1. 1 NASA Earned Value Management Update August 2006

2. 2 Overview Policy and Requirements Solicitations and Contract Clauses In-House Activities

3. 3 Earned Value Management Policy and Requirements Office of the Chief Engineer is rescinding: – NASA Policy Directive (NPD) 9501.3A, Earned Value Management –NASA Procedures and Requirements (NPR) 9501.3, Earned Value Management Implementation on NASA Contracts. Note: Applicable for existing contracts unless modified by contract change

4. 4 Earned Value Management NASA Policy Requirement (NPR) 7120.5 D (Draft) NPR 7120.5D (Draft) NASA Program and Project Management Contains Revised EVM Policy and Requirements. In final review process prior to approval cycle. Approval is planned for November 2006. Revision D Incorporates the new Agency governance model Restructures the “C” version-contains less detail and is more policy oriented. Plans are to issue Applicable Handbooks – EVM and Schedule that contain detail guidance and procedures.

5. 5 Earned Value Management NASA Policy Requirement (NPR) 7120.5D (Draft) For projects requiring an Earned Value Management System (EVMS) the following requirements shall apply: EVM principles as defined by ANSI/EIA-748 shall be applied to all cost reimbursable or incentive contracts exceeding $20M in real year (i.e. budget) dollars. A fully validated EVMS is required for contracts exceeding $50M in real year dollars. (EVM is not required on grants, or contracts less than 12 months duration, firm- fixed price, time and materials, level of effort engineering support services. For cost reimbursable or incentive contracts requiring EVM, the Project Manager shall require IBRs and shall be scheduled no later than 180 days after contract award.

6. 6 NASA FAR Supplement (NFS) Solicitations and Contract Clauses Procurement Notification (PN) A PN is to be published as an interim rule in the Federal Register (70 FR XXXXX) on August XX, 2006. Existing NASA FAR Supplement PARTS AFFECTED: Part 1834, 1842, and 1852. CANCELLATION: PIC 06-06, Interim Instructions for Implementing Earned Value Management on NASA Contracts, is cancelled.

7. 7 NASA FAR Supplement (NFS) Solicitations and Contract Clauses Procurement Notification (PN) The PN will delete the previous NASA EVM coverage at NFS 1842.74, along with the associated provisions and clauses. Provides NASA’s implementation of the new FAR coverage, including NASA’s versions of the FAR EVM solicitation provisions and contract clauses. The FAR now requires EVM on all major acquisition contracts and subcontracts for development, irrespective of contract type. The PN provides instructions on which NASA contracts are subject to this EVM requirement.

8. 8 NASA FAR Supplement (NFS) Solicitations and Contract Clauses ACQUISITIONS AFFECTED BY NFS CHANGES: All applicable contracts with values greater than $20 million. NASA CONTRACTS: Will use the NFS EVM provision and clause instead of those prescribed for use in FAR 34.203. PROVISION AND CLAUSE CHANGES: 1. Additions: The PN adds the following: 1852.234-1, title, and its Alternate I; 1852.234-2, title, and its Alternate I. 2. Deletions: The PN deletes the following: 1852.242-74, Notice of Earned Value Management System; 1852.242-75, Earned Value Management System; 1852.242-76, Modified Cost Performance Report; and 1852.242-77, Modified Cost Performance Report Plans.

9. 9 Earned Value Management In-House Activities NASA In-house EVMS Implementation –Approach for the development of NASA/Center EVMS –Review available options and applicable systems –Establish reporting capabilities – Formats (CPR) System Validation –NASA’s Jet Propulsion Laboratory (JPL) EVMS currently being validated.