Project Execution

NCC

OTB CBB

TAB Profit / Fees

Contract Price Earned Value Management

‘Gold Card’‘Gold Card’

Management Reserve

OVERRUN AUW

Control Accounts

Undistributed Budget

OTB

PMB

Summary Level Planning Packages

Management Reserve

EAC

PMB

TAB BAC

TERMINOLOGY NCC Negotiated Contract Cost Contract price less profit / fee(s) AUW Authorized Unpriced Work Work contractually approved, but not yet negotiated / definitized CBB Contract Budget Base Sum of NCC and AUW OTB O T t B li S f CBB d i d

Work Packages Planning Packages

g g g

Cost Variance

Schedule Variance

ACWP

BCWS

$

OTB Over Target Baseline Sum of CBB and recognized overrun 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 MR Management Reserve Budget withheld by Ktr PM for unknowns / risk management 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 WP W k P k N t d t il l d ti iti ithi CAVARIANCES Favorable is Positive Unfavorable is Negative

BCWP

Time Now

Completion Date

Time

WP Work Package Near-term, detail-planned activities within a CA PP Planning Package Far-term CA activities not yet defined into WPs 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 ACWP Actual Cost of Work Performed Cost of work accomplished = ACTUAL COST 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 LRE Latest Revised Estimate Ktr’s EAC or EACKtr SLPP S L l Pl i P k F t ti iti t t d fi d i t CA

VARIANCES Favorable is Positive, Unfavorable is Negative Cost Variance CV = BCWP – ACWP CV % = (CV / BCWP) *100 Schedule Variance SV = BCWP – BCWS SV % = (SV / BCWS) * 100 Variance at Completion VAC = BAC – EAC

OVERALL STATUS % Schedule = (BCWSCUM / BAC) * 100 % Complete = (BCWPCUM / BAC) * 100 SLPP Summary Level Planning Package Far-term activities not yet defined into CAs

TCPI To Complete Performance Index Efficiency needed from ‘time now’ to achieve an EAC

EVM POLICY: DoDI 5000.02, Encl 4. Table 5. EVMS in accordance with ANSI/EIA-748 is required for cost or incentive contracts, subcontracts, intra-government work agreements, & other agreements valued > $20M (Then-Yr $). EVMS 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 discouraged on Firm-Fixed Price, Level of Effort, & Time & Material efforts regardless of cost.

DoD TRIPWIRE METRICS Favorable is > 1.0, Unfavorable is < 1.0 Cost Efficiency CPI = BCWP / ACWP Schedule Efficiency SPI = BCWP / BCWS

p ( CUM ) % Spent = (ACWPCUM / BAC) * 100

BASELINE EXECUTION INDEX (BEI) (Schedule Metric) BEI = # of Baseline Tasks Actually Completed / # of Baseline Tasks Scheduled for Completion

EVM CONTRACTING REQUIREMENTS: Non-DoD FAR Clauses – Solicitation – 52.234-2 (Pre-Award IBR) or 52.234-3 (Post Award IBR)

– Solicitation & Contract – 52.234-4 DoD( ≥ $20M) DFAR Clauses - 252.234-7001 for solicitations and 252.234-7002 for solicitations & contracts

Contract Performance Report – DI-MGMT-81466A * 5 Formats (WBS, Organization, Baseline, Staffing & Explanation) Integrated Master Schedule – DI-MGMT-81650 * (Mandatory for DoD EVMS contracts) Integrated Baseline Review (IBR) – Mandatory for all EVMS contracts

BEI = # of Baseline Tasks Actually Completed / # of Baseline Tasks Scheduled for Completion

CPLI = (Critical Path Duration + Float Duration (to baseline finish)) / Critical Path Duration CRITICAL PATH LENGTH INDEX (CPLI) (Schedule Metric)

TO COMPLETE PERFORMANCE INDEX (TCPI) # § TCPIEAC = Work Remaining / Cost Remaining = (BAC – BCWPCUM) / (EAC – ACWPCUM)

ESTIMATE AT COMPLETION # EAC A t l t D t + [(R i i W k) / (Effi i F t )]

EVM Home Page = https://acc.dau.mil/evm eMail Address: [email protected] DAU POC: (703) 805-5259 (DSN 655)

Revised January 2009

g ( ) y * See the EVMIG for CPR & IMS tailoring guidance.EAC = Actuals to Date + [(Remaining Work) / (Efficiency Factor)]

EACCPI = ACWPCUM + [(BAC – BCWPCUM) / CPICUM ] = BAC / CPICUM EACComposite = ACWPCUM + [(BAC – BCWPCUM) / (CPICUM * SPICUM)] # To Determine a Contract Level TCPI or EAC; You May Replace BAC with TAB § To Determine the TCPI BAC or LRE Replace EAC with BAC or LRE