Presented to: NDIA PMSC By: Keith A. Kratzert Date: August 17, 2005 Federal Aviation Administration EVM at the FAA

2 Federal Aviation Administration EVM at the FAA August 17, FAA Acquisition Management System (AMS)

3 Federal Aviation Administration EVM at the FAA August 17, Recent activity December 2004 – included ANSI/EIA-748 compliance and IBR in FAA AMS policy January 2005 – created EVM Focal Point February 2005 – initiated EVM assessment of all OMB Exhibit 300 programs March 2005 – developed EVM training August 2005 – incorporated additional AMS policy and developed detailed guidance

4 Federal Aviation Administration EVM at the FAA August 17, AMS Policy revisions Provides for program and contract level EVM Assigns responsibilities for EVM, including the FAA EVM Focal Point Outlines certification requirements for program and contract level Outlines surveillance requirements for program and contract level

5 Federal Aviation Administration EVM at the FAA August 17, EVM assessments Programs fall into one of 5 EVM improvement categories –Planning –Programs with >2 years remaining in development/ implementation/ deployment –Programs with <2 years remaining in development/ implementation/ deployment –Programs with performing Implementations only –Full O&M/Steady State or dropped off the list Effective sustained EVM requires a complete program management system architecture (estimating through scheduling & EVM analysis up to portfolio management) Most program level EVM remedies lie in the project management and integrated project management domains – tie together related and supporting PM disciplines through the formation and work of a Cross- functional EVM Working Group

6 Federal Aviation Administration EVM at the FAA August 17, Assessment Themes - Issues PM Commitment Cross Cutting Themes –Multiple Baselines –Government FTE’s & Effort –Program Support LOE –Choosing the Correct Contract Type –Including Sufficient EVM Language in Contracts –Comprehensive Program-Level WBS FAA Best Practices –Performance-based Payments –Mature Estimating Techniques –Alignment of Program WBS with Contract CLINS and OMB 300 Useful Segments –GCAMS & CCAMS –Program Level EVM Tools Application –Risk Adjusted Schedule & Cost Applications

7 Federal Aviation Administration EVM at the FAA August 17, EVM assessment results Average Rating of all FAA Exhibit 300 programs is “Yellow” using ANSI/EIA-748 as benchmark –RED – 8 Programs –YELLOW– 4 Program –GREEN – 7 Programs –Planning and Steady state programs were assessed but received no R/Y/G rating

8 Federal Aviation Administration EVM at the FAA August 17, Recommendations Form Working Group including at least: –Systems Engineering –Cost Estimating –Procurement –Risk Management –Program Management Empower members to represent disciplines and to elevate to executive level any needed decisions Invite OMB to attend a meeting as appropriate Identify program office people to present “lessons learned” to group

9 Federal Aviation Administration EVM at the FAA August 17, Assistance Needed Most of our contracts are with the same companies that DoD deals with Some of the non-DoD divisions do not appear to have the EVM expertise that the DoD divisions have We need your help to ensure a standard EVM capability and expertise within your companies, both DoD and non-DoD applications