1 NDIA Earned Value Management Application Guide Status Report May 3, 2005

2 Objectives Prepare a Guide for Federal Agencies and Industry on the application of EVMS. A standard set of guidelines for ANSI compliance, surveillance reviews, and IBRs. Address “how used” for the NDIA PMS Committee documents (e.g. ANSI/EIA 748, Intent Guide and Surveillance Guide). Provide a process for both government and industry so a review documenting ANSI Guideline compliance could be accepted without another review. Limit the page count to a range of 15 to 20 pages excluding appendices Appendices provide an executive summary of existing and relevant NDIA EVM documents; not a reprint

3 Outline Introduction – Dave Muzio (1 page) Written to inform Federal Agencies Acquisition Life Cycle and Earned Value Management (3) Acquisition Life Cycle (picture) EVM Application (picture) Contracting (6) Contract Administration (5) Appendices - Executive Summaries (3) Program Managers Guide to IBR Process ANSI/EIA 748 and Intent Guide Surveillance Guide

4 Operation and Sustainment Systems Acquisition Pre-Systems Acquisition Demonstration OPERATING AND SUPPORT COST PRODUCTION COST DEVELOPMENT COST EVM Application Guide Typical Acquisition Life Cycle Concept Refinement/ Technology Identification

5 EVM Application – Principles* Integrate work scope, schedule, and cost objectives Actual Costs incurred in work performed Objectively assess work performed Plan all work scope and assign responsibility Analyze significant variances & Estimates at Completion *ANSI/EIA 748 Authorization to Proceed (ATP) Use EVMS information in the Management Processes

6 Acquisition Life Cycle and Earned Value Management (3 pages) OMB Business Case EVM objectives When should EVM be applied in the Acquisition Life Cycle? What is Earned Value Management? Does Earned Value Management apply to Government in house activity?

7 Contracting (6 pages) Project Management Requirements Contract Types, Subcontracts and Small contracts Earned Value Management integration into Project Management Performance Measurement Baseline (PMB) Integrated Baseline Reviews (IBRs) Measuring Project accomplishments and performance Risk Management Planning Use of incentives and payments Reporting project status Determining EVM conformance with ANSI/EIA 748

8 Contract Administration (5 pages) Performance Measurement Baseline Assessment Management Analysis Risk Mitigation Change Management Surveillance

9 Drafting inputs Introduction (1) – Dave Muzio and Dave Treacy Acquisition Life Cycle and Earned Value Management (3) Contributors ? Contracting (6) Contributors ? Contract Administration (5) Contributors ? Appendices - Executive Summaries (3) – Wayne Abba and Walt Berkey

10 Path Forward Objectives and scope – complete Inputs drafted by contributors – June 15 drafts to Wayne Abba & Walt Berkey Compile inputs into draft – July 30 NDIA PM Systems Committee comments – August Mtg. Integrate NDIA comments – September 30 Submit to NDIA PMSC Chair – October 15 Editor review and preparation for Publication Publication – December 1