1. Independent Cost Review (ICR) Guide Purpose The purpose of this is to provide uniform guidance and best Independent Cost Review Guide practices for use when conducting an Independent Cost Review (ICR) of a cost estimate for work planned and executed within the DOE EM program. This Guide provides information, tools and directions which can be used to independently examine the reasonableness of a cost estimate’s quality, assumptions, and risks. This Guide applies to independent reviews of cost estimates for all phases of programs and projects executed by EM. 1.1 Introduction to this The mission of EM is to complete the safe cleanup of the environmental legacy brought about from five decades of nuclear weapons development and government-sponsored nuclear energy research. The EM program has made significant progress in shifting away from risk management to embracing a mission-completion philosophy based on reducing risk and reducing environmental liability. As an established, operating, cleanup-completion and risk-reduction program, EM is demonstrating the importance of remaining steadfast to operating principles while staying focused on the mission. The EM portfolio includes cleanup work at a number of DOE sites throughout the continental United States. This includes work at sites designated for closure as well as sites with continuing missions. Work includes: Constructing and operating facilities to treat radioactive liquid tank waste into a safe, stable form to enable ultimate disposition, Securing and storing nuclear material in a stable, safe configuration in secure locations to protect national security, Transporting and disposing of transuranic and wastes in a safe and cost effective manner to reduce risk, Decontaminating and decommissioning facilities that provide no further value, to reduce long-term liabilities and maximize resources for cleanup, Remediating soil and ground contaminated with radioactive and hazardous constituents, and Fulfilling its commitments to reduce risk and complete cleanup across all sites, for the generations to come. DOE and EM are committed to making continuous improvements in contract and project management performance. EM’s efforts to enhance contract and project management are focused on delivering results on time and within cost. To that end, it is critical that EM develop and use high quality cost estimates for many reasons—for example, to support decisions about funding one project over another, to develop annual budget requests, to evaluate resource requirements at key project milestones, and to develop Performance Measurement Baselines (PMBs). This Guide provides information and guidance which can be used to independently examine the reasonableness of a cost estimate’s quality, assumptions, and risks.
1. Independent Cost Review (ICR) Guide Purpose The purpose of this Independent Cost Review Guide is to provide uniform guidance and best practices for use when conducting an Independent Cost Review (ICR) of a cost estimate for work planned and executed within the DOE EM program. This Guide provides information, tools and directions which can be used to independently examine the reasonableness of a cost estimate’s quality, assumptions, and risks. This Guide applies to independent reviews of cost estimates for all phases of programs and projects executed by EM. 1.1 Introduction to this The mission of EM is to complete the safe cleanup of the environmental legacy brought about from five decades of nuclear weapons development and government-sponsored nuclear energy research. The EM program has made significant progress in shifting away from risk management to embracing a mission-completion philosophy based on reducing risk and reducing environmental liability. As an established, operating, cleanup-completion and risk-reduction program, EM is demonstrating the importance of remaining steadfast to operating principles while staying focused on the mission. The EM portfolio includes cleanup work at a number of DOE sites throughout the continental United States. This includes work at sites designated for closure as well as sites with continuing missions. Work includes: Constructing and operating facilities to treat radioactive liquid tank waste into a safe, stable form to enable ultimate disposition, Securing and storing nuclear material in a stable, safe configuration in secure locations to protect national security, Transporting and disposing of transuranic and wastes in a safe and cost effective manner to reduce risk, Decontaminating and decommissioning facilities that provide no further value, to reduce long-term liabilities and maximize resources for cleanup, Remediating soil and ground contaminated with radioactive and hazardous constituents, and Fulfilling its commitments to reduce risk and complete cleanup across all sites, for the generations to come. DOE and EM are committed to making continuous improvements in contract and project management performance. EM’s efforts to enhance contract and project management are focused on delivering results on time and within cost. To that end, it is critical that EM develop and use high quality cost estimates for many reasons—for example, to support decisions about funding one project over another, to develop annual budget requests, to evaluate resource requirements at key project milestones, and to develop Performance Measurement Baselines (PMBs). This Guide provides information and guidance which can be used to independently examine the reasonableness of a cost estimate’s quality, assumptions, and risks.
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