Intelligence Community Acquisition Best Practices: NGA Earned Value Management

1
Intelligence Community Acquisition Best
Practices NGA (Earned Value Management)

• Presentation to Defense Intelligence Acquisition
  Conference
• Peggy Poindexter
• Acquisition Business Office (AB)
• National Geospatial-Intelligence Agency (NGA)
• 15 May 2007

2
Topics for Discussion

• Background
• IC EVM Council
• NGA EVM Best Practices
• Contract Implementation Review (CIR)
• IC Guide to the Evaluation and Surveillance of
  Earned Value Management Systems (EVMS)

3
Background

• NGA uses Earned Value Management (EVM) on Major
  Systems acquisitions
• Earned Value Management supports NGA program
  management by effectively integrating the work
  scope of a program with its schedule and cost
  elements for optimum program planning and
  control.
• EVM is an Industry Best Practice

ANSI/EIA-748-A, Earned Value Management Systems
4
Managing Without Earned Value Information
Example I Budgeted 5 Widgets at 100 Hrs Per
Widget. At the End of the Month, 400 Hours Had
Been Expended.
5
EARNED VALUE - AN OBJECTIVE MEASURE OF WORK
ACCOMPLISHMENT
Example I plan to build 5 widgets this month.
Each widget should take 100 hrs. I will measure
earned value based on the work accomplished i.e.
3 widgets completed.
BUDGET EARNED ACTUAL PLAN VALUE
500 300 400
(3 WIDGETS 100 HOURS)
6
Managing WITH Earned Value Information
7
IC EVM Council
8
IC EVM Council History Purpose

• Identified need for IC forum to collaborate and
  share EVM information
• Briefed the IC Acquisition Council (ICAC) (Jan
  2004)
• Established working Group to evaluate need for IC
  EVM Council
• Members CIA, DIA, NGA, NRO, NSA
• Drafted and coordinated IC EVMC charter
• Agreed upon and signed (Aug 2004)
• IC EVM Council Purpose
• Provide a venue for collaboration and recognition
  of Government application and industry
  implementation of EVM compliance with ANSI/EIA
  748-A

9
IC EVM Council Functions

• Serve as focal point for EVM within the IC on EVM
  approach, policy and guidelines
• Advocate EVM to IC Industry partners
• Discuss Government and Industry EVM concerns
• Share information on tools, lessons learned,
  reviews and reporting
• Collaborate on guidelines for process reviews and
  approving contractors' systems including
  validation and continued acceptance

10
EVM Best PracticeContractImplementation Review
(CIR)
11
What is a CIR?

• The Contract Implementation Review (CIR) provides
  insight into
• Contractor management processes used to execute
  the program
• How those processes develop the performance
  measurement baseline (PMB) i.e. work execution
  plan
• How different processes are applied across the
  programs lifecycle
• Overall process maturity

The CIR is an integral part of program start-up
and a key stepping-stone to understanding the
Integrated (cost, schedule, technical)
Performance Baseline
12
What is the Scope of the CIR?

• Processes reviewed at the CIR may include
• Program management
• Technical management/Lifecycle development
• Risk Management
• Supply Chain Management
• Supplier management/Materials
• Earned Value Management
• Other related management control processes

13
What are the Outcomes of the CIR?

• Confidence in contractor capabilities to deliver
  integrated (cost, schedule, technical
  performance) acquisition outcomes
• Identify process risks and opportunities,
  management challenges, and any expectation gaps
• Improved understanding of how the Contractor
  conducts business
• Understand the relationship of the technical
  baseline/technical performance metrics with the
  EVM implementation

14
A CIR is not

• Pass or fail review
• Milestone decision authority review
• Audit
• CMMI review
• EVM system review

15
EVM Best PracticeThe IC Guide to the Evaluation
and Surveillance of EVMS
16
Background

• The EVM Industry Standard, ANSI-EIA-748-A
• Defines 32 Guidelines for structuring effective
  management control systems
• Provides minimum prescription on the
  implementation of these guidelines
• Is referenced in both FAR and DFARS clauses for
  contractual implementation of EVM

ANSI/EIA-748-A, Earned Value Management Systems
17
Background

• The basic tenets of the 32 EVM Guidelines are
• Plan all work scope for the program through
  completion
• Assign finite pieces of work to a responsible
  person or organization for control of technical,
  schedule and cost objectives.
• Integrate program work scope, schedule and cost
  objectives into a plan against which
  accomplishment can be measured.
• Control changes to the plan.
• Objectively assess work accomplishment.
• Compare actual costs incurred in accomplishing
  the completed work with its planned value.
• Analyze significant variances from the plan,
  forecast impacts, and prepare an estimate at
  completion based on performance to date and work
  to be performed.

18
IC Guide to the Evaluation and Surveillance of
EVMS

• IC Guide developed in accordance with the IC EVM
  Councils Charter
• Purpose of IC Guide is to ensure
• Consistent and uniform approach between IC
  Mission Partners in the evaluation and
  surveillance of contractor EVM systems
• The IC Guide recognizes and builds upon the
  Industry NDIA EVMS Intent Guide

19
IC Guide to the Evaluation and Surveillance of
EVMS

• IC Guide provides the acquisition community
• Insight into each guideline and its
  implementation
• Information on how to evaluate the contractors
  implementation of each guideline
• The qualities and products inherent in an
  effective implementation
• Provides a consistent tie-back across the
  Intelligence Community to each guidelines intent

20
IC Guide to the Evaluation and Surveillance of
EVMS

• The new IC Guide is an unprecedented and new body
  of knowledge in the EVM Community
• IC Guides format for each EVMS Guideline
  provides
• What it Means
• IC Implementation Guidance
• Contribution to Program Management
• Qualities of Effective Implementation
• Typical Products of Implementation
• What Should the EVM System Description Cover
• Review Steps
• Glossary of Terms (Appendix A)
• Data Trace Formats (Appendix B)
• Intent Paragraphs of the NDIA Intent Guide
  (Appendix C)

21
NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY