Contractor Assurance System Martha Michels Deputy COO Accelerator

Contractor Assurance System Martha Michels, Deputy COO Accelerator Readiness Review February 18, 2020

Requirement for Contractor Assurance • Fermilab is a federal-government-owned, contractor-operated (GOCO) laboratory under the stewardship of the DOE Office of High-Energy Physics (HEP). • Fermilab is managed and operated by Fermi Research Alliance (FRA), LLC, under Prime Contract DE-AC 0207 CH 11359 with the U. S. Department of Energy (DOE) Office of Science (SC). • The Prime Contract's Clause H. 13, Contractor Assurance System, requires FRA to develop a Contractor Assurance System (CAS) that is owned jointly by the three parties. 2 M. Michels | CAS for the ARR 2/18/2020

Requirements in H. 13 • • • 3 A comprehensive description of the assurance system with processes, key activities, and accountabilities clearly defined. A method for verifying/ensuring effective assurance system processes. Third party audits, peer reviews, independent assessments, and external certification may be used. Timely notification of the DOE-Fermi Site Office (FSO) Contracting Officer of significant assurance system changes prior to changes. Rigorous, risk-based, credible self-assessments, and feedback and improvement reviews to assess and improve Fermilab’s work process and to carry out independent risk and vulnerability studies. Identification and correction of negative performance/compliance trends before they become significant issues. Integration of assurance system with other management systems including Integrated Safety Management (ISM). Metrics and targets to assess performance, including benchmarking of key functional areas with other DOE contractors, industry and research institutions. Assure development of metrics and targets that result in efficient and cost-effective performance. Continuous feedback and performance improvement. An implementation plan (if needed) that considers and mitigates risks. Timely and appropriate communication to the FSO Contracting Officer, including electronic access, of assurance related information. M. Michels | CAS for the ARR 2/18/2020

Recent Changes to our CAS Program • In the past we’ve defined this by management systems – Fair approach, but not broad enough • We’ve recently made four important changes: 1. Refined management systems 2. Added critical performance indicators & metrics 3. Summarized in a simple dashboard 4. Changed the Assurance Council to be a smaller, senior level group 4 M. Michels | CAS for the ARR 2/18/2020

Refined Management Systems • Reduced our management systems to 10 - only those functions that truly cut across the entire organization or are heavily regulated Management Systems Finance Procurement ESH Quality Engineering IS/Cyber Partnerships Physical Security & Emergency Management Property & Infrastructure HR 5 M. Michels | CAS for the ARR 2/18/2020

Added Key Performance Indicators & Metrics KPIs YTD Funding vs. YTD Spending 6 M. Michels | CAS for the ARR Status Metrics Management Systems (old CAS) -Correction of FY 19 issues -Completion of scheduled assessments -Reporting FY 20 issues in i. Track PEMP/CAP/Compliance Review Status -FY 19 CAP Items -FY 20 PEMP Notables Project Input (Including Construction projects) Safety and Security Risk Contract Deliverables Accelerator Performance Detector Status , his t e av AS h Q ill St by led ad he Metric Under Development 2/18/2020

Summarized in a simple dashboard • Executive Dashboard that will be used by all of our stakeholders • A goal is to display this dashboard automatically on each executive’s desktop – stretch goal • Fermi. Dash exists – we’re doing some tweaking 7 M. Michels | CAS for the ARR 2/18/2020

Updated the Assurance Council Membership • We’ve restructured the assurance council with the expertise to watch all KPIs and the authority to act when needed (Chief/D/S Head level) – – – – 8 Accelerator Operations (Head, AD) Science (Head, ND) Projects (CPO) Financial Ops (CFO) Business Ops (COO, Lead) Strategic Partnerships/Governance (CSP) FSO - observer Advisors (Legal, Risk, CSO, QA, etc. ) M. Michels | CAS for the ARR 2/18/2020

Benefits of CAS and our updated process • Establishes expectations KPIs (expectations) measured using metrics • Measures performance more broadly • Brings a greater level of accountability for performance System Improved AC reviews performance • Gives ability to report status to our stakeholders • Revised process produces formal status report for the director with recommended actions 9 M. Michels | CAS for the ARR Feedback Given Status gathered and briefed to the Director & other stakeholders 2/18/2020

Summary/Questions • Our CAS program is maturing – Senior leadership has a better understand – Lab Director is actively engaged • We have support from our Site Office • We will undergo a review later this year which will highlight additional OFIs Questions? 10 M. Michels | CAS for the ARR 2/18/2020