Department of Energy cow! 241691 ‘Maho Operations Office 1955 Fremont Avenue Idaho Falls, ID 83415 November 30, 2017 Dr. Mark T. Peters, President and Laboratory Director ‘Battelle Energy Allianee, LLC P.O. Box 1625 Idaho Falls, ID 83415-3695 SUBJECT: Contract No, DE-ACQT-0SID14517 - Performance Evaluation and Fee Determination forthe Period October 1, 2016, through September 30, 2017, Fiscal ‘Year 2017 (AS-CMD-INL-18-018) Dear De. Peters [Enclosed for your review and information is the Department of Energy (DOE) evaluation of Idaho "National Laboratory (INL) performance forthe period ending September 30, 2017. After considering all of the information related to INL performance during the rating period, including the Fiscal Year (FY) 2017 INL Self-Assessment Report, I have determined that the overall eared fee forthe FY 2017 Performance Evaluation and Measurement Pan (PEMP) is $15,520,000, which amounts to 97% of the total available fe, The tabulated grades for the Goals and Objectives in the FY 2017 PEMP are provided in Enclosure 1. The paragraphs below provide a synopsis of performance related tothe FY 2017 PEMP. The detailed evaluation for each PEMP Objective is provided in Enclosure 2. Fee eamed i caleulated ‘based on a weighted numeric score for Goal | (Efficient & Effective Mission Accomplishment), Goal 2 (Efficient & Effective Stewardship & Operation of Research Facilites) and Goal 3 (Sound & Competent Leadership & Stewardship ofthe Laboratory), For Goals 4-7 (Safety/Health & Environmental Protection, Business Management, Facility Infrastructure, and Safeguards & Security Management), DOE sets high expectations and expects performance at that level o fully support the Laboratory's current and future science and technology missions. Thus, Goals 47 are collectively assigned a Fee Multiplier no greater than 1.0. When taken together, the overall grade eamed for Goals 1, 2 and 3 was “A” with a Fee Multiplier of 10, resulting in a Final Letter Grade of A, EY.2017 Synoy ‘As noted, specific details regarding the DOE evaluation of INL performance are included in Enclosure 2, In FY 2017, INL continued to conduct relevant and impactfl research activities, continued to build onthe laboratory's mission asthe Office of Nuclear Energy (NE) lead nuclear ‘energy laboratory, and continued to develop the INL's reputation as a world-class laboratory. INL. exceeded almost all of the significant award fee goals and objectives and met overall cost, schedule ‘and technical performance requirements of the contract in the aggregate as defined and measured in ‘the PEMP for the award fee evaluation period, including successfully completing all notebleDr. MarkT. Peters November 30, 2017 outcomes. INL performance exceeded expectations made toward realizing strategic objectives with Positive impact on DOF's mission. ‘The INL produced high quality, original, and creative results that advanced science, engineering, and technology across the laboratory research and development portfolio. Of particular notes the leadership role the laboratory is playing in working to revive, revitalize and expand nuclear power to ensure the reliability and resiliency of baseload power to meet the nation’s energy needs. The [NL continued to facilitate innovation in nuclear energy technology through the Gateway for ‘Accelerated Innovation in Nuclear (GAIN) and the Nuclear Science User Facilities (NSUF), providing access to test facilities and expertise across the national laboratory, university, industrial and international nuclear communities to pair the best ideas for advancing nuclear energy with capabilities to see those ideas come to fruition. The INL worked on early-stage research for ‘multiple advanced reactor developers addressing materials, fels, fundamental property ‘measurements, instrumentation and control systems, and modeling and simulation, Additionally, the INL continves to expand is role as & multi-purpose laboratory with notable contributions in addressing pressing national and energy security needs for numerous work sponsors as evidenced by the cutting edge work in industrial control systems eyber security research and progress on the cyber core initiative, as well as, nonproliferation; integrated energy systems; advanced ‘manufacturing; and critical materials. Overall, the research, development, demonstration and ‘deployment activities conducted at the Laboratory have shown significant positive impact to DOE andor other sponsor missions. INL continuod afforts to ensure laboratory facilites are being weed to effectively conduct influential research and generate impactful results. MEC performance improved with enhancements to existing capabilities and new capabilites being brought on line, including the installation of ‘equipment and completion of readiness activities to continue to expand the examination work ‘conducted in the Irradiated Materials Characterization Laboratory (IMCL). Of particular noe is the preparation for resumption of operations atthe transient reactor test facility (TREAT), which was accomplished 12 months ahead of schedule and for nearly $20 million less than originally estimated. Another important accomplishment was the completion of construction of the Remote Handled Low-Level Waste (RH LLW) facility. Also noteworthy is the International Atomic Energy ‘Agency (IAEA) recognition ofthe INL as an International Centre based on Research Reactors (CERR), ‘The laboratory senior leadership and management team continued to make significant progress over the previous year in realizing the vision forthe laboratory and through this had a demonstrable Positive impact on the Department and the nation. The INL Laboratory Director and members of {he INL senior leadership team provided excellent representation for the institution in a wide range ‘of national and international forums which served to enhance the scientific and technical credibility and recognition of the INL. The INL Laboratory Director andthe INL senior leadership team continued to provide very effective leadership. The INL leadership team continued taking ation to reinvigorate and enhance the quality ofthe INL workforce via expansions of post-doctoral, {internship and joint appointment programs as well as strategic and critical hires. Also noteworthy is the INL’s continued leadership in and commitment to science, technology, engineering, and mathematics (STEM) education activities at all levels from individual mentoring, to large group ‘outreach activites to teacher workshops, and policy activites atthe state, regional and national levels, as well as support of NE and DOE communication initiatives. However, as positive as the ‘overall performance of the laboratory was in 2017, there continue to be opportunities forDr. Mark; Peters 3 November 30,2017 provement in work planing and excoution, condue of operations and ATR outage luningfexecution and integration of experimenttest activites eros the laboratory. Adktonally the DOE specifically expressed concems witha negative tend in safety related events across the INL, which BEA responded assertively and effectively to addres. The INL senor leadership ‘management team continued to implementa robust contractor assurance system, while working fo instil a culture of accountability and responsibilty throughout the organization, asa bass for addressing identified issues. Progress will ned to continue to be made in addressing the ‘opportunities fr improvement and these leadership and management challenges to ensure there is no degradation in overall laboratory performance and to improve the availability of ATR for experimental programs Adjustments to Eamed Fee: Grades for the Objectives in Goals 4-7 ranged from A to B+ fora Fee Multiplier of 1.0. DOE did not identify any specific areas of concem that would warrant additional reductions in earned fee As such, I have determined that the total earned fee for FY 2017 is $15,520,000 witha final overall sgrade of “A” and an adjectival rating of “Excellent.” ah ro Fee Determination Official Enclosures ‘ce: Edward G, MeGinnis, DOE-HQ Raymond V, Furstenau, DOE-IQ Dennis M. Miotla, DOE-HQ ‘Adam D. 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