September 2016 EVM 202—Lesson 4 Integrated Baseline Review Process (Part 3: IBR Process)

The Program Managers’ (PMs’) Guide to the Integrated Baseline Review (IBR) Process While most IBRs generally conform to DoD policy, inconsistent policy interpretations resulted in the development of individual Service/Agency IBR guidebooks, differing perceptions of purpose and value, and inconsistent IBR execution. To improve the consistency of the overall IBR Process, The Program Managers’ Guide to the Integrated Baseline Review Process was developed (TAB A). This Guide clearly defines the purpose, goals, and objectives of an IBR. It also describes attributes of an effective IBR and discusses a baseline review process that will lead to a better understanding of program risks. This Guide is the principal IBR reference and should be used to implement an integrated baseline discipline on an acquisition program. PMs are strongly encouraged to use this Guide during IBR training, when preparing for an IBR, and then again during the actual execution and conduct of the IBR.

Program Managers’ Mutual Understanding IBR Process PMB Assessment IBR Preparation Identify expectations/ assumptions Identify team composition Determine responsibilities Conduct training Establish PMB Management Processes Baseline maintenance Risk management Business processes Program Managers’ Mutual Understanding IBR Execution Evaluate PMB Identify risks and update Risk Management Plan Assign responsibility for risk mitigation

Performance Measurement Baseline (PMB) Assessment Examines Government and contractor PMs’ mutual understanding of the PMB and risks Results in IBR execution or PMs’ continued utilization of their management processes May be required by policy or contract DoDI 5000.02—Operation of the Defense Acquisition System IBRs are required whenever EVM is required (compliance with EIA-748) DFARS Clause 252.234-7002 The Government will schedule IBRs as early as practicable, and the review process will be conducted not later than 180 calendar days after contract award, the exercise of significant contract options, and the incorporation of major modifications.

Preparation for the IBR should begin as soon as practical. IBR Preparation IBR Plan Risk areas Technical risk Schedule risk Cost risk Resource risk Management process risk Team composition Responsibilities Training Preparation for the IBR should begin as soon as practical.

IBR Preparation—Expectations Integrated Product Team (IPT) members should develop a plan for conducting the review: Define the objectives for the IBR Plan and conduct IBR training Plan and schedule review dates Identify procedures for risk identification, documentation, and incorporation into project risk management planning Identify required technical expertise Identify key responsibilities Establish risk evaluation criteria Identify documentation needs Establish how IBR findings will be documented and resolved Review IBR documents

Notional IBR Planning Schedule

IBR Preparation—Risk Areas Technical risk—Ability of project’s technical plan to achieve the scope of work objectives Schedule risk—Adequacy of time allocated for performing the defined tasks to achieve project schedule objectives successfully Cost risk—Ability of the PMB to execute the project and attain cost objectives successfully, recognizing the relationship between budget, resources, funding, schedule, and scope of work Resource risk—Availability of personnel, facilities (manufacturing/test), and equipment, when required, to perform the defined tasks needed to execute program successfully Management processes risk—Degree to which management processes provide effective and integrated technical, schedule, and cost planning and baseline change control

IBR Preparation—Expectations (Cont.) Identify documentation needs Contract Work Breakdown Structure (CWBS) CWBS Dictionary Contractor’s Organizational Breakdown Structure (OBS) Responsibility assignment matrix (RAM) Work Authorization Documents (WADs) Integrated Master Schedule (IMS) Risk Management Plan and risk register Control Account Plans (CAPs) Current Integrated Performance Management Report (IPMR)/ Contract Performance Report (CPR) Contract Funds Status Report (CFSR) Detailed control account (CA) schedules Earned Value Management System (EVMS) Description Subcontractor data Basic contract P000 modifications EVMS Surveillance Reports DCMA/DCAA findings (Corrective Action Request (CAR)) Schedule Risk Assessment (SRA)

IBR Preparation—Team Composition Participants should be identified based on their programmatic or technical expertise, as required for the review The size and composition of the team should reflect the PMs’ objectives, expectations, and risk assumptions Disciplines include: Program management Business management Subcontract management Subcontractor personnel (when appropriate) Technical management System engineering Software engineering Manufacturing Integration and test engineering Integrated logistics support Training

IBR Preparation—Responsibilities PMs are jointly responsible for the IBR Process and for completing the following tasks: Plan and perform the IBR Provide an adequate number of qualified personnel to serve as IBR team members Specify evaluation criteria for risk areas Document risk issues identified during an IBR Manage progress on required actions until issues are resolved

IBR Preparation—Training PMs’ expectations IBR objectives IBR approach and expectations Risk identification and documentation Management processes* Baseline maintenance* Risk management* Business processes (including EVM)* Project management aspects Statement of Work (SOW)/Statement of Objectives (SOO) Work Breakdown Structure (WBS) Dictionary/Matrix Funding Work Authorization Documents (WADs)* Control Account Plans (CAPs)* Terms and acronyms* Budget and schedule baselines* Subcontractor management* Management reserve (MR)* *Note: The contractor should brief this content during the training.

Responsibility Assignment Matrix (RAM) Exercise Review the RAM to identify three control account managers (CAMs) to interview Items to consider Risks Dollar value Differences from Government estimates

LAR Vehicle RAM

IBR Preparation Summary IBR Preparation identifies: Key responsibilities Required technical expertise Training Review dates Review scope Risk evaluation criteria Documentation needs Disposition of findings Procedures for risk identification, documentation, and incorporation into project risk management planning Before executing the IBR, ensure the PMB reflects the entire scope of work, documented at the appropriate level of detail

IBR Execution Requirements The IBR is intended to provide the PMs with a mutual understanding of the project PMB and mitigate program risks. Technical scope of work is fully included and consistent with authorizing documents Key schedule milestones are identified Supporting schedules reflect a logical flow to accomplish the technical work scope Resources (budgets, facilities, personnel, skills, etc.) are adequate and available for the assigned tasks Tasks are planned and can be measured objectively Underlying PMB rationales are reasonable Managers have implemented required management processes MR is sufficient with respect to project risk

IBR Execution—Document Review Trace Statement of Work (SOW) to Work Authorization Documents (WADs) WADs to control accounts Control accounts to work packages/planning packages Work packages/planning packages to schedule Schedule dates to contract dates Document Assess MR with respect to project risk not in the PMB Issues Risks Inconsistencies

IBR Execution—Typical IBR Agenda Kick-off meeting Review IBR objectives Supplemental document review CAM discussions Daily out-brief Document results Follow up as necessary

IBR Execution—CAM Discussion Be thoroughly prepared for the discussion; think through your “strategy” Review questions and know what answer you should receive Approach: Conduct discussions in the CAM’s workplace Have one person ask questions and one person take notes Explain basic objectives and purpose Open with simple questions on CAM’s area of responsibility; then proceed to more complex matters Ask open-ended questions to determine familiarity with the budget and schedule aspects of the control account (CA); employ the “Show Me” technique

IBR Execution—CAM Discussion (Cont.) Technical assessment What are the high risk areas? What are the conditions of measurement? What are the technical requirements? Work authorization PMB changes Schedules Budget authorization CAPs Schedule assessment Underdeveloped logic Illogical/forced sequencing Lack of experience Consideration of technical risks Budget assessment Budget validity/risk Distribution logic Resources available Work assessment Which tasks may be overstated? Which tasks may be understated? What has been left out?

IBR Execution—After the CAM Discussion Take time to reflect and compile your observations immediately after the discussion Maintain your own file—keep notes for subsequent write-ups and reference If problems are found during discussion: Note discrepancies Communicate to the team leader—clear and concise with supporting documentation If EVMS issues are identified, provide to DCMA to work separately, not as part of the IBR Let the team leader handle problems with the supplier Consider contractor information as proprietary

IBR Execution—Daily Out-Briefs Technical—Review Integrated Master Plan (IMP) significant accomplishments and document technical risks Schedule—Review the critical path and float and document schedule risks Cost—Review the realism of cost estimates and document cost risks Resource—Review the sufficiency of personnel, facilities, and equipment and document resource risks Management Processes—Review the management processes and document management risks

IBR Execution—Closeout IBR team responsibilities—To document identified risk areas and provide the PMs with an overall project risk summary after completing the IBR PMs’ responsibilities—To assess whether the IBR has achieved its purpose Is there a mutual understanding of the project PMB? Do you understand the contractor’s plan of action to handle the identified risks? Is there agreement on a closure plan of action? Have action officers been assigned for all identified risks? Have risks been incorporated into the Risk Management Plan?

LAR Vehicle IBR Documentation Review Exercise

LAR Vehicle IBR Documentation Review Package Transmittal Letter LAR Vehicle Statement of Work (SOW) LAR Vehicle Technical Performance Metrics (TPMs) LAR Vehicle Responsibility Assignment Matrix (RAM) LAR Vehicle Integrated Master Schedule (IMS) Work Authorization Documents for WBS 1.1.1 (Integration, Assembly, Test, & Checkout) Work Authorization Documents for WBS 1.1.7.1 (Engine) Work Authorization Documents for WBS 1.1.7.2 (Cooling) Work Authorization Documents for WBS 1.1.7.3 (Exhaust) CAM Documents for WBS 1.1.1 (Integration, Assembly, Test, & Checkout) CAM Documents for WBS 1.1.7.1 (Engine) CAM Documents for WBS 1.1.7.2 (Cooling) CAM Documents for WBS 1.1.7.3 (Exhaust)

LAR Vehicle IBR Group Exercise Prepare a brief to the Government PM on your assigned WBS element taking the following into consideration: Technical Scope (Statement of Work) Risks Is there adequate identification, definition, and flow down? Is scope consistent with contract requirements? Is there adequate assignment of responsibility, authority, and accountability? Schedules Risks What is the period of performance? Are planned durations realistic? Are detailed (lower level) schedules consistent with the master schedule? Are interdependencies defined and constraints appropriate? Are there any tasks on the IMS critical path? Do schedules support contract milestones? What is the schedule “health” based on DCMA metrics?

LAR Vehicle IBR Group Exercise (Cont.) Prepare a brief to the Government PM on your assigned control account (CA) taking the following into consideration: Cost and Resource Risks Is there a sound basis for estimate? Is budget adequate and does it have correct time phasing? Are there any issues with resource availability? Are there provisions for scrap, rework, retest, or repair? Management Process Risk Is cost, schedule, and technical planning integrated? Do they have baseline change control? Is accurate and timely management and performance data available? Is there adequate subcontract management? Do they use appropriate EVM methods? Do the methods correlate with technical achievement?