Brookhaven Science Associates U.S. Department of Energy Facility Managers Meeting DOE-OECM Certification of Earned Value Management Systems April 27-28, 2005 Marty Fallier Manger, Engineering and Construction Services

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Bruce Carnes 11/3/04 Memo requires all DOE Contractors EVMS’ to be compliant with ANSI – 748 and be certified as such by end of FY06 n Recent proposed OMB regulation will require all federal agencies to use certified EVMS on major acquisitions >$20M (already required by DOE O 413.3) Required under OMB A-11, Section 7 n DOE-OECM has scheduled EVMS certification reviews at nearly all DOE facilities during FY05-FY06 Several Facilities have undergone certification already Certification of BNL is inCY06

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Facilities Scheduled for EVMS Certification FY05 & CY06 SRSFebruary 28 ORNLMarch 5 SandiaApril 4 LANLApril 11 LLNLMay 23 LBNLJuly 11 SLACAugust 22 FNALOctober 10 ANLCY06 BNLCY06 PNNLCY06 TJNAF CY06

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Earned Value Management Primer Management methodology for planning, tracking and controlling scope, cost and schedule performance on a project It is an integrated set of processes – not just a software package It relates planned work and planned costs to actual work accomplished (earned value) and actual cost Provides a quantifiable measure of performance against plan

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification Cost Variance Schedule Variance ACWP BCWP BCWS $ Estimate at Completion Time Now Completion Date Performance Measurement Baseline Total Allocated Budget Budget at Completion Time

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n VARIANCES (Favorable is Positive, Unfavorable is Negative) Cost Variance CV= BCWP – ACWPCV % = (CV / BCWP) *100 Schedule Variance SV= BCWP – BCWSSV % = (SV / BCWS) * 100 Variance at Completion VAC= BAC – EAC n PERFORMANCE INDICES (Favorable is > 1.0, Unfavorable is < 1.0) Cost EfficiencyCPI = BCWP / ACWP Schedule EfficiencySPI = BCWP / BCWS n OVERALL STATUS % Schedule = (BCWS CUM / BAC) * 100 % Complete= (BCWP CUM / BAC) * 100 % Spent= (ACWP CUM / BAC) * 100

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Certification Methodology Review will be by Defense Contract Management Agency (DCMA) under MOA with DOE Certification could be based on corporate program or implementation at project level depending on site and types of projects managed Contractor Self-Assessments* are possible for small projects with mature EVMS systems that have been previously accepted by Federal agencies *Contractor surveillance capability will be weighed heavily in the evaluation – a robust surveillance program is a must for certification

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Certification Integrated Project Team (IPT) DCMA member leads the team, other members include: – Contractor – OECM – DOE Program Office – DOE Project Office The make-up of the IPT should be tailored to the scope and depth of the review but all should be independent from the project or program.

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Conduct of the review – cont’d Team is allocated to one of the five areas of the EVMS Standard – Organization – Planning & Budgeting – Accounting – Analysis & Management Reports – Revisions and Data Maintenance EVMS must address the 32 criteria of the ANSI 748 Standard

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Conduct of the review – cont’d Team conducts interviews with contractor staff at the contractor location The review will generate: – Corrective Action Requests (CARs) - Major CAR’s are systemic non-compliances with major impacts - Minor CAR’s are non-systemic non-compliances with minor impacts – Continuous Improvement Opportunities - These identify a practice that could be improved - Corrective action for CIO’s is optional Contractor must respond to DCMA with Corrective Action Plan for each CAR

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Conduct of the review – cont’d Contractor completes corrective actions DCMA verifies they are complete DCMA prepares final report and recommends Certification to DOE DOE Chief Acquisition Officer issues a letter to the contractor notifying them that the Department has accepted the system

Brookhaven Science Associates U.S. Department of Energy DOE-OECM EVMS Certification n Resources for Certification Preparation: ANSI/EIA 748 Standard for Earned Value Management ANSI/EIA 748 Intent Guide (OECM website) DOE Earned Value Management Application Guide (OECM website)