Modernizing our operations means rethinking old ideas about what works and what doesn’t. We are an independent broker conducting analysis for the Administrator on cross-cutting issues and translating that analysis into options. This allows NNSA leadership to make decisions from a set of well-developed and vetted options and ensures that NNSA’s work reflects the Administration’s priorities and the President’s budget request.
|Mission||Statutory Requirement||Congressional Reports||Policies||Accomplishments||Related Topics|
The Office of Cost Estimating and Program Evaluation provides the Administrator with independent, data driven analysis on all aspects of the nuclear security enterprise, leading to better mission planning and performance.
Accurately estimating costs, assessing alternatives, and evaluating NNSA’s program performance are vital to national security and the responsible expenditure of taxpayer dollars. CEPE is responsible for conducting independent cost estimates, leading the program review to build NNSA’s multi-year budget, establishing a cost collection database similar to the Department of Defense’s system, and providing independent review related to analyses of alternatives and technology readiness assessments.
The National Defense Authorization Act, 2014 (NDAA) amended the NNSA Act to establish CEPE as an independent cost and resource analysis capability for the NNSA. NNSA developed its CEPE implementation plan in coordination with the Office of the Secretary of Defense, Cost Assessment and Program Evaluation (CAPE) and in consultation with Congressional staff. CEPE is a key reform advocated by the Augustine-Mies Congressional Panel on the NNSA Governance to established trusted independent cost and resource analysis capability within the NNSA.
In FY 2016, CEPE recognized its one-year anniversary as a direct report to the Office of the Administrator. The office has hired 12 full time federal analysts and has an approved implementation plan for a total of 18 federal staff by the end of FY 2017. The office and federal staff are all located in Washington, D.C., and consist of senior cost estimators, program evaluators, systems engineers, one deputy director, and one SES director.
Consistent with the functional direction contained in the FY 2014 NDAA, Section 3112, CEPE is responsible for the following major functional areas:
Advise the Administrator on policies and procedures for cost analysis and estimation. Conduct independent cost estimates (ICEs) and evaluate cost and schedule baselines for major acquisition programs and projects. ICEs offer NNSA the ability to verify and validate program baseline estimates by providing unbiased and objective comparisons for, and assessments of, the reasonableness of the baseline estimate. ICEs have been recognized as a best practice by both federal and industry organizations, including the Government Accountability Office (GAO), DoD, and the Defense Acquisition University. CEPE also reviews Selected Acquisition Reports (SARs) on nuclear weapon life extensions and manages Congressional notifications of cost overruns.
Review and comment on policies and procedures for setting requirements for the future-years nuclear security program (FYNSP); prioritize and estimate the funding required for that program; and review it on an annual basis to ensure that the program is accurate and thorough. Advise on programmatic and fiscal year guidance, and manage the annual program review. Review the FYNSP for accuracy and thoroughness and report to Congress on programmatic deviations.
Cost Data Collection:
Create procedures, processes, and policies for collecting and sharing cost data. Develop a cost data collection system similar to the DoD CAPE Defense Cost Analysis Resource Center (DCARC) data collection and access system.
Technology Readiness Assessments:
Advise on policies and procedures for developing technology readiness assessments for major acquisition programs. Review technology readiness assessments for such programs to ensure that such programs are meeting levels of confidence associated with appropriate overall system performance.
Analyses of Alternatives:
Advise on policies and procedures for analyses of alternatives (AoA) for major acquisition programs, which provide a method of impartially and thoroughly examining all viable solutions for an identified capability gap. Independently review AoAs to ensure they meet GAO best practices and the analysis is unbiased, thorough, and sound.
NNSA policies and business operating procedures establish, communicate, and institutionalize policies, requirements, responsibilities, and procedures specific to NNSA elements and contractors.
Responsibilities for Independent Cost Estimates NNSA Policy 28, February 24, 2016
To establish policy and responsibilities for conducting Independent Cost Estimates (ICEs) and Independent Cost Reviews (ICRs) within the U.S. Department of Energy’s (DOE) National Nuclear Security Administration (NNSA). This NAP establishes roles and responsibilities for conducting
ICEs and ICRs on acquisition programs and capital asset projects.
Analysis of Alternatives, NNSA Business Operating Procedure 03-07, March 14, 2016
This Business Operating Procedure (BOP) describes the process for conducting an Analysis of Alternatives (AoA). AoAs provide decision-makers with reliable and objective assessments of options for meeting mission needs gaps.
The Office of Cost Estimating and Program Evaluation provides data-driven analysis, guidance, and independent analytical advice to the NNSA and the DOE to improve mission planning and execution. Since 2014, CEPE’s significant analytical accomplishments and efforts are improving the way NNSA conducts business and NNSA’s ability to budget and plan, thereby raising confidence in NNSA’s ability to execute its programs.
|Livermore Valley Open Campus|
|Pantex Plant Administrative Support Complex|
|Emergency Operations Center at Y-12 National Security Complex|
|Fire Station at Y-12 National Security Complex|
|Emergency Operations Center at Lawrence Livermore National Laboratory|
|Electro-purification-refining of uranium|
|Review of Safeguard Transporter Replacement vehicle|
A capability based assessment, integrated across the NNSA Enterprise to review specific capabilities and supporting infrastructure that NNSA requires over the next 25 years to meet strategic commitments.
Primary role is to collect current and historical cost, technical, and programmatic data on Major Atomic Energy Defense Acquisition (MAEDA) programs to support independent cost estimates. Historical cost, technical, and programmatic data are critical to developing reliable and accurate cost projections.
DOE G-413.3-4A, Technology Readiness Assessment Guide
The Guide assists individuals and teams involved in conducting Technology Readiness Assessments (TRAs) and developing Technology Maturation Plans (TMPs) for the DOE capital asset projects subject to DOE O 413.3B. Supersedes DOE G 413.3-4.
This Department of Energy (DOE) Guide is for use by all DOE elements. This Guide assists individuals and teams involved in conducting Technology Readiness Assessments (TRAs) and developing Technology Maturation Plans (TMPs) for the DOE capital asset projects subject to DOE O 413.3B, Program and Project Management for the Acquisition of Capital Assets, dated 11-29-10. This Guide presents a tailored version of a National Aeronautics and Space Administration (NASA) and Department of Defense (DoD) technology readiness assessment model to assist in identifying those elements and processes of technology development required to ensure that a project satisfies its intended purpose in a safe and cost-effective manner that will reduce life cycle costs and produce results that are defensible to expert reviewers. DOE Guides are part of the DOE Directives Program and are issued to provide supplemental information and additional guidance regarding the Department’s expectations of its requirements as contained in rules, Orders, Notices, and regulatory standards. Guides may also provide acceptable methods for implementing these requirements but are not prescriptive by nature. Guides are not substitutes for requirements, nor do they replace technical standards that are used to describe established practices and procedures for implementing requirements.
NNSA developed its CEPE implementation plan in coordination with the Office of the Secretary of Defense, Cost Assessment and Program Evaluation (CAPE) and in consultation with Congressional staff. CEPE is a key reform advocated by the Augustine-Mies Congressional Panel on the NNSA Governance to established trusted independent cost and resource analysis capability within the NNSA