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Congressional Direction

Earned Value Management Systems (EVMS) Defense Support Team (DST) and Report to Congress Mr. Richard Ginman OUSD(A&T)/DPAP Presentation to National Defense Industries Association 21 May 09. Congressional Direction.

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Congressional Direction

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  1. Earned Value ManagementSystems (EVMS) Defense Support Team (DST) and Report to Congress Mr. Richard GinmanOUSD(A&T)/DPAPPresentation toNational Defense Industries Association 21 May 09

  2. Congressional Direction • National Defense Authorization Act (NDAA) for Fiscal Year 2009, Section 887, requires report to Congress on EVMS, including: • A discussion of the regulations and guidance of the Department applicable to the use and implementation of earned value management. • A discussion of the relative value of earned value management as a tool for program managers and senior Department officials. • A discussion of specific challenges the Department faces in successfully using earned value management because of the nature of the culture, history, systems, and activities of the Department, particularly with regard to requirements and funding instability. • A discussion of the methodology of the Department for earned value management implementation, including data quality issues, training, and information technology systems used to integrate and transmit earned value management data.

  3. Congressional Direction (Continued) • An evaluation of the accuracy of the earned value management data provided by vendors to the Federal Government concerning acquisition categories I and II programs, with a discussion of the impact of this data on the ability of the Department to achieve program objectives. • A description of the criteria used by the Department to evaluate the success of earned value management in delivering program objectives, with illustrative data and examples covering not less than three years. • Recommendations for improving earned value management and its implementation within the Department, including a discussion of the merits of possible alternatives. • Report due to Congress on 11 July 2009

  4. USD(AT&L) Direction • Memo of 24 January 2009, “Earned Value Management Systems Performance, Oversight, and Governance” • DUST(A&T) will provide single voice and accountability for EVMS performance oversight and governance. • DST will address issues and make recommendations for improvements for EVMS, from requirements through implementation, to include oversight, governance, and contractual remedies for lack of earned value compliance. • Defense Contract Management Agency (DCMA) will remain EVMS Executive Agent. • Acquisition and Resource Analysis (ARA) within AT&L will continue to be responsible for EVMS data aspects, including data policy, and to be functional leader for Business, Cost Estimating and Financial Management (BCEFM) career field.

  5. EVMS DST Organization • Supported by 5 sub-teams, organized to respond to Sec. 887 requirements: • EVM regulations and guidance. • Relative value of EVM as a tool for PMs and senior officials. • Challenges in using EVM; Criteria for evaluating success of EVM in delivering program objectives. • Training. • EVM implementation, including data quality issues, and IT systems; Accuracy of EVM data and its impact on ability to meet DoD program objectives. • All sub-teams may contribute recommendations for improving EVM management and implementation.

  6. EVMS DST – Way Ahead • USD(AT&L) will submit report to Congress by July 11, 2009 • Reorganize/clarify roles of OSD stakeholders re: EVM policy • The DST will make several recommendations for Departmental action • None of the recommendations require Congressional action • Recommendations fall into 3 categories: • Ongoing DoD Initiatives • Proposals for New DoD Initiatives • Areas Requiring Further Analysis • After USD(AT&L) approval of implementation plans, the DST will monitor implementation of recommendations and consider additional proposals for improvement, as needed.

  7. EVMS DST: Sample Recommendations • Finalize and publish the DoD Over Target Baseline (OTB) and Over Target Schedule (OTS) Handbook • Publish a DoD Guide to Analysis of Earned Value Management and Cost Data • Update the DoD Earned Value Management Implementation Guide (EVMIG) and improve configuration control of the EVMIG • Improve compliance with DoD Central Repository (CR) requirements • Continue development of EVM diagnostics tools • Continue dialog with NDIA to discuss how to address EVM system compliance issues across the industrial base

  8. Point of Contact Mr. Michael PelkeyOUSD(AT&L)DPAP (703) 614-1253 michael.pelkey@osd.mil

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