DoD EVM. EVM Requirements, Application, Reporting, & Execution. Mr. John McGregor PARCA Director for EVM. David Nelson Karen Kostelnik
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1 1 DAU Acquisition Training Symposium DoD EVM EVM Requirements, Application, Reporting, & Execution Mr. John McGregor PARCA Director for EVM David Nelson Karen Kostelnik
2 A Few Words APPROVED FOR PUBLIC RELEASE DISTRIBUTION 2
3 3 PARCA DOD EVM Requirements EVM Application EVM Execution and Reporting Q&A Agenda
4 OSD AT&L PARCA DAU Acquisition Training Symposium APPROVED FOR PUBLIC RELEASE DISTRIBUTION 4
5 5 PARCA Director, Performance Assessments and Root Cause Analyses (PARCA) Mr. Gary R. Bliss Mr. John McGregor Mr. Dave Cadman Dr. Peter Eggan Dr. Philip Anton Deputy Director for Earned Value Management Deputy Director for Root Cause Analyses Deputy Director for Performance Assessments Deputy Director for Acquisition Policy Analysis Center PARCA was brought into existence via the reforms in the Weapon Systems Acquisition Reform Act (WSARA) of 2009
6 PARCA EVM Division Authorities APPROVED FOR PUBLIC RELEASE DISTRIBUTION 6
7 Policy not Done in a Vacuum APPROVED FOR PUBLIC RELEASE DISTRIBUTION 7
8 EVM Requirements DAU Acquisition Training Symposium APPROVED FOR PUBLIC RELEASE DISTRIBUTION 8
9 9 Federal Policy Office of Management and Budget (OMB) Establishes policy for planning, budgeting, acquisition and management of Federal for information technology (IT) and other capital investments Federal Acquisition Regulation (FAR) Primary regulation for use by all Federal Executive agencies in their acquisition of supplies and services with appropriated funds
10 10 DoD Policy Defense Federal Acquisition Regulation Supplement (DFARS) Supplement to the FAR; providing DoD-specific acquisition regulations (note: Services have additional supplemental guidance) DODI DoD instruction written to PM s for policy regarding the management of acquisitions
11 11 DFARS Earned Value Management System (EVMS): DFARS Cost or Incentive Contracts, $20M or more, EVMS must comply with EIA-748 guidelines (no system validation) Cost or Incentive Contracts, $100M or more, EVMS must be determined by Cognizant Federal Agency to comply with the EIA-748 guidelines pending update that reflects polices in new DoDI ; delay due to moratorium on rulemaking
12 12 EVM System (EVMS) Notional View IN: Customer Requirements Contracting Accounting System Purchasing System MRP / IMS EVM SYSTEM (i.e., system of systems) EVM Engine EVMS Description Doc OUT: Internal Reporting Customer Reporting Compliance Reporting
13 13 DoDI Earned Value Management Requirements Table 8: EVM Application Requirements (reflects $100M EVMS threshold) Table 9: EVM Reporting (maintains $50M reporting tailoring threshold) Apparently it s new
14 14 Notable Items EVM Language For ACAT I contracts IPMR data will be delivered to the EVM Central Repository The initiation of an over-target baseline or over-target schedule must be approved by the Government program manager For indefinite delivery, indefinite quantity (IDIQ) contracts Inclusion of EVM requirements is based on the estimated ceiling of the total IDIQ contract It is then applied to the individual task/delivery orders, or group(s) of related task/delivery orders, that meet or are expected to meet the conditions of contract type, value, duration, and work scope
15 15 Other Policy Initiatives Document out for Govt and Industry review; meeting with Industry to review comments April 25 th ; EVMSIG team meetings in May Navy initial draft document completed; purpose of document is to house DoD EVM guidance and interpretation in a singular place Corporate industry role for EVM Central Repository users now implemented Memo signed out by DoD allowing for the ability to share EVM system compliance information across Federal Agencies
16 EVM Application DAU Acquisition Training Symposium APPROVED FOR PUBLIC RELEASE DISTRIBUTION 16
17 17 DoDI EVM Applicability Determination PARCA & Services ACAT ID & IAM DAE/MDA Services Other ACATs SAE/CAE Workscope (SOW) Contract Type Contract Value Duration No If EVM does not apply then no deviation/waiver required; EVM not on contract Yes If EVM applies then EVM is placed on contract; PMO has option to seek waiver
18 18 WBS & MIL-STD-881C From the DoD EVM System Interpretation Guide: The WBS is a product-oriented, hierarchical breakdown of the program requirements The WBS includes all program elements (e.g., hardware, software, services, data, or facilities) and is decomposed to lower levels for planning, budgeting, scheduling, cost accounting, work authorization, measuring progress, and management control purposes
19 19 Appendices being updated: Aircraft Systems Electronic Systems Missile Systems Ordnance Systems Space Systems Surface Vehicle Systems Unmanned Aircraft Systems AIS Systems Common WBS Elements No change Sea Systems Unmanned Maritime Systems Launch Systems MIL-STD-881C Update
20 20 Pilot on EVM / CSDR Co-plans - Process Timeline 180 Days Before RFP 90 Days Before RFP Days Before RFP RFP Release Contract Award Post Award Meeting Implementation Initial requirements in Acq Strat and identified for RFP; setup program in CADE modules Develop co-plan, submit and review of co-plan, initial CWIPT meeting Co-plan update, Service review, PARCA/CAPE director review, plan finalization Signed co-plan included in RFP Negotiate final plan information and EVM requirements (SOW and CDRLs) Hold Post-Award Conference and addressee questions including WBS elements Plan reporting and maintenance
21 EVM Reporting & Execution DAU Acquisition Training Symposium APPROVED FOR PUBLIC RELEASE DISTRIBUTION 21
22 22 EVM Reporting Requirements Integrated Program Management Report (IPMR): cost and schedule performance data Contract Funds Status Report (CFSR): to obtain funding and O&E data EVM Central Repository (EVM-CR): secure housing of authoritative ACAT I level EVM data in DoD
23 EVM-CR Requirement ACAT 1A (MAIS), 1C &1D (MDAP) Programs with EVM reporting requirements on contract are required to submit to the PARCA EVM-Central Repository Standard Reporting Requirement: Cost and Schedule data expected monthly (IPMR) Contract Funds Status Report (CFSR) expected quarterly APPROVED FOR PUBLIC RELEASE DISTRIBUTION 23
24 24 IPMR Future Data, not Formats Reduce duplication of data in the IPMR Formats Update data transfer mechanism (i.e., XML to JSON) Improve traceability between cost and schedule data
25 25 Other Initiatives PARCA working on update to guide to cover IBR and further explain relationship of metrics PARCA reviewing comments from Industry and Government
26 26 PARCA EVM Website: PARCA EVM PARCA Acquisition Exchange Program (AEP) provides a unique careerdevelopment experience for highcaliber Government civilians or military personnel interested in acquisition and/or EVM
27 27 APPROVED FOR PUBLIC RELEASE DISTRIBUTION
DoD EVM POLICY Using EVM and Agile Together
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