Critical analysis of the Hanford spent nuclear fuel project activity based cost estimate
In 1997, the SNFP developed a baseline change request (BCR) and submitted it to DOE-RL for approval. The schedule was formally evaluated to have a 19% probability of success [Williams, 1998]. In December 1997, DOE-RL Manager John Wagoner approved the BCR contingent upon a subsequent independent review of the new baseline. The SNFP took several actions during the first quarter of 1998 to prepare for the independent review. The project developed the Estimating Requirements and Implementation Guide [DESH, 1998] and trained cost account managers (CAMS) and other personnel involved in the estimating process in activity-based cost (ABC) estimating techniques. The SNFP then applied ABC estimating techniques to develop the basis for the December Baseline (DB) and documented that basis in Basis of Estimate (BOE) books. These BOEs were provided to DOE in April 1998. DOE commissioned Professional Analysis, Inc. (PAI) to perform a critical analysis (CA) of the DB. PAI`s review formally began on April 13. PAI performed the CA, provided three sets of findings to the SNFP contractor, and initiated reconciliation meetings. During the course of PAI`s review, DOE directed the SNFP to develop a new baseline with a higher probability of success. The contractor transmitted the new baseline, which is referred to as the High Probability Baseline (HPB), to DOE on April 15, 1998 [Williams, 1998]. The HPB was estimated to approach a 90% confidence level on the start of fuel movement [Williams, 1998]. This high probability resulted in an increased cost and a schedule extension. To implement the new baseline, the contractor initiated 26 BCRs with supporting BOES. PAI`s scope was revised on April 28 to add reviewing the HPB and the associated BCRs and BOES.
- Research Organization:
- Fluor Daniel Hanford, Inc., Richland, WA (United States)
- Sponsoring Organization:
- USDOE Office of Environmental Restoration and Waste Management, Washington, DC (United States)
- DOE Contract Number:
- AC06-96RL13200
- OSTI ID:
- 10148482
- Report Number(s):
- DOE/RL-98-40; ON: DE99050812; BR: EW3130000; TRN: AHC29927%%137
- Resource Relation:
- Other Information: PBD: 29 Sep 1998
- Country of Publication:
- United States
- Language:
- English
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