NEWS MEDIA CONTACT: Jeff Sherwood, 202/586-5806
June 29, 1999
Deputy Secretary of Energy T.J. Glauthier, who is also the Chief Operating Officer of the department, today announced the latest in a series of reforms undertaken by Energy Secretary Bill Richardson to strengthen and improve management of its construction and other major projects.
The initiative, which was announced in a memorandum to all departmental offices, includes:
1. Establishing a project management tracking and control system for all projects valued at $20 million or more in total costs;
2. Placing projects with significant issues or emerging problems on a Chief Operating Officer's Watch List, with potential funding control and personnel consequences; and
3. Creating a strong project management organization in the office of the Chief Financial Officer.
In the memorandum, Glauthier noted "there are outstanding examples within the department of first-rate facilities completed or under construction which have met, or are meeting, their defined schedules and budgets." These include the Advanced Photon Source (at Argonne National Laboratory southwest of Chicago), Brookhaven National Laboratory's Relativistic Heavy Ion Collider near Upton, the Fermilab Main Injector (near Batavia IL), the B-Factory, the PUREX and the Exploratory Studies Facility of Yucca Mountain, the SRS Engineering Support Facility, the SNL Power Systems modifications, the Solar Energy Research Facility and the National Ignition Facility.
"Unfortunately, there are also projects that have been managed poorly," Glauthier continued. "Results from independent external and internal project reviews undertaken this past year indicate serious systemic issues needing correction. These steps will help get these projects back on track and cut down on the number of future problems."
Today's announcement builds on recent DOE management reforms. Earlier this year, Secretary Richardson announced a reorganization plan which clarified responsibility and accountability for program and project performance throughout the department. The department has converted 80 percent of its Management and Operation and Management and Integration contracts to performance-based contracts and has also requested that the National Research Council of the National Academy of Sciences undertake an independent evaluation of DOE's project management, the results of which are expected to be released soon.
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