EARNED VALUE M EARNED VALUE ANAGEMENT …

1 DoD TRIPWIRE METRICSCost EfficiencyCPI = BCWP/ACWPF avorable is > , Unfavorable is < EfficiencySPI = BCWP/BCWSF avorable is > , Unfavorable is < is Positive, Unfavorable is NegativeCost VarianceCV= BCWP ACWPCV % = (CV /BCWP) *100 Schedule VarianceSV= BCWP BCWSSV % = (SV /BCWS) *100 Variance at CompletionVAC= BAC EACOVERALL STATUS% Schedule = (BCWSCUM/BAC) *100% Complete= (BCWPCUM/BAC) *100% Spent= (ACWPCUM/BAC) *100 BASELINE EXECUTION INDEX(BEI) = A Schedule MetricBEI = Tasks with Actual Finish Date / (# of Baseline Tasks Scheduled to Finish Prior to Status Date +Tasks Missing Baseline Start or Finish Date)CRITICAL PATH LENGTH INDEX(CPLI) = A Schedule MetricCPLI = (CP Length(Time Now To Contract End)) + Total Float (To Contract End Baseline Finish)) /CP Length# ESTIMATE AT COMPLETION(EAC) = Actuals to Date+ [(Remaining Work)/(Performance Factor)]EACCPI= ACWPCUM+ [(BAC BCWPCUM) /CPICUM ]= BAC/CPICUM EACC omposite= ACWPCUM+ [(BAC BCWPCUM) /(CPICUM*SPICUM)]# TO COMPLETE PERFORMANCE INDEX(TCPI)TCPIEAC = Work Remaining /Cost Remaining = (BAC BCWPCUM)/ (EAC ACWPCUM)#To Determine a Contract Level TCPI or EAC.

2 You May Replace BAC with TAB To Determine the TCPI BAC or LRER eplace EAC with BAC or LREEARNEDVALUEMANAGEMENT GOLDCARD Management ReserveCost VarianceSchedule VarianceACWPBCWPBCWS$EACTimeNowCompletio n DatePMBTABBACTimeHit / Miss= Month s Tasks Completed ON or AHEAD / Month s Tasks Scheduled to CompleteTWTWTWTWDoD TRIPWIRE METRICSCost EfficiencyCPI = BCWP/ACWPF avorable is > , Unfavorable is < EfficiencySPI = BCWP/BCWSF avorable is > , Unfavorable is < is Positive, Unfavorable is NegativeCost VarianceCV= BCWP ACWPCV % = (CV /BCWP) *100 Schedule VarianceSV= BCWP BCWSSV % = (SV /BCWS) *100 Variance at CompletionVAC= BAC EACOVERALL STATUS% Schedule = (BCWSCUM/BAC) *100% Complete= (BCWPCUM/BAC) *100% Spent= (ACWPCUM/BAC) *100 BASELINE EXECUTION INDEX(BEI) = A Schedule MetricBEI = Tasks with Actual Finish Date / (# of Baseline Tasks Scheduled to Finish Prior to Status Date +Tasks Missing Baseline Start or Finish Date)CRITICAL PATH LENGTH INDEX(CPLI) = A Schedule MetricCPLI = (CP Length(Time Now To Contract End)) + Total Float (To Contract End Baseline Finish)) /CP Length# ESTIMATE AT COMPLETION(EAC) = Actuals to Date+ [(Remaining Work)/(Performance Factor)]EACCPI= ACWPCUM+ [(BAC BCWPCUM) /CPICUM ]= BAC/CPICUM EACC omposite= ACWPCUM+ [(BAC BCWPCUM) /(CPICUM*SPICUM)]# TO COMPLETE PERFORMANCE INDEX(TCPI)TCPIEAC = Work Remaining /Cost Remaining = (BAC BCWPCUM)/ (EAC ACWPCUM)#To Determine a Contract Level TCPI or EAC.

3 You May Replace BAC with TAB To Determine the TCPI BAC or LRER eplace EAC with BAC or LREEARNEDVALUEMANAGEMENT GOLDCARD Management ReserveCost VarianceSchedule VarianceACWPBCWPBCWS$EACTimeNowCompletio n DatePMBTABBACTimeHit / Miss= Month s Tasks Completed ON or AHEAD / Month s Tasks Scheduled to CompleteTWTWTWTWACRONYMSACWPA ctual Cost of Work PerformedCost of work accomplished = ACTUAL COSTAUWA uthorized Unpriced WorkWorkcontractually approved, but not yet negotiated / definitizedBACB udget At CompletionTotal budget for total contract thru any given level BCWPB udgeted Cost of Work PerformedValue of work accomplished = EARNED VALUEBCWSB udgeted Cost of Work ScheduledValue of work planned to be accomplished= PLANNED VALUECAC ontrol AccountLowest CWBS element assigned to a single focal point to plan & controlscope / schedule / budgetCBBC ontract Budget BaseSum of NCC & AUWEACE stimate At CompletionEstimate of total Costfor total contract thru any given levelmay be generated by Ktr, PMO, DCMA, etc.

4 = EACKtr/ PMO / DCMALREL atest Revised EstimateKtr s EAC or EACKtrMRManagement ReserveBudget withheld by Ktr PM for unknowns / risk managementNCCN egotiated Contract CostContract PriceMinus profit or fee(s)OTBOver Target BaselineSum of CBB & recognized overrunPACP rice At CompletionNCC Plus Profit or Fee(s)PMBP erformance Measurement BaselineContract time-phased budget planPPPlanning PackageFar-term CA activities not yet defined into WPsSLPPS ummary Level Planning PackageFar-term activities not yet defined into CAsTABT otal Allocated BudgetSum of all budgets for work on contract = NCC, CBB, or OTBTCPITo Complete Performance IndexEfficiency needed from time now to achieve a BAC, EAC, or LREUBU ndistributed BudgetBroadly defined activities not yet distributed to CAs WPWork PackageNear-term, detail-planned activities within a CAEVM POLICY:DoDI , Encl 4.

5 Table 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 & EARNED VALUE Management Implementation Guide (EVMIG). EVMS is discouraged on Firm-Fixed Price & Time & Material Contracts; & LOE activities regardless of CONTRACTING REQUIREMENTS:FAR EVM Clauses NOT FORDOD for Solicitation = Pre-Award IBR or = Post Award IBR for Solicitation & ContractFORDOD $20M DFARS CLAUSES NOTICEOFEVMS FORSOLICITATIONS EVMS FORSOLICITATIONS& CONTRACTSCONTRACTPERFORMANCEREPORT DI-MGMT-81466A*5 FORMATS= WBS, ORGANIZATION, BASELINE, STAFFING, EXPLANATIONINTEGRATEDMASTERSCHEDULE DI-MGMT-81650*MANDATORYFORDOD EVMS CONTRACTSINTEGRATEDBASELINEREVIEW MANDATORYFORALLEVMS CONTRACTS* See the EVMIG for CPR & IMS tailoring guidanceManagement ReserveWork PackagesPlanning PackagesOVERRUNAUWC ontrol Accounts NCCU ndistributedBudgetOTBCBBTABP rofit / Fees PMB Summary Level Planning Packages Contract PriceACRONYMSACWPA ctual Cost of Work PerformedCost of work accomplished = ACTUAL COSTAUWA uthorized Unpriced WorkWorkcontractually approved.

6 But not yet negotiated / definitizedBACB udget At CompletionTotal budget for total contract thru any given level BCWPB udgeted Cost of Work PerformedValue of work accomplished = EARNED VALUEBCWSB udgeted Cost of Work ScheduledValue of work planned to be accomplished= PLANNED VALUECAC ontrol AccountLowest CWBS element assigned to a single focal point to plan & controlscope / schedule / budgetCBBC ontract Budget BaseSum of NCC & AUWEACE stimate At CompletionEstimate of total Costfor total contract thru any given levelmay be generated by Ktr, PMO, DCMA, etc. = EACKtr/ PMO / DCMALREL atest Revised EstimateKtr s EAC or EACKtrMRManagement ReserveBudget withheld by Ktr PM for unknowns / risk managementNCCN egotiated Contract CostContract PriceMinus profit or fee(s)OTBOver Target BaselineSum of CBB & recognized overrunPACP rice At CompletionNCC Plus Profit or Fee(s)

7 PMBP erformance Measurement BaselineContract time-phased budget planPPPlanning PackageFar-term CA activities not yet defined into WPsSLPPS ummary Level Planning PackageFar-term activities not yet defined into CAsTABT otal Allocated BudgetSum of all budgets for work on contract = NCC, CBB, or OTBTCPITo Complete Performance IndexEfficiency needed from time now to achieve a BAC, EAC, or LREUBU ndistributed BudgetBroadly defined activities not yet distributed to CAs WPWork PackageNear-term, detail-planned activities within a CAEVM POLICY:DoDI , Encl 4. Table 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.

8 Additional Guidance in Defense Acquisition Guidebook & EARNED VALUE Management Implementation Guide (EVMIG). EVMS is discouraged on Firm-Fixed Price & Time & Material Contracts; & LOE activities regardless of CONTRACTING REQUIREMENTS:FAR EVM Clauses NOT FORDOD for Solicitation = Pre-Award IBR or = Post Award IBR for Solicitation & ContractFORDOD $20M DFARS CLAUSES NOTICEOFEVMS FORSOLICITATIONS EVMS FORSOLICITATIONS& CONTRACTSCONTRACTPERFORMANCEREPORT DI-MGMT-81466A*5 FORMATS= WBS, ORGANIZATION, BASELINE, STAFFING, EXPLANATIONINTEGRATEDMASTERSCHEDULE DI-MGMT-81650*MANDATORYFORDOD EVMS CONTRACTSINTEGRATEDBASELINEREVIEW MANDATORYFORALLEVMS CONTRACTS* See the EVMIG for CPR & IMS tailoring guidanceManagement ReserveWork PackagesPlanning PackagesOVERRUNAUWC ontrol Accounts NCCU ndistributedBudgetOTBCBBTABP rofit / Fees PMB Summary Level Planning Packages Contract PriceEVM Home Page = Address: September 2010 EVM Home Page = Address: September 2010