OFFICE OF

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Best Practices in Managing Project Closeout

Kurt FisherOffice of Project Assessment 

Office of Science, U.S. Department of Energyhttp://www.science.doe.gov/opa/

OFFICE OF

SCIENCEAgenda

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• Office of Science Overview • DOE Project Overview• Project Closeout 

Office of Science Closeout Process Key Performance Parameters Readiness Review  Transition to Operations Project Closeout Independent Project Review Hazard Assessment Report Project Closeout Report Lessons Learned Document

• Open Discussion / High – Low Closeout Exercisehttp://www.science.doe.gov/opa/

OFFICE OF

SCIENCE

Chicago Office

Roxanne Purucker

Office of the Director (SC-1)Patricia M. Dehmer (A)

Advanced ScientificComp. Research (SC-21)

J. S. Binkley

Workforce Development for Teachers/

Scientists (SC-27)

P. DehmerBasic Energy

Sciences (SC-22)Harriet Kung

Fusion EnergySciences (SC-24)

Edmund Synakowski

High EnergyPhysics (SC-25)James Siegrist

Biological & Environ. Research (SC-23)

Sharlene Weatherwax

Nuclear Physics(SC-26)

Timothy Hallman (A) Acting

04/2015

Deputy Directorfor Science Programs (SC-2)

Patricia M. Dehmer

Deputy Directorfor Resource Management (SC-4)

Jeffrey Salmon

Deputy Directorfor Field Operations (SC-3)

Joseph McBrearty

Office of Project

Assessment (SC-28)

Stephen W. Meador

Office of Budget (SC-41)

Kathleen Klausing

Office of Scientific and Tech. Info. (SC-44)

Brian Hitson

Office of SC Program Direction (SC-46)Daniel Division

Office of Grants/ Cont. Support (SC-43)Linda Shariati

Office of Information

Technology and Services (SC-45)

V. Kountouris

SC Communications & Public Affairs

(SC-47)Rick Borchett

Ames SOCynthia Baebler

Thomas Jeff. SOJoe Arango

Stanford SOPaul Golan

Pacific NWest SORoger Snyder

Princeton SOFrank Crescenzo (A)

Oak Ridge SOJohnny Moore

Fermi SOMichael Weis

Brookhaven SOFrank Crescenzo

Berkeley SOPaul Golan (A)

Argonne SOJoanna Livengood

SCIntegratedSupportCenter

Office of Safety and Security Policy

(SC-31)Matthew

D. Carroll

Office of Laboratory

Policy(SC-32)S. Jones

(A)

Human Resources & Admin.(SC-48)

Waltrunette Gardner

Small BusinessInnovationResearch(SC-29)

Manny Oliver

Oak Ridge Office

Kevin Hall

Office of Operations Program

Management(SC-33)Stephen

Trischman

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SC Organization

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Project Process—Standard Scenario

CriticalDecisions

DefinitionInitiation Execution Closeout

Operating* Funds

Operating Funds

PEDFunds

Construction & PEDFunds

Conceptual Design

Preliminary Design

Final Design

Construction

CD-1Approve

Alternative Selectionand Cost Range

CD-4ApproveStart of

Operations or Project

Completion

CD-3Approve Start of

Construction or Execution

CD-2Approve

Performance Baseline (PB)

CD-0Approve Mission Need

• CD‐0, Approve Mission Need. There is a need that cannot be met through other than material means;

• CD‐1, Approve Alternative Selection and Cost Range. The selected alternative and approach is the optimum solution; 

• CD‐2, Approve Performance Baseline. Definitive scope, schedule and cost baselines have been developed; 

• CD‐3, Approve Start of Construction/Execution. The project is ready for implementation; and 

• CD‐4, Approve Start of Operations or Project Completion. The project is ready for turnover or transition to operations, if applicable. 

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Project Closeout

What is project closeout ?

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Project Closeout

Project Closeout is the last phase in the project lifecycle.   Closeout begins when the program concludes through completion of Key Performance Parameters (KPPs) that the project has met the goals established. 

CriticalDecisions

DefinitionInitiation Execution Closeout

Operating* Funds

Operating Funds

PEDFunds

Construction & PEDFunds

Conceptual Design

Preliminary Design

Final Design

Construction

CD-1Approve

Alternative Selectionand Cost Range

CD-4ApproveStart of

Operations or Project

Completion

CD-3Approve Start of

Construction or Execution

CD-2Approve

Performance Baseline (PB)

CD-0Approve Mission Need

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Project Closeout

Project closeout phases include: 

• Physical Closeout / Technical Closeout – Demonstration that the project has met its completion criteria.

• Administrative Closeout – Ensuring that all project documentation has been approved and is in place.

• Financial Closeout – Contract Closeout and closure of all financial packages. 

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Project Closeout

Roles and Perspectives on Project Closeout

• Project Execution / Contractor – Focus on demonstration of project completion, turnover of project deliverables.

• Program – Focus on ensuring that facilities / instruments meet the intended requirements within budget, and that necessary resources are available for operations.

• Operations – Focus on ensuring that the project has met the operational requirements, and resources are available. Also will receive the deliverables ( i.e. spares, O&M manuals, as-built drawings) for use in operations.

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SC CD-4Requirements

Verify Achievement of Key Performance

Parameters/Project Completion Criteria

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Key PerformanceParameters (KPPs)

• A KPP is defined in DOE Order 413.3B as, “A vital function, requirement or design basis, that if changed, would have a major impact on the facility or system performance.”

• KPPs are defined in the Project Execution Plan (PEP) during the project’s definition and execution phases.  

• The validation of  the  KPPs is a key activity for demonstrating that the project has met DOE mission requirements. 

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KPPs

Example : Technical Project—The project, located at xxx lab, designed, constructed, tested, and commissioned an xxx facility.   The project was declared complete and the following was achieved:

Facility has completed construction of the XX building and is ready for occupancy Ion source is accelerated up to a minimum energy of xxx MeV peak for xx seconds Calculations have shown that xxx has been achieved.  Four experimental facilities installed without beams.

Description of Scope

CD-2 Threshold KPP

CD-2 Objective KPP

Facility Size 175,000 SF 200,000 SF

Brightness 8 KeV 8 KeV

Spatial Resolution 1 nm 1 nm

Energy Resolution 0.1 meV 0.1 meV

Experimental Facilities 2 3

KPP Achieved at CD-4

CD-2 Threshold KPP Met or Exceeded?

200,000 SF Exceeded

8 KeV Met

1 nm Met

0.1 meV Met

3 Exceeded

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SC CD-4Requirements

Conduct Readiness to Operate Review and

Issue Project Transition to Operations Plan

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Readiness Reviews

Conduct a Readiness to Operate Review, dependent on the nature of the project undertaken.  This could take the form of all or any of the following: 

• Beneficial Occupancy Review    • Accelerator Readiness Review  (ARR)• Instrument Readiness Review (IRR)

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Transition toOperations Plan

Project Transition to Operations Plan should include activities such as: 

• development of operations and maintenance manuals,• generation of as‐built drawings, • identification of operations budget, and • the procurement of any materials required for initial 

operations.  

Planning should include the operating organization, who will operate the facility or accept the final product.

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SC CD-4Requirements

Conduct Independent Project Review

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Project Closeout—Independent Project Review

• The Office of Science conducts an Independent Project Review or Peer Review to ensure that the KPPs have been fully validated and met.

• The IPR also functions as an opportunity to ensure that the administrative / initial financial portion of the closeout is proceeding toward turnover.  Some basic questions……….

Have the KPPs been fully satisfied? Are only the necessary control accounts open?  Is the proper project documentation in place?    Have all project liabilities been identified?

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SC CD-4Requirements

Finalize the Hazard Analysis Report

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Hazard Analysis Report

Finalize the Hazard Analysis Report (HAR) (as appropriate)

• The preliminary HAR (PHAR) should be updated to include all current safety / hazard conditions and should be finalized and submitted for approval.

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SC CD-4Requirements

Complete DraftProject Closeout Report

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Project Closeout Report

The PCR provides documentation of the overall project performance, and the closure status of the project, contracts,  and fiscal condition.  

• SC requires that a Draft PCR be developed prior to the CD‐4 Independent Project Review. 

• The Initial PCR should be submitted within 90 days after CD‐4 approval. 

• The Final PCR should be submitted after all project costs are incurred and invoiced, and all contracts are closed.  

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SC CD-4Requirements

Submit Approved CD or Equivalent Documents

to OECMFinalize in PARS IIProject Completion

Perform Final Administrative and Financial Closeout

Prepare an InitialProject Closeout Report

60 days after CD-4

Submit Lessons Learned90 days after CD-4

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Lessons Learned—Facility Start-Up

• Within 90 days from CD‐4, the Federal Project Director should submit a Lesson Learned document that should include project execution and facility startup.

• The lessons learned document should include all phases of the project, the contents  can be contained with the Project Closeout Report  (PCR).

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Closeout ChallengesLessons Learned

• Formulation of KPPs cannot happen too early in the project!!!

• Establishing KPPs that are challenging and effective, but not impacted by international or outside collaborations beyond the project’s control.

• All essential CD‐4 documentation needs to be submitted prior to approval of CD‐4

PCR  Lessons learned  ‐ CD‐4 As‐built Drawings and, O&M manuals

• Site visits are necessary to ensure project completion.

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Closeout ChallengesLessons Learned

• Ensure sufficient funds to cover all project liabilities.

• Be aware of the impacts of tradeoffs made at the end of projects, pushing work over on to operations. 

• Don’t “wish the project better”, experience shows we are overly optimistic in our expectations.

• Again, formulation of KPPs cannot happen too early in the project!!!

• And finally, don’t make Closeout more complicated than it needs to be!

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Closeout “High / Low” Exercise

• The purpose of this exercise is to share real project experiences from project closeout.

• Everyone assemble in groups of three, ideally, this should include members involved in project execution, program management (project sponsor), and facility operations (one of each).

• Each individual is requested to share their one “best” and  one “less than perfect” situation from their perspective, and recognize what made each situation fall into their respective categories.