EVM at MDA

Dave Meltondavid.melton@mda.mil

1 Feb 07

26 Jan 07

CONTRACT PERFORMANCE SUMMARY REPORT

Dollars in millions except where noted Data as of month-end: Nov 06

Contractor

IBR: Most Recent or Projected Target Price

Contract Funding to Date

Contract Budget

Base (CBB) % Complete6 mo CPI

CPI Trend

6 mo SPI

DO's "Most Likely" (Overrun) / Underrun at

CompletionFY07

ImpactFY08

Impact

Boeing Jun-06 $3.7B $3.2B $3.4B 80% 0.91 0.95 ($191) Minimal None

LM Feb-07 $936 $797 $586 89% 0.96 1.00 ($12) Minimal None

Raytheon Feb-07 $1.6B $1.4B $114 87% 0.86 0.91 ($13) None None

LM Mar-07 $768 $628 $605 65%

Raytheon Jul-07 $955 $739 $831 68% 1.04 1.37 $0 None None

Boeing Dec 06 $13.7B $12.6B $12.7B 74% 0.86 1.13 ($1,421) Minimal Minimal

NG 2QFY07 $6.3B $613 $5.4B 7% 0.99 0.99 $0 None None

LM 2QFY07 $141 $40 $123

NG 2QFY07 $882 $863 $863 68% 0.45 0.76 ($180) Minimal Minimal

LM Apr-07 $814 $566 $708 56% 1.01 0.94 ($12) None None

LM Jan-06 $4.8B $4.2B $4.3B 83% 0.82 0.94 ($336) Minimal Minimal

Total DO (Overrun) / Underrun Projection: ($2,165)

As a result of program restructuring, CPR reporting has been suspended.

Insufficient baseline plan precludes determination of earned value trend metrics or FY funding impacts.

Contract Price & Funding Earned Value Management (EVM) DataEVM/ Budget Integration

Contract & Baseline Maintanance

EVM Activities / Improvements

• Establish process / forum for Communicating EVM Contractual Requirements•Program offices, PCOs, Program Element Monitors

• Communicating EVM to MDA Senior Mgmt.• EAC Review• MDA Program Change Board (PCB)• Program Management Review •EVM/Budget Integration

•FY Funding compared to Time-phased ETC•EVM / Schedule Integration

•Related directly to FY Funding Limits and Large ETCs

•Support of and Improvement in IBR and BMR Process

• Support for DCMA• DCMA-Conducted EVMS Reviews• Contractor Joint Surveillance Reviews• Review of MOAs/Surveillance Reports• DCMA Immersion Day

ProgramEVM Contract Requirements

Baseline Dev/ IBR/Maintenance

Analysis/ Integration

EV Management Systems DCMA Training

BoeingGREEN GREEN YELLOW GREEN GREEN GREEN

LMYELLOW YELLOW YELLOW YELLOW GREEN YELLOW

RaytheonYELLOW YELLOW GREEN GREEN GREEN YELLOW

LMYELLOW YELLOW YELLOW YELLOW YELLOW YELLOW

RaytheonGREEN GREEN GREEN GREEN GREEN GREEN

BoeingGREEN GREEN GREEN YELLOW GREEN GREEN

NGGREEN YELLOW GREEN GREEN YELLOW YELLOW

NGGREEN GREEN GREEN YELLOW YELLOW YELLOW

LMGREEN YELLOW GREEN GREEN GREEN YELLOW

NGGREEN GREEN GREEN GREEN GREEN GREEN

LMGREEN GREEN GREEN YELLOW GREEN GREEN

LMGREEN GREEN GREEN GREEN GREEN GREEN

All YELLOWs indicate areas that need improvement. Selected GREEN explanations indicate "best practices" in the relevant EVM focus areas.

MDA EVM HEALTH FACTORSFocus Areas

MDA EVM HEALTH FACTORS

Boeing Y Y

Y

Y

Y

Y

Y

Y

Y

LM Y

Y

Y

Y

Y

Y

Boeing

G

Boeing Y

Baseline Development / IBR / Baseline Maintenance: IBR process needed to ensure continuous integration of scope, schedule, resources, and risk. LM is planning a Joint Surveillance Review for Mar 07.

DCMA: Program Office has not developed an MOA with DCMA for their support.

Analysis / Integration: Insufficient baseline planning and EVM data for trend analysis, EAC projections, and budget integration analysis. EV Management Systems: Need more timely baseline development process and timely incorporation of subsequent changes into the baseline.

EV Management Systems: CPR Staffing format has erroneous information for "next month" forecast. Contractor is not providing EAC range on CPR Format 1.

Baseline Development / IBR / Baseline Maintenance: MDA Best Practice. Thorough IBR process in CY06 conducted in phases and with both prime and major subcontractors. Large technical-based teams preparing through documentation reviews prior to IBR and formulating advance questions for contractor control account managers (CAMs). During IBR, conducting interviews on 100% of CAMs, conducting schedule "deep dives", getting DCMA thoroughly involved, and integrating technical baseline evaluations with the risk management program. Action items and new risk areas clearly structured with specific dates, dollars assigned and/or mitigation plans. Good emphasis on baseline maintenance/change process procedures to be applied after the IBR.

Baseline Development/ IBR/ Baseline Maintenance: Latest program-wide IBR conducted in FY04. IBR scheduled for Feb 07.

Baseline Development/ IBR/ Baseline Maintenance: Latest program-wide IBR conducted in FY04. Recommend IBR per MDA and DoD guidance.

Contract Requirements: EVM implementation policies, baselining requirements, and CPR reporting should not be waived.

Analysis: The SPO does not provide an EAC, but rather yields to the contractor's EAC.

Analysis: Large amount of LOE on contract.

Contract Requirements: Cost Performance Index (CPI) metric used in Award Fee Plan Criteria.

EV Management Systems: Mis-classification of work type results in erroneous cost and schedule variance information, and potentially leads to erroneous EAC conclusions.Training: IBR/Baseline Maintenance training recommended.

Training: IBR/Baseline Maintenance training to be conducted as part of Feb 07 IBR.

Training: EVM, IBR and Baseline Maintenance training recommended for element office and contractor.

Contract Requirements: Cost Performance Index (CPI) metric used in Award Fee Plan. The CPR is generally submitted 2 weeks beyond DOD/ MDA normal reporting times.

LM

Raytheon

NGY

Y

Y

NG Y

Y

LM

Y

Y

NG G

LM Y

LM G

G

EV Management Systems: Sandia Labs is implementing an EVMS. Lincoln Labs does not use EVMS and is not providing a CPR.

Analysis: Program integration teams (scheduling, EVM, budgeting, estimating) involved in the analysis process.

DCMA: Excellent MOA, use of DCMA, and Scorecard process.

Training: IBR / Baseline Maintenance training required.

Analysis: NG CPR Format 5 provides an excellent financial overview, program accomplishments; baseline changes (BCRs) as well as variance analysis which enable the government to do trend/EAC analysis.

Baseline Development / IBR / Baseline Maintenance: IBR has not been conducted. Baseline needs to be developed and IBR conducted. Requirements-based changes can then be incorporated into the baseline in a timely manner as required by the contractor's EVM System.

DCMA: There is a MOA in development for DCMA support on this program and a DCMA representative has been assigned.

Baseline Development / IBR / Baseline Maintenance: DOB did not participate in FY06 IBRs. Include in FY07 IBR process. IBRs for newly awarded Delivery Orders anticipated in 2-3QFY07.

DCMA: There is no MOA for DCMA support on the JNIC program.

Training: EVM, IBR, and Baseline Maintenance Training recommended prior to or in conjunction with IBRs in Spring of 07.

Training: IBR / baseline maintenance training is required - SPO has requested support and DOB is working with them to develop training and IBR implementation.

MDA EVM HEALTH FACTORS