BETOLessonLearned

IntergratedBiorefineryLessonsLearnedInformation Filters
Entry SuggestedMitigation Internal/ Project
CID Recipient Description Impact Tag#1 Tag#2 Tag#3
ID Strategy External Phase
16 *N/A* NotProject UsinganEngineering,Procurement, Completeoutsourcingofmanagement Ownersneedtoclearlyunderstandand
Specific Construction,Management(EPCM)type ofaprojectcanresultintheOwner selectappropriatecontractingmechanisms
contractmaybeaninappropriatecontract losingcontrolofthecost,scheduleand tobalancetherisks/rewardsofoutsourcing
mechanismtoscaleupnewtechnologies. qualityoftheworkperformed. withtheneedtomaintainqualityand
controloftheprojectbaseline.Higherrisk
scaleupsofnewtechnologiesrequire
differentbalancingofrisktransferthan
standardengineering/construction
projects.
Award Project Project
External Negotiation Management ProjectTeam Execution
30 *N/A* NotProject Projectscheduleshavebeengreatlyimpacted Underestimatingtimerequirementsto IncorporatingNEPAexpertiseduringthe
Specific bybothBETOandtheawardRecipient completeaNEPAanalysislengthens FOAapplicationmeritreviewtoevaluate
underestimatingthelevelofNEPAanalysis projectschedulesandcansubstantially thelevelofNEPAreviewneededforeach
neededtogetadeterminationandmove increasecosts.Oneprojectrequired meritoriousproject(e.g.,ifan
forwardwiththeproject. anEnvironmentalImpactStatement EnvironmentalAssessmentor
(EIS),whichaddednearly2yearsto EnvironmentalImpactStatementare
thescheduleandaddedunplanned required)wouldprovideforearly
coststheproject. awarenesstobothDOEandtheselecteeof
thepotentialimpactstotheproject
baselinecostandschedule.
MeritReview
Internal Committee NEPA Schedule Cost
Entry
CID Recipient Description
ID
33 *N/A* NotProject Projectsrequestcontingencyreduction
Specific immediatelyfollowingcompletionof
construction/commissioning,whichcanresult limitedjustificationduetocashflow reductionsfromintegratedbiorefinery
inunderestimatingthetimeandcostneeded concerns.ManyRecipientsbelieved projects.Themethodologyinvolves
toaddressoperational/shakedownrisks.
Recipientstypicallyhavecashflowissues
duringthistime.
35 *N/A* NotProject Recipientswithlimitedprojectmanagement
Specific discipline/experienceviewRisk
Assessment/Mitigationasaonetime,check
theboxeventinsteadofaliving,highvalue
projectmanagementtoolthatisutilized
throughouttheproject'sduration.
SuggestedMitigation Internal/ Project
Impact Tag#1 Tag#2 Tag#3
Strategy External Phase
Initialcontingencyreductionproposals BETOhasdevelopedamethodologyfor
aretypicallytooaggressivewith analyzingrequestsforcontingency
thatoncemechanicalcompletionwas reviewingtheRecipient'smostrecentrisk
achieved,risksweresubstantially register,havingBETOanditsindependent
mitigatedandtheneedforoperational engineeranalyzeeachrisktoassessthe
contingencywasminimal.Experience, effectivenessofthemitigationsemployed
todate,showsthistobeamisleading andtheclaimedresult(e.g.,riskcompletely
assumption.Commissioning,startup, mitigated,risknotmitigated,riskpartially
shakedownandoperationalriskshave mitigated),comparingtheamountofrisk
proventobeconsiderablyhigherthan reductionachievedtoindustry
estimated,resultingintheneedto benchmarks,andbalancingtheassessed
accesssignificantcontingencyfundsto riskagainstindustrybenchmarksto
addresscorrectiveactions,design determineDOE'sindependentestimatefor
changesandoperationsissues. contingency.Thismethodologyis
consideredabestpracticebyBETOand
GoldenServiceCenterProcurement
officials.
Award Project Project
Both Negotiation Management Execution Financial
Acommonweaknessamongseveral Risktoolsneedtobeutilizedthroughout
projectdevelopersistheineffective projectexecution.Bestindustrypractice
useofaRiskMitigationPlanandRisk includesapplyingprobabilityandimpact
Registerandunderstandingthe analyses,includingdevelopingquantitative
relationshipbetweenrisk,controlof factorsandcostestimatestogaugehow
theprojectperformancebaseline,and muchcontingencyneedstobesetaside.
theamountofcontingencyrequired. Also,risktoolsneedtobeactivelyusedby
Theineffectiveuseofthesetools projectmanagerstoaidinmaintaining
resultedinseveralprojects projectconfigurationcontrol.Risk
experiencingsubstantialcostand mitigationplansandriskregistersneedto
scheduleimpactsduetounrecognized betailoredtotheactualtechnology
orunderestimatedrisks. readinessleveloftheprojectssothatrisks
arelesslikelytobeunrecognizedor
underestimated.
ActiveProject Technology
Both Management Readiness Risk
Entry SuggestedMitigation Internal/ Project
CID Recipient Description Impact Tag#1 Tag#2 Tag#3
ID Strategy External Phase
38 *N/A* NotProject Reliablepowerfromthegridduring Commissioning,startupand Potentialpoweroutagesshouldbe
Specific commissioning,startupandshakedownhas shakedownwereinterrupted,delayed addressedintheriskregister.Negotiation
beenaproblemforseveralprojects.In andresultedincircuitbreakertrips ofPowerPurchaseAgreementswithpower
particular,powerwasnotsufficienttorunall requiringresettingofinstrumentsand suppliersneedstoclarifypeakloadneeds
theequipmentduringshakedown.These processunits.Thiscanalsocause duringcommissioning,startupand
projectsareoftenlocatedinruralareasand potentialsafetyissuesifpowerislost shakedownandfacilitatecoordinationof
thepowersupplycompanieswerenotaware forfansandheatexchangercontrols. powersuppliesduringtheseevents.
thattheplants'peakloadsduringstartupand
shakedowncouldexceedgridcapacity(e.g.,
largesystemscomingonlineallatonce).

ActiveProject Project
Both Management Technical Regulatory Execution
41 *N/A* NotProject Applicantswereillpreparedfortheamount Resultedindelayedschedulesand UsetheNoticeofIntentprocesstoinform
Specific ofdocumentationrequiredtoreceivean improperlyutilizedresources. applicantsaboutwhatdocumentswillbe
award. expectedandBETO'sduediligenceprocess.
IncludingBETO'sdataminingsheet
templateasarequirementintheFOAis
recommended.
FOA
Internal Development Planning
43 *N/A* NotProject AnalysisofBudgetPeriod(BP)1costsshows ImpactsofunderestimatingBP1costs ValidatingtheTechnologyReadinessLevel
Specific that10%20%oftotalprojectcostisneeded include:scheduledelays;cost (TRL)andprojectmaturity(scaleup,
forsettingtheperformancebaseline, overruns;shiftingfundsfromlater continuoushoursoftestings,levelof
achievinganFEL3leveldesign(costestimate phasesoftheproject(e.g.,BP2)to integrationetc.)earlyinBETO'sselection
within5%/+15%)thatcanbeusedbyEPC coverBP1overruns;underestimating andnegotiationprocesswillbetterprepare
contractorforbiddingpurposes,permitting, BP2cost,scheduleandneedfor bothpartiestounderstandtherisksto
achievingfinancialclose,obtainingaNEPA contingency. projectexecutionbeforeinvesting
determination,andotheractivitiesthat significantfunds.
enablereadinesstoconstructthefacility.
Historically,BP1costsandscheduleshave
beenunderestimated.

Award Technology Project

Both Negotiation Validation Readiness Execution
Entry SuggestedMitigation Internal/ Project
CID Recipient Description Impact Tag#1 Tag#2 Tag#3
ID Strategy External Phase
44 *N/A* NotProject Tryingtoforcethedesigntobefirstto Chiefamongthenegativeimpacts Inanumberofcases,BETOinstitutedstage
Specific marketisafatalflaw.Afundamentalriskto includetheneedtoshiftresourcesto gatereviewsinvolvingadditionalpilot
projectsuccessisthebusinesscasedrivingan runpilotplantteststoaddressdesign testingtoincreaseconfidencethatthe
acceleratedschedulewithanimmature deficienciesandunanalyzedrisks scaledupdesignswerecredibleandvalid.
designbasisanduntestedscaleupscope. beforefinalizingthescaledupdesign Reviewsbytheindependentengineer
parameterswhilesimultaneously revealedadditionalrisksthatwere
executingconstructionofthenext unrecognizedorunderestimated.Inthe
scalebiorefinery(e.g.,demonstration future,BETOintendstoconduct
orcommercialscale).Thisoccurred independentvalidationofhigherTRLlevel
withanumberofIBRprojectsandthe projectsearlyintheFOAaward
impactsareconsistentwithrisk negotiationprocesstomitigateagainstany
assessmentpredictiveanalyses.Scope inadequatedesignbasesandinformrisk
anddesigncreepresultindelaysand basedGo/Nogodecisions.
highercosts,especiallyifconstruction
isallowedtoproceedpriorto
completingappropriate
engineering/integratedpilottesting.

ActiveProject Technology Project

Both Management Readiness Management
45 *N/A* NotProject Changemanagementproceduresneedtobe Projectsthataredrivenbyschedule CriticalDecision2(CD2Approve
Specific usedandreviewed(lowerTRLprojectstend considerationsbeforetestingandfinal performancebaseline)reviewsandCritical
tomakedesignchangesquickly,withlimited designsarecompletedcauseschedule Decision3(CD3Approvestartof
onprocessandprojectscopeconfiguration delaysandincreasedcosts,aswellas construction)reviewsneedtoassurethat
controlandwithlimitedanalysesof theneedforhigheramountsof projectsincorporatemoreformalproject
schedule/costimpacts).LowerTRL contingency.Decisionstobegin managementbestpracticesandlesson
constructioneffortstendtofocuson constructionbeforealltestingand learned,includingformalchangecontrol
cost/schedulegoalsratherthanvalidatinga finaldesign,alongwithpurchasing requirements,toimprovethechancesfor
designinapilot/labunit.Hastymanagement untestedusedequipmenthave projectsuccess.Also,BETOneedsto
decisionstomoveforwardwithoutvalidating resultedinfollowoncorrectiveactions incorporateintoitsCDprocess,keylessons
designworkleadtopoorproject andhigherprojectcostandschedule learnedandbestpracticesascriticalfactors
performanceoutcomes. variances. inassessingthereadinessofRecipientsto
successfullyexecutenewtechnology
projects.
ActiveProject Technology Project Project
Both Management Readiness Execution Management
Entry
CID Recipient Description
ID
46 *N/A* NotProject Contingencyrequirementsneedtobefirm.
Specific Allowingnoncashsourceshasnotbeena
successfuloption.Theconsequencesof
allowingnoncashsourcesforcontingency
werenotwellunderstoodatthetimeof
selections(ARRA).AllowinghigherTRL
projectstouseguaranteesmaybe
acceptable,butallowingitforprojectsat
lowerTRLlevelsisinappropriate.For
example,ithasbeenseenthatlackofclarity
aboutthenatureof"guarantees"provedto
beabarrierinconvertingthemintoliquid
fundstoaddressunmitigatedrisks.
47 *N/A* NotProject Costestimateaccuracyisveryinconsistent.
Specific Manyfirstofkindtechnologiesexperience
highercostsinallphasesofproject
execution.
61 *N/A* NotProject BETO'sexperienceshowsthatfirstofakind
Specific plantscosttwiceasmuchandtaketwiceas
longasatypicaldrymilltogettothe
constructionphase.BETO'sexperiencealso
showsitwilltakecloserto9to12monthsto
gettodesigncapacityinsteadof3to6
months.Scheduleandbudgetsare
consistentlyunderestimatedwithfirstofa
kindtechnologybysubstantialmargins.
Schedulesarecommonlytooaggressiveand
manyrisksareunderestimated.Itisdifficult
topersuadetherecipientthatitsschedule
andbudgetareoverlyoptimisticwhen
balancedagainsttheprojectrisk.
SuggestedMitigation Internal/ Project
Impact Tag#1 Tag#2 Tag#3
Strategy External Phase
Lackofcontractualandlegal BETObestpractice:Thecontingency
precedenceonhowtomanagethe clausehasbeenstrengthenedandwillnot
SelectionOfficial'sminimum25% allownoncashsourcesascontingencyin
contingencyrequirementledto futureIBRawards.
Recipientsbeingprovidedthe
contractualflexibilitytodemonstrate
meetingtherequirementusingsuch
noncashmechanismsasperformance
(construction)guaranteesfromEPC
contractors.Thisdidnotmeetthereal
worldcriteriaforcontingencythat
requiresthatitbeimmediately
available,dedicatedtotheproject,
andliquid.Experienceshowsthat
usingthistypeof"insurance"builtinto
theEPCcontractascontingencyis
insufficientandineffective;especially
whenconstructioniscompleteand
operationalcontingencyisneeded. FOA Project
Both Development Planning Programmatic Execution
Highercostsleadtodelaysin Needtoapplyindustrystandards(FEL3)
correctingcostrelatedissues. andmakeearlystageTRLprojectsawareof
expectations,standardsandrisks. ActiveProject Technology Project
Both Management Readiness Execution Cost
Expectaminimumof2timesthecosts Needlessonslearnedandbestpractices
and2timesthedurationtocomplete incorporatedintotheProjectExecution
afirstofakindIBRpilot, PlantoimproveIBRprojectperformance
demonstrationorcommercialscale baselinedevelopmentandforestimating
project. thescheduleandbudgetofnew
technology.Useoflessonslearneddata
shouldhelpBETOimproveitsabilityto
analyzeRecipientestimates.
Technology Project Project
Both Selection Readiness Management Execution
Entry
CID Recipient Description
ID
63 *N/A* NotProject Gettingfeedstocktotheplantboundaryhas
Specific provendifficultinsomecasesandhas
stoppedprojectsduetoavarietyofissues,
forinstance,notmeetingplantspecifications
concerning:sizefractionspecification,
moisturecontent,ashcontent,impurities,
volumetricrequirements,timing/delivery,
etc.
73 *N/A* NotProject DOEandtheindustrydonotnecessarily
Specific shareacommonunderstandingofproject
milestoneterminology;e.g.,performance
test,shakedown,mechanicalcompletion,
commissioning,substantialcompletion,etc.
75 *N/A* NotProject Ithasbeenobservedthatnotproperly
Specific establishingaprojectWBStoalignwitha
codeofaccountsthatfollowGAAPstandards
hasstoppedprojectswhileauditsoccur
and/orauditfindingsareaddressed.
SuggestedMitigation Internal/ Project
Impact Tag#1 Tag#2 Tag#3
Strategy External Phase
Weaknessesinfeedstockprocurement BETO'sIndependentEngineerwilladd
specificationsandmitigation moreemphasisonfeedstockprocurement
requirements,alongwithquality andlogisticsrisks.BETOwillemphasize
controlandenforcementofthose reviewofthesetypesofrisksduringitsCD
requirementsearlyintheoperations 3andCD4Go/Nogoreviews.
canlimitoperationsandresultin
delaysandadditionalcosts.
ActiveProject
Both Management Technical
Withoutclearlydefiningcommon Terminologyneedstobedefinedbasedon
terminologyformilestonesearlyinthe DOErequirements,asearlyastheFOA,and
process,includingcompletioncriteria, reiteratedinmoredetailduringeach
acceptanceofmilestonecompletion project'skickoffmeeting.Agreementon
maybecompromisedandpotential commonterminologyandcompletion
scheduledelayscanbeexpected. criterianeedstobeaddressedduringthe
CD2(Approveperformancebaseline)
reviewanddocumentedintheapproved
performancebaseline. FOA
Both Development Planning Programmatic
Severalprojectswerenotallowedto AligningthecodeofaccountsandWBSata
invoiceformanymonthsuntilthey lowenoughlevelwithintheprojectto
wereabletoshowcompliancewith assureGAAPstandardsaremetmustbe
GAAPtotheauditors. discussedwithprojectsbeforeanincurred
costauditoccurs.Achievingalignment
earlyintheprojectisessentialifinvoice
reimbursementsbyDOEaretobetimely.
Award
Internal Negotiation Regulatory Financial Review
Entry
CID Recipient Description
ID
78 *N/A* NotProject IthasbeenBETO'sexperiencethatthe OnemajorimpactwasthatBETO
Specific technologyreadinesslevels(TRLs)formost
IBRprojectsaresomewhatlessmaturethan
proposedintheapplications.Theevidence
indicatesthatmosttimesthisisdueto
insufficientintegratedpilotingatan
appropriatescaletotesttheheat,material
andenergybalances,aswellasvalidate
performanceyielddata,necessarytoprovide
avalidbasisforthenextscaledupdesign. testingasadesignbasis,insufficient theFOAandanassessmentoftheriskto
83 *N/A* NotProject AmajorreasonsomeIBRprojectsdidnot ThemajorimpactontheseIBR
Specific moveforwardwasduetotheinabilityto
secureadequatefinancing.Anumberof
projectsthatweresufficientlyfundedbefore
thefinancialcrisisthatbeganin2008,
suddenlyfoundthemselvesinaveryrisk
aversefinancialmarketwithadditional
barrierstoobtainingcapitaloverthenext
severalyears.
SuggestedMitigation Internal/ Project
Impact Tag#1 Tag#2 Tag#3
Strategy External Phase
BETOhasinstitutedasabestpracticean
requiredsomeprojectstoconduct independentvalidationandrisk
integratedpilotteststovalidatethe assessmentleadingtoaGo/Nogodecision
designbasisofscaledupprojects(e.g., pointearlyintheIBRawardprocess.BETO
demonstrationand/orcommercial isconsideringinstitutinganindependent
scale),whichaddedupwardsofone validationandriskassessmentreviewas
yeartotheperformancebaseline. partoftheFOAmeritreviewprocess.This
AnotherimpactwasthatforsomeIBR wouldincludeananalysisoftheactualTRL
projectsthathadsufficientpilot levelascomparedtothelevelrequiredin
timewasallottedintheperformance BETOtomoveforwardshouldtherebea
baselineforcommissioning,startup, gapintheactualTRLvstheTRLlevel
shakedownandoperations,resulting claimedintheapplication.
insubstantialscheduleandcost
increases.
Award Technology
Internal Negotiation Validation Readiness Planning
BETOneedstobeassuredthatfutureIBR
projectswastheinabilitytosecure projectshavesecuredfinancialresources
sufficientcapitaltofundthecostshare sufficienttocompletetheproject.This
and(ifrequired)contingencyto needstobevalidatedduringtheFOA
completetheproject.Resourceswere processandthenconfirmedearlyinthe
divertedawayfromprojectexecution awardnegotiations.Concreteevidenceof
tosecuringstrategicinvestorsand sufficientfinancialresourcesdedicatedto
financing.Progressagainstapproved projectcostshareand/orcontingencyis
performancebaselinessuffereddelays required.Thismaytakemanyforms,but
and/ordisruptionsduetoinsufficient mustmeetthestandardsetbyDOE
funds.Someprojectspursuedloan Procurement.
guaranteesfromeitherDOEorUSDA.
Someprojectscouldnotsecurethe
costshareandtheprojectsended.
ActiveProject Project
Both Management ProjectExecution Financial Management
Entry SuggestedMitigation Internal/ Project
CID Recipient Description Impact Tag#1 Tag#2 Tag#3
ID Strategy External Phase
85 *N/A* NotProject IBRprojectschedulesaretypicallytoo Overlyaggressiveschedulestypically BETOhasconsistentlyrequiredcertainDOE
Specific aggressiveandunderstatethecostsandrisks reflectpoorprojectbaselineplanning, criticaldecisionpoints(Go/Nogodecision
ofscalingupfirstofakindtechnologies.The apoorunderstandingoftheriskstobe points)beincludedintheapproved
driverappearstobetheneedtobe"firstto mitigatedandinadequateresource performancebaseline,alongwithvaluable
market,"butthetrendistooverlookthe loading,resultinginscheduledelays, projectmanagementindustrybest
challengesinherentinbringingtoscalenew additionalcosts,andcorrectiveactions practices,suchasRiskMitigationPlans,
technologies. toaddressunmitigatedrisks.Several RiskRegisters,andcontingencyneededto
IBRprojectsexperiencedadditional mitigaterisks.However,theeffectiveness
delaysandhighercostsdueto ofthesetoolshasbeenhighlyvariableand
overaggressiveschedules,improper frequentlynotvaluedbyIBRRecipientsas
riskidentificationandmanagement, muchasbyBETO.BETOcontinuesto
andinsufficientresourceloading. emphasizethevalueofthesetoolsinits
FOAsandinitsawardkickoffmeetings.
OneareawhereBETOisstrengthening
earlyimplementationofriskbased
assessmentsisbyrequiringanindependent
validationoftheapplication.Inthisway,
BETOisutilizingtheIndependentEngineer
toprovideitsprofessionaljudgmentonthe
effectivenessofproposedriskmitigation
plansandriskregistersbyIBRRecipients
beforetheprojectexpendssubstantial
funds. ActiveProject Project
Both Management Planning Management ProjectExecution
Entry SuggestedMitigation Internal/ Project
CID Recipient Description Impact Tag#1 Tag#2 Tag#3
ID Strategy External Phase
87 *N/A* NotProject Commissioning,startupandshakedown Theimpactsofunderestimatingthe Basedonthisexperience,aswellas
Specific seemstotakemuchlonger(atleasttwiceas amountoftimeandmoneyneededfor learningsfromtheIE'sexperienceandIPA
longasplanned)andismuchmorecostly thecommissioning,startupand benchmarks,BETOneedstomoreclosely
thanexpected.Forexample,manypilotscale shakedownoffirstofakindIBR scrutinizethecommissioning,startupand
projectsrequiredatleast2xtheplannedtime technologiesrangesfrom24timesas shakedowncostsandschedulewhen
tocompleteshakedown.Manyofthe longandupwardsof$10Min conductingtheCD2(Approve
projectsstruggledtocompletetheIE additionalcosts. performancebaseline)review.Also,risk
performancetestbecauseresourceswere mitigationduringtheconstructionphase
expendedduringthe needstobemonitoredmorecloselytosee
commissioning/startup/shakedownphase iflingeringproblemswillcarryovertothe
addressingunmitigatedrisksthrough commissioning/startup/shakedownphase.
correctiveactionsanddesignchanges.Many Simplyachievingmechanicalcompletion
IEperformancetestshavenotachieved doesnotnecessarilymeanariskisfully
continuous,steadystateconditionsforany mitigated.CD4shouldhaveappropriate
sustainedperiodoftimebeforeanissue commissioning,startupandshakedown
emergedtocausedisruptiontothetest. milestones/metricstoshowaplant
Again,projectsappeartobeoverlyoptimistic achievessteadystateoperations.Tying
thatoncemechanicalcompletionisachieved, DOEreimbursementstoachievementof
thatscalingupfirstofakindtechnologyis thesemilestoneswouldbealogical
notmuchriskierthancommissioning/startup incentivetodriveeffective
ofcommercialtechnology. commissioning/startup/shakedownusinga
realisticscheduleandbudget.

Award Technology Project

Both Negotiation Readiness ProjectExecution Management
Entry SuggestedMitigation Internal/ Project
CID Recipient Description Impact Tag#1 Tag#2 Tag#3
ID Strategy External Phase
96 *N/A* NotProject Someprojectsenteredoperationsinasingle Theimpactofthisweaknesswasthat AkeylearningforBETOwasthatthe
Specific stepandhadarigorousCD4beforebeing CD4wasreviewed,butimplemented applicationofCD4forapilotisdifferent
allowedtomoveforward.Someprojects unevenlyacrossthevariousprojects, thanforademonstrationorcommercial
wereallowedtomoveintopartialoperations especiallyasrelatedtothedifferent scaleplant.Essentially,CD4(Approving
withapartialCD4,whileotherswere scales(Pilot,Demo,Commercial).The startofoperations)forapilotplantis
allowedtoenterpartialoperationswithouta levelofrigorandduediligencevaried actuallyclosertocommissioningand
CD4.TheseCDsoccurredwithinBP2,BP3,or betweenprojects. startinguptheplantforthefirsttime.
inbetweenbudgetperiods;essentially,BETO Shakedownisanoutcomeofpilotplant
didnotapplytheCD4inaconsistent operationssinceithasneverbeendone
manner.BETOneedstoaddressthis beforeatthisscale.Incontrast,CD4fora
weaknessinexecutionofitsownprocess. demonstrationorcommercialscaleplant
occursaftercommissioning,startupand
shakedownhasoccurred.Approvalto
operateatthesetwoscalesshouldbe
approvaltomoveforwardwithsteady
stateoperationsandconducttheIE
performancetest.Thiswillbeclarified,
bothinternallywithinBETO,andin
subsequentFOAs.Additionally,alignment
ofthefinalbudgetperiod(BP3)withCD4
shouldbestandardized.

FOA Project
Internal Development Programmatic Management
99 *N/A* NotProject ThevalueoftheIndependentEngineer(IE) TheimpactofengaginganIEto BETOhaslearnedthehighvaluethat
Specific hasbeendemonstratedbothtoBETOandto supportBETO'sIBRprojectdue comeswithhavinganIEaspartofitsdue
manyoftheIBRRecipients.Theinteractions diligencehasmanifesteditselfin diligenceteamandintendstohaveanIE
havebeenprofessionalandprovidedmany smarter,betterdocumenteddecisions contractoronboardforallfutureIBRFOAs.
valuableinsights.TheIE'sexpertise,coupled byBETO;whetherthosebeatthe
withDOE'sinterestinbalancingprojectrisks CriticalDecisionGo/Nogopoint,orat
whilesimultaneouslyassistingtheIBR otherpointsofasignificantnature.
projectstobesuccessfulhasdevelopedintoa BETO'scredibilitywiththeindustryhas
strongcollaboration. alsobeenimprovedandenhanceddue
toitsuseoftheIE.Notsurprisingly,
banksunderwritingIBRprojectloans
subjecttoloanguaranteeshaverelied
onBETO'sreimbursementschedules
(preparedwiththeIE'sassistance)asa
basisfordevelopingtheirownloan
disbursementschedules.

ActiveProject Project
Internal Management Review Execution
Entry
CID Recipient Description
ID
104 *N/A* NotProject Differentapproacheshavebeenusedfor
Specific establishingandnegotiatingreimbursement
schedules.BETOhastriedtobeflexibleto
meeteachIBRRecipient'suniquecashflow
needs,whilemaintainingconsistentand
effectivecontrolonfundsreimbursement
throughcontractualbudgetperiodsand
detailedreviewsofbackupdocumentation
forinvoices(whichincludestheIE).
SuggestedMitigation Internal/ Project
Impact Tag#1 Tag#2 Tag#3
Strategy External Phase
Whilenosinglereimbursement BestPracticesRequiringthattheIBR
schedulemodelhasbeenadopted, projectssubmitallproposedinvoicesto
controloffederalfundshasbeen BETOindraftbeforeuploadingtothe
effective. invoicesystem,VIPERS,hasallowedBETO
andtheIEtocontinuouslyimprovethe
qualityandeffectivenessoffederalfunds
control,especiallywithcomplexinvoices.

ActiveProject
Both Management Financial
110 *N/A* NotProject Havingtheappropriateskillsetsduring InseveralofBETO'sIBRprojects, BETOneedstoemphasizetheneedtohave
Specific differentphasesofIBRprojectsisvitalto thesestrategicrelationshipswerenot strategicpartnershipsandfinancial
success.Often,theteamthatdevelopedthe sufficientlymaturetomanagea arrangementsfullymaturedatthetimeof
coretechnologydoesnotalsopossessthe successfulprojectandthisledtocost applicationtoaFOAsothattimeisnotlost
skillsetstoscaleuptheprocess.This shareissuesandscheduledelaysdue waitingonselectedRecipientstonegotiate
requiresaligningwithstrategicresourcesthat totheneedtonegotiatethese nondisclosureagreements,financial
possesstherequisiteprojectmanagement, partnerships. commitments,RACIcharts,performance
financialmanagement,business guarantees,liquidateddamages,etc.
development,feedstocksupply,product
marketingandchemicalprocessstartupskills
combinedwiththedesign,construction,
commissioning,startupandtestingexpertise.
Toachieveastrategicfittakestimefor
relationshipstoevolveandbecome
integrated.

ActiveProject
Both Management ProjectTeam 0 0