Performance Management for Environmental Remediation Projects. William C. Lattin, PMP US Department of Energy Idaho Operations Office

Transcription

1 Performance Management for Environmental Remediation Projects William C. Lattin, PMP US Department of Energy Idaho Operations Office

2 Course Objectives Awareness of the types of cost estimating used to support the project lifecycle Awareness of the process used to allocate budget to support the project Awareness of techniques used to manage project funding in both commercial and government sectors Awareness of specific scheduling techniques that are unique to the application area Awareness of progress reporting requirements required by stakeholders

3 Environmental Remediation Projects Environmental remediation project refers to engineering/construction projects designed to remedy or restore environmental media, particularly soil or groundwater degraded by chemical compounds (or elements) that may pose a threat to human health or the environment. Havranek,, Modern Project Management Techniques for Environmental Remediation Projects, St Lucie Press

4 Performance Management Planning, measuring and evaluating the progress of a project towards meeting its stated objectives.

5 History of ER Projects Landmark cases that resulted in environmental legislation: Love Canal, 1978 Times Beach, Mo. W.R. Grace, Woburn, MA ( A Civil Action )

6 Love Canal Hooker Chemical (now Occidental Chemical Corp.) used as hazardous waste landfill between 1942 and In 1953, 16-acre site turned over to Niagara Falls Board of Education Extensively developed, including an elementary school and numerous homes.

7 Love Canal (cont d) Problems with odors, residues, and illness from 1950s to 1970s. Contamination of groundwater with dioxin and other contaminants Surface water runoff into Niagara River and water treatment plant intake Contaminated nearby creeks and sewers

8 Love Canal (cont d) In 1978 and 1980, two emergency actions authorized by EPA 950 families evacuated Leachate collection and treatment Landfill containment On National Priorities List 1983

9 Love Canal (cont d) Six Stage Long-term Remedial Action landfill containment, leachate collection, treatment, disposal excavate and store sewer and creek sediments final treatment and disposal of sediments remediate elementary school soils Home maintenance and assistance buyout of homes and other properties

10 Love Canal (cont d) Cleanup resulted in: 62,240 tons of dioxin-contaminated sediment 19,000 gallons DNAPL collected 12,000 gallons DNAPL filtered 240,000 pounds carbon filter waste 3 MG/yr groundwater treated 260 homes rehabilitated and reinhabited OCC responsible for continued operation and maintenance of leachate treatment facility and groundwater monitoring.

11 Times Beach, Missouri 1-square mile, unpaved roads sprayed with waste oil for dust control in early 1970s. Meramec River flooded in 1982, resulted in evacuation of the townsite EPA found dioxin, CDC recommended permanent relocation of residents all relocated Cleanup complete 1997 Restored to a State Park in 1999 Removed from NPL in 2001

12 Times Beach (cont d) Response actions included: construction of levees excavation and treatment of contaminated soil, structures and debris demolition and disposal of uncontaminated structures and debris construct and operate onsite thermal treatment unit

13 Times Beach (cont d) Results of remediation project permanent relocation of residents and businesses (~$30M) 265,000 tons of dioxin contaminated materials transported to incinerator for treatment Site restored to State Park and bird sanctuary

14 ER Projects in the United States Future costs for cleanup estimated between $600B and $1,000B Corporate liabilities estimated at $250B In 1989, insurance companies spent $470B on cleanup ($410B on legal fees!) 5000 RCRA sites have known releases; 50% will need remediation.

15 Superfund Superfund legislation resulted from environmental incidents such as Love Canal and Times Beach. Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) identifies potentially responsible parties reimbursement of EPA for costs provides for legally enforceable milestones establishes fund for clean-up actions

16 Other Environmental Regulations Affecting ER Projects Clean Air Act (CAA) - Title V, PTC Clean Water Act (CWA) - NPDES, SWPP Resource Conservation and Recovery Act (RCRA) - Operating Permits Toxic Substances Control Act (TSCA) National Environmental Policy Act (NEPA) EA, EIS

17 Environmental Remediation Project Lifecycle Phase 1: Concept - Identify releases; characterize nature, extent, and rate of release. Phase 2: Development - Evaluate alternatives; select remedy; design remedy. Phase 3: Implementation - Implement remedy Phase 4: Termination - maintenance and surveillance of the site.

18 Lifecycle Stages For ER Projects Phase 1: Phase 2: Phase 3: Phase 4: RCRA Facility Assessment (RFA) Facility Investigation (RFI) Corrective Measure Study (CMS) Public Input Corrective Action Decision (CAD) Corrective Measure Implementation (CMI) Post-closure Monitoring Verification CERCLA Preliminary Assessment/ Site Inspection (PA/SI) Remedial Investigation (RI) Feasibility Study (FS) Public Input Record of Decision (ROD) Remedial Design (RD) Remedial Action (RA) (RD/RA Work Plan) Operations & Maintenance (O&M) Verification

19 Nature of Environmental Remediation Projects Similarities to typical construction projects: Site preparation activities infrastructure construction of facilities many of the same project management processes may be used unaltered

20 Nature of Environmental Remediation Projects (cont d) Differences between ER and other projects: Mission need often driven by environmental regulations and consent orders. Scope definition is often difficult Schedule is driven by legally enforceable milestones Objective is cost avoidance vs cost benefit Operational vs capital funding

21 Performance Management Planning Processes Project Initiation Scope Planning Scope Definition Scope Verification Scope Change Control

22 Scope Planning & Definition Consists of input from site evaluations, RI/FS or CMS. Formalized in Record of Decision Clean-up levels determined by: regulations negotiations available technologies

23 Performance Management (cont d) Time Management Activity Definition Activity Sequencing Activity Duration Estimating Schedule Development Schedule Control

24 Critical Path & Schedule Development Develop logic network diagram (PERT,CPM) Determine activity duration using probability (PERT) Calculate critical path Effect of enforceable milestones Pegged dates Often not logically tied to project

25 Performance Management (cont d) Cost Management Resource Planning Cost Estimating Cost Budgeting Cost Control

26 ER Project Cost Estimating Early estimates- order of magnitude (-25% to +75%) - analogous estimate (top-down) Remedial system design - budget estimate (-10% to +25%) Bottom-up estimate - estimating cost of each project work activity. Most accurate - (-5% to + 10%)

27 ER Cost Estimating (cont d) Use of basic cost estimating techniques Activity-based cost estimating Use of jury review to identify risks, cost range Computer modeling Generate risk adjusted cost estimate

28 Performance Management Project Funding (cont d) Up-front financing - performance bond required of some NRC projects EPA vs PRP funds Appropriated funds - federally funded projects Operational funding vs capital

29 Type of Funding Capital funding used for improvements to land or facility - multi-year commitment Operations funding typically year-to-year Operations funded activities must compete with other priority activities Congressionally appropriated funds may not be mixed - color of money problems

30 Performance Management (cont d) Project Quality Management Quality Planning Quality Assurance Quality Control

31 Project Quality Assurance Standards of Quality must be defined and achieved in QAP Cleanup levels determined and negotiated up front - defined acceptance criteria Chain-of-custody protocol

32 Performance Management (cont d) Risk Management Risk Identification Risk Quantification Risk Response Development Risk Response Control

33 Risk Identification and Quantification Project risk is the cumulative effect of uncertain occurrences adversely affecting project objectives. Probable consequences in terms of scope, quality, time and cost. Risk event status = risk probability x amount at stake Expected value = summation of all risk event status Often used as contingency budget

34 Performance Management (cont d) Progress Reporting Requirements Requirements often dictated by external stakeholders Report progress against established milestones Evidence of committed budget Internal reporting and trend analysis Use of project contingency funds

35 Use of Earned Value for ER Projects Measures quantifiable objectives (cost & schedule targets) Performance objectives often hard to quantify CV and SV CV = BCWP - ACWP SV = BCWP - BCWS

36 Analysis of Variances Ahead of schedule/ under budget unrealized project risks inflated estimate Ahead of schedule/ on budget planned contingency not used Behind schedule/ on budget lack of resources - probably overspend Behind schedule/ over budget more difficult than anticipated; overly optimistic; scope creep

37 Use of Contingency Important to track May mask scope problems Contingency log Contingency Variance budgeted contingency/actual contingency used negative variance may indicate excessive use of contingency vs project completion

38 Performance Management for ER Projects *SUMMARY*