National Stakeholder’s Meeting on Managing For Excellence:

An Action Plan for the 21st Century Bureau of Reclamation

Implementation of the Action Plan

• Reclamation’s Action Plan Published February 2006• Implementing Action Plan

• Phase I Information Collection and Decision Making (Mar 2006 – Dec 2007)

• Phase II Implementation (2008)• Phase III Execution (2008 forward)

Scope & Nature of the Action Plan

• National Research Council Report, “Managing Construction and Infrastructure in the 21st Century Bureau of Reclamation” catalyst

• Multiple Sources Consulted– 2004 Reclamation Customer Survey– Written Input from Stakeholders– Other Reclamation Reports– ‘Lessons Learned’

• Provides The Philosophy And Underpinnings Of How Recommendations will be Formulated

Functional Areas

• Relationships With Customers & Other Stakeholders

• Policy and Organization• Engineering and Design Services• Major Repair Challenges• Project Management• Asset Sustainment• Research and Lab Services• Human Resources/Workforce

• Trudy Harlow

• Roseann Gonzales• Maryanne Bach• Mike Ryan• Rick Gold• Bill Rinne• Maryanne Bach• Larry Todd

Immediate Office of the Commissioner

*CIO reports Administratively to the Director of Administration

Following Border denotes office location:

Washington, D.C. Denver, CORegions

Chief of StaffKerry Rae (Acting)

Director, ProgramAnd BudgetRobert Wolf

Deputy CommissionerExternal & Intergovernmental Affairs

Trudy Harlow (Acting)

CommissionerBill Rinne (Acting)

Bureau of Reclamation OrganizationFebruary 6, 2006

Manager, WO Admin ServicesJanice Johnson

Public AffairsTrudy Harlow

Congressional andLegislative Affairs

Vacant

Associate DirectorRobert Quint

Regional Liaison Group

Native American Affairs

Chris Kenney

International AffairsDick Ives

Associate DirectorJames Hess

Director, WO OperationsFred Ore

Associate DirectorJennifer Gimbel

Regional Director PN Region

Bill McDonald

Regional Director, MP Region

Kirk Rodgers

Regional Director, LC Region

Robert Johnson

Regional Director, UC RegionRick Gold

Regional Director, GP RegionMike Ryan

Assistant Director, Program and Budget

Louis Mauney

Public Affairs – Denver

Peter Soeth

Director,Program and

Policy ServicesRoseann Gonzales

Program Support Services

Lilas Lindell

Land ResourcesRichard Rizzi

Power ResourcesDeborah Linke

Water & Environmental Resources Jari Beek

Contract ServiceSandi Simons

Maintenance ServicesKen Maxey

Deputy Commissioner, OperationsRegional Directors (Acting)

Deputy CommissionerPolicy, Administration and Budget

Larry Todd

Director, Management Service Office

Elizabeth Harrison

Director, Administration

vacant

Chief Information OfficeRandy Feuerstein

*

Manager, Civil Rights& EEO

Keith Kirkpatrick (Acting)

Manager,Human ResourcesAnn Gold (Acting)

Financial Policy

Doug Denardo (Acting)

Acquisition & Assistance

ManagementKarla Smiley

Business AnalysisEd Abreo

Finance & AccountingEffraim Escalante

Property & Office ServicesRoger Molinar

Director, SSLEDavid Achterberg (Acting)

Program ManagementKathy Norris

Law EnforcementVincent Parolisi

Safety & Health ServicesLinda Rowley

Dam SafetyBruce Muller

Security OfficeDonald Taussig

Washington Liaison Grp

Director, Research and

DevelopmentChuck Hennig (Acting)

DSO/ DEC Manager

Bruce Moore (Acting)

Power Liaison with COE/TVAMichael Roluti

Director, Technical Resources

Maryanne Bach

Director, TSCMike Gabaldon

Steps for Accomplishing Action Items

• Assign Task to the Appropriate Entity (completed Mar 14)

• Define the Task (substantially complete)

– Outreach Plan– Budget/Staff Needs– Milestones

• Analysis of Issues/Problems (has been initiated)

• Development of Alternatives & Recommendations

(to be completed by Dec 2007 for all items) • Decision Making (to be completed by Dec 2007 for all items)

2006 2007

Key Action Items for Stakeholders Meeting• Engineering, action items 9-16• Asset Sustainment, action items 25-28, 30• Major Repair Challenges, action item 18

Engineering & Design Services

Purpose– Develop 21st Century service model

• Maintain a Center of Engineering & Design Excellence– Re-evaluate Reclamation/Industry Standards

• Determine costs• Determine who pays

Engineering & Design Services

Key Elements:• Assess historic and present workload

– Utilize A-76 methodology• Examine and critique Reclamation and Industry standards• Analyze Unit Cost• In-house versus Outsourcing• Right Size Technical Resources of the Agency• Identify funding options consistent with the 1902 Act, as

amended • Pilot DEC and establish policies and procedures

Engineering & Design Services Action Items

9. Workload Evaluation (TSC, Regional & Area Offices)

10. Workload Evaluation (A-76, Sustain Core Capability)

11. Analyze Unit Cost: In-house Versus Outsourcing

12. Right-Size Design, Estimating, and Construction Management

13. Alternate Funding of Engineering and Design

14. Implement Design Engineering Cost Estimating Oversight

15. Establish Agency Policy for Oversight of Design and Construction Estimates

16. Analyze Reclamation’s Engineering Standards

Team Leads

• 9 & 11. Jamie Macartney, Business Resources Manager, Great Plains Region

• 10. Gayle Shanahan, Funds Manager Office Of Program and Policy Services, Denver

• 12. Jamie Macartney & Perry Hensley, Chief, Geotechnical Services Division, Denver

• 13. Larry Walkoviak, Deputy Regional Director, Lower Colorado Region

• 14-15. Bruce Moore, DSO/ DEC Manager, Denver• 16. Gerry Kelso, Area Manager, Upper Columbia Area Office

Project Plan Schedule

16. Analyze Reclamation’s Engineering Standards

Key Milestones:• Identify and review Reclamation practices for

internal and external designs• Collect and review internal policies and reports• Review external/industry design standards and

guidelines• Meet with external entities to assess design

practices• Determine best practices

12. Complete Right Sizing Process for Design, Engineering & Construction

Key Milestones:• Assess existing technical capabilities and workload

profiles (complete #9)• Identify required core capabilities and subsequent

staffing levels• Seek input on outsourcing and retaining/

consolidating/eliminating lab services (#32 &#33)• Seek input on workload categorization according to

A-76 (#10)• Summarize in-house vs. outsourcing efficiency• ID staffing levels, location, and outsourcing options

Major Repair Challenges

Purpose Overview:

• Challenges extending beyond “Managing Existing Infrastructure.”

• Three Additional Questions:– Finance– Risk Management– Innovation

17 … Loan Guarantee Authority and Implementation – Sandie Simons, Manager, Water Contracts and Repayment

Office

18 … Process and Tools to Determine “Go” or “No Go” – Tim Ulrich, Area Manager, Lower Colorado Dams Office

19 … Involving Stakeholders to Increase Value– Steven Jarsky, Manager, O&M Technical Services West,

Snake River Area Office

Major Repair Action Items

Project Plan Schedule

18 – Develop processes or measuring tools to determine whether a major repair project is warranted.

• Existing Processes• Internal Feedback• External Feedback• Need for Additional Processes• Develop Additional Processes• Alternatives and Recommendations

O&M Activity

Work Order Prepared

MaintenancePerformed

Asset Operates to Standard

Justification PreparedWith Alternatives Using

Standard Tools orMeasures

Asset Operates to Standard

RepairJustified

Asset Placed Back in Servicewith Diminished Service

New PerformanceStandard Is Established

Repair isPerformed

Asset PlacedBack In Service

Asset PlacedBack In Service

Asset RemainsIn Service

Asset Assessment

Condition DocumentedWith Impacts and Risk

To Standard Performance

StandardPerformance

Expected

Justification PreparedWith Alternatives Using

Standard Tools orMeasures

Asset Condition

Good

RepairJustified

Asset Placed Back in Servicewith Conditions Defined forRepair or New Performance

Standards Established

Repair PerformedOr Scheduled

Asset RemainsIn Service

Asset RemainsIn Service

Y

Y

Y

Y

Y

Y

N

N

N

N

N

N

Customer/StakeholderInvolvement

Review Team

Need to DefineOperatingStandards

RoutineMaintenance

or Repair

Asset Sustainment

• Purpose Overview– Reclamation will perform a thorough analysis of how its

infrastructure will be managed.• Physical and engineering• Economic

– Greatest efficiencies to be gained in this area

Asset Sustainment Action Items

25. Determine Financial Accounting for All Infrastructure

26. Determine Opportunities to Transfer O&M to Water Users

27. Opportunities for Outsourcing O&M of Reserve Works

28. Title Transfer of facilities

29. Effectiveness of O&M Planning

30. Integrate O&M Planning with the Budget Process

31. Benchmarking O&M of Water Storage and Distribution Facilities

Team Leads

25. Efraim Escalante, Executive Assistant Policy, Administration & Budget, Commissioner’s Office

26-30. Randy Chandler, Deputy Area Manager, Phoenix Area Office

31. Mike Roluti, Senior Advisor Power Liaison

Project Plan Schedule

28. Title Transfer of facilities

• Current Process– Voluntary participation– Negotiate Agreement at “field level”– Requires transfer specific legislation– Upfront Funding from Water Users– NEPA, ESA and NHPA Compliance Required– Valuation based upon Repayment and Revenue Streams to

Treasury.– Liability Conveyance is Major Benefit to Reclamation– Limited Budget Savings to date from Transfers (O&M Transfer is

where big savings comes from).• All Projects Unique with Own Complexities

• Most of “Simplest” Transfers completed– 18 Projects/Parts of Projects Transferred– 5 Transfers Authorized being Completed

Title Transfer

• Ideas for categorizing– Identify criteria & incentives where title transfer should occur

• Paid out or nearly so

• Beneficial to Government / costs are subsidized

• Conveyance facilities

• Non-significant facilities-minor diversion dams

• Agreement/Consensus that Transfer Leads to better water management

• Facilities only (No Land)

– Identify criteria where title is potential candidate but may have higher level of public interest

– Identify Procedural “barriers”

– Identify Economic/Financial barriers

26. Determine Opportunities to Transfer O&M to Water Users

• Identify facilities that can and should be transferred– Pumping plants– Conveyance facilities– Other

27. Opportunities for Outsourcing O&M of Reserve Works

• Identify facilities where O&M could be contracted out through procurement processes (bid)– Pumping Plants– Power Plants– Other

30. Integrate O&M Planning with the Budget Process

• Determine consistent meeting process where Reclamation & Water & Users discuss upcoming work & costs.

• Identify O&M costs to receive upfront and off budget

25. Determine Financial Accounting for All Infrastructure

Research & Laboratory Services

Action Items

32. Identify Opportunities for Use of Federal/Non-Federal Laboratories

33. Identify Opportunities for Keeping, Consolidating, Eliminating Reclamation Laboratories

34. Continue PART Goal Implementation for R&D

35. Re-evaluate Steering Committee to Increase Core Mission R&D

36. Assess NRC Review of Desalination R&D

8. Scenarios

Consider the scenarios discussed in Chapter 5 of the NRC Report and what refinements, if any, to Reclamation’s organizational structure may be useful in meeting future challenges under each of the scenarios. (Mar – Dec 2006)

Excerpt from Chapter 5, NRC Report

Finding:

• While the committee recognizes that the major changes suggested by the alternative scenarios are inappropriate for immediate implementation, the continuation and intensification of identified trends, as described in this report, could lead to a need for dramatic changes in future scenarios presented in this report—(1) a centrally located project management organization, (2) outsourced operations and maintenance (O&M), and (3) federal funding and local execution—provide a basis for anticipating future trends and preparing for future change.

Recommendation:

• Reclamation should consider the suggested future scenarios as a basis for analyzing longer-term trends and change.

Next Steps

• Reassessing projected timeline given identified interrelationships with other action items.

Questions…