Snippet 1 1 EVMS Background and Requirements U

Snippet 1 -1: EVMS Background and Requirements U. S. DEPT. OF ENERGY OFFICE OF PROJECT MANAGEMENT (PM)

Evolution of Earned Value Management Systems PERT C/SPCS C/SCSC Program Evaluation Review Technique U. S. DOD Cost/Schedule Planning and Control Specification Cost/Schedule Control Systems Criteria 11 Criteria 57 Audit Steps Owned by DOD Joint Services 35 Criteria ERDA DOE EVMS OMB DOE Order 2250. 1 directs usage of C/SCSC on Major Systems Acquisition Earned Value Management System OMB Circular A-11, Capital Programming Guide DOE Order 413. 3 directs usage of EVMS compliant with EIA-748 U. S. Energy Research & Development Administration shifts from Management Control Systems (MCS) to C/SCSC 1965 1975 1979 Requires cost and schedule performance goals ANSI/EIA 7481998 Standard 32 Guidelines 1967 1959 Ownership transferred to Industry DOD adopts EVMS ANSI/EIA 748 -1998 on 8/17/1999 1997 2000 1995 through 1999 2

What is an Earned Value Management System? Processes Systems People 3

What is an Earned Value Management System? Processes • • • Systems People Organizing Planning and Scheduling Budgeting and Work Authorization Material Management Subcontractor Management Analysis and Managerial Reporting Change Control Accounting Considerations Indirect Cost Management Risk Management 4

What is an Earned Value Management System? Systems Processes • • • Organizing Planning and Scheduling Budgeting and Work Authorization Material Management Subcontractor Management Analysis and Managerial Reporting Change Control Accounting Considerations Indirect Cost Management Risk Management • • People Scheduling Software Cost Processors Accounting System Project Management Performance Reporting System 5

What is an Earned Value Management System? Systems Processes • • • Organizing Planning and Scheduling Budgeting and Work Authorization Material Management Subcontractor Management Analysis and Managerial Reporting Change Control Accounting Considerations Indirect Cost Management Risk Management • • Scheduling Software Cost Processors Accounting System Project Management Performance Reporting System People • • • Culture Roles and Responsibilities Leadership Training Experience 6

An EVMS: Integrates scope, schedule, budget, along with performance elements for optimum project planning and control 7

An EVMS: Integrates scope, schedule, budget, along with performance elements for optimum project planning and control Provides current, accurate, complete, repeatable, auditable, and compliant data 8

An EVMS: Integrates scope, schedule, budget, along with performance elements for optimum project planning and control Provides current, accurate, complete, repeatable, auditable, and compliant data Used to support project management as a decision-making tool and a critical component of risk management 9

For further details, refer to the PM Compliance Assessment Guidance contained in the PM EVMS Compliance Review Standard Operating Procedure, Appendix A, located at the PM EVMS Website https: //www. energy. gov/projectmanagement/services-0/earned-value -management for latest list of Guidelines should they change. 10

Governing Procedures EIA-748 Order 413. 3 B Contractual Requirement Electronic Industries Alliance 748 (EIA-748) standards provides 32 guidelines 11

Governing Procedures Order 413. 3 B EIA-748 Electronic Industries Alliance 748 (EIA-748) standards provides 32 guidelines • Use of EVMS compliant with EIA-748 required prior to CD-2 • Certification as compliant required prior to CD-3 • EVMS not required for firm fixed-price contracts Contractual Requirement 12

Governing Procedures Order 413. 3 B EIA-748 Electronic Industries Alliance 748 (EIA-748) standards provides 32 guidelines • • • Use of EVMS compliant with EIA-748 required prior to CD-2 Certification as compliant required prior to CD-3 EVMS not required for firm fixed-price contracts Contractual Requirement • DOE O 413. 3 B, Attachment 1, Contractor Requirements Document • FAR clause 52. 234 -4, Earned Value Management System • DOE-K-2001, Notice of EVMS (Mar 2019) • DOE-H-2024, EVMS (Mar 2019) 13

Page 14 DOE-H-2024 Clause Contractor Requirements ◦ Establish, maintain, and use EVMS compliant with EIA-748 including a System Description ◦ Link the EVMS to the contractor’s various management systems ◦ Maintain an Integrated Project Management Report (IPMR) and Integrated Master Plan (IMP) that logically networks all project activities ◦ Develop and submit a Contract Funds Status Report (CFSR) and perform reconciliation of the CFSR with the IPMR on a quarterly basis. ◦ Submit IPMR and CFSR data into PARS i. a. w. "Contractor Project Performance Upload Requirements" ◦ Notify Contracting Officer of all proposed changes to the EVMS procedures and the impact of those changes ◦ Provide access to all pertinent records and data requested by the Contracting Officer to ensure the EVMS remains compliant ◦ Refer to DOE-H-2024 for a complete list. 14

Page 15 DOE O 413. 3 B – EVM Requirements Use of EVMS compliant with EIA-748 required prior to CD-2 Certification as compliant required prior to CD-3 EVMS not required for firm fixed-price contracts Monthly reporting of EVM data into DOE’s Project Assessment and Reporting System (PARS) begins with CD-2 approval Earned value data reporting continues post CD-4 through completion of final closeout activities associated with tasks included in PMB 15

Integrated EVM / PM Acquisition Lifecycle Page 16 16

Integrated EVM / PM Acquisition Lifecycle Page 17 17

Integrated EVM / PM Acquisition Lifecycle Page 18 18

Page 19 Contractor Requirements Document (CRD) ◦ Prime contractor responsible for flow down requirements to subcontractors when the total project cost to the prime contractor is greater than $50 M 19

Page 20 Contractor Requirements Document (CRD) ◦ Prime contractor responsible for flow down requirements to subcontractors when the total project cost to the prime contractor is greater than $50 M ◦ Employ an EVMS compliant with EIA-748 and conduct annual selfsurveillance 20

Page 21 Contractor Requirements Document (CRD) ◦ Prime contractor responsible for flow down requirements to subcontractors when the total project cost to the prime contractor is greater than $50 M ◦ Employ an EVMS compliant with EIA-748 and conduct annual selfsurveillance ◦ Submit monthly project performance data via PARS in accordance with the “Contractor Project Performance Upload Requirements” document maintained by PM 21

Page 22 Contractor Requirements Document (CRD) ◦ Prime contractor responsible for flow down requirements to subcontractors when the total project cost to the prime contractor is greater than $50 M ◦ Employ an EVMS compliant with EIA-748 and conduct annual selfsurveillance ◦ Submit monthly project performance data via PARS in accordance with the “Contractor Project Performance Upload Requirements” document maintained by PM ◦ Report technical performance analysis and corrective action plans for variances to the project baseline objectives 22

Page 23 Contractor Requirements Document (CRD) ◦ Prime contractor responsible for flow down requirements to subcontractors when the total project cost to the prime contractor is greater than $50 M ◦ Employ an EVMS compliant with EIA-748 and conduct annual selfsurveillance ◦ Submit monthly project performance data via PARS in accordance with the “Contractor Project Performance Upload Requirements” document maintained by PM ◦ Report technical performance analysis and corrective action plans for variances to the project baseline objectives ◦ Develop and maintain a schedule that is resource-loaded with labor, material, and equipment costs to include unit prices and quantities, and identifies the critical path 23

Project Assessment and Reporting System (PARS) DOE’s Central Repository 24

Project Assessment and Reporting System (PARS) DOE’s Central Repository DOE contractors submit monthly EVMS data at the start of CD-2 for projects having a TPC greater than or equal to $50 M 25

Project Assessment and Reporting System (PARS) DOE’s Central Repository DOE contractors submit monthly EVMS data at the start of CD-2 for projects having a TPC greater than or equal to $50 M Data is uploaded per "Contractor Project Performance Upload Requirements" 26

DOE EVM-Related References Program and Project Management for the Acquisition of Capital Assets, DOE O 413. 3 B, Washington, DC: 11 -292010. DOE Guides: § § 413. 3 -7 A, Risk Management 413. 3 -10 A, Earned Value Management Systems 413. 3 -20, Change Control Management 413. 3 -21, Cost Estimating PM Standard Operating Procedures: § § EVMS Compliance Review Standard Operating Procedure (ECRSOP) EVMS & Project Analysis Standard Operating Procedure (EPASOP) External Independent Review (EIR) Standard Operating Procedure (EIRSOP) Independent Cost Review (ICR) and Independent Cost Estimate (ICE) Standard Operating Procedure (ICR/ICESOP) DOE Data Item Descriptions (DID): § Integrated Program Management Report (IPMR) § Contract Funds Status Report (CFSR) 27

U. S. Government Accountability Office (GAO) References Page 28 § GAO Cost Estimating and Assessment Guide, GAO-093 SP, March 2009 http: //www. gao. gov/products/GAO 09 -3 SP § GAO Schedule Assessment Guide, GAO-16 -89 G, Dec 22, 2015 http: //www. gao. gov/products/GAO-16 -89 G 28

National Defense Industrial Association (NDIA) Guides Page 29 § Planning & Scheduling Excellence Guide (PASEG) § EIA-748 Intent Guide § EVMS Acceptance Guide § EVMS Application Guide § EVMS Guideline Scalability Guide § Integrated Baseline Review (IBR) Guide § Surveillance Guide https: //www. ndia. org/divisions/ipmd/division-guides-and-resources 29

The concept of earned value has historical significance in providing insight into performance against the budget. Summary EVMS: Integrated project management tool Compliant to the EIA 748 industry standard. Output is used as a decision-making tool PARS is DOE’s central repository for capital asset project performance data and information. 30

For additional information, please browse our library at the following Project Management Earned Value Management websites. External: https: //www. energy. gov/projectmanagement/services-0/earned-valuemanagement Internal: https: //community. max. gov/display/DOEExternal/PM+EVM+Guidance