Budgeted Cost of Work Scheduled (BCWS) is the sum of the budgets for all work scheduled to be accomplished with a given time period. It also includes the cost of previous work completed and can address a specific period of performance or a date in time.
A contractor usually reports the Budgeted Cost or Work Performed (BCWP) on all work packages completed for a project. The BCWP is then compared to BCWS to determine if the project is behind or ahead of where it’s projected to be. If the contractor has not completed all the scheduled work packages to time, then the BCWP will be less than the BCWS.
A contractor also reports the cumulative Actual Cost of Work Performed (ACWP) for the work packages that have been completed. The difference between the BCWP and the ACWP is the Cost Variance (CV). If the actual costs at time now (i.e., ACWP) are higher than the earned value at time now (i.e., BCWP), we know that the contractor is currently over running cost and that the contractor’s Estimate at Completion (EAC) may be higher than the Budget at Completion (BAC).
The Defense Acquisition University (DAU) list five main EVM variables:
- BCWS = Budgeted Cost of Work Scheduled
- BCWP = Budgeted Cost of Work Performed
- ACWP = Actual Cost of Work Performed
- BAC = Budget at Completion
- EAC = Estimate at Completion
AcqLinks and References:
- Defense Acquisition Guidebook (DAG)
- DoD Earned Value Management Implementation Guide (EVMIG)
- DAU EVM Gold Card
- DOE EVMS Gold Card