Earned Value Management Presented By Steve Krivokopich May

Earned Value Management Presented By: Steve Krivokopich May 9 - 10, 2006

Nunn-Mc. Curdy Criteria “Significant” “Critical” Current Baseline Estimate +15% + 25% Original Baseline Estimate +30% +50% Notification and SAR Notification, SAR, and Certification Perception: Rebaselining was allowing cost growth to go unreported

Voice of Customers • PEOs / PMs • “Too many surprises … why didn’t the EVMS forecast these problems? ” • “Data accuracy … the CPRs contain errors” • “How do we get the supplier to fix their system? ” • “We don’t know what you are doing to correct problems with the supplier’s EVMS” • “We don’t know what DCMA does with EVM” • “A report based on the CPR, received after the CPR, does not help me” • “We do w. Insight analysis … we’re interested in your perspectives & independent assessment”

Service Initiatives • Department of the Navy • “… numerous studies, GAO reports and Naval Audits reveal EVM is not implemented correctly or consistently across the Navy’s acquisition programs. ” • “These reports state that many program managers do not use their earned value data to measure and assess risk, and then take action that will keep programs at agreed cost, schedule, and technical performance levels. ” • “Therefore, I am directing the following policies and measures: • “… will hold program managers accountable for using the EVM data to properly manage their program’s performance. ” • “… place more emphasis and resources on ensuring accurate baselines are established …” • “… the data provided by the EVM system must be accurate, timely, and reflect progress on a realistic time phased plan. I will hold program managers and contractors accountable for providing this information. ” • “Perhaps most important, there will be increased visibility over all the Navy’s acquisition programs. ”

Service Initiatives • Department of the Army • “… each PEO is directed to establish common processes to provide for accurate EVM and IMS implementation and maintenance. ” • “… each PEO will review MOAs with the DCMA for acquisition contracts in their portfolio and make recommendations for revision as necessary. ” Signed by Claude M. Bolton, Jr. , Assistant Secretary of the Army (Acquisition, Logistics and Technology) on March XX, 2006

EVM Responsibilities • EVM Center • Set expectations for EVM Practices across the Enterprise Draft Concept of Operations in staffing • www. guidebook. dcma. mil/79/guidebook_tools/htm • Provide enterprise-wide training • Interface with industry • Conduct Industry EVM System Compliance Reviews • Team with Divisions/CMOs and Services to monitor, assess and drive improvements to industry EVM performance

EVM Responsibilities • Product Division Responsibilities • Negotiate customer outcomes at the Buying Command level • Ensure CMOs have meaningful program outcomes • Provide EVM support to CMOs • Identify members to support EVM reviews • Report significant EVM issues to HQ • Ensure CMOs are taking appropriate actions

EVM Responsibilities • CMO Responsibilities • Negotiate program customer outcomes to ensure proper EVM activities are identified and managed • ACOs recognize contractors validated EVMS • Annually provide the health of contractor EVMS • Assure continued contract EVMS compliance • Provide customers insightful program information • Negotiate, consolidate and coordinate with supporting CMOs • Report any significant EVM issues to Divisions • Consolidate EVM training needs and report to Division

CMOs – The Front Line • CPR Quality – a customer outcome • Do the numbers add up – it is just math? • Do the variance narratives really address performance issues? • Is it being submitted on-time? • You need a comprehensive means of assessing the EVM system • Issues need to be resolved – customers informed • Don’t wait to escalate • Support Compliance Reviews – the training experience exceeds the time away from your office

Annual EVMS Status Update • Do. D approved EVMS Supplier List now on website • http: //www. dcma. mil/dcma-pi/customer. htm • New requirement for continued EVMS recognition • EVM System is formally accepted by the appropriate ACO (ACO, DACO, CACO, DCE) (no change) • Annual report of EVMS status required from ACO to EVM Center Report requires: (new requirement) • summary of surveillance activities • description of CARs (deficiencies) resulting from surveillance • include satisfaction (timeliness and effectiveness) with the submission and implementation of Corrective Actions Plans (CAPs) • quality of CPRs • assessment on the contractor’s use of EVM as a management tool

Enterprise-wide Training • Future plans • Leverage PMI - CPM professional education program • Classes offered at Spring and Fall conferences • Leverage NAVAIR for other training opportunities • EVM data analysis training • Schedule risk assessments

Questions or Comments