Earned Value Management

The Integrated Program Management Report (IPMR) is a contractually required report, prepared by the contractor, containing performance information derived from the contractor’s internal Earned Value Management System (EVMS). It provides the status of progress on the contract. [1] The IPMR DID takes a major step towards improving the integration of cost and schedule reporting by …

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The Estimate at Completion (EAC) is an independent forecast for what it will cost to complete any given level of effort in the Work Breakdown Structure (WBS). EAC is a tool used in Earned Value Management (EVM) and cost estimation and is equal to the Actual Cost of Work Performed (ACWP) plus the ETC for …

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Control Account (CA) is a management control point at which budgets (resource plans) and actual costs are accumulated and compared to earned value for management control purposes.  A control account is a natural management point for planning and control since it represents the work assigned to one responsible organizational element (or integrated product teams) for a …

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A Work Package (WP) is a natural subdivision of a Control Account (CA). A work package is simply a task/activity or grouping of work and is the point at which work is planned, progress is measured, and earned value is computed. It can be translated into different terms in different companies and functions. It can …

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The Total Allocated Budget (TAB) is the sum of all budgets allocated to a contract for authorized work but doesn’t include profit or fee. The TAB consists of the Performance Measurement Baseline (PMB) and all Management Reserve (MR). The TAB reconciles directly to the Contract Budget Base (CBB). If the TAB is greater than the …

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  A Summary Level Planning Package (SLPP) is an aggregation of work for far-term efforts, not able to be identified at the Control Account (CA) level, which can be assigned to reporting level Work Breakdown Structure (WBS) elements (and is therefore not “Undistributed Budget”). [1]   SLPP are used to establish high-level holding accounts for …

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The To Complete Performance Index (TCPI) is a comparative Earn Value Management (EVM) metric used primarily to determine if an independent estimate at completion is reasonable. It computes the future required cost efficiency needed to achieve a target Estimate at Completion (EAC). TCPI Definition: The To Complete Performance Index (TCPI) is a measure of the …

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The Performance Measurement Baseline (PMB) is an important tool in earned value management used by Program Managers and Systems Engineers in the Technical Assessment Process to appraise a program’s technical progress.  It includes the undistributed budget, all summary level planning package budgets, and all control account budgets but does not include management reserve. It establishes …

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The purpose of the Validation Review is to conduct a formal assessment of a contractor’s proposed EVMS compliance with ANSI/EIA-748.  Successful demonstration of the EVMS and completion of the review results in the validation of the contractor’s EVMS.  The primary objectives of the VR are to: [1] Evaluate management system capabilities against ANSI/EIA-748 Assess the …

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An Integrated Baseline Review (IBR) is a joint assessment conducted by the government Program Manager (PM) and the contractor to establish a mutual understanding of the Performance Measurement Baseline (PMB). This understanding provides for an agreement on a plan of action to evaluate the risks inherent in the PMB and the management processes that operate …

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