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Defense Acquisition Excellence Council (DAEC) Earned Value Management: The Path Forward

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. Outline. Situation Industry Concerns

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Defense Acquisition Excellence Council (DAEC) Earned Value Management: The Path Forward

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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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