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Kaiser-Hill Company, L.L.C. (Kaiser-Hill) has accept-ed the challenge of managing an environmentalcleanup project that is multifaceted, with executionperformance and responsibility assigned to multiple

companies. Ensuring the successful integration and control ofthe Rocky Flats Environmental Technology Site (Rocky Flats orsite) Closure Project is reliant on innovative costing and report-ing techniques.

The closure project consists of over 17,000 schedule activi-ties and over 80,000 integrated resource records, each with a fullbasis of estimate. Kaiser-Hill manages and integrates five coresubcontractors, who are tasked with the execution of these activ-ities. All planning, scheduling, and budgeting (funding-con-strained execution year budgets and out-year plans) reside in theclosure project baseline (CPB) database. This baseline providesa single integrated reporting and planning system that supportsthe US Department of Energy (DOE) and community goals andobjectives for the closure of Rocky Flats.

Industry standard project control techniques establish theframework for the site scheduling, costing, and reporting sys-tems. The site has advanced these techniques to facilitate mul-ticompany business and project costing and reporting. All coresubcontractors responsible for accomplishing the cleanup tasksuse a central cost accounting, reporting, and project control sys-tem. This dynamic and flexible system allows Kaiser-Hill torespond to changing performance reporting requirements fromour customer (DOE, Rocky Flats Field Office) and our core sub-contractors while maintaining configuration control of the clo-sure project baseline (CPB).

This article describes the reporting systems and techniquesimplemented by Kaiser-Hill to manage the multicompany, mul-titask $7.3 billion dollar closure of Rocky Flats.

SYSTEM SELECTION CRITERIA

In selecting and implementing an integrated reporting sys-tem to manage the closure project, Kaiser-Hill established thefollowing system criteria:

• total replacement of the legacy mainframe system;• use of a modern client server approach;• use of relational databases;

• use of commercial off-the-shelf applications, where possible,to minimize cost; and

• year 2000 (Y2K) compliance.

The resulting system had to meet the above while maintainingfocus on the end-user’s ability to get to data!

INTEGRATED REPORTING SYSTEM

Applying the above criteria, Kaiser-Hill selected/developeda control system that consists of five major systems or databases:a scope database, a baseline scheduling system, a basis of esti-mate database, a performance report database, and a work break-down structure (WBS) database. When integrated with the site’saccounting system, Kaiser-Hill has a reporting system (see figure1), which supports the closure project mission, management,and customer/stakeholder needs. This suite of systems wasdeveloped and integrated in a near real-time basis with noimpact to work in progress.

The systems/databases are integrated and share data. Theyare designed to maintain the integrity of the baseline data that isunder change control, while allowing flexibility for “what-if”analysis and work-around planning. Currently, the systems arebeing used to develop a “what-if” plan to accelerate closure fromthe year 2010 to 2006.

WORK BREAKDOWN STRUCTURE

The common thread used to integrate these systems/data-bases (scope, schedule, basis of estimate, performance reports,and the accounting system) is a configuration controlled workbreakdown structure (WBS).

The closure project WBS was completed in 1996 and de-fines the scope of the closure project consistent with the RockyFlats Cleanup Agreement, until the scheduled completion in2010. The WBS is expandable, as the scope is refined over thelife of the project. DOE controls levels 1 to -5 of the WBS. TheWBS controls the creation and status of charge numbers.

The WBS coding structure is used as the link between thescope, schedule, and estimate tools. The WBS is maintained ina lookup table that links the WBS code to the:

ENV.04

Multi-Project Costing and Reporting Techniques

Erin Bognar and Chris Schoenbauer

1999 AACE INTERNATIONAL TRANSACTIONS

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• various project-reporting levels (project, subproject, costaccount, and work package);

• various DOE financial-code reporting levels (budget andreporting, project reporting number (PRN), etc.);

• to the company responsible for managing the scope of work;and

• to the charge numbers used by the accounting system.

By using the WBS code in a reporting lookup table, Kaiser-Hillhas maintained the ability to respond to changing regulatory andDOE financial and project reporting requirements withouteffecting the integrity of the WBS. By linking the WBS code tothe company assigned to manage and/or perform the work, com-pany-level performance measurement reporting capability isobtained.

Scope DatabaseThe closure project scope is dynamic and subject to

changes depending upon government and regulatory require-ments. Kaiser-Hill is challenged with managing and communi-cating the closure project scope requirements, ensuring clearcommunication between the five companies that make up thecore Kaiser-Hill Team. In order to manage and communicatethe closure project scope, a scope management SQL-server data-base was developed.

For each subproject (known as project baseline description,or (PBD) in Rocky Flat’s vernacular), cost account (known as awork authorization document), and work package within theclosure project, the database clearly identifies the life-cyclescope, technical strategy, deliverables, and assumptions (see fig-ures 2 and 3).

A paramount concern is the identification and managementof safety related concerns and issues and their potential effect tothe closure project scope. As illustrated above, the database cap-tures this information by requiring the identification and cate-

gorization of hazards and risks, planned or implemented con-trols to mitigate and prevent hazards/risks, and the identificationof the work performance feedback and improvement processthat will be implemented during work execution.

Subproject interface identification is essential to scope man-agement. Although subproject interfaces are often identified aslogic ties between activities on the project schedule, the needexists to identify these interfaces within the scope document.The closure project scope documents are used frequently by thegeneral public, who may not have the technical expertise tounderstand interrelationships as defined on a detailed projectschedule. Therefore, specific fields are provided within thescope database to capture the subproject internal interfaces, inaddition to identification of external interfaces. Examples of tworecent external interfaces affecting the closure project scope andcompletion are the delivery of a government furnished plutoni-um packaging system and the opening of the New Mexico WasteIsolation Pilot Project.

The scope database is linked to the cost estimates in thebasis of estimate software tool (BEST) database, the milestonesin the baseline schedule system, and historical WBS cost datafrom the performance reports database via the WBS code. Thislink allows the production of closure project description docu-ments that contain life-cycle scope schedule and cost informa-tion, which may be produced in any desired customer format.

This scope database also produces the “core baseline scopedocuments for the closure project.” These documents, whenapproved, provide the contractual fiscal year statements of workbetween Kaiser-Hill and DOE (see figure 3). The data is alsoused as the basis for the Kaiser-Hill contracts with the five per-forming Kaiser-Hill Team companies. In addition, it is thesource database for all government budget submissions, “what-if” exercises and special reports.

Figure 1—Integrated Reporting System


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Figure 2—PBD (Subproject) Database Screen

Figure 3—WAD (Cost Account) Screen


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Baseline Schedule SystemAs seen in figure 1, Kaiser-Hill manages the closure project

by using an industry standard software application for schedul-ing (Primavera). Primavera software supports the multiprojectenvironment and facilitates the various levels of schedulesrequired to manage the project. The implementation of a clo-

sure project scheduling standard requires that all schedules bedeveloped using a uniform coding structure within Primavera.This ensures that company detail working schedules summarizeto the Kaiser-Hill project summary schedule. Compliance tothe closure project scheduling standard is contractually requiredof all companies.

Figure 4—Schedule Example

Figure 5—Basis of Estimate

Schedule dates fromPrimavera Database


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Two primary schedules are maintained: a target scheduleand an active schedule. The target schedule is the basis for allcommitments, as stated in the scope database. It also containsall milestones used for contract performance measurement.This target schedule is under change control. The active sched-ule is used to report progress, and the data date is moved month-ly (see figure 4).

These two schedules are compared to each other in order toperform critical path analysis on milestone and project comple-tions.

Schedule resources (as required by the Primavera schedulesoftware) are obtained from the basis of estimate database andtime-phased (spread) by Primavera to create manpower profilesand fiscal year budgets.

Summarizing the two primary schedules creates the Kaiser-Hill executive-level summary schedule. The executive-levelschedule status is obtained monthly from the active schedule.This summary schedule is used for presentation purposes to theUS Congress, the DOE, and project stakeholders (the city ofBroomfield, etc.).

Basis of Estimate DatabaseSince the closure project consists of many subprojects

whose scope includes such diverse activities as building con-struction, building demolition, fire protection services, laundryservices, waste processing, waste packaging and waste shipments,a customized activity-based estimating tool (BEST) was devel-oped. The estimate for each activity on the schedule is linked tothe scheduling system via the WBS code and activity identifier(see figure 5). This link allows the scheduler to access theresources for time phasing and provides the estimator withschedule information as the estimate is being developed.

This activity-based estimating tool was developed inMicrosoft Access and SQL Server and allows cost estimates to bedeveloped easily for a variety of project types including con-struction, demolition, production, service, and distribution.Since the database is used for all estimate types, the cost estimatelearning curve associated with a project team transitioning froma completed production subproject to a demolition subproject isminimized.

A standardized estimating tool for all project types facilitat-ed the implementation of an integrated reporting system, ensur-ing that all project teams developed their estimates using a com-mon cost code structure. The common cost coding structureensures that actual costs collected can be compared to the costestimate.

This common cost code structure not only includes indus-try standard estimating data elements (labor/nonlabor, hours,quantity, units, department codes, skill codes, etc.) but also iden-tifies the performing company (see figure 6). Having this iden-tifier in the cost estimate and in the financial system enablesKaiser-Hill to monitor a service contractor who provides servicessuch as laundry and building maintenance. These costs are col-lected for performance measurement in the work package of theKaiser-Hill team company benefiting from the work being per-formed. This venue of cost reporting provides another mecha-nism for Kaiser-Hill to evaluate the service contractor’s perfor-mance.

In managing the closure project , Kaiser-Hill has retainedaccountability for allocating the union work force to the variouscore companies. The performing company identifier in the costestimate facilitates the forecasting of union labor requirementsby company and is crucial in the allocation process of these lim-ited resources. Including the company identifier enables com-pany-level resource forecasting, facilitates the development of

Company Identifier:R= Rocky Mountain Remediation ServicesK= Kaiser-Hill

Figure 6—Basis of Estimate


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company-specific statements of work, and enables company-level performance reporting.

Each basis of estimate is evaluated and assigned risk factorsfor scope, schedule, and cost to monitor the quality and uncer-tainty of the estimate. This information is used to evaluate andquantify the risks associated with each subproject. Managementcan then focus attention on risk issues that require mitigation.Examples of several of the risk codes captured in the basis of esti-mate database are indicated in figure 7.

Performance ReportsKaiser-Hill’s performance reports mirror industry standard

methodology for cost and schedule evaluation and reporting.These reports integrate the budget spreads (or budgeted cost ofwork scheduled) from the Primavera target schedule, theprogress (or budgeted cost of work performed) for the Primaveraactive schedule and the actual costs of the work performed fromthe accounting system. Project labor cost data is updated week-ly in the system; official performance measurement reports areupdated monthly. Electronic performance reports are availablefor all levels of the project, for DOE, for the functional organi-zations, and for the individual companies.

Accounting SystemIn managing the closure project, Kaiser-Hill uses an indus-

try-recognized leader in software applications for financial man-agement (Peoplesoft). The Peoplesoft financial software sup-ports multicompany financial reporting and multiproject costcollection and reporting. Kaiser-Hill manages the site applica-tion used by both Kaiser-Hill and the five primary contractors.The financial system provides cost information to the projectcontrol system for performance reporting and analysis.

ENSURING EASE OF USE

The key success criterion for any integrated reporting sys-tem is its ease of use. All elements of the integrated reportingsystem (scope, schedule, cost estimating, performance reports,or financial details) can be accessed via one application. Thesystem’s users are not just limited to Kaiser-Hill and its core com-panies but include the DOE and special agencies, at DOE’srequest. Today the system has approximately 300 users withaccess to information controlled via the WBS and the site’sresponsibility assignment matrix.

Reports are standardized so that all levels of project man-agers (project, subproject, cost account, and work package)receive similar reports. Reports (performance, cost estimate,statements of work, schedules, etc.) are provided online via thereporting system and can be printed or migrated to MicrosoftExcel at the discretion of the user. The reporting system win-dows are customized to the user-level (project manager, subpro-ject manager, cost account manager, work package manager,functional manager, company-level, DOE, etc.). Users canaccess the reporting system onsite, 24-hours a day, from any ter-minal connection to the site client-server system.

An integrated reporting system provides the contractorwith the ability to respond to the annual governmentbudget submissions, “what-if” requests, and specialreport requests while minimizing the effect to the site’s

project managers. Investment in customizing and integratingindustry standard reporting systems to meet the demands of amultiproject, multicompany environment has paid off; specifi-cally this integrated reporting tool has shortened learning curves,provided a multicompany standard for project costing andreporting, minimized the reporting demands on the projectmanager, received stakeholder and customer acceptance, and iseasy to understand and use.

Figure 7—Samples of Risk Codes


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Erin Bognar Kaiser-Hill Company, L.L.C.

Project Controls DivisionPO Box 464

Golden, CO 80402Phone: 303-966-7526 or 303-966-8091

Fax: 303-966-6335

Chris SchoenbauerKaiser-Hill Company, L.L.C.

Project Controls DivisionPO Box 464

Golden, CO 80402Phone: 303-966-7526 or 303-966-8091

Fax: 303-966-6335


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