. It is also worthy to note that during FY 2005 and FY 2006, LM undertook an intensive, systematic, and thorough self-evaluation of its organization, mission, and management systems. An external, independent A-76 expert was contracted to evaluate the data, provide a staffing analysis, and benchmark the cost of LM's functions against costs of similar functions in the private sector. The evaluation revealed a number of issues and resulted in a formal plan to develop the office into a High Performing Organization (HPO) under draft criteria developed by the Office of Management and Budget. These organizational improvements are having a positive impact on the programmatic mission and have resulted in LM receiving HPO designation from OMB.

Evidence: ?? Office of Legacy Management High Performing Organization Report ?? OMB, Office of Federal Procurement Policy, February 13, 2007 letter designating DOE Office of Legacy Management as a High Performing Organization ?? Letter of Intent for Amchitka Island, June 2002 (CRESP) ?? Office of Inspector General memorandum of June 20, 2005, Contractor Pension and Medical Benefits at Environmental Closure Sites

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 Department of Energy's (DOE) Office of Legacy Management (LM) Congressional Budget submissions are performance-based and link the funding request to the DOE and the LM Strategic Plans. LM develops and maintains life-cycle baselines, which provide key scope, schedule, cost, and performance parameters necessary to achieve annual performance measures. These baselines are defined at the site and/or functional area level and costs are collected at those levels for performance comparison. The baselines include the comprehensive costs associated with performance of the mission. Resource trade-offs are evaluated based on their impact on the goals and targets. These trade-off discussions are used to develop the budget request, allowing resource needs to be presented in a clear and transparent manner. Additionally, LM is developing a budget planning, management, reporting system that will tie together LM's financial management efforts for execution and formulation. Implementation of this system is planned for FY 2008. LM's Program Summary Work Breakdown Structure (PSWBS) will also assist with facilitating the integration of the LM mission, goals, performance measures, and budget process.

Evidence: ?? LM Goals and PART Performance Measures ?? LM Program Summary Work Breakdown Structure (PSWBS) ?? LM Life-Cycle Baselines ?? Aon Consulting Cost Estimate Reports ?? Congressional Budgets

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

Explanation: The Department of Energy's (DOE) Office of Legacy Management (LM) Strategic Plan demonstrates the DOE's vision and commitment to manage legacy responsibilities effectively and efficiently. During FY 2007, LM revised its Strategic Plan to reflect the Department's most recent Strategic Plan, to further explain LM's responsibilities, and to outline a comprehensive management plan extending out to the year 2020 for all legacy issues. LM's Strategic Plan contains long-term performance goals with strategies and success indicators that measure LM's ability to meet the objectives necessary to achieve the LM mission.

Evidence: ?? LM Strategic Plan (Draft) ?? LM High Performing Organization Report ?? Office of Legacy Management PART Performance Measures Implementation Plans

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: The Department of Energy's (DOE) Office of Legacy Management (LM) conducts monthly and quarterly performance status reviews to assess progress and to ensure the program is on track to meet its milestones. Progress on performance is reported quarterly by LM management and areas showing potential lag in performance are highlighted and appropriate action is taken to adjust program priorities, allocate resources, or take other appropriate management actions. LM collects actual costs through DOE's Standard Accounting and Reporting System and compares actual costs against planned expenditures. LM also collects information from its federal and private partners and uses this information to manage the program and ensure improved performance. LM's prime contract is a performance-based technical assistance contract (TAC) and is assessed every six months based on performance against the cost-plus award fee performance evaluation criteria. The prime contractor is required to provide earned value performance data to LM in accordance with contract requirements, which LM utilizes to ensure that satisfactory progress is being made and to better manage the program. During 2005, LM used an independent contractor to obtain candid, direct feedback from LM stakeholders on the value and quality of the products and services provided by LM. For the most part, the feedback was positive; areas for improvement were identified and addressed in LM's HPO Report. The contractor conducted more than 40 interviews with stakeholders (both local and national). LM has subsequently used the data to reorganize into a High Performing Organization.

Evidence: ?? LM Monthly and Quarterly Reviews ?? Bi-annual Cost-Plus-Award-Fee evaluation reports ?? Contractor monthly and/or quarterly Earned Value Management System status reports ?? Office of Legacy Management High Performing Organization Report ?? OMB, Office of Federal Procurement Policy, February 13, 2007 letter designating DOE Office of Legacy Management as a High Performing Organization ?? LM Outlook Tracking System Reports ?? LM 30-60-90 Day Reports ?? LM Weekly Reports ?? LM Budget Execution reports ?? DOE Consolidated Quarterly Performance Report (CQPR)

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: The Department of Energy's (DOE) Office of Legacy Management's (LM) Performance Management system for Senior Managers, Team Leaders, and employees is structured to hold individuals accountable, as appropriate to the responsibility and authority levels defined in their positions, for cost, schedule, and performance results. LM manager's Performance Plans include performance measures directly related to the LM Strategic Plan and other planning documents. Staff performance measures are designed to flow down from the Manager's Performance Plans. LM senior management staff conduct quarterly, in-depth reviews of cost, schedule, and scope to ensure projects are on-track and within budget. Additionally, LM contractors are required to produce contract deliverables that identify progress and are held accountable for progress. Contract performance is regularly monitored to satisfy Award Fee Criteria. LM's prime contract is a performance-based technical assistance contract (TAC) and performance is assessed based on the performance regarding the cost-plus-award-fee performance evaluation criteria. The TAC also utilizes an earned value management system for cost, schedule, and performance management. LM conducts monthly and quarterly contractor performance status reviews on mission activities. LM assesses its other partner's performance via quarterly reporting data and periodic meetings.

Evidence: ?? LM Strategic Plan (Draft) ?? LM Manager's Performance Appraisal guidance ?? LM Quarterly Reviews ?? DOE Consolidated Quarterly Performance Report ?? Contractor monthly and/or quarterly Earned Value Management System status reports ?? TAC contract files for performance and CPAF evaluation reports ?? Federal personnel performance plan files

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

Explanation: The Department of Energy's (DOE) Office of Legacy Management's (LM) Annual Budget Execution Plans are established at the beginning of each fiscal year and incorporate scheduled obligations and measures for indicating accomplishment. Program managers are required to monitor the progress of their projects and the obligation and costing of program funds. Management reviews are conducted at least quarterly to evaluate the programs' financial management status. If necessary, program managers address issues and take corrective action to realign funding as appropriate. Funds not obligated by the end of the fiscal year are typically the result of unanticipated program changes or changes in programmatic assumptions or planning. Financial Management staff review all planned obligations to ensure funding is spent for its intended purpose. LM relies on the Energy Finance and Accounting Service Center (EFASC) to enter obligations into the Standard Accounting and Reporting System (STARS); LM Financial Management staff review STARS obligations and work with EFASC to correct issues as necessary. Additionally, LM's audit plan ensures funds are expended for their intended purpose even after they have been obligated. The Contracting Officer and Technical Representatives review vendor invoices to ensure costs are appropriate. LM relies on EFASC to enter actual costs and payments into STARS, and LM Financial Management staff reviews the data for accuracy.

Evidence: ?? LM program guidance ?? Budget Execution Plans ?? Monthly Obligation and Cost and Performance Reports ?? Periodic Management Reviews ?? Approved Funding Plans and Work Authorizations ?? Official contract documentation ?? Federal Procurement Data System-Next Generation (FPDS-NG) Reports ?? Procurement Assistance Data System (PADS) Reports

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: The Department of Energy's (DOE) Office of Legacy Management (LM) follows all DOE and Federal requirements, policy and guidelines for competitive sourcing/contracting. During FY 2005 and FY 2006, LM undertook an intensive, systematic, and thorough self-evaluation of its organization, mission, business processes, and management systems. An external, independent A-76 expert was contracted to evaluate the data, provide a staffing analysis, and benchmark the cost of LM's functions against costs of similar functions in the private sector. The consultant utilized OMB's COMPARE model as part of the evaluation. The evaluation revealed a number of issues and resulted in a formal plan to develop the office into a High Performing Organization (HPO) under draft criteria developed by the Office of Management and Budget. LM received HPO designation from OMB on February 13, 2007. LM uses performance-based contracts to establish more focused performance incentives. It has a Cost-Plus-Award-Fee (CPAF) contract with its prime contractor. This contracting mechanism provides incentives toward achieving program progress. LM utilizes a prime contractor to accomplish mission activities via the annual task order process. LM staff develops the scope of work and requests the technical assistance contractor's (TAC) proposed plan and resource estimate to achieve the scope of work. LM evaluates and negotiates the TAC's proposed plan to ensure cost effectiveness and efficiency in the accomplishment of the work. During FY 2007, LM is pursuing a performance-based acquisition strategy (which will replace the expiring technical assistance contract) to consolidate the primary support functions and align the contractor's performance incentives with the Federal performance goals. Additionally, LM's archives and information management activities are evaluated by DOE's Office of the Chief Information Officer quarterly using the President's Management Agenda (PMA) E-Government Initiative.

Evidence: ?? LM High Performing Organization Report ?? OMB, Office of Federal Procurement Policy, February 13, 2007, letter designating DOE Office of Legacy Management as a High Performing Organization ?? LM Life-Cycle Baselines ?? LM efficiency performance measures with supporting baselines and targets ?? Contractor earned value management system reports ?? Technical Assistance Contract (TAC) contract files for performance and CPAF evaluation reports ?? Request For Proposal RP01-06LM00060, Support Services for the Office of Legacy Management ?? DOE OCIO E-Government Scorecard

Does the program collaborate and coordinate effectively with related programs?

Explanation: The Department of Energy's (DOE) Office of Legacy Management (LM) collaborates and coordinates with other DOE programs to ensure effective management of the Department's Legacy activities. These programs include the Office of the Chief Information Officer, Office of Environmental Management (EM), Office of General Counsel (GC), Office of Management (MA), and the Office of Health, Safety, and Security (HS). LM works closely with these programs in various areas, including: site transition, records management, systems development, enterprise architecture, information management and information technology (IT) purchases, and pension and benefits policy. LM regularly interacts with EM on the transfer and status of EM closure sites, with EH and the U.S. Department of Labor to support the Energy Employees Occupational Illness Compensation Program Act (EEOICPA) requirements, and with GC and MA to ensure effective management, oversight and development of policy in the pension and benefit programmatic area. LM also meets regularly with Private Licensees (Title II Sites) and other LM "partners" regarding the planned transition of sites to LM. In addition, LM works with other Federal agencies, such as the General Services Administration, to dispose of Departmental excess lands, and in the Labor Standards area LM collaborates with the U.S. Department of Labor.

Evidence: ?? EM/LM Site Transition Plans ?? Quarterly Site Transition Status Reports ?? Internal emails, memorandums, documentation of conference calls, etc. ?? DOE Order 350.1, Contractor Human Resource Management Program (documents program coordination requirements)

Does the program use strong financial management practices?

Explanation: The Office of Legacy Management's (LM) internal financial management practices are strong and have placed emphasis on improving the efficiency of financial management for the program. LM programs are executed in accordance with DOE's accounting policies and practices that have been reviewed by external groups and modified as required to reflect the latest government standards. Management (internal) controls are considered an important facet of executing LM programs. LM has developed and implemented a Management Control Plan which controls operations and mitigates risks. LM is on schedule with the Department's plan to implement the revision to OMB Circular A-123 that focuses on control over financial reporting, emphasizes accountability of management, and ensures reliable financial information. LM follows prescribed DOE-wide financial management and accounting policies, procedures, and controls that meet all statutory requirements. Annual Budget Plans and internal funds control processes are consistently used to verify funds availability prior to obligation. Obligations and costs for all programs are reviewed and reported on a monthly basis to assess progress in executing approved budgets and to ensure financial resources contribute to the accomplishment of program goals. Budget execution information is used to assess the validity of assumptions used to develop budget estimates, determine future funding requirements, and to improve program performance. LM financial, performance, and administrative data will be fully integrated as DOE implements the I-MANAGE system in support of the President's Management Agenda.

Evidence: ?? Annual Federal Manager's Financial Integrity Act Assurance memo ?? LM Management Control Plan ?? OMB Circular A-123 Program Office Implementation Plan and Status Reports ?? Budget execution plans, monthly execution status reports, and monthly/quarterly meetings with managers ?? Standard Acccounting and Reporting System/Integrated Data Warehouse Reports ?? Various Departmental financial manuals ?? Audit reports and DOE Financial Management Orders ?? LM Internal President's Management Agenda (PMA) Scorecard ?? DOE Performance and Accountability Report

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

Explanation: During FY 2005 and FY 2006, the Office of Legacy Management (LM) undertook an intensive, systematic, and thorough self-evaluation of its organization, mission, and management systems. The evaluation revealed a number of issues and resulted in a formal plan to develop LM into a High Performing Organization (HPO) under criteria developed by the Office of Management and Budget (OMB). LM received HPO designation from OMB on February 13, 2007. To date, LM has reorganized to reduce the number of supervisory levels, has reduced Federal staffing levels by 28%, and has reduced travel cost by over 30%. LM will continue to monitor its management controls and practices through monthly and quarterly reviews. This review process will help to provide assurance that management control practices and procedures are in place and effective.

Evidence: ?? LM High Performing Organization Report ?? OMB, Office of Federal Procurement Policy, February 13, 2007 letter designating DOE Office of Legacy Management as a High Performing Organization ?? LM Management Control Plan ?? LM Annual Management Control Self-Assessment

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

Explanation: Data on LM's performance demonstrate LM's progress toward achieving long-term goals. For example, the long-term surveillance and maintenance (LTS&M) area has experienced savings and efficiencies through the implementation of science, technology, and innovative initiatives. LTS&M continues to identify opportunities to reduce costs through efficiencies in the sampling and monitoring of sites along with improvement actions associated with inspections and maintenance costs. The archives and information management area has, and continues to, experience savings associated with transitioning records needed by LM for site post-closure stewardship activities while ensuring LM access to records being processed for storage at the Federal Records Centers. The pensions and benefits area has experienced a reduction in administrative costs on a smaller benefits contract and will be pursuing reduction in those types of costs associated with the larger closure sites benefits contracts. For the reuse and property management area, LM has examples of where it is successfully using partnerships and reuse opportunities in support of conservation, community, and industrial uses. LM's performance against past years measures (reported in DOE's Joule system) demonstrates LM's goal to ensure the future protection of human health and the environment along with improving program effectiveness through sound management by reducing program direction expenditures associated with administering LM program activities. LM's prime contractor performance objectives link directly to LM's goals. The contractor has implemented a Continuous Improvement Program that provides an avenue for staff to identify opportunities to reduce costs through efficiencies, improvement actions, alternative technologies, and new ideas. The implemented initiatives, and their resultant cost savings, are reported periodically to DOE-LM. For FY 2006, reported savings were approximately $1.4 million for the LM program. Some of these implemented savings will continue into future years.

Evidence: ?? DOE Joule system performance measures for LM ?? DOE Performance and Accountability Report ?? LM PART Performance Measures Implementation Plans ?? LM Real Property Reuse Plan, Draft March 2007 ?? LM prime contractor's report, Stoller Team Report for Initiatives in Support of the Continuous Improvement Program, Cost Savings, and Legacy Management Goals

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

Explanation: Data on LM's performance demonstrates LM is achieving its annual goals. For example, when comparing the FY 2004 prime contractor and other partners' budget baseline data against end of FY 2004 actual costs, an 11% savings (actual costs vs. budget baseline) was realized. In FY 2005, this cost savings was approximately 12%. These savings were associated with the LM program's activities of long-term surveillance and maintenance, archives and information management, real property management, and business operations. Additionally, LM partners are committed to annual targets and achieving them. LM's prime contract is a performance-based contract with "no award fee" for satisfactory performance. The contract includes schedules, deliverables, and performance criteria. Fee is awarded based on meeting the performance measures stated in the criteria. The prime contractor has received ratings of Good in support of meeting LM's annual measures through the past four years. LM also evaluates the contractor's earned value management system data to ensure that performance of cost and schedule is in line with LM's annual performance goals. The contractor has implemented a Continuous Improvement Program that provides an avenue for staff to identify opportunities to reduce costs through efficiencies, improvement actions, alternative technologies, and new ideas. The implemented initiatives, and their resultant cost savings, are reported periodically to DOE-LM. For FY 2006, reported savings were approximately $1.4 million for the LM program.

Evidence: ?? FY 2004 and FY 2005 budget baselines and actual costs ?? LM contractor's Earned Value Management System Reports ?? LM contractor's bi-annual Award Fee Performance Evaluation Reports ?? LM PART Performance Measures Implementation Plans ?? LM Real Property Reuse Plan, Draft March 2007 ?? LM prime contractor's report, Stoller Team Report for Initiatives in Support of the Continuous Improvement Program, Cost Savings, and Legacy Management Goals ?? LM Internal President's Management Agenda (PMA) Scorecard ?? DOE Consolidated Quarterly Performance Report ?? DOE Performance and Accountability Report

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

Explanation: LM is currently demonstrating improved efficiencies or cost effectiveness in achieving program goals as demonstrated by being designated a High Performing Organization (HPO). In the coming years, LM's mission significantly increases, while its level of FTEs and Program Direction costs decrease and/or stabilize. In FY 2006, based on LM's reorganization into a High Performing Organization, a $1.5 million cost savings in Program Direction was achieved. Anticipated savings in FY 2007 are $3 million, while the estimated five-year savings totals $15 million. As LM continues activities associated with being a High Performing Organization, the program will achieve its goals with a lower programmatic overhead cost. LM's prime contractor performance objectives link directly to LM's goals. The contractor has implemented a Continuous Improvement Program that provides an avenue for staff to identify opportunities to reduce costs through efficiencies, improvement actions, alternative technologies, and new ideas. The implemented initiatives, and their resultant cost savings, are reported periodically to DOE-LM. For FY 2006, reported savings were approximately $1.4 million for the LM program.

Evidence: ?? LM High Performing Organization Report ?? OMB, Office of Federal Procurement Policy, February 13, 2007, letter designating DOE Office of Legacy Management as a High Performing Organization ?? Status of LM efficiency measures ?? LM PART Performance Measures Implementation Plans ?? LM Real Property Reuse Plan, Draft March 2007 ?? LM prime contractor's report, Stoller Team Report for Initiatives in Support of the Continuous Improvement Program, Cost Savings, and Legacy Management Goals ?? DOE Consolidated Quarterly Performance Report ?? DOE Performance and Accountability Report

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

Explanation: The Department of Energy's (DOE) Office of Legacy Management (LM) mission does not have a comparable Federal, state, local government, or private sector program. There is no other program with the wide range of activities that LM conducts. These activities include: environmental surveillance and maintenance, records and real property management, and pension and benefits administration. Furthermore, LM has the legal obligation to provide oversight of the sponsorship and administration of pension and benefits for the Department of Energy's (DOE) closure site contractor employees, which is unique to DOE. In most agencies with a contractor work force, the government does not have any involvement in contractor employee benefits other than the payment of allowable costs during the contract term. However, because of DOE's mission, as it related to the Cold War and the need to attract and retain the skills needed to help win the Cold War, DOE had an active role in contractor benefits.

Evidence: ?? LM High Performing Organization Report ?? LM Strategic Plan

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

Explanation: Various portions of the LM program are regularly evaluated by independent entities, such as the U.S. Environmental Protection Agency (EPA), Nuclear Regulatory Commission (NRC), state regulators, and state health agencies, in association with LM's long-term surveillance and maintenance activities. These reviews provide validation that LM's processes and performance are effective and achieving results in association with the overall mission to manage the Department's post-closure environmental responsibilities and ensure the protection of human health and the environment. Another indicator of LM's effectiveness is associated with the High Performing Organization (HPO) efforts conducted during FY 2005 and FY 2006. A third party conducted an independent evaluation of the program's effectiveness and structure. The study found that overall LM was effective; however, areas identified for improved efficiencies and cost savings through redesign of established business practices included contract administration, travel practices, and human resources. LM is currently implementing these suggested changes, which have been documented in LM's High Performing Organization Report and for which LM has received HPO designation from OMB.

Evidence: ?? LM High Performing Organization Report ?? OMB, Office of Federal Procurement Policy, February 13, 2007 letter designating DOE Office of Legacy Management as a High Performing Organization ?? Long-Term Surveillance and Maintenance Site Plans ?? Annual Site Inspection and Monitoring Report for UMTRCA Title II Disposal Sites ?? Annual Site Inspection and Monitoring Report for UMTRCA Title I Disposal Sites ?? Monticello Site Annual Inspection Report ?? Weldon Spring Site Annual Inspection Report