eProMT’s approach to Earned Value Management* (EVM) deals specifically with three of the most common challenges facing defense contractors when confronted with EVM contract requirements:

• Most companies deploy program management procedures and practices that are not consistent with the mandates of EVM.  The best practices already built into eProMT’s project budgeting, reporting and performance assessment capabilities are compliant with mandated EVM standards.  For Government Contractors already using eProMT,  full EVM compliance will be very natural and requires adopting just a few additional project management disciplines that are a simple and logical extension of existing practices already deployed in eProMT.

• Contractors using eProMT have a significant advantage when negotiating an EVM Government Contract.  It is during the proposal process that the contractor determines the detailed plan and process for fulfilling the EVM requirements. By understanding the requirements of EVM, a Government Contractor can negotiate the EVM requirements and the appropriate increase in costs it will require.  It is critical that the proposal and subsequent negotiation process reflect well constructed, reasonable commitments on the part of the Government Contractor.  eProMT provides the framework and substance for properly establishing those commitments.  Without eProMT, the General Contractor is at risk of making commitments that will be, at best, very difficult and costly to keep.

• Fulfilling EVM requirements can become overly complicated and burdensome if they are not implemented in a way that balances contract performance risk and EVM process costs.  eProMT’s approach to fulfilling EVM simplifies the process, minimizing support effort while maximizing performance management capabilities to the contractor and confidence on the part of the Government Agency Customer

Whether a Government Contractor embraces EVM because it is a new requirement in doing business with an existing customer or because it makes sense from an internal business point of view, eProMT provides a very simple, no-nonsense roadmap for getting the job done. eProMT’s EVM capabilities, like all of its best practices, are designed to maximize ROI. 

			Contractor's EVM Support Components
Item #		ANSI/EIA-748 Guidelines	Accounting (ERP) System	Program Scheduling Solution	Business Intelligence Solution	Company Procedures & Practices
	ORGANIZATION
1		Define Authorized Work - Work/Resources by WBS				●
2		ID Program WBS/Organization Structure	●			●
3		Integrate Company EVMS Subsystems with WBS/ORG	●	●	●	●
4		ID Org. Overhead Functions/Responsible Mgrs. & Recovery Process	●			●
5		Establish WBS/OBS Integration Matrix/Control Accounts	●	●	●	●
	PLANNING, SCHEDULING & BUDGETING
6		Schedule Work & Establish Interdependencies/Critical Path		●
7		ID Deliverables & Establish Success Criterion		●	●	●
8		Establish/Maintain Time-Phased Budget Baseline @ Control Acct. Level			●
9		ID Authorized Work by Work Cost Element @ Control Acct. Level		●	●
10		ID Authorized Work by Work Packages @ Control Acct. Level		●	●
11		Control Account Budget Must Equal its Component Work/Planning Pkg. Budgets		●	●
12		ID, Budget & Control All Level of Effort Activities	●	●	●	●
13		Establish Indirect Exps. Recovery Rates/Apply to Program Budget	●		●	●
14		ID Management Reserves & Undistributed Budget			●	●
15		Establish Program Target Cost as Sum of Established Budgets & Management Reserve			●	●
	ACCOUNTING CONSIDERATIONS
16		Record Direct Costs Against Budgeted Control Accounts	●		●	●
17		Each Control Account Must Sum Into a Unique WBS Element	●		●	●
18		Each Control Account Must Sum Into a Unique ORG Element	●		●	●
19		Record All Indirect Exps. That Will Be Allocated to Program	●		●	●
20		ID All Unit, Equivalent Unit or Lot Costs to be Applied to Program	●		●	●
21		Accurate Materials Cost Accumulation by Control Account	●		●	●
	ANALYSIS & MANAGEMENT REPORTS
22		Monthly Reporting of BCWS, BCWP, ACWP @ Control Account Level			●	●
23		Monthly Reporting/Explanation of Schedule/Cost Variances @ Control Account Level			●	●
24		ID/Explain Any Significant Variances in Budgeted vs. Applied Indirect Exps.			●	●
25		Summarize Performance Variances @ Control Acct. Level Up the WBS/ORG Structure			●	●
26		Document/Implement Management Actions as a Result of EVM Analysis			●	●
27		Develop Revised Cost Estimates & Compare to Performance Measurement Baseline			●	●
	REVISIONS & DATA MAINTENANCE
28		Incorporate Authorized Program Changes in a Timely Manner	●	●	●	●
29		Record & Reconcile All Budget Changes to Original Budget			●	●
30		Limit Retroactive Budget Changes to Error Corrections Only			●	●
31		Prevent all Program Budget Revisions Except for Authorized Changes			●	●
32		Provide Periodic Reports of Any Changes to Performance Measurement Baseline			●	●

( Printer Friendly Version )