National Nuclear Security Administration
Kansas City Plant Transformation
KCRIMS / NSMC
Kansas City Responsive Infrastructure Manufacturing & Sourcing
National Secure Manufacturing Center
Rick Lavelock
Sr. Program Manager
Honeywell FM&T
“The KCRIMS project, including the NSMC facility, is a cornerstone of
the future success of the DOE.”
- Steven Chu
Secretary of Energy
KCRIMS / NSMC Program Timeline
Calendar Years Shown
SAIC Alternate
Site Study
KCRIMS Draft
Business Case
Facility
Acquisition
Report
D’Agostino
Congressional
Testimony
NEPA EA
Decision
RI Roadmap
3
4
1
2
1
2
2005
3
SEAB
Report
4
Site Selection &
Press Release
3
4
1
2
4
1
2
2006
Strategy
Team
NNSA
January
Process
3
Functional
Teams
NEPA
NOI
CD-0
Restart
Solicitation
3
Draft EA Public
Comment Ends
4
1
2
4
1
2
2007
3
CD-1
Joined GSA for
Facility Acquisition
1
2
4
1
2
NEPA
Appeal
Dismissed
Financing
Secured
NEPA
Suit Win
3
4
1
4
1
2009
3
IPR
Mitigated
GSA
FONSI
Congressional Bid
Bust
Approval
OMB
Approval
First KCRIMS
Transformation Plans
4
2008
Solicit
Developers
KCRIMS Final
Business Case
3
Developer
Selected
BAFO
Short
List
NEPA
Briefs
Completed
Bids
Received
NRDC
NEPA
Suit Filed
NSMC
MOA
2
3
2010
3
Lease / PIEA
Negotiations
2
3
PIEA
Finalized
Lease
Agreement
Lease Signed
Construction
Start
KCRIMS Transformation Plan
Elements
2005
KCP
2014
KCP
KCRIMS
Maintenance
Of Cold War
Era Capacity
and
Redundant
Capabilities
Commercial
Supply
Base
• 65 years old
• 3.1 M ft2
• 2950 employees
• High fixed costs
• Low utilization
• 55% outsourced
Revised
Governance
Strategic
Sourcing
& Sizing
Enablers
Business
Process
Transformation
New
Facility
Transformation
Actions
Transformation
Elements
Integrated
Interdependent
Enterprise
Responsive
Infrastructure
Commercial
Supply
Base
• Modern Infrastructure
• 1.0 M ft2 (DP Mission)
• 2300 employees (given
same workload)
• Low fixed costs
• Reconfigurable
• 70% outsourced
Reduces footprint over 50% and operational costs by 25%
Current Bannister Federal Complex
NNSA
3.1 M ft2 Controlled
2.8 M ft2 In Use
GSA
& Tenants 2.0 M ft2 Controlled
National Security Campus Site Plan
For the 20 year lease, the
real estate assets will be:
• Owned by: PIEA
• Designed, built, financed
and maintained by: CPZ
• Leased by: GSA
• Occupied & operated by:
NNSA/Honeywell
Facilities design for flexibility to accommodate all plausible stockpile scenarios.
Site Construction Progress
KCP Transformation Schedule Summary
2006
2007
2008
Phase 1:
2009
2010
2011
2012
2013
2014
Facility Acquisition &
Business Transformation
2015
Cost
$138M
Final IT &
Security Install
Private
Construction
Phase 2:
Rolling 19
Month Relocation
Occupancy Project
Including Relocation
Phase 3:
Bannister Disposition
Planning & Execution
$705M
(Private Funds)
$291M
($264 KCRIMS)
($27 NSMC)
$85M
_______
Integrated Phases for a Comprehensive Transformation
$1,219M
KCP Operating Requirements
Before
Transformation
After
Transformation
(1/30/2007)
1/31/2008
1/31/2009
1/31/2010
DOE Orders
87
30
31
31
41
DOE Regulations
13
5
5
5
5
DOE Requirements
30
11
10
10
11
NFPA
14
12
12
12
2
Standards/Codes
8
8
8
6
6
Other
8
7
7
7
7
Total
160
73
73
71
72
Directive
55% Reduction in Operating Requirements
KCRIMS Status
Outsourcing
Build Aheads
204/204 Parts = 100% Complete
10,352 Pieces Complete = 117% of Plan
12000
10000
Actual
8000
Committed
6000
4000
2000
0
1
2
3
4
1
2
3
4
1
2
FY09
FY08
Inventory Reduction
Cumulative Labor & Expense Savings = $236M
Space Requirements Reduced 63%
Escalated FTI Cost Targets
4
FY10
Business Process Transformation
400
3
300000
3000
FY10 Actual Costs
350
FTI Headcount Targets
FY10 Q4 Headcount
250000
2500
300
200
1500
150
1000
Headcount
Millions $
250
Square Feet
200000
2000
150000
100000
50000
100
500
50
0
0
06
07
08
09
10
11
12
13
14
15
16
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
Plan
303210
178000
158000
141000
128000
112300
97800
80800
60000
Actual
196691
178000
157800
140800
127000
111900
FY yr end
KCRIMS Strategic Sourcing & Sizing
Strategic Sourcing and Sizing Plan:
NNSA Mission Space
Manufacturing Space
Administrative Space
Total Usable Space
Make Parts (approx)
Buy Parts (approx)
From
1.26 M
1.84 M
3.10 M
To
0.65 M
0.35 M
1.00 M
From
3800 (46%)
4400 (54%)
To
1000 (35%)
1800 (65%)
Note: Changes in total numbers due to W80 and B61 requirements changes.
Major Sourcing Activities:
• Plating
• Cables
• Injection, Compression,
& Transfer Molding
• General Machining • RTV Silicone & RTV
Desiccant Molding
• Printed Wiring
Assemblies
• Thermoforming
Major Process Changes:
• Liquid Spray Paint changing to
Powder Coating
• Repackaging/Testing
Carcinogen encapsulant
FTI Accomplishments to Date
1. Shut down the Flexible
Manufacturing System (FMS)
11. Transitioned HR & Staffing to HON
Corporate model
2. Eliminated the on-site Fire
Department
12. Consolidated over 90 software
applications
3. Eliminated the Emergency
Operations Center
13. Implemented Engineering Support
Specialist
4. Closed down and outsourced the
Plating Department
14. Consolidated IT servers
5. Implemented additional outsourcing
of products
6. Implemented new IT tools for
Finance and Program Management
7. Consolidated store rooms/reduced
inventory
8. Implemented Honeywell Operating
System (HOS)
9. Implemented Fact-Based Quality
(FBQ)
10. Executed co-sourcing plan for IT
services
15. Outsourced staffing administrative
support
16. Implemented a facilities pause plan
17. Outsourced Medical Services and
Carpenter Shop
18. Consolidated Waste Management
Functions
19. EDSV Data Center shut down
Transition Governance Structure
NNSA HQ
NNSA KCSO
Honeywell
Corporate Oversight
Transition Approval Committee
(TAC)
Chris Gentile
Robin Stubenhofer
Bill Ross
David Feather
Sending
Team
Security
Mike Ginder
Steve Zvacek
Transition
Process
Expert
Chris Gentile / Bill Ross
Transition Leads
NSMC
Production
Production
Linda
Dan
Wright
HSE
Sourcing
Grote
Don
Linda
Fitzpatrick
Wright
Facilities
Mike Ginder
Bart Stuckey
Gloria Zarrella
Brian Fischer
Jeff Fuller
* *
*
Brad
Hughes
* *
IT
John Engel
Philip
Clark
Biz Ops
Kevin
Baughn
HR
Gina
Angello Lobaugh
*
*
PM
Robert
Repine
Quality
Rick
Vanhoose
ISC
Curtis
Mears
New Facility
Dan Fritts
Jim Jeffries
Relocation
Dale Lock
Bridge
Functions
Transition Program Management
KCRIMS - Rick Lavelock
FTI – Steve Halter
NSMC – Steve Halter
NSMC Growth – Dave Lowe
Integrated Project Planning – Diana Blackburn*
Communications – Sharon Robinson
Red denotes NSMC leader or co-leader
* denotes NSMC POC added to team
NSMC
Production
Production
Linda
Lee
Wright
HSE
Facilities
Hoover
Curt
Denny Fulmer
Valle
Bart
Stuckey
* *
Security
Russel Bruch
Steve Zvacek
Kurt
Lorenzen
* *
IT
John Engel
Philip
Clark
Biz Ops
Kevin
Baughn
HR
Gina
Angello Lobaugh
*
*
PM
Robert
Repine
Receiving
Team
Quality
Rick
Vanhoose
ISC
Rick
Vanhoose
KCRIMS Strategic Sizing Summary
Function
Delivers reductions
in infrastructure
costs while fulfilling
NNSA mission
requirements
Current
(sq. ft.)
Future
(sq. ft.)
Plating Facility
22,252
-
Refurbishment & Dismantlement
20,589
12,000
Rubber & Plastics Manufacturing
96,646
38,400
Paint & Heat Treat
24,533
10,000
Machining & Gas Transfer Systems
206,293
102,500
Assembly & Electrical Fabrication
227,583
162,450
Trailers
34,642
-
Special Material Production
25,256
22,300
Purchased & Other Inspection
44,125
34,500
160,898
73,300
Test Equipment, Gage Support & Metrology
66,240
29,700
Packaging & Shipping
27,604
20,800
303,210
60,000
1,259,871
565,950
Labs & Engineering Labs
Storage Areas
Sub - Total
Allocated White Space (Included Above)
21,050
Unallocated White Space
62,800
Total Manufacturing Space
628,750
Relocation Planning
Macro Plan Update Results
–
–
–
–
Update to overall & phase durations – Move Phases: 105: KCRIMS – 100; NSMC - 5
Changes/Additions to the Macro Plan (i.e. equipment quantities)
Confirmation of departmental sequencing
Factors in resource constraints
• Move Duration
–
Start dates following Security Transitions (Two months after bldg completion for KCRIMS, Four months for NSMC)
• KCRIMS: January 23, 2013 – August 7, 2014 (391 working days) ~18.5 Months
• NSMC: September 10, 2013 – January 23, 2014 (93 working days) ~ 4.5 Months
KCRIMS/NSMC Project Summary
 Reduces KCP operational cost by $100M annually (FY06 dollars)
 Reduces KCP total footprint by over 50%, weapons funded space by 2/3rds
 Project has positive cash flow (savings > costs) for entire duration
 Reduces energy consumption by over 50%, LEED Gold sustainability
 Flexible to accommodate any all anticipated stockpile scenarios
 Lease allows easy adaptation of future NNSA business model
 Comprehensively planned to assure schedule deliveries
 Full and robust risk management program
 Provides 1500 construction jobs and generates $1.2B of near term stimulus
Project Demonstrates Responsible Government
KCP National Security Campus
Questions?