EVM at Missile Defense Agency Dave Melton Presented to NDIA PMSC 26 April 07

EVM Activities / Challenges Communicating EVM to MDA Senior Mgmt. Quarterly Execution Review – MDA to Mr. Krieg and Board MDA Program Change Board (PCB) Program Management Directive Execution Review (PER) EVM Integration Budget - FY Funding compared to Time-phased ETC Schedule – Schedule slip estimated based on Large ETCs and FY Funding Limitations Communicating BMDS and EVM Status to GAO and Congress IBR Support and Process Improvement (12 between Feb – July) Challenges MOA Development/Improvement Joint Surveillance Reviews – Participation and Follow-up EVM Contractual Requirements – Consistency Accurate CPR EAC Range and Staffing Data

MDA EVM HEALTH FACTORS Focus Areas

MDA EVM HEALTH FACTORS

IBR and BMR Schedule

Data reflects contractor-provided month-end Feb 07 EVM reports Submission Date: 18 Apr 07

GMD Synopsis: JPO is developing an acquisition strategy for GMD work after the current prime contract with Boeing ends in Dec 08. JPO and Boeing are partnering on an Alpha Process for GMD Program Adjustment to adjust prime contract scope to available funding: FY07: ~$2.2B, FY08: ~$1.8B. JPO and Boeing expect to perform an IBR starting in Oct 07. DCMA cited Company X (Missile subcontractor) for plant-wide noncompliance with multiple EVMS guidelines. Findings include: failure to maintain an integrated network schedule and inability to produce a program critical path, misuse of Management Reserve and Undistributed Budget, multiple CWBSs, and management failure to use the EVMS for decision-making. EKV-specific findings included misuse of Undistributed Budget and Improper Baseline Change Control. A Compliance Review is planned for Mar 08. Several of the discrepancies, if not quickly corrected, would likely have a negative impact on the accuracy of the EKV Performance Measurement Baseline (PMB). DOB has contacted DCMA at Company X and will closely monitor progress of Company X’s corrective actions. The unfavorable CV for Feb 07 was -$18M, mainly due to EKV (-$13M) rework and troubleshooting, and UEWR (-$4M) incentive fees paid in a different period than budgeted. Retroactive adjustments driven by the baseline change process continue to impact variances. Boeing is updating its grassroots EAC and expects to incorporate it into the Mar 07 CPR. Impact: The DOB EAC that forecasts a cost overrun of $1,417M above, includes an estimated future cost growth of $279M. The remainder, ~$1.1B, is based on unfavorable cost variances incurred primarily before the program replanning was completed in Dec 06.

GMD EV Budget Integration Chart Source: PRIDE CPS FA07-13 Final, Dec 06 CFSR, Feb 07 CPR, JPO Program Adjustment ltr dated 21 Feb 07