Earned Value Management

The Integrated Program Management Data and Analysis Report (IPMDAR) 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] Update: The Integrated Program Management Report (IPMR) has been renamed to the Integrated Program […]

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

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

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

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

  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

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

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

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

An Integrated Baseline Review (IBR) (FAR 34.202)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

Earned Value Management Surveillance is required for all contract efforts that require the implementation of an Earned Value Management System (EVMS) compliant with the guidelines in ANSI/EIA-748, regardless of whether a formal system validation is required. For the life of the contract, surveillance will be conducted on a recurring basis and should evaluate both the

The Program Manager (PM) should use Defense Federal Acquisition Regulation Supplement (DFARS) clauses 252.234-7001 and 252.234-7002 to place the Earned Value Management (EVM) Solicitation requirement in solicitations and contracts.  There is a single set of clauses for Earned Value Management System (EVMS) compliance and determination, and a different set for EVMS compliance. See the figure below.

An Earned Value Management System (EVMS) can be defined as an integrated management system and its related sub-systems, which allow for: [1] planning all work scope for the program to completion assignment of authority and responsibility at the work performance level integration of the cost, schedule, and technical aspects of the work into a detailed

Contracts Less than $20M The application of Earned Value Management (EVM) is not required on cost or incentive contracts or agreements valued at less than $20M. The decision to implement EVM on these contracts and agreements is a risk-based decision, at the discretion of the Program Manager (PM), based on a cost-benefit analysis that compares the

Documentation of the Earn Value Management System (EVMS) should be established according to the standards of the company. Most companies develop an EVMS System Description as their top-level document. It is a good business practice to provide adequate policies and procedures to assure consistent application across a company.  Additional guidance for companies is contained in

A Business Case Analysis (BCA) is a persuasive and compelling argument advocating a course of action to achieve one or more business objectives.  A well-constructed business case presents a definite point of view and should prove to the decision-maker that the recommended action is the best option. A BCA application of Earn Value Management (EVM)

The Defense Contract Management Agency (DCMA) is DoD’s Executive Agent for EVMS. In its role as Executive Agent, DCMA has responsibility for EVMS compliance, validation, and surveillance. [1] Compliance with Validation (DFARS Subpart 234.2) An offeror that proposes to use an EVMS previously accepted by the Government may satisfy this requirement by citing the Advance Agreement

The Advanced Agreement (AA) between the DoD Program Office and contractor specifies that the contractor maintains and uses the accepted EVMS as an integral management process on current as well as future contracts. The AA also documents the Government’s intent to minimize system reviews.  The AA also documents a contractor’s corporate commitment to continue to

The PARCA Earned Value Management Central Repository (EVM-CR) is a CR that helps to improve the quality, utility, and availability of the Earned Value Management (EVM) data for the purposes of establishing acquisition situational awareness. It’s a joint effort between Defense Cost and Resource Center (DCARC), and the Office of the Under Secretary of Defense (OUSD) (A&S), managed

  DoD Acquisition and Sustainment (OSD/A&S) The office of the Undersecretary of Defense for Acquisition and Sustainment, Acquisition Resources and Analysis, Acquisition Management (OUSD/AT&L (ARA/AM)) oversees all EVM policy development within DoD. – See OSD Earned Value Website   DoD Executive Agent Defense Contract Management Agency (DCMA) is designated as the DoD Executive Agent for

Earned Value Management (EVM) is a Project Management technique for measuring project performance and progress in an objective manner. It’s a key integrating process in the management and oversight of acquisition programs, to include Software Management. EVM must be applied to manage and control software development and the strategy should be included in the Software

Deficiencies may be uncovered either in the Earned Value Management (EVM) system processes or in the consistency and discipline of the validated processes. These deficiencies may be discovered during routine surveillance, during analysis of performance data or during team reviews. The information provided details the specific area(s) of deviation. The procuring activity and EVM Support

The purpose and objectives of a Defense Contract Management Agency’s (DCMA) Earned Value Management System (EVMS) Compliance Review is to make sure a contractor is effectively using an internal cost and schedule management control systems and for the Government to be able to rely on accurate, valid, reliable, timely, and auditable data produced by those

The Cost and Software Data Reporting (CSDR) system is the primary means that DoD uses to collect actual cost and related business data on Acquisition Category (ACAT) I and ACAT IA defense contracts. Program Managers (PM) use the CSDR system to report data on contractor development and production costs and resource usage incurred in performing

A contractor Earned Value Management System (EVMS) Validation Plan is required by DFARS Subpart 252.234-7001 and requires that a contractor be prepared to demonstrate that the contractor’s EVMS meets the guidelines set fort in ANSI/EIA-748.  The contractor should prepare a plan to achieve validation and submit the plan as part of the proposal.  The plan shall: