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Program Management Systems Committee

Program Management Systems Committee. EVM for Service Contracts Working Group. Joint Industry/Government Meeting January 29, 2009. Subcommittee Charter. Problem Statement

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Program Management Systems Committee

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  1. Program Management Systems Committee EVM for Service Contracts Working Group Joint Industry/Government Meeting January 29, 2009

  2. Subcommittee Charter • Problem Statement • EVMS is being applied to a variety of services type work scenarios and there is no consistent guidance or policy on how EVMS should be implemented • Charter for Subcommittee: • To develop and recommend policy, process guidance, and/or training to support the implementation of EVMS on services type work • Targeted Exit Criteria: • White Paper - “Guidance for Implementing EVMS on Services Work

  3. Earlier Conclusions • EVM is useful for managing services work; however its application should be scaled to balance the benefits of EVM with program risks and the cost of EVM implementation • EVM is compatible with performance based services acquisition, but there are some issues that require further discussion/resolution (we no longer agree entirely with this conclusion) • It’s important to seek ways to define objective methods for measuring earned value of services • Over-reliance on LOE for services can mask progress on other work • Recommend separate analysis of performance data for development and service work • It may be more appropriate and beneficial to implement EVM at the program level rather than at the individual contract level, e.g., staff augmentation (personal services) work • More flexibility in EVM Systems may be required to enable optimal application of EVM to services contracts, e.g., • Summary-level planning/shorter planning horizons • Allowances in the process for more frequent re time-phasing of budgets • Use WBS process to determine work to manage using EVM and PBSA.

  4. Yesterday’s Participants • Matt Morris • Barbara Phillips • Lucy Haines • Mark Infanti* • Mike O’Neill • Buddy Everage* • Bill Mendelson • Steve Gahm • Eric Christoph • Jeff Christoph *Attended working group session last August

  5. Conclusions • EVMS or PBMS required for services • EVMS useful for discrete projects • Performance-based management is more appropriate for services that are difficult to scope and schedule, e.g., IT services, logistics, maintenance • Management objectives vary among types of services, e.g., when a service is provided in accordance with a service level agreement (SLA), the goal may be to meet the required service level at a planned or lower cost • Commonalities also exist, including • WBS • Resource plan • Metrics, but not necessarily EV

  6. Outline for Guidance Document • Define, compare and contrast products vs. services • Provide guidance for selecting appropriate management methods applicable to the contract scope of work • Many contracts are hybrids – both EVM and PBM could be used on different WBS elements within a single contract • Methods may also vary by contract type • Collect and describe characteristics of various types of services • Write guidance for each, e.g., IT, logistics, depot maintenance, etc. • Provide guidance for contracting, i.e., to put management requirements on contract correctly

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