Similar to PMI’s guidelines, according to the GAO guides,  programs should establish and use an integrated master schedule,  establish cost estimates that cover the full life cycle of the program,  document and define assumptions tailored to the program,  incorporate analysis of program risk and uncertainty in schedule and  cost estimates, and manage a program’s schedule and cost by  measuring against a baseline. NNSA officials said that the subprograms had  not developed schedule and cost estimates that cover their life cycles and  did not measure the subprograms against baselines due, in part, to  uncertainty in planning scope and schedules that rely on the cooperation  of other countries. DNN also does not require subprograms to have such  estimates or to measure performance against schedule and cost  baselines. According to leading practices, programs should (1) establish a master  schedule that integrates the schedules of program components  necessary to achieve the program’s goal, such as specified performance  to be achieved over a defined life cycle, (2) determine costs that consider  the full life-cycle costs of the program, and (3) measure performance  against baselines for both schedule and cost. Figure 2 illustrates the  extent to which the selected subprograms have established schedule and  cost estimates compared to their planned life-cycle completion dates, if  any. Measuring performance against baselines. Measuring performance against baselines. The Revised DNN Policy Does Not Include Leading Practices on Life-Cycle Schedule and Cost Management

The revised DNN policy does not address or require leading practices on  life-cycle schedule and cost management for DNN programs or  subprograms. Radiological Security. Updating the DNN program  management policy to include requirements for DNN programs and  subprograms to follow leading practices for life-cycle program  management would help NNSA ensure that managers, stakeholders, and  Congress have better information on how much DNN programs and  subprograms may cost to achieve their goals, the amount of time they  may need to achieve these goals, and how efficiently and effectively they  are actually being executed compared to plans. In written comments, which are summarized below and reproduced in  appendix IV, NNSA neither agreed nor disagreed with our  recommendation to revise the DNN program management policy to  require DNN programs and subprograms to follow life-cycle program  management. However, NNSA stated that it plans to take action in  response to the recommendation. GAO staff who made key contributions to this report  are listed in appendix V.

Appendix I: Objectives, Scope, and Methodology

This report examines the extent to which (1) selected subprograms within  the National Nuclear Security Administration’s (NNSA) Office of Defense  Nuclear Nonproliferation (DNN) use program management leading  practices to manage schedule and cost, and (2) DNN has incorporated  program management leading practices in its revised program  management policy. To conduct this work, we reviewed 4 selected DNN subprograms. To examine the extent to which the selected DNN subprograms use  program management leading practices to manage cost and schedule,  we identified selected leading practices by the Project Management  Institute (PMI) in The Standard for Program Management and by GAO in  its schedule and cost guides. We compared these practices to DNN’s  requirements and guidance contained in the revised DNN policy.
Why GAO Did This Study

The threat posed by the proliferation of nuclear and radiological weapons remains a pressing national security challenge. DNN implements nuclear nonproliferation programs worldwide. To carry out its mission, for fiscal year 2018 DNN requested an appropriation of about $1.5 billion for its 4 major programs and their 13 subprograms.
A House Armed Services Committee report, accompanying a bill for the National Defense Authorization Act for Fiscal Year 2017, included a provision for GAO to review and assess DNN's project and program management processes and systems. GAO's report examines the extent to which (1) selected DNN subprograms use program management leading practices to manage schedule and cost (2) DNN has incorporated leading practices in its revised program management policy.
GAO selected 4 DNN subprograms to review that had defined end dates and/or work scope and that GAO had not recently examined. GAO reviewed documentation on DNN and NNSA's program management policies and practices; reviewed selected leading practices published by PMI and GAO; and interviewed agency officials.

What GAO Found

The 4 selected subprograms from the National Nuclear Security Administration's (NNSA) Office of Defense Nuclear Nonproliferation (DNN) GAO reviewed generally do not use selected program management leading practices to manage schedule and cost. According to generally recognized leading practices from the Project Management Institute (PMI) and GAO, programs should (1) establish schedules necessary to achieve the program's goal, (2) establish life-cycle cost estimates, and (3) measure performance against schedule and cost baselines. However, none of the DNN subprograms have schedule and cost estimates covering their planned life cycles and none measure performance against schedule and cost baselines. The following figure illustrates the extent to which the selected subprograms have established schedule and cost estimates compared to their planned life cycles.
NNSA officials said that the subprograms do not have schedules and cost estimates that cover their life cycles and do not measure performance against baselines, in part, because DNN management does not require such estimates or baseline measurements.
The lack of a requirement is consistent with the limitations in DNN's revised program management policy, which does not address leading practices on establishing schedule estimates, estimating life-cycle costs, and measuring against such baselines. According to leading practices, in developing schedule and cost estimates a program should define assumptions tailored to the program such as its life-cycle phases. Updating the DNN policy to include requirements and guidance on cost estimating and tracking performance against schedule and cost baselines could help ensure that NNSA managers and Congress have better information on how much DNN programs and subprograms may cost, the time they may need to achieve their goals, and how effectively they are being executed compared to plans.

What GAO Recommends

GAO recommends that DNN revise its program management policy to require DNN programs and subprograms to follow life-cycle program management, such as requiring life-cycle estimates and measuring against baselines. NNSA neither agreed nor disagreed with the recommendation but plans to take action to revise its policy.