Hearing on National Science Foundation Management
of Large Facilities
Statement of
Dr. Christine C. Boesz, Inspector General
National Science Foundation
Before the House Committee on Science
Subcommittee on Research
September 6, 2001
Chairman Smith, Ranking Member Johnson, and distinguished
members of the Subcommittee, I appreciate the invitation
to appear before you today. As the National Science
Foundation continues to increase its investments in
large infrastructure projects, its oversight of timely
and cost effective construction and management, while
achieving the intended science, becomes ever more
important. I am pleased to inform you that NSF and
my office are working together on this challenge.
Following an audit of Gemini Telescopes last year,
my office recommended that NSF develop clearer policies
and procedures for managing all aspects of large facility
projects, emphasizing fund control and effective project
management. In developing these recommendations, my
staff interviewed NSF employees and reviewed its current
written policies and procedures. We also looked at
the guidance used in other Federal agencies.
In addition, the President mandated in his budget Blueprint
that NSF develop a plan to enhance its capability
to estimate costs and to provide oversight of large
facility project development and construction to ensure
that NSF is able to adhere to cost and schedule commitments.
In response to both the President's mandate and our
audit recommendations, NSF has been developing a Large
Facility Project Management and Oversight Plan. This
Plan covers both pre-award and implementation phases.
My comments are focused on the implementation phase.
I believe that the most constructive role for my office
is to ensure that sound business and management practices
are in place in order to advance NSF's scientific
goals. NSF's Plan clearly represents progress, particularly
in raising the profile of project construction and
management within the agency. However, key areas of
implementation still need to be addressed.
First, NSF should clarify who will have responsibility
for final oversight and accountability for each large
facility project. The Plan envisions two distinct
organizational structures: one for scientific project
management and the other for administrative oversight.
There may be times when there will be differences
on how to proceed, so clarity is needed on how any
differences will be resolved.
Second, the Plan specifies that an awardee institution
will manage all aspects of project implementation
and report to NSF on its progress. Clarification is
needed on how NSF will ensure that an awardee has
the necessary project implementation capabilities.
I believe that project implementation capability could
even become a decision criterion for funding. Because
NSF relies heavily on the project management skills
of its awardees, we recommend that NSF evaluate the
required awardee management plans as an integral part
of the selection process.
Third, the Plan should include information on a comprehensive
training program on all aspects of large facility
construction and management. Training should address
basic project and financial management skills as well
as NSF's new guidelines and procedures as they are
developed and implemented.
Fourth, once NSF makes an award, it will need to ensure
that the management plan is implemented and that its
results are monitored. A management plan is a focal
point that could and should be used as a benchmark
in an ongoing oversight process. While a thorough
and effective planning process is critical, active
and ongoing project oversight is equally important.
The Plan indicates that oversight teams will conduct
progress reviews, and I look forward to seeing the
details on how the results will be used to ensure
the successful and timely completion of the projects.
Finally, I am mindful that NSF has set for itself ambitious
and challenging milestones for implementation of the
Plan. Because of the importance of this effort, NSF
should continue to use the necessary expertise to
develop guidelines and build project management capabilities
while it recruits for a Deputy for Large Facility
Projects.
As NSF moves forward with implementation of its Plan
and the corresponding guidelines and procedures, my
office will continue to have a role. First, because
the Plan was partially developed in response to an
audit recommendation, we will conduct a follow-up
review to ensure that it has been fully implemented.
Second, my office will periodically review NSF's oversight
process and, if necessary, make recommendations for
improved efficiency and effectiveness. I believe that
it is NSF's responsibility to manage and oversee its
awards, including 1) assessing whether proposed project
funds are adequate to achieve scientific goals, 2)
ensuring that awardees are exercising proper project
management, 3) determining whether an entity has proper
accounting systems in place, and 4) ensuring that
the scientific goals of the project are achieved.
NSF should conduct regular reviews to make certain
that the management plans submitted to and approved
by NSF are being followed, or that variances are justified.
Because management of large scientific facilities
is one of the agency's top ten management challenges,
we will continue to make these projects priorities
in formulating future audit work.
In addition, my office will remain available to assist
in specific areas for which we have expertise, such
as pre-award reviews of budgets and indirect cost
rates.
In conclusion, I want to emphasize that NSF's Large
Facility Projects Management and Oversight Plan is
an important first step to ensuring that these projects
provide their intended research benefits while also
providing appropriate stewardship over public funds.
I recognize that balancing these two objectives may
sometimes be difficult. This Plan lays the groundwork
for NSF's efforts to strike this balance and thereby
meet one of its management challenges.
Mister Chair, that concludes my statement. Thank you
for the opportunity to share this information with
you. I would be pleased to answer any questions that
you may have.
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