This document discusses EVMS certification and provides an overview of earned value management. It contains the following key points: 1) The objectives are to provide perspective on the EVMS certification challenge and identify areas of focus to position an organization for successful certification. 2) EVMS certification evaluates an organization's compliance with 32 ANSI guidelines across stakeholders, processes, baseline development, status and forecasting, metrics and reports, management, and corrective action. 3) Successful certification depends on having a documented EVMS that meets all guidelines, projects executing the documented system, and an adequate surveillance plan to ensure sustainability.

1. Global Business Services—Public Sector
EVMS Self-Evaluation
and Certification
NASA Program Management Challenge 2012
Evolve and Excel
February 22-23, 2012
© 2012 IBM Corporation

2. Global Business Services—Public Sector
Presenters
 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. Global Business Services—Public Sector
Objectives
 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 certification
3 © 2012 IBM Corporation

4. Global Business Services—Public Sector
Government 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. Global Business Services—Public Sector
Earned 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 correction
5 © 2012 IBM Corporation

6. Global Business Services—Public Sector
EVMS in a Nutshell…
EAC
BAC
Projection of Cost
BCWS Variance at Completion
m
Target Schedule
Projection of
Schedule Delay
at Completion ETC
C 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. 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. Global Business Services—Public Sector
Perspective of EVMS Certification is not focused; it is
Certification
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. Global Business Services—Public Sector
Tenets 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 place
9 © 2012 IBM Corporation

10. Global Business Services—Public Sector
EVMS 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
Baseline
EVMS 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 & Subscription
10 © 2012 IBM Corporation

11. Global Business Services—Public Sector
So 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 advantage
11 © 2012 IBM Corporation

12. Global Business Services—Public Sector
Methodologies 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 demand
12 © 2012 IBM Corporation

13. Global Business Services—Public Sector
What 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 EVMS
13 © 2012 IBM Corporation

14. Global Business Services—Public Sector
Selection 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 effort
14 © 2012 IBM Corporation

15. Global Business Services—Public Sector
Notional 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
Management
15 © 2012 IBM Corporation

16. Global Business Services—Public Sector
Level 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
Certification
16 © 2012 IBM Corporation

17. Global Business Services—Public Sector
Selection 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 Management
17 © 2012 IBM Corporation

18. Global Business Services—Public Sector
EVMS 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 teams
18 © 2012 IBM Corporation

19. Global Business Services—Public Sector
Notional 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
IBR
19 © 2012 IBM Corporation

20. Global Business Services—Public Sector
Progress 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 scheduled
20 © 2012 IBM Corporation

21. Global Business Services—Public Sector
Review 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
certification
21 © 2012 IBM Corporation

22. Global Business Services—Public Sector
Scope 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 Management
22 © 2012 IBM Corporation

23. Global Business Services—Public Sector
System 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 review
23 © 2012 IBM Corporation

24. Global Business Services—Public Sector
Self-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
– Outbriefing
24 © 2012 IBM Corporation

25. Global Business Services—Public Sector
Review 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 recommendation
25 © 2012 IBM Corporation

26. Global Business Services—Public Sector
Detailed 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 Assessment
26 © 2012 IBM Corporation

27. Global Business Services—Public Sector
Interviews
 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. Global Business Services—Public Sector
EVMS 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 SDD
28 © 2012 IBM Corporation

29. Global Business Services—Public Sector
Evaluate 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 track
29 © 2012 IBM Corporation

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 S
Work/Budget
Authorization
Three P P P P P P P S
Change
Incorporation
Seven P P P P P
Accounting Four P P P P D D
Indirect
Management
Five P D P P P
Material
Management
Eight S S S P S S S
Subcontract
Management
Nine S S S S S S S S
P Primary D DCAA Split Ownership S Supporting
30 © 2012 IBM Corporation

31. Global Business Services—Public Sector
Discrepancies
 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
– Log
31 © 2012 IBM Corporation

32. Global Business Services—Public Sector
In-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 answers
32 © 2012 IBM Corporation

33. Global Business Services—Public Sector
Out-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. Global Business Services—Public Sector
Process 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) Req'd
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
Reccomendation
34 © 2012 IBM Corporation

35. Global Business Services—Public Sector
Final 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 Form
35 © 2012 IBM Corporation

36. Global Business Services—Public Sector
Certification
 Conduct Review
 Identify/ correct discrepancies
 Prepare Final Report
 Submit Final Report to Certifying Agency
 Agency Review (4-6 weeks)
 Letter of Certification issued
36 © 2012 IBM Corporation

37. Global Business Services—Public Sector
Summary
 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. Global Business Services—Public Sector
Appendix
© 2012 IBM Corporation

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 / budget
VARIANCES 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 WPs
Cost 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 VALUE
Schedule Variance SV = BCWP – BCWS SV % = (SV / BCWS) * 100 ACWP Actual Cost of Work Performed Cost of work accomplished = ACTUAL COST
Variance at Completion VAC
OVERALL 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 EAC
DoD 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 incentive
Cost Efficiency CPI = BCWP / ACWP contracts, subcontracts, intra-government work agreements, & other agreements valued > $20M (Then-Yr $). EVMS
Schedule 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 is
BASELINE 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 – 52.234-4
TO COMPLETE PERFORMANCE INDEX (TCPI) # § DoD( ≥ $20M) DFAR Clauses - 252.242-7001 for solicitations and 252.242-7002 for solicitations & contracts
TCPIEAC = 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 contracts
EAC = 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.mil
EACComposite = 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. Global Business Services—Public Sector
To 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 bottom
40 © 2012 IBM Corporation

41. Global Business Services—Public Sector
Documentation Requirements EIA-748 Guidelines
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 One (21)
Twenty Two (22)
Twenty Five (25)
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)
Two (2)
Five (5)
Six (6)
Item Description
1 Accounting Manual 1 1 1
2 Accounting System Data 1 1
3 Action Item Lists
Authorization Docuements for Retroactive
4 1
Budget Adjustments
5 BCWS Supporting Documentation 1
6 Bill of Materials 1
7 Budget Logs 1 1
8 Budget Records (Including MR & UB) 1 1
9 Budget Revision Records 1
10 Change Authorization Documents 1
11 Change Control Procedure 1 1
12 Change Control Records 1
13 Charge Number Structure 1
14 Contract Change Documentation 1
15 Contract Data Requirments 1
16 Contract Work Breakdown Structure 1 1 1 1
17 Contractor's Accounting Manual 1
18 Contractual Instruments 1
19 Control Account Plans 1 1 1 1 1 1
20 CWBS Dictionary 1 1
21 DCAA Audit Reports 1
22 DCAAM 7640.1 1
23 Desktop Procedures 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
24 Disclosure Statements (CAS, etc.) 1 1 1
25 EAC Procedure 1
26 EAC Supporting Documentation 1
27 External Reports (CPR, CFSR) 1 1 1 1 1 1 1
41 © 2012 IBM Corporation

42. Global Business Services—Public Sector
Documentation Requirements Organization Planning, Scheduling & Budgeting
EIA-748 Guidelines
Accounting Analysis & Mgmt Reports Revisions/Data Maint
Twenty Seven (27)
Twenty Three (23)
Twenty Eight (28)
Twenty Four (24)
Twenty Nine (29)
Twenty One (21)
Twenty Two (22)
Twenty Five (25)
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)
Item Description
28 FAR 31.203 1
29 GAAP 1
30 Intermediate Level Management Results 1
31 Internal BCWS Reports 1
32 Internal Data Reports 1
Internal Factory Standards Planning
33 1
Docuements
34 Internal Material Performance Data 1 1
35 Internal Performance Reports 1 1 1 1 1 1 1 1 1 1 1
36 Internal Time-Phased Baseline Documents 1
37 Journal Vouchers 1
38 Manager Interview Results 1 1 1 1 1 1 1 1
39 Manufacturing Breakdown Structure (if appl.) 1
40 Manufacturing Cost Account Plans (if appl.) 1
41 Material Manager Interviews 1
42 Material Trace 1
43 Material Variance Analysis Docuementation 1 1 1
44 Organization Charts (All, including Subs) 1 1 1 1 1 1 1
45 Overhead Budgeting Policies & Procedures 1 1 1 1
46 Prime to Subcontractor Reconcilitation 1 1
47 Program Schedules 1 1 1 1
48 Program Status Review Documents 1
49 Rate Table for EAC Valuation 1
50 Schedule Trace 1 1 1
51 Schedule Variance Analysis Documents 1
52 Statement of Work 1
53 Subcontract Control Account Plans 1 1 1
54 Subcontract Manager Interviews 1
42 © 2012 IBM Corporation

43. Global Business Services—Public Sector
Documentation Requirements
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 One (21)
Twenty Two (22)
Twenty Five (25)
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)
Two (2)
Five (5)
Six (6)
Item Description
55 Subcontract Progress Payment Requests 1 1 1
56 Subcontract Scope of Work Descriptions 1
Subcontractor Estimate Supporting
57 1
Documentation
58 Subcontractor Performance Reports 1 1 1
59 Summary Planning Documents 1
60 Supporting Rationale for Projected Rates 1
61 System Description Document 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
62 Variance Analysis Documents 1
63 Variance Analysis Procedure 1
64 Variance Analysis Supporting Documentation 1 1 1
65 Work Instructions 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
66 Work/Budget Authorizations 1 1 1 1
43 © 2012 IBM Corporation