Earned Value Management (EVM) Reference Card

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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 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 guidelines in ANSI/EIA-748, Standard for Earned Value Management Systems (EVMS). Key highlights: • For in-house programs/projects, EVM planning and initial implementation begins during project Formulation (Phases A and B): • EVM is applied in Project Life Cycle Phases C and D with an estimated life cycle cost at $20 million or greater and to Phase E modifications, enhancements, or upgrades with an estimated cost of $20 million or greater. • The project EVM system complies with the guidelines in ANSI/EIA-748 and is described in the Project Plan. • The NASA customer (Mission Directorates/Program Offices) will conduct an integrated review of project baselines as part of their preparations for Key Decision Point (KDP) C to ensure the project’s work is properly linked with its cost, schedule, and risk and the systems are in place to perform EVM and provide valid data for management decisions. Formal project EVM reporting begins no later than 60 days after the start of Phase C. • For suppliers, EVM system and reporting are effective at contract award (regardless of phase) and applied as follows: • For development contracts and subcontracts valued at or between $20 and $50 million, 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 $50 million or more, the contractor is required to have an EVMS that has been formally validated by the Government. • EVM is not required on firm fixed price contracts or contracts for non-developmental engineering support services, steady state operations, basic and applied research, and routine services such as janitorial services, etc. In these cases, application of EVM is at the discretion of the program or project manager (PM). • The Contract Performance Report, (CPR), Integrated Master Schedule (IMS) and Work Breakdown Structure (WBS) Data Requirements Descriptions (DRDs) are required deliverables when EVM is required. • IBRs are required when EVM is required. Initial IBR conducted within 180 days after contract award; subsequent IBRs within 60 days after major contract modification or change to the PMB. 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 February 2012 NASA EVM Website: http://evm.nasa.gov