1. Presented to: NDIA PMSC By: Keith Kratzert Date: August 7, 2007 Federal Aviation Administration Improving Program Performance at FAA

2. 2 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 2 EVM at FAA FAA goal is to manage entire program using EVMS in accordance with ANSI/EIA 748 –Manage/measure all resources –Requires changes in behavior by all parties FAA EVM differs from legacy approach –Program level, not just contractors –All contractual effort measured, including FFP –Will not change existing contracts

3. 3 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 3 EVM Objectives I II III IV V VI

4. 4 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 4 EVM Transformation – Goals for 2007 Full EVM implementation by end of FY 07. EVM part of Program Managers toolkit. Full EVM reporting for all major investments. Use of EVM makes a major difference in ability of FAA programs to stay on track and within budget. Use of EVM contributes to FAA “NAS Modernization Program” being removed from the GAO High Risk List.

5. 5 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 5 EVM Transformation – Goals for 2008 Under Construction

6. 6 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 6 Recent Accomplishments Expanded AMS standard program milestones –Mapped milestones to FAA standard WBS –Identified milestone decision authority –Recommended AMS changes to implement Developed a program level IBR guide –Recommended AMS changes to implement Established Portfolio/Program Performance Metrics (PPPM) –Piloting in one Service Unit now

7. 7 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 7 Current Activities Proposed EVM surveillance, certification, and executive program performance reporting processes will be developed and implemented –FAA Flight Plan Goal for this year Certification surveillance –Based on NDIA guidelines –major contractor “Best Practices”

8. 8 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 8 Pilot Program Reports FinancialScheduleTechnicalResourcesExternal Program Manager Program A Program B Program C Program D

9. 9 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 9 Summary and Supporting Metrics FinancialScheduleTechnicalResourcesExternal Interest Program Manager GGY YYG

10. 10 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 10 Civilian Agency/Industry Working Group Three meetings held to date –May 14, July 18, and August 6 Charter developed and approved Government and Industry co-chairs –Government – Selected at the 8/6/07 meeting –Industry - PMSC Chair

11. 11 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 11 FAA Contractor Meeting Sep 25, 2007 Tentative Agenda –Transformation Progress Report –Portfolio/Program Performance Metrics –Program IBRs –EVM Certification –EVM Surveillance –GAO High Risk List

12. 12 Federal Aviation Administration Improving Program Performance at FAA August 7, 2007 12 Summary Activities Expanding FAA EVM Council role to lead EVM Surveillance, program level IBR Collaborating with FAA CFO and ATO Finance to integrate EVM and financial management Assisting DOT EVM Policy and guidance formulation