1 BROOKHAVEN SCIENCE ASSOCIATES Project Performance & Risk Management Aesook Byon, Deputy Project Director NSLS-II PAC Meeting February 8-9, 2011

2 BROOKHAVEN SCIENCE ASSOCIATES Outline Cost, Schedule, & Funding Baseline Project Performance Risk Management Conclusions

3 BROOKHAVEN SCIENCE ASSOCIATES Cost Baseline TPC$ 912 M Baseline Cost (Planned work)$ 785 M Contingency $ 127 M Completed work (Dec ‘10) $359M (46% complete) Committed work-to-go$144M Uncommitted work-to-go$282M Contingency = 30% of remaining work (29% of EAC; 31% of TEC) 45% of uncommitted work-to-go Remaining work Planned Work

4 BROOKHAVEN SCIENCE ASSOCIATES Cost Baseline WBS CD-2 (Nov ‘07) CD-3 (Oct ‘08) Dec ‘09 Baseline Current Baseline (Dec ‘10) Change Dec ‘ Project Management R&D and Conceptual Design Accelerator Systems Experimental Facilities Conventional Facilities Pre-Operations Grand Totals: $23.7M Contingency utilization since Dec ‘09  $10.7M (45%): cost increase (underestimated baseline – labor, space, M&S)  $13.0M (55%): scope enhancements/addition (enlarged LOB, rf cavity)

5 BROOKHAVEN SCIENCE ASSOCIATES Major Procurement Performance Award Date Cost Description Baseline ActualEstimatedActual CommissioningAug 08Oct 08$830 K$301 K Site prepNov 08Nov 08$657 K$501 K APS WeldingJan 09Feb 09$1.7 M$1.7 M Ring BuildingFeb 09Feb 09$168 M$173 M 8 Unit SubstationApr 09Apr 09$3.0 M$3.2 M TransformersMay 09May 09$1.1 M$0.7 M Substation ExpJul 09Jul 09$1.8 M$1.1 M Chilled Water PlantMay 09Jul 09$8.4 M$8.3 M Chilled Water PipingJun 09Aug 09$1.0 M$1.4 M MagnetsAug 09Oct 09$18 M$17.4 M LinacFeb 10Apr 10$8.5 M$7.9 M BoosterMar 10May 10$14.7 M$14.0 M LOBOct 11Aug 10$40 M$34 M Damping WigglerOct 10Nov 10$7.4 M$6.0 M Total$275M$270M (98%) Excellent Performance

6 BROOKHAVEN SCIENCE ASSOCIATES Contingency spending history (Mar ‘08 – Jan ‘11) ($K) total (per month)w/o scope addition (per month) 3/08-1/11 $67M ($3.2M)$44M ($2.1M) 2009 $30M ($2.5M)$30M ($2.5M) 2010 $23M ($2.1M)$12M ($1.0M) Jan 2011 $1.5M ($1.5M)$1.5M ($1.5M) Spending category: scope additions $18.5M labor/space $22.5M M&S$25.6M

7 BROOKHAVEN SCIENCE ASSOCIATES Contingency Tracking To Date

8 BROOKHAVEN SCIENCE ASSOCIATES Schedule

9 BROOKHAVEN SCIENCE ASSOCIATES Schedule Float & Critical Path Critical Path: through Accelerator installation & commissioning magnet production  girder assembly/installation  delivery of RF cavity  ID integrated test  SR commissioning Near Critical Path: about 1~2 months off of critical path Booster installation and commissioning Installation of Linac to Booster transfer line SR RF - cryogenics system, installation & commissioning Early Project Completion, June 2014 (Lv 1 Milestone) Baseline Level-1 milestone date with built-in schedule float (~3 months) Projected early completion day is March 2014 –Lost 3 weeks schedule float over past 17 months CD-4, Start of Operations, June months after the projected early completion date

10 BROOKHAVEN SCIENCE ASSOCIATES Maintaining Up-To-Date Schedule Project is in full speed and making excellent progress Maintaining optimized plan requires constant update of the plan Nature of updates: Ensure plan reflects what we are executing Incorporate actual contract schedules Detail out activities as far out in time as possible Update resource load of activities for accurate time-phasing and profiling Define detailed activities in short duration (1-2 months) for EV Critical path, schedule float, and resource & spending profiles continuously updated and analyzed so that this “living schedule” can Produce meaningful earned value and performance indicator Give a clear look-ahead Be a tool to analyze schedule risks/impacts and formulate mitigation plan Provide accurate information for resource leveling

11 BROOKHAVEN SCIENCE ASSOCIATES Full funding $141M provided in FY10 FY11 budget request included $153M as planned Project Funding

12 BROOKHAVEN SCIENCE ASSOCIATES Cost, Funding & Obligation

13 BROOKHAVEN SCIENCE ASSOCIATES FY08FY09FY10FY11FY12FY13FY14 Completed/Scheduled Work ($M) Sufficient carry-over funds from prior year at the beginning of FY11 $4M of OPC and $55M of TEC (uncosted but part of these are obligated) Under Continuing Resolution, expect no impact until August 2011 If a year-long CR, we might have to adjust profiles for phased funded major contracts FY11 is the peak spending & activity year NSLS-II Project Funding Profile ($M) FY11 Continuing Resolution

14 BROOKHAVEN SCIENCE ASSOCIATES Middle of a steep slope with a significant burn rate (~$20M/month) CPI = 1.02 SPI = 0.98

15 BROOKHAVEN SCIENCE ASSOCIATES Monthly Burn Rate 75% complete by end of year 2011

16 BROOKHAVEN SCIENCE ASSOCIATES Staffing 20 Staff at 9/06 80 Staff at 9/ Staff at 9/08 20 Staff at 9/06 80 Staff at 9/ Staff at 9/08 Total Cumulative FTEs: CD-2 Baseline 1,188 today 1,412 (~19% increase) Increase in staffing for accelerator, beamline engineering, construction management (oversight, ESH, QA) and project support (procurement, HR, project control) Sufficient staffing alloated for all activities through FY12. Now carefully evaluating details in pre-ops & transition phases.

17 BROOKHAVEN SCIENCE ASSOCIATES Staffing 20 Staff at 9/06 80 Staff at 9/ Staff at 9/08 20 Staff at 9/06 80 Staff at 9/ Staff at 9/08

18 BROOKHAVEN SCIENCE ASSOCIATES Risk Update Risk RatingAug 2008 Apr 2009 Jan 2010 Oct 2010 Feb 2011 High66346 Medium79984 Low Retired Promoted (L to H/M)4417 Demoted (H/M to L)4629 New1111

19 BROOKHAVEN SCIENCE ASSOCIATES Summary of Risks Subtotal $65.3M reported at last PAC meeting (comparison: excluding new labor risks, total now is ~$41M) Risks risk rating overall rating estimated retire date ID#WBSDescriptioncost ($K)costscheduletechnical ESH Construction Safety$3,000MMn/aMJun-14 PMG additional labor$6,700Hn/a HJun-15 PMG additional space charge$1,500Mn/a MOct-12 ASD unexpected difficulties with dynamic aperture$1,000 LLLLOct-13 ASD Linac turn key procurement$250 LLLLApr-11 ASD Booster turn key procurement$500LMLMAug-11 ASD SR magnet production$5,000MHMHAug-11 ASD SR vacuum chamber production$500LLLLJun-11 ASD SR RF cavity production$2,000 MMMHOct-13 ASD Insertion device production$3,000 MLLMNov-12 ASD BPM electronics$1,000LLLLDec-12 ASD SR installation - underestimated labor$3,000MLLMDec-12 XFD IXS$2,400MMMHOct HXN$3,100MMMHOct CHX$2,000MLMMOct CSX$2,400MMMHOct SRX$2,300MLLMOct XPD$2,000MLMMOct-12 CFD Changes in requirements for conventional facilities$1,000LLLLJun-14 CFD Field changes for conventional construction$4,000HLLHApr-12 CFD Interface of 2 general contractors on ring bldg site$500LLn/aLJun-12 OPS-011.6Under estimated pre-ops labor$10,000HLLHJun-14 subtotal$57,150

20 BROOKHAVEN SCIENCE ASSOCIATES Risk Update Recently Retired Risks Storage Ring power supply design Accelerator controls system procurement Rate changes (foreign exchange, labor, raw materials) Unplanned environmental impact at construction site Risks with Reduced Ratings Changes in requirements for conventional facilities Storage Ring vacuum chamber production Linac turn key procurement Booster turn key procurement New Risks or Risks with Higher Ratings Storage Ring magnet production schedule Additional labor for maintaining schedule Interface of two general contractors on Ring Building site Underestimated installation & pre-ops labor LOB contract DOE Approval Delays R&D for beamline design BPM electronics Directed funding profile change Unexpected ESH related design issues

21 BROOKHAVEN SCIENCE ASSOCIATES Cost Baseline, Contingency, and Risks Burdened & Escalated Planned work $785M Completed work $359M Committed work-to-go$144M Uncommitted work-to-go$282M EAC ($13M) + Risks ($57M)$70M 25% of Uncommitted Work-to-go$71M Available Contingency $127M

22 BROOKHAVEN SCIENCE ASSOCIATES Summary in Numbers last PACthis meeting Cost Baseline$758M $785M project completed$150M20%$359M46% cost contingency$154M25%$127M30% schedule contingency16 months31%15 months41% SV/SPI-$6.9M0.96-$6.6M0.98 CV/CPI+$5.7M1.04+$6.8M1.02 Procurement vs contract management effort 75%-25%50%-50% FY07FY08FY09FY10FY11 Procurement requests processed ,0001,100 $2M$8M$200M$100M Approved PCR so far Staff on-board 210 FTE 260 FTE (24% increase)

23 BROOKHAVEN SCIENCE ASSOCIATES Lessons Learned Key elements to successful execution to date Front-loaded funding profile provided Favorable economic environment Early recognition of needs for risk mitigations and having means to implement them – staffing, magnet, laboratory & DOE support Strong project team in all areas Prompt management decisions & actions Challenges coming with executing technically driven schedule No place to hide when there are problems or glitches Need to balance “giving enough room” for people to do their job vs “needing up to date info” to make decisions Better have fully matured project management tools in place in order to support rapid analysis and decisions

24 BROOKHAVEN SCIENCE ASSOCIATES Overall Performance On Schedule and On Budget Excellent technical, cost & schedule performance to date Sound cost baseline with healthy remaining contingency Schedule contingency maintained Continue to execute technically limited schedule (since June 2009) Negative schedule variances in specific areas: well understood and actively managed Risks and EAC well understood, tracked and managed A number of major risks (technical, cost & schedule) retired or reduced ratings 2011 is a crucial year with many challenges and much excitement ahead