Linac Ops Budget Structure & Approach WBS 1 – LCLS Mgmt & Admin Mark Reichanadter LCLS Deputy Director SLAC National Accelerator Laboratory

Outline Budget Structure Development Management & Performance Linac Ops WBS Organization Scope Statements Management & Performance Work Authorization, Account Mgrs, WBS Mgrs Business Rules / Configuration control Assessment & Feedback Out-Year Planning & Lessons Learned LCLS Mgmt & Admin (WBS 1) FY09 Linac Ops Review Page 2

Budget Development September 2006 Linac Ops Review Bottoms-up (activity-based) No experimental ops February 2009 Linac Ops Review Bottoms-up (improved activity-based w/defined scope) LCLS Operations FY09 budget includes: $96.7M Linac operations and SLAC core competencies and capabilities supporting LCLS science $2.0M Experimental operations & user support/administration Includes work authorization and change management FY09 Linac Ops Review Page 3

Work/Budgets align with Organization WBS 1.X – LCLS Directorate Supports general mgmt & administrative costs WBS 2.X – Accelerator Operations Supports LCLS accelerator operations WBS 3.X – Engr & Physics Operations Centralized engineering/physics staff assigned to 2.x, 4.x, 5.x) WBS 4.X – Experimental Operations Supports LCLS photon operations, beamlines, user admin WBS 5.X – Strategic Projects (LCLS/LUSI LI, Upgrades) Supports LCLS/LUSI construction, upgrades, new projects WBS 8.X – SLAC Operations Supports LCLS core competencies or services above the G&A level WBS 9.X – SLAC Engineering & Technical Support Supports LCLS core competencies in ETS FY09 Linac Ops Review Page 4

Budget Model - Categories of Support Direct program – direct costs of supporting Linac Operations or LCLS Experimental Operations. WBS 1, 2, 3, 4, 5 Core competencies – cost of all technical infrastructure at SLAC essential to support LCLS Linac Operations or Experimental Operations WBS 8, 9 (BES Primary Stewardship of SLAC) Indirects - site-wide support such as ES&H, Business Services, Site Maintenance, IGPP, LDRD Rates: 45.0% labor, 8.0% M&S LCLS and LUSI projects use major capital project rate FY09 Linac Ops Review Page 5

Building/Scrubbing the Ops Budget Initial budget submission LCLS Division Directors estimate internal needs Ops and ETS Departments estimate budgets to support Linac Ops Bottoms-up budgets for Linac Ops in 2009 Check against September 2008 (HEP-BES) actuals Include LCLS AIP (S20-S30) and planned upgrades/legacy issues Roll up/review budget All budgets require detailed L3 scope statements and resource detail at L4. Scrubbing process removed unrealistic scope increases and/or hiring. Pushed some planned work into FY10 to provide small reserve. FY09 Linac Ops Review Page 6

LCLS Operations Budget (FY09) 2.5% Linac Ops and 6% Exp Ops reserve allocated to address issues (emergencies, opportunities, etc.). FY09 Linac Ops Review Page 7

FY09 Staffing FY09 ~361 FTEs Most Engineers matrixed from EPD Most Technicians matrixed from Ops/ETS Significant ramp-up in Photon operations over next 3 years. Some new hires Some roll-off of construction project FY09 Linac Ops Review Page 8

LCLS Ops Base Cost (FY09 – FY12) FY09 Linac Ops Review Page 9

LCLS Ops Escalated (FY09 – FY12) Assumes annual escalation of 4% labor, 2.5% M&S FY09 Linac Ops Review Page 10

LCLS Ops FTEs (FY09 – FY12) FY09 Linac Ops Review Page 11

LCLS Scope Statements Define the Work WBS, Scope title, responsible managers Scope of work statement Responsible organization Fund Type Work Authorization FY09 Linac Ops Review Page 12

Basis of Estimate Methodology Basis of estimate is done at WBS L4 Labor estimates How many (and fraction of) FTE’s Type of FTE (engineer, scientists, IT professional, etc.) Average resource rate table (validated against actual salaries) Performing Organization (ETS, Ops, LCLS Directorates) Shop labor M&S estimates Travel Equipment Basis of estimate is included in the backup documentation FY09 Linac Ops Review Page 13

Work is authorized at WBS Level 3 Scope statements integrate fund management & accounting processes to track performance. WA Signed off by: Account Manager Responsible for L3 accounts WBS Manager (typically Division Director) Responsible for WBS L2 and related L3 accounts LCLS Associate Laboratory Director (ALD) Responsible for LCLS FWP (Linac Ops & LCLS Exp Ops) LCLS Business Manager Ensures adequate funds available LCLS ‘business rules’ are under document control. Included in backup documentation FY09 Linac Ops Review Page 14

Procurement Approval Thresholds Technical Approval Account Manager <$10,000 WBS Manager <$50,000 LCLS ALD <1,000,000 for WBS 1,2,3,4,5 LCLS ALD and Ops/ETS ALD <1,000,000 for WBS 8/9 SLAC Director >1,000,000 Budget Approval LCLS Finance Manager <$10,000 LCLS Business Manager <$1,000,000 SLAC CFO >$1,000,000 FY09 Linac Ops Review Page 15

Monthly status reporting Budgets versus actuals Linac Ops does not use “earned-value” but activity-based budgets allow for variance analysis at L3/L4 Change management L3 budgets are increased (or decreased) as necessary to optimize performance of science program. Update and reauthorize work consistent with new budgets and overall funding availability. FY09 Linac Ops Review Page 16

Linac & Exp Ops Budgets vs Actuals FY09 Linac Ops Review Page 17

Budget Process for FY10 and Out-Years Detailed budget process starts mid-July Set next years strategic goals Machine performance, planned AIPs Operation statistics, MTBF, legacy issues # of hours to users, power costs Assess current year costs versus scope Use June actuals (3 of 4 quarters costed) Integrate Ops and ETS core competencies Lab G&A, lessons learned Iterate on budget versus goals to optimize balanced goals of LCLS science and safe operations Budget approved by LCLS ALD mid-Sep FY09 Linac Ops Review Page 18

Summary Linac Ops and Exp Ops budgets are bottoms-up, activity-based and resource-loaded. Work and budget are linked to provide transparency. SLAC core capabilities necessary to support the LCLS mission are included in Linac Ops budget. Management tools adequate to track operations “Just enough” project management Yearly budget cycle will address future operational and programmatic goals and legacy issues. Draw upon previous results + lessons learned Independent assessments and feedback FY09 Linac Ops Review Page 19

WBS 1.X – LCLS Mgmt & Admin WBS 1.1 Scope of work Directorate Support ALD and Sr Mgmt Team Administration ES&H, WP&C Special Project Support Business Office Business Mgr & Deputy PMCS, Finance Procurement Info Technology Centralized funding for general travel and M&S WBS 1.1 Total ~ $3.98M FY09 FY09 Linac Ops Review Page 20

LCLS Directorate FY09 Linac Ops Review Page 21

Mgmt/business processes (from projects) are mature and effective LCLS Business Office Mgmt/business processes (from projects) are mature and effective Migrate BO to centralize business practices and policies to support ops FY09 Linac Ops Review Page 22

FY10 – FY12 FTE/Budget Forecast   FY09 FY10 FY11 FY12 1.1.ALD Office 4.6 7.5 1.2.Dir Wide Support 0.0 1.3.Business Support 6.7 7.7 8.5 TOTAL FTEs 11.3 15.2 16.0 WBS 1.X staffing mostly in place. FY10-FY12 additions: ALD Head + Sr. Science Work Planning & Control Administrative Staff Deputy BO/PMCS Lead   FY09 FY10 FY11 FY12 1.1.ALD Office 1,637 2,109 2,191 2,278 1.2.Dir Wide Support 571 705 760 786 1.3.Business Support 1,771 2,052 2,234 2,316 TOTAL K$ as ESCALATED 3,979 4,866 5,185 5,380 FY09 Linac Ops Review Page 23

Risks and Mitigations LCLS business model moving from project to operations SLAC business model moving from single to multi-program LCLS – establish scope statements, transparent accounting SLAC – Significant effort in Operations to establish common financial reporting, metrics and accounting practices across all Directorates. Ability to hire and retain high-quality staff Hire new ALD and complete senior management team PMCS and Procurement teams are critical to project delivery Ramp-up photon ops, instr scientists and user admin are key to success Taking ‘eye off the ball’ on LCLS and LUSI projects Maintain LCLS and LUSI cost and schedule performance Business Office to maintain all project tools and processes (certified EVMS, procurement cell, risk registry) FY09 Linac Ops Review Page 24

Summary LCLS transformation from project to ops/project organization basically complete. Using centralized and uniform business rules and processes. Directorate and BO designed to support operations as well as capital projects. Centralize ES&H / WP&C function. Maintain EVMS certification and procurement cell through LCLS and LUSI projects. Continue active risk management through full transition to ops. FY09 Linac Ops Review Page 25