The much awaited Earned Value Management Implementation Guide (EVMIG) has been released by the Department of Defense (DoD). It supports organizations that are implementing Earned Value Management (EVM) by offering a flexible approach with the goal of being less burdensome on the contractor. Weighing in at 103 pages, the EVMIG is detailed and comprehensive making it crystal clear what implementing EVM is all about.
The EVMIG is split into two parts. The first part describes EVM concepts and guidelines. The second part provides guidance for Government use of EVM. This includes guidance for applying EVM requirements to contracts, an introduction to analyzing performance and a discussion of baseline review and maintenance and other post award activities.
The EVMIG is meant to be used both contractors and by DoD staff. By sharing a common set of guidelines, both Contractors and the government will know exactly what is expected of each other and how to ensure contractors EVMS is in compliance. The two parts of the EVMIG are outlined below:
EVMIG – Part 1
Part 1 of the EVMIG ‘Earned Value Management Concepts and Guidelines’, cover the following areas:
Earned Value Management
- Concepts of Earned Value Management
- EVM and Management Needs
- Uniform Guidance
Earned Value Management System Guidelines
- Earned Value Management System (EVMS)
- EVMS Guidelines Concept
- System Compliance and Acceptance
- System Documentation
- Cost Impacts
EVMIG – Part 2
Part 2 of the EVMIG ‘Procedures For Government Use Of Earned Value’, cover the following areas:
Applying EVM
- Overview
- Government EVM Organizations
- Roles and Responsibilities
Pre-Contract Activities
- Overview
- Department of Defense Requirements
- General Guidance for Program Managers
- Acquisition Strategy/Acquisition Plan
- Preparation of the Solicitation
- Source Selection Evaluation
- Preparation of the Contract
Post-Award Activities – Integrated Baseline Reviews
- Purpose of the IBR
- IBR Policy and Guidance
- IBR Focus
- IBR Team
- IBR Process
- IBR Results
Post-Award Activities – System Compliance
- Overview
- EVMS Approval
- EVMS Surveillance and Maintenance
- System Changes
- Reviews for Cause (RFCs)
- Deficiencies in Approved EVMS
- System Disapproval
- Deficiencies in Disapproved or Not Evaluated Systems
Other Post-Award Activities
- Overview
- DoD EVMIG
- Maintaining a Healthy Performance Measurement Baseline (PMB)
- EVMS and Award Fee Contracts
- Performance Data
- EVM Training
- Adjusting Level of Reporting During Contract Execution
There’s no question about the benefit of EVM and that the US Government requires it on all projects over certain Dollar thresholds. Compliance with EIA-748 ensures that an organization has the management and control over the key program areas of organizing, planning, scheduling, budgeting, performance measurement, forecasting, analysis, and baseline change control. An EVMS allows organizations to:
- Plan all work scope for the program from inception to completion
- Assignment of authority and responsibility at the work performance level
- Integration of the cost, schedule, and technical aspects of the work into a detailed baseline plan
- Objective measurement of progress at the work performance level with EVM metrics
- Accumulation and assignment of actual direct and indirect costs
- Analysis of variances or deviations from plans
- Summarization and reporting of performance data to higher levels of management for action
- Forecast of achievement of Milestones and completion of contract events
- Estimation of final contract costs
- Disciplined baseline maintenance and incorporation of baseline revisions in a timely manner
Summary
The EVMIG is a great help to both government and industry. It allows a common set of guidelines to be used and understood on both sides of the contract. For example, if you are a contractor that has an upcoming Integrated Baseline Review (IBR), the EVMIG makes it clear what the expectations are of the government and how it will be conducted. Organizations still have to adhere to the 32 guidelines in the EIA-748 standard. EVM practices, competencies and discipline must be integrated and maintained.
The EVMIG does make references to other materials which include EVM standards, handbooks, websites, etc. The EVMIG is a fantastic resource that, no doubt, everyone in the industry will use! You can download the EVMIG here.