Office of Performance Assessments and Root Cause Analyses (PARCA) 1APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

DoD EVM EVM Requirements, Application, Reporting, & Execution

Mr. John McGregorPARCA Director for EVM

David Nelson – Karen Kostelnik

DAU Acquisition Training Symposium – 04-04-17

Office of Performance Assessments and Root Cause Analyses (PARCA) 2APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

A Few Words

Office of Performance Assessments and Root Cause Analyses (PARCA) 3APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

Agenda

PARCA

DOD EVM Requirements

EVM Application

EVM Execution and Reporting

Q&A

Office of Performance Assessments and Root Cause Analyses (PARCA) 4APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017Office of Performance Assessments and Root Cause Analyses (PARCA)

OSD AT&L PARCA DAU Acquisition Training Symposium – 04-04-17

Office of Performance Assessments and Root Cause Analyses (PARCA) 5APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

PARCA

PARCA was brought into existence via the reforms in the Weapon Systems Acquisition Reform Act (WSARA) of 2009

Director, Performance Assessments and Root Cause Analyses (PARCA)

Mr. Gary R. Bliss

Mr. John McGregor

Deputy Director for Earned Value Management

Mr. Dave Cadman

Deputy Director for Root Cause Analyses

Dr. Peter Eggan

Deputy Director for Performance Assessments

Dr. Philip Anton

Deputy Director for Acquisition Policy

Analysis Center

Office of Performance Assessments and Root Cause Analyses (PARCA) 6APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

PARCA EVM Division Authorities

Office of Performance Assessments and Root Cause Analyses (PARCA) 7APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

Policy not Done in a Vacuum

Office of Performance Assessments and Root Cause Analyses (PARCA) 8APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017Office of Performance Assessments and Root Cause Analyses (PARCA)

EVM Requirements DAU Acquisition Training Symposium – 04-04-17

Office of Performance Assessments and Root Cause Analyses (PARCA) 9APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

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

Office of Performance Assessments and Root Cause Analyses (PARCA) 10APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

DoD Policy

Defense Federal Acquisition Regulation Supplement (DFARS)Supplement to the FAR; providing DoD-specific acquisition regulations (note: Services have additional supplemental guidance)

DODI 5000.02DoD instruction written to PM’s for policy regarding the management of acquisitions

Office of Performance Assessments and Root Cause Analyses (PARCA) 11APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

DFARS

Earned Value Management System (EVMS): DFARS 234.201

Cost or Incentive Contracts, $20M or more, EVMS mustcomply 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 DoDI5000.02; delay due to moratorium on rulemaking

Office of Performance Assessments and Root Cause Analyses (PARCA) 12APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

EVM System (EVMS) Notional View

EVM SYSTEM (i.e., system of systems)

EVM Engine

Accounting System

Purchasing System

MRP / IMS

• OUT: Internal

Reporting

Customer Reporting

Compliance Reporting

• IN: Customer Requirements

Contracting

EVMS Description Doc

Office of Performance Assessments and Root Cause Analyses (PARCA) 13APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

DoDI 5000.02

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…

Office of Performance Assessments and Root Cause Analyses (PARCA) 14APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

5000.02 EVM Language

Notable Items

“For ACAT I contracts…IPMR data will be delivered to the EVM Central Repository”

“The initiation of an over-target baseline or over-target schedulemust 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”

Office of Performance Assessments and Root Cause Analyses (PARCA) 15APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

Other Policy Initiatives

– Document out for Govt and Industry review; meeting with Industry to review comments April 25th; 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

Office of Performance Assessments and Root Cause Analyses (PARCA) 16APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017Office of Performance Assessments and Root Cause Analyses (PARCA)

EVM Application DAU Acquisition Training Symposium – 04-04-17

Office of Performance Assessments and Root Cause Analyses (PARCA) 17APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

DoDI 5000.02 EVM Applicability Determination

PARCA & Services

ACAT ID & IAMDAE/MDA

ServicesOther ACATs

SAE/CAE

Workscope (SOW)Contract TypeContract ValueDuration

If EVM does not apply then no deviation/waiver required; EVM not on contract

If EVM applies then EVM is placed on contract; PMO has option to seek waiver

No

Yes

Office of Performance Assessments and Root Cause Analyses (PARCA) 18APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

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

Office of Performance Assessments and Root Cause Analyses (PARCA) 19APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

MIL-STD-881C Update

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

Office of Performance Assessments and Root Cause Analyses (PARCA) 20APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

Pilot on EVM / CSDR Co-plans - ProcessTimeline

RFP Release

Post Award Meeting

180 Days Before RFP

90 Days Before RFP

60 - 45 Days Before RFP

Contract Award

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

Office of Performance Assessments and Root Cause Analyses (PARCA) 21APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017Office of Performance Assessments and Root Cause Analyses (PARCA)

EVM Reporting & Execution DAU Acquisition Training Symposium – 04-04-17

Office of Performance Assessments and Root Cause Analyses (PARCA) 22APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

EVM Central Repository (EVM-CR):

secure housing of authoritative ACAT I

level EVM data in DoD

Contract Funds Status Report (CFSR): to obtain funding and

O&E data

Integrated Program Management Report

(IPMR): cost and schedule performance data

EVM Reporting Requirements

Office of Performance Assessments and Root Cause Analyses (PARCA) 23APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

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

Office of Performance Assessments and Root Cause Analyses (PARCA) 24APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

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

Office of Performance Assessments and Root Cause Analyses (PARCA) 25APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

Other Initiatives

– PARCA working on update to guide to cover IBR and further explain relationship of metrics

– PARCA reviewing comments from Industry and Government

Office of Performance Assessments and Root Cause Analyses (PARCA) 26APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017

PARCA EVM Website:http://www.acq.osd.mil/evm/

PARCA EVM Email:osd.dodevm@mail.mil

PARCA Acquisition Exchange Program (AEP) provides a unique career-

development experience for high-caliber Government civilians or military

personnel interested in acquisition and/or EVM

http://www.acq.osd.mil/evm/aep.program.html

Office of Performance Assessments and Root Cause Analyses (PARCA) 27APPROVED FOR PUBLIC RELEASE DISTRIBUTIONUNLIMITED: 17-S-1240 March 21, 2017