The Department of Energy and the Office of Environmental Management (EM) will monitor and evaluate the performance of the program in two major areas: corporate control at the Department level and EM Processes at the EM level.
I. Corporate controls
Recovery Leadership & Operations
The DOE Recovery Office is the central point for implementation and execution of Recovery Act activities. A recovery operations team will oversee implementation management, such as monitoring project status, evaluating cost and schedule progress, ensuring thorough reporting, coordinating with external entities, and holding monthly performance and review meetings with senior departmental managers on the implementation status of specific recovery projects.
Recovery Funding Oversight, Performance
In addition to DOE’s standard funds control mechanisms, Recovery Act funds are subject to additional process controls to ensure funds are not co-mingled, are tracked to enable reporting, and are spent responsibly. DOE recovery funds are released for implementation in a staged approach. Programs develop initial project plans which include performance metrics which require management approval.
Office of Internal Review (OIR)
DOE’s OIR helps programs ensure that internal controls are in place, effective, and support the risk-based approach to managing Recovery Act activities. OIR programs are being implemented or expanded to ensure the Recovery Act objectives are met and DOE managers and partners are both held accountable for successful execution and also have the appropriate tools to ensure that success. These programs include coordinating DOE’s “Internal Control Acknowledgment” program, conducting agency-wide assessments and analyses and performing oversight of Recovery Act programs, including site and field visits. OIR worked with key impacted programs to produce initial vulnerability assessments identifying potential program specific and cross-cutting risks to ensure successful execution
II. EM Processes
At EM Headquarters, an Integrated Project Team has been established for the management and oversight of Recovery Act work at the EM sites. EM is engaging with other Headquarters offices such as General Counsel, the Chief Financial Officer, the Office of Management and Administration, the Office of National Environmental Policy Act Compliance and others to ensure all appropriate requirements for the use of Recovery Act funds are met. Independent assessments will be conducted for the EM Recovery Act projects.
At the EM sites, the vast majority of the work will be executed through the expansion of existing contracts. This approach greatly reduces the risk associated with project performance. Appropriate funding modifications will be enacted to implement and segregate the Recovery Act funds for reporting purposes. All projects will be executed by the contractors according to DOE Order 413.3A, Program and Project Management, with appropriate performance measurement baselines and DOE oversight. Acceptable performance on these projects will also be measured using performance metrics (e.g., cost, schedule, and scope) as established in baselines. Cost and schedule performance indicators (cost performance index and schedule performance index) according to DOE-approved Earned Value Management Systems will be used as required by DOE Order 413.3A.
In addition, the EM Headquarters Integrated Project Team will be conducting on-site reviews to examine the readiness to execute the EM Recovery Act scope and assist in understanding of guidance and requirements.
EM manages all of its work using project management protocols, and will apply the same rigor in managing the Recovery Act projects. Monthly, quarterly, and project-to-date project performance measures include cost and schedule variances, cost, and schedule performance indexes, contingency use, milestone status reports, and risk register updating/status reporting.