[DOE LETTERHEAD]
July 26, 2002
The Honorable John T. Conway
Chairman
Defense Nuclear Facilities Safety Board
625 Indiana Avenue, NW
Washington, D.C. 20004-2901
Dear Mr. Chairman:
The purpose of this letter is to provide follow-up to a concern raised by the Board concerning performance incentives at the Savannah River Site (SRS). Since my earlier correspondence, there are additional actions I have initiated to address continuing concerns with the incentive structure.
Aligning contracts and contract incentive structure to drive performance is essential to be able to carryout reforms identified in the Top-to-Bottom Review. In the short term, I am reviewing and approving all contract incentive plans starting in FY03. A copy of a letter articulating my expectations is attached (Attachment 1). Longer term, I have established a project management team led by Charles Dan of Rocky Flats and Dr. Ines Triay, Manager of the Carlsbad Field Office, to review the Environmental Management acquisition process to develop a process that will allow EM to get more performance out of its performance-based contracts. A critical decision (CD) 0 is planned for mid-September 2002. Additionally, I have formed a contract review board to ensure that a corporate process is established that aligns contracts, challenges contractors, and holds individuals accountable for performance. A copy of this charter is attached (Attachment 2).
Earlier this month, I dispatched a team to Savannah River to evaluate project controls and the contract management process used at the Site. A copy of the trip report is included as Attachment 3. I have directed Savannah River to develop a corrective action plan within 60 days and have assigned the Chief Operating Officer in Environmental Management to assist Savannah River in putting together this plan as well as structure the FY03 performance incentives. I will provide a copy of both the corrective action plan and the FY03 incentive plan after they are developed.
Changing the direction of this program and improving our performance will not be easy or quick. I remain committed to fundamentally and institutionally changing this program.
Sincerely,
Jessie Hill Roberson
Assistant Secretary for
Environmental Management