strength through industry & technology program management systems committee procurement division...

Strength through Industry & Technology

Program Management Systems Committee

Procurement Division Educational Seminar

31 March 2008Sarasota, Florida

Current Initiatives in Earned Value Management


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The State of EVM• Needs improvement • More training needed in the civilian

agencies• More aggressive DCMA has identified

problems • We acknowledge that we are a part of the

problem• It’s time to partner with our stakeholders

and identify new solutions


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PMSC Opportunities• Increase commonality and consistency of EVM implementation across

industry and government • Proactive and timely resolution of contractual EVMS implementation and

oversight issues– Incorrect/Conflicting EV Contract Requirements– FAR Clauses Cited– DFAR Clauses Omitted– H-Clauses and SOW That Direct System Violations

• Share industry and government best practices and lessons learned• Review and discuss industry/government EVM policy and guidance• Improve EVM skill set (people, processes and tools)• Work with educational institutions to develop EVM course curricula


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More Aggressive DCMA• Executive Agent for Earned Value Management Systems

– Responsible for Determining Initial and Ongoing EVMS Compliance for All DoD Suppliers (including Subs)

• DCMA Re-energizing EVM within Pentagon– Recent Review Results Have Heightened Interest

• Instituted Standard Review Methodology using new Standard Surveillance Operating Manual (SSOM)– Did not coordinate with industry before issuance– Issuing Contract Action Reports where they had not before


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What DCMA Has Seen In Plant• Systemic EVMS Weaknesses

– Across Programs, Suppliers and Buying Commands• CAM Knowledge Problems• Span of Control Issues• Inadequate Schedules• Data Integration and Integrity Problems• Undisciplined Work Authorization and Change Control

Processes• Poor Variance Analyses• No Formal Corrective Action Processes• Inadequate Estimate at Completion Procedures

• EVM Used to Report Data, Not as a Management Tool


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PMSC Initiatives• Encourage joint industry/government training:

– Scheduling - Contracting for EVM– EVM - IBR– Surveillance - Acceptance

• Engage the Program Management community in pursuit of our objectives:– DoD - Intelligence agencies– OMB - Civilian agencies – GAO - DAU and FAI– Professional Associations


Industrial Committee for Program Management • PMSC set up meeting with Dr. Finley

– Concern over lack of DoD participation in the PMSC by his direct staff relevant to EVM (i.e., System Engineering, Contracts, etc.) Other disciplines need to be at the table for more PM representation not just the EVM

– Open up the communication lines to offer better integration of activities

• Result of meeting – establishment of ICPM to improve Program Management of DoD programs– Provide a continuing forum for government-industry discussions and

exchange of views related to program and acquisition management activities.

– Discuss OSD and DoD Component policies that affect relationships with suppliers.

– Discuss emerging issues in government and industry that affect the readiness and capabilities of U.S. defense system producers.


• Mike Joyce (Chair) – Lockheed

Martin

• Dr. Jim Finley (Principal Govt

Participant) –Deputy Under

Secretary of Defense (Acquisition

& Technology)

• Dave Ahern – OUSD A&T

Director, Portfolio Systems

Acquisition

• Vice Adm David Architzel – Navy

• LGen Donald Hoffman – AF

• MGen Steve Reeves - Army

• Steve Goo – Boeing

• John Chino – Northrop Grumman

• Skip Burns – Raytheon

• Ron Hornish – Rockwell Collins

• Mike Blake – Textron

• Susan Dong – BAE Systems

• Bennett Croswell – Pratt & Whitney

• Bill Altman – Battelle (for Steve

Kelly)

• Neil Albert – NDIA PMSC

• Pete Wynne – NDIA PMSC


Contracts Subcommittee• In addition to including FAR or DFARS EVMS clauses on contracts,

contracting officers frequently include other provisions that often require suppliers to modify or depart from their standard, validated EVM Systems .

The use of a single EVMS by all program participants to manage large programs involving major subcontractors is viewed as non-compliant to the DFARS EVMS clause by DCMA.

– This approach also referred to as badgeless, virtual, or gray badge.

– Characterized by adoption of a single validated system to manage the effort (typically the prime’s EVMS), use of a common tool set, integrated schedules and performance reporting

• DCMA’s stated policy is to issue Corrective Action Request (s) against the contractor for following contract direction

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Contracts Subcommittee There is a widespread EVM knowledge gap among the contracting

communities

Evidence that EVM and Contracting experts are not collaborating, via IPTs, on the contractual application and use of EVMS during acquisition planning

Evidence of this is as follows:

Incorrect flow down and/or omission of EVM contractual requirements.

Improper contract direction forcing the contractor or subcontractor to violate their approved system.

Over application of EVM requirements

Improper use of Management Reserve (MR)

Integrated Baseline Review (IBR) timing

NDIA PMSC should establish an Industry / Government team to generate a briefing and communication/training package which can be delivered to all federal agencies and contractor organizations.


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Service Contracts Subcommittee•Charter for Subcommittee: Develop and recommend policy, process guidance, and/or training to support the implementation of EVMS on services type work. • EVM and PBSA are compatible and should be used together.

Both use a WBS to develop the requirements, cost and schedule and must have a defined method of measuring performance.

• Common Approach•Control Account for PMO

Work Package 1: Project ManagementResources: Fixed, Project Manager - One charge number, LOEWork Package 2: Project ControlResources: Fixed; Scheduler, Financial Analyst, EV Specialist, Data Entry Clerk - One charge number, LOE


Program Management Office

Project Management

Scheduling

Finance

Project Support Office

Project Management

“Common Approach”


Admin Mgt

Technical Direction / Mgt

Planning/ Statusing/ Analyzing/ Reporting

Monthly Processing

Verification &Validation

Training

CAM /User Support

Program Management Office

Project Management

OperationsSupport

Baseline Support

Project Support Office

EVMS Improvements

PMB Creation

PMB Modification

Tool & Utility Development

Research & Informal Train

Training Course Development

Conferences & Seminars

In-house

Company Mandated

“New Approach”


PM Basis of Estimate (BOE)• Administrative Management

– Based on percentage times the number of FTEs (5-8%) or

• Technical Direction / Management– Based on percentage of technical work (7-12%)

• Planning, Statusing, Analyzing, Reporting– Based on Should Costs, Business Processes, #

of CAPs, Risk, Scope Stability, EVM Maturity, etc


Should Costs by Role per CAP• Status input preparation: 60 min• Performance metrics data entry: 10 min• Status Review: 30 min• Data entry adjustments: 5 min• Preliminary report generation: 10 min • VAR analysis investigation & doc: 30 min• VAR Analysis Review & Validation: 15 min

• Report preparation & reconciliation: 10 min

*


Scheduling Subcommittee• Recognition that issues with the IMS are

broad and numerous• Planning:

– What are the essential building blocks needed and how are they acquired

– How is an IMS built

• Execution:• How is a schedule updated and status

presented


• QUESTIONS?

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strength through industry & technology program management systems committee procurement division...

Documents

program management pmsc

program management community

management tool

dod suppliers

industrygovernment evm

completion procedures

guidanceimprove evm

subsdcma reenergizing