Earned Value Management (EVM) Reference Card

1. Earned Value Management (EVM) Reference Card Contract Price (Project Price) Fee/Profit (no Project analogy) TAB EAC NCC Plus Overrun CBB TAB (CBB or PBB) OTB PBB AUW BAC VAC Management Reserve (MR) MR PMB ETC Performance Measurement Baseline (PMB) UB CAs PPs WPs SV *NASA Contractor & In-house Project Hierarchy CV Actual Costs (ACWP) $ EVM Terminology ACWP Actual Cost of Work Performed (Actual cost incurred for work accomplished during a given period) AUW Authorized Un-priced Work (Work contractually approved, but not yet negotiated) BAC Budget At Completion (Total planned value for the project) BCWS Budgeted Cost for Work Scheduled (Planned Value - budget assigned to the planned scheduled work to be accomplished) BCWP Budgeted Cost for Work Performed (Earned Value - budget value for the physical work accomplished) CA Control Account (Management control point to plan and control scope, schedule, and budget) CBB Contract Budget Baseline (Total negotiated cost plus AUW) EAC Estimate At Completion (Expected total cost of the project when the scope of work will be completed) ETC Estimate To Complete (Expected cost needed to complete all remaining work) MR Management Reserve (Budget withheld for unknowns / risk management) NCC Negotiated Contract Cost (Contract price minus profit or fees or project value for in-house work) OTB Over Target Baseline (Sum of CBB and recognized overrun) PBB Project Budget Baseline (Same as CBB for in-house projects) PMB Performance Measurement Baseline (Time-phased budget plan) PP Planning Package (Far term effort within a CA not yet defined into WPs) TAB Total Allocated Budget (Sum of all budgets for work on project/contract = NCC, CBB/PBB, or OTB) TCPI To Complete Performance Index (Efficiency needed from ‘status date’ to achieve an EAC or BAC) UB Undistributed Budget (Broadly defined effort not distributed into CAs) WP Work Package (Near term effort detailed planned within a CA) Time Now Projected Slippage Planned Value (BCWS) Earned Value (BCWP) Time Variances: (Favorable is Positive, Unfavorable is Negative) Cost Variance (CV): CV = BCWP – ACWP CV% = CV / BCWP x 100 Schedule Variance (SV): SV = BCWP – BCWS SV% = SV / BCWS x 100 Variance at Completion (VAC): VAC = BAC – EAC Performance Indices: (Favorable is > 1.0, Unfavorable is < 1.0) Cost Performance Index (Efficiency): CPI = BCWP / ACWP Schedule Performance Index (Efficiency): SPI = BCWP / BCWS To Complete Performance Index (TCPI) TCPIEAC = Work Remaining / Cost Remaining = (BAC – BCWPCum) / (EAC – ACWPCum) TCPIBAC = Work Remaining / Budget Remaining = (BAC – BCWPCum) / (BAC – ACWPCum) Status Percentage % Complete = BCWPCum / BAC x 100 % Spent = ACWPCum / BAC x 100 % Schedule = BCWSCum / BAC x 100 • NASA Policy & Requirements for the Application of EVM • NASA EVM requirements are found in NPR 7120.5, NASA Program and Project Management Processes and Requirements and NPR 7120.7, NASA Information Technology and Institutional Infrastructure Program and Project Management Requirements. Policy is contained in NASA FAR Supplement (NFS) 1834.201. NASA EVM requirements are predicated on the principles and guidelines in ANSI/EIA-748, Industry Guidelines for Earned Value Management Systems. • NPR 7120.5 requires the project EVM approach to be in place by Key Decision Point (KDP) C (the conclusion of Preliminary Design Review (PDR)) and implemented in Phase C (Final Design and Fabrication) through KDP E (Flight Readiness Review (FRR) or Launch Readiness Review (LRR)). Additionally, project performance reporting must begin within 60 days after the start of Phase C. To meet this timeline, it is highly recommended that projects begin implementation planning during Phase B (Preliminary Design and Technology Completion). • NPR 7120.5 also requires that NASA programs and projects use EVM on projects and contracts that meet the criteria that follow. • For projects with a total anticipated final value of $20 million or more, EVM principles should be applied, as defined by ANSI/EIA-748, Earned Value Management Systems. • If the project's primary NASA Center has a validated EVMS, the project uses that system rather than the EVM principles application approach. • For development contracts and subcontracts valued at or between $20M and $50M, the contractor is expected to have an EVMS that complies with the 32 guidelines in the ANSI/EIA-748 Standard. • For development contracts and subcontracts valued at $50M or more, the contractor is required to have an EVMS that has been formally validated by the Government. • EVM is not required on contracts for non-developmental engineering support services, steady state operations, basic and applied research, and routine services such as janitorial services or grounds maintenance services. In these cases, application of EVM is at the discretion of the program or project manager (PM). • NASA projects that do not have a validated EVMS will use the seven management principles that are contained in ANSI/EIA-748 standard. Estimate at Completion (EAC) = ACWP + ETC EAC = Actuals to Date + Work Remaining / Performance Factor EACComposite= ACWPCum + (BAC – BCWPCum) / (CPICum x SPICum) EACCPI = BAC / CPICum Common EAC Calculations • Favorable Causes: • Poor initial planning or estimating • Technical breakthrough • Cost of labor & Material lower than plan • Front end loading • Method of earning BCWP • Inaccurate costing methods • Unfavorable Causes: • Poor initial planning or estimating • Technical problem • Cost of labor or material higher than plan • Inflation • New labor contracts • Work stoppage Revised July 2011 NASA EVM Website: http://evm.nasa.gov