Missile Defense Agency EVM Update Presented to NDIA/PMSC January 29, 2009 Dave Melton

CONTRACT PERFORMANCE SUMMARY REPORT JAN 09 Program 2 Program 3 Program 4 Program 5 Program 6 Program 7 Program 8 Program 9 Program 10 Program 11 Program 12 Program 13 Program 14 Dollars in millions except where noted Data as of month-end Nov-2008 Program / Contract Budget Base (CBB) % Complete 6 mo CPI Trend SPI LOE % (of Work Remaining and Planned) Budget Impact Schedule Risk Program 1 Dec-08 / TBD $4.0B $3.6B 92% 1.04 ? 1.03 ($84) -2% 43% Minimal Yes Dec-07 Mar-09 $1.6B $1.4B 78% 0.92 1.01 $0 0% 24% No Aug-08 $656 $571 26% N/A ($12) 18% Oct-08 $248 $234 62% 1.09 0.96 ($4) 16% Apr-08 $1.3B $1.1B 82% 25% Nov-09 $1.0B 74% 0.94 ($1) 69% Dec-06 May-09 $16.1B $14.6B 87% 1.00 0.97 ($1.2B) -8% 31% Feb-08 $6.3B $5.8B 15% ($11) Sep-08 Apr-09 $730 $664 85% 54% Jul-08 $378 $316 67% 0.93 ($8) -3% 40% Oct-06 $1.9B 75% 0.39 1.05 ($373) -36% Significant $1.2B 86% 1.19 ($64) -6% 21% Moderate Nov-07 $4.9B $4.7B 91% 0.87 ($298) 23% Aug-07 $117 $101 71% 1.23 0.98 42% TOTAL MDA Programs $40.7B $36.2B ($2.1B) EVM Integration FY 09 / 10 DOB Projected Overrun Contract & Baseline Maintenance VAC: DO's (Overrun) Underrun ($ / %) Target Price IBR: Most Recent and Projected Earned Value Management (EVM) Data 4/8/2019 Document primarily reflects prime contractor EVM data and narrative information through month-end Nov 08. Where appropriate, DOBS has provided updated information through 5 Jan 09. * Oct 08 data is reported. Nov data is delayed due to CY08 close out activities 2

Cost and Schedule Variance Chart Program 10 Details Cost and Schedule Variance Chart Key Cost/Schedule Variance Drivers Cost: cum CV is -$7.1M. Driven by Hover Test Bed efforts, due to increased procurement costs, costs associated with late drawing release, inadequate subcontractor task planning, and increased program management oversight Schedule: SV of -$1M is minimal and is due primarily to late delivery of Government Furnished Equipment (GFE) Projected Variance at Completion (VAC) DOB VAC is -$8.3M. Calculation reflects increased efforts required to meet Hover Test Bed schedule -$50M -$40M -$30M -$20M -$10M $0M $10M $20M $30M $40M $50M Nov-05 Jan-06 Mar-06 May-06 Jul-06 Sep-06 Nov-06 Jan-07 Mar-07 May-07 Jul-07 Sep-07 Nov-07 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Cum CV Cum SV 10% Threshold MDA DOB VAC Impacts Hover Test schedule slipped due to Hover Test Vehicle power conditioning unit, Flight Software anomaly, IMU software review and most recent unfavorable weather testing conditions Potential cost overrun of roughly $11.5M due to increased efforts to meet Hover Test Bed schedule. Path Forward Hover Test completed XXX 2008 at the National Hover Test Facility Re-planning program efforts 4/8/2019 3

Program 10 EV Budget Integration Chart 4/8/2019 4

Current Noteworthy MDA EVM Initiatives DCMA Support Overarching Memorandum of Agreement with DCMA MDA Review of DCMA Report Quality EVM Health CPR/CFSR Quality Review Other Quality Reviews (IMS, Award Fee, Contract Requirements) IBR Process I have broken my briefing into 3 major areas, (read slide). The first area - what am I talking about, what do I mean, when I say CFO Compliance, and why should people (other than those who work for me) care about CFO Compliance? How does it affect me? 4/8/2019

Current Noteworthy MDA EVM Initiatives Overarching Memorandum of Agreement with DCMA DCMA SSOM LOE Versus Discrete Metrics CPR/CFSR Reconciliation IEAC (not metric driven) IBR Support (Planning, Execution, and Follow-up) I have broken my briefing into 3 major areas, (read slide). The first area - what am I talking about, what do I mean, when I say CFO Compliance, and why should people (other than those who work for me) care about CFO Compliance? How does it affect me? 4/8/2019

Current Noteworthy MDA EVM Initiatives MDA Quality Review of DCMA Reports

MDA EVM Process – EVM Health MDA EVM Health Factors help identify areas for management attention I have broken my briefing into 3 major areas, (read slide). The first area - what am I talking about, what do I mean, when I say CFO Compliance, and why should people (other than those who work for me) care about CFO Compliance? How does it affect me? 4/8/2019

MDA EVM Process – EVM Health

MDA EVM Process – EVM Health

MDA EVM Process – EVM Health Program 5 Y EVM Contract Requirements: GREEN is downgraded to YELLOW. Contractor's CPR and CFSR are not compliance with DIDs. There is no CPR/CFSR reconciliation. Contractor has inadequate understanding of EVM contract requirements. Analysis/ Integration: GREEN is downgraded to YELLOW. Insufficient cost/schedule integration. Contractor cannot produce/identify a critical path. Contractor cannot articulate estimates to complete, thus EACs are questionable. Baseline Development / IBR / Baseline Maintenance: An IBR was conducted in Apr 08. Although contractor previously committed to a 6-month rolling wave IBR, the most recent IBR focused only on a small piece of the program. EV Management Systems: YELLOW is downgraded to RED. DCMA continues to produce additional CARs each month against contractor EVMS process. Training: Training is needed on the following: EVM contract requirements checklist, EVM analysis process particularly aspects of Format 5 Variance Analysis requirements, and the planning and scheduling process.

Current Noteworthy MDA EVM Initiatives MDA Review of CPR/CFSR Quality CPR/CFSR thoroughness per DID Comparison of CPR/CFSR to CDRL Requirements Management Information Quality CPR Format 5 Quality Examples: forward looking analysis, EAC Range (Best, Worst, Most Likely) CPR Format 4 Accuracy I have broken my briefing into 3 major areas, (read slide). The first area - what am I talking about, what do I mean, when I say CFO Compliance, and why should people (other than those who work for me) care about CFO Compliance? How does it affect me? 4/8/2019

Current Noteworthy MDA EVM Initiatives MDA Review of CPR/CFSR Quality PROGRAMS Overall Assessment CDRL Compliance DID Management Information Quality Program 1 Program 2 Program 3 Program 4 Program 5 Program 6 Program 7 Program 8 Program 9 Program 10 Program 11 Program 12 CPR CFSR SUMMARY OF CPR/CFSR REPORT QUALITY REVIEWS