The budgeted Cost of Work Performed (BCWP) is the budgeted cost of the value of work that has actually been accomplished or completed to date. It can be used to address the entire project, individual task, or work packages. It’s compared against Actual Cost of Work Performed (ACWP).  BCWP is a tool used in Earn Value Management (EVM) and is also called Earned Value.


Download: Defense Acquisition University (DAU) EVM Gold Card


A contractor usually reports the BCWP on all work packages completed for a project. The BCWP is then compared to Budgeted Cost of Work Scheduled (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 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 overrunning 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 (5) main EVM variables:


AcqLinks and References:

Updated: 6/15/2018

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