National Stakeholder’s Meeting on Managing For Excellence:

1. National Stakeholder’s Meeting on Managing For Excellence: An Action Plan for the 21st Century Bureau of Reclamation

2. Implementation of the Action Plan • Reclamation’s Action Plan Published February 2006 • Implementing Action Plan • Phase I Information Collection and Decision Making (Mar 2006 – Dec 2007) • Phase II Implementation (2008) • Phase III Execution (2008 forward)

3. Scope & Nature of the Action Plan • National Research Council Report, “Managing Construction and Infrastructure in the 21st Century Bureau of Reclamation” catalyst • Multiple Sources Consulted • 2004 Reclamation Customer Survey • Written Input from Stakeholders • Other Reclamation Reports • ‘Lessons Learned’ • Provides The Philosophy And Underpinnings Of How Recommendations will be Formulated

4. Relationships With Customers & Other Stakeholders Policy and Organization Engineering and Design Services Major Repair Challenges Project Management Asset Sustainment Research and Lab Services Human Resources/Workforce Trudy Harlow Roseann Gonzales Maryanne Bach Mike Ryan Rick Gold Bill Rinne Maryanne Bach Larry Todd Functional Areas

5. Director, Administration vacant Director, SSLE David Achterberg (Acting) Director, Program and Policy Services Roseann Gonzales Program Management Kathy Norris Chief Information Office Randy Feuerstein * Program Support Services Lilas Lindell Law Enforcement Vincent Parolisi Manager, Human Resources Ann Gold (Acting) Land Resources Richard Rizzi Safety & Health Services Linda Rowley Manager, Civil Rights & EEO Keith Kirkpatrick (Acting) Power Resources Deborah Linke Dam Safety Bruce Muller Director, Management Service Office Elizabeth Harrison Security Office Donald Taussig Water & Environmental Resources Jari Beek Washington Liaison Grp Contract Service Sandi Simons Finance & Accounting Effraim Escalante Financial Policy Doug Denardo (Acting) Acquisition & Assistance Management Karla Smiley Business Analysis Ed Abreo Property & Office Services Roger Molinar Director, TSC Mike Gabaldon Maintenance Services Ken Maxey Immediate Office of the Commissioner *CIO reports Administratively to the Director of Administration Following Border denotes office location: Washington, D.C. Denver, CO Regions Bureau of Reclamation Organization February 6, 2006 Commissioner Bill Rinne (Acting) Manager, WO Admin Services Janice Johnson Chief of Staff Kerry Rae (Acting) Deputy Commissioner External & Intergovernmental Affairs Trudy Harlow (Acting) Deputy Commissioner Policy, Administration and Budget Larry Todd Deputy Commissioner, Operations Regional Directors (Acting) Director, Program And Budget Robert Wolf Congressional and Legislative Affairs Vacant Director, Technical Resources Maryanne Bach Regional Director PN Region Bill McDonald Director, WO Operations Fred Ore Public Affairs Trudy Harlow Assistant Director, Program and Budget Louis Mauney Regional Director, MP Region Kirk Rodgers Public Affairs – Denver Peter Soeth Regional Director, LC Region Robert Johnson Associate Director Jennifer Gimbel Associate Director James Hess Associate Director Robert Quint Regional Director, UC Region Rick Gold International Affairs Dick Ives Regional Liaison Group Regional Director, GP Region Mike Ryan Power Liaison with COE/TVA Michael Roluti Native American Affairs Chris Kenney DSO/ DEC Manager Bruce Moore (Acting) Director, Research and Development Chuck Hennig (Acting)

6. Steps for Accomplishing Action Items • Assign Task to the Appropriate Entity (completed Mar 14) • Define the Task (substantially complete) • Outreach Plan • Budget/Staff Needs • Milestones • Analysis of Issues/Problems (has been initiated) • Development of Alternatives & Recommendations (to be completed by Dec 2007 for all items) • Decision Making (to be completed by Dec 2007 for all items)

7. 2006 2007

8. Key Action Items for Stakeholders Meeting • Engineering, action items 9-16 • Asset Sustainment, action items 25-28, 30 • Major Repair Challenges, action item 18

9. Engineering & Design Services Purpose • Develop 21st Century service model • Maintain a Center of Engineering & Design Excellence • Re-evaluate Reclamation/Industry Standards • Determine costs • Determine who pays

10. Engineering & Design Services Key Elements: • Assess historic and present workload • Utilize A-76 methodology • Examine and critique Reclamation and Industry standards • Analyze Unit Cost • In-house versus Outsourcing • Right Size Technical Resources of the Agency • Identify funding options consistent with the 1902 Act, as amended • Pilot DEC and establish policies and procedures

11. Engineering & Design Services Action Items 9. Workload Evaluation (TSC, Regional & Area Offices) 10. Workload Evaluation (A-76, Sustain Core Capability) 11. Analyze Unit Cost: In-house Versus Outsourcing 12. Right-Size Design, Estimating, and Construction Management 13. Alternate Funding of Engineering and Design 14. Implement Design Engineering Cost Estimating Oversight 15. Establish Agency Policy for Oversight of Design and Construction Estimates 16. Analyze Reclamation’s Engineering Standards

12. Team Leads • 9 & 11. Jamie Macartney, Business Resources Manager, Great Plains Region • 10. Gayle Shanahan, Funds Manager Office Of Program and Policy Services, Denver • 12. Jamie Macartney & Perry Hensley, Chief, Geotechnical Services Division, Denver • 13. Larry Walkoviak, Deputy Regional Director, Lower Colorado Region • 14-15. Bruce Moore, DSO/ DEC Manager, Denver • 16. Gerry Kelso, Area Manager, Upper Columbia Area Office

13. Project Plan Schedule

14. 16. Analyze Reclamation’s Engineering Standards Key Milestones: • Identify and review Reclamation practices for internal and external designs • Collect and review internal policies and reports • Review external/industry design standards and guidelines • Meet with external entities to assess design practices • Determine best practices

15. 12. Complete Right Sizing Process for Design, Engineering & Construction Key Milestones: • Assess existing technical capabilities and workload profiles (complete #9) • Identify required core capabilities and subsequent staffing levels • Seek input on outsourcing and retaining/ consolidating/eliminating lab services (#32 &#33) • Seek input on workload categorization according to A-76 (#10) • Summarize in-house vs. outsourcing efficiency • ID staffing levels, location, and outsourcing options

16. Major Repair Challenges Purpose Overview: • Challenges extending beyond “Managing Existing Infrastructure.” • Three Additional Questions: • Finance • Risk Management • Innovation

17. Major Repair Action Items 17 … Loan Guarantee Authority and Implementation • Sandie Simons, Manager, Water Contracts and Repayment Office 18 … Process and Tools to Determine “Go” or “No Go” • Tim Ulrich, Area Manager, Lower Colorado Dams Office 19 … Involving Stakeholders to Increase Value • Steven Jarsky, Manager, O&M Technical Services West, Snake River Area Office

18. Project Plan Schedule

19. 18 – Develop processes or measuring tools to determine whether a major repair project is warranted. • Existing Processes • Internal Feedback • External Feedback • Need for Additional Processes • Develop Additional Processes • Alternatives and Recommendations

20. O&M Activity Asset Assessment Need to Define Operating Standards Asset Operates to Standard Asset Condition Good Asset Remains In Service Y Asset Remains In Service Y N N Work Order Prepared Condition Documented With Impacts and Risk To Standard Performance Routine Maintenance or Repair Maintenance Performed Standard Performance Expected Asset Remains In Service Y Asset Operates to Standard Asset Placed Back In Service Y N Justification Prepared With Alternatives Using Standard Tools or Measures N Justification Prepared With Alternatives Using Standard Tools or Measures Repair Justified Y Repair Performed Or Scheduled Repair Justified Y Repair is Performed N N Asset Placed Back in Service with Conditions Defined for Repair or New Performance Standards Established Asset Placed Back In Service Asset Placed Back in Service with Diminished Service New Performance Standard Is Established Customer/Stakeholder Involvement Review Team

21. Asset Sustainment • Purpose Overview • Reclamation will perform a thorough analysis of how its infrastructure will be managed. • Physical and engineering • Economic • Greatest efficiencies to be gained in this area

22. Asset Sustainment Action Items 25. Determine Financial Accounting for All Infrastructure 26. Determine Opportunities to Transfer O&M to Water Users 27. Opportunities for Outsourcing O&M of Reserve Works 28. Title Transfer of facilities 29. Effectiveness of O&M Planning 30. Integrate O&M Planning with the Budget Process 31. Benchmarking O&M of Water Storage and Distribution Facilities

23. Team Leads 25. Efraim Escalante, Executive Assistant Policy, Administration & Budget, Commissioner’s Office 26-30. Randy Chandler, Deputy Area Manager, Phoenix Area Office 31. Mike Roluti, Senior Advisor Power Liaison

24. Project Plan Schedule

25. 28. Title Transfer of facilities • Current Process • Voluntary participation • Negotiate Agreement at “field level” • Requires transfer specific legislation • Upfront Funding from Water Users • NEPA, ESA and NHPA Compliance Required • Valuation based upon Repayment and Revenue Streams to Treasury. • Liability Conveyance is Major Benefit to Reclamation • Limited Budget Savings to date from Transfers (O&M Transfer is where big savings comes from). • All Projects Unique with Own Complexities • Most of “Simplest” Transfers completed • 18 Projects/Parts of Projects Transferred • 5 Transfers Authorized being Completed

26. Title Transfer • Ideas for categorizing • Identify criteria & incentives where title transfer should occur • Paid out or nearly so • Beneficial to Government / costs are subsidized • Conveyance facilities • Non-significant facilities-minor diversion dams • Agreement/Consensus that Transfer Leads to better water management • Facilities only (No Land) • Identify criteria where title is potential candidate but may have higher level of public interest • Identify Procedural “barriers” • Identify Economic/Financial barriers

27. 26. Determine Opportunities to Transfer O&M to Water Users • Identify facilities that can and should be transferred • Pumping plants • Conveyance facilities • Other

28. 27. Opportunities for Outsourcing O&M of Reserve Works • Identify facilities where O&M could be contracted out through procurement processes (bid) • Pumping Plants • Power Plants • Other

29. 30. Integrate O&M Planning with the Budget Process • Determine consistent meeting process where Reclamation & Water & Users discuss upcoming work & costs. • Identify O&M costs to receive upfront and off budget

30. 25. Determine Financial Accounting for All Infrastructure

31. Research & Laboratory Services Action Items 32. Identify Opportunities for Use of Federal/Non-Federal Laboratories 33. Identify Opportunities for Keeping, Consolidating, Eliminating Reclamation Laboratories 34. Continue PART Goal Implementation for R&D 35. Re-evaluate Steering Committee to Increase Core Mission R&D 36. Assess NRC Review of Desalination R&D

32. 8. Scenarios Consider the scenarios discussed in Chapter 5 of the NRC Report and what refinements, if any, to Reclamation’s organizational structure may be useful in meeting future challenges under each of the scenarios. (Mar – Dec 2006)

33. Excerpt from Chapter 5, NRC Report Finding: • While the committee recognizes that the major changes suggested by the alternative scenarios are inappropriate for immediate implementation, the continuation and intensification of identified trends, as described in this report, could lead to a need for dramatic changes in future scenarios presented in this report—(1) a centrally located project management organization, (2) outsourced operations and maintenance (O&M), and (3) federal funding and local execution—provide a basis for anticipating future trends and preparing for future change. Recommendation: • Reclamation should consider the suggested future scenarios as a basis for analyzing longer-term trends and change.

34. Next Steps • Reassessing projected timeline given identified interrelationships with other action items.

35. Questions…