Project Management and the Project Management Manual

1.1 INTRODUCTION AND KEY TERMS
This chapter provides an overview of the Department of Energy (DOE) Acquisition Management System and introduces the various phases of a project life cycle. The relationship between projects and programs is discussed and the capital asset planning, programming, and budgeting process is summarized.
Key terms used in this chapter include the following:

• Secretarial Acquisition Executive
• Acquisition Executive
• Critical Decision
• Major System project
• Mission Need Statement
• Other Project Costs
• Project Engineering and Design funds
• Performance Baseline
• Total Project Cost
• Total Estimated Cost

1.2 ACQUISITION MANAGEMENT SYSTEM
The Acquisition Management System establishes a management process to translate user needs and technological opportunities into reliable and sustainable facilities, systems, and assets that provide the required mission capability. The system is organized by phases and “Critical Decisions.” The Deputy Secretary serves as the Secretarial Acquisition Executive (SAE) for the Department. As the SAE, he promulgates Department-wide policy and direction, and personally makes Critical Decisions for Major System projects. Designated Acquisition Executives make Critical Decisions for non-Major System projects. The phases represent a logical maturing of broadly stated mission needs into well-defined technical, system, safety, and quality requirements; and ultimately into operationally effective, suitable, and affordable facilities, systems, and other end products. Figure 1-1 illustrates the overall Acquisition Management
System.