1. 1 BROOKHAVEN SCIENCE ASSOCIATES Project Performance & Risk Management Aesook Byon, Deputy Project Director NSLS-II PAC Meeting March 29-30, 2012

2. 2 BROOKHAVEN SCIENCE ASSOCIATES Outline Cost, Schedule, & Project Performance Comprehensive EAC Risk Update Conclusions

3. 3 BROOKHAVEN SCIENCE ASSOCIATES Cost Baseline TPC$ 912 M Baseline Cost (Planned work)$ 828 M Contingency $ 84 M Completed work (Feb ‘12) $597M (72% complete) Committed work-to-go$72M Uncommitted work-to-go$159M Remaining work ($231M) Contingency ($84M): 36% of remaining work 53% of uncommitted work-to-go

4. 4 BROOKHAVEN SCIENCE ASSOCIATES Cost Baseline $109M Contingency utilization since CD-2 approval  $33M for additional labor (15% increase from CD-2 Baseline, $225M)  $40M for Materials & Services (8% increase from CD-2 Baseline, $494M)  $36M for scope enhancements/additions Cost performance:12% ($73M/$597M) over baseline plan ($M) WBS CD-2 (Nov ‘07) Dec ‘09 Baseline Last PAC (Dec ‘10) Current Baseline (Feb ‘12) Change since Dec ‘10 1.01 Project Management 52.556.559.863.23.4 1.02 R&D and Conceptual Design 60.6 0 1.03 Accelerator Systems 242.2262.9264.0281.017.0 1.04 Experimental Facilities 72.870.569.971.92.0 1.05 Conventional Facilities 240.8 260.2280.2301.521.3 1.06 Pre-Operations 50.2 0 Grand Totals: 719.0 761.0784.7828.343.7

5. 5 BROOKHAVEN SCIENCE ASSOCIATES Contingency spending history (Mar ‘08 – Feb ‘12) ($K) total (per month)w/o scope addition (per month) 3/08-2/12 $109M ($2.2M)$73M ($1.5M) FY2008 $12M ($1.5M) $5M ($0.6M) FY2009 $17M ($1.4M)$17M ($1.4M) FY2010 $33M ($2.7M)$20M ($1.7M) FY2011 $39M ($3.3M)$23M ($1.9M) FY2012 $7M ($1.4M) $7M ($1.4M) Spending category: labor/space $33M (30%) M&S$40M (37%) scope additions $36M (33%)

6. 6 BROOKHAVEN SCIENCE ASSOCIATES Schedule Float & Critical Path Critical Path: through Accelerator installation & commissioning 35mm Dipole magnet production delivery  girder assembly/installation  Storage Ring commissioning without ID  SR integrated test with ID scope beyond KPP (“schedule contingency”) Commission SR w/o ID June ‘13 – Oct ’13Met KPP for accelerator systems Install ID Nov ‘13 – Dec ’13 Commission SR w/ ID Jan ’14 – Apr ’14 Early Project Completion, June 2014 (Lv 1 Milestone) Currently projected early completion day is April 2014 Baseline Level-1 milestone date with built-in schedule float (~2 months) –“Spent” 7 weeks schedule float over past 33 months (<3% increase) CD-4, Start of Operations, June 2015 14 months after the projected early completion date 6 month extra credit activity

7. 7 BROOKHAVEN SCIENCE ASSOCIATES Sectional commissioning without beam CD-2 Baseline schedule Current baseline Current projection (schedule EAC) Magnet Production & Installation Schedule Met KPP for Accelerator Extra credit activities

8. 8 BROOKHAVEN SCIENCE ASSOCIATES Cost, Schedule & % completion Overall project : 72% complete as of Feb ‘12 with CPI = 1.01 & SPI = 0.96 Impressive amount of work ($238M) completed since last PAC meeting was 46% complete at Jan 2011 and now 72% at Feb 2012 (w/ additional LOB’s & other scope additions) We are maintaining our momentum into 2012 Expect to complete ~90% of current baseline by January 2013

9. 9 BROOKHAVEN SCIENCE ASSOCIATES CPI = 1.01 SPI = 0.96 We are now near the shoulder

10. 10 BROOKHAVEN SCIENCE ASSOCIATES Monthly Burn Rate Apr 2013 ($M) Cumulative ($M) Monthly

11. 11 BROOKHAVEN SCIENCE ASSOCIATES Estimate at Completion (EAC) General Principles Aggressively pursue accurate EAC information as a management tool Estimates that are good projections (~50%<probability<~90%) but still can be managed Managing to the baseline. Contingency spending is not a routine solution 2011 Annual comprehensive assessment conducted over Sep – Dec ’11 Review of all activities through project completion date, especially labor estimate Bottom line: EAC was $24.4M over BAC (~$13M for Accelerator Systems) $13.4MM&S $7.7MTEC labor(~31 FTE-year) $3.3MOPC labor(~13 FTE-year) Risk was $30M, including $12.2M for additional labor $17.8MM&S $5.5MTEC labor(~22 FTE-year) $6.7MOPC labor(~27 FTE-year) 44 FTE EAC $24.4M Risk $30.0M 49 FTE 93 Total FTEs

12. 12 BROOKHAVEN SCIENCE ASSOCIATES Comprehensive EAC (Dec 2011) WBSDescription($K)WBSDescription($K) 1.1 Project management labor, space and utilities 1,954 1.3.7DW raw material cost increase 2,266 1.3.1 Design room equipment 216 1.3.7CPMU R&D 200 1.3.2 Accelerator Physics additional Computers 1311.3.7 IVU overrun due to material price increase 630 1.3.3.2Cost increase for booster main power supply 2001.3.7 ID measurement & installation labor corr 135 1.3.3.2 Booster rf cavities 4301.3.8 Vacc fac. Clean. Set-up cost overrun 230 1.3.3.3 Transport line installation M&S and labor 430 1.4.1management budget increase 566 1.3.3.4 Injector survey missing M&S and labor 340 1.4.5XPD Laue Monochromater cost increase 416 1.3.3.4 Additional labor for injector process water sys. 146 1.4.5HXN optics package contract award 80 1.3.3.5 Injector installation labor short fall 106 1.4.5Phasing magnet for EPU's for CSX 100 1.3.4.2 Magnet schedule mitigations 1,5541.4.5LOB std. lab equipment pack (3x)226 1.3.4.2Labor for magnet schedule mitigation 1,9701.4.5Under estimated labor for beamline1,050 1.3.4.2Magnet 2nd source contracts 850 1.5.2AE Support for LOB 4 & 5 240 1.3.4.2Magnet cooling water manifords 3281.5.3.2Ring Building construction field changes1,400 1.3.4.3Under-run in vacuum chamber contracts -1,5111.5.3.2Resolution of ESH issues from BOREs120 1.3.4.4 Power supply system labor and M&S overrun 1,4331.5.3.6Additional furnatures for larger LOBs (1&3)400 1.3.4.5 Increase in optical monitoring 1721.5.3.6LOB construction Field Changes210 1.3.4.7 Frontend cost saving -1811.5.3.6LOB construction safety incentive158 1.3.4.8Additional labor and M&S for SR Survey 9511.5.4Wireless communication repeaters900 1.3.4.8SR utility labor and contract overruns 7871.5.4Network infrastructure for LOB 4& 5300 1.3.4.9 Additional labor for girder installation 3421.6.2Additional manpower for accelerator pre-ops2,073 1.3.6 PPS interlock materials and labor 8301.6.3Additional manpower for beamline pre-ops1,242 EAC Total $24.4M ~ $4M PCRs approved since then

13. 13 BROOKHAVEN SCIENCE ASSOCIATES Staffing 20 Staff at 9/06 80 Staff at 9/07 139 Staff at 9/08 20 Staff at 9/06 80 Staff at 9/07 139 Staff at 9/08 Increase in staffing for accelerator, beamline engineering, construction management (oversight, ESH, QA) and project support (procurement, HR, project control) Sufficient staffing allocated for all activities through FY12 Accelerator Systems increased from 554 at CD-2 to 717 FTE now (>29% increase) 35% increase (90 FTE) for remaining years captured in EAC and Risks Continue to evaluate details in commissioning & pre-ops Total Cumulative FTEs: CD-2 Baseline 1,188 today 1,467 (>23% increase) Allocated in EAC + Risk ~35% increase

14. 14 BROOKHAVEN SCIENCE ASSOCIATES Risk Update Risk RatingAug 2008 Apr 2009 Jan 2010 Oct 2010 Jun 2011 Mar 2012 High663432 Medium799854 Low333029262215 Retired29122029 Recent Updates (ratings or $ estimates reduced) SR magnet production Insertion Device production Beamline enclosures & controls system Construction safety To be retired soon: Changes in requirements for conventional facilities Interface of 2 contractors on Ring Building site

15. 15 BROOKHAVEN SCIENCE ASSOCIATES Summary of Risks - Mar 2012 Risks risk rating overall rating estimated retire date ID#WBSDescription cost ($K) costscheduletechnical ESH-011.1.2Construction Safety$1,000LMn/aLJun-14 PMG-021.1.3additional labor$1,000Ln/a LJun-13 PMG-031.1.3additional space charge$3,000Mn/a MJun-13 ASD-011.3.1 unexpected difficulties with dynamic aperture$200 LLLLOct-13 ASD-021.3.3.1 Linac turn key procurement$250 LLLLApr-12 ASD-031.3.3.2Booster turn key procurement$500LMLLAug-12 ASD-041.3.4.2SR magnet production$500LMLLAug-12 ASD-051.3.4.3SR vacuum chamber production$0n/aLLLApr-12 ASD-071.3.4.6 SR RF cavity production$1,000 LMMMOct-13 ASD-091.3.7 Insertion device production$500 LMLLNov-12 ASD-101.3.4.5BPM electronics$200LLLLDec-12 ASD-111.3.4.9SR installation - underestimated labor$500LMLLDec-12 XFD-011.4.5 Enclosures, Utilities, Std Cmpnts, PPS & EPS$920LLLLJun-12 Optics$700LMMMSep-12 Endstations$3,800MMMHSep-12 Controls$180LLLLJun-12 Labor$4,500MLLMOct-12 CFD-011.5.2Changes in requirements for conventional facilities$200LLLLJun-12 CFD-031.5.3Field changes for conventional construction$2,000MLLMDec-12 CFD-051.5.3Interface of 2 general contractors on ring bldg site$200LLn/aLApr-12 OPS-011.6Under estimated pre-ops labor$6,685HLLHJun-13 subtotal$27,835

16. 16 BROOKHAVEN SCIENCE ASSOCIATES Risk & Contingency History Ring Building contract Enlarged LOBs & 500 mA capability Risk was 66% of contingency Risk is 33% of contingency LOB 4&5 shells

17. 17 BROOKHAVEN SCIENCE ASSOCIATES Contingency Tracking To Date Now ~36% Jan 2013 > 90%

18. 18 BROOKHAVEN SCIENCE ASSOCIATES Cost Baseline, Contingency, and Risks Burdened & Escalated Planned work $828M Completed work $597M Committed work-to-go$72M Uncommitted work-to-go$159M EAC ($20M) + Risks ($28M)$48M 25% of Uncommitted Work-to-go$40M Available Contingency $84M

19. 19 BROOKHAVEN SCIENCE ASSOCIATES Pre-ops activities start to ramp up in 2012 Expect to need large fraction of $10M OPC contingency to cover additional labor resource needed for integrated testing in FY12, FY13 and FY14 We requested to DOE to pull-forward most of $5M OPC from FY15 to FY14 Significant risk for delay in project completion date without pull-forward of FY15 funding Project Funding

20. 20 BROOKHAVEN SCIENCE ASSOCIATES Overall Performance On Schedule and On Budget wrt Baseline Excellent technical, cost & schedule performance to date Maintaining sound cost baseline with healthy remaining contingency Aggressively driven internal schedule Continue to execute technically limited schedule since June 2009 Negative schedule variances in specific areas: well understood and actively managed Lost fair amount of built-in schedule float for accelerator installation and beamline component procurement Risks and EAC well understood, tracked and managed A number of major risks (technical, cost & schedule) continue to retire or reduce ratings We are in the final home stretch of peak activity period with much excitement ahead