CHARGE TO THE COMMITTEE for the DZero Cost Review

    DZero forecasts a cost overrun for their project of 1 - 2 M$.  Going
above their baselined budget will require approval from DOE.  Before the
laboratory is prepared to support a change control request for this amount,
we need to scrub the Estimated Cost to Complete the project so that the
Directorate knows the total amount of the proposed change and can be
assured
that no further changes will be required.

    You should review the DZero Estimate to Complete (ETC) document
(attached) for your assigned subproject(s).  The list of assignments
appears
at the end of this message.  You should go over each line in the ETC and
understand the basis of the estimate.  Do you believe the ETC?  Are DZero
forgetting anything or leaving anything out?

    You should form your own opinion about the contingency required for each
line in the ETC.  The contingency should depend on whether the item is
"already bought or costed" (we are looking at a Jan 31 cost estimate),
"ordered or under contract or obligated", "in negotiation", "not yet
ordered", or "not yet designed".  You should discuss the cost risks with the
DZero sub project managers.  What items do they think involve the most risk?
Do you agree with their assessment?

    DZero will also provide a "variance" document that details the use of
contingency on each subproject since the project was baselined by DOE in
January 1998.  You may want to use this as a guide to projected use of
contingency on the remaining project.  Additional information on the
contingency estimated by DZero appears in Mike Tuts PMG talk from March 1.
A list of documents and Web addresses appears below in this message.

    This review should not be concerned with the project scope.  This review
should not be concerned with the project schedule unless it seems that extra
$ may be required to make the schedule.