Department of the Interior CPIC Forum Capital Planning and Investment Control CPIC Revisions to the

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Department of the InteriorCPIC ForumCapital
Planning and Investment Control (CPIC)Revisions
to the Construction Guide

• January 10, 2008
• Office of Acquisition and
• Property Management

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Purpose

• Review CPIC Methodology
• Review the Current CPIC Guide
• Background on the Guide
• CPIC Program Elements
• Critical Areas Emphasized of the Guide

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CPIC Objectives

• Structured, integrated performance-based
  management approach to manage/control investments
  
• Ensures an active, structured executive level
  decision-making process for selecting and
  managing projects
• Maintains bureau and DOI-wide oversight and
  accountability throughout the entire project life
  cycle
• Implements overall portfolio management program
  and develop high quality business plans

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CPIC Methodology
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CPIC Process Results

• Validates that investment is necessaryno
  alternative exists
• Selects alternative based on best value/return on
  investment
• Ensures investments align with mission and
  business needs
• Minimizes risk and maximizes returns/benefits
  throughout life-cycle
• Establishes quantifiable measurements for
  determining net benefits, risks and realistic
  performance/cost/schedule goals
• Governs investments so they meet defined
  specifications/ requirements and stakeholders
  expectations
• Provides critical link between strategic plans,
  performance, risks and budget requests

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CPIC Links to the Budget

• EO 13327 - promotes efficient and economical
  life-cycle management and use of Federal real
  property assets
• OMB Circular A-11 and the Capital Programming
  Guide mandates policy and procedures for
  planning, budgeting, acquisition, and management
• Presidents Management Agenda (PMA) sets
  implementation E.O. milestones, emphasizes cost,
  schedule and performance discipline

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PMAs CPIC Criteria

• Getting to Green on PMA scorecard
• All investments are prioritized and subject to
  the DOI 5-year multi-planning process
• All major investments, regardless of funding
  source, have a business case that meet A-11
  requirements
• All projects, specifically major projects,
  operate within 90 of cost, schedule and
  performance targets

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DOI Construction CPIC Guide Overview

• Updates Guide issued in 2002
• Complies with mandates, laws and regulations
• Identifies CPIC processes/activities/outputs
• Emphasizes multi-year investment planning
• Describes CPIC methodology and governance
  hierarchy identifying and articulating
  requirements and processes

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CPIC Guide Program Emphasis
Establish and sustain program that controls cost,
schedule and scope of project portfolio Strengthen
project and portfolio management capability Use
integrated approach project manager, integrated
project team (IPT), investment review boards
(IRB), stakeholders Guide stresses the following

• Projects that meet mission and performance goals
• Projects are prioritized adopt a portfolio view
• Invest in mission critical assets with
  health/safety emphasis
• Collocate activities to realize economies of
  scale/shared facilities

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CPIC Guide Program Emphasis

• Link project pre-select (initiation and 5-Year
  Plan) and project select
• Use value engineering to ensure costs and risks
  are low
• Assign certified project managers and use IPT
• Modify or terminate projects over budget/behind
  schedule
• Ensure accountability throughout project life
  cycle
• Monitor projects and associated asset performance
• Identify when to dispose/replace investments
• Use asset management-related guidance and tools
• Adhere to effective, repeatable and rigorous CPIC
  practices

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CPIC Guide Business Case Emphasis
Develop and maintain business case for use
throughout project life-cycle Guide stresses the
following

• Bureau IRB recommendation and bureau head
  approval
• Exhibit 300 for major projects and Project Data
  Sheets for non-major projects
• Ensure business cases are complete, accurate and
  timely
• Funding, schedule and scope changes must have
  detailed corrective action plan

• Baseline changes require bureau recommendation
  and Asset Management Team/OMB approval

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CPIC Guide
Questions Bill Hamele 202-208-5704 or
William_Hamele_at_ios.doi.gov Bob Jarcho 202-208-3329
or Robert_Jarcho_at_ios.doi.gov Resources DOI
Construction CPIC Guide http//www.doi.gov/pam/CPI
Cguide62107.pdf A-11 Capital Programming
Guide http//www.whitehouse.gov/omb/circulars/a11/
current_year/part7.pdf DOI Asset Management/CPIC
Website http//www.doi.gov/pam/assetmanage.html
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