define policies when more than one PSO, or multiple offices or laboratories, are involved in a single project—that is, whether each laboratory controls (i.e., is able to reallocate) its own management reserve or whether the management reserve on a multilaboratory project should be under the control of the overall project manager, controlled by the DOE site office manager, or controlled at the PSO level.

Contingency in the schedule is as important as contingency in the budget and should be also be covered by DOE policy. None of the above policy issues are covered in O413.3 or in the draft PPM manual or the draft PMP.

Finding. DOE does not seem to have a consistent or explicit policy on the use of management reserves, what size they should be, and who should control them.

Recommendation. The deputy secretary as secretarial acquisition executive, and the chief financial officer, assisted by the PSOs and OECM, should define and state DOE policy on management reserves. This policy should be clarified in a future release of O413.3.

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