Earned Value Management

ANSI EIA 748 Earned Value Management

 

The American National Standards Institute/Electronic Industries Alliance standard ANSI/EIA-748, Earned Value Management Systems, is the standard for DoD Earned Value Management programs. The DoD formally adopted ANSI/EIA-748 in August 1998 for application to major defense acquisition programs. ANSI/EIA Standard 748-B-2007 Edition for Earned Value Management Systems (EVMS) is copyrighted so see below for details in getting a copy.

There are two (2) main guides.

  1. ANSI/EIA 748 EVM System Acceptance Guide (Draft): define a process whereby an EVM System Owner (supplier) or government program comply with the EVMS Guidelines.
  2. ANSI EIA 748 EVMS Intent Guide (2005): define in detail the management value and intent for each of the 32 guidelines listed below.

EVMS Compliance (DFARS SUBPART 234.2)
As prescribed in DoDI 5000.2, compliance with ANSI/EIA-748 is required for DoD cost or incentive contracts and agreements valued at or greater than $20M. Compliance with ANSI/EIA-748 and an EVMS validation are required for DoD cost or incentive contracts and agreements valued at or greater than $50M.  If the contract value is less than $50M, then formal validation of the contractor’s EVMS is not required; however, the contractor needs to maintain compliance with the standard.  Contract reporting includes the Contractor Performance Report (CPR) and the Integrated Master Schedule (IMS). [1]

ANSI/EIA-748 EVMS Guidelines
The 32 guidelines described in ANSI/EIA-748 provide a consistent basis to assist the Government and the contractor in implementing and maintaining acceptable EVM systems. The guidelines are: [1]

  1. Define authorized work
  2. Identify Program Organization Structure
  3. Company integration of EVMS subsystems with Work Breakdown Structure (WBS)
  4. Identify organization/function for overhead
  5. Integrate WBS and Organization Breakdown Structure (OBS), create control accounts
  6. Sequential scheduling of work
  7. Identify interim measures of progress, i.e. milestones, products, etc.
  8. Establish time-phased budget
  9. Identify significant cost elements within authorized budgets
  10. Identify discrete work packages
  11. All work package budgets & planning packages sum to control acct
  12. Identify and control LOE budgets
  13. Establish overhead budgets by organization element
  14. Identify management reserve and undistributed budget
  15. Reconcile program target cost goal with sum of all internal budgets
  16. Record direct costs from accounting system
  17. Summarize direct costs into WBS without allocation
  18. Summarize direct costs into OBS without allocation
  19. Record indirect costs
  20. Identify unit costs, equivalent units costs or lot costs
  21. Accurate material cost accumulation by control accounts; EV measurement at right time; full accountability of material
  22. Control account monthly summary, identification of Cost Variance (C) and Schedule Variance (SV)
  23. Explain significant variances
  24. Identify and explain indirect cost variances
  25. Summarize data elements and variances thru WBS/OBS for mgmt.
  26. Implement management actions as result of EVM analysis
  27. Revise EAC based on performance data; calculate VAC
  28. Incorporate authorized changes in timely manner
  29. Reconcile budgets with prior budgets
  30. Control retroactive changes
  31. Prevent all but authorized budget changes
  32. Document changes to Performance Measurement Baseline (PMB)

Get A Copy
Instructions for obtaining ANSI/EIA-748 can be found through the following website: http://www.assistdocs.com, using EIA748 as the document identification number.  The ASSIST site provides a shopping wizard tool to assist Government employees in obtaining a free copy of the standard.  The standard is available for a fee to private individuals and companies through the ANSI website:  http://webstore.ansi.org/.

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