1. Overview of Compliance, Surveillance, and Integrated Baseline Reviews
August 2013
NAVY CEVM
Welcome to overview of Compliance, Surveillance, and Integrated Baseline Reviews

2. Outline Compliance Review Integrated Baseline Review (IBR)
Surveillance Review
Review timeline
The purpose of this presentation is to provide a brief description of Compliance Reviews, Integrated Baseline Reviews, and Surveillance Reviews, and to highlight the differences between them in purpose, approach, responsibility and participation.
We’ll present an overview chart for each of the three review types and follow that with a quick discussion of the timeline for the reviews

3. Compliance Review
Should this contractor’s EVM System receive validation and approval for use on all EVM programs?
Process review, evaluates the processes used for all of the contractor’s EVM contracts
Led by DCMA (or other authorizing agency)
Minimal participation required from program offices
Decision based upon:
Evaluation of process documentation
Interviews with process owners and executors
Advance Agreement means the contractor can bid on all future contracts claiming an approved EVM System
Advantageous for bidding EVM contracts over $50M which require a contractor to have or pursue EVM system validation
A compliance review seeks to determine if the contractor’s Earned Value Management System is worthy of validation and advanced approval for use on future EVM contracts.
It is inherently a review of contractor processes that’s led by the DCMA or other authorizing agency and requires limited support from the government program office but a great deal of support from the contractor program office.
The review consists of process documentation review and interviews with process owners and executors.
If attained, an Advance Agreement entitled the contractor to bid on all future contracts with reviewing agency claiming an approved EVM System. This is beneficial for all EVM contracts, but particularly those over $50M.

4. Integrated Baseline Review (IBR)
Do the govt/contractor have a mutual understanding of scope, does the contractor have an executable baseline that satisfies contract requirements? What are the risks?
Program review, led by government program office
Participation from DCMA (or authorizing agency)
Conducted at program inception, following major contract modification, or after the exercise of significant contract options
Action Items are developed based upon:
Evaluation of the program baseline and associated risks/opportunities
Evaluation of the supporting management processes
Interviews with CAMs, process owners, program management
Action items issued and tracked to resolution
Serious concerns may delay contract start pending revised planning or could result in contract revision or cancellation
An Integrated Baseline Review seeks to determine if the government and contractor have a mutual understanding of contract scope, to ensure that the contractor has developed an executable baseline that satisfies the contract requirements, and to identify risks to that plan. An initial IBR must be conducted no later than 6 months following contract award. Additional IBRs are required following significant contract modifications or exercise of significant contract options.
Though some programs like to consider IBRs as jointly led by the government and contractor program offices, the government program office is ultimately responsible, with the authorizing agency acting in a supporting role.
Action items are developed based upon evaluation of the program baseline and associated risk and opportunities. Also considered are evaluations of supporting management processes, and interviews with CAMs, process owners, and program management.
Action items are formally recorded and tracked to completion. If serious concerns are identified, contract start may be delayed pending revised planning or a decision to amend the contract.

5. Is the contractor adhering to its approved EVM system?
Surveillance Review
Is the contractor adhering to its approved EVM system?
Process adherence review, evidenced via program data
Led by DCMA (or other authorizing agency)
Active participation from government program office
Assist with identification of issues/concerns
Assist with resolution of misunderstandings between contractor/DCMA
Action items & Corrective Action Reports (CARs) issued based upon:
Data review
Interviews of Control Account Managers (CAMs), process owners, and program management
Resolution of action items and CARs is tracked to completion
Serious and systemic violations may be used to revoke the Advance Agreement
A surveillance review seeks to determine if the contractor is adhering to its approved EVM system.
Surveillance reviews are led by the DCMA or authorizing agency, with active participation from the government program office who assist in the identification of issues and concerns, but may also assist in resolving misunderstanding between the contractor and DCMA.
Based upon the terms of the Advance Agreement, the authorizing agency and contractor must conduct surveillance on an agreed upon percentage of their EVM contract base. The specific contracts that are reviewed each year to satisfy this requirement may differ, but particularly for larger contracts, the revisit rate is often yearly.
The reviews are based upon analysis of the contractor’s data and interviews with Control Account Managers and other contractor program staff. During the review, action items and corrective action reports are issued. Following the review, resolution plans are developed and tracked to completion. Serious and systemic violations may be used as cause for revoking an advance agreement.

6. When do these reviews occur?
Compliance Review (program independent)
IBR(s) - (contract “A”)
IBR(s) - (contract “B”)
Surveillance Review (contract “A”)
So when do these reviews occur?
A compliance review could be requested at any time. Though the very first such review will be born out of the need to pursue an EVM system validation for a specific contract, subsequent reviews may be called for cause at the government’s discretion.
Initial IBRs must be conducted within 180 days of contract award per DFARS clause as reflected here for contract “A”; however, a pre-award IBR may be conducted if pursued contractually as it appears for Contract “B” here. Subsequent IBRs may be required or desired until within about 6 months of contract complete.
Surveillance review for a contract may occur any time between contract start and contract complete.
Surveillance Review (contract “B”)
Contract “A” Start
Contract “B” Start
Contract “A” Award
Contract “B” Award
Contract “A” Complete
Contract “B” Complete

7. Additional Guidance
For additional guidance on conducting IBRs, refer to one of the following sources:
CEVM IBR Toolkit
“The Program Managers’ Guide to the Integrated Baseline Review Process”, available on DAU’s website

8. Navy Center for Earned Value Management
Point of Contact
Navy Center for Earned Value Management
(703)