Improving Program Performance at FAA

1. Improving Program Performance at FAA

2. EVM at FAA • FAA EVM Policy and guide established August 2005 (modified in January 2006) • FAA goal is to manage entire program using EVMS in accordance with ANSI/EIA 748 • Manage/measure all resources • Requires changes in behavior by all parties • FAA EVM differs from legacy approach • Program level, not just contractors • Will not change existing contracts

3. FAST Home Page: http://fast.faa.gov

4. EVM Transformation Overview “Flag”

5. EVM Council • Formed as a continuation of the program management processes effort • Co-Chaired by ATO-A and AIO • Membership includes: • ATO Service Unit representatives • Non-ATO Lines of Business implementing EVM • AIO representatives • CFO representatives

6. EVM Transformation – Goals for 2006 • EVM Council tracking POA&M status – most targets due in 2006 – if achieved, flag will turn to mostly yellow and green. • FAA to assess its financial processes against the ANSI standard & update its flag • FAA to issue a Layperson’s guide to EVM • FAA to issue a manager’s guide to using EVM • Technical Training to continue and will be supplemented by executive awareness training • EVM toolkit study

7. EVM Transformation – Goals for 2007 • Full EVM implementation by end of FY 07. • EVM part of Program Managers toolkit. • Full EVM reporting for all major investments. • EVM scores on Exhibit 300s are all “4” or “5”. • Use of EVM makes a major difference in ability of FAA programs to stay on track and within budget. • Use of EVM contributes to FAA “NAS Modernization Program” being removed from the GAO High Risk List.

8. FAA Contractor Meeting Follow-up Participants • Lockheed Martin* • Raytheon* • Harris* • Parsons Infrastructure and Technology Group* • Northrop Grumman* • Mitre • Computer Sciences Corporation* • BAE Systems* * Follow-up meeting already held

9. Follow-up Meeting Guidelines • Attendees requested to return for individual meetings over next three months with EVM team and selected Program Managers and Contracting Officers • Present Management Overview • Company response to FAA initiative • EVM System acceptance applicability to FAA or Plan to achieve acceptance (ref. NDIA Systems Acceptance Guide) • How EVM is used on current FAA contracts • Best practices (e.g., subcontract management) • Improvement opportunities

10. Current Review • FAA Acquisition Management System Policy being reviewed with recommendations being made to incorporate: • Baseline management guidance • OMB Exhibit 300 reporting • Exhibit 300 format used to report monthly program performance • July 2006 EVM FAR clause intent • Contractor EVM “Best Practices”

11. Pending Recommendations • Align FAA baseline management policy with OMB direction and current FAA practices for incremental program approval • Establish planning, performance reporting, and OMB Exhibit 300 requirements for Standard Program Milestones • Integrate schedule and cost reserve management • Expand program acquisition plan to include • Establish consistent Agency EVM policy for Prime contractors, subcontractors, and support contractors

12. Future Plans • FAA major contractor meeting Sept 14, 2006 • Proposed policy changes reviewed and approved • Proposed EVM certification, surveillance, IBR, and executive program performance reporting processes will be developed and implemented • Based on NDIA guidelines • major contractor “Best Practices”