Closeout Report on the DOE/SC CD-4 Review of the · 2018. 8. 23. · – Project reporting supports...

OFFICE OF

SCIENCE

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Closeout Report on the

DOE/SC CD-4 Review of the

Utilities Upgrade Project (UUP)

Fermi National Accelerator LaboratoryAugust 22-23, 2018

Raymond Won

Committee Chair

Office of Science, U.S. Department of Energy

http://www.science.doe.gov/opa/

http://www.science.doe.gov/opa/

OFFICE OF

SCIENCEReview Committee

Participants

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Raymond Won, DOE/SC, Chairperson

Observers

Marc Jones, DOE/SC

David Michlewicz, DOE/SC

Steve Neus, DOE/FSO

Review Committee

Subcommittee 1—Technical

*Pat Hogan, ANL

Dan Nassar, ANL

Subcommittee 2—ES&H

*Michelle Solaroli, TJNAF

Subcommittee 3—Cost and Schedule

*Kelly Krug, TJNAF

Carrie Sauter, BNL

Subcommittee 4—Project Management

*Michelle Solaroli, TJNAF

*Lead

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Charge Questions

1. Technical: Are all Key Performance Parameters that pertain to the project sufficiently

achieved and documented? Are the modernized utilities ready for operations?

2. Cost, Schedule, Risk and Contingency: Has the project been completed within the

cost and schedule baseline? Was the use of contingency appropriately executed?

3. Management: Is the project properly organized, staffed and managed for successful

completion? Is the Transition to Operations plan updated and approved?

4. Environment, Safety and Health: Are ES&H aspects of the project adequately

addressed? Are prerequisite documents such as the final Hazard Analysis and the

draft Project Closeout Report approved or prepared?

5. Prior Reviews: Has the project responded appropriately to recommendations from

prior reviews?

6. Lessons Learned: Has the project adequately documented lessons learned and best

management practices?

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2. Technical DRAFT

P. Hogan, ANL, D. Nassar ANL

1. Technical: Are all Key Performance Parameters that pertain to the

project sufficiently achieved and documented? Yes.

Are the modernized utilities ready for operations? Yes.

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5. Prior Reviews: Has the project responded appropriately to

recommendations from prior reviews? Yes.

6. Lessons Learned: Has the project adequately documented lessons

learned and best management practices? Yes.

2. Technical


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Findings

• Significant effort was placed on customer interfaces with the impacted utilities.

• Management used regular project meetings including daily interfaces with critical

facilities to coordinate construction activities.

• FESS Facilities Management personnel participated in the Commissioning and

Start-up of systems.

• The project executed seven Beneficial Occupancies on the High Voltage (HV)

portion.

• The project executed 18 sectionalized Beneficial Occupancies on the Industrial

Cooling Water (ICW) portion.

• Commissioning and Transition to Operations is complete for both the HV and ICW

portions.

• All training is complete.

• Operations stakeholders signed-off on Final Acceptance

• The project achieved all Level 1 Milestones.

2. Technical


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Findings (cont)

• The project implemented a successful work-around in response to a delay caused by

the Master Substation (MSS) vendor: The vendor was late in completing its factory-

based work, including factory assembly and testing. Late delivery of the MSS

would have impacted the work of on-site subcontractors whose work was dependent

on arrival of the MSS. Fermi decided to allow MSS shipment and on-site testing by

the vendor in order to mitigate delays to the on-site subcontractors.

• There were no Technical scope Recommendations in the prior review (July 2016).

• The project has documented a number of lessons learned and best practices.

• The threshold scope was completed, and objective scope was completed as indicated

in the table below:

2. Technical


Description of Scope KPP Threshold Achieved Objective KPP Achieved

High Voltage Electrical (H/V) Upgrade

Replace Master Substation Control Building

Replaced: Building, Switchgear/Equipment,

Protection System, Cable Vault, Yard Wiring and

Portions of Feeder System

Constructed: Blast Wall, Generator and Duct

Bank

Master substation 345kv circuit

breaker replacement

Industrial Cooling Water (ICW) Upgrade

Install new ICW backbone piping network from

Casey's Pond to the Main Injector ICW system

Installed: four miles of new and replacement

ICW pipe and two new pump stations.

Casey’s Pumphouse Electrical Room Addition

Makeup Water Improvements

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Comments

• The project has achieved all threshold elements of the key performance parameters.

The project has also achieved completion of three objective elements. A list of

elements is included in the Findings Section.

• All of the constructed facilities have been accepted and transitioned to operations as

documented in the Transition to Operations Plan.

• The lessons learned from the project are well documented.

• The project team successfully overcame a significant challenge regarding the vendor-

delayed MSS.

• The project team maintained critical systems operation during construction to ensure

Lab requirements continued to be met.

• The project team included subject matter experts for each discipline that significantly

impacted the success of the project.

• The electrical commissioning reports are well thought out and the testing plans

followed ANSI/NETA test practices

2. Technical P. Hogan, ANL, D. Nassar ANL

OFFICE OF

SCIENCE

• Recommendations

• The project is ready to proceed to CD-4.

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2. Technical


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3. Environment, Safety and HealthM. Solaroli, TJNAF / Subcommittee 2

4. Environment, Safety and Health: Are ES&H aspects of the project adequately

addressed? Yes Are prerequisite documents, such as the final Hazard Analysis and the

draft Project Closeout Report, approved or prepared? Yes


prior reviews? Yes


management practices? Yes

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Findings

• UUP was acknowledged in Lab’s Site Sustainability plan with achieving success

in meeting the Lab’s sustainability goals and improving operational resilience in

FY 2017.

• Project utilized Predictive Solutions, an occupational safety software, for analytics

on workplace injury prevention, which has been integrated into Lab’s ES&H

program.

• Subcontractors have worked at the Lab in the past; therefore, they were aware of

the safety culture and expectations of the Lab.

• Best value selection included ES&H performance as a critical parameter to ensure

subcontractors can meet FNL ISM requirements.

• Subcontractor total hours worked = 64,986 hrs

• Project had a TRC case involving wrist injury and a DART case involving knee

injury. Both the Project incident and DART rates were 3.1.

• Project had three (3) Category 4 ORPS . Two were related to exposure to

hazardous electrical energy and one involved excavation beyond permit limits.

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Findings (continued)

• Project had (1) ORPS involving lack of proper signage, incorrect PPE and lack of

volt meter verification. The CSO issued safety stand-down until assurance of

subcontractor qualifications, hazard analysis and work controls were in place.

• Project had (1) ORPS during HV Upgrade project involving excavation into

Meson Beam line berm, which was outside approved excavation permit limits.

Lab addressed incident by shutting down Meson beam and having Radiation

group identify boundaries and posting for restricted digging area.

• Project had (1) ORPS involving a LOTO violation. Lab addressed incident with

stand down until an investigation was completed. A second occurrence with same

sub-tier subcontractor resulted in removal from the project.

• Hazard Analysis Report was reviewed from CD-3b and concluded that no updates

were required.

• Security Vulnerability Assessment Report has been updated to include

Cybersecurity Analysis of Master Substation Building. Assessment is pending

DOE approval.

• UUP Quality Assurance Plan has been reviewed and updated.

• Project closeout report is in draft form and contains information on ESH elements,

such as incidents and ORPS.

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Comments

• ES&H is well integrated into the project team and this directly contributed to the

success of safety on the project.

• Coordination between subcontractors and the Lab successfully mitigated

operational risks.

• The Lab’s proactive management of two ORPS involving electrical violations

including LOTO, improper signage and PPE usage demonstrated the strength of

their safety culture by issuing a stand down until an investigation was completed.

A second occurrence with same sub-tier subcontractor resulted in removal from

the project.

• Project team adequately addressed all recommendations from previous reviews.

• ESH Lessons Learned and Best Management Practices were documented in the

Project Closeout Report.

• The inclusion of the site specific construction safety plan as part of the

subcontract documents for necessary flow down of safety requirements to sub-tier

subcontractors was a notable lessons learned.

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Recommendations

• The project is ready to proceed to CD-4

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4. Cost and ScheduleCarrie Sauter, BNL, K. Krug, TJNAF

• Cost, Schedule, Risk and Contingency: Has the project been completed within the

cost and schedule baseline? Yes. Was the use of contingency appropriately

executed? Yes.

• Prior Reviews: Has the project responded appropriately to recommendations from

prior reviews? Yes.

• Lessons Learned: Has the project adequately documented lessons learned and best

management practices? Yes.

OFFICE OF

SCIENCE

▪ Findings

▪ The project TPC is $36.0M with a TEC of $34.9M and OPC of $1.1M

▪ EVMS statistics as of July 31, 2018

▪ BCWS: $35,180k

▪ BCWP: $35,413k

▪ ACWP: $35,484k

▪ BAC: $35,478k

▪ EAC: $35,549k

▪ CPI/SPI: 1.00/1.01

▪ 99.8% complete

▪ Forty-seven (47) baseline changes have been processed/approved through July

2018

▪ $4,750k drawn from TEC contingency since CD-2

▪ TEC Cost variance of $71k

▪ Remaining contingency of $451k

▪ TEC of $96k, OPC of $355k

▪ 4 months remaining schedule contingency to Jan-2019 CD-416


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SCIENCE

▪ Findings (continued)

▪ All project risks in Risk Registry have been retired. $96k remains in

uncommitted contingency.

▪ The Draft Project Closeout Report identifies 5 Level 1 Milestones and 19 Level

2 Milestones all of which have been completed with the exception of Level 2

Milestones: CD-4 Readiness and CD-4 ESAAB and Level 1 Milestone: CD-4:

Approve Project Completion.

▪ A resource loaded schedule has been used throughout the project which

represents the project scope.

▪ $2.0M of Objective Scope was completed drawing from project contingency,

which equates to 42% of the contingency usage.

▪ All control accounts are 100% complete and closed to charges with the

exception of Project Management which has $65k of work remaining and an

open obligation of $.9k as of July 31, 2018.

▪ When a control account work scope is complete, the CAM notifies Project

Controls, Procurement and Finance. They then follow their procedures to ensure

contracts are closed out, all costs are incurred and the project is closed to new

charges, and activities are complete and closed in the EVMS system.

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OFFICE OF

SCIENCE

▪ Comments

– The project team has successfully executed the project completing on schedule

and within cost.

– Use of $4,750k in contingency was appropriately executed by the project:

• Threshold Scope used $2.8M, 58%

• Objective Scope used $2.0M, 42%

– 3 of 12 Objective KPPs were accomplished:

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Objective Value Spend Down Items Cost

Replace the Master Substation 345kV circuit breaker $338,000

Electrical Room Addition for Casey’s Pond Pump House $1,445,000

ICW Makeup Water Improvements $237,000

Total $2,020,000

OFFICE OF

SCIENCE

▪ Comments (continued)

– The project has responded appropriately to previous review recommendations.

– The project has developed a fairly comprehensive list of Lessons Learned and

Best Management Practices (Successes) recognizing areas for improvement

on future projects.

– Project reporting supports the achievement of CD-4 within the approved

baseline cost, however control documentation did not appear to align and

explanations were needed to understand differences. As a consequence,

control data should be aligned prior to issuing the final project closeout report.

• The contingency usage since CD-2 was untraceable in the Change

Control Log.

– The $30.727M PMB at CD-2 is not reflected on the log

– Consider improvement to the Change Control Log documentation to

ensure transparency by adding the running total of the contingency

remaining.

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OFFICE OF

SCIENCE

▪ Comments (continued)

• The objective scope added to the baseline could not be verified via the

BCRs.

– BCR documentation did not clearly delineate the objective scope

additions when implemented into the baseline. Consider including, in

the BCR form, separate detailed explanations of each change taking

place.

• Discrepancies exist between the milestone dates on PEP and Project

Baseline Schedule

• The actual dates on the Closeout Report should tie with the Project

Working Schedule

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OFFICE OF

SCIENCE

▪ Recommendations

– Proceed to CD-4

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OFFICE OF

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PROJECT STATUS as of July 2018

Project Type Line Item

CD-1 Planned: Actual: Nov 2010

CD-2/3a Planned: May 2015 Actual: Feb 2015

CD-3b Planned: Dec 2015 Actual: Sep 2015

CD-4 Planned: Jan 2019 Actual:

TPC Percent Complete Planned: 99.2% Actual: 99.8%

TPC Cost to Date $35.5M

TPC Committed to Date $35.6M

TPC $36.0M

TEC $34.9M

Contingency Cost (w/Mgmt Reserve) $ 0.1M 149% to go

Contingency Schedule on CD-4 4 months 67%

CPI Cumulative 1.00

SPI Cumulative 1.01

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5. Project ManagementM. Solaroli, TJNAF/ Subcommittee 4

3. Management: Is the project properly organized, staffed and managed for successful

completion? Yes Is the Transition to Operations plan updated and approved? Yes


prior reviews? Yes


management practices? Yes

OFFICE OF

SCIENCE

Findings

• All Level 1 milestones were met.

• HV Electrical Upgrade project was completed August 2017 and the project

executed $316K in objective scope.

• ICW Upgrade project was completed July 2018 and the project executed $1,682K

in objective scope.

• Only the WBS Project Management control account remains open.

• Project SPI & CPI stayed within 10% threshold.

• All risks have been retired. $96K remains in contingency.

• Final Commissioning Report for HV 345kV Master Substation had three open

items that were closed at CD-4 review.

• Both HV Electrical Upgrade and ICW Upgrade are complete, commissioned and

operational.

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OFFICE OF

SCIENCE

Findings (continued)

• Multiple Beneficial Occupancies were issued as part of HV and ICW

construction.

• Final Acceptance certificates were issued for the purpose of contractually

establishing subcontracted work has been completed in accordance with the

subcontract documents and constitutes the start of the warranty period.

• The transition to Operations plan is complete and defined FNL basis for

obtaining operability for the systems. Documentation, training and Lab

interfaces have been coordinated and obtained.

• Lessons learned including successes and potential improvements have been

captured.

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OFFICE OF

SCIENCE

Comments

• Threshold KPPs and 3 Objective KPPs were successfully completed within the

project baseline cost and schedule.

• The project team effectively managed cost of additional threshold scope

associated with cost overruns, field conditions, design errors, operational issues

and constraints in the amount of $2,804K which was 13.8% of initial construction

cost ($20,340K).

• The project successfully spent approximately 49% of contingency on objective

scope and various scope enhancements. The cost of executed objective scope

($2.14M) was 10.6% of initial construction cost ($20,340K). Well done!

• Project team successfully managed changes to project staff throughout the project

and is adequately staffed to complete the project.

• The Transition to Operations Plan clearly defined the basis for attaining project

closeout and included requirements for documentation, training and interfaces.

• Subcontract management of ICW with unit pricing is a Best Management

Practice and was applied successfully on this project when field changes

occurred.

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5. Project ManagementM. Solaroli, TJNAF / Subcommittee 4

OFFICE OF

SCIENCE

Comments

• The MSS Bypass project proactively used Lab funds to install an alternate power

source as a bypass for maintaining Lab operations during UUP HV project. This

interfacing project funded by the Lab was necessary for moving forward on the

HV project is considered a best management practice.

• Project team successfully responded to the late delivery of the substation on the

HV project by implementing additional management tools including engaging

subcontractor management, holding daily meetings, modifying payment

milestones and allowing final testing of some systems onsite. This modification

to the contract’s delivery schedule utilized contingency funds effectively to

mitigate overall project schedule delays.

• The Design Phase Utility Locates was a notable lessons learned using design

funding to locate existing utilities via potholing and hydro excavating. This effort

positively obtained utility location/elevation information and mitigated conflict

risks during construction.

• Project team adequately addressed all recommendations from previous reviews.

• Project team adequately documented lessons learned and best management

practices.

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5. Project ManagementM. Solaroli, TJNAF / Subcommittee 4

OFFICE OF

SCIENCE

Recommendations

• The project is ready to proceed to CD-4

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