1. Presented to: NDIA By: Keith Kratzert Date: February 1, 2006 Federal Aviation Administration Improving Program Performance at FAA

2. 2 Federal Aviation Administration Improving Program Performance at FAA February 6, 2006 2 EVM at FAA Background –FAA has used DoD approach (EVM for contractors only) on some programs and decided it’s not sufficient –Will manage entire program using EVMS in accordance with ANSI/EIA 748 Manage/measure all resources Requires changes in behavior by all parties

3. 3 Federal Aviation Administration Improving Program Performance at FAA February 6, 2006 3 EVM Transformation at FAA Holistic Approach Goals –Adopting FAA and industry Program Management "Best Practices" –Strengthening and integrating technical, schedule, and cost performance management of programs by implementing earned value management techniques –Positioning programs to be better able to anticipate, forecast, and communicate future performance based on objective performance metrics and risk assessments as well as proven engineering judgments

4. 4 Federal Aviation Administration Improving Program Performance at FAA February 6, 2006 4 EVM at FAA FAA EVM implementation avoids legacy practices structured for large contracts Large Contract EVM PracticesFAA Strategy Customer/supplier relationshipInternal program focus Contractual/compliance controlsSignificantly fewer constraints - delegate EVM to contractors when it makes sense Regulation–like EVM cultureEmphasis on “useful data to program management” Cost type contracts - limited use on Firm Fixed Price contracts EVM used on all contract types Contractor accounting systems well established FAA resource costs are estimated

5. 5 Federal Aviation Administration Improving Program Performance at FAA February 6, 2006 5 EVM at FAA FAA EVM implementation avoids legacy practices structured for large contracts Large Contract EVM Practices FAA Strategy Many legacy systems use residual C/SCSC practices Starting with a clean(er) slate – some non-traditional approaches Existing Industry EVM maturity is expected to be similar to SEI Level 3 or higher EVM implementation may be less than SEI Level 3 - iCMM focus Existing EVM applications (tools) designed for large scale complex contracts Until EVM vendors catch up, program implementations will be modified approaches

6. 6 Federal Aviation Administration Improving Program Performance at FAA February 6, 2006 6 FAST Home Page: http://fast.faa.gov

7. 7 Federal Aviation Administration Improving Program Performance at FAA February 6, 2006 7 FAA Contractor Meeting Feb 6, 2006 Participants –Lockheed Martin –Raytheon –Harris –Parsons Infrastructure and Technology Group –Northrop Grumman –Mitre –Computer Sciences Corporation –Advanced Management Technology Inc. –BAE Systems

8. 8 Federal Aviation Administration Improving Program Performance at FAA February 6, 2006 8 FAA Procurement Comments Top contractors – suppliers, support contractors, FFRDC –Purpose – cooperation with industry to achieve mutual success in performing FAA mission –FAA EVM differs from legacy approach Program level, not just contractors Will not change existing contracts

9. 9 Federal Aviation Administration Improving Program Performance at FAA February 6, 2006 9 Expectations from Contractors Manage using ANSI/EIA 748 –Existing contracts will not be modified to require EVM –For new contracts, contractors are responsible for Contract performance (scope, schedule, delivery) Excellent management –Contractors may leverage existing EVM acceptance from other agencies or work with FAA to develop new plan