EVMS Subgroup (EVMSG)

EVMS Subgroup (EVMSG)
June Summer Meeting
Initiative Progress Report
Craig Hewitt
Washington DC
June 9th – 12th, 2014
The Team
Energy Facility Contractors Group
(EFCOG)
Project Management Working Group
(PMWG)
Robert P. Miklos
EFCOG
PMWG
Chair
Earned Value Management System (EVMS) Subgroup Team
Amy D. Basche
EVMS Subgroup
Chair
Richard M. Millikin
Vice Chair
John Belicki
EVMS PMWG
Britton M. Creer
EVMS PMWG
Rudy Jones
EVMS PMWG
Jim Denham
EVMS PMWG
Dan Macias
EVMS PMWG
Buddy Everage
EVMS PMWG
Sarah Morgan
EVMS PMWG
Vicki Frahm
EVMS PMWG
Mike Nosbisch
EVMS PMWG
Craig Hewitt
EVMS PMWG
Kimberly Rapp
EVMS PMWG
DOE Sponsor PMWG
EFCOG Sponsoring Directors
Bosco, Paul - APM
Lehman, Daniel R. – OS
Raines, Robert B. – NNSA
Surash, Jack E. – EM
Sheely, Ken – NNSA
Gioconda, Tom
Stieger, Susan
DOE FMC Arenaz, Mark – DOE-ID
Anita Hirschy
EVMS PMWG
Kathy Roberson
EVMS PMWG
Tom Jaeger
EVMS PMWG
Tony Spillman
EVMS PMWG
2
2014 Summer EFCOG EVMSG
Workshop
 Two-day work shop to review and finalize the EVMSG action items
(thank you MCR/Buddy Everage for hosting the Meeting)
 Welcomed new attendees/members








William Bivens – Sandia National Labs
Jim Denham – CHBWV
Robert Haas – PT&C
Kim Hauer – SRS-URS
Eric Marcantoni – Fluor Government Group
Charles Simpson – WRPS
Robert Sudermann – Fluor Government Group
Arnold Whipple – Flour B&W Portsmouth
 Teamed with OAPM Staff to remain focused on DOE’s top EVMS
priorities (thank you Mel, Bob, Garrett, Mike, for the valuable
insight and perspective)
 Entire EVMSG attended Paul Bosco EVMS Presentation
3
OAPM/EFCOG Teaming
 OAPM Presentation to the EVMSG reiterated:
 The importance of returning project performance to a positive
trend for the DOE complex through:
 Accurate earned value reporting
 Compliance with the ANSI Guidance
 Other topics of discussion included:
 Authorized Unpriced Work (AUW) NTE value and the EAC
 Negotiated, priced, PMB scope no longer authorized to be
performed
 OAPM Management Reserve Guidance
 Alignment Initiatives (DCMA)
 Standardization (Data Call)
 Raw Cost and Schedule File
 New Trends Seen in the Field
4
2014 Initiatives/Action Item Status
 EVMS Certification Timeline White Paper - Completed
 EFCOG EVMS Subgroup Webpage – Completed
 EVMS Tools Sharing (non-Commercial) – Completed
 EVMSG Review of APM Glossary of Terms Handbook – Completed
 PCSD Non-Retribution Reviews – Completed
5
Develop and Maintain an EFCOG
EVMS Subgroup Webpage
 Webpage complaint with the EFCOG requirements
 Includes previous EVMS “Clearing House” data
 Houses EVMSG Guidance Documents/Best Practice/White
Papers
 Linked with the OAPM webpage
6
OAPM Training Snippet Review
 Coordinating with OAPM to complete the review of the most
recent versions
 Final Snippets to be placed on the EVMSG webpage
 Will be used to train contractors and Federal Staff
 New Snippets to be identified as to address emerging issues
7
Best Practices on Developing EAC:
 Apply a standard process for developing EACs for all projects:





CAM/PCE/IPT review remaining schedule activities and determine resources and nonlabor elements needed to complete scope.
Use Staffing Profile to adjust FTEs for work remaining in each Control Account.
Create analysis report that merges staffing profile with BCWS, BCWP, ACWP
information from cost processor.
Provide To-go updates to non-labor elements.
Upload ETCs into cost processor
 Guidance:



AUW: Load scope into ETC in accordance with Guideline #28 for entire value of AUW
that is being negotiated.
Unfunded Scope: Remove ETC for any scope that will not be executed per direction
and place in UB until contract modification is issued.
REA Scope:
 If new scope, ETC is updated simultaneously with the baseline upon completion of
REA negotiations.
 If scope will be executed regardless of the outcome of REA negotiation in order to
meet end objectives of project, scope is added to ETC before REA negotiations are
completed.
8
EFCOG Sponsored CAM Training

Comprehensive CAM Training Material developed for CH2MHill
Hanford and made available to the EFCOG for tailored use. Training
material includes:




All 32 guidelines
Proficiency test
The Statement of work used in development
Additional training material from various other sources will be
collected, cataloged, and made available on the EVMSG Webpage
9
VAR/Corrective Action Best Practice

Variance Analysis to address:




How long the variance condition has existed
Disclosure of the EVT/including any co-mingling
Variance explanation by Cost Element
Discussion on schedule durations, basis of duration, total float,
and or critical path
 Contextual framing of the analysis
 Use of earned value terminology

Corrective Action to address:
 Entry into the Corrective Action Log/Tracking System
 Root Cause Analysis (consistent with the Corrective Action Procedure)
 Specific actions to mitigate recurrence
 Dates corrective action will be implemented and closed
10
Resource Pool for EVMS
Surveillance/Draft MOA

Based on Deputy Secretary of Energy Daniel E. Poneman’s April 12,
2011 “Project Peer Reviews” Memorandum which provides:
 Agreement in principal between “Participating” and “Contributing”
sites, allowing utilization of select resources such that “Indirect
accounts at the contributing sites should cover these allowable
costs.”
 “There should be no contractual or budgetary impediments to
accomplishing these cross program reviews…”
 Contributing and Participating site’s to engage their Contracting
Officer’s/DEO Contracting Officers to ensure agreement prior to
any review activity begins
11
CPR Best Practice



This best practice utilizes a formal preparation and review process to
identify and resolve compliance issues while producing compliant Contract
Performance Reports (CPR) through a demonstrable and repeatable
validation process.
This Best practice uses the verbatim language of the “CONTRACT
PERFORMANCE REPORT (CPR) - NUMBER: DI-MGMT-81466A”
instruction to ensure a consistent, rigorous, and controlled process is used
to prepare and review the CPR.
Benefits:
 Ability to demonstrate the CPR preparation and review process in the
production of contractually compliant CPRs.
 Compliance issues requiring resolution are now documented and
resolved
12
EVMS Data Reliability – White Paper
Reasons EVMS metrics sometimes surprise the customer with
cost/schedule overruns late in the project
1. Inappropriate use of management reserve (MR)

MR being used to delay cost variances until late in the project
2. Non-compliant conversion of planning packages to work packages
3. Aggressive internal replanning practices:



Avoiding schedule variances by pushing work out
Avoiding cost variances by inappropriately applying MR
This practice can render EVM metrics worthless in identifying project status, trends
and predicting the project completion date and cost
4. Reliance on EVM metrics alone (i.e. CPI, SPI and EAC)

Must look at applicable trends and other data available (e.g. risk register)
5. Unrealistic EACs

FPDs should insist on realistic EACs (i.e. don’t allow contractor to stair-step EACs
to the very end of the project)
6. Front-loading level of effort work– produces early optimism and late surprises
7. Granting incentive fee based on CPI and SPI during execution
13
Actions Scheduled for Completion
and New Initiatives

The following action items are in process and are scheduled for
completion in the 4th Quarter of 2014:
 Scope Control/Risk Ownership
 Schedule Guidance and Rolling Wave Planning
 New Initiatives:
 Prepare Cost Element Variance examples for contractor use
 Introduce and emphasize a scheduling faction to the EVMSG to
focus on schedule risk assessment
14
Summary

The EVMSG remains in committed in providing value to the DOE complex
and it’s contractors through:
 Identification and resolution of challenges to accurate and predictive
earned value reporting
 Completing assigned action items on schedule
 Identification and development of Best Practices/Lessons Learned
15

Download Report