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Program Management Systems Committee. Current Initiatives in Earned Value Management. Procurement Division Educational Seminar 31 March 2008 Sarasota, Florida. The State of EVM. Needs improvement More training needed in the civilian agencies More aggressive DCMA has identified problems

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program management systems committee

Program Management Systems Committee

Current Initiatives in Earned Value Management

Procurement Division

Educational Seminar

31 March 2008

Sarasota, Florida

the state of evm
The State of EVM
  • Needs improvement
  • More training needed in the civilian agencies
  • More aggressive DCMA has identified problems
  • We acknowledge that we are a part of the problem
  • It’s time to partner with our stakeholders and identify new solutions
pmsc opportunities
PMSC Opportunities
  • Increase commonality and consistency of EVM implementation across industry and government
  • Proactive and timely resolution of contractual EVMS implementation and oversight issues
    • Incorrect/Conflicting EV Contract Requirements
    • FAR Clauses Cited
    • DFAR Clauses Omitted
    • H-Clauses and SOW That Direct System Violations
  • Share industry and government best practices and lessons learned
  • Review and discuss industry/government EVM policy and guidance
  • Improve EVM skill set (people, processes and tools)
  • Work with educational institutions to develop EVM course curricula
more aggressive dcma
More Aggressive DCMA
  • Executive Agent for Earned Value Management Systems
    • Responsible for Determining Initial and Ongoing EVMS Compliance for All DoD Suppliers (including Subs)
  • DCMA Re-energizing EVM within Pentagon
    • Recent Review Results Have Heightened Interest
  • Instituted Standard Review Methodology using new Standard Surveillance Operating Manual (SSOM)
    • Did not coordinate with industry before issuance
    • Issuing Contract Action Reports where they had not before
what dcma has seen in plant
What DCMA Has Seen In Plant
  • Systemic EVMS Weaknesses
    • Across Programs, Suppliers and Buying Commands
      • CAM Knowledge Problems
      • Span of Control Issues
      • Inadequate Schedules
      • Data Integration and Integrity Problems
      • Undisciplined Work Authorization and Change Control Processes
      • Poor Variance Analyses
      • No Formal Corrective Action Processes
      • Inadequate Estimate at Completion Procedures
      • EVM Used to Report Data, Not as a Management Tool
pmsc initiatives
PMSC Initiatives
  • Encourage joint industry/government training:
    • Scheduling - Contracting for EVM
    • EVM - IBR
    • Surveillance - Acceptance
  • Engage the Program Management community in pursuit of our objectives:
    • DoD - Intelligence agencies
    • OMB - Civilian agencies
    • GAO - DAU and FAI
    • Professional Associations
industrial committee for program management
Industrial Committee for Program Management
  • PMSC set up meeting with Dr. Finley
    • Concern over lack of DoD participation in the PMSC by his direct staff relevant to EVM (i.e., System Engineering, Contracts, etc.) Other disciplines need to be at the table for more PM representation not just the EVM
    • Open up the communication lines to offer better integration of activities
  • Result of meeting – establishment of ICPM to improve Program Management of DoD programs
    • Provide a continuing forum for government-industry discussions and exchange of views related to program and acquisition management activities.
    • Discuss OSD and DoD Component policies that affect relationships with suppliers.
    • Discuss emerging issues in government and industry that affect the readiness and capabilities of U.S. defense system producers.
Mike Joyce (Chair) – Lockheed Martin

Dr. Jim Finley (Principal Govt Participant) –Deputy Under Secretary of Defense (Acquisition & Technology)

Dave Ahern – OUSD A&T Director, Portfolio Systems Acquisition

Vice Adm David Architzel – Navy

LGen Donald Hoffman – AF

MGen Steve Reeves - Army

Steve Goo – Boeing

John Chino – Northrop Grumman

Skip Burns – Raytheon

Ron Hornish – Rockwell Collins

Mike Blake – Textron

Susan Dong – BAE Systems

Bennett Croswell – Pratt & Whitney

Bill Altman – Battelle (for Steve Kelly)

Neil Albert – NDIA PMSC

Pete Wynne – NDIA PMSC

contracts subcommittee
Contracts Subcommittee
  • In addition to including FAR or DFARS EVMS clauses on contracts, contracting officers frequently include other provisions that often require suppliers to modify or depart from their standard, validated EVM Systems .
  • The use of a single EVMS by all program participants to manage large programs involving major subcontractors is viewed as non-compliant to the DFARS EVMS clause by DCMA.
    • This approach also referred to as badgeless, virtual, or gray badge.
    • Characterized by adoption of a single validated system to manage the effort (typically the prime’s EVMS), use of a common tool set, integrated schedules and performance reporting
    • DCMA’s stated policy is to issue Corrective Action Request (s) against the contractor for following contract direction
Contracts Subcommittee
  • There is a widespread EVM knowledge gap among the contracting communities
  • Evidence that EVM and Contracting experts are not collaborating, via IPTs, on the contractual application and use of EVMS during acquisition planning
  • Evidence of this is as follows:
    • Incorrect flow down and/or omission of EVM contractual requirements.
    • Improper contract direction forcing the contractor or subcontractor to violate their approved system.
    • Over application of EVM requirements
    • Improper use of Management Reserve (MR)
    • Integrated Baseline Review (IBR) timing
  • NDIA PMSC should establish an Industry / Government team to generate a briefing and communication/training package which can be delivered to all federal agencies and contractor organizations.
Service Contracts Subcommittee
  • Charter for Subcommittee: Develop and recommend policy, process guidance, and/or training to support the implementation of EVMS on services type work.
  • EVM and PBSA are compatible and should be used together.
    • Both use a WBS to develop the requirements, cost and schedule and must have a defined method of measuring performance.
  • Common Approach
    • Control Account for PMO
      • Work Package 1: Project Management
      • Resources: Fixed, Project Manager - One charge number, LOE
      • Work Package 2: Project Control
      • Resources: Fixed; Scheduler, Financial Analyst, EV Specialist, Data Entry Clerk - One charge number, LOE
Program Management Office

Project Management

Project Support Office

Project Management



“Common Approach”

Program Management Office

Project Management

Project Support Office


Admin Mgt

Conferences & Seminars



EVMS Improvements

Baseline Support

Technical Direction / Mgt


Monthly Processing

PMB Creation

Tool & Utility Development

Planning/ Statusing/ Analyzing/ Reporting

Company Mandated

Verification &Validation

PMB Modification

Research & Informal Train

CAM /User Support

Training Course Development

“New Approach”

pm basis of estimate boe
PM Basis of Estimate (BOE)
  • Administrative Management
    • Based on percentage times the number of FTEs (5-8%) or
  • Technical Direction / Management
    • Based on percentage of technical work (7-12%)
  • Planning, Statusing, Analyzing, Reporting
    • Based on Should Costs, Business Processes, # of CAPs, Risk, Scope Stability, EVM Maturity, etc
should costs by role per cap
Should Costs by Role per CAP
  • Status input preparation: 60 min
  • Performance metrics data entry: 10 min
  • Status Review: 30 min
  • Data entry adjustments: 5 min
  • Preliminary report generation: 10 min
  • VAR analysis investigation & doc: 30 min
  • VAR Analysis Review & Validation: 15 min
  • Report preparation & reconciliation: 10 min


Scheduling Subcommittee
  • Recognition that issues with the IMS are broad and numerous
  • Planning:
    • What are the essential building blocks needed and how are they acquired
    • How is an IMS built
  • Execution:
      • How is a schedule updated and status presented