1. Presented to: NDIA PMSC By: Keith Kratzert Date: April 26, 2007 Federal Aviation Administration Improving Program Performance at FAA (and DOT)

2. 2 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 2 EVM at FAA 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. 3 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 3 EVM Objectives I II III IV V VI

4. 4 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 4 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. 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.

5. 5 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 5 Transformation Effect FAA EVM transformation is affecting other areas of the Acquisition Management System - Procurement- WBS - Risk and MR- Systems Engineering - Cost Estimation- Standard Program Milestones - Program Reporting- Performance Data Gathering

6. 6 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 6 Current Activities FAA Acquisition Management System Policy being reviewed with recommendations being made to incorporate: –Baseline management guidance –OMB Exhibit 300 reporting –July 2006 EVM FAR clause intent Proposed IBR, EVM surveillance, certification, and executive program performance reporting processes will be developed and implemented –Based on NDIA guidelines –major contractor “Best Practices”

7. 7 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 7 Recent Accomplishments Expanded AMS standard program milestones –Mapped milestones to FAA standard WBS –Identified milestone decision authority Established Portfolio/Program Performance Metrics (PPPM) –Joint Resources Council (JRC) approval 2/17/07 –PPPM Ops Concept due to JRC by end of April

8. 8 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 8 Pilot Program Reports FinancialScheduleTechnicalResourcesExternal Program Manager Program A Program B Program C Program D

9. 9 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 9 Summary and Supporting Metrics FinancialScheduleTechnicalResourcesExternal Interest Program Manager GGY YYG

10. 10 Federal Aviation Administration Improving Program Performance at FAA April 26, 2007 10 Summary Activities Expanding FAA EVM Council role to lead EVM Surveillance, program level IBR Collaborating with ATO Finance to integrate EVM and financial management –PPPM –Data Study –Consolidating data gathering and reporting –WBS/Standard Program Milestone Working Group Assisting DOT EVM Policy and guidance formulation