Oversight Procedure 34 -Project Schedule Review. Competent scheduling is necessary for sound project planning and control of costs and risks.

Transcription

1 U.S. DOT Federal Transit Administration TPM-20 Office of Engineering Project Management Oversight Oversight Procedure 34 -Project Schedule Review 1.0 PURPOSE The purpose of this Oversight Procedure is to describe the review, analysis, recommendation procedures and reporting requirements expected by Federal Transit Administration (FTA) from the Project Management Oversight Contractor (PMOC) with regard to the completeness and reliability of the Grantee s project schedule; to assess its usefulness as a management tool; to assess the extent to which the project schedule reflects the project scope, cost, management practices and method of project delivery. 2.0 BACKGROUND Competent scheduling is necessary for sound project planning and control of costs and risks. 3.0 OBJECTIVES FTA s objective is to determine whether the sponsor s project schedule is reasonable given the project conditions. 4.0 REFERENCES The statutes, regulations, policies, guidance documents and circulars in OP01 are the principal, but by no means the only, references to Federal legislation, regulation and guidance with which the PMOC should review and develop a solid understanding as related to the Grantee s project work being reviewed under this OP. 5.0 GRANTEE SUBMITTALS In advance of performing the review, the PMOC shall meet with the Grantee and its staff and consultants, discuss the purpose of the review, and obtain information as required, including but not limited to: Schedule Assumptions (see sample in Appendix B below); Description of the schedule development and control process and procedures; Latest schedules in electronic format; Supporting scope and cost information. Page 1 of 6

2 6.0 SCOPE OF WORK This review may be performed during project planning, design or construction. The work order may specify the extent of the review, add re-assessments or specialized analyses. The PMOC shall assess and evaluate the Grantee s schedule and its plan for schedule control. Consider the adequacy of the Grantee s scheduling staff and software for the size and complexity of the project. Validate the usefulness of the schedule as a project management tool, consider the level of definition of the schedule and elements within the schedule for appropriateness to the project phase; identify schedule uncertainties and problems, as well as constraints to sequencing or duration. The PMOC shall review the Grantee s schedule control including internal procedures and schedule reviews. Consider the timing and adequacy of such reviews to determine if the schedule is sufficiently developed, properly maintained, and consistent with the progress of the project. Review the Grantee s processes and procedures for developing, monitoring and changing the schedule, including approvals if a significant change in the revenue operations date is required. The PMOC shall make suggestions for improvement of the schedule and proactively help the Grantee solve schedule problems. In a report, the PMOC shall document its findings, professional opinions and recommendations. The PMOC shall: 1) Evaluate the Grantee s schedule and the Grantee s plan for schedule control: a) Check for consistency with FTA s Project & Construction Management Guidelines; b) Check for consistency with the Grantee s schedule assumptions (Appendix B); c) Items in 6.1 and 6.2 below; d) Major elements of the critical path; assess the validity and reasonableness of activity durations on critical path as well as critical path schedule contingency (float); e) Project calendars used in the schedule, referring to Appendix C; f) Schedule contingency - Evaluate schedule elements that are functionally equivalent to schedule contingency but not identified as such, including extended durations, forced float, dummy activities or positive lag values; 2) Describe critical areas of concern and risks. Provide a list of risks associated with the schedule; 3) Provide recommendations and time frames for adjustment of the schedule; If requested by the TOM, and to the extent specified in the work order, the PMOC shall provide a written comparison of the proposed schedule with similar project(s) and analyze the differences. Draw conclusions and provide recommendations based on this comparison. Page 2 of 6

3 6.1 Technical review The schedule shall be sufficiently developed in detail to determine the validity of the project critical path to revenue operations. It should break out at a minimum, project milestones, FFGA related work, planning and environmental, public involvement, preliminary engineering, value engineering, final design, right-of-way, permits, third party agreements, public and private utility relocations, safety and security, construction, trackwork, train control systems, vehicles, system integration, communications, fare collection and startup and testing in sufficient detail to confirm the reasonableness of durations and sequencing, and to estimate the probability of schedule slippage. 1) Schedule Format: Is the schedule format consistent with relevant, identifiable industry or engineering practices. Does it use software appropriate for the size and complexity of the project; 2) Characterize the structure, quality and detail of the schedule. 3) Is the schedule mechanically correct and complete, free of material inaccuracies or incomplete information; 4) Describe how the project Work Breakdown Structure has been applied in the development of the schedule; 5) Phasing, sequencing: a) Does the schedule contain activities that adequately define the entire scope of the work being performed; b) Is the schedule sufficiently developed to determine the validity, stability and reasonableness of the project critical path. Are near critical paths easily identifiable and reasonable in terms of their logic and proximity to the project critical path; c) Are the schedule assumptions for project phase durations reasonable; d) Are the project schedule structure and sequencing logical and reasonable; e) Is sequencing, through the use of predecessors and successors, identified for all material tasks. Is the work sequenced efficiently, i.e. can/should work be conducted in parallel that is shown in sequence; f) Is the use of constraints identifiable, justified and reasonable; g) Are work areas identified in construction and properly sequenced from the appropriate predecessor activities (i.e., right-of-way acquisition, permitting, etc.); 6) Hierarchy of schedule elements is evident. a) Is a top-level summary included to facilitate understanding of phases or groups of activities; b) Is the schedule detail beneath the hammock or summary level task based; 7) Characterize the extent to which the schedule has been cost/resource loaded 8) Schedule contingency: Discuss thoroughly the exposed and hidden (patent and latent) contingency in the schedule, including amounts and how it is expressed in the schedule Page 3 of 6

4 i) Develop a bar chart to illustrate the placement of this contingency across the project design phase, and across the major contract packages during construction; ii) Describe the adequacy of proposed contingency at milestones; iii) Describe the PMOC s approach to identifying schedule hidden contingency, e.g. talking with the Grantee s scheduler, etc. b) Is the use of constraints identifiable and reasonable; 9) Describe the Grantee s schedule control methods; the approach to and use of scheduling tools, such as scheduling software, Grantee procedures for schedule change and update, use of a work breakdown structure, assignment of staff responsibility for schedule, cost loading, resource loading, etc. 6.2 Project Activities and Constraints 1) Schedule sequencing: a) Does the schedule follow an expected work sequence, as in the following example: Note that a full schedule will contain significantly more detail, and the work efforts may overlap in time: i) engineering (preliminary, value, final design) ii) right-of-way acquisition iii) permitting, third party agreements iv) gas, electrical, storm, sewer, water utility lines v) guideway improvements vi) construct station platforms and finishes vii) trackwork viii) systems components - communications, signals ix) traction electrification x) startup and testing xi) fare collection b) that occur concurrently identified and reasonably sequenced in the schedule to assure similar work activities can be accomplished with available labor and materials; c) Does phasing due to planned right-of-way acquisition provide sufficient time for efficient use of resources; d) Are the durations and logic reasonable for temporary construction and physical construction constraints, such as transportation or site access restrictions; e) Are project calendars appropriately defined and utilized, including allowances for seasonal weather variations;; f) Have labor and material availability been factored into construction durations; 2) Is the schedule resource loaded; Page 4 of 6

5 a) Do quantities and costs as defined in the cost estimate match the resources/costs assigned to the activities in the schedule; 3) Schedule elements: a) Does the schedule reflect the project scope that is described in the approved environmental document; b) Does the schedule include adequate time and appropriate sequencing for : i) Reviews; (1) Required FTA-related environmental, risk assessment, PMP reviews, readiness reviews at designated milestones, and grant approvals; (2) Project reviews by applicable local, state and federal jurisdictions and affected third parties; ii) Agreements; (1) Right-of-way acquisition; household/business relocations; (2) Utilities relocation; (3) Railroad purchase and/or usage; (4) Interagency Agreements; iii) Funding time frames and/or milestones for FTA and non-fta sources; iv) Procurement and manufacturing durations for equipment and vehicles, especially lead times for Long Lead Items, are adequate and complete; v) Procurement of design contracts for civil/facilities, systems; vehicles; vi) Performance of design contracts to produce 100 percent complete documents prior to bidding; vii) Bid and award periods reflect the required sequencing and durations for the selected project delivery method; viii) Construction processes and durations are adequate and complete, and allow schedule contingency for potential delays; including inter-agency work; utility relocation; civil, architectural, and systems work; Grantee operations and maintenance mobilization; and integrated pre-revenue testing. 7.0 REPORT, PRESENTATION, RECONCILIATION The PMOC shall provide FTA with a written report of its findings, analysis, recommendations, and professional opinions, including a description of the review activities undertaken, as well as supporting diagrams, calculations, etc. After FTA approval, the PMOC may share the report with the Grantee. In the event that differences of opinion exist between the PMOC and the Grantee regarding the PMOC s findings, the FTA may direct the PMOC to reconcile with the Grantee and provide FTA with a report addendum covering the agreed modifications by the Grantee and PMOC. Page 5 of 6

6 The report formatting requirements of OP 01 apply. When necessary, PMOC shall perform data analysis and develop data models that meet FTA requirements using Microsoft Office products such as Excel and Word and use FTA-templates when provided. The PMOC may add other software as required but documentation and report data shall be made available to FTA. Page 6 of 6

7 APPENDIX A Acceptable Quality Level DESIRED OUTCOME 1 The PMOC shall validate the usefulness of the project schedule as a project management tool. 2 FTA and the PMOC shall have full understanding of the Grantee's project schedule, including its critical path, durations, logic, fit with proposed project scope and cost, fit with review periods and funding milestones. PERFORMANCE REQUIREMENT R1a. The PMOC shall develop and document a process for review and analysis of a Grantee's project schedule. R1b. The PMOC shall use its process and project management judgment to validate the usefulness of project schedule R2a. The PMOC shall provide FTA with its opinion as to the completeness and level of detail of the schedule relative to the project phase. R2b. The PMOC shall provide FTA with an opinion as to the reasonableness of assigned activity durations. CHECK LIST ACCEPTABLE QUALITY LEVEL Q1a. Process exists and has been followed. Q1b. Assessment must be made Q2a. Professional opinion that the schedule is complete and the level of detail is appropriate for the stage of the project. Q2b. Professional opinion of the reasonableness of assigned activity durations. PERFORMANCE MEASURE M1a. Evidence of a documented process. M1b. Documented assessment of the project schedule as a useful project management tool. M2a. Documented evidence of a thorough review by PMOC for completeness and level of detail of the schedule, supported by professional opinion. M2b. Documented evidence of a thorough review of assigned activity durations for reasonableness by PMOC, supported by professional opinion. MONITORING METHOD MM1a. Periodic MM1b. Periodic MM2a. Periodic MM2b. Periodic R2c. The PMOC shall provide FTA with an opinion as to the reasonableness of the critical path, logic and construction sequencing applied. Q2c. Professional opinion of the reasonableness of logic, sequencing and critical path. M2c. Documented evidence of a thorough review of the reasonableness of the critical path, logic and construction sequencing applied by PMOC, supported by professional opinion MM2c. Periodic 3 The PMOC shall identify risks and potential impacts in its reports to the FTA. 4 The PMOC shall document its findings, professional opinions, and recommendations in a report to the FTA. R2d. The PMOC shall review and provide FTA with an opinion as to Grantee's schedule control process, procedures and reviews and Grantee's process for monitoring and making necessary schedule changes, including approvals, where a change in ROD is evident. R3. The PMOC shall clearly identify potential risks and render its professional opinion on their potential impacts on the scope, cost, and schedule of the Project. R4. The PMOC shall present its findings, conclusions, and recommendations to FTA and reconcile other reports and those recommendations with the Grantee to the extent possible. Q2c. Professional opinion of Grantee's schedule control and schedule revision process. Q3b. Minimum of 90% of identifiable risks are documented. Q4. Reports and presentations are professional, clear, concise, and well written. The findings and conclusions have been reconciled with other PMOC reports and have been reconciled with Grantee to the extent possible. M2c. Documented evidence of a thorough review of Grantee's schedule control and schedule revision process, supported by professional opinion. M3. Identified risks and potential project impacts on project scope, cost, and schedule. M4. PMOC's findings, conclusions, recommendations, and presentation. MM2c. Periodic MM3b. Periodic MM4. Periodic review by FTA or its OP 34 Project Schedule Review Page A-1

8 APPENDIX B Sample Format Schedule Assumptions (These should be tailored to the project; items shown below are for example) SCHEDULE ASSUMPTIONS DURATIONS 1. Request for entry to PE NEPA Design Package, Cost Estimate, Schedule PMP and all sub-plans Readiness Review Financial Review 2. Preliminary Engineering 1 DEIS Approval FEIS Record of Decision 2 Agency request months from completion of % design to 1 st submittal to FTA FTA review and approval of final EIS for publication estimated at months Publish date to issuance of ROD set at calendar days PE Value Engineering (within months of start of PE) Design Package, Cost Estimate, Schedule PMP and all sub-plans Risk Assessment ( month duration) To meet schedule Risk Assess shown as overlapping completion of PE by weeks Readiness Review Financial Capacity Assessment (by FMO) FTA approval to enter Final Design ( month duration) Submittal of FD application concurrent with latest of completion of VE, Risk and ROD Approval by FTA to enter FD shown at months after submittal of application 3. Final Design 3 Real Estate Acquisition Utility work Design Package, Cost Estimate, Schedule PMP and all sub-plans Risk Assessment Refresh and Readiness Review LONP 4 Completion of 100 percent bid documents 4. Bid and Award of Construction Packages Bid package A, B, C, etc. Prepare bid documents, issue bid documents 1 Upon FTA s approval to enter preliminary engineering (New Starts), pre-award authority is extended to project sponsors to incur costs for preliminary engineering work. 2 Completion of the NEPA process triggers pre-award authority for real estate acquisition and household/business relocations. 3 FTA s approval to enter final design triggers pre-award authority to incur costs for final design work and utility relocations. 4 A Letter of No Prejudice (LONP) is an authorization by FTA that allows project sponsors to incur costs for certain specified project activities without losing eligibility for future FTA grant assistance. The project sponsor must meet all Federal requirements prior to incurring costs covered by the specific LONP in order to be reimbursed if and when FTA awards the project a construction grant agreement. LONP is a discretionary form of pre-award authority, in other words, it can apply to project activities that are not covered by automatic pre-award authority. LONPs are typically not granted before approval to enter FD. OP 34 Project Schedule Review Page B-1

9 APPENDIX B Sample Format Schedule Assumptions (These should be tailored to the project; items shown below are for example) RFP and negotiations concurrent with FTA review of FFGA application 5. Full Funding Grant Agreement Submit FFGA application to FTA at completion of % design FFGA application accepted by FTA as complete concurrent with % design FTA Region, HQ and congressional review months 6. Construction Construction Section A ( month duration) Construction Section B ( month duration) Systems ( month duration) Systems for Section A finishes months after Station Architecture, Mechanical, Electrical, Plumbing, Signage ( month duration) Completes after Section A Safety Certification and Integrated Testing ( month duration) Completes after Section A 7. Start-up/Operator Training/Simulated Revenue 8. Opening OP 34 Project Schedule Review Page B-2

10 APPENDIX C Sample Calendar Description and List There are two predominant calendars in use. The majority of the physical construction activities are based on a five day work week with non-work days for holidays and weather delays. The design and other activities are on a calendar that is based on a five day work week with non-work days for holidays. Additional calendars are used in the schedule for other specific types of activities. Following is a listing of all the calendars and the activity usage of each: Calendar Name Const. 5 Day w/union Holiday & 30 weather days Number of Activities Assigned 2649 activities Number of Activities on Critical Path/ Total Duration Number of noncritical activities with less than 30 days contingency /avg. contingency Engineering/Procurement/Permit Calendar 1555 activities DTP/DTE Business Days 446 activities Standard 5 Day Work week 100 activities Winter Outage Calendar w/30 weather days 21 activities 5-Day Week, 2-shift 7-day workweek Test/Commission Yard Modification Pre-Revenue Operation Start Revenue Operations 10 tunneling activities 9 activities 54 hour Outage calendar 5 activities Weekend Outage Calendar w/30 weather days 4 activities NATM Tunneling w/union Holiday & 30 weather days 2 activities TOTAL 4801 activities OP 34 Project Schedule Review Rev. 2, March 2010 Page C-1