1 Earned Value Management (EVM) Center ‘Moving Forward’ Presented by Mr. David Kester Director, Program Integration Division April 25, 2007

 DoD's contract manager, responsible for ensuring federal acquisition programs (systems, supplies, and services) are delivered on time, within projected cost or price, and meet performance requirements  DCMA uses performance-based management at all levels to understand and assist customers in achieving their outcomes  We listen to the voice of the customer and adjust our strategies accordingly  Individual Performance Plans then link each DCMA professional to customers/organizational goals allowing the Agency to evaluate, measure, and continuously improve its contributions to customers success (See Slide #8) Who We Are

 DCMA to reassert its authority and responsibilities as the Department’s Executive Agent for EVMS to ensure that suppliers’ EVM Systems are compliant with DoD EVMS criteria –Greater responsibility placed w/ the EVM Center to effectively initiate and coordinate EVMS policy, implementation, and oversight –Effective EVMS surveillance and oversight to become a top priority –Clearly and continuously articulate to the Services and industry the need for continuous process improvement  OSD, DCMA, the Services, and industry must recognize EVM is a shared responsibility and be committed to using it to effectively manage programs –Open and timely communication with industry and across the DoD enterprise is essential 3 Roles & Responsibilities

 December 1995: OUSD(AT&L) Paul G. Kaminski policy memorandum designates the DCMC (DCMA) as the Department of Defense Executive Agent for Earned Value Management System (EVMS)  October 1996: OUSD(AT&L) Paul G. Kaminski policy memorandum gives DCMA responsibility for EVMS compliance reviews Initial compliance evaluations Post acceptance reviews Reviews required due to identified deficiencies  48 CFR Part Designates DCMA as the DoD Executive Agency for EVMS compliance reviews  DFAR Subpart (41) Assigns the Contract Administration Office (CAO) function for EVMS to the DCMA, including the responsibility for reviewing EVMS plans and verifying initial and continuing compliance with DoD EVMS criteria 4

Enterprise Level Customer  Recognize the importance of DCMA as DoD Executive Agent for EVMS and USD(AT&L) as our Enterprise-level customer who has entrusted the Agency with overseeing its effective implementation  EVM Center will establish Enterprise-level customer outcomes that will be tied into the overall DCMA operating plan  Working with the EVM Center each CMO will be expected to implement, achieve, and sustain Enterprise-level outcomes to ensure that supplier EVMS are reliable  While it is important that we maintain a working relationship with our program-level customers the importance of maintaining a sense of independence in the execution of our EVMS role and responsibilities is essential  As a very important first step DCMA is working closely with USD(AT&L) to develop primary and secondary “Tripwires” and a set of performance metrics and thresholds that provide unbiased insights into program status utilizing supplier EVMS 5

Centralized Approach to EVMS  Centralization removes many of the challenges incurred from duplicate and excessive layers of oversight –Process, progress and reporting functions are streamlined and less prone to erroneous information  In a decentralized framework, lack of visibility and inter-agency implementation conflicts are often the biggest issues faced by management  Adapting to the changes required by a centralized approach also poses challenges –Implement changes using a phased approach essential to obtaining acceptance and buy-in  Prioritizing each enhancement into 'quick hits', designed to be implemented in a short timeframe and yield high business benefits, 'near term enhancements', designed to significantly improve existing practices over a relatively short time period, and 'long term enhancements', which provide benefits however require a longer implementation timeframe 6

 Fill additional EVM Center positions  Standup EVM Center Patuxent River, MD facility –Mid-Late Summer 2007  Conduct supplier EVM System validation and post award reviews  Nunn McCurdy  Develop and implement standardized surveillance and reporting processes  Division/CMO site visits  Document and implement OSD(ATL) Program Tripwires Process –Develop indicators that are most relevant to the issues being faced and the concerns of key stakeholders –Adopting more transparent and accountable practices EVM Center Initiatives 7

 Initiate/close-out Supplier EVM Systems Reviews Initiate PAV/VR within 90 c/days of contract award Initiate/Close-out post-award systems reviews/RFC within 180 c/days of notification Document findings, conclusions, and recommendations within 30 c/days of systems review completion Communicate results to stakeholders within 45 c/days of systems review completion  Develop/Implement Standard Operating Instructions Develop EVMS Review Operating Manual 2Q/3Q in 2007 Develop EVMS Surveillance Operating Manual in 2Q/3Q 2007 Develop EVMS Analysis Operating Manual in 3Q/4Q 2007  Develop/Implement Standard System Surveillance Plan Develop and initiate implementation of standard EVMS surveillance plans for active ACAT I programs in 2Q/3Q 2007  Develop/Implement Enterprise-wide training Develop Level-1 training materials in 2Q/3Q 2007 Develop Level-2 training materials in 2Q/3Q 2007 Initiate Level-1 training to ACAT I DCMA EVMS personnel in 3Q 2007 EVM Center Outcomes 8

Successful Program Management  Requires well qualified and highly skilled program managers and integrated product teams backed by management systems that provide immediate access to reliable and accurate data and information on program costs, schedule, and technical performance 9 “Management is a practice like medicine, results are not in theory but in what happens.” Peter F. Drucker