Implementing and Maintaining an Earned Value Management System (EVMS)

Transcription

1 Implementing and Maintaining an Earned Value Management System (EVMS) Dale Gillam, Program Manager Corporate EVM and Scheduling Focal Point, SAIC May 24, 2016 SAIC. All rights reserved.

2 Why Are We Doing This? We are here today You likely have an EVMS requirement or are anticipating one Or, you are interested to see if there is some value regardless of the requirement And, equally important, to: Assist in better program planning and execution Facilitate communication across the program Provide leading indicators and insight into potential problems in time to implement corrective actions Better enable successful completion of the contract on schedule and within budget Learning objective This session is designed to provide an overview of how to implement and maintain an EVMS with an emphasis on pathways to more information 2

3 What defines an EVM System (EVMS)? For U.S. organizations, an EVMS is an integrated program management system compliant with the 32 Guidelines in the EIA-748 EVMS Standard The seven principles summarizing the results adhering to the 32 guidelines are: 1. Planning all work scope for the program to completion. 2. Breaking down the program work scope into finite pieces that can be assigned to a responsible person or organization for control of technical, schedule and cost objectives. 3. Integrating program work scope, schedule, and cost objectives into a performance measurement baseline plan against which accomplishments may be measured. Controlling changes to the baseline. 4. Using actual cost incurred and recorded in accomplishing the work performed. 5. Objectively assessing accomplishments at the work performance level. 6. Analyzing significant variances from the plan, forecast impacts, and prepare an estimate at completion based on performance to date and work to be performed. 7. Using EVMS information in the company s management processes. 3 Source: EIA-748 EVMS Standard

4 The 32 Guidelines Grouped by the Five Categories of the EIA-748 Standard 1. Organization Guidelines Planning, scheduling, and budgeting Guidelines Accounting considerations Guidelines Analysis and management reports Guidelines Revisions and data maintenance Guidelines

5 Core Elements of an EVMS Solution Organizational Governance: Establishes organizational approach to EVM EVM System Description : Defines the organization s EVM practices and how they comply with EIA-748 and best practices EVM Procedures: Aid in implementing the EVMSD on programs Training: Educates stakeholders on practices and roles and responsibilities Surveillance: Approach and status of regular internal program reviews Tools: Integrated solution to support the practices Community: Avenues to communicate with EVM stakeholders Proposal and Program Support: Gives insight into ability to propose efforts appropriately, and start them off right and maintain them Credentials: Organizational through Gov t Recognition (DoD: now ACO through DFARS ; Others: Vary); Individual Practitioners (e.g., PMP, EVP). 5

6 Organizational Governance Encompasses the responsibility, authority, accountability, and commitment required for successful EVMS Key success criteria Organizational commitment documented in a policy statement Executive involvement and support must be visible and consistent Must be integrated into culture and levels of management Functional organizations must be aligned to lead and support program teams Established career paths Strategic and business alignment 6

7 EVM System Description (EVMSD) and Procedures There is no required format for how an organization documents its EVM System Typically, an EVMS is documented in a single EVM System Description (EVMSD) and then has supporting implementation procedures 7 The EVMSD document defines the what of what will be done and demonstrates alignment and traceability to the 32 Guidelines The implementation procedures define for a program how to implement the EVMSD Considerations Care must be given to how the EVMS is documented as it will determine what is within scope of external audits for compliance with the 32 Guidelines The EVMSD must be detailed enough to demonstrate compliance and provide clarity to program teams, while not being over prescriptive Structure your EVMSD and procedures around natural program management practices areas to aid adoption by programs avoid EVMS centric structures Do create separate EVMS documentation, otherwise you may open other systems up to inclusion in EVMS audits

8 Training Training is often a very underestimated factor in the degree of success It includes Formal periodic lecture oriented training for those interested Hands on training and execution with program teams implementing the EVMS Specific role based training (e.g., PM, Control Account Managers (CAMs), Business Manager, Schedulers, EVM analysts, Finance, Contracts, Business Development ) Peer to peer training (e.g., BD to BD, PM to PM, Executive to Executive) Different methods (e.g., live instructor, web-based, reference cards) Consistent messaging across many forums and venues (e.g., participate in functional department training) Leveraging external training (e.g., PMI, NDIA, CPM, NCMA) 8

9 Surveillance Surveillance is the continuous process of reviewing the health of the EVMS as applied to one or more projects. The goals of surveillance are to: 1. Ensure that the organization s EVMS has been effectively implemented in accordance with the organization s EVMS documentation. 2. Ensure the EVMS provides timely, accurate, and reliable integrated project management information for internal and customer use. 3. Assess the project s commitment and ability to maintain and use its EVMS as an integral part of its project management process. Surveillance Reviews generally start once the Performance Measurement Baseline (PMB) is established on a newly authorized project and extend through the duration of the project. Note: Surveillance Reviews should not be confused with a Compliance Evaluation Review (CER), which shares the above three goals with Surveillance Reviews and includes the unique goal of ensuring the EVMS is in compliance with the intent of the EIA-748 EVMS Standard s 32 Guidelines. 9

10 Travel 3 Yes Tools 2 Yes Tools 3 Yes Facilities - Warehouse 2 Yes Facilities 3 Yes Facilities - Warehouse 3 Yes Contract Fee 2 Yes Program Management 2 Yes CLIN 2 PMO Summary Level Planning Packa 3 Yes Program Management Office (PMO) 3 Yes Program Management 4 Yes Chief Engineer Office 3 Yes Chief Engineer 4 Yes Enterprise Support 3 Yes Enterprise Support 4 Yes RCAS/DTTP Sustainment 2 Yes RCAS Core Sustainment 3 Yes CLIN 3 RCAS Summary Level Planning Pack 4 Yes RCAS Project Management & Enterprise Serv 4 Yes RCAS Project Management 5 Yes RCAS Chief Engineer Office 5 Yes RCAS Enterprise Support 5 Yes RCAS Engineering 4 Yes RCAS System Integration and Analysis 5 Yes RCAS System Integration & Analysis - Inform 6 Yes RCAS System Integration & Analysis - RLAS 6 Yes RCAS System Integration & Analysis - DIMHR 6 Yes RCAS Information Assurance 5 Yes RCAS Test Management 5 Yes RCAS Release Management 5 Yes RCAS Sustainment and Field Support 4 Yes RCAS Help Desk 5 Yes RCAS Sustaining Engineering 5 Yes RCAS Exhibits / DEMOS 5 Yes RCAS Customer Relationship Management 5 Yes RCAS Training 5 Yes RCAS Curriculum Development 6 Yes RCAS Training Delivery 6 Yes RCAS Trouble Ticket Analysis 5 Yes RCAS Release 6.1 SP2 4 Yes RCAS Release 6.1 SP2 Planning & Analysis 5 Yes RCAS Release 6.1 SP2 Engineering 5 Yes RCAS Release 6.1 SP2 Testing 5 Yes RCAS Release 6.1 SP2 Deployment and Inst 5 Yes RCAS Release Bravo 4 Yes E Manage Finance Processes X F Report Status via EVMS X G Other Direct Costs X X Engineering A Requirement Gathering & Analysis X X X X X X X X X X X X B Build Planning & Enterprise Baselines X X X X X X X X X X X X C IPT Participation X X X X X X X X X X X X X D Security & IA X X X X X X X X X X X X X E Architecture X F Development X X X X X X X X X G Production X X X X X X H Support Technical Reviews X X X X X X X X X X X X X I Generate CDRLs X X X X X X X X X X X J Manage Engineering Processes X X X X X X X X X X X X K Report Status via Metrics X X X X X X X X X X X X X L Source data acquisition cost X Test & Int A IPT Participation X X X X X X X X X X X X X B Integration X X X X X X X X X X C Test / QC X X X X X X X X X X X X D Defect Report & Management X X X X X X X X X X E Support Technical Reviews X X X X X X X X X X X X X F Generate CDRLs X X X X X X X X X X X G Manage I&T Processes X X X X X X X X X X X X H Report Status via Metrics X X X X X X X X X X X X X CM / DM A IPT Participation X X X X X X X X X X X X X B Manage Product Baselines X X X X X X X X X X X X C Control Baseline Change X X X X X X X X X X X X X D Distribute Products X X X X X X X X X X X X X X E Support Technical Reviews X X X X X X X X X X X X X F Generate CDRLs X G Manage CM / DM Processes X X X X X X X X X X X X X H Report Status via Metrics X X X X X X X X X X X X X ID Success Factor Risk Statement Impact Statement Risk Owner WBS Element Technical: Dev., Integ, V&V Technical: Dev., Integ, V&V 1.18 Cost Technical: Dev., Integ, V&V If defects are found after unit and integration testing of Increment II Release 1, Version 3.0, then rework will be required to pass Operational Test and Evaluation If defects are found after unit and integration testing of Increment II Release 2 Version 3.1, then rework will be required to pass Operational Test and Evaluation If we experience unplanned events like the CCRI or JITC testing for MCOS, then control accounts will exceed their authorized budget If MCOTEA decides to conduct an IV&V on the Increment II Release 2 implementation, then additional resources will be required to prepare for, support, and address findings in the IV&V Risk Identification and Impact Assessment Component integration is impacted creating additional delays in subsequent phases. OT&E success is on the critical path Component integration is impacted creating additional delays in subsequent phases. OT&E success is on the critical path Funding added to the undistributed budget per CPR Format 1 for CLIN 1001 to account for shifts in customer priorities under Formal EVMS IV&V requires support of SA, DBA and engineering team during the conduct of the event as well as in the preparation and recovery phase. Risk Probability Risk Risk Impac t Urgency Kyle Than Possible Moderate Near term 8/31/2012 Kyle Than Possible Moderate Long term 10/24/2013 Leigh Westfall Possible Moderate Long term 1/31/2013 Chris Long Possible Moderate Near term 10/24/2013 Risk Closure Mitigation Summary (Pulled from Risk Response Mitigation Date Mitigation Tab) 2-Plan Risk Response 2-Plan Risk Response 2-Plan Risk Response 2-Plan Risk Response Risk Response Track design and development efforts throughout lifecycle (SRR, SFR, PDR, CDR, TRR, DT&E). Add additional test engineers to the team to validate software prior to OT&E. Verify that all requirements have been tested. Ensure traceability of requirements from design to test. Make adjustments as required. Add additional test engineers to the team to validate software prior to OT&E. Track design and development efforts throughout lifecycle (SRR, SFR, PDR, CDR, TRR, DT&E). Add additional test engineers to the team to validate software prior to OT&E. Verify that all requirements have been tested. Ensure traceability of requirements from design to test. Make adjustments as required. Add additional test engineers to the team to validate software prior to OT&E. PM monitor control account utilization through POP. If needed add additional funding from undistributed budget to work packages that may potentially overrun as a result of changing customer priorities and project emphasis. Work with the IAO and MCOTEA to keep them aprised of changes. Update documentation and provide interim scans for review by MCOTEA. Estimate $24, $25, $105, $92, The public reporting burden for this collection of information is estimated to average 8 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing the burden, to Department of Defense, Washington Headquarters Services, Directorate for Information Operations and Reports ( ), 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to any penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. PLEASE DO NOT RETURN YOUR COMPLETED FORM TO THE ABOVE ADDRESS. 1. CONTRACT NUMBER 3. CONTRACT FUNDING FOR 5. PREVIOUS REPORT DATE 7. CONTRACTOR (Name, address and zip code) 9. INITIAL CONTRACT PRICE GS00T99ALD0210 Multiple Year Procurement 2010 June 11 SAIC a. TARGET $454,436,158 GST0008AJM087, MOD 23 GFY Arlington Blvd, Falls Church, VA b. CEILING $454,436, CONTACT TYPE 4. APPROPRIATION 6. CURRENT REPORT DATE 8. PROGRAM 10. ADJUSTED CONTRACT PRICE CPFF/CPAF/FFP Multiple 2010 July 09 AITS a. TARGET $441,539,274 Army b. CEILING $441,539, FUNDING INFORMATION CONTRACT WORK AUTHORIZED FORECAST APPRO- ACCRUED LINE ITEM/WBS PRIATION FUNDING EXPENDITURES REMAINING DEFINITIZED TOTAL FUNDS NET ELEMENT IDENTI- AUTHORIZED OPEN FUNDED (CEILING) NOT SUBTOTAL NOT YET ALL OTHER SUBTOTAL REQUIRE- CARRY- FUNDS FICATION TO DATE COMMITMENTS AMOUNT DEFINITIZED AUTHORIZED WORK MENTS OVER REQUIRED TOTAL a b c d e f g h i j k l m n Base Year Multiple $8,803,247 $8,021,090 $782,157 $19,865,551 $0 $19,865,551 $0 $0 $0 $19,865,551 $0 $19,865,551 Multiple $44,031,100 $41,348,055 $2,683,045 $94,907,288 $0 $94,907,288 $0 $0 $0 $94,907,288 $0 $94,907,288 Option Year 1 OY2 PMO OY2 RCAS Core Sustainment OY2 Facilities Surge OY2 ODCs OY2 Facilities - Warehouse OY2 ODCs - Surge Option Year 3 Option Year 4 Option Year $4,174,694 $2,987,682 $1,187,012 $4,353,809 $0 $4,353,809 $0 $0 $0 $4,353,809 $0 $4,353, a $12,305,918 $9,742,323 $2,563,595 $12,377,342 $0 $12,377,342 $0 $0 $0 $12,377,342 $0 $12,377, b $0 $0 $0 $1,800,000 $0 $1,800,000 $0 $0 $0 $1,800,000 $0 $1,800, c $130,000 $37,545 $92,455 $130,000 $0 $130,000 $0 $0 $0 $130,000 $0 $130, d $175,000 $104,305 $70,695 $175,000 $0 $175,000 $0 $0 $0 $175,000 $0 $175, e $201,378 $78,350 $123,028 $300,000 $0 $300,000 $0 $0 $0 $300,000 $0 $300,000 Multiple $0 $0 $0 $94,077,953 $0 $94,077,953 $0 $0 $0 $94,077,953 $0 $94,077,953 Multiple $0 $0 $0 $95,245,177 $0 $95,245,177 $0 $0 $0 $95,245,177 $0 $95,245,177 Multiple $0 $0 $0 $45,514,949 $0 $45,514,949 $0 $0 $0 $45,514,949 $0 $45,514,949 $121,593,183 $92,769,770 $28,823,413 $441,539,274 $0 $441,539,274 $0 $0 $0 $441,539,274 $0 $441,539, CONTRACT WORK AUTHORIZED (With Fee/Profit) - ACTUAL OR PROJECTED a. OPEN COMMITMENTS b. ACCRUED EXPENDITURES c. TOTAL (12a + 12b) 13. FORECAST OF BILLINGS TO THE GOVERNMENT 14. ESTIMATED TERMINATION COSTS ACTUAL TO DATE CONTRACT FUNDS STATUS REPORT (Dollars in $1) 7/10/10-8/06/10 8/07/10-9/03/10 9/04/10-9/30/10 Base Year/ OY1 Unfunded Form Approved OMB No OY3 OY4 OY5 AT COMPLETION $ 2,047,332 $ - $ - $ - $ 2,047,332 $ 90,722,438 $ 3,500,000 $ 3,500,000 $ 41,527,731 $ 65,403,694 $ 94,077,953 $ 95,245,177 $ 45,514,949 $ 439,491,942 $ 92,769,770 $ 3,500,000 $ 3,500,000 $ 41,527,731 $ 94,077,953 $ 95,245,177 $ 45,514,949 $ 441,539,274 $ 3,268,869 $ 5,500,000 $ 4,500,000 $ 41,527,731 $ 94,077,953 $ 95,245,177 $ 45,514,949 $ 382,404,449 $ 10,088,079 $ 9,930,823 $ 9,773,568 $ 7,832,570 $ 6,159,018 $ 5,725, REMARKS: Funding Authorized to date column (c) and Definitized column (f) reflect funding through modification 23 and authorization to proceeds (ATP) received during the reporting period and is expected in modification 24. All highlights reflected in column (e) display the CLINs that have used 75% of the funding authorized to date. Limitations of Funds Letters have been delivered to FEDSIM for the following CLINS; RCAS Core (2003a), DTTP Core (2003c), NGB-AIS (2004a), and Proposal Prep (2009). The Travel Core CLIN (2010a) has used over 75% of it's funding and a Limitations of Funds Letter is being created. Note: Additional funds have been received this SAIC Accounting Period (Period 7) in modification 24 and will be reflected in next month's CFSR for Period 7. Primary Products and Tools Supporting SAIC s Approach for Project Management Guides and Templates User Checklists and Compliance Packages Tool User Guides SharePoint Program Portal and Notebook Reach-back SME Support IMP (Word) Travel 2 Yes Scheduling (MS Project) BOEs (Excel) Cost/ EV Engine (Fusion, Cobra) Reporting, Analytics, and Dashboards (winsight) WBS (Excel) Schedule Analysis (Steelray;@Risk) Engineering (RequisitePro, Doors, System Architect, SSAS) Risk Management (Excel / RM Tool) Work/ODC Authorization ( /CRM) Timekeeping (Deltek T&E, istks) ACWP Solution (EPM11/Cognos) 10

11 Community Developing an internal community of practitioners and vested stakeholders is important for success Need this to keep executives and functional departments vested Leverage communication channels to share: Success stories Lessons learned Focus on key contributors What did not work Where help is needed Engage in the community outside your organization There are a few primary forums and it s a relatively small community of core practitioners Keep in mind there are many ways to success so if something does not sound right, use your network to validate and seek alternatives 11

12 Proposal and Program Support Do not wait until execution to deal with an EVMS requirement Engage with the capture managers and business development leaders to commit to the right things in the proposal phase Often the Q&A process can be used to eliminate or clarify requirements Develop boiler plate proposal material and cost estimates to standardize material for proposal teams Determine which proposals to invest your time in some teams are better suited for adopting EVMS and leveraging your involvement Work hard to tell a consistent story from proposal to award to execution Stay engaged with the Program Manager and team in execution None of this matters if you cannot help the PM and team do better Without the consistent helpful engagement, you will become viewed as a compliance person Be a buffer between the program and external stakeholders (e.g., government EVM analysts, auditors) and internal stakeholders where needed (e.g., surveillance reviews) 12

13 EVMS Credentials & Core Activities SAIC s EVMS has been validated by DCMA since 2000 we have been consistent in execution Continuous EVMS Surveillance Reviews on programs maintain our validation GO-115 Core activities embedded in EVMS process areas defined in procedures 13

14 EVMS Requires Program Focus Resources and Time Implementing the approach Documenting the EVM Plan Conducting Training Baseline Development: Breaking down the work Creating the IMS Developing BOEs Work Authorization Issuing authorization from PM to CAM CAMs providing WADs to team Validating charges by person Rolling Wave Planning Used to fine tune our planning during execution on a case-by-case basis Baseline Change Management Documenting Baseline Change Requests and capturing changes in the Program Log Weekly/Accounting Period status and analysis Creating, analyzing, and reconciling reports EVM discussions EAC effort Developing ETCs Reconciling/reworking estimates Implementing corrective actions Customer and oversight reviews

15 Need for Consistent Engagement Formal reviews Integrated Baseline Review (IBR) Occurs periodically. Emphasis is on the quality of the performance measurement baseline, with focus on: Technical content, Schedule attainability, Budget adequacy, Resource adequacy, EVMS used as a management tool Surveillance Reviews The periodic review of specific practices with focus on specific areas of work to ensure maintenance of the EVMS Internal and joint reviews Regular program interactions Data analysis and reporting reinforces a consistent business rhythm Alignment of regular meetings with use of EVM (e.g., IMS, formal reports) Consistent direction from customer PM and customer 15

16 Where to Get Started Determine if a business case will aid Executive buy-in Engage the right SME False starts are hard to recover from Research best practices from the community NDIA site for guides CPM site for past presentations Define your draft EVMSD how you intend to manage programs Consider a PM working group to define how you manage (then weave in EVM) Create templates and examples for all defined artifacts Define your draft procedures to support program implementations Align tools to automate as much as possible Prototype on the right program PM, team, and immediate managers Even with organizational support, a program team will keep the effort focused, realistic, and results oriented (plus they become the champions when done) Do surveillance and other best practices even if not imposed externally - yet 16

17 General and Systemic Lessons Learned (1 of 2) It is necessary to keep an open mind about EVMS and learn what the current environment is about EVMS implementation necessitates the engagement of line managers and functional leads EVMS shines the light on existing broken management processes It is important to validate and focus on contract requirements It is important to engage customers and partners early and throughout the process Assess your customer s understanding of EVMS Understand your customer s EVMS requirement to OMB EVMS is often used as a program management communication tool Do not assume that the customer will be lenient; this leads to complacency It is important to engage functional experts early Identify and develop relationships with customer EVMS focal points 17 17

18 General and Systemic Lessons Learned (2 of 2) It is important that there are no single points of failure Do not allow the degree of technical change to be used as an excuse for the lack of baseline development, change management, and process compliance Do not overcommit It is critical that there be adequate tool support and training Establish subcontractor flow-down requirements during the proposal phase and institutionalize them Do not put too much emphasis on generating the data and not enough on the analysis and use of the analysis results to manage the project Review deliverables from the customer s perspective Keep everyone in the same camp Some times we discover EVMS requirements by accident CAMs are critical to success of an EVMS 18

19 Additional Information EIA-748 EVMS Standard: NDIA IPMD: Primary PM standards working group for DoD, Civilian Agencies, and industry Summary of Agency requirements: College of Performance Management (CPM) Primary educational and practitioner forum, with emphasis on EVM Hosts a Fall IPM Workshop and a Spring EVM Workshop PMI Practice Standard for EVM: Linkedin EVM Group: Cobra Group: winsight Group: Government PARCA EVM: CAIWG Primary Civilian Agency working group for EVM Topics: see NDIA IPMD site GAO: 19

20 Trends in Integrated Program Management - Come Influence our Community Same location; Same speaker (it will be a facilitated audience discussion) Thursday, June 16 th, 5:00-7:30pm Hosted by the DC chapter of CPM - ($10 for PMI members; drinks & hors d oeuvres) Registration at: Scroll down the page or search for my name or the topic Through a facilitated discussion, meeting attendees will contribute to the understanding of current trends and shaping the path forward in the Integrated Program Management (IPM) community. The IPM community includes EVM, project scheduling, program performance measurement, effective contracting, program start-up and transition management, and many other related practices. 20

21 Backup Slides

22 Contract Challenges IDIQ vs Delivery Order requirements and management Conflict between mature management / EVM vs. LPTA LPTA environment and managing ECPs and scope creep Shift to FPIF contracts Few COs/CORs experienced in using schedules/ EVM for better IPM Clear definition of what is or isn t authorized Misuse of Budget vs. Funding Use of payment withholds through Business Systems DFARS Subcontractor requirements, management, and oversight tied to Prime Partnering with subcontractors and vendors Managing and reporting on hybrid contracts 22

23 EVM Related Requirements: Clauses or Standard References DFARS Notice of EVMS DFARS EVMS DFARS Notice of CSDR DFARS CSDR DFARS Business Systems FAR Notice of a Pre-Award IBR FAR Notice of a Post-Award IBR FAR EVMS EIA EVMS Standard EVM or EVMS: General Reference Cited 23

24 EVM Related Requirements: Reporting/Deliverable References CWBS: DI-MGMT or MIL-STD-881 IMP (Integrated Master Plan) IMS: DI-MGMT CPR: DI-MGMT IPMR: DI-MGMT CFSR: DI-MGMT CDSR - DD Form 1921: DI-FNCL FC-HR - DD Form : DI-FNCL PCR - DD Form : DI-FNCL CBDR - DD Form : DI-FNCL FVCR - DI-FNCL NASA Form 533M Other EVM or IMS Reporting 24

25 Key Contractual Considerations: Government Perspective Need to clarify requirements in IDIQ/MA vs. individual Task Orders Work with contractors to clarify requirements in RFPs and post-award Include Section L/M requirements for EVM related requirements Look for how and where these are addressed in proposal Should be consistent and integrated throughout volumes Seek ways to align use of EVM and SLAs/KPPs, etc., to correlate data Validate core elements of contractor s EVMS solution Engage with Government COR/Program Office on use of EVM Consider engaging DCMA and/or Agency EVM resources to lend depth and consistent focus on EVM requirements Engage with the contractor organizational level EVM Focal Points - communicates importance and adds leverage outside the program Use early (<90 day) IBRs and Surveillance Reviews to get the right start and keep consistent emphasis on the practices 25

26 Key Contractual Considerations: Prime Contractor Perspective Determine who organizational EVM experts are and engage them early and throughout the contracting process Engage with counterparts and get the EVM experts to talk Clarify any ambiguity in requirements during the RFP phase Tell a consistent story of the solution within each deliverable and volume, and across all of them Define the role of subcontractors within EVMS solution (e.g., part of the prime s EVMS or a separate flowdown?) If integrated, the tracking and costing of subcontractor timekeeping and the reconciliation with subsequent invoices is key Clearly define how subcontractor data and practices will be integrated and/or aligned with the prime s 26

27 Key Contractual Considerations: Subcontractor Perspective Establish formal requirements with prime Understand effort involved if requirements are formally flowed down vs. integration into prime s EVMS Seek opportunities for mentor/protégé relationships Define role in IBRs and Surveillance Reviews Engage with prime contractor s and possibly end customer s EVM resources Leverage the relationship to define and evolve own EVMS practices Position yourself for potential small business set-asides as you will have to provide the leadership in these solutions 27