Scheduling, and is to d es c rib e thEV MS guideli nes ... · EVMlOl Fundamentals of Earned Value Management . Lesson 1.2 - Earned Value Management System Guidelines RESOURCES . I

This lesson introduces the guidelines contained in Electronic Industries Alliance 748 {EIA-748), which are the methods used for formally approving Earned Value Management System {EVMS) compliance and the organizational responsibilities regarding EVMS surveillance.

Planning,The terminal learning objec tive for this lesson

Scheduling, andis to describe the EVMS guidelines.

Budgeting

This lesson includes two topics:

• Topic 1: Introduction to the EVMS EVMS Guidelines.Guidelines EJA-748

• Topic 2: Using the Guidelines Revisions and Data Accounting Maintenance Considerations

Analysis and Management

Reports

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This lesson introduces the guidelines contained in Electronic Industries Alliance 748 {EIA-748), which are the methods used for formally approving Earned Value Management System {EVMS) compliance and the organizational re · · ·

Long Description lanning,

The terminal learning obj duling, andis to describe the EVMS EVMS Guidelines, ElA- 748 document with five 1dgetingcategories : Organization; Planning, Scheduling, and

This lesson includes two Budgeting; Accounting Considera tions; Analysis and Management Reports; Revisions and Data Maintenance.

• Topic 1: Introduction to e EVMS EVMS Guidelines.Guidelines EJA-748

• Topic 2: Using the Guidelines Revisions and Data Accounting Maintenance Considerations


Reports

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In this topic, you will:

• Identify the purpose and benefits of the Earned Value Management System (EVMS) guidelines

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EVMlOl Fundamentals of Earned Value Management Lesson 1.2 - Earned Value Management System Guidelines RESOURCES I PRINT I HELP

EVM Process and the Guidelines

A rigorous system for planning, management control, and performance analysis is integral to successful EVM implementation. In this lesson, you will learn about the EVMS guidelines published in the EIA-748 standard, Earned Value Management Systems. The Government and contractor use these guidelines, which are essentially integrated management best practices, to help ensure rigorous planning, management control, and performance analysis on contracts .

If the Government decides to use EVM as a management tool * , it informs the contractor in the solicitation that the contractor must have an EVMS that is compliant with the EVMS guidelines. After contract award, the Government and contractor jointly use EVM as a management tool. The contractor defines their EVMS processes in a formal company EVMS description, and the Government reviews the contractor processes for on-going compliance with the EVMS guidelines. Revisions and Data Accounting

Maintenance Considerations Let's take a closer look at the EVMS guidelines. Understanding those guidelines better will help you understand EVM.

* EVM is required under certain conditions by the Analysis and Defense Federal Acquisit ion Regulat ion ManagementSupplem ent (DFARS). Reports

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EVM Process and the Guidelines

A rigorous system for planning, management control, and performance analysis is integral to successful EVM implementation. In this lesson, you will learn about the EVMS guidelines published in the EIA- 748 standard, Earned Value Management Systems. The Government and contractor use these guidelines, which are essentially integrated management best practices, to help ensure rigorous planning, management control, and performance analysis on contracts .

If the Government decide·.-------------------------.... management tool*' it inf Long Descrip tion

Planning,solicitation that the contr Scheduling, andthat is compliant with th EVMS Guidelines, EIA- 748 document with five categories :

Budgetingcontract award, the Gov Organization; Planning, Scheduling, and Budgeting; jointly use EVM as a man Accounting Considerations; Analysis and Management contractor defines their Reports ; Revisions and Data Maintenance.

company EVMS description, an e overnmen EVMS Guidelines, reviews the contractor processes for on -going EIA-748 compliance with the EVMS guidelines. Revisions and Data Accounting

Maintenance Considerations Let's take a closer look at the EVMS guidelines. Understanding those guidelines better will help you understand EVM.

* EVM is required under certain conditions by the Analysis and Def ense Federal Acquisition Regulation ManagementSuppleme nt (DFARS). Reports

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EVM and EVMS - A Comparison

What is the difference between EVM and EVMS, and what are the specific guidelines for a contractor's EVMS? Let's take a closer look by first comparing the two terms.

Acronym Term Description

EVM Earned Value Management

A program management tool that integrates technical, cost, and scheduling parameters

EVMS Earned Value

Management System The contractorspecific internal control sy stem(s ) used to meet EVM requirements

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EVMlOl Fundamentals of Earned Value Management

Lesson 1.2 - Earned Value Management System Guidelines RESOURCES I PRINT I HELP

Earned Value Management Systems

As an integrated management system, and key business system, a contractor's EVMS should:

• Plan the scope the work required for a contract, through its comple tion

• Assign authority and responsibility

• Integrate cost, schedule, and technical parameters of the work

• Measure performance objec tively, using EVM measurements

• Measure actual cos ts

• Analyze variance from the plan and iden ti fy risks

• Summarize and report performance data

• Forecast milestone achievement and contract completion events

• Forecast final contract costs and incorporate baseline revisions

The EVMS Guidelines address outcomes like these that a contractor's EVMS must provide.

Contractor

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EVMS Guidelines - Purpose

How does the Government make sure contractors use an effective EVMS when there are so many varied contractors with a diverse set of needs? By requiring contractors to use management systems that meet EVMS guidelines.

There are 32 guidelines, published in the EIA- 748 standard, Earned Value Management Systems. These 32 guidelines describe the desired outcomes of integrated performance management across five broad categories of activity. An EVMS compliant with the guidelines, and properly used, helps to ensure valid cost, schedule, and technical performance information for decision- making.

Industry periodically reviews the EIA- 748 standard and may issue revisions. I f the EIA- 748 standard is changed, DoD will review and determine if the document still meets the Government's needs.

EVMS guidelines:

EVMS Guidelines, • Describe the desired integrated EIA-748 management system outcom es

• Provide contractors with uniform guidance for their EVMS

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EVMS Guidelines - Benefit

The EVMS guidelines approach works because no EVMS can meet every management need for all companies - there are too many variations in organizations, productions, relationships, etc.

The 32 guidelines are broad enough to allow varied contractor applications, but specific enough to be reliable across contractors and scalable for programs of any size, large or small. Using these guidelines, contractors have the flexibili ty to develop and apply an adequate management system that meets their management needs and the Government's need for integrated cost, schedule, and technical performance management.

Each contractor describes their specific management system and how it addresses the EVMS guidelines in a company EVMS system description document.

EVMS guidelines do NOT EVMS Guidelines, prescribe a specific,

EIA-748 universal system.

You can review a summary of the 32 guidelines here: http: //www. acg. osd. mil/ evm/ guidelines. shtml


http://www



Knowledge Review

Earned Value Management System {EVMS) refers to the c ontractorspecific internal control system( s) used to meet Earned Value Management {EVM) requirements.

~ True

D False

Check Answer

This is a t rue statement. EVMS refers to the contractor-specific internal control system(s) used to meet EVM requirements.

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Knowledge Review

An Earned Value Management System (EVMS) is a general project management method that integrates technical, cost, and scheduling parameters.

True

~ False

Check Answer

This is a fa l se statement. Earned Value Management (EVM) is the general method, while EVMS refers to the specific system(s) contractors use to mee t EVM requirements .

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Knowledge Review

The Earned Value Management System {EVMS} guidelines prescribe the specific system that all contractors must use.

True

~ False

Check Answer

This is a fa l se statement. EVMS guidelines do not prescribe a specific system, they describe the desired outcomes.

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In this topic, you will:

• Describe the purpose and goals for Depar tment of De fense (DoD) Earned Value Management System (EVMS) compliance and surveillance reviews

• Describe organiza tional responsibilities that the Defense Contract Management Agency (DCMA), Program Management Office (PMO), and the supplier share regarding EVMS compliance reviews

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EVMlOl Fundam entals of Earned Value Managem ent


EVMS Guidelines • Maj or Categories

The EVMS guidelines describe five broad categories of activity:

Planning, Scheduling, and

Budgeting

EVMS Guidelines, EIA-748

Revisions and Data Accounting Maintenance Considerations


Reports

Remember, EVMS guidelines describe the desired outcomes for contrac tor management processes .

You must select e ach major category to m ove on. .!2

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I



EVMS Guidelines • Major Categories

The EVMS guidelines describe five broad categories of activity :


OrganizationBudgeting

This category covers the following processes:

• Define authorized work EVMS Guidelines,

EIA-748 • Identify program organization struc ture

Revisions and Data Accountin1 • Integrate EVMS subsystems with Work Maintenance Consideratic Breakdown Structure (WBS) and

Organizational Breakdown Structure (OBS)

• Identify organization/ function for overhead

• Integrate WBS and OBS, create control accountsAnalysis and

Management Reports

Remember, EVMS guidelines describe the desired outcomes for contractor management processes.


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EVMlOl Fundamentals of Earned Value Management Lesson 1.2 - Earned Va lue Management System Guidelines RESOURCES I PRINT I HELP

EVMS Guidelines - Maj or Categories


EVMS Guidelines. EIA-748

Revisions and Data Maintenance


Reports

Remember, EVMS guidelines describe the de outcomes for contract or management proc

Planning, Scheduling, and Budgeting


• Conduc t sequential scheduling o f work

• Identify in terim measures of progress, e.g. milestones, products, etc.

• Establish time-phased budget

• Identify significant cost elements within authorized budgets

• Identify discrete work packages

• Ensure all work package budgets and planning packages sum to control accounts

• Identify and control Level of Effort (LOE) budgets

• Establish overhead budgets by organizational element

• Identify management reserve and undistributed budget

• Reconcile program target cost goal with sum of all in ternal budget s

ou mus se ec eac ma1or category to move on. Q

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EVMS Guidelines - Major Categories



Budgeting Revisions a nd Data Maintenance


EVMS Guidelines. • Incorporate authorized changes in timely EIA-748 manner

Revisions and Data Accountin1 • Reconcile budgets with prior budgets Maintenance Consideratic

• Control retroactive changes

• Prevent all but authorized budge t changes

• Document changes to performance measurement baseline (PMB)


Reports

Remember, EVMS guidelines describe the desired ou tcomes for contractor management processes.

You must select each major cate gory to move on. Q




EVMS Guidelines - Maj or Categories

The EVMS guidelines describe five broad ca tegories of activity:

Accounti ng Considerat ions Planning,

Scheduling, and This ca tegory covers the following processes: Budgeting

• Record direct costs from accounting system

• Summarize direct costs into the Work Breakdown Structure (WBS) and the

EYMS Guidelines. Organizational Breakdown Structure (OBS)EIA-748 without allocation of one control account's

Revisions and Data Accountin1 costs to two or more elements Maintenance Consideratio

' • Record indirect costs

• Identify uni t costs, equivalent unit costs, or lot cos ts

• Ensure accurate material cost accumulation Analysis and by control accounts; EVM measurement at Management right time; full accountability of material

Reports

Remember, EVMS guidelines describe the desired outcomes for contractor management processes.

You must s elect each major category to move on. ll

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EVMS Guidelines - Major Categories

The EVMS guidelines describe five broad categories of activity: Analysis and Management Reports

Planning, This ca tegory covers the following processes: Scheduling, and

Budgeting • Review control accoun t monthly summary and identify cost variance (CV) and schedule variance (SV)

EVMS Guidelines. • Explain significant variances EIA-748

• Identify and explain indirect cost v ariances Revisions and Data Accountinf

• Summarize data elements and variances Maintenance Consideratio through Work Breakdown Structure (WBS)/Organizational Breakdown Structure (OBS) for management

• Implement management ac tions as result of EVM analysis Analysis and

Management • Revise estimate a t completion (EAC) based Reports on performance data; calculate v ariance at

completion (VAC) Remember, EVMS guidelines describe the desirecl._____________________.. outcomes for contractor management processes.

You must select each major cate gory to move on. Q




EVMS Guidelines • Major Categories

The EVMS guidelines describe five broad categories of activity :


Budgeting

Long Description

EVMS Guidelines, EIA-748 document with five categories : Organization; Planning, Scheduling, and Budgeting; Accounting Considerations; Analysis and Management

Revisions and Data Reports; Revisions and Data Maintenance. Maintenance


Reports

Remember, EVMS guidelines describe the desired outcomes for contrac tor management processes.


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Knowledge Review

Which of the following major categories of contractor management processes are identified in the Earned Value Management System (EVMS) guidelines?

Select all that apply.

~ Organization

~ Planning, scheduling, and budgeting

Information technology

~ Revisions and data maintenance

Check Answ er

All o f t he processes except for Inform ation technology are identified as major categories o f contractor management in the EVMS guidelines .

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EVMlOl Fundamentals of Earned Value Management Lesson 1.2 - Earned Va lue Management Syst em Guidelines RESOURCES I PRINT I HELP

EVMS Guidelines - Compliance Requi rements

The EVMS guidelines are designed to ensure the reliability of contractors' analyses, summaries, and reports. Contractors must comply with these guidelines, and must use EVM as an integrated management tool.

The DoD ensures contractor compliance with the 32 guidelines through two processes:

• Compliance Reviews

• Surveillance Reviews

DCMA performs these func tions for the DoD Components, except those Components that are also part of the Intelligence Community EVMS Guidelines,and are excluded from the requirement to delegate EVMS authorities EIA-748to DCMA.

The Navy Supervisor of Shipbuilding {SUPSHIP) has the authority to conduct EVMS surveillance activities, and the responsibility to coordinate with DCMA.

Contractor compliance with EVMS guidelines can mitigate management process risk.

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Compliance Review

Compliance Review and subsequent approval is the formal, independent recognition of a contractor's EVMS, including recognition that it meets the EVMS guidelines.

EVMS Guidelines, Compliance Review and subsequent approval is the initial recognition process ElA-748 tha t ensures the contractor has :

• Written an EVMS description that complies with the 32 guidelines

• Implemented the management processes as described in their EVMS descrip tion

• Adequately applied the management system on the contrac t being reviewed

A contracting officer's determination of approval from the compliance review indicates compliance and acceptance and that the EVMS produces reliable performance measurement data.

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Surveillance

Surveillance is a recurring process by which DoD ensures a contractor's EVMS remains compliant with the EVMS guidelines.

Surveillance is an ongoing review process in which the Goyemment EVMS Guidelines. evaluates the contractor's EVMS implementation against the guidelines, EIA-748 ensuring that the contractor's EVMS:

• Provides timely and reliable performance measurement information

• Remains compliant with the guidelines

• Provides timely indications of actual or potential problems

• Maintains baseline integrity

• Provides information that depicts actual conditions and trends

• Provides comprehensive v ariance analysis

• Discusses actions taken to mitigate risk and manage performance

• Is being implemented by a disciplined workforce that keeps the contractor's EVMS in compliance with the 32 guidelines




Surveillance

Surveillance is a recurring process by which OoO ensures a contractor's EVMS remains compliant with the EVMS guidelines.

Surveillance is an ongoing review process in which the~G~~~~::::::;:;:;t;_ ....,,... .lJEVMs Guidelineoyemmen __ __ ~ evaluates the contractor's EVMS implementation again ensuring that the contractor's EVMS:

• Provides timely and reliable performance measur

• Remains complian t with the guidelines

• Provides timely indica tions of ac tual or potential

• Maintains baseline integri ty

• Provides information that depict s actual conditio

• Provides comprehensive v ariance analysis

.,_.__,. Governm e nt

OCMA per forms these functions for the OoO Components, except those Components that are also part of the Intelligence Community and are excluded from the requirement to delega te EVMS authorities to OCMA.

The SUPSHIP has the aut hority to conduct EVMS surveillance activ ities, and the responsibility to coordinate with OCMA, for the contracts under his cognizance.

• Discusses actions taken to mitigate risk and ma1nl!l!l'l!"'l!l!!l"l'l!l'l'll!!l'll"'I!"'-------------,.

• Is being implemented by a disciplined workforce that keeps the contractor's EVMS in compliance with the 32 guidelines

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Knowledge Review

Which one of the following is a true stat ement regarding Compliance Review and subsequent approval?

The optional participation in yearly guideline reviews

~ A formal recognition that a contractor's wri tten Earned Value Management System (EVMS) meets the 32 guidelines

D A recurring process that assesses a contractor's continuing EVMS compliance

The series of reports produced by a fully compliant EVMS

Check Answer

Compliance Review and subsequent approval is a form al recognition t hat a contractor's written EVMS meets the 32 g uidelines.

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Knowledge Review

When Earned Value Management {EVM) is required on contracts, which of the following statements describes Earned Value Management System {EVMS) surveillance?

An optional Government process

A formal recognition that a contrac tor's written EVMS meets the 32 guidelines and workforce discipline enables con tinued compliance

~ A recurring process tha t assesses a contractor's continuing EVMS compliance

The series of reports produced by a fully compliant EVMS

Check Answer

Surveillance is a recu rri ng process t hat assesses a co nt ractor's continui ng EVMS co mpliance .

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Shared Organizational Surveillance Responsibilities

Several organizations are involved in surveillance. They are:

Remember, surveillance is an ongoing review process EVMS Guidelines. that ensures a contractor's EIA-748 EVMS remains compliant with the EVMS guidelines.

You must select each organization to move on. .!2

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Several organizations are involved in surveillance. The DCMA

The Defense Contract Management Agency {DCMA) :

• Assumes overall responsibility for EVMS initial and ongoing compliance

• Includes the EVMS Specialist, who has overall responsibili ty for ini tial and ongoing compliance of the contractor's EVMS

• Reports EVMS surveillance findings/results to the Program Management Office (PMO)

Note: The Intelligence Community is excluded from the requirement to delegate EVMS authorities to DCMA. The SUPSHIP has the authority to conduct EVMS surveillance activities, and the responsibility to coordinate with DCMA, for the contracts under his cognizance.

l


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Several organizations are involved in surveillance. ThE Contractor

The contractor:

• May conduct its own in ternal surveillance program

• Coordinates with the Contract Management Office ( CMO) on joint surveillance efforts, to be documented in a Joint Surveillance Plan

Note: While contractors are encouraged to conduct their own internal surveillance programs, these may not replace the Government surveillance process.

Remember, surveillance is an ongoing review process EVMS Guidelines,

EIA-748that ensures a contractor's EVMS remains compliant with the EVMS guidelines.

You must s elect each organization to move on. ll

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EVMlOl Fundamentals of Earned Value Management Lesson 1.2 - Earned Value Management Syst em Guidelines RESOURCES I PRINT I HELP


Several organizations are involved in surveillance. The PMO The Program Management Office (PMO) :

• Keeps the DCMA informed o f actions and matters that could affec t EVMS surveillance

• Helps resolve problems cited in surveillance reports

• Reviews, evaluates, and analyzes In tegrated Program Management Reports (IPMRs or older Contract Performance Reports (CPRs) i f still on contract) and brings issues t o the attention of the DCMA

• Apprises the DCMA of the adequacy and use fulness o f the surveillance reports, and, where necessary, sta tes required changes to reporting practices

• Obtains assistance from the Defense Contract Management Agency (DCMA) in resolving surveillance issues

You must select each


I




Sev eral organizations are involved in surveillance. They are:

Remember, surveillance is an ongoing review process EVMS Guidelines. that ensures a contractor's EIA-748 EVMS remains compliant with the EVMS guidelines.


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Program Manager 's Role

The PM ensures that EVM is applied appropriately to programs/contracts and relies on DCMA to conduct EVMS surveillance/compliance reviews. If there are concerns about the contractor's EVMS, the PM can work with DCMA to initiate an ad hoc surveillance interview or investigation.

In addition, the PM is responsible for following curren t OoD Programpolicy in applying EVM and IMS requirements to the proposed Managercontrac t by :

• Working with the contracting officer to ensure the appropria te Defense Federal Acquisition Regula tion Supplement (DFARS) solicitation clauses and con trac t clauses are incorporat ed in the solicitation and contract

J• Tailoring the !PMR reporting requirement s in the CORL

based on a realistic assessment of management information needs for effective program control

The PM also has a leadership role in ensuring that EVM is recognized as the management process. If the PM insists on using EVM as an integrated program management tool as part of routine business practices, this can help the contractor team recognize that management is using this data to make important decisions. The PM should also focus on effectively using EVM as part o f regular joint business and technical management reviews.




Knowledge Review

Which of the following organizations has overall responsibility for Earned Value Management System {EVMS) surveillance?

~ Defense Contract Management Agency {DCMA)

lJ Defense Contrac t Audit Agency Field Audi t Office {DCAA FAO)

] Program Management Office {PMO)

Contractor

Check Answer

DCMA performs these func tions for the DoD, except for Components that are also part of the Intelligence Communi ty which may conduct their own surveillance. The Navy Supervisor of Shipbuilding {SUPSHIP) also has the authority to conduc t EVMS surveillance for con tracts under his cognizance.

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Knowledge Review

What c an the program manager do to ensure compliance with Earned Value Management System (EVMS) guidelines?

Assume overall responsibility for EVMS surveillance

Determine the accuracy and reliability of the contrac tor's financial da ta

~ Work with the contracting officer to ensure the appropriate Defense Federal Acquisition Regulation Supplement (DFARS) solicitation clauses and con trac t clauses are incorporated in the solicita tion and contract

Serve as the procuring activity's technical subject matter expert

To ensure compliance with EVM Guidelines, the program manager should w ork w ith t h e contracting o fficer to ensure t he a ppropriate DFARS solicitation clauses a nd cont ract clauses are i ncorporated in t he solicitatio n and cont ract •

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Key DCMA EVMS related Contract Administration Services (CAS) Roles

DCMA has responsibilities pursuant to DFARS Part 242.302 and 234.201, including the following functions that relate to EVMS specifically:

• Review contractor EVMS plans and verify initial and continuing compliance with DoD EVMS criteria

• Ensure timely notification by the contractor of any anticipated overrun or underrun of the estimated cost under cost-reimbursement contracts

• Per form produc tion support, surveillance, and sta tus reporting, including timely reporting o f potential and actual slippages in contrac t delivery schedules

• Perform engineering surveillance t o assess compliance with contractual terms for schedule, cost , and technical performance in the areas of design, development , and production

• Support the program, product, and project offices regarding program reviews, program status, program performance and actual or anticipated program problems

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Key DCMA EVMS related Contract Administration Services (CAS) Roles, Cont.

DCMA was established to perform contract administration for the DoD. DCMA is expected to operate in an independent, consistent, transparent and collaborative manner while performing a wide variety of contract oversight functions . DCMA prioritizes and balances its contract management activities to reduce acquisition risk by focusing limited resources on the highest risk processes, products, and programs. DCMA's mission is best achieved when there is open communication and teaming between DCMA and its acquisition partners and when there is a full understanding of all program risks and acquisition objectives.

The PMO should maximize coordination with DCMA and make use of DCMA analyses and reports . In many cases, DCMA develops an independent monthly assessment on programs, which can include extensive EVM analysis . I f a PM desires support that is above and beyond DCMA policy and FAR/DFARS prescribed activities, then the PM can request a Memorandum of Agreement (MOA). There are three cases in which an MOA is required .

Program Manager



Key DCMA EVMS related Contract Administration Services (CAS) Roles, Cont.

DCMA was established to perform contract administration for the DoD. DCMA is expected to operate in an independent, consistent, transparent and collaborative manner while performing a wide variety of contract oversight functions . DCMA prioritizes and balances its contract management activities to reduce acquisition risk by focusing limited resources on the highest risk processes, products, and programs. DCMA's mission is best achieved when there is open communication and teaming between DCMA and its acquisition partners and when there is a full understanding of all program risks and acquisition objectives.

The PMO should maximize coordination with DCMA and make use of DCMA analyses and reports . In many cases, DCMA develops an independent monthly assessment on programs, which can include extensive EVM analysis . If a PM desires support that is above and beyond DCMA policy and FAR/DFARS prescribed activities, then the PM can request a Memorandum of Agreement (MOA) . There are three cases in which an MOA is required .

t hree cases

1. PMO desires one

2 . If the PMO is requesting activities/ support that is above and beyond the prescribed DCMA support in accordance with regulation and policy

n 3. The PMO is placing personnel at the contractor site where DCMA has r

cognizance and is the CAS authority. The program manager should only assign technical representatives to a contractor's facility as necessary, and technical representatives shall not perform DCMA contract administration duties outlined in FAR Section 42.302 (a) .


EVMlOl Fundam entals o f Earned Value Managem ent


Lesson Summary

Congratulations! You have completed the Earned Value Management System Guidelines lesson. You should now know the following key points about EVM:

• EVM is a project management method; EVMS re fers to the contractorspecific internal control system(s) used to meet EVM requirements

EVMS Guidelines, • The EVMS guidelines describe the desired integrated management EIA·748

system outcomes in a manner that allows con tractors the flexibili ty to develop and apply an EVMS that mee ts their management needs as well as EVM requirements

Plannina. Organization Schedulina. and

Bud&eting

• The major categories of contractor management processes identified in the EVMS guidelines are organization; planning, scheduling, and budgeting; accounting considerations; analysis and management reports; and revisions and data maintenance Revisions and Data

Ma11tenance Accoooting

Cons-iderations

Analysis and Managcn1cnt

Reports

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Lesson Summary

Congratulations! You have completed the Earned Value Management Syste m Guidelines lesson. You should now know the following key points about EVM:

• EVM is a project management method; EVMS refers to the contractorspecific internal control system(s) used to meet EVM requirements

EVMSGuidelines, • T~~~-~........'(;mentEIA-748

sJ Long Description xibili ty to d eds as

EVMS Guidelines, EIA- 748 document with five categories: Organization; Planning, Scheduling, and Budgeting; Accounting Considerations; Analysis and Management Reports ; Revisions and Data Maintenance.

• The major categories of contractor management processes identified in the EVMS guidelines are

EVMS Guidelines,organization; planning, scheduling, and budgeting; EIA-748 accounting considerations; analysis and management

Revisions and Data Accountingreports ; and revisions and data maintenance Maintenance Considerations

J Anatysis and Management

Reports

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Lesson Summary, Cont. 1

• DCMA ensures contractors comply with the EVMS guidelines first through compliance reviews and then through surveillance

EVMS Guidelines, • Compliance review ensures the contractor's EVMS, as detailed in a EIA-748

written description, complies with the 32 guidelines, while surveillance is an ongoing process in which the Government evaluates the contrac tor's implementation of its EVMS to ensure i t remains compliant with the 32 guidelines ¥"' I

• Surveillance is an ongoing review process in which the Government evaluates the con trac tor's EVMS implementation against the guidelines

• DCMA performs these functions for the DoD Components, except those EVMS Guidelines, EIA-748Components that are also part of the Intelligence Community and are

excluded from the requirement t o delegate EVMS authorities to DCMA

• The SUPSHIP has the authority to conduct EVMS surveillance activities, and the responsibility to coordinate with DCMA, for the contracts under his cognizance


EVMlOl Fundamentals of Earned Value Management Lesson 1.2 - Earned Va lue Management Syst em Guidelines RESOURCES I PRINT I HELP


• The OCMA is responsible for EVMS surveillance, but is supported by the:

PMO, which uses EVM to manage the contract and brings any issues noted to the attention of the OCMA

Contractor, which coordinates with the DCMA on joint surveillance efforts

• If an MOA exists between the PMO and the OCMA, it describes activities to achieve and maintain effective program surveillance; Memorandum it identifies the individuals responsible for performing those of activities; the PMO and DCMA work together to come up with Agreementthe terms and conditions documented in the MOA





• The DCMA is responsible for EVMS surveillance, but is supported by the:

• PMO, which uses EVM to manage the contract and brings any issues noted to the attention of the OCMA

ith the DCMA on

The three organizations in the IST are the : DCMA; PMO; and Contractor.

• If an MOA exists between the PMO and the DCMA, it describes activities to achieve and maintain effective program surveillance; Memorandum it identifies the individuals responsible for performing those of activities; the PMO and DCMA work together to come up with the terms and conditions documented in the MOA

Agreement

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Scheduling, and is to d es c rib e thEV MS guideli nes ... · EVMlOl Fundamentals of Earned Value Management . Lesson 1.2 - Earned Value Management System Guidelines RESOURCES . I