GLH Incorporated

Relationship of WBS to RBS A Real World Example Dr. Gregory T. Haugan, PMP GLH, Inc P.O. Box 730 Heathsville, VA 22473 [email protected]

New DoT Headquarters 1.35 million sq ft on 11 acres, housing 7,000 workers Construction Started Spring 2004 Staff Move-ins Begin April, 2007 Developer: JBG Cos.; General Contractors: Clark Construction, Miller & Long Architects: Michael Graves/DMJM; Interior Design: Ai It includes a 68,000-square-foot vegetated roof , “green design” principles and many security features

Early 2004

GSA Project Management Office (PMO) for the DOTHQ Project (Organizational Breakdown) GSA PMO GSA Experts

ARCH

MEP

IT

Est

DOT

LEEDs

GSA Contracting Officer

GSA Legal

Lease Admin

Life Safety Sr. Project Mgnr (Arnold Hill)

Contracts

Project Executive (John Simeon)

Contract Specialists (Jeanette Dawkins)

Project Coordinator Tenant Services (Kyu Jung)

Project Controls

Project Coordinator Construction Services (Carl Lowery)

IT

Security/ Blast

Furniture

Risk Mitigation

ePM

Master Schedule

A/E

CQM

TBD

ARA

TBD

Risk Officer

Project Controls Specialists

Project Scheduler

Ai/ Vanderweil

TBD

Project Admin

Technical Writer

Finance

Investment Banker

Attachment 4 - 03.08.04

GSA Project Management Office (PMO) for the DOTHQ Project (Organizational Breakdown) GSA PMO GSA Experts

ARCH

MEP

IT

Est

DOT

LEEDs

GSA Contracting Officer

GSA Legal

Lease Admin

Life Safety Sr. Project Mgnr (Arnold Hill)

Contracts

Project Executive (John Simeon)

Contract Specialists (Jeanette Dawkins)

Project Coordinator Tenant Services (Kyu Jung)

Project Controls

Project Coordinator Construction Services (Carl Lowery)

IT

Security/ Blast

Furniture

Risk Mitigation

ePM

Master Schedule

A/E

CQM

TBD

ARA

TBD

Risk Officer

Project Controls Specialists

Project Scheduler

Ai/ Vanderweil

TBD

Project Admin

Finance

Technical Writer

Investment Banker

Attachment 4 - 03.08.04

Project Organizational Chart for the DOTHQ Project DOT (Tenant)

Co-Applicants

- Development Mgt - Design Mgmt - Retail Mgmt - Approval Process - Community Relations - Construction Mgmt

JBG/SEFC Venture LLC (Lessor)

GSA (Lessee) Regulator Agencies WMATA

Blast/ Security (ARA)

IT (TBD)

Furniture

Records Mgmt

More Consultants TBD

Co-Applicants

NCPC OP CFA ANC EPA HPRB

Utilities Co-Applicants

- Interior Architect - Programming - LEEDs

WASA PEPCO WGL VERIZON

Fit-Out Design (AI)

Commissioning Agent

Base Building Design (DMJM/MGA)

MEP (Vanerweil Engineers

Attachment 3 - 03.08.04

Project Organizational Chart for the DOTHQ Project DOT (Tenant)

JBG/SEFC Venture LLC (Lessor)

GSA (Lessee) Co-Applicants

- Development Mgt - Design Mgmt - Retail Mgmt - Approval Process - Community Relations - Construction Mgmt

Regulator Agencies WMATA

Blast/ Security (ARA)

IT (TBD)

Furniture

Records Mgmt

More Consultants TBD

Co-Applicants

NCPC OP CFA ANC EPA HPRB

Utilities Co-Applicants

- Interior Architect - Programming - LEEDs

Base Building Design (DMJM/MGA)

Fit-Out Design (AI)

Commissioning Agent

WASA PEPCO WGL VERIZON

Base Building Construction (Clark)

MEP (Vanerweil Engineers

Attachment 3 - 03.08.04

GSA Risk Drivers • • • • • • • • •

Authorization Project Delivery Method (Procurement) Inflation Performance Market Regulatory/Statutory External Stakeholder Environmental Operational

Risk Management Using the WBS

WBS May 2004 360 WBS Elements

Risk Analysis Assumptions • Do not Worry about Work Covered by Base

• •

Building Construction or Tenant Installation Contracts – Contractor Responsibility (Use EVMS to Monitor Construction Progress) Focus on Areas of GSA Responsibility and Concern Use Monte Carlo Analysis for Construction Schedule Risk Analysis

Risk Identification • Use the WBS as a framework and checklist • Interview experienced personnel from GSA, JBG, the design contractors and subcontractors • Simply request them to identify risk areas and the rationale • Document the consensus • Identify risk items on the WBS

August 2004 RISK WBS

Green Elements Contain Risk Items

Aug 2004 Risk Detail #1

Aug 2004 Risk Detail #2

#3 Information Technology Risks

Risk Breakdown Structure Level 2

Simplifies Analysis and Presentation

Final RBS

45 Risk Items

Documentation • A report was prepared containing an

analysis of each of the identified risk items • The GSA Project Manager reviewed the list with the Project participants • Necessary mitigation actions were initiated • Responsibilities assigned and followed-up • A sample of the report follows:

Risks Identified in the Interviews (This information was gathered during interviews that were conducted in August and September 2004.) Funding is not assured for the capital expenditures: Funding has not been forthcoming from Congress and indeed it has been cut. DOT cannot commit without funding of at least $90 $100 million by January 2005 to stay on track. There is $51 million in lease savings that will add to this, making $160 million actually needed for IT equipment, furniture, etc. To install IT equipment in February on the current plan we would need FY 2006 money. An alternative is being developed to lease all the equipment and pay for it with operating funds. Lack of DOT commitment to the project: DOT has not secured capital funding for the project. They have no contingency plans, though GSA is devising some. DOT’s concern is that if they do not get full funding they will not move in. Late decisions or incomplete decisions made at DOT have contributed to this situation. Any possible change in senior management or reorganizations in the DOT could add to the delay as new officials make their own determinations. Approvals from DOT: There is no Occupancy Agreement (OA) yet, and DOT has said that without funding they may not move. If there is no OA the GSA will have to search for and make an agreement for another tenant. Coordination: The project can be looked at as multiple projects, with different contractors and GSA coordination. Coordination is required between construction, tenant improvements, IT, FFE (furniture), security and move in phases. Coordinating all these different activities to mesh together smoothly is a challenge. The implication is that the merge points in the schedules will likely be overrun by one or more paths, since there is little float. ETC

GSA RBS METHODOLOGY • The WBS provided a good framework for

the interviews to make sure all aspects of the project were analyzed • A simplified RBS made the presentation and discussion easier. • The simple qualitative interview system was effective in this situation.

WBS – Construction Phase

WBS October 2004 550 WBS Elements

WBS Sept 06 940 WBS Elements

Using Quantitative Schedule Risk of a Multi-Million Dollar Construction Project to Make Public Policy Decisions By

Arnold Hill, PMP, Senior Project Manager, US GSA Property Development Division & DOT Headquarters Building Project Manager And

David T. Hulett, Ph.D., Hulett & Associates, LLC Project Management Consultants Hulett & Associates, LLC

Base: Core Building Completion (Example Result)

STRAW110 - Core Completion East and West Buildings : Finish Date Analysis

100% 04/Feb/07

Hits

204

153

102

51

06/Dec/06

85%

30/Nov/06

Statistics

80%

27/Nov/06

75%

21/Nov/06

70%

19/Nov/06

65%

15/Nov/06

Minimum: Maximum: Mean: Mode: Std Deviation:

60%

13/Nov/06

55%

12/Nov/06

50%

08/Nov/06

45%

06/Nov/06

40%

05/Nov/06

35%

01/Nov/06

30%

30/Oct/06

25%

26/Oct/06

20%

24/Oct/06

15%

22/Oct/06

10%

17/Oct/06

5%

11/Oct/06

0 19/Sep/06

16/Oct/06

12/Nov/06

09/Dec/06

Distribution (start of interval)

Hulett & Associates, LLC

05/Jan/07

Simulation: Iterations:

14/Dec/06

90%

01/Feb/07

Cumulative Frequency

255

95%

Selected Confidence 80%: Deterministic Finish: Probability

Latin Hypercube 2000

19/Sep/06 04/Feb/07 09/Nov/06 29/Oct/06 19.58

27/Nov/06 10/Sep/06 (less than 1%)

Other Management Controls – Construction Management

• Earned Value Management System

EVMS Structure Summary WBS Elements

Program Level 3

Base Building 1.2.1 Base Building Construction 1.2.1.1

Electrical System Dynalectric 1.2.1.1.8

Cost Accounts

East Tower Installations 1.2.1.1.8.3

Base Building Project Management 1.2.1.2

Elevators Thyssenkrupp 1.2.1.1.9

West Tower Installations 1.2.1.1.8.4

WBS Elements Level 6

Ground Level 1.2.1.1.8.3.1 Level 2 1.2.1.1.8.3.2

Level x 1.2.1.1.8.3.x

Work Packages Level 7

Integrated Earned Value Management System

Baseline Development

Schedule of Values GSA Assigned WBS ID 2.03.01 2.03.01 2.03.02 2.03.03 2.03.04

Item 101 102 103 104 105

Billable Value $20,000 $10,000 $50,000 $270,000 $230,000 $580,000

P3 Schedule Project Lease Schedule WBS ID

P3

Total

Allocated

Activity

Value

Value

Jul

Aug

Sep

10001

2.03.01

10002

$12,000

2.03.01

10003

$10,000

5

5

$12,500

6.25

6.25

2.03.02 2.03.02

10004 10005 10007

2.03.03

10008

2.03.04

10009 10010

6

$150,000 $230,000

0.33 0.25 12.5 6.25

30

30

30

30

50

50

50 90

$180,000 $50,000 $580,000 Cumulative

4.0 4.0

40.0 44.0

weight

0.40

12.5

$120,000

Dec

0.27

$12,500 $270,000

Nov

6

$25,000

10006

2.03.03 2.03.04

$50,000

Oct

4

2.03.01

2.03.02

$30,000

Activity

Jun 4 $8,000

97.3 141.3

103.8 245.0

188.8 433.8

0.50 6.25

0.25 0.44 0.56

90

0.78

25

25

121.3 555.0

25.0 580.0

0.22