Global Business Services—Public SectorEVMS Self-Evaluationand Certification        NASA Program Management Challenge 2012 ...
Global Business Services—Public SectorPresenters Randy Simpson, PMP    – IBM GBS Public Sector NASA Account Lead/EVMS SME...
Global Business Services—Public SectorObjectives To provide a perspective of the EVMS Certification  challenge To identi...
Global Business Services—Public SectorGovernment Accountability Initiatives Government Performance Results Act (GPRA-1993...
Global Business Services—Public SectorEarned Value Management (EVM) Overview Rigorous, distributed program management met...
Global Business Services—Public Sector          EVMS in a Nutshell…                                                       ...
Global Business Services—Public Sector                           FIVE BASIC PERFORMANCE DATA                              ...
Global Business Services—Public SectorPerspective of EVMS                                Certification is not focused; it ...
Global Business Services—Public SectorTenets of EVMS Certification Tenet 1                                            Sta...
Global Business Services—Public SectorEVMS Guidelines, Systems & Process Groups            EVMS Process                   ...
Global Business Services—Public SectorSo why “Certify?” EVMS certification candidate is mandated by the customer  pursuan...
Global Business Services—Public SectorMethodologies for Certification Government Agency Certification (~>95%)  – DoD (DCM...
Global Business Services—Public SectorWhat is involved in Self-Certification? EVM System: People, processes and tools mus...
Global Business Services—Public SectorSelection of Candidate Project      Has 748 requirement…      Has a supportive and...
Global Business Services—Public SectorNotional PMO Team Undergoing Certification                                          ...
Global Business Services—Public SectorLevel of Support PMO Varies as a function of     – Process, System and Personnel Ma...
Global Business Services—Public SectorSelection of the Self-Evaluation Team  First: Independence of the Certification Tea...
Global Business Services—Public SectorEVMS Certification Organizational Structure                                         ...
Global Business Services—Public SectorNotional Scheduling and Preparation  Certification Team  Implements & executes EVM...
Global Business Services—Public SectorProgress Assistance Visit (PAV) Agreement on the balance of the review schedule Th...
Global Business Services—Public SectorReview Plan      Contract Summary       – Contract Number, Name, Description, Value...
Global Business Services—Public SectorScope of Review Plan     Review Process Area       Required (Y or N)                ...
Global Business Services—Public SectorSystem Description System Description Document (SDD)     – Only process document “c...
Global Business Services—Public SectorSelf-Evaluation Review Plan Methodology  – Documentation reviews    • See appendix ...
Global Business Services—Public SectorReview Protocol, Planning and Conduct Primary Objective:     – Develop detailed bas...
Global Business Services—Public SectorDetailed Review Planning Review:  – Work Breakdown Structure (WBS)  – Organizationa...
Global Business Services—Public SectorInterviews Objective: is EVMS being used as described In the SDD?     – Self-Evalua...
Global Business Services—Public SectorEVMS Self-Evaluation Outcomes Based on information gathered and documented from:   ...
Global Business Services—Public SectorEvaluate Each of the 32 Guidelines Only prudent combination of evidence can be used...
Global Business Services—Public Sector Sub-Team Interview Integration                                    Organization     ...
Global Business Services—Public SectorDiscrepancies Non-compliance  – Major—wide system or process impact; material misst...
Global Business Services—Public SectorIn-Brief Preparation and Presentation Includes both teams     – Self-Evaluation Tea...
Global Business Services—Public SectorOut-Brief Preparation and Presentation Presented by the Self-Evaluation Team      •...
Global Business Services—Public SectorProcess to Certification                                                            ...
Global Business Services—Public SectorFinal Report                                                                        ...
Global Business Services—Public SectorCertification Conduct Review Identify/ correct discrepancies Prepare Final Report...
Global Business Services—Public SectorSummary EVMS Self-Evaluation is a valuable and viable method to achieve  certificat...
Global Business Services—Public SectorAppendix                                                    © 2012 IBM Corporation
Contract Price                              Earned Value Management                                            ‘ Gold Card...
Global Business Services—Public SectorTo perform quality project management & financial analyses... CAN NOT DO THIS (Integ...
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  • We have now answered the five basic performance measurement questions. How much work should be done? BCWS How much is done? BCWP How much did the work actually cost? ACWP What was the total job supposed to cost? BAC What do we now expect it to cost? EAC
  • Don’t bother spending all the money to put this in place if management doesn’t buy-in to use and support this
  • R simpson elee

    1. 1. Global Business Services—Public SectorEVMS Self-Evaluationand Certification NASA Program Management Challenge 2012 Evolve and Excel February 22-23, 2012 © 2012 IBM Corporation
    2. 2. Global Business Services—Public SectorPresenters Randy Simpson, PMP – IBM GBS Public Sector NASA Account Lead/EVMS SME Michael Lee, PMP – IBM GBS Public Sector EVMS PMO Leader Both are members of the IBM Public Sector Earned Value Management Systems Program Management Office (EVMS PMO)2 © 2012 IBM Corporation
    3. 3. Global Business Services—Public SectorObjectives To provide a perspective of the EVMS Certification challenge To identify the areas of focus necessary to position an organization for a successful run at certification3 © 2012 IBM Corporation
    4. 4. Global Business Services—Public SectorGovernment Accountability Initiatives Government Performance Results Act (GPRA-1993) Federal Acquisition Streamlining Act (FASA-1994) Clinger Cohen (ITMRA-1996) Sarbanes Oxley Act (2002) OMB’s Circular A-11 (2002) Interim Defense Acquisition Guidebook (2002) NPD 9501.3 Earned Value Performance Management FAR 34.201, 2, 3 & FAR 52.234-2, 3, 4 EVMS (July 2006) ANSI/EIA-748A-1998 EVMS (May 1998) NDIA PMSC EVMS Intent Guide (Nov 2006)4 © 2012 IBM Corporation
    5. 5. Global Business Services—Public SectorEarned Value Management (EVM) Overview Rigorous, distributed program management methodology and system Integrates – Scope – Schedule – Resource Underlying foundation – Program Manager has limited span of control – Responsibility must be distributed – Consistent methodology needed to aggregate performance measures on large programs • Isolate performance to individual work package • Facilitates “direct strike” on elements of program needing course correction5 © 2012 IBM Corporation
    6. 6. Global Business Services—Public Sector EVMS in a Nutshell… EAC BAC Projection of Cost BCWS Variance at Completionm Target Schedule Projection of Schedule Delay at Completion ETCC O S T Current Schedule To-Date FCST Schedule Variance To-Date Cost Variance ACWP BCWS Budgeted Cost of Work Scheduled BCWP Budgeted Cost of Work Performed (Earned Value) ACWP Actual Cost of Work Performed FCST Forecast of Remaining Work BAC Budget at Completion ETC Estimate to Complete BCWP EAC Estimate at Completion Data Date T I M E 6 © 2012 IBM Corporation
    7. 7. Global Business Services—Public Sector FIVE BASIC PERFORMANCE DATA QUESTIONS & ANSWERS QUESTION ANSWER ACRONYM* How much work should Budgeted Cost for BCWS be done? Work Scheduled How much work is done? Budgeted Cost for BCWP Work Performed How much did the is done Actual Cost of ACWP work cost? Work Performed What was the total job Budget at Completion BAC supposed to cost? What do we now expect the Estimate at Completion EAC total job to cost?* PMI has adopted some new terminology & acronyms for these elements (but the theory is unchanged) 7 © 2012 IBM Corporation
    8. 8. Global Business Services—Public SectorPerspective of EVMS Certification is not focused; it isCertification comprehensive Stakeholders IBR Focus (Process is limited) Process Baseline Development Status & Forecasting Focus of most discussions on EVMS Tools Metrics & Reports Management Corrective Action 8 © 2012 IBM Corporation
    9. 9. Global Business Services—Public SectorTenets of EVMS Certification Tenet 1 Stakeholders – Documented EVMS system meets all 32 of the ANSI 748 guidelines Process Tenet 2 – Project(s) are executing the Baseline Development documented system Tenet 3 Status & Forecasting – Project Manager’s, Functional Manager’s and Control Account Metrics & Reports Manager’s are using the system to manage the program Management Tenet 4 – The EVMS is sustainable and an Corrective Action adequate surveillance plan is in place9 © 2012 IBM Corporation
    10. 10. Global Business Services—Public SectorEVMS Guidelines, Systems & Process Groups EVMS Process Managerial Wor k Change Indirect Rate Material Subcontract Groups (EVMIG) Organizing Scheduling Accounting Mgm t Analysis Authorization Incorporation Management Management BaselineEVMS Processes Commonly Estimates At Variance Schedule Schedule Change Data Indirect Rate Subcontract Organizing Work Auth Status & Budgeting Accumulation & Material Control Management (Grey Implemented Complete Analysis Dev’t Update (Internal & Reporting Man agement Badge & Traditional) External ) Self-Evaluation Manager ial Baseline Management Accounting Outsour cing Organizational Structure Executive D ashboard & Schedule , Cost & Integration Management CAS Compliant Accounting Tools & Sys tems Portfolio Management Certified Procurement Tools System System Tools 22. Monthly 8. Time - phased 8. Time- phased 28. Incor porate 28. In corpor ate 16. Actual 4. Orgs EVMS Budget Baseline Budg et Baseline Authorized Author ized Costs Recorded Responsible 21. Cost 1. WBS Reports Changes Changes Consistent w/ For Accumulatio n & Contr ibu ting 9. . Elementof 9 Element of 29. Reconcile 29. Reconcile Budgets Overhe ads Assignment to Element Only; 23. Variance Cost Br eakdown Cost Br eakdown 6. Sequence Current Bud get Cur rent Budget CAs ; Appro priate Subcontractors 17. Summarize 13. Overhe ad Analysis 10. Wor kk & Plan & To Pr io r bbudgets To Prior udgets Cost Per for mance & Subcontr acts 10. Wor & Plan-- Inter- Costs into WBS; Budgets & 25 . Roll- up ning Packages nin g Packages depe ndencies 30.30. Retr oactive Retr oactive No Allocation Allocation Measure ment; must also be Changes Full Accou ntability compliant with Var ia nces & 11. CA 11. CA 19. Recor d 2. OBS 18. Summarize For Mater ial the stand ards Report Reconcilia tion Reconciliation 31. Pre vent 31. Prevent Indir ect Costs Costs into OBS ; Purchased on to the degree 26. Implement Unauthorized Unauthorized For Project Project that they apply Guidelines & 12 . LOE Time 12. LOE Time text No Allocation Managerial Changes Changes Allocation Supporting Phase d Budgets Phased Budgets Processes Action 3 2. Document 32. Document 20. Un it or Lot 24. Manage 3 . Bu sin ess 14. Mgmt 14. Mgmt 27 . Revised Changes Costs, if And Report On Pr ocess Reserve && UB Reserve UB Material Estimates at 7. Products, applicable Overhe ads Integr ation Con tro l Complete (EAC) 15. Prog ram 15. Pr ogram Milestones & Per for mance Contracts Policies Reco nciliation Reconciliation Measures & Procedures Estimating Contracts Pricing & Accounting Indirect Rate Subcontract 5. RAM Estimating Policies & Mgmt Policies & Pr icing & Policy & Risk & Proced ures Pr ocedur es Estimating Procedures Cor rective Id entification , Pro curement Action Development Policie s & Scope & Impact & PM/EVMS Management Methodology Tr acking Procedur es Policy Requirements Definition o f Chan ges Qualified Project , Qualified Schedulers , Estimators, Cost Qualified Enterprise Qualified Procurement People Functional and Control Analysts, EV Analysts & C ontract Financial Analysts and Specialists and Subcontract Account Managers Administrators Management Accountants Administrators Leadership Executive Sponsorship & Subscription10 © 2012 IBM Corporation
    11. 11. Global Business Services—Public SectorSo why “Certify?” EVMS certification candidate is mandated by the customer pursuant to RFP and contract clause imposition (e.g. DFAR 252.234-7000/1) – NOTICE OF EARNED VALUE MANAGEMENT SYSTEM (MAR 1998) • (a) The offeror shall provide documentation that the cognizant Administrative Contracting Officer (ACO) has recognized that the proposed earned value management system (EVMS) complies with the EVMS criteria of DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition Programs (MDAPs) and Major Automated Information System (MAIS) Acquisition Programs, or that the proposed cost/schedule control system has been accepted by the Department of Defense. • (b) If the offeror proposes to use a system that does not meet the requirements of paragraph (a) of this provision, the offeror shall submit a comprehensive plan for compliance with the EVMS criteria. “Certified EVMS” as a competitive advantage11 © 2012 IBM Corporation
    12. 12. Global Business Services—Public SectorMethodologies for Certification Government Agency Certification (~>95%) – DoD (DCMA), NASA, DOE, Security Agencies – Other Agencies developing capability but this will likely be measured in years, not months – Most follow DCMA protocol Self Evaluation with Government Participation (~<5%) – Contractor team leads evaluation – Team consists of Contractor, PCO, EVMS Agency & DCAA representatives – Follows DCMA protocol 3rd Party (~0%) – Understand that are some of these underway – Have not seen a certification conferred in this manner as yet – To my knowledge, no standard acceptable team structure and certification process as yet (although some are attempting to develop a ubiquitous EVMS Cert process)The interest in EVMS and its inclusion in ever-increasing number of RFP’s will require Self & 3rd Party evaluation methodologies to expand to address Certification demand12 © 2012 IBM Corporation
    13. 13. Global Business Services—Public SectorWhat is involved in Self-Certification? EVM System: People, processes and tools must be in place prior to seeking certification – Company Executive Sponsor support is paramount – DCMA/DCAA partnering is essential Select a candidate program to be subject to the certification effort Appoint teams – Certification Team – EVMS Self-Evaluation Team – Augment the Program Management Office for the duration of the certification activity Implement the Self-Certification Plan successfully DCMA or Cognizant Federal Agency issues letter Certifying the EVMS13 © 2012 IBM Corporation
    14. 14. Global Business Services—Public SectorSelection of Candidate Project  Has 748 requirement…  Has a supportive and educated Project Executive, Project Manager & Customer  Prime Contract (versus a Subcontractor to a Prime) with Government  Of sufficient size to demonstrate the capability of the system…at least $8-12M of discrete development effort, a period of performance of 15 months (or more) and more than eight Control Account Managers overall (these are absolute minimums); contracts of this minimum size may not have 748 imposed…  Has tangible level of Material & Subcontracting  Is not a start-up program but may be a newly awarded, sizable piece of development work; Organization is somewhat stable and is not a severely troubled program  Is performing some level of earned value management already and has some organic program controls staff in-place  Is not nearing the end of its development life cycle  The project is fairly near the organization leading and supporting the certification  Will benefit sufficiently from this implementation to at least warrant the distraction of a certification effort14 © 2012 IBM Corporation
    15. 15. Global Business Services—Public SectorNotional PMO Team Undergoing Certification  Support Project Mgmt Office Organizations – Finance Program Planning System Description Business System – Procurement & Controls Development, Validation, Training Training & Compliance & Compliance – Contracts – Subcontracts Certification Scheduling Work Authorization & Augmentation Cost Baseline – Project Development Management – Functional Management – Control Account Management15 © 2012 IBM Corporation
    16. 16. Global Business Services—Public SectorLevel of Support PMO Varies as a function of – Process, System and Personnel Maturity – Subcontractor Involvement • Number of subcontractors • Complexity of subcontractor’s scope – Typically • Double Staff in PMO for duration – Realize the program must continue on towards contractual obligations – No program exists for the sole purpose of EVMS Certification The EVMS Self-Evaluation Team is in addition to the PMO – Should have no contractual obligations – First and foremost responsibility to execute a successful EVMS Certification16 © 2012 IBM Corporation
    17. 17. Global Business Services—Public SectorSelection of the Self-Evaluation Team  First: Independence of the Certification Team – Leader and Deputy needed – The team’s cross section: • Organization seeking certification • DCMA • DCAA • Subcontractors  Self-Evaluation Sub-Teams: Sub-Team Lead Process Group Management Senior Program Manager Organizational Managerial Analysis Baseline Management Senior member of the Program Work Authorization Management Office Scheduling Change Management Accounting Finance or Accounting Manager Accounting Indirect Rate Management Outsourcing Procurement of Contracts Procurement Manager Subcontract Management17 © 2012 IBM Corporation
    18. 18. Global Business Services—Public SectorEVMS Certification Organizational Structure Self-Evaluation Team Leader Baseline Management Sub-Team Management Sub-Team • Sr. PMO Specialist • Senior PM# Work Change Scheduling • DCMA • Quality Authorization Incorporation • PMO Assurance Organizing Management • Subcontractor • DCMA Analysis Support for 8 & 9 • Customer Guidelines (Primary): Support for 22 & 23 6,7,8,9,10,11,12,14,15,28,29,30,31,32 9 Guidelines (Primary): 1,2,3,5,22,23,25,26,27 Su 14 p po rt f or 2, 2 2, Support for 9,10 & 12 23 & 27 Outsourcing Sub-Team Accounting Sub-Team • Finance • Manager of • DCAA* Indirect Rate Subcontracts Accounting Material Management Management Subcontract • Subcontractor Management Support for 16 & 22 • Customer • DCAA* Guidelines (Primary): Guidelines (Primary): 4,13,16,17,18,19,20,22,24&30 21 10 1 # Deputy Self-Evaluation Team Leader * DCAA representative, has a role on two teams18 © 2012 IBM Corporation
    19. 19. Global Business Services—Public SectorNotional Scheduling and Preparation  Certification Team  Implements & executes EVMS  Self-Evaluation Team  Systematically evaluates EVMS, management team and artifacts and generates report  Certifying Agency  Letter of Certification  Timeline: Months Time T- 6 T-5 T -4 T-3 T-2 T-1 (T) T+1 Summary “Final” Detailed Self - Self- Self-Certification Progress Self- Self- System Evaluation Evaluation Evaluation Team Assistance Evaluation Evaluation Description Review Final Data Report & Formation Visit Review Plan Review Evaluation Planning Call Follow-Up Development IBR19 © 2012 IBM Corporation
    20. 20. Global Business Services—Public SectorProgress Assistance Visit (PAV) Agreement on the balance of the review schedule The Self-Evaluation Team (SET) provides comments and questions on the system description (that were not satisfactorily addressed during the PAV) The SET provides any other input on the EVMS that they believe has a bearing on the efficacy of the system (e.g. staffing) The SET makes initial request for EVMS documentation The SET generates a preliminary risk assessment of the EVMS under review Integrated Baseline Review (IBR) will satisfy the intent of the PAV • Should be done concurrently if IBR is already scheduled20 © 2012 IBM Corporation
    21. 21. Global Business Services—Public SectorReview Plan  Contract Summary – Contract Number, Name, Description, Value, Type, Customer and Period of Performance for the project or projects under review  Purpose – To evaluate ABC Corporation’s DEF Site/Facility for compliance with DFAR 252.234-7001, Notice of Earned Value Management System (Mar 1998)  Risks – What are the risks inherent with this evaluation and how will it be focused to address these risks; should be a summary of the risks discussed with the Certification Team during the PAV and be short and to the point; DCMA has a simple form for this assessment that is process area focused  Scope—see next slide  Documentation Request – It is recommended that all of the documentation addressed in the Earned Value Management Implementation Guide be requested . These items, along with their applicability to specific guidelines, are represented in Appendix A  Other – Profile of Self-Evaluation Team and qualifications – Precise scope of project evaluation (e.g. CLINS 2-5 or Modification 3) if it is to be limited – Identification of the Validation Director of the certifying organization – Any other material disclosures that are pertinent to the evaluation and eventual certification21 © 2012 IBM Corporation
    22. 22. Global Business Services—Public SectorScope of Review Plan Review Process Area Required (Y or N) Guideline Reference Yes Primary 1, 2, 3 & 5; Support to 9, 10, 22, 26 & 27 Organizing Yes Primary 6 & 7; Support to 23 Scheduling Yes Primary 16, 17, 18, 20, 22 & 30 Accounting Yes Primary 8, 9, 10, 11, 12, 14 & 15; Support to 22 Work/Budget Authorization Yes Primary 4, 13, 19 & 24 Indirect Management Yes Primary 22, 23, 25, 26 & 27 Managerial Analysis Yes Primary 28, 29, 30, 31 & 32 Change Incorporation Yes Primary 21; Support to 9, 10, 12, 22, 23 & 27 Material Management Yes Support to 9, 10, 12, 16, 22, 23 & 27 Subcontract Management22 © 2012 IBM Corporation
    23. 23. Global Business Services—Public SectorSystem Description System Description Document (SDD) – Only process document “certified” – Placed under Configuration Control after certification Other Documents – Desktop Procedures/Work Instructions Self-Evaluation Sub-Teams review SDD – Prior to EVMS Self-Evaluation Review – Certification Team incorporates changes – Document final prior to review23 © 2012 IBM Corporation
    24. 24. Global Business Services—Public SectorSelf-Evaluation Review Plan Methodology – Documentation reviews • See appendix for a listing of docs that appears in the EVMIG • It is difficult to overestimate the time spent on data gathering & review – Data traces – Data call • 5 weeks prior to review – Interviews • Survey/interview scripts – Develop, socialize and refine prior to interviews Execution (one week activity) – In-brief – Document review – Data tracing – Interviews – Team caucus – Outbriefing24 © 2012 IBM Corporation
    25. 25. Global Business Services—Public SectorReview Protocol, Planning and Conduct Primary Objective: – Develop detailed basis for determination of compliance for: • System • Process Groups • Guidelines – Populate DCMA format Must collect sufficient documented evidence to support recommendation25 © 2012 IBM Corporation
    26. 26. Global Business Services—Public SectorDetailed Review Planning Review: – Work Breakdown Structure (WBS) – Organizational Breakdown Structure (OBS) – Responsibility Assignment Matrix (RAM) Ascertain: – Project Leadership – Functional Leadership – Control Account Management – Number of Control Accounts – Size of Control Accounts – Type of Control Accounts – Subcontractor Involvement Also review the System Description Document (SDD) Prepare Preliminary Risk Assessment26 © 2012 IBM Corporation
    27. 27. Global Business Services—Public SectorInterviews Objective: is EVMS being used as described In the SDD? – Self-Evaluation Team must understand the SDD • Often generates clarification(s) to the SDD that are fed back to the Certification Team • Self-Evaluation Team competencies must parallel SDD subject matter – SDD versus OBS will generate a helpful RAM Interview Candidates – Program Executive/ Director/ Manager – Functional Managers – Cost Account Managers – EVMS Project Support functions • Scheduling • Program Control…27 © 2012 IBM Corporation
    28. 28. Global Business Services—Public SectorEVMS Self-Evaluation Outcomes Based on information gathered and documented from: – Process Description Documents • SDD • Desktop Procedures – Data Traces • Between documents and systems both inside and outside the EVMS – Process Input/Output Documents • Reports • Logs • Analyses – Interviews • Interview Notes • Bookkeep versus the SDD28 © 2012 IBM Corporation
    29. 29. Global Business Services—Public SectorEvaluate Each of the 32 Guidelines Only prudent combination of evidence can be used to make recommendation – Identify applicable section of SDD – Review applicable Project Documents – Interview Personnel • Map questions to the 32 Guidelines • Script questions • Ask open-ended questions – Encourage Interviewee to describe process, flow or activity – No yes/no questions • Document (take notes) carefully – Document findings Prepare pro-forma DCMA guideline forms to keep team on track29 © 2012 IBM Corporation
    30. 30. Global Business Services—Public Sector Sub-Team Interview Integration Organization Planning, Scheduling & Budgeting Accounting Analysis & Mgmt Reports Revisions/Data Maint Twenty Seven (27) Twenty Three (23) Twenty Eight (28) Twenty Four (24) Twenty Nine (29) Twenty Two (22) Twenty Five (25) Twenty One (21) Twenty Six (26) Seventeen (17) Thirty One (31) Thirty Two (32) Fourteen (14) Nineteen (19) Eighteen (18) Thirteen (13) Sixteen (16) Twenty (20) Twelve (12) Eleven (11) Fifteen (15) Thirty (30) Seven (7) Three (3) Eight (8) Ten (10) Four (4) Nine (9) One (1) Five (5) Two (2) Six (6) Process Groups Group Organizing One P P P P S S S S S Managerial Analysis Six P P P P P Scheduling Two P P SWork/BudgetAuthorization Three P P P P P P P S ChangeIncorporation Seven P P P P P Accounting Four P P P P D D IndirectManagement Five P D P P P MaterialManagement Eight S S S P S S SSubcontractManagement Nine S S S S S S S S P Primary D DCAA Split Ownership S Supporting 30 © 2012 IBM Corporation
    31. 31. Global Business Services—Public SectorDiscrepancies Non-compliance – Major—wide system or process impact; material misstatement of performance data – Minor—any other Document via Corrective Action Report (CAR) CAR’s turned in to the Self-Evaluation Team Lead for disposition: – Accept • Disposition to Certification Team • Who creates Corrective Action Plan (CAP) for each CAR – Immediate execution can avert “fail” status on certification – Reject • Primarily due to CAR not clearly identifying discrepancy to SDD • Often “maturity” issues surface as CAR’s – Not applicable—only compliance to SDD is tested – Log31 © 2012 IBM Corporation
    32. 32. Global Business Services—Public SectorIn-Brief Preparation and Presentation Includes both teams – Self-Evaluation Team agenda • Certification Process Review • Set expectations for the week – Review typically requires one week of calendar time • Set Interview protocol – Location, promptness, what to bring – Certification Team • Included Program Team (from Program Management Office and other elements of the program) • Background/ History of Earned Value Management on the program • EVMS Presentation – Process summary of SDD – Typically requires several hours to present and offers opportunity for feedback, questions and answers32 © 2012 IBM Corporation
    33. 33. Global Business Services—Public SectorOut-Brief Preparation and Presentation Presented by the Self-Evaluation Team • Summarize process used for self-evaluation • Identify documentation reviewed • Identify Interviews conducted • Recommend “compliance” or “non-compliance” – Summary of Process Group findings – Next steps to resolve discrepancies – Recommendation for follow-up review > If discrepancies can be resolved in relatively short time > Follow-up review should be scheduled to continue Certification process Documentation – Process Group Executive Summaries – Guide Evaluations (primary and supporting) – Corrective Action Request (CAR) Log and disposition – Continuous Improvement Opportunities (CIO)33 © 2012 IBM Corporation
    34. 34. Global Business Services—Public SectorProcess to Certification Program Team & Deliver CARs to Self Evalutation Out Self Eval Team Project Team Develops Project Program Brief Meeting(s) to Corrective Action Plan(s) Team Discuss CARS Disapproves Additional Action(s) Reqd Project Team Self-Eval Team Self-Eval Team Approves Executes Assures Closure Reviews Corrective Corrective Action Corrective Action Action Plan(s) Plan(s) Requests Action(s) Closed Self-Eval Team Validation Director Provides Validation Executive Agent All Discrepancies provides Director Final EVMS Grants EVMS Closed Recommendation to DoD Certification Report & Certification Executive Agent Reccomendation34 © 2012 IBM Corporation
    35. 35. Global Business Services—Public SectorFinal Report Executive Summary CAR Log CIO Log Management Sub-Team Baseline Management Sub-Team Accounting Sub-Team Outsourcing Sub-Team Process Group Process Group Process Group Process Group Process Group Process Group Process Group Process Group Process Group Summary Summary Summary Summary Summary Summary Summary Summary Summary P 22. Monthly 8. Time - phased 8. Time- phased P 28. Incorporate 28. Incorporate 16. Actual 4. Orgs Support forms for Authorized Authorized Costs Recorded 21. Cost 2,9,10,12,16,22,23 P EVMS P Budget Baseline Budget Baseline P Responsible Changes Changes Consistent w/ & 27 1. WBS Reports For P Accumulation & 23. Variance P 9. Element of 9. Element of 29. Reconcile 29. Reconcile P Budgets P Overheads Assignment to CARs Analysis Cost Breakdown Cost Breakdown 6. Sequence Current Budget 17. Summarize Current Budget CAs ; Appropriate P & To Prior budgets Costs into WBS; To Prior budgets 13. Overhead 10. Work & Plan- 10. Work & Plan - Cost Performance P Inter- P No Allocation Budgets & Pning Packages ning Packages P Measurement; CIOs 25. Roll- up dependencies 30.30. Retroactive Retroactive Allocation P Variances & Changes Full Accountability P 11. CA 11. CA 19. Record 2. OBS P Report 18. Summarize For Material Reconciliation Reconciliation 31. Prevent P Costs into OBS; 31. Prevent Indirect Costs Purchased on Unauthorized Unauthorized No Allocation For Project 26. Implement P 12. LOE Time 12. LOE Time Project Process Group P P P Managerial Changes Changes Allocation P Forms P Phased Budgets Phased Budgets P P Action 32. Document 32. Document 20. Unit or Lot 24. Manage Support forms for 3. Business P 14. Mgmt 14. Mgmt 27. Revised Changes Costs, if And Report On 9,10,12,22, 23 & Process Reserve && UB Reserve UB Integration Estimates at Complete (EAC) 7. Products, applicable P Overheads 27 P P 15. Program 15. Program Milestones & CARs CARs Reconciliation Reconciliation Performance CARs CARs P CARs Measures CIOs CIOs Support form for 22 5. RAM CIOs CIOs CIOs P CARs Support form for 23 Support forms for 9,10,22,26 & 27 CIOs CARs CARs CIOs CIOs EVMS Process Managerial Work Change Indirect Rate Material Subcontract Organizing Scheduling Accounting Mgmt Groups Analysis Authorization Incorporation Management Management Narratives Forms P Primary Guideline Compliance Disposition Form35 © 2012 IBM Corporation
    36. 36. Global Business Services—Public SectorCertification Conduct Review Identify/ correct discrepancies Prepare Final Report Submit Final Report to Certifying Agency Agency Review (4-6 weeks) Letter of Certification issued36 © 2012 IBM Corporation
    37. 37. Global Business Services—Public SectorSummary EVMS Self-Evaluation is a valuable and viable method to achieve certification – A great training ground for contractor personnel – Takes some of the burden off government agencies – May enable a contractor to significantly accelerate certification because agency scheduling is not an issue – Builds contractor resource pool for surveillance and other contract implementations Communication and positioning is the key – Agencies have to be willing to allow a self-evaluation with their participation • Some agencies have not permitted this methodology – Should communicate and coordinate with your customer and CFA to explore if this could be an option • Having a credible team of EVMS folks to lead this helps an awful lot… And lastly, it isn’t free… there is a cost for self-evaluation… but its benefits far exceed this cost… must look at it as an investment in your EVMS capability… because that is what it is…37 © 2012 IBM Corporation
    38. 38. Global Business Services—Public SectorAppendix © 2012 IBM Corporation
    39. 39. Contract Price Earned Value Management ‘ Gold Card’ NCC TAB CBB Profit / Fees AUW OTB OVERRUN EAC TAB PMB Management Management Reserve Reserve BAC PMB Undistributed Control Summary Level Budget Accounts Planning Packages Schedule Variance Work Packages Planning Packages Cost $ Variance TERMINOLOGY ACWP NCC Negotiated Contract Cost Contract price less profit / fee(s) AUW Authorized Unpriced Work Work contractually approved, but not yet negotiated / definitized BCWS CBB Contract Budget Base Sum of NCC and AUW OTB Over Target Baseline Sum of CBB and recognized overrun BCWP TAB Total Allocated Budget Sum of all budgets for work on contract = NCC, CBB, or OTB BAC Budget At Completion Total budget for total contract thru any given level PMB Performance Measurement Baseline Contract time-phased budget plan time Time Completion MR Management Reserve Budget withheld by Ktr PM for unknowns / risk management Now Date UB Undistributed Budget Broadly defined activities not yet distributed to CAs CA Control Account Lowest CWBS element assigned to a single focal point to plan & control scope / schedule / budgetVARIANCES Favorable is Positive, Unfavorable is Negative WP Work Package Near-term, detail-planned activities within a CA PP Planning Package Far-term CA activities not yet defined into WPsCost Variance CV = BCWP – ACWP CV % = (CV / BCWP) *100 BCWS Budgeted Cost for Work Scheduled Value of work planned to be accomplished = PLANNED VALUE BCWP Budgeted Cost for Work Performed Value of work accomplished = EARNED VALUESchedule Variance SV = BCWP – BCWS SV % = (SV / BCWS) * 100 ACWP Actual Cost of Work Performed Cost of work accomplished = ACTUAL COSTVariance at Completion VACOVERALL STATUS = BAC – EAC EAC Estimate At Completion Estimate of total cost for total contract thru any given level; may be generated by Ktr, PMO, DCMA, etc. = EACKtr / PMO / DCMA% Schedule = (BCWSCUM / BAC) * 100 LRE Latest Revised Estimate Ktr’s EAC or EACKtr SLPP Summary Level Planning Package Far-term activities not yet defined into CAs% Complete = (BCWPCUM / BAC) * 100 TCPI To Complete Performance Index Efficiency needed from ‘time now’ to achieve an EACDoD TRIPWIRE = (ACWPCUM / BAC) > 100Unfavorable is < 1.0% Spent METRICS Favorable is * 1.0, EVM POLICY: DoDI 5000.2, Table E3.T2 . EVMS in accordance with ANSI/EIA-748 is required for cost or incentiveCost Efficiency CPI = BCWP / ACWP contracts, subcontracts, intra-government work agreements, & other agreements valued > $20M (Then-Yr $). EVMSSchedule Efficiency SPI = BCWP / BCWS contracts > $50M (TY $) require that the EVM system be formally validated by the cognizant contracting officer. Additional Guidance in Defense Acquisition Guidebook and the Earned Value Management Implementation Guide (EVMIG). EVMS isBASELINE EXECUTION INDEX (BEI) (Schedule Metric) discouraged on Firm-Fixed Price, Level of Effort, & Time & Material efforts regardless of cost.BEI = # of Baseline Tasks Actually Completed / # of Baseline Tasks Scheduled for Completion EVM CONTRACTING REQUIREMENTS:CRITICAL PATH LENGTH INDEX (CPLI) (Schedule Metric) Non-DoD FAR Clauses – Solicitation – 52.234-2 (Pre-Award IBR) or 52.234-3 (Post Award IBR)CPLI = (Critical PathBaseline Duration + Float Duration) / Critical PathBaseline Duration Solicitation & Contract – 52.234-4TO COMPLETE PERFORMANCE INDEX (TCPI) # § DoD( ≥ $20M) DFAR Clauses - 252.242-7001 for solicitations and 252.242-7002 for solicitations & contractsTCPIEAC = Work Remaining / Cost Remaining = (BAC – BCWPCUM) / (EAC – ACWPCUM) Contract Performance Report – DI-MGMT-81466A * 5 Formats (WBS, Organization, Baseline, Staffing & Explanation) Integrated Master Schedule – DI-MGMT-81650 * (Mandatory for DoD EVMS contracts)ESTIMATE AT COMPLETION # Integrated Baseline Review (IBR) - Mandatory for all EVMS contractsEAC = Actuals to Date + [(Remaining Work) / (Efficiency Factor)] * See the EVMIG for CPR and IMS tailoring guidance.EACCPI = ACWPCUM + [(BAC – BCWPCUM) / CPICUM ] = BAC / CPICUM EVM Home Page = https://acc.dau.mil/evm eMail Address: EVM.dau@dau.milEACComposite = ACWPCUM + [(BAC – BCWPCUM) / (CPICUM * SPICUM)] DAU POC: (703) 805-5259 (DSN 655) Revised December 2006# To Determine a Contract Level TCPI or EAC; You May Replace BAC with TAB§ To Determine the TCPI BAC,LRE Replace EAC with either BAC or LRE
    40. 40. Global Business Services—Public SectorTo perform quality project management & financial analyses... CAN NOT DO THIS (Integrated EVM, Measurement & Forecasting & Forecasting)….. Economic, Risk & Opportunity WITHOUT THIS Analysis (Minimum Essential Baseline Status Collection Requirements) Change & Reporting Mgmt Admin Baseline Development & Authorization/Resource Planning Procedures/Methods Estimating System Project Accounting System Critical Mass (Personnel) in Planning, Project Accounting & Estimating Functions Senior Management Buy-In, Support & Subscription …must build from the bottom40 © 2012 IBM Corporation

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