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Defense Acquisition Excellence: Enhancing Earned Value Management

Explore the industry and government concerns regarding Earned Value Management (EVM) and the path forward for improvement. Industry issues include conflicting requirements, while government faces challenges in application diversity. The approach involves utilizing the DAEC as a platform for discussion and establishing joint teams for assessment and solutions.

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Defense Acquisition Excellence: Enhancing Earned Value Management

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  1. Defense Acquisition Excellence Council (DAEC) Earned Value Management: The Path Forward Nancy L. Spruill Director, Acquisition Resources and Analysis Office of the Under Secretary of Defense (Acquisition, Technology, and Logistics) October 7, 2003

  2. Outline • Situation • Industry Concerns • Government Issues • The Path Forward

  3. Situation • Industry assumed “ownership” of EVM in 1996 • Industry expressed concerns in April 2003 letter • Government discussed industry concerns and government issues at July 2003 meeting

  4. Industry Concerns • Conflicting or contradictory contractual requirements • Duplicative management systems reviews • Unique system surveillance oversight activities • Proliferation of independent approaches—reminiscent of past atmosphere • Not consistent with industry-owned program management EVM systems • Incongruent with goal of streamlining acquisition process • DCMA experience base and resources declining • Avenues of communication and problem resolution at OSD level have eroded

  5. Government Issues • Application/implementation diverse in industry (among and within companies) • Industry still developing infrastructure to support “ownership” (interpretative guide, audit credentials, etc.) • EVM still being institutionalized as an integral program management tool • Varying levels of confidence in reported data • In some cases, government program managers taking actions as a result of industry’s maturity issues

  6. The Path Forward • Use DAEC as a senior-level forum to continue dialogue and share improvement ideas • Establish joint government/industry working-level team to assess issues/ concerns and recommend solutions • Identify team members – e-mail names and contact information to deborah.tomsic@osd.mil

  7. Back-Up Slides

  8. Pre-1996 Cost/Schedule Control Systems (C/SCS) 35 C/SCS criteria (DoD 5000 policy) Government “ownership” Financial orientation; viewed primarily as a reporting tool 1996-Present Earned Value Management Systems (EVMS) 32 EVMS guidelines (ANSI/EIA-748) Industry “ownership” Program management orientation, i.e., an integrated program management tool EVM Then and Now

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