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**U.S. Department of Transportation**

**Federal Aviation Administration**

GUIDE FOR PREPARING THE

FEDERAL AVIATION ADMINISTRATION

OMB EXHIBIT 300s

Final

Version 3.2

February 2007

  ------------------ ------------------ ---------------------------------
  **Version Number** **Version Date**   **Changes**

  Version 1.0 Final  01/25/2005         Exhibit 300 guidance (FY2006).

  Version 2.2        11/04/2005         Initial draft with updates to
  Preliminary Draft                     Exhibit 300 guidance (FY2007).

  Version 2.3 Draft  11/09/2005         Complete draft with updates to
                                        Exhibit 300 guidance (FY2007).

  Version 2.4 Draft  11/09/2005         Completed draft with updates to
                                        Exhibit 300 guidance (FY2007) and
                                        highlighted comments

  Version 2.5.1      11/30/2005         FAA comments from 11/22/05
  Draft                                 meeting and inputs were
                                        incorporated.

  Version 2.5.2      12/5/2005          Added comments from K. Kepchar,
  Advanced Draft --                     T. Burke and Terminal.
  for ASAG meeting                      
  on 12/07/05                           

  Version 2.5.3      12/9/2005          Incorporated additional comments
  Draft for ASAG                        received after ASAG meeting on
  review                                12/7/05.

  Version 2.5.4      1/6/2006           Incorporates additional comments
  Draft                                 from Brandi Ingargiola, Darren
                                        Ash and Dave Woodson and some
                                        editorial clarifications.

  Version 2.5.4      2/7/2006           Incorporates SoS revisions from
  Final Draft                           Sue Fedor and corrected URLs.

  Version 3.0        01/2007            Revised based on OMB BY08 A-11
                                        Guidance.

  Version 3.1        02/2007            Incorporates comments from the
                                        VMO Office (G. Carnaroli, V.
                                        Viets, C. Bumblis, D. Milano).

  Version 3.2        02/2007            BAE QA Review -- A. Evans.
  ------------------ ------------------ ---------------------------------

**Note**: This guide is a living document. Several sections of this
guide are subject to change prior to the end of the fiscal year due to
OMB and other government wide guidance changes as well as any changes in
FAA guidelines and processes.

**Table of Contents**

[1. Exhibit 300 Preparation Overview
1](#exhibit-300-preparation-overview)

[1.1 Introduction 1](#introduction)

[1.2 Purpose 1](#purpose)

[1.3 Acquisition Management System 2](#acquisition-management-system)

[1.4 Exhibit 300 Submission Process 3](#exhibit-300-submission-process)

[1.5 Organization of the Guide 4](#organization-of-the-guide)

[1.6 Scoring Criteria 4](#scoring-criteria)

[1.7 General Writing Rules 14](#general-writing-rules)

[1.8 Lifecycle Terminology 15](#lifecycle-terminology)

[2. Part I: Summary Information and Justification
1](#part-i-summary-information-and-justification)

[2.1 Introduction 1](#introduction-1)

[2.2 Section A: Overview 1](#section-a-overview)

[2.3 Section B: Summary of Spending 7](#section-b-summary-of-spending)

[2.4 Section C: Acquisition/Contract Strategy
9](#section-c-acquisitioncontract-strategy)

[2.5 Section D: Performance Information
13](#section-d-performance-information)

[2.6 Section E: Security and Privacy
16](#section-e-security-and-privacy)

[2.7 Section F: Enterprise Architecture (EA)
20](#section-f-enterprise-architecture-ea)

[3. Part II: Planning, Acquisition and Performance Information
1](#part-ii-planning-acquisition-and-performance-information)

[3.1 Introduction 1](#introduction-2)

[3.2 Section A: Alternative Analysis 1](#section-a-alternative-analysis)

[3.3 Section B: Risk Management 3](#section-b-risk-management)

[3.4 Section C: Cost and Schedule Performance
5](#section-c-cost-and-schedule-performance)

[4. Part III: Operation and Maintenance Investments
1](#part-iii-operation-and-maintenance-investments)

[4.1 Introduction 1](#introduction-3)

[4.2 Section A: Risk Management 1](#section-a-risk-management)

[4.3 Section B: Cost and Schedule Performance
2](#section-b-cost-and-schedule-performance)

[APPENDIX A - CROSSWALK OF THE EXHIBIT 300 SECTIONS
A-1](#appendix-a---crosswalk-of-the-exhibit-300-sections)

[APPENDIX B -- OPERATIONAL ANALYSIS AND PIRs
B-1](#appendix-b-operational-analysis-and-pirs)

[APPENDIX C -- USEFUL WEB LOCATIONS
C-1](#appendix-c-useful-web-locations)

[APPENDIX D -- GLOSSARY OF ESSENTIAL TERMS
D-1](#appendix-d-glossary-of-essential-terms)

[APPENDIX E -- EVM TERMS E-1](#appendix-e-evm-terms)

[APPENDIX F -- FEDERAL ACQUISITION REGULATION
F-1](#appendix-f-federal-acquisition-regulation)

[APPENDIX G -- AMS PERFORMANCE BASED PAYMENT CLAUSES
G-1](#appendix-g-ams-performance-based-payment-clauses)

# 1. Exhibit 300 Preparation Overview

## 1.1 Introduction

The purpose of the Exhibit 300 to help agencies plan, budget, procure,
and manage their capital assets and report this information to the
Office of Management and Budget (OMB). Per OMB's Capital Programming
Guide dated June 2006, "capital assets include but are not limited to,
land, (including parklands), structures, equipment including fleet, and
intellectual property (including software) that are used by the Federal
Government and have an estimated useful life of two years or more."

As stated in OMB's Circular A-11, Federal agencies must annually submit
to OMB and Congress the Exhibit 300 as an appendix to their budgets. In
order to receive Congressional program funding each year, the Federal
Aviation Administration (FAA) must show through the Exhibit 300's that
investments are managed using the best available practices and that they
contribute to the achievement of FAA's strategic goals and objectives.
The Exhibit 300 serves as FAA's opportunity to demonstrate to budget
decision makers why FAA's investments are critical to the air traffic
community. It is important to remember that the primary purpose of the
Exhibit 300 is to effectively convey accurate information about the
investment, including its impact on the business, its status, and the
management processes used to execute it and monitor its performance.
Understanding and complying with the information requirements of the
Exhibit 300 are key not only to ensuring that the correct information is
reported, but also to ensuring that lifecycle management and investment
selection, control and evaluation processes are performed correctly to
enable the best investment decisions.

The FAA Acquisition Management System (AMS) calls for the use of Exhibit
300 as the approval document for agency investments. Each Exhibit 300
that is submitted to OMB must be consistent with the most recently
approved Joint Resource Council (JRC) baseline.

## 1.2 Purpose

The purpose of this guide is to provide guidance for preparing the
Exhibit 300. As the cornerstone of key investment decisions, the Exhibit
300s must be filled out completely, clearly, and concisely. In the past
FAA has risked reduced funding for major NAS F&E investments by as much
as \$300 million because of poor or not so compelling business cases. In
referring to this, Administrator Marion Blakey stated in the BY2005
Exhibit 300 kickoff meeting, "the inability to tell the story of why
these investments are important cost us dearly.\"

This guide addresses common issues that arise during both the writing
and scoring process of the Exhibit 300. In addition to general guidance,
detailed information is provided for each section of the Exhibit 300. If
additional information or clarification is needed, the FAA Value
Management Office (VMO) maintains an updated list with contact
information for the Subject Matter Experts (SMEs) which can be found in
the Exhibit 300 portal:
[https://nase.amc.faa.gov](https://nase.amc.faa.gov/).

**Note**: This URL will not work from outside the FAA intranet without a
valid FAA user id and password. To obtain access to this URL contact
Anona Day at Anona.Day@faa.gov.

## 1.3 Acquisition Management System

The Acquisition Management System (AMS) establishes policy and guidance
for all aspects of lifecycle acquisition management for the FAA. It
defines how the FAA manages its resources - money / people / assets - to
fulfill its mission. The objectives of the policies are to increase the
quality, reduce the time, manage the risk, and minimize the cost of
delivering safe and secure services to the aviation community and flying
public. AMS policies promote these objectives through partnerships among
service providers and customers to ensure FAA plans, programs, and
budgets address priority aviation needs.

The AMS consists of numerous policies and guidelines that describe
investment management and lifecycle management requirements,
responsibilities, processes, and documentation, including those for
investment analysis and decisions. Electronic copies of the AMS policies
and guidelines are available on
[http://fast.faa.gov](http://fast.faa.gov/).

OMB uses the terms "Planning, Acquisition, and Maintenance" to define
life-cycle funding phases in the Summary of Spending (SoS) Table and
other sections of the Exhibit 300. The table below maps OMB CPIC and
Funding Phases to FAA AMS Lifecycle Phases.

+---------------------+-----------------------+------------------------+
| **OMB CPIC Phase**  | **Summary of Spending | **FAA AMS Lifecycle    |
|                     | Funding Phase**       | Phase**                |
+---------------------+-----------------------+------------------------+
| Select              | Planning              | Mission Analysis       |
|                     |                       |                        |
|                     |                       | Investment Analysis    |
+---------------------+-----------------------+------------------------+
| Control             | Acquisition (DME)     | Solution               |
|                     |                       | Implementation         |
+---------------------+-----------------------+------------------------+
| Evaluate            | Maintenance           | In-Service             |
|                     | (Steady-State)        |                        |
+---------------------+-----------------------+------------------------+

Table 1: CPIC/AMS Mapping

All sections of the Exhibit 300 must be completed prior to submittal to
OMB. It is very important that investments in the planning phases that
have not completed an initial investment analysis or obtained a final
investment decision by the JRC clearly state throughout the Exhibit 300
that the information is preliminary. For new investments it's important
that the funding for the phase or segment that covers that budget year
be approved by the JRC prior to the OMB Exhibit 300 being submitted to
OMB; otherwise the funding may not be approved.

The Exhibit 300 is also used at JRC investment decision meetings. The
JRC is the FAA executive investment review board that makes all the
investment decisions for investments that are required to submit Exhibit
300s to OMB and for other investments designated for JRC review based on
agency specific criteria.

The Exhibit 300 becomes the official baseline document for an investment
once it is approved by the JRC. This baseline cannot be changed without
JRC approval. The JRC has several investment review responsibilities,
depending on the lifecycle phase of the project. Figure 1 illustrates
the investment analysis phases and decision points which are conducted
to ensure FAA\'s critical needs, are satisfied by practical and
affordable solutions.

Figure 1: JRC Decisions during the FAA Lifecycle Management Process

The AMS guidance found in the FAST web site provides detailed guidance
on investment analysis processes, decisions, and documentation. The AMS
also explains who is responsible for the different investment decisions.

The cover sheet that includes a list of required signatures for the
Exhibit 300 PB is included in Appendix B of the AMS policy which can be
found on the FAST web page at:
<http://fast.faa.gov/docs/exhibit300.doc>.

## 1.4 Exhibit 300 Submission Process

As part of the annual budget process FAA submits to OMB and Congress an
annual OMB Exhibit 300 for each of its major investments. The list of
which specific FAA investments must submit an Exhibit 300 is coordinated
with, and agreed to, annually with OMB. As part of the annual submission
process FAA, in coordination with DOT, has implemented a process to
assist FAA investment programs in preparing Exhibit 300s that provide
comprehensive and up-to-date information about their investments. The
FAA Value Management Office (VMO) and Subject Matter Experts (SMEs) are
available to provide guidance in specific areas of the Exhibit 300. The
VMO maintains an updated list of Exhibit 300 SMEs and other contacts on
the FAA Exhibit 300 portal located at
[https://nase.amc.faa.gov.]{.underline} The VMO also provides annual
training and internal independent scoring of the completed Exhibit 300s.
Prior to being submitted to OMB Exhibit 300s are submitted for internal
FAA scoring, review, and approval.

-   The OMB Exhibit 300 must be updated at least annually to depict
    upcoming near term activities identified in the program baseline and
    report the status of these activities prior to submission of the
    Exhibit 300 to OMB.

-   The baseline information documented in the OMB Exhibit 300 must be
    consistent with the latest JRC approved baseline. Changes cannot be
    made to the OMB Exhibit 300 baseline information without first
    having rebaseline approval from the JRC.

-   The OMB Exhibit 300 would need to be updated to incorporate the
    results of any JRC decision that has taken place since the last
    annual or official submission to OMB.

## 1.5 Organization of the Guide

The Exhibit 300 consists of four parts:

> Part I: Summary Information and Justification
>
> Part II: Planning, Acquisition and Performance Information
>
> Part III: Operation and Maintenance Investments
>
> Part IV: Planning for E-Gov and Lines of Business Oversight

Part I includes Overview, Summary of Spending, Acquisition/Contract
Strategy, Performance, Security and Privacy and EA information for all
investments. Part II includes Alternative Analysis, Risk Management and
Cost/Schedule information for investments in the planning, full
acquisition or mixed lifecycle phases. Part III includes information on
investments that are completely steady state. No FAA investments meet
the criteria for Part IV.

This guide covers the topics of the Exhibit 300 in the same order as the
OMB Exhibit 300 template. The appendices at the end of this guide
include a table that summarizes the relationships between the sections
and a list of useful web sites and references as well as more detailed
information and guidance on various Exhibit 300 topics.

## 1.6 Scoring Criteria

As part of their evaluation process, DOT and OMB score all Exhibit 300s.
These scores are critical, as they play a large part in agency funding
decisions. Business cases are scored on a scale of one to five, with
five being the highest score. The scores are factored into funding
decisions as follows:

-   Investments scoring 5 and meeting program requirements are
    automatically recommended for funding.

-   Investments scoring an overall 4, meeting performance goals, and
    scoring a 4 on the performance based management criteria and
    security, will be recommended for funding, but will be instructed to
    continue improvements in the areas identified as needing work.

-   Investments scoring 3 or below have the opportunity to improve to a
    4 or degrade to a 2 rather easily.

-   Investments scoring a 2 or below are not recommended for funding.

In order to develop the overall scores, scores are assigned to each of
ten distinct scoring areas. For the BY09 budget process, those scoring
areas are:

-   Supports the President's Management Agenda (PMA)

-   Project Management (PM)

-   Acquisition Strategy (AS)

-   Performance Information (PI)

-   Security (SE)

-   Privacy (PR)

-   Enterprise Architecture (EA)

-   Alternatives Analysis (AA)

-   Risk Management (RM)

-   Performance-Based Management (PB)

The following figure illustrates how the overall scores are computed.

![](media/image3.wmf){width="5.610416666666667in"
height="3.446527777777778in"}

**Note**: While OMB has identified these ten areas, they have not
provided scoring guidance. Therefore, this document provides scoring
guidelines to be used at FAA. These guidelines are based on a
combination of the BY07 guidance and experience with the BY08 OMB
Passback.

1.  **Overall Emphasis Areas**

While the business case does receive scores for each of the individual
sections, the scores also reflect OMB's review of the document from a
holistic perspective. The information provided in all the sections must
be consistent and complete. In addition, the most successful business
cases clearly demonstrate that the investment is fully aligned with
OMB's goals and objectives. The following emphasis areas should be
clearly addressed throughout the business case.

-   Strategic View

    -   There should be a clear tie into FAA and DOT strategic goals --
        this starts with the investment description, and continues with
        performance goals clearly related to overall mission
        accomplishment

-   Focus on Results

    -   Performance Goals and Measure must be clear, measurable,
        attainable, and address order of magnitude improvements

-   Strong Project Management

    -   PM must be qualified at the level of the investment

    -   Earned Value Management, with variances \< 10%

    -   Solid corrective action plans if needed

    -   Individual PM cannot lead multiple, major investments

-   Modernization plans are key for Steady State investments

    -   The description should include future plans for meeting the
        business need

    -   Provide details on operational analysis

    -   The Alternatives Analysis should describe future plans, and not
        the decision to make the original investment

-   Security is critical

    -   Need dates for Security Plan, C&A, and any periodic updates --
        including planned dates for new modifications/enhancements

    -   Security and Privacy information must be consistent

-   Risk Management

    -   Must demonstrate active risk management

    -   Risk Management Plan and Risk Register must be current

-   Enterprise Architecture

    -   This is tied to the EA assessments

    -   Ensure the investment [is in]{.underline} the Agency target
        architecture

    -   Investments must be approved by the EA committee

    -   Increasing emphasis on component reuse, as shown in SRM and TRM
        tables

-   OMB scores can reflect more than what's in the Exhibit 300

    -   Must ensure consistency with IG Reports, FISMA reports, program
        documentation, etc.

        1.  **Supports the President's Management Agenda (PMA)**

**Scoring Criteria:**

5 - This is a collaborative investment that includes industry, multiple
agencies, state, local, or tribal governments, uses e-business
technologies, and is governed by citizen needs. If the investment is a
steady state investment, then operational analysis is being conducted to
identify any need/opportunities for modernization, consolidation, and
related e-Gov strategy issues. If appropriate, this investment is fully
aligned with one or more of the President\'s e-Gov initiatives.

4 - This is a collaborative investment that includes industry, multiple
agencies, state, local, or tribal governments, uses e-business
technologies though work remains to solidify these relationships. If
investment is in steady state, then operational analysis is being
conducted to identify any need/opportunity for modernization,
consolidation, and related e-Gov strategy issues but needs work in order
to strengthen the analysis. If appropriate, investment supports one or
more of the President\'s e-Gov initiatives, but is not yet fully
aligned.

3 - This is not a collaborative investment though it could be and much
work remains to strengthen the ties to the President\'s Management
Agenda. If this is a steady state investment and no operational analysis
is evident, this investment will have a difficult time securing
continued or new funding from OMB. If appropriate, this investment
supports one or more of the President\'s e-Gov initiatives but alignment
is not demonstrated.

2 - This is not a collaborative investment and it is difficult to
ascertain support for the Agenda Items (AI). If this is a steady state
investment, then no operational analysis is being performed or is
planned.

1 - There seems to be no link to the AI and e-Gov strategy.

**Critical Success Factors:**

-   Collaboration -- investment should include multiple agencies, state,
    local, or tribal governments

-   Supports the President's Management Agenda by addressing redundancy
    or reuse

-   Investment is governed by citizen needs

-   Clearly supports the Federal Enterprise Architecture, as
    demonstrated in both the description and the EA tables

-   If appropriate, this investment is fully aligned with one or more of
    the President\'s e-Gov initiatives

**Common Pitfalls:**

-   No discussion of collaboration or eliminating redundancy

-   Doesn't give context or clearly describe what investment is

-   No clear boundaries on investment -- the investment seems to have an
    "identity crisis"

    1.  **Project Management (PM)**

**Scoring Criteria:**

5 - Project is very strong and has resources in place to manage it.

4 - Project has few weak points in the area of PM and agency is working
to strengthen PM.

3 - Much work remains in order for PM to manage the risks of this
project.

2 - There is some understanding of PM for this project but understanding
is rudimentary.

1 - There is no evidence of PM.

**Critical Success Factors:**

-   Project is very strong and has resources in place to manage it.

-   Qualified Project Managers are in place and successfully managing
    the project

-   Risk is being managed, and milestones are within acceptable variance

**Common Pitfalls:**

-   The same individual is managing multiple major investments

-   The Project Manager is not qualified at the level of the investment

-   Contact information is not provided for the project managers

-   No clear consistency among the different sections for project
    management, especially lifecycle costs shown in the Alternatives
    Analysis, discussion in the Risk Assessment, and the Cost and
    Schedule Performance sections

-   Missing or inadequate EVM information

-   Missing or inadequate Operational Analysis information

-   Investment has unacceptable cost, schedule, and/or performance
    variances

-   Project managers appear to rebaseline rather than report variances

    1.  **Acquisition Strategy (AS)**

**Scoring Criteria:**

5 - Strong Acquisition Strategy that mitigates risk to the Federal
government, accommodates Section 508 as needed, and uses contracts and
statements of work (SOWs) that are performance based. Implementation of
the Acquisition Strategy is clearly defined.

4 - Strong Acquisition Strategy that mitigates risk to the Federal
government accommodates Section 508 as needed, uses contracts and SOWs
that are performance based. Acquisition strategy has very few weak
points which agency is working to strengthen, and the implementation of
AS is clearly defined.

3 - Acquisition strategy does not appear to successfully mitigate risk
to the Federal government, accommodates Section 508 as needed, much work
remains to solidify and quantify the AS, and contracts and SOWs do not
appear to be performance based.

2 - Acquisition strategy does not appear to successfully mitigate risk
to the Federal government, does not accommodate Section 508, does not
appear to use performance based contracts and SOWs, and there is no
clear implementation of the acquisition strategy.

1 - There is no evidence of an acquisition strategy.

**Critical Success Factors:**

-   The Acquisition Strategy table is consistent with the Summary of
    Spending -- it identifies contracts over the same period of time,
    and the dollar amounts are consistent

-   There is a clear mapping between contract and project
    milestones/costs, with project milestones appropriately attributed
    to the various contracts

-   The Acquisition Strategy table is consistent with the project
    milestones, alternatives analysis, and performance goals, as
    appropriate

-   There is a strong Acquisition Strategy that mitigates risk to the
    Federal government

-   The investment accommodates Section 508

-   Contracts and statements of work (SOWs) are performance based

-   Implementation of the Acquisition Strategy is clearly defined

**Common Pitfalls:**

-   There is no single, clear acquisition strategy for the investment

-   Performance-based contracts are not used, and:

    -   There is no plan for transitioning to performance-based
        contracts

    -   There is no adequate justification for retaining current
        contract type

-   Government risk associated with using T&M contracts is not fully
    addressed

-   Contracts/contract types are not tied to the Summary of Spending or
    Cost and Schedule Performance tables

-   Qualification levels are not shown for Contracting Officers, or CO's
    are not qualified for the investment

    1.  **Performance Information (PI)**

**Scoring Criteria:**

5 - Performance goals are provided for the agency and are linked to the
annual performance plan. The investment discusses the agency's mission
and strategic goals, and performance measures are provided.

4 - Performance goals are provided for the agency and are linked to the
annual performance plan. The investment discusses the agency's mission
and strategic goals, and performance measures are provided. Some work
remains to strengthen the performance goals.

3 - Performance goals exist but the linkage to the agency's mission and
strategic goals is weak.

2 - Performance goals are in their initial stages and are not
appropriate for the type of investment. Much work remains to strengthen
the performance goals.

1 - There is no evidence of performance goals for this investment.

**Critical Success Factors:**

-   Performance Goals are:

    -   provided for the agency,

    -   linked to the annual performance plan, and

    -   included in the project discussion of the agency mission and
        strategic goals

-   Performance measures/actual results are tracked across the life of
    the project.

-   There is consistency between all sections of the business case,
    regarding the performance gap the investment is addressing, how the
    investment is supposed to close the gap, and how business is
    actually improving once the investment has been fielded

-   The investment will provide/is providing order of magnitude
    improvements

**Common Pitfalls:**

-   No clear tie to agency strategic goals

-   "Goals" are either project milestones or technology measures

-   Measures focus on "Outputs" rather than "Outcomes"

-   Metrics are vague

    -   Avoid terms such as "significant, better, improved"

    -   Quantify everything that can be quantified

-   "Planned Improvement Goal" isn't a real improvement

    -   OMB is looking for significant, order-of-magnitude improvements

-   Investment uses non-performance-based contracts

    -   This can limit possibility of real change and improvement

-   Metrics aren't meaningful

-   Benefits are not clearly attributable to the specific investment

-   Actual results are not provided

    1.  **Security (SE)**

**Scoring Criteria:**

5 - Security issues for the investment are addressed, all questions are
answered. Security detail is provided about the individual investment
throughout the lifecycle to include budgeting for SE.

4 - Security information for the investment is provided but there are
weaknesses in the information that need to be addressed.

3 - Security information for the investment is provided but fails to
address the minimum requirements.

2 - Security information points to an overall Agency Security Process
with little or no detail at the investment level.

1 - There is no security information provided for the investment.

**Critical Success Factors:**

-   Security issues for the project are addressed and all questions are
    answered

-   Security controls are tested annually

-   Continuity of Operations Plans (COOPs) are tested annually

-   For systems in planning, the certification and accreditation (C&A)
    will be completed prior to putting the system into production

-   For operational systems, the C&A was completed using NIST 800-37
    guidelines

-   For operational systems, the C&A was completed within the last three
    years, or when the last major modification was fielded, whichever is
    later

-   Security detail is provided about the individual project throughout
    the lifecycle to include budgeting for IT Security

-   Ensure security is planned from the outset and throughout the
    investment lifecycle

**Common Pitfalls:**

-   Not answering the question about what weaknesses additional funding
    is needed for

-   Not providing dates for when the security plans, C&A and other
    security activities and controls were completed or descriptions of
    plans for completing them

-   Security and maintenance costs are underestimated:

    -   Security costs should include software, government labor, C&A
        costs for implementation and maintenance of the system,
        intrusion detection

    -   Maintenance costs should not be straight-lined, but should
        account for increasing costs of maintaining and securing older
        technologies and interfaces

-   Not including or at least describing security costs paid by other
    organizations that are attributable to this system -- for example
    for C&A processes or periodic testing

-   Having C&As that are over 3 years old

    1.  **Privacy (PR)**

**Scoring Criteria:**

5 - Privacy issues for the investment are addressed, all questions are
answered, and a privacy impact assessment is provided in appropriate
circumstances. Privacy detail is provided about the individual
investment throughout the lifecycle to include budgeting.

4 - Privacy information for the investment is provided but there are
weaknesses in the information that need to be addressed.

3 - Privacy information for the investment is provided but fails to
address the minimum requirements.

2 - Privacy information points to an overall Agency Process with little
or no detail at the investment level.

1 - There is no privacy information provided for the investment.

**Critical Success Factors:**

-   Privacy issues for the project are addressed, and all questions are
    answered

-   The business case identifies a point of contact for Privacy for the
    investment; this is typically someone who participated in the
    privacy impact assessment, rather than an agency-level Privacy
    office

-   A privacy impact assessment is provided if the system is new

-   The systems listed in the Privacy table are identical to the systems
    listed in the two Security tables

**Common Pitfalls:**

-   Not providing contact information for the Privacy point of contact

-   Using different system names in the Security and Privacy tables, or
    not including all of the systems that are shown in the two Security
    tables

-   Not providing a PIA if required

    1.  **Enterprise Architecture (EA)**

**Scoring Criteria:**

5 - This investment is included in the Agency EA and CPIC process.
Project is mapped to and supports the Federal Enterprise Architecture
and is clearly linked to the FEA Reference Models (BRM, PRM, SRM, and
TRM). BC demonstrates the relationship of the investment to the
business, data, application, and technology layers of the EA.

4 - This investment is included in the agency's EA and CPIC process.
Investment is mapped to and supports the Federal Enterprise
Architecture. Investment is clearly linked to the BRM but work is
continuing to map the investment to the PRM, SRM, and TRM. BC is weak in
demonstrating the relationship of the investment to the business, data,
and application, and technology layers of the EA.

3 - This investment is not included in the agency's EA and CPIC process,
was not approved by the agency EA committee, or does not link to the
FEA. The business case demonstrates a lack of understanding on the
layers of the EA (business, data, application, and technology).

2 - While the agency has an EA framework, it is not implemented in the
agency and does not include this investment.

1 - There is no evidence of a comprehensive EA in the agency.

**Critical Success Factors:**

-   The investment is mapped to and supports the Federal Enterprise
    Architecture and clearly links to the FEA Reference Models (BRM,
    PRM, SRM, and TRM).

-   The SRM table includes all components, and appropriately identifies
    reuse, names of reused components, and overall percentages

-   The TRM table shows the technology used for every component
    identified in the SRM table, and does not include any items that are
    not listed in the SRM table

-   The investment is not duplicative

-   The investment is an agency priority, and is in the transition
    strategy, if appropriate

**Common Pitfalls:**

-   No clear tie between the investment and the EA

-   Investment is Steady State but not included in the Transition
    Strategy

-   No clear mapping to the BRM; performance gap is not clear

-   PRM metrics are vague or trivial

-   SRM and TRM mappings are incomplete or inconsistent with other
    Agency investments and/or the Department models

-   SRM table does not include percentages allocated to each component

    1.  **Alternatives Analysis (AA)**

**Scoring Criteria:**

5 - AA includes three viable alternatives; alternatives were compared
consistently; and reasons and benefits were provided for the alternative
chosen.

4 - AA includes three viable alternatives, however work needs to
continue to show alternatives comparison, and support must be provided
for the chosen alternative.

3 - AA includes fewer than three alternatives and overall analysis needs
strengthening.

2 - AA includes weak AA information and significant weaknesses exist.

1 - There is no evidence that an AA was performed.

**Critical Success Factors:**

-   For systems in planning or mixed lifecycle, Alternatives Analysis
    must demonstrate:

    -   Three *viable* alternatives were considered

    -   Alternatives were compared consistently against one another and
        against the current baseline

    -   Alternative chosen provides benefits and reasons

    -   The viable alternative does not include status quo

-   Measurable benefits---financial and non-financial--- are analyzed
    such as improved mission performance, increased customer
    satisfaction, reduced costs

-   The project appears to be planned well enough to come in on budget

-   Alternatives Analysis section provides clear, detailed information
    on all costs associated with the investment

-   The formulation of lifecycle costs include all of the required
    resources

-   All costs should be consistent in Summary of Spending, Alternatives
    Analysis section, and Cost and Schedule Information section

**Common Pitfalls:**

-   Includes fewer than ***3 viable*** alternatives to closing the
    performance gap

-   Information on baseline is not included

-   The selected alternative's costs do not match the SoS

-   A vendor analysis is documented instead of an AA; i.e. comparing the
    costs of the same new system but with 3 different software vendors

    -   A vendor analysis may be appropriate after a more extensive AA
        has been completed

-   Benefits of each alternative, performance gaps cited, and discussion
    of why a particular alternative was chosen are vague

-   Costs in AA are inconsistent with costs in the Summary or Spending,
    Acquisition Strategy, and/or project milestones

-   Alternative Analysis is older than 5 years

    1.  **Risk Management (RM)**

**Scoring Criteria:**

5 - Risk assessment was performed for all mandatory elements and risk is
managed throughout the investment.

4 - Risk assessment addresses some of the risk, but not all that should
be addressed for this investment.

3 - Risk management is very weak and does not seem to address or manage
most of the risk associated with the investment.

2 - Risk assessment was performed at the outset of the investment but
does not seem to be part of the program management.

1 - There is no evidence of a risk assessment plan or strategy.

**Critical Success Factors:**

-   Risk assessment was performed during the early planning and initial
    concept phase of this investment's life-cycle

-   The PM developed a risk-adjusted life-cycle cost estimate and a plan
    to eliminate,

-   mitigate or manage risk

-   Risk is being actively managed throughout the investment's
    life-cycle

-   **Risks and risk mitigation strategies and costs are apparent in the
    project milestones and in the risk database/register as
    appropriate**

**Common Pitfalls:**

-   Risk plan was not done, or is dated

-   No description of how costs are risk-adjusted

-   No risk assessment against the EA ((EA is not being used to minimize
    risks of duplication, obsolete or bleeding edge technology, lack of
    interoperability, etc.)

-   Risk register/database is not up to date or does not reflect
    security or other significant risks identified in IG or other
    audits/reviews.

    1.  **Performance-Based Management (PB)**

**Scoring Criteria:**

5 - Agency will use, or uses Earned Value Management System (EVMS) that
meets ANSI/EIA Standard 748 and investment is earning the value as
planned for costs, schedule, and performance goals.

4 - Agency uses the required EVMS and is within the variance levels for
two of the three criteria. Work is needed on the third issue.

3 - Agency uses the required EVMS but the process within the agency is
either very new, not fully implemented, or there are weaknesses in this
investment's EVMS information.

2 - Agency seems to re-baseline rather than report variances.

1 - There is no evidence of PB.

**Critical Success Factors:**

-   Agency uses an Earned Value Management System (EVMS) that meets
    ANSI/EIA Standard 748A

-   Project is earning the value as planned for costs, schedule, and
    performance goals

-   Data is consistent across the project milestones, in type, level,
    etc.

-   For Steady State investments, operational analysis (OA) is
    conducted, and the business case describes how the OA was done, the
    results of the OA, and how these results are being used in
    decision-making

-   EVM data is being reported periodically as required during the year
    and the Exhibit 300 data is consistent with the information in the
    EVM reports.

**Common Pitfalls:**

-   Milestones/costs in sections II.C.9 and III.B.2 are at too high a
    level and/or cover more than one year at a time

-   Milestones in sections II.C.9 do not clearly break out Planning,
    DME, and O&M milestones though it is clear that the investment is
    mixed

-   It is not clear what portions of the milestones and costs shown in
    II.C.9 are attributable to which contract and which are being
    tracked using EVMS

-   It appears that the agency is only using the prime contractor's EVMS
    data, though there are several contractors involved; there should be
    a master schedule that is centrally managed by the Project Manager
    and includes and tracks all activities and costs

-   Government FTE costs are not being included in the EVM calculations
    or the Section II.C milestones.

-   The relationship between the costs in section II.C.9/III.B.2, the
    Summary of Spending, the Acquisition Strategy, and the Alternatives
    Analysis is not clear

-   Totals and subtotals (DME and O&M) are not consistent with the
    respective Planning and Acquisition and O&M funding plus FTE costs
    shown in the SoS table (Section II.C)

-   Table II.C current baseline planned schedule or cost figures are not
    consistent with the most recent JRC baseline decision and the
    related Exhibit 300 Program Baseline document.

## 1.7 General Writing Rules

The best investment may score lower if the reviewer cannot understand
the text in its Exhibit 300. The following are simple grammar and format
rules that need to be followed to produce an effective business case.

1.  **Remember Your Audience --** The FAA may get a new OMB examiner
    each year. At times the examiner may be from outside the FAA (and
    possibly outside DOT) so it's important to ensure that the Exhibit
    300s are clear, concise and easy to read. Remember to use guidelines
    as set forth in the FAA's Plain Language website. You can find this
    guidance at
    [[www.plainlanguage.gov]{.underline}](http://www.plainlanguage.gov/).
    Other tips include:

    a.  **Avoid FAA jargon and overly technical explanations -**
        Reviewers main focus is to determine how well projects are being
        managed. Limit the amount of technical explanations, and when
        you do need to go into further details -- try to translate
        technical jargon into common, everyday language.

    b.  **Limit use of multiple acronyms -** Reviewers will be familiar
        with common government acronyms such as FAA, DOT, DoD, and OMB.
        For all other acronyms always spell the word out the first time
        it's used followed by the acronym in parenthesis. After the
        first occurrence just the acronym may be used.

2.  **Keep it simple --** Like any government document, the Exhibit 300
    must follow the rules of Plain Language. The goal of Plain Language
    is to make documents clear and concise. These guidelines include:

    a.  **Avoid repetition -** When repetition occurs, there is a chance
        that the repeated information is used inappropriately or in a
        different context.

    b.  **Use active verbs-** Reduce the use of passive verbs.

    c.  **Keep sentences short --** For clarity keep sentences short.
        The longer a sentence, the more likely there will be grammatical
        errors. Long sentences can be split into lists or bullets.

    d.  **Use an editing program -** Using an editing program such as
        StyleWriter can help with Plain Language.

3.  **Only answer the question -** When answering questions, provide a
    brief, concise response. Before providing additional information,
    check to make sure it is not requested in a later section of the
    Exhibit 300.

4.  **Ensure your Exhibit 300 includes current information -** Programs
    who have submitted the Exhibit 300 in the past often use the
    previous years version as a jumping off point. If this is done,
    double check each response to make sure you update all of it
    appropriately (i.e. use current year where appropriate). In some
    cases, questions have been broken into smaller parts -- so make sure
    your previous answer has been broken down appropriately.

5.  **Keep section answers consistent -** Often times the responses in
    one section will refer to responses in others. Make sure that these
    responses are consistent with one another. Appendix A includes a
    crosswalk that compares the various sections. The answers in the
    Exhibit 300 must also be consistent with what is reported in the
    Agency's Exhibit 53, IT Portfolio.

6.  **Avoid using "Not Applicable", "Not Available", or leaving
    questions blank -** If a question cannot be answered because data is
    not available, explain why the data is not available and provide a
    date when it will be available.

7.  **Do not "cut-and-paste" answers between different questions -**
    Although many questions are related to another, the same answer will
    not satisfy two different questions.

## 1.8 Lifecycle Terminology

It is very important to clearly identify the investment phase for which
funding is being requested. Investments need to briefly, but concisely,
describe the phase, useful segment(s), duration and scope for which
funding is being requested.

**Lifecycle:** An investment's total lifecycle is the duration of the
investment encompassing the planning, acquisition, and maintenance
phases until the investment is discontinued, disposed of, and/or
replaced.

**Phase:** A part of the investment that usually reflects its current
status such as Planning, Full Acquisition, Operations and Maintenance or
Mixed Lifecycle.

**Useful Segment:** A useful segment is an economically and
programmatically separate component of an investment, as narrow in scope
and brief in duration as practicable. It provides a measurable
performance outcome for which the benefits are derived independently and
separately of other useful segments. An investment can consist of just
one useful segment or can include several useful segments.

**Milestones:** Milestones are specific activities, deliverables or
tasks that have a beginning and an end and are part of a useful segment.

Below is a depiction of the relationship between an investment's total
lifecycle, its phases, useful segments, and milestones.

+----------------------+----------------------------+------------------+
| **Investment's       |                            |                  |
| Complete Lifecycle** |                            |                  |
+======================+============================+==================+
| Planning Phase       | Acquisition (DME) Phase    | Maintenance      |
|                      |                            | (Steady-State)   |
|                      |                            | Phase            |
+----------------------+----------------------------+------------------+
| Planning Useful      | Acquisition/Development    | Steady-State     |
| Segment #1A:         | Useful Segment #1B:        |                  |
| 1                    | 06/01/2005-09/30/2008      | Useful Segment   |
| 0/01/2004-05/30/2005 |                            | #1C:             |
|                      | -   Milestone 1            | 01/15            |
|                      |                            | /2007-09/30/2012 |
|                      | -   Milestone 2            |                  |
|                      |                            |                  |
|                      | -   Milestone 3            |                  |
|                      |                            |                  |
|                      | -   Milestone 4            |                  |
+----------------------+----------------------------+------------------+
| Planning Useful      | Acquisition/Development    | Steady-State     |
| Segment #2A:         | Useful Segment \# 2B:      | Useful Segment   |
| 0                    | 10/01/2005-05/30/2007      | #2C:             |
| 4/01/2004-09/30/2005 |                            |                  |
|                      | -   Milestone 1            | 06/01            |
|                      |                            | /2007-12/30/2010 |
|                      | -   Milestone 2            |                  |
+----------------------+----------------------------+------------------+
| Planning Useful      | Acquisition/Development    | Steady-State     |
| Segment #3A:         | Useful Segment #3B,        | Useful Segment   |
| 10/01/2005-          | 07/01/2006-09/30/2010      | #3C,             |
| 06/30/2006           |                            | 10/01            |
|                      | -   Milestone 1            | /2010-09/30/2012 |
|                      |                            |                  |
|                      | -   Milestone 2            |                  |
|                      |                            |                  |
|                      | -   Milestone 3            |                  |
+----------------------+----------------------------+------------------+

Table 2: Sample Life-Cycle Phase, Segment, and Phase Relationships

# 2. Part I: Summary Information and Justification 

## 2.1 Introduction

This section includes the investment's overview, total estimated
lifecycle costs, acquisition and contract strategies, performance goals,
security, and enterprise architecture information for the business case.
Programs are required to provide information for all these sections for
all capital asset investments.

## 2.2 Section A: Overview

**1. Date of Submission:**

This field is updated each year. Enter the date the business case will
be submitted to OMB.

**2. Agency:**

Enter "Department of Transportation (DOT)"

**3. Bureau:**

Enter "Federal Aviation Administration (FAA)"

**4. Name of this Capital Asset:**

Use the full name of the investment followed by its acronym in
parentheses. Please note that if this investment was submitted as part
of the previous budget year's portfolio, the name of the investment
**should NOT** change, per OMB direction.

**5. Unique Project (Investment) Identifier (UPI):**

For IT investments enter the UPI. The UPI depends on the investment's
primary strategic goal mapping, the type of IT investment (i.e.,
financial, infrastructure, grants management, enterprise architecture,
or other), and the primary line of business and sub-function. The code
is based on, and must be consistent with, the responses to several
specific Exhibit 300 sections. The Department\'s eCPIC tool
automatically generates the UPI code. If you have questions regarding
the UPI code or need additional information, contact the Value
Management Office.

**6. What kind of investment will this be in \<*budget year*\>?**

The status is based on the investment's status for the current budget
year for which funding is being requested. For example, if the
investment will be fully steady state in budget year 2009 but still has
development, modernization and enhancement (DME) activities in fiscal
year 2008 the program would select mixed lifecycle as the answer.

Ensure your response is consistent with the funding request documented
in the **Budget Year (BY)** column of the Summary of Spending (SoS)
table as well as the rest of the business case. For example, if
***Operations and Maintenance*** has been selected as the response to
this question OMB would not expect to see an ***Acquisition*** funding
request in the SoS table for the current budget year.

The following is an explanation of the terms.

-   **Planning:** Funds are being expended for preparing, developing or
    acquiring the information to design and evaluate the project (e.g.,
    market research, engineering or design studies, prototypes, full
    cost-benefit studies, accessibility studies, security studies).
    Planning can be considered a useful segment and depending on the
    nature of the project, one or more planning segments may be
    necessary.

-   **Full Acquisition:** Funds are being expended on acquiring
    hardware, software or DME activities.

-   **Operations and Maintenance:** Funds are being expended for the
    maintenance of an operational system or module (system has been
    through at least one full budget cycle).

-   **Mixed Lifecycle:** Mixed lifecycle investment means an investment
    that has development, modernization, and/or enhancement (DME)
    aspects as well as steady-state aspects. For example, a mixed
    lifecycle investment could include a prototype or module of a system
    that is operational with other modules still in development.

-   **E-Gov/LoB Oversight**: FAA does not have any investments that fall
    within this category.

**7. What was the first budget year this investment was submitted to
OMB?**

If an Exhibit 300 went to OMB and was approved for the previous budget
year, then enter the first year the business case was submitted to OMB.
If the project did not submit an Exhibit 300 to OMB last year, then
enter the current budget year.

**8. Provide a brief summary and justification for this investment,
including a brief description of how this closes in part or in whole and
identified agency performance gap.**

Start with a brief, concise description of the program and the
performance gap it addresses. This includes a succinct and clear
description of ***what*** the investment is, ***why*** it is needed
(performance gap it is addressing) and its ***status*** (select,
control, evaluate). If the investment is mixed lifecycle state the
status of each segment or module.

Subsequent paragraphs should ***briefly*** describe the DOT and FAA
missions that are supported by the investment. Be sure to explain the
relationship between the performance gap and the DOT and FAA missions.

Briefly describe the various investment segments including the CPIC and
lifecycle phase of each segment. Identify which segments are covered by
this year's funding request. Ensure that information included in this
response is consistent with responses in other sections of the business
case.

**9. Did the Agency's Executive/Investment committee approve this
request?**

The answer is 'yes' for all projects that have JRC or JRC subordinate
board approval (if delegated by the JRC), and were given authorization
to proceed to the next phase. This would include both the JRC Initial
and Final Investment Decisions.

> **9. a. If yes, what was the date of this approval?**

Enter the date of the JRC decision. Since this question is only asking
for the program to provide a date, make sure the response to question 8
includes a brief sentence stating whether the JRC approval date was for
the Initial or Final investment decision.

**10. Did the Project Manager review this Exhibit?**

The response to this question should always be 'yes'. The Project
Manager (PM) must review the Exhibit 300 business case and is
responsible for fully understanding the content of the Exhibit 300.

**11. Contact information of Project Manager?**

Each project must have a project manager; enter the name and contract
information here.

**12. Has the agency developed and/or promoted cost effective,
energy-efficient and environmentally sustainable techniques or practices
for this project?**

Select 'yes' or 'no'. Both IT and non-IT investments are required to
answer this question.

> **12.a. Will this investment include electronic assets (including
> computers)?**
>
> Select 'yes' or 'no'. Both IT and non-IT investments are required to
> answer this question.
>
> **12.b. Is this investment for a new construction or major retrofit of
> a Federal building or facility?**
>
> Select 'yes' or 'no'. Both IT and non-IT investments are required to
> answer this question.
>
> **12.b.1. If "yes", is an ESPC or UESC being used to help fund this
> investment?**

If the response to Question 12.b is 'yes' then answer this question.

**12.b.2. If "yes", will this investment meet sustainable design
principles?**

If the response to Question 12.b is 'yes' then answer this question.

**12.b.3. If "yes", is it designed to be 30% more energy efficient tan
relevant code?**

If the response to Question 12.b is 'yes' then answer this question.

**13. Does this investment directly support one of the PMA
initiatives?**

VMO guidance states that most FAA investments do not support PMA
initiatives therefore the standard response for this question would be
'no'. If a program thinks their investment does support an E-Government
initiative, please contact your VMO representative to discuss.

**13.a. Briefly describe how this asset directly supports the identified
initiative(s)?**

VMO guidance states that most FAA investments do not support PMA
initiatives therefore this question should be left blank.

**14. Does this investment support a program assessed using the Program
Assessment Rating Tool (PART)?**

On July 16, 2002, OMB issued a memo to the heads of federal department
and agencies describing a new approach being used by OMB to assess
program performance. OMB is now using a Program Assessment Rating Tool
(PART) to complete a formal evaluation of federal programs and plans to
apply this detailed analysis to a percentage of federal programs every
year. The OMB memo describes the purposes of the PART as:

> *"The program assessment effort presents an opportunity to inform and
> improve agency GPRA plans and reports, and establish a meaningful
> systematic link between GPRA and the budget process. The memo defines
> the PART approach as follows, "The PART is a diagnostic tool that
> relies on objective data to inform evidence-based judgments to assess
> and evaluate programs across the wide range of issues related to
> performance."*

Use the most recent review that applies to the investment. If you are
unsure whether your investment supports a program reviewed under PART,
contact the Value Management Office.

The following reviews have been completed to date:

1\) The RED account -- in 2003

2\) The Airport Improvement Grants -- in 2002

3\) Air Traffic Services Operations (OPS funded only) -- in 2003

4\) Facilities and Equipment (F&E) -- in 2004

5\) Aviation Safety

**14.a. If "yes", does this investment address a weakness found during a
PART review?**

Use the most recent review information that applies to the investment.

**14.b. If "yes", what is the name of the PARTed program?**

Use the most recent review information that applies to the investment.

**14.c. If "yes", what rating did the PART receive?**

Use the most recent review information that applies to the investment.

**15. Is this investment for information technology?**

Information Technology, as defined by the Clinger-Cohen Act of 1996,
Sections 5002, 5141, and 5142, means any equipment or interconnected
system or subsystem of equipment that is used in the automatic
acquisition, storage, manipulation, management, movement, control,
display, switching, interchange transmission, or reception of data or
information. For purposes of this definition, equipment is "used" by an
agency whether the agency uses the equipment directly or it is used by a
contractor under a contract with the agency that (1) requires the use of
such equipment or (2) requires the use, to a significant extent, of such
equipment in the performance of a service of the furnishing of a
product. Information Technology includes computers, ancillary equipment,
software, firmware and similar procedures, services (including support
services), and related resources. It does not include any equipment that
is acquired by a Federal contractor incidental to a Federal contract. An
FAA investment that is part of the NAS is usually considered IT. For
example, the En Route Automation Program (ERAM) is categorized as an IT
investment, whereas the Power Systems Sustained Support (PSSS) is not.

**16. What is the level of the IT Project?**

The level of an investment is determined by the project\'s scope and
dollar threshold.

  ----------- ---------------------------------------------- -----------------
  **Level**   **Project Type**                               **Dollar
                                                             Threshold**

  1           A division, bureau or agency project           Up to \$20 M

  2           A cross-cutting project or agency-wide system  Up to \$100M
              integration project across the Department      

  3           Large, inter-governmental or government-wide   Greater than
              complex, high risk IT project (e.g., e-Gov or  \$100M
              President's Management Agenda initiative,      
              mission critical function, or high interest    
              project)                                       
  ----------- ---------------------------------------------- -----------------

**17. What project management qualifications does the Project Manager
have?**

The PM must be validated at the same level as the investment. Select the
most appropriate response from the list:

-   Project manager has been validated as qualified for this investment.

-   Project manager qualification is under review for this investment.

-   Project manager assigned to investment, but does not meet
    requirements.

-   Project manager assigned but qualification status review has not yet
    started.

-   No project manager has yet been assigned to this investment.

    **18. Is this investment identified as "high risk" on the Q4 -- FY
    2007 agency high risk report?**

Each year the Office of Management and Budget compiles a list of
high-priority IT projects. The intent is for agencies to focus on the
execution and performance of their projects. If your program is on this
list please select 'yes' as the response to this question. If you are
not sure your program is on the list, contact your VMO representative.

**19. Is this a financial management system?**

Select 'yes' or 'no'.

Financial management systems are subject to additional regulation and
scrutiny. Financial Management Systems are financial systems and the
financial portion of mixed systems that support the interrelationships
and interdependencies between budget, cost and management functions, and
the information associated with business activities. Financial systems
are comprised of one or more applications that are used for any of the
following:

-   Collecting, processing, maintaining, transmitting, and reporting
    data about financial events;

-   Supporting financial planning or budgeting activities;

-   Accumulating and reporting cost information; or

-   Supporting the preparation of financial statements.

    **Note**: Ensure consistency between the responses for questions 19,
    19.a, 19.a.1, 19.a.2, 19.b and the information that has been
    included in the Exhibits 52 and 53

    **19.a. If "yes", does this investment address a FFMIA compliance
    area?**

    Select 'yes' or 'no'.

    The Federal Managers Financial Integrity Act of 1982, Chief
    Financial Officers Act of 1990 and Federal Financial Management
    Improvement Act of 1996 require accountability of financial and
    program managers for financial results of actions taken, control
    over the Federal government\'s financial resources, and protection
    of Federal assets. The Office of the CFO prepares the FFMIA
    compliance reporting for financial management systems. Contact the
    VMO regarding questions.

    **19.a.1. If "yes", which compliance area?**

    Enter the compliance area.

    **19.a.2. If "no", what does it address?**

    Enter the requested information.

    **19.b. If "yes", please identify the system name(s) and system
    acronym(s) as reported in the most recent financial systems
    inventory update required by Circular A-11, Section 52.**

    Enter the requested information.

    **20. What is the percentage breakout for the total \<budget year\>
    funding request for the following? (Hardware, Software, Services,
    Other)**

    This question is asking the program to breakout the funding request
    for the budget year for which funding is being requested. The
    percent should be whole numbers and total 100%.

    **21. If this project produces information dissemination products
    for the public, are these products published to the Internet in
    conformance with OMB Memorandum 05-04 and included in your agency
    inventory, schedules and priorities?**

The management of agencies\' public websites should be in compliance
with Federal information resource management law and policy and is part
of promoting more citizen centered government. OMB Memo 05-04 provides
the policies for Federal Agency Public Websites and can be located at:
[http://www.whitehouse.gov](http://www.whitehouse.gov/)/omb/memoranda/fy2005/m05-04.pdf.

**22. Contact information of individual responsible for privacy related
questions?**

Enter the name and contract information for the FAA individual that is
responsible for privacy related questions.

**23. Are the records produced by this investment appropriately
scheduled with the National Archives and Records Administration's
approval?**

A "records schedule" identifies records as either temporary or
permanent. All records schedules must be approved by NARA.

-   A records schedule provides mandatory instructions for the
    disposition of the records (including the transfer of permanent
    records and disposal of temporary records) when they are no longer
    needed by the agency. As part of the ongoing records lifecycle,
    disposition should occur in the normal course of agency business.

-   All Federal records must be scheduled (44 U.S.C. 3303) either by an
    agency schedule or a General Records Schedule (GRS).

-   The GRS include records relating to civilian personnel, fiscal
    accounting, procurement, communications, printing, and other common
    functions.

## 2.3 Section B: Summary of Spending

The term ***Total Lifecycle Costs*** refers to the overall estimated
cost, both government and contractor, for an alternative over the time
period corresponding to the life of the program, including direct and
indirect initial costs plus any periodic or continuing costs of
operation and maintenance. Lifecycle costs include**:**

-   **Planning** costs include costs for mission analysis and investment
    analysis. At FAA, planning comprises all efforts leading up to the
    final investment decision by the JRC. It generally includes all
    activity that occurs prior to the contract award for development.

-   **Acquisition** costs include costs for solution implementation
    (acquisition, development, testing and deployment).

-   **Operations and Maintenance** costs are steady-state costs, which
    include costs for routine maintenance and technology refresh.

-   **Government FTE** costs include both program and field personnel.

The funding requests documented in this table reflect the current CIP
funding with out-years adjusted to match the current JRC approved
program baseline total. Although the estimated annual funding amounts
may change in the Summary of Spending (SoS) table, the total estimated
program funding must agree with the latest JRC approved cost baseline.

The top half of the SoS table does not include government FTEs and
should reconcile with the ATO-F parameter sheets in SPIRE. Government
FTE (PCB&T) costs are provided separately at the bottom of the SoS table
and should include both program and field support.

**1. Provide the total estimated lifecycle cost for this investment by
completing the following table. All amounts represent budget authority
in millions and are rounded to three decimal places. Federal personnel
costs should be included only in the row designated "Government FTE
Cost", and should be excluded from the amounts shown for Planning, Full
Acquisition, and Operations/Maintenance. For Federal buildings and
facilities, lifecycle costs should include long term energy,
environmental, decommissioning, and/or restoration costs. The costs
associated with the entire lifecycle of the investment should be
included in this report.**

The SoS table represents the ***total cost of ownership*** for the
selected alternative, regardless of source of funding or budget account.
Summary program costs are to be provided by year and phase (planning,
acquisition, and maintenance), and must be risk adjusted. Government FTE
costs should NOT be included in the costs shown in the "TOTAL" row or in
the rows above it. FTE costs and numbers are shown in separate rows at
the bottom of the SOS table.

<table>
<colgroup>
<col style="width: 20%" />
<col style="width: 9%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
<col style="width: 8%" />
</colgroup>
<tbody>
<tr class="odd">
<td><em>Column 1</em></td>
<td><em>Col 2</em></td>
<td><em>Col 3</em></td>
<td><em>Col 4</em></td>
<td><em>Col 5</em></td>
<td><em>Col 6</em></td>
<td><em>Col 7</em></td>
<td><em>Col 8</em></td>
<td><em>Col 9</em></td>
<td><em>Col 10</em></td>
</tr>
<tr class="even">
<td>Life-Cycle Stage</td>
<td>PY-1 and Earlier</td>
<td><p>Prior Year (PY)</p>
<p><strong>20XX</strong>-2</p>
<p>(Op Plan)</p></td>
<td><p>Current Year (CY)</p>
<p><strong>20XX-1</strong></p>
<p>(Pres Bud)</p></td>
<td><p>Budget Year (BY)</p>
<p><strong>20XX</strong> OMB Sub</p></td>
<td><p>BY+1</p>
<p><strong>20XX+1</strong></p></td>
<td><p>BY+2</p>
<p><strong>20XX+2</strong></p></td>
<td><p>BY+3</p>
<p><strong>20XX+3</strong></p></td>
<td><p>BY+4 &amp;</p>
<p>Beyond</p></td>
<td>Total</td>
</tr>
<tr class="odd">
<td>Planning:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Acquisition:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>Subtotal Planning &amp; Acquisition:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Operations &amp; Maintenance:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="odd">
<td>TOTAL:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td colspan="10"><strong>Government FTE Costs should not be included in
the amounts provided above.</strong></td>
</tr>
<tr class="odd">
<td>Government FTE Costs:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
<tr class="even">
<td>Number of FTE represented by Costs:</td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
<td></td>
</tr>
</tbody>
</table>

Table 3: Summary of Spending Table

**Budgetary Resources**

In the SoS table, \"Budgetary Resources\" means the amount available to
enter into new obligations and to liquidate them; including direct
spending and obligation limitations (see OMB A-11 or contact Budget
Office if the project line item is subject to statutory limitations on
obligations).

For the Past Year and Prior always refer to the *appropriated amounts*
received by the program. During the period the Exhibit 300 is being
developed for OMB, the Current Year will equal the *President\'s Budget
request* until an appropriations bill is enacted and signed by the
President. Past year F&E appropriation amounts by project can be found
in the Capital Investment Plan.

The Budget Year amount should be consistent with the budget request FAA
makes to the Department and OMB. ATO Finance develops the F&E budget
within the framework of the Capital Investment Plan (CIP). Programs
should keep in touch with ATO Finance and the CFO Budget Office to
ensure they have the latest figures.

F&E resources beyond the Budget Year should be consistent with amounts
found in the CIP, which should adjust out year amounts for current or
past year resource changes in order to maintain consistency with the JRC
approved baseline.

The Operations budget is developed within each line of business.
Operations funding should be also be consistent with request levels to
OMB.

Any project collaborating with another agency or agencies (such as E-Gov
projects) should include the funding from those collaborators. See OMB
A-11 Section 300 for more guidance on collaborative projects.

**Government FTE Costs:**

For the Government FTE costs, use a cost-per-FTE commensurate with the
grade level of the government employee(s) performing the work. The
budget office has cost per FTE for each Line of Business organization
and other inflation rates for formulating payroll resources.
Multi-agency initiatives must include FTE costs for all partnering
agencies. Government FTE Costs in the Summary of Spending include:

-   All government personnel considered direct and indirect labor in
    support of the investment.

-   The investment management IPT (service team) and any other
    government effort (e.g., programming effort for part of the overall
    investment, development effort) that contributes to the success of
    the investment.

-   Salary costs plus the fringe benefit rate of 32.8%.

-   Costs of internal FTEs supporting the IT investment. At a minimum
    include the costs of those FTEs that spend more than 50% of their
    time supporting the investment. Persons working on more than one
    investment, whose contributions for all investments would exceed 50%
    of their overall time, should have their specific time allocated to
    each investment.

# Note: The totals for Planning, Acquisition, O&M and FTE costs in the SOS table should match the subtotals and totals in Part II.C and III.B and be consistent with the JRC APB and SPIRE data.

**2. Will this project require the agency to hire additional FTE's?**

Select 'yes' or 'no'.

Indicate whether the investment will require additional government FTEs.

> **2.a. If "yes", how many and in what year?**
>
> If the response to question 2 is 'yes', then enter the number of
> additional FTEs the investment plans to hire and in what year(s).

**3. If the Summary of Spending has changed from the FY2007 President's
budget request, briefly explain those changes.**

Describe any changes since the previous budget year request
(rescissions, rebaseline, etc). Describe any requirements or issues that
cause spikes or lumpiness in the spending curve.

## 2.4 Section C: Acquisition/Contract Strategy

Per OMB's Capital Program Guide dated June 2006, the use of competition,
performance-based specifications, financial incentives and earned value
are tools to reduce the risk to the government. Of particular important
is the use of performance-based contracts. These contracts focus on
results, mitigate risk to the government and are the required standard
for major acquisitions.

The Acquisition Strategy, which is part of the Integrated Strategy and
Planning (ISP) document, should also make sure that earned value
requirements are incorporated into all FAA contracts that are equal to,
or greater then, \$10M. Additionally, OMB wants to see programs
accommodate Section 508 as needed.

If an investment is not using performance-based contracts and Statements
of Works (SOWs), the Acquisition Strategy should clearly state the
reasons that prompted use of other than performance-based contracts and
SOWs and how the risk to the government will be mitigated.
Implementation of the Acquisition Strategy must also be clearly defined.

**Note**: Ensure the information in this section is consistent with the
ISP document.

**1. Complete the table for all (including all non-Federal) contracts
and/or task orders currently in place or planned for this investment.
Total Value should include all option years for each contract. Contracts
and/or task orders that are completed do not need to be included.**

In the Contracts/Task Orders table OMB is requiring that investments
include both F&E and O&M contracts that are currently being executed or
will be executed sometime in the future. This includes any contracts or
task orders that are in the planning phase but have not yet been
awarded. There is no need to list past/expired contracts however the
total F&E and O&M contract dollars documented in this table should be
consistent with the SoS and II.C.9 tables. Similar contracts can be
rolled up or consolidated (i.e. support contracts, field contracts)
however contracts over 10% of the program value should be reported as
separate lines.

**Performance-Based Contracts**:

Performance-based acquisition is a collective responsibility that
involves representatives from budget, technical, contracting, logistics,
legal, and program offices *\[Source: Seven Steps to Performance Based
Services Acquisition\].* This means that contracts are integrally tied
to cost, schedule and technical performance and have documented,
systematic processes for program management, including:

-   Integrating program scope, schedule and cost objectives,

-   Establishing a baseline plan for accomplishing program objectives,
    and

-   Using earned value techniques for performance measurement during
    program execution.

Performance based contracts are required for both F&E and O&M
activities. The intent is for agencies to describe their needs in terms
of *[what]{.underline}* is to be achieved, [not how]{.underline} it is
to be done.

**Competitively Awarded Contracts**:

"Performance-based contracting\" means structuring all aspects of an
acquisition around the purpose of the work to be performed with the
contract requirements set forth in clear, specific, and objective terms
with measurable outcomes as opposed to either the manner by which the
work is to be performed or broad and imprecise statements of work
*\[Source: FAR 2.101\].*

If a contract was competitively awarded but some of subordinate task
orders were not (such as SETA II), then the program should answer 'yes'
in the "Competitively Awarded" column of the Contracts/Task Orders table
and provide a brief explanation in Section I.C.2

![](media/image4.wmf){width="5.998611111111111in"
height="3.6694444444444443in"}

Table 5: Contracts/Task Orders Table

Ensure that the contracts listed in this table meet the following
criteria:

-   OMB expects that contracts awarded in 2006 and later will be
    performance-based, include Earned Value Management (EVM)
    requirements (when applicable), be competitively awarded, and be
    Firm Fixed Price (FFP).

-   If the program states the investment is in the planning phase, OMB
    would expect to see a list of contracts that the program plans to
    award.

-   For future DME contracts indicate that the program is planning to
    use performance-based, FFP contracts with EVM requirements.

-   For future O&M contracts indicate that the program is planning to
    use performance-based and FFP contracts.

-   Include planned future contracts for the rest of the investment. At
    a minimum include one line for future DME contracts and one line for
    future O&M contracts.

**2. If earned value is not required or will not be a contract
requirement for any of the contracts or task orders above, explain
why.**

If any of the contracts listed in the Contracts/Task Orders table do not
meet the OMB criteria the following information should be included in
the response:

-   If the program states the investment is in the planning phase and
    the planned contracts have been listed in the Contracts/Task Orders
    table, briefly explain what those contracts are for (i.e., planning
    activities, analyses, program management support, etc.)

-   If some contracts are partly performance-based or have
    performance-based characteristics, brief explanations should be
    provided in I.C.2. For example, if a contract does not contain
    performance-based language but the payments are tied to deliverables
    and milestones this should be noted in I.C.2.

-   If some contracts do not include EVM requirements briefly explain
    why. For example, the contract is less then or equal to the \$10M
    FAA threshold for including EVM as a contract requirement OR the
    contract is for operational activities that do not require EVM.

-   For those contracts that don't include EVM requirements explain how
    the program is monitoring cost, schedule and performance at the
    program level. It is not sufficient to just state the program is
    monitoring cost, schedule and performance. The program must briefly
    explain how. Briefly describe the procedures and management
    processes that are in place for mitigating the risks.

-   If some of the contracts are not performance based and using FFP
    briefly explain why. Indicate that the program is planning to
    maximize the use of FFP contracts instead of just stating that they
    are one of the contract types that will be considered.

-   If any of the contracts are not competitive briefly explain why and
    describe any plans to increase the use of competition in future
    contracts.

-   Describe any progress made to date in becoming EVM compliant.

OMB expects that an Earned Value Management System (EVMS) will be used
for all DME activities and that earned value will be applied to both
government (FTE) and contractor efforts. This includes:

-   Prototypes during the planning phase

-   DME activities during the acquisition phase, and

-   DME activities during the steady state phase including tech
    refreshes

**Note**: Ensure the information in this response is consistent with the
information provided in Section II.C.

**3. Do the contracts ensure Section 508 compliance?**

Indicate whether the contracts comply with Section 508.

-   Yes -- the investment complies with all Section 508 standards

-   No - the investment does not comply with all Section 508 standards

-   N/A - the 508 standards are not applicable to the investment

Per the 508 SME the program determines whether to select 'No' or 'N/A'.
Ensure the response has been approved by the Section 508 SME.

> **3.a. Explain why?**
>
> OMB is requiring investments to clarify the answer to question 3. If
> the answer is 'yes' to question 3, ensure the appropriate standard
> text is used and that the response has been approved by the Section
> 508 SME.

**4. Is there an Acquisition Plan which has been approved in accordance
with agency requirements?**

The Acquisition Plan is part of the FAA's ISP document. Ensure that the
information in the Acquisition Plan is consistent with the responses to
questions I.C.1 and I.C.2.

> **4.a. If "yes", what is the date?**
>
> Enter the date.
>
> **4.b. If "no", will an Acquisition Plan be developed?**
>
> Select 'yes' or 'no'.
>
> **4.b.1. If "no", briefly explain why.**
>
> Provide the required explanation.

## 2.5 Section D: Performance Information

Developing annual performance goals for investments based on the agency
mission allows management and OMB to clearly see that the investment has
achieved its intended goals. The FAA, as a whole, needs to improve its
performance measurement indicators and the linkage between IT
investments and a program's performance goals. For future years,
programs are encouraged to develop performance goals and measures that
demonstrate support for the agency's mission and including strategic
outcomes. In cases where more than one investment contributes to an
outcome (such as increased safety or reduced delays), it is important to
attribute the appropriate portion of the outcome improvement to each
contributing investment.

[]{.mark}

At a minimum the Exhibit 300 should include performance goals up to and
including one year beyond the budget year. Programs may provide goals
for the entire phase or useful segments for which JRC funding has been
approved.

In general, performance goals previously reported to OMB must be
included in subsequent Exhibit 300 submissions and not eliminated or
changed unless such changes are part of a JRC-approved rebaseline. If
they are approved as part of a rebaseline, the reasons (such as risk
adjustments) for the change and the fact that the change is part of an
approved rebaseline need to be clearly reported in appropriate Exhibit
300 sections. Goals from past years should not be deleted until the
actual performance results have been reported to OMB at least once in
the Exhibit 300 officially submitted in September.

**Helpful Tip**: The **Baseline** indicates "where you are today" (for
new investments) or "where you were when you first began" (for
steady-state investments). This is the basis for determining increases
or decreases in performance. **Planned** is the targeted performance
level expressed in a metric that can be measured and compared to the
actual performance. **Actual** is tangible performance results that
occurred as the system was used.

**Table 1**

Most FAA investments can drop this table from their Exhibit 300.
However, if the program decides to keep the table in their business case
the goals and objectives should demonstrate incremental progress toward
the long term goals and objectives described in the FAA and DOT
strategic plans through at least FY 2005.

![](media/image5.png){width="6.006944444444445in"
height="1.5847222222222221in"}

Table 6: Performance Goals -- Table 1

-   **Column #1 Fiscal Year:** Develop and report performance goals
    through at least FY 2005. Performance goals should not be dropped
    from the table unless the actual performance has been reported to
    OMB for one full year after the goal was first submitted to OMB.

-   **Column #2 Strategic Goal(s) Supported:** Indicate which DOT
    Strategic Plan and FAA's Flight Plan goals the investment supports.
    Ensure that the goals are consistent with the information provided
    in other sections of the business case.

-   **Column #3 Performance Measure:** Enter the metric the program will
    use to measure performance. This metric will measure planned versus
    actual performance for each performance goal. To the maximum extent
    practicable, this should be a quantitative metric for the units that
    are being measured (for example: the number of delays per year, the
    number of accidents per year, the number of errors per year,
    customer complaints per year, hours required to complete an
    activity/task, or cost of something in dollars, etc). The metric
    must be consistent with the information documented in columns 4, 5
    and 6.

-   **Column #4 Actual Baseline (from previous year):** Enter the
    baseline for each performance goal. This is the base metric the
    program will use to measure progress.

-   **Column #5 Planned Performance Metric (target):** Enter the
    improvement metric. This is the improvement the investment expects
    to gain in a fiscal year.

-   **Column #6 Performance Metric Results (actual):** For the current
    year, state the mid-year progress (if available), progress projected
    to the end-of-year, or state when performance will be measured. For
    future years, when the information is not known, provide an
    estimated date when it will be available.

**Table 2**

All IT investments that include DME activities for 2005 and beyond must
use Table 2 and are required to map to the Federal Enterprise
Architecture (FEA) Performance Reference Model (PRM).

The purpose of the table is to measure the success of IT investments and
their impact on an agency's strategic mission and objectives. The PRM
includes detailed guidance about how to develop realistic performance
goals and incorporate measurement indicators into this table. Use Table
2 and the PRM to identify and link the internal business components and
the achievement of business and customer-centric outputs. The PRM
structure is designed to clearly express the cause--and-effect
relationship between inputs and outputs. This "line of sight" is
articulated through the use of the *Measurement Area*, *Category*,
*Grouping*, and *Indicator* hierarchy.

Mission goals listed in the DOT Strategic Plan and FAA Flight Plan are
the ultimate strategic outcomes that FAA investments support, yet it may
be appropriate to name some subsidiary or lesser mission objective or
sub-objective that the investment supports. Build on what you have from
last year and review the DOT Strategic Plan and FAA Flight Plan for the
appropriate outcomes your investment supports. The "Baseline," "Planned
Improvement to Baseline," and "Actual Results" columns should contain
numerical data showing the status of the measurement indicator at the
beginning of the fiscal year, the desired target level, and the
indicator at the end of the fiscal year, respectively. If there is no
data for the measurement, indicate in the data field why the data is not
yet collected, explain how the data will be collected over the course of
the upcoming fiscal year, and provide an estimated date by which the
required data will be available. It is expected that in many cases,
benefits and their related performance goals will not be realized until
an investment is at least partly operational.

Please note that new investments that have not yet completed a final JRC
investment decision need only provide estimated goals. In most cases it
will be difficult during the preliminary planning phases of these new
initiatives to quantify these goals. Therefore, Table 2 should show the
types of performance improvements that are expected and provide an
estimated date for when the information to quantify baselines and
performance improvements will become available.

**Note**: Ensure there is consistency between these goals and strategic
goals and objectives described in other sections of the business case.

![](media/image6.png){width="6.0in" height="1.8334645669291338in"}

Table 7: Performance Goals -- Table 2

-   **Column #1 Fiscal Year:** Develop and report performance goals
    starting with FY05 through at least the BY+1. Table 2 should include
    all goals that were reported in last year's submission, plus goals
    for future years up through one year beyond the budget year.
    Performance goals should not be dropped from the table unless the
    actual performance has been reported to OMB for one full year after
    the goal was first submitted to OMB.

-   **Column #2 Measurement Area:** This is the highest level of the PRM
    framework capturing aspects of performance at the output levels.
    This column is directly linked to the performance objectives
    established at the agency and program levels. All major IT
    investments requesting new DME funding for 2005 and beyond must
    identify at least one goal in each of the four Measurement Areas:
    Mission and Business Results, Customer Results, Processes and
    Activities, and Technology. Table 2 must include at least one
    performance goal for each measurement area for each fiscal year. Use
    the same goals each year to demonstrate the intended value of the
    investment over time.

-   **Column #3 Measurement Grouping:** There are categories within each
    measurement area that describes the attribute or characteristic to
    be measured. Within each ***Category*** there are further
    subcategories call ***Groupings***. Enter the correct Grouping for
    the performance goal.

-   **Column #4 Measurement Indicator:** The specific metric that will
    be used to track successful performance (e.g., number and/or
    percentage of customers satisfied) tailored for a specific BRM Line
    of Business or Sub-function, agency, program, or IT initiative.

-   **Column #5 Baseline:** If there is an existing system what is the
    current baseline metric for the performance goal. If there is no
    current baseline enter zero.

-   **Column #6 Planned Improvement to the Baseline:** What improvement
    to the baseline metric does the investment expect to gain?
    Additionally, to demonstrate linkage of specific performance
    improvement goals to the DOT Strategic Plan and FAA Flight Plan
    goals, the names of the appropriate DOT/FAA goals that are supported
    by a performance improvement may be included in the "Planned
    Improvement to the Baseline" Column.

-   **Column #7 Actual Results:** Enter the actual results of the
    performance goal. If there are no actual results enter the date the
    investment expects to have the actual results.

## 2.6 Section E: Security and Privacy

Number range CHAPTERIn order to successfully address this area of the
Exhibit 300, each question below must be answered at the investment
(system/application) level, not at a program or agency level. Simply
referring to security plans or other documents is not an acceptable
response. For IT investments under development, security planning must
proceed in parallel with the development of the system to ensure that IT
security requirements and life-cycle costs for the investment are
identified and validated. All IT investments must have up-to-date
security plans and be fully certified and accredited prior to becoming
operational. Anything short of a full certification and accreditation
indicates that IT security weaknesses remain, need to be remedied and is
therefore not adequate to ensure funding for the investment.
Additionally, to ensure that requests for increased IT security funding
are appropriately addressed and prioritized, the agency must
identify: 1) current costs; 2) current IT security performance gaps; and
3) how the funding request will close the performance gaps. This
information must be provided to OMB through the system's security Plans
of Action and Milestones (POA&M) and tied to the IT Exhibit 300 through
the unique project identifier.

Programs must ensure their Federal Information Security Management Act
(FISMA) review, POAM information and the Exhibit 300 are consistent.
Programs need to clearly state that there is adequate funding to
implement corrective actions. Certification and Authorization (C&As)
must be completed in a timely manner and wherever possible identified in
table II.C.9 as a planned milestone.

New initiatives that have not received a final investment decision by
the JRC should address each question by providing information about
future plans to complete security activities and documentation, which
regulations will be complied with, and which methodologies will be used
as appropriate. If exact dates for completion of security activities or
documentation cannot be provided, an estimated date for when the
information will be available should be provided.

The information presented in Table 3 (Systems in Planning) and Table 4
(Operational Systems) should match the information provided in the
Privacy Table. Systems included in Table 4 must be included on the FAA's
FISMA system inventory and should be easily referenced in the inventory.

**1. Have the IT security costs for the system(s) been identified and
integrated into the overall costs of the investment?**

Select 'yes' or 'no'.

Security costs are referenced in terms of a percent of a program's
funding request for the budget year as documented in the Summary of
Spending table.

IT security includes such costs as:

-   Development of the security architecture

-   Development, review and testing of security plans, disaster recovery
    plans, contingency plans

-   Deployment of security-related hardware and software

-   Vulnerability assessments and penetration testing

-   Development of security policies, security training; security
    program assessments

-   Physical security

-   Background checks for Federal and contract IT personnel

    **1.a. If "yes", provide the "Percentage IT Security" for the budget
    year.**

    Provide a percentage using whole numbers plus two decimal places.
    This percentage includes the contractor's security costs being
    charged to the investment.

    **2. Is identifying and assessing security and privacy risks a part
    of the overall risk management effort for each system supporting or
    part of this investment?**

Select 'yes' or 'no'.

For IT investments security risks must be included in the Risk
Management Plan and Risk Matrix.

**3. Security table for planned systems.**

If a program is still in the planning phase, this section should
describe plans for completing a full C&A prior to becoming operational
and provide an approximate date for SCAP approval.

Completion of a SCAP or SCAP update should be included as a milestone in
table II.C.9.

**Note**: Mixed lifecycle investments must complete both the Systems in
Planning and Operational Systems tables.

![](media/image7.wmf){width="5.258333333333334in"
height="1.7166666666666666in"}

Table 8: Systems in Planning -- Security Table

**4. Security table for operational systems.**

Enter the name of each investment system, whether the system is operated
by FAA or contractor personnel and the risk impact level.

For the FAA a C&A consists of the Security Certification and
Accreditation Plan (SCAP) process. Indicate whether or not the C&A was
completed using NIST 800-37 guidelines and enter the date it was
completed.

It is up to the ATO ISSM to decide which standard should be selected for
security control testing. In previous years the decision was made to
follow the NIST 800-53 standard, instead of the 800-26. Identify the
standards that were used for the Security Control testing. Enter the
dates that the Security Control and Contingency Plan testing were
completed.

**Note**: Mixed lifecycle investments must complete both the Systems in
Planning and Operational Systems tables. Additionally, the security
information documented in this section must be consistent with the
information in the DOT ESP system.

![](media/image8.wmf){width="5.998611111111111in"
height="2.4520833333333334in"}

Table 9: Operational Systems -- Security Table

**5. Have any weaknesses, not yet remediated, related to any of the
systems part of or supporting this investment been identified by the
agency or IG?**

Select 'yes' or 'no'.

For increased IT Security funding please give the dollar amount and
clearly mark it as "increased IT security funding". You must also
describe the weakness, using the same phraseology as the POA&Ms, that
the increased funding is slated to address and the corrective measures
for which the funding is being requested. It is a good idea in this
section to describe any additional security controls and studies that
are being funded. *If there are security weaknesses* - regardless of
whether additional funding is being requested -- a brief explanation
should be provided of how the weaknesses are being addressed and/or what
additional controls have been or are being implemented. This should be
consistent with responses in the risk assessment section (I.F) and the
FISMA screening question.

> **5.a. If "yes", have those weaknesses been incorporated into the
> agency's plan of action and milestone process?**
>
> Briefly describe the identified weaknesses and how the program plans
> to mitigate them.

**6. Indicate whether an increase in IT security funding is requested to
remediate IT security weaknesses.**

Select 'yes' or 'no'.

Indicate if the program has requested additional funds for remediating
identified security weakness(es) be selecting "yes' or 'no'.

> **6.a. If "yes", specify the amount, provide a general description of
> the weakness, and explain how the funding request will remediate the
> weakness.**
>
> OMB is asking the program to state the amount, describe the security
> weakness(es) and how the funding request will remediate this
> weakness(es).

**7. How are contractor security procedures monitored, verified, and
validated by the agency for the contractor systems above?**

This question is asking the program to describe the security processes
and procedures that are being used to validate and monitor contractors.
Things to consider when answering this question are:

-   Do contractors receive security training? Does this training include
    rules of behavior?

-   Are contractor facilities inspected periodically?

-   When was the last inspection?

-   Are security requirements for contractors, including background
    investigations, security training participation, and protection of
    sensitive government information included in SOWs and contracts?

-   Are there any specific contract clauses that clearly state all of
    the security requirements?

-   How the program monitors, verifies, and validates the contractor
    security procedures (i.e., periodic reviews, independent third party
    assessments, scheduled and unscheduled site visits, etc.)

    **8. Privacy Table.**

Select the appropriate responses from the answer key. For a listing of
government policies applicable to safe handling of personal information,
see Order 1600.75, Appendices B, C and F. For clarification on DOT or
FAA security policies, contact your security servicing organization.

The E-Government Act require agencies to conduct, and submit to OMB,
privacy impact assessments (PIAs) for all new IT investments
administering information in identifiable form collected from, or about,
*[members of the public.]{.underline}* PIA's should be updated on a
regular basis and the date of the latest PIA should be included.

![](media/image9.wmf){width="5.99375in" height="1.8784722222222223in"}

Table 10: Privacy Table

## 2.7 Section F: Enterprise Architecture (EA)

The Clinger-Cohen Act requires agencies to have an enterprise
architecture. OMB Circular A-130 requires the enterprise architecture to
include As-is (current) and To-be (future) views and defines EA as:

> "A strategic information asset base, which defines the mission, the
> business processes necessary to perform the mission, the data required
> to perform the processes, the applications required to manage the
> data, the technologies required to manage the applications, and
> transitional processes for modernizing."

**1. Is this investment included in your agency's target enterprise
architecture?**

The answer to this question should always be 'yes'. Investments should
be in the FAA EA prior to being developed as a business case.

> **1.a. If "no", please explain why?**
>
> If, for some reason, the investment is not in the FAA EA explain why.

**2. Is this investment included in the agency's EA Transition
Strategy?**

Review DOT's Transition Strategy and FAA Modernization Blueprint. If the
investment is listed in one of the documents, select 'yes'; otherwise
select 'no'.

**2.a. If "yes", provide the investment name as identified in the
Transition Strategy provided in the agency's most recent annual EA
Assessment.**

Provide the required information.

> **2.b. If "no", please explain why.**
>
> Contact the EA SME for guidance.
>
> Because most FAA investments are not specifically identified in the
> DOT Transition

**3. Service Component Reference Model (SRM) Table**

Per the Consolidated Reference Model, the SRM is a business-driven,
functional framework classifying Service Components according to how
they support business and performance objectives. It serves to identify
and classify horizontal and vertical Service Components supporting
federal agencies and their IT investments and assets. The model aids in
recommending service capabilities to support the reuse of business
components and services across the federal government. The SRM is
organized across horizontal service areas, independent of the business
functions, providing a leverage-able foundation for reuse of
applications, application capabilities, components, and business
services.

The goal of Table 3 is to identify 3 to 5 MAJOR functions (components)
performed by the investment. The basis is still the FEA Consolidated
Reference Model which provides the full list of Service Components from
which to choose. OMB recognizes the fact that agencies may use different
terminology for their components and now provides a mapping.

**Note**: The FAA NAS investments must map to ***both*** the NAS and FEA
SRM components

![](media/image10.wmf){width="5.999305555555556in"
height="2.248611111111111in"}

Table 11: Service Component Reference Model Table

-   **Agency Component Name** -- Enter the NAS or FEA SRM component
    name.

```{=html}
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```
-   When entering a NAS component in this table, enter the **NAS
    Component Name** in column 1, the **NAS Component Description** in
    column 2 and either map to a FEA SRM Component in column 4, or enter
    NEW in column 4.

-   If entering a **FEA SRM Component Name** in column 1, enter the
    **FEA SRM Component Description** in column 2 and enter the FEA SRM
    Name again in column 4.

```{=html}
<!-- -->
```
-   **Agency Component Description** -- Enter the NAS or FEA SRM
    component description.

-   **FEA SRM Service Type --** Service Domains are classified into one
    or more Service Types that group similar capabilities in support of
    the domain. Service Types provide an additional layer of
    categorization that defines the business context of a specific
    component within a given domain. Using the FEA SRM enter the Service
    Type.

-   **FEA SRM Component** -- Each Service Type includes one or more
    Service Components that provide the "building blocks' to deliver the
    Component capability to the business. A Component is defined as \"a
    self contained business process or service with predetermined
    functionality that may be exposed through a business or technology
    interface.\" Using the FEA SRM enter the Component.

-   **FEA Service Component Reused --** A component already exists and
    the investment is transferring money to another FAA program or
    government organization in order to use the component. This DOES NOT
    include a transfer of money from one program/organization to another
    for development efforts.

    -   Component Name -- Enter the component name of the other
        investment that uses the same component. This demonstrates
        information sharing and reuse.

    -   UPI -- Enter the UPI code of the investment from which the
        component is shared.

```{=html}
<!-- -->
```
-   **Internal or External Reuse**

    -   Internal -- Component reuse within DOT

    -   External -- Component reuse outside DOT

```{=html}
<!-- -->
```
-   **BY Funding Percentage -- NOT tied to reuse!**

    -   A percentage breakdown/allocation of costs across each of the
        service components included in the TRM table.

    -   If External, the percentage of funding would be the percentage
        transferred to the other organization.

    -   Total percentage of all SRM table components should add up to
        100%

**4. Technical Reference Model (TRM) Table**

Per the Consolidated Reference Model, The TRM is a component-driven,
technical framework categorizing the standards and technologies to
support and enable the delivery of Service Components and capabilities.
It also unifies existing agency TRMs and E-Gov guidance by providing a
foundation to advance the reuse and standardization of technology and
Service Components from a government-wide perspective. Aligning agency
capital investments to the TRM leverages a common, standardized
vocabulary, allowing interagency discovery, collaboration, and
interoperability. Agencies and the federal government will benefit from
economies of scale by identifying and reusing the best solutions and
technologies to support their business functions, mission, and target
architecture.

The goal of Table 4 is to demonstrate how an IT investment aligns with
the FEA Technical Reference Model (TRM). Each SRM Component listed in
Question 3 will have at least one TRM line in this table.

![](media/image11.wmf){width="5.998611111111111in"
height="2.573611111111111in"}

Table 12: Technical Reference Model Table

-   **FEA SRM Component** -- This is the same FEA SRM component name
    that was entered in the Service Component Reference Model table.
    List all the components identified in the SRM table in the left-most
    column of the TRM table. Complete the TRM table ensuring *[at
    least]{.underline}* one TRM row is filled in for each component
    listed in the SRM table.

-   **FEA TRM Service Area --** Service Areas represent a technical tier
    supporting the secure construction, exchange, and delivery of
    Service Components. Each Service Area aggregates the standards and
    technologies into lower-level functional areas. Each Service Area
    consists of multiple Service Categories and Service Standards. This
    hierarchy provides the framework to group standards and technologies
    that directly support the Service Area. Using the FEA TRM enter the
    Service Area.

```{=html}
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```
-   **FEA TRM Service Category --** Service Categories classify lower
    levels of technologies and standards with respect to the business or
    technology function they serve. In turn, each Service Category is
    comprised of one or more Service Standards. Using the FEA TRM enter
    the Service Category.

-   **FEA TRM Service Standard --** Service Standards define the
    standards and technologies that support a Service Category. To
    support agency mapping into the TRM, many of the Service Standards
    provide illustrative specifications or technologies as examples.
    Using the FEA TRM enter the Service Standard.

```{=html}
<!-- -->
```
-   **Service Specification --** Enter the vendor and product
    information for each SRM Component.

**5. Will the application leverage existing components and/or
applications across the Government (i.e., FirstGov, Pay.Gov, etc)?**

Select 'yes' or 'no'.

> **5.a. If "yes", please describe.**
>
> Briefly describe how the investment will leverage government wide
> components/applications.

**6. Does this investment provide the public with access to a government
automated information system?**

Select 'yes' or 'no'.

> **6.a. If "yes", does customer access require specific software (e.g.,
> a specific web browser version)?**
>
> Select 'yes' or 'no'.
>
> **6.a.1. If "yes", provide the specific product name(s) and version
> number(s) of the required software and the date when the public will
> be able to access this investment by any software (i.e. to ensure
> equitable and timely access of government information and services).**
>
> Enter the required information.

# 3. Part II: Planning, Acquisition and Performance Information

## 3.1 Introduction

This section is to be completed for all capital asset investments
identified as Planning, Full Acquisition or Mixed Lifecycle. The
information included in this section should provide FAA management and
OMB with accurate information on acquisition and life-cycle costs. The
full life-cycle costs for an investment include all direct and indirect
costs for planning, procurement, operations and maintenance, including
service contracts, and disposal. It is critical that the cost estimates
are realistic estimates of the final costs and adjusted to consider risk
in order to fully account for all costs and to solidly justify
expenditure for the investment.

## 3.2 Section A: Alternative Analysis

Once a decision is made that an investment is needed a comparison of the
various alternatives is required to ensure that the correct solution or
product is acquired. OMB expects the program to identify alternatives
that have been evaluated using the same criteria, then select and report
details on the top three alternatives as well as the status quo. The
Clinger Cohen Act and OMB Circular A-94 include minimum criteria to be
applied when considering whether to undertake a particular investment,
including criteria related to the quantitatively expressed projected
net, risk-adjusted return on investment and specific quantitative and
qualitative criteria for comparing and prioritizing alternative
investments. For IT investments, agencies should use the Federal
Enterprise Architecture (FEA) to identify potential partnerships or
joint solutions that may be used to close the identified performance
gap.

Information in this section should be consistent with the Business Case
Analysis Report (BCAR). If the investment alternative analysis is more
than 5 years old it is considered outdated and must be updated. This
usually means that JRC approval will be needed for new segments of an
existing investment or for changes to previously approved program
baselines.

For investments that are past the original alternative analysis and/or
didn't have three viable alternatives, the program must schedule a new
alternatives analysis (which includes a Cost Benefit Analysis) and show
this as a milestone in Table II.C.9.

**1. Did you conduct an alternatives analysis for this project?**

Select 'yes' or 'no'.

> **1.a. If "yes", provide the date the analysis was completed.**
>
> Enter the date the AA was completed.
>
> **1.b. If "no", what is the anticipated date this analysis will be
> completed?**
>
> Enter the planned completion date.
>
> **1.c. If no analysis is planned, please briefly explain why.**
>
> Provide the required information.

**2. Results of the alternatives analysis.**

Briefly describe the analysis results for three viable alternatives as
well as the status quo including the risk adjusted lifecycle cost and
benefit estimates.

Ensure the alternatives are all ***viable***. Do not include an
alternative if the analysis showed it was not a feasible or viable
alternative. Enter a very short title for the alternative in the first
column, and provide summary information in the description column.
Column 3 should reflect the ***total lifecycle costs*** and, for the
selected alternative, match the funding requests documented in the
Summary of Spending table.

-   [Planning/Beginning of Full Acquisition]{.underline}: At this point
    in the lifecycle the program should describe the alternatives the
    program considered that would meet a mission need or close a
    performance gap.

-   [Full Acquisition/Mixed Lifecycle]{.underline}: At this point in the
    lifecycle the program should be validating that the selected
    alternative is still the best alternative versus other possible
    alternatives, and continues to meet the specified cost, schedule,
    and performance goals.

![](media/image12.wmf){width="5.998611111111111in"
height="1.5604166666666666in"}

Table 13: Alternative Analysis Results

For new initiatives and/or when the AA cannot be completed before
submission of the business case, include a discussion of alternatives
that will be, or are being, considered and some rough order magnitude
(ROM) estimates of alternative costs, and benefits.

**3. Which alternative was selected by the agency's Executive/Investment
Committee and why was it chosen?**

Identify the alternative from the above analysis that was selected and
explain why. Describe the criteria used to select the alternative and
briefly explain how closing any FAA performance gap was part of the
analysis and decision-making process. This response should also include
a summary comparison of the total ROI and NPV of the alternatives and
other considerations such as differences in costs, benefits, and risks
that explain why one alternative is preferred over the others. If agency
funding decisions/constraints have resulted in the selection or
implementation of an alternative that was not the preferred one, this
should be explained in this section as well.

For Mixed Lifecycle investments, be sure to include Operational Analysis
information. OAs demonstrates that an operational asset is delivering
expected value efficiently and effectively, contributing to performance
goals of the agency, and meeting the service needs of its customers.
This type of analysis should include cost to maintain, failure rates,
and outages information and address the following questions:

-   Asset performance: Is the asset meeting performance goals
    established during investment analysis? Are operating and
    maintenance costs within baseline values? Are support or operational
    problems emerging that could impact asset performance or adversely
    affect ownership costs?

-   Customer satisfaction: Is the asset fully meeting customer/user
    needs? Is it delivering the services it was designed to deliver? Is
    it meeting stakeholder needs (e.g., safety, information security,
    human factors)?

-   Strategic and business results: What strategic goal does this
    investment address? Is it helping to achieve that goal? How is it
    contributing to agency business needs?

-   Financial performance: Are actual in-service costs and benefits
    within baseline values in the Exhibit 300 Program Baseline? If not,
    what corrective action is needed? Are operational costs as low as
    they can be for the results delivered?

-   Innovation: Are there smarter or lower cost ways to satisfy customer
    needs and achieve benefits. Can this investment asset be combined
    with others to better meet organizational goals? Can we use
    technology to deliver better service at lower cost? Is there another
    way to do this work better, more efficiently, or at lower cost?

It is important to have *consistency* between the lifecycle costs for
the selected alternative in this section, the SoS table and table
II.C.9. In some cases there may be reasons why the costs for the
selected alternative will not *match* the costs shown in the SoS table
or table II.C.9 but this would be the exception not the rule. Listed
below are some reasons why these costs may not match that can be
included, as appropriate, in this response:

-   The SoS table documents the investment's total lifecycle costs, from
    the beginning until it is discontinued or replaced. This includes
    risk adjust and inflated dollars.

-   The AA table documents the total lifecycle costs of all three
    alternatives. Normally the analysis should be based on constant/real
    dollars instead of inflated and would not normally include sunk
    costs.

-   The costs shown in the SoS table includes government labor (FTE)
    costs, however FTE costs were not included in the alternative
    analysis.

For new initiatives and/or when the AA cannot be completed before
submission of the business case, include a discussion of alternatives
that will be, or are being, considered and some rough order magnitude
(ROM) estimates of alternative costs, and benefits. Include the planned
completion date for the Alternative Analysis, Cost-Benefit Analysis,
etc. and include these as milestones in Table II.C.9.

**4. What specific qualitative benefits will be realized?**

Describe the intangible benefits that this investment will realize. If
there are no qualitative benefits then state this. **Do not** include
quantitative benefits as these have been included in the Cost Benefit
Analysis.

## 3.3 Section B: Risk Management

In order to successfully address this section of the Exhibit 300 the
program must have performed a Risk Assessment and developed a Risk
Management Plan at initial concept, and demonstrated active risk
management throughout the life-cycle of the investment. For all
investments, both IT and non-IT, the programs Risk Management Plan must
discuss how the program will identify, manage and mitigate risks. This
documentation should also include a Risk Matrix that would, at a
minimum, list the risks, probability of occurrence, and mitigation
strategies.

Indicate whether any costs for mitigating risks have been included in
the table II.C.9 milestones, regardless of whether they are shown as
individual milestones or included as part of other milestones.

**Note**: The ***Risk Matrix*** should be updated at least once a year.
The ***Risk Management Plan*** should be updated as needed.

**1. Does the investment have a Risk Management Plan?**

Select 'yes' or 'no'. This response includes both the Risk Management
Plan and the associated Risk Matrix.

> **1.a. If "yes", what is the date of the plan?**
>
> In many cases the Risk Management Plan which documents the risk
> processes will not need to be updated, however risks are continuously
> monitored and updated. The risk matrix should be updated as risks are
> mitigated and closed, and new risks are identified. This can be
> monthly quarterly, semi-annually and annually.
>
> **1.b. Has the Risk Management Plan been significantly changed since
> last year's submission to OMB?**
>
> Select 'yes' or 'no'.
>
> Again, the Risk Management Plan which documents the risk processes may
> not have changed, however risks are constantly changing from year to
> year. Risks become obsolete, some are mitigated and new risks are
> identified.
>
> **1.c. If "yes", describe any significant changes.**
>
> Describe any changes to the RMP or Risk Matrix. Additionally, briefly
> describe the processes the program is using to continuously monitor
> and update risks.

**2. If there currently is no plan, will a plan be developed?**

Select 'yes' or 'no'.

> **2.a. If "yes", what is the planned completion date?**
>
> Enter the planned completion date.
>
> **2.b. If "no", what is the strategy for managing the risks?**
>
> Briefly describe how the program will review and manage the risks.

**3. Briefly describe how investment risks are reflected in the
lifecycle cost estimate and investment schedule.**

Describe how the costs and completion dates for the milestones shown in
table II.C.9 have been risk adjusted. This would include the
incorporation of costs for risk mitigation activities, as well as the
existence of a management reserve and use of methods/tools for
estimating risk adjusted cost and completion date values.

## 3.4 Section C: Cost and Schedule Performance

The government's emphasis on managing program cost and schedule
performance is increasing. OMB requirement for managing all major
investments:

-   Agencies must use a performance-based acquisition management system
    based on Earned Value Management to obtain timely cost and schedule
    performance data

    -   Required on contractor and Government program efforts

    -   Required for fixed price and cost type contracts

-   The system must also measure milestone progress in terms of cost,
    capability of the investment to meet specified requirements,
    timeliness, and quality

The success or failure of investments to achieve cost, schedule, and
performance goals can significantly affect the FAA's ability to maintain
budget discipline and achieve its strategic plan. Program managers need
early visibility into a contract's progress to immediately identify any
problems. This allows time for contractors and the government to
implement corrective actions before significant variances can occur.

OMB and AMS policies require programs with DME activities to use EVM
based on ANSI/EIA-748 guidelines. Therefore, programs must fill out this
section for investments that are in the Planning, Full Acquisition, and
Mixed Lifecycle phases. The information documented in this section
includes both contractor and government FTEs and must be consistent with
the Summary of Spending table.

Table II.C.9 includes three sections:

-   The ***Initial Baseline*** (original program baseline) will include
    milestones as approved by the JRC at either the Initial Investment
    or the original Final Investment Decision. Whether the program
    includes the initial or final baseline depends on what CPIC phase
    the investment is in (planning, acquisition or mixed lifecycle). If
    the baseline is based on the Final Investment Decision, this
    baseline must be included in all subsequent Exhibit 300s and cannot
    be revised.

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-   The ***Current Baseline*** reflects the most current JRC approved
    Program Baseline and requires identification of DME Useful Segments.
    The current approved baseline must be reconciled through the
    Parameter Sheets in SPIRE to the CIP. This baseline would include:

    -   Useful Segments (or phases within a useful segment) that have
        received the Authorization to Proceed (ATP) by the JRC

    -   Useful Segments (or phases within a useful segment) that have
        not received the ATP by the JRC

-   For the ***Current Baseline Variance*** FAA programs will use
    "at-completion baseline and forecast dates" to determine the current
    baseline schedule variance in days.

**Note**: Mixed lifecycle investments are required to report all
milestones and costs (DME and O&M) in Section II.C and do not have to
complete III.B. Additionally mixed lifecycle investments should complete
an Operational Analysis for the steady state portion even if they do not
need to complete Part III.

**1. Does the earned value management system meet the criteria in
ANSI/EIA Standard 748?**

ANSI/EIA 748 is a government standard that requires integrated project
management. The processes include integration of program scope,
schedule, and cost objectives, establishment of a baseline plan for
accomplishment of program objectives, and use of earned value techniques
for performance measurement during the execution of a program.

In order to be compliant an investment must meet all 32 guidelines. Only
FAA programs that have been rated 'green' for ANSI/EIA 748 compliance
should answer 'yes' to this question. All other programs should answer
'no'.

**2. Answer the following questions about current cumulative cost and
schedule performance. The numbers reported below should reflect current
actual information.**

> **2.a. What is the Planned Value (PV)?**
>
> Planned Value is the time phased BAC budgeted costs for the scheduled
> work. It's also known as BCWS (Budgeted Cost for Work Scheduled).
>
> **2.b. What is the Earned Value (EV)?**
>
> Earned Value is the budget value of the work that has been
> accomplished. It's also known as BCWP (Budgeted Cost for Work
> Performed).
>
> **2.c. What is the Actual Cost of work performed (AC)?**
>
> Actual Cost is the cost for the work that has been accomplished. It's
> also known as ACWP (Actual Cost of Work Performed).
>
> **2.d. What costs are included in the reported Cost/Schedule
> Performance information (Government Only/Contractor Only/Both)?**
>
> Programs should incorporate both contract and government costs in
> table II.C.9. At the government level both program and field FAA FTE
> costs should be includes in the milestones costs.

-   The use of FTEs by most of programs is for Program Management and
    sustaining Engineering support. In these instances, the FAA FTE
    effort will be included as Level of Effort (LOE) in the EVM Control
    Accounts and OMB-300 reporting Milestones for PM or SE.

-   Some FAA programs use FAA FTE resources for measurable activities,
    such as, deployment. In these instances, the FAA FTE effort will be
    included as a measurable activity in the EVM Control Accounts and
    the OMB-300 reporting Milestones that provide a measure of schedule
    progress.

> Programs having problems determining how to incorporate FAA FTEs into
> the EVM Control Accounts or the OMB-300 reporting milestones should
> contact a member of the VMO or EVM team for additional guidance.
>
> **2.e. "As of" date.**
>
> Enter the required date.

**3. What is the calculated Schedule Performance Index (SPI=EV/PV)?**

The Schedule Performance Index is the schedule efficiency factor.
Measures the value of work performed (EV) against work scheduled
(budget).

**4. What is the schedule variance (SV=EV-PV)?**

The Schedule Variance is the difference between the value of work
performed (EV) less value of work scheduled (budget).

**5. What is the calculated Cost Performance Index (CPI=EV/AC)?**

The Cost Performance Index is the cost efficiency factor. Measures the
value of work accomplished against actual cost.

**6. What is the cost variance (CV=EV-AC)?**

The Cost Variance is the difference between the earned value and the
actual cost of work completed.

**7. Is the CV% or SV% greater than + or -- 10%?**

Select 'yes' or 'no'.

> **7.a. If "yes", was it the CV, SV or Both?**
>
> Select the appropriate response.
>
> **7.b. If "yes", explain the variance.**
>
> If any of the cost, schedule or performance variances are not within
> 10% of current baseline provide complete analysis of the variance.
> This would include the cause, corrective actions, and the most likely
> EAC. This information is required for both positive and negative
> variances. Use the EVM system to identify the specific work packages
> where problems are occurring.
>
> **7.c. If "yes" what corrective actions are being taken?**
>
> Describe the corrective actions to be taken in order to correct the
> variance.
>
> **7.d. What is the most current "Estimate at Completion"?**
>
> Based on the corrective actions provide the most current EAC. Do NOT
> include O&M costs in this calculation.

**8. Have any significant changes been made to the baseline during the
past fiscal year?**

Select 'yes' or 'no'.

Proposed baseline changes must be submitted to OMB prior to budget
request; proposed changes should not be assumed approved. Investments
that re-baseline are expected to provide the following information to
DOT and OMB before submitting the Exhibit 300 in September:

-   **Background:** Include Information about the most recent previous
    baseline decision, the events leading up to the need to re-baseline,
    and the methods used to determine the new cost and/or schedule
    baseline.

-   **Impact/New Program Baseline:** Compare the revised baseline to the
    old, address the impact on project schedule, costs, benefits/ROI,
    and other investments.

-   **JRC/IRB Concerns:** Address any special conditions or constraints
    placed by the JRC.

> **8.a. If "yes", when was it approved by OMB?**
>
> Enter the OMB approval date.

**9. Initial baseline and current approved baseline comparison.**

The foundation of this table is the Work Breakdown Structure (WBS) which
organizes and defines the project scope and includes both current Work
Packages and future Planning Packages.

![](media/image13.wmf){width="5.997916666666667in"
height="2.7006944444444443in"}

Table 14: Approved Program Baseline Table

**Table II.C.9 Guidelines**

-   Milestones should be broken out by lifecycle phase. Mixed lifecycle
    investments would include milestones in multiple phases (planning,
    acquisition, O&M).

-   Include security milestones such as the completion of security
    plans, risk assessments, SCAPS and C&As.

-   Prototypes and pilots must be treated and reported as full
    acquisition and their development is subject to EVM requirements.

-   If the Initial and Current Milestones/Baselines are the same (there
    have been no changes to the original JRC approved baseline), then
    the planned dates and estimated costs from the "Initial Baseline"
    should be repeated in the planned completion dates and costs of the
    "Current Baseline" columns.

-   If initial baselines are not part of the current milestones (unable
    to map between the two), list the initial milestones information and
    leave the current baseline blank for that same row. List the current
    milestones and their completion dates and costs in the rows below
    the initial baseline.

-   The totals in Section II.C and the SOS should include all risk
    adjustments and management reserve. If the management reserve or
    other risk-related costs are not included in the milestone costs
    include them as a separate milestone.

-   AMS standard level 1 milestones must be included in the baseline
    however level 2 milestones should be included as appropriate.
    Milestone descriptions should be clear and concise and should be
    consistent with the Blue Sheet and RPD activities. Coordinate with
    EVM team to ensure the milestones in table II.C.9 have been
    adequately documented.

-   Complete and Future milestones beyond the current budget year may be
    rolled-up or consolidated.

-   Make sure the initial and current baselines agree with what ATO-F
    has on record. Reconcile any differences.

-   F&E and O&M milestones should be grouped together in separate
    sections of the table and have associated subtotals.

-   O&M milestones/costs should be broken out by fiscal year.

-   The estimated total costs should be consistent with the total
    lifecycle costs for the selected alternative and the lifecycle costs
    documented in the Summary of Spending.

-   Consistent with OMB and FAA EVM guidance FTE costs must be included
    in the table. F&E FTE costs should be incorporated in the milestone
    costs instead of being listed separately. O&M FTE costs also must be
    included in the table either as part of the annual O&M costs or as a
    separate annual O&M FTE cost row.

-   For mixed lifecycle investments include O&M milestones separately at
    the bottom of the table - but do NOT include O&M milestones and
    their costs in the EVM calculations (including BAC or EAC).

# 4. Part III: Operation and Maintenance Investments

## 4.1 Introduction

Poorly performing assets detract from mission effectiveness by
deflecting resources that could be used more effectively to support an
agency's core mission.  If not properly managed, an investment's useful
life can be shortened dramatically or prolonged beyond the planned
termination date at high cost and risk, thereby reducing the return on
the taxpayers' investment.  Once an investment is operational the focus
should be placed on analyzing it's ability to support the organizational
mission. By continuously monitoring performance the FAA can diagnose and
mitigate potential problems before they become crises. 

OMB expects investments to use Operational Analysis (OA),
Post-Implementation Review (PIRs) and Service Level Reviews (SLRs) to
monitor performance.

-   The OA process consists primarily of capturing and tracking
    operational cost and performance information in the steady state
    phase and measuring that performance against the established cost,
    schedule, and performance goals.  Operational analysis can
    reveal: (1) previously undetected faults in the design,
    construction, or installation: (2) if operational or maintenance
    costs are higher than anticipated; or (3) if the asset fails to meet
    program requirements.  Operational analysis allows management to
    make decisions which can minimize the total cost of ownership.

-   PIRs are a subset of the OA process that allow program managers to
    evaluate stakeholder and customer/user satisfaction with the end
    product, mission/program impact, and technical capability.

-   SLRs are used to periodically report on PIR and OA activities,
    findings, and status of recommended actions

## 4.2 Section A: Risk Management

In order to successfully address this section of the Exhibit 300 the
program must have performed a Risk Assessment and developed a Risk
Management Plan at initial concept, and demonstrated active risk
management throughout the life-cycle of the investment. For all
investments, both IT and non-IT, the programs Risk Management Plan must
discuss how the program will identify, manage and mitigate risks. This
documentation should also include a Risk Matrix that would, at a
minimum, list the risks, probability of occurrence, and mitigation
strategies.

Indicate whether any costs for mitigating risks have been included in
the table II.C.9 milestones, regardless of whether they are shown as
individual milestones or included as part of other milestones. Please
note that the Risk Management Plan and Risk Matrix should be updated at
least once a year.

**1. Does the investment have a Risk Management Plan?**

Select 'yes' or 'no'. This response includes both the Risk Management
Plan and the associated Risk Matrix.

> **1.a. If "yes", what is the date of the plan?**
>
> In many cases the Risk Management Plan which documents the risk
> processes will not need to be updated, however risks are continuously
> monitored and updated. The risk matrix should be updated as risks are
> mitigated and closed, and new risks are identified. This can be
> monthly quarterly, semi-annually and annually.
>
> **1.b. Has the Risk Management Plan been significantly changes since
> last year's submission to OMB?**
>
> Again, the Risk Management Plan which documents the risk processes may
> not have changed, however risks are constantly changing from year to
> year. Risks become obsolete, some are mitigated and new risks are
> identified.
>
> **1.c. If "yes", describe any significant changes.**
>
> Describe any changes to the RMP or Risk Matrix. Additionally, briefly
> describe the processes the program is using to continuously monitor
> and update risks.

**2. If there currently is no plan, will a plan be developed?**

Select 'yes' or 'no'.

> **2.a. If "yes", what is the planned completion date?**
>
> Enter the planned completion date.
>
> **2.b. If "no", what is the strategy for managing the risks?**
>
> Briefly describe how the program will review and manage the risks.

## 4.3 Section B: Cost and Schedule Performance

Operational Analysis demonstrates that an operational asset is
delivering expected value efficiently and effectively, contributing to
performance goals of the agency, and meeting the service needs of its
customers. This type of analysis should include cost to maintain,
failure rates, and outages information and address the following
questions:

-   Asset performance: Is the asset meeting performance goals
    established during investment analysis? Are operating and
    maintenance costs within baseline values? Are support or operational
    problems emerging that could impact asset performance or adversely
    affect ownership costs?

-   Customer satisfaction: Is the asset fully meeting customer/user
    needs? Is it delivering the services it was designed to deliver? Is
    it meeting stakeholder needs (e.g., safety, information security,
    human factors)?

-   Strategic and business results: What strategic goal does this
    investment address? Is it helping to achieve that goal? How is it
    contributing to agency business needs?

-   Financial performance: Are actual in-service costs and benefits
    within baseline values in the Exhibit 300 Program Baseline? If not,
    what corrective action is needed? Are operational costs as low as
    they can be for the results delivered?

-   Innovation: Are there smarter or lower cost ways to satisfy customer
    needs and achieve benefits. Can this investment asset be combined
    with others to better meet organizational goals? Can we use
    technology to deliver better service at lower cost? Is there another
    way to do this work better, more efficiently, or at lower cost?

**1. Was an Operational Analysis conducted?**

Select 'yes' or 'no'.

> **1.a. If "yes", provide the date the analysis was completed.**
>
> Enter the date the analysis was completed.
>
> **1.b. If "yes", what were the results?**
>
> Describe the OA, PIR, and SLA activities that have been planned,
> completed, or are ongoing. Include the results as well as any actions
> that are being taken.
>
> **1.c. If "no", please explain why it was not conducted and if there
> are any plans to conduct and Operational Analysis in the future.**
>
> Briefly explain why OA, PIR, and SLA activities have not been
> conducted and when the program plans to schedule these activies.

**2. Complete the following table to compare actual cost performance
against the planned cost performance baseline. Milestones reported may
include specific individual scheduled preventative and predictable
corrective maintenance activities, or may be the total of planned annual
operations and maintenance efforts.**

**2.a. What costs are included in the reported Cost/Schedule Performance
information (Government Only/Contractor Only/Both)?**

Programs should incorporate both contract and government costs in table
III.B.2. At the government level both program and field FAA FTE costs
should be included in the yearly maintenance milestones.

**2.b. Plan vs. Actual Performance Table**

![](media/image14.wmf){width="6.002777777777778in"
height="1.5881944444444445in"}

Table 15: Steady State Plan vs. Actual Performance Table

**Table III.C.2.b Guidelines**

-   A one line rollup of completed DME total costs should be included at
    the top of the table so that the total planned baseline at the
    bottom is consistent with the SOS total (including FTE costs).

-   Dates and costs shown in "Planned" Columns should be consistent with
    the Current JRC Approved Baseline

-   O&M milestones must be shown for each year for the previous year
    through the budget year or the last year of the current segment that
    the JRC has approved for funding and execution (whichever is the
    later date).

-   Operational FTE costs must be included either as part of the
    milestones/annual cost line or as a separate line.

# APPENDIX A - CROSSWALK OF THE EXHIBIT 300 SECTIONS

+-------+--------------------------------------------------------------+
| *     |                                                              |
| *CROS |                                                              |
| SWALK |                                                              |
| OF    |                                                              |
| EX    |                                                              |
| HIBIT |                                                              |
| 300   |                                                              |
| SECTI |                                                              |
| ONS** |                                                              |
|       |                                                              |
| **    |                                                              |
| (With |                                                              |
| each  |                                                              |
| other |                                                              |
| and   |                                                              |
| other |                                                              |
| Ex    |                                                              |
| hibit |                                                              |
| 300   |                                                              |
| re    |                                                              |
| lated |                                                              |
| do    |                                                              |
| cumen |                                                              |
| ts)** |                                                              |
+=======+==============================================================+
| **    | **What to Check**                                            |
| Quest |                                                              |
| ion** |                                                              |
+-------+--------------------------------------------------------------+
| > Ex  | > The information provided in the Exhibit 300 should be      |
| hibit | > consistent with the investment's lifecycle documentation.  |
| > 300 | > Lifecycle documents that are referenced in the business    |
|       | > case are:                                                  |
|       |                                                              |
|       | -   Acquisition Plan (Section I.C)                           |
|       |                                                              |
|       | -   Security Plan (Section I.E)                              |
|       |                                                              |
|       | -   Privacy Impact Assessment (Section I.E)                  |
|       |                                                              |
|       | -   Alternatives Analysis and Benefit-Cost Analysis (Section |
|       |     II.A)                                                    |
|       |                                                              |
|       | -   Risk Management Plan (Section II.B, III.A)               |
|       |                                                              |
|       | -   Operational Analysis and PIR reports                     |
+-------+--------------------------------------------------------------+
| >     | > Guidance for this number is found in OMB Circular A-11     |
| I.A.5 | > Exhibit 53. The UPI shown for this project/investment on   |
|       | > the Exhibit 300 should be consistent with the UPI shown in |
|       | > the Exhibit 53.                                            |
+-------+--------------------------------------------------------------+
| >     | Ensure your response is consistent with the funding request  |
| I.A.6 | documented in the **Budget Year (BY)** column of the Summary |
|       | of Spending (SoS) table and the Contracts/Task Orders table. |
|       | For example:                                                 |
|       |                                                              |
|       | -   If ***Operations and Maintenance*** has been selected as |
|       |     the response to this question OMB would not expect to    |
|       |     see an ***Acquisition*** funding request in the SoS      |
|       |     table for the current budget year.                       |
|       |                                                              |
|       | -   If ***Planning*** has been selected as the response to   |
|       |     this question OMB would only expect to seen planning     |
|       |     contracts being executed. Other contracts would most     |
|       |     likely be future contracts that are being planned.       |
+-------+--------------------------------------------------------------+
| >     | > Ensure the information included in this response is        |
| I.A.8 | > consistent with the responses provided in I.A.6, Section   |
|       | > I.D, Section II.A and II.C. For example, OMB expects the   |
|       | > program to describe how the program will address the       |
|       | > performance gap as well as the FAA and DOT strategic goals |
|       | > and objectives the investment supports. This information   |
|       | > should be consistent with the performance goals documented |
|       | > in Tables 1 and 2.                                         |
+-------+--------------------------------------------------------------+
| > I.  | > Ensure this date is consistent with any JRC dates that     |
| A.9.a | > have been included in the response to I.A.8 and table      |
|       | > II.C.9.                                                    |
+-------+--------------------------------------------------------------+
| > I   | > Ensure the response to this question is consistent with    |
| .A.15 | > Section I.E. For example, if the program answers 'yes' to  |
|       | > this question OMB would expect to see the Security section |
|       | > filled in.                                                 |
+-------+--------------------------------------------------------------+
| > I   | > Ensure that the response to this question is consistent    |
| .A.19 | > with the information provided on Exhibits 52 and 53.       |
+-------+--------------------------------------------------------------+
| >     | > The [total]{.underline} lifecycle costs documented in the  |
| I.B.1 | > Summary of Spending table should match the total lifecycle |
|       | > costs documented in Sections II.C and III.B and should be  |
|       | > consistent with the current JRC approved baseline totals.  |
|       | >                                                            |
|       | > The total lifecycle costs in the SoS should also be        |
|       | > consistent with the total lifecycle costs for the selected |
|       | > alternative (Section II.A.2) and SPIRE data.               |
+-------+--------------------------------------------------------------+
| >     | > The total value of the contracts listed in the             |
| I.C.1 | > Contracts/Task Orders table should be a logical            |
|       | > representation of the total lifecycle costs documented in  |
|       | > the Summary of Spending table. For example, OMB would not  |
|       | > expect to see a total contract value greater than the      |
|       | > total lifecycle costs (without FTE costs). Significant     |
|       | > differences should be explained in Section I.C.2.          |
+-------+--------------------------------------------------------------+
| >     | > The response to this question should be consistent with    |
| I.C.2 | > information provided in Section II.C.                      |
+-------+--------------------------------------------------------------+
| > I.D | > The performance goals documented in Tables 1 and 2 should  |
|       | > be consistent with the FAA and DOT strategic goals and     |
|       | > objectives described in the response to question I.A.8 and |
|       | > linked to any benefits that were described in the          |
|       | > alternative analysis section.                              |
+-------+--------------------------------------------------------------+
| >     | > The information in the Security section should be          |
|  I.E. | > consistent with information provided in the responses to   |
|       | > I.A.6 and I.A.15. For example if the program selected      |
|       | > Mixed Lifecycle as the response to question I.A.6 then OMB |
|       | > would expect to see both the ***Planning*** and            |
|       | > ***Operational*** tables filled in.                        |
|       | >                                                            |
|       | > Security Plan and C&A dates may be included as milestones  |
|       | > in table II.C.9. Section II.C dates should then be         |
|       | > consistent with Section I.E.                               |
|       | >                                                            |
|       | > Ensure that any responses regarding security risks and     |
|       | > required mitigation actions are consistent with risk       |
|       | > information provided in Sections II.B and III.A. Ensure    |
|       | > security risks are documented in the project's Risk        |
|       | > Register/Matrix or provide an explanation if they are      |
|       | > documented elsewhere.                                      |
+-------+--------------------------------------------------------------+
| >     | > The systems that are included in the ***Privacy*** table   |
| I.E.8 | > should be the same systems that appear in the              |
|       | > ***Planning*** and ***Operational*** tables.               |
+-------+--------------------------------------------------------------+
| >     | > Any benefits described in this section should be           |
| II.A. | > consistent with the FAA and DOT strategic goals and        |
|       | > objectives described in the response to I.A.8 and the      |
|       | > performance goals in Section I.D.                          |
+-------+--------------------------------------------------------------+
| > I   | > The total lifecycle costs for the selected alternative,    |
| I.A.2 | > including FTE costs, should be consistent with the total   |
|       | > lifecycle costs documented in the SoS and II.C.9 tables.   |
+-------+--------------------------------------------------------------+
| >     | > The information documented in this section should be       |
| II.C. | > consistent with the response to question I.A.6.            |
+-------+--------------------------------------------------------------+
| > I   | > The response to this question should be consistent with    |
| I.C.1 | > the information provided in the response to question       |
|       | > I.C.2. The response should be "No" if an investment has    |
|       | > not scored "green" in its EVM assessment.                  |
+-------+--------------------------------------------------------------+
| >     | > Any large cost or schedule variances, especially negative  |
| II.C. | > variances [\>]{.underline} 10% and related mitigation      |
| > 3,  | > actions should be clearly documented in the risk           |
| > 4,  | > register/database.                                         |
| > 5,  |                                                              |
| > 6,  |                                                              |
| > 7   |                                                              |
+-------+--------------------------------------------------------------+
| >     | > The information documented in this section should be       |
| III.B | > consistent with the response to question I.A.6. The        |
|       | > information documented in this section should be           |
|       | > consistent with the response to question I.A.6.  Total     |
|       | > costs in the table should be consistent with total costs   |
|       | > in the SOS table (including FTE costs).  Also,             |
|       | > descriptions of completed, ongoing, or planned operational |
|       | > analysis (OA) and/or Post Implementation Review (PIR)      |
|       | > activities should be consistent with PIR and OA            |
|       | > information in the FAA PIR plan and in the investment\'s   |
|       | > Investment Strategy Planning (ISP) document.  The ISP is   |
|       | > part of the documentation required for JRC investment      |
|       | > decisions and it should include information about PIRs and |
|       | > OA activities consistent with AMS guidance.                |
+-------+--------------------------------------------------------------+

# APPENDIX B -- OPERATIONAL ANALYSIS AND PIRs

**Template for Operational Analysis Report**

This template guides the service organization when preparing an
Operational Analysis Report. It includes information that is the basis
for the summarized performance information presented in the Exhibit 300
and at service level reviews. The template is used to document and
report an investment's operational analysis procedures, results, and
future plans including scheduled activities and corrective actions. The
types of information, methods for collecting and analyzing the
information and the level of detail will depend on the size, complexity,
and requirements of each investment. Some specific performance
information needs to be included that is critical to determining if the
investment is meeting its mission and functional objectives. The
template can be augmented with charts/graphs to illustrate results and
trends. Operational analysis documentation must be available for the
Joint Resources Council, the Operational Quality Council, and the Office
of Management and Budget (OMB).

For those investments using this template or completing the operational
analysis process for the first time not all information requested in
this template may be available. In such chases Operational Analysis
teams should provide the information that is being collected and
available and complete as much information as possible in each section
of the template. Questions about this template should go to the
Operational Quality Council, Post Implementation Review Quality Officer.

**Operational Analysis Report**

***(Program Name)***

**Version \#**

**Approved by:                  [Signature]{.underline}
                  Date:**\
*Vice President or Director of the performing service organization*

**Approved by:                  [Signature]{.underline}
                  Date:**\
*Vice President or Director of the operating service organization(s)*
*(if different from the performing service organization)*

~\
~**Submitted by:                  [Signature]{.underline}
                  Date:**\
*Appropriate preparing organization*

 

  --------------------------------- -------------------------------------
  **[Service Organization Focal     **[Operating Organization Focal
  Point]{.underline}**              Point]{.underline}**

  *Name*                            *Name*

  *Code and organization*           *Code and organization*

  *Phone Number*                    *Phone Number*

  *FAX Number*                      *FAX Number*

  *Email Address*                   *Email Address*
  --------------------------------- -------------------------------------

**Federal Aviation Administration**\
**800 Independence Avenue**\
**Washington, D.C. 20591**

<table>
<colgroup>
<col style="width: 8%" />
<col style="width: 13%" />
<col style="width: 10%" />
<col style="width: 3%" />
<col style="width: 5%" />
<col style="width: 6%" />
<col style="width: 3%" />
<col style="width: 3%" />
<col style="width: 10%" />
<col style="width: 2%" />
<col style="width: 7%" />
<col style="width: 6%" />
<col style="width: 8%" />
<col style="width: 10%" />
</colgroup>
<tbody>
<tr class="odd">
<td colspan="14"><strong>1:  IDENTIFYING INFORMATION</strong></td>
</tr>
<tr class="even">
<td colspan="6">1.1: Investment Title</td>
<td colspan="8"> </td>
</tr>
<tr class="odd">
<td colspan="6">1.2: Program Office</td>
<td colspan="8"> </td>
</tr>
<tr class="even">
<td colspan="6">1.3: Date of Operational Analysis</td>
<td colspan="8"> </td>
</tr>
<tr class="odd">
<td colspan="6">1.4 : Investment (Project) Manager</td>
<td colspan="8"> </td>
</tr>
<tr class="even">
<td colspan="6">1.5: Investment Owner</td>
<td colspan="8"> </td>
</tr>
<tr class="odd">
<td colspan="6">1.6: Submission Date</td>
<td colspan="8"> </td>
</tr>
<tr class="even">
<td colspan="6">1.7: Revision Number</td>
<td colspan="8"> </td>
</tr>
<tr class="odd">
<td colspan="6">1.8: Revision Date</td>
<td colspan="8"> </td>
</tr>
<tr class="even">
<td colspan="14"><strong>2: OPERATIONAL ANALYSIS
DESCRIPTION</strong></td>
</tr>
<tr class="odd">
<td colspan="14"><p>Refer to FAST for guidance on conducting an
operational analysis, including responsibilities. Provide a brief
summary of the operational analysis, including:</p>
<ul>
<li><p>The period of the analysis,</p></li>
<li><p>Its scope (investment segments/subsystems, any specific
locations, etc),</p></li>
<li><p>Operational analysis team composition</p></li>
<li><p>The overall process</p></li>
<li><p>Assumptions related to the strategic/business, customer,
technical or financial analyses conducted as part of the operational
analysis.</p></li>
</ul></td>
</tr>
<tr class="even">
<td colspan="14"><p> <br />
 <br />
 <br />
 <br />
 <br />
 <br />
 </p>
<p> </p></td>
</tr>
<tr class="odd">
<td colspan="14"><strong>3: STRATEGIC AND BUSINESS/MISSION
ANALYSIS</strong></td>
</tr>
<tr class="even">
<td colspan="14">For each Department of Transportation Strategic plan
and FAA Flight Plan goal that the investment supports, explain if and
how the investment is continuing to meet FAA and Department mission or
strategic goals. <em><strong>Clearly identify any impacts on performance
that are caused by sources external to the investment or asset, such as
infrastructure (facilities, environmental, telecommunications)
environment, or events outside the control of the investment and those
responsible for it</strong></em>. Include the information listed
below.</td>
</tr>
<tr class="odd">
<td colspan="14"><p><strong>3.1:</strong> <strong>Summary of Goals
Supported by the Investment</strong></p>
<p>Summarize the specific DOT and FAA investment supported by this
investment. Use appropriate goals from the DOT Strategic Plan, the FAA
Flight Plan, and Line of Business (LOB) business plans. For those
investments that complete Exhibits 300, include performance
metrics/indicators in the areas of “mission and business results” and
“processes and activities” being used to monitor performance and ensure
DOT and Flight Plan mappings are consistent with those in the Exhibit
300.</p>
<p><strong>3.2: Data Collection and Analysis Methods, Procedures, and/or
Tools</strong></p>
<p>Describe methods, procedures, and/or tools used to collect and
analyze performance goal data.</p>
<p><strong>3.3: Performance Results</strong></p>
<p>Describe overall results including any instances of exceeding
performance goals as well as failures to meet them. Describe the causes
and impact of positive or negative performance results.</p>
<p><strong>3.4: Planned Actions</strong></p>
<p>Describe activities and actions planned as a result of exceeding
performance expectations or to mitigate the impact in areas where
performance goals are not being met.<br />
 </p>
<p> </p></td>
</tr>
<tr class="even">
<td colspan="14"><strong>4: Customer, User, Stakeholder
Analysis/Assessment</strong></td>
</tr>
<tr class="odd">
<td colspan="14"><p>Identify investment users, customers, and
stakeholders and the processes used to measure the effectiveness of the
investment in supporting user and/or customer functions and to measure
user and/or customer satisfaction. (<em><strong>Note:</strong> objective
quantitative measures are preferred for effectiveness/efficiency,
whereas, surveys, user group meetings, customer focus groups, etc. are
typically used to assess user and/or customer satisfaction and to elicit
potential improvements</em>). Summarize the results of data collection
and survey efforts or other user or customer inputs and usage trends.
Questions to be answered are: Does the existing asset provide customers
with needed functionality and performance? Is it helping users perform
their functions more easily or efficiently? For guidance in selecting
appropriate performance measure, refer to OMB guidance that can be found
at <a
href="http://www.whitehouse.gov/omb/part/2004_program_eval.pdf">www.whitehouse.gov/omb/part/2004_program_eval.pdf</a>.</p>
<p>Regardless of which “customer results” performance indicators and
goals are reported in the Exhibit 300, customer/user/stakeholder
indicators/metrics should address: Does the investment reflect
<em><strong>current</strong></em> user or customer functional or
performance requirements? Has the investment exceeded expectations? How
does the investment address the following operational indicators in
relation to customer and stakeholder requirements/expectations and their
ability to perform their functions:</p>
<ul>
<li><p>Efficiency</p></li>
<li><p>Effectiveness</p></li>
<li><p>Maintainability/supportability</p></li>
<li><p>Productivity</p></li>
<li><p>Usability</p></li>
<li><p>Suitability</p></li>
<li><p>Security</p></li>
<li><p>Availability</p></li>
<li><p>Reliability</p></li>
<li><p>Energy usage</p></li>
<li><p>Costs and cost savings</p></li>
</ul>
<p><em><strong>Clearly identify any impacts on performance that are
caused by sources external to the investment or asset, such as
infrastructure (facilities, environmental, telecommunications)
environment, or events outside the control of the investment and those
responsible for it</strong></em>. Include the information listed
below.</p></td>
</tr>
<tr class="even">
<td colspan="14"><ol type="1">
<li><p><strong>: Customers, Users, Stakeholders, and Related Performance
Goals and Metrics</strong></p></li>
</ol>
<p>Identify primary customers/users and stakeholders related to this
investment and summarize customer/user/stakeholder requirements,
performance and satisfaction goals, and related metrics supported by
this investment including related Exhibit 300 performance
metrics/indicators in the area of “Customer Results” or “Processes and
Activities” (e.g., productivity, efficiency, errors, complaints, and
timeliness).</p>
<p><strong>4.2:</strong> <strong>Data Collection and Analysis Methods,
Procedures, and/or Tools</strong></p>
<p>Describe methods, procedures, and/or tools used to collect and assess
customer/user efficiency, system usability and suitability, and
customer/user satisfaction and other data (e.g., performance data,
including error data, surveys, user group meetings, customer focus
groups, system data, etc.)</p>
<p><strong>4.3: Performance Results</strong></p>
<p>Describe overall results on actual performance and the results of
surveys or other user or customer inputs, and usage analysis/trends,
including any instances of exceeding performance goals as well as
failures to meet performance goals. Describe the causes and impact of
positive or negative performance results.</p>
<p><strong>4.4: Planned Actions</strong></p>
<p>Describe activities and actions planned as a result of exceeding
performance expectations or to mitigate the impact in areas where
performance goals have not been met.</p></td>
</tr>
<tr class="odd">
<td colspan="14"><strong>5: Technical Performance Analysis</strong></td>
</tr>
<tr class="even">
<td colspan="14"><p>Briefly describe the methods, and/or tools used to
collect and analyze technical performance and the results of the
analysis. The Program Requirements attachment to the Exhibit 300 Program
Baseline defines technical performance for the investment program.
Regardless of which “technical” performance indicators and goals are
reported in the Exhibit 300, technical performance indicators/metrics
should include:</p>
<ul>
<li><p>Functional performance/effectiveness</p></li>
<li><p>Unscheduled outages</p></li>
<li><p>Maintenance and equipment outages</p></li>
<li><p>Mean Time Between Outages/Failures</p></li>
<li><p>Replaced component count for the reporting period</p></li>
<li><p>Mean Time to Restore</p></li>
<li><p>Corrective maintenance actions labor hours</p></li>
<li><p>Operational availability</p></li>
<li><p>Impact on interfacing technology/downstream users</p></li>
<li><p>Functional performance/effectiveness (in relation to functional
requirements/objectives)</p></li>
</ul>
<p>The following technical performance goals should also be addressed
either in this area or in the user/customer areas where most
appropriate:</p>
<ul>
<li><p>Operational productivity measures (e.g., mean time to perform
tasks/functions, human-system throughput</p></li>
<li><p>Human-system error rates</p></li>
<li><p>Training time to proficiency</p></li>
<li><p>Staffing support requirements (including technical skills,
aptitudes, and related numbers)</p></li>
</ul>
<p><em><strong>Clearly identify any impacts on performance that are
caused by sources external to the investment or asset, such as
infrastructure (facilities, environmental, telecommunications)
environment, or events outside the control of the investment and those
responsible for it</strong></em>.</p></td>
</tr>
<tr class="odd">
<td colspan="14"><p><strong>5.1: Technical Goals and
Metrics</strong></p>
<p>Summarize the technical goals and related metrics supported by this
investment, including related Exhibit 300 performance metrics/indicators
in the area of “Technology”.</p>
<p><strong>5.2:</strong> <strong>Data Collection and Analysis Methods,
Procedures, and/or Tools</strong></p>
<p>Describe methods, procedures, and/or tools used to collect and assess
technical performance data (e.g. system reports, change order requests,
etc.)</p>
<p><strong>5.3: Performance Results</strong></p>
<p>Describe overall results including any instances of exceeding
performance goals as well as failures to meet them. Describe the causes
and impact of positive or negative performance results.</p>
<p><strong>5.4: Planned Actions</strong></p>
<p>Describe activities and actions planned as a result of exceeding
performance expectations or to mitigate the impact in areas where
performance goals have not been met.</p></td>
</tr>
<tr class="even">
<td colspan="14"><strong>6: Financial Performance Analysis</strong></td>
</tr>
<tr class="odd">
<td colspan="14">Explain if this investment is meeting financial/cost
and schedule goals. Discuss actual cost performance to date and any
expected changes to annual estimates as well as total baseline costs. In
addition to the costs of the investment, this financial section should
address performance in relation to cost saving/avoidance goals and
metrics (e.g., cost avoidance or savings goals and indicators/metrics in
the processes and activities or technology areas of the Exhibit 300) and
the return-on-investment and payback-period estimates of the
cost/benefit analyses that were part of investment analysis.
<em><strong>Clearly identify any impacts on performance that are caused
by sources external to the investment or asset, such as infrastructure
(facilities, environmental, telecommunications) environment, or events
outside the control of the investment and those responsible for
it</strong></em>. Include the information listed below.</td>
</tr>
<tr class="even">
<td colspan="14"><p><strong>6.1: Financial Goals and
Metrics</strong></p>
<p><strong>6.1.1 Cost elements/metrics</strong></p>
<p>Explain the elements that are part of the investment’s operations and
maintenance costs being tracked. Some financial/cost metrics that should
be considered by all programs include:</p>
<ul>
<li><p>Costs of maintenance per system/box</p></li>
<li><p>Repair costs</p></li>
<li><p>Replacement parts/component costs</p></li>
<li><p>Training costs</p></li>
<li><p>Staffing costs</p></li>
<li><p>Software license/maintenance</p></li>
<li><p>Application hosting environment (infrastructure)</p></li>
<li><p>Application support (to meet new/changing requirements)</p></li>
</ul>
<p><strong>6.1.2: Cost and benefits goals</strong></p>
<p>Summarize financial goals and related metrics supported by this
investment including related Exhibit 300 saving/avoidance performance
goals and metrics (for example, cost avoidance or savings goals and
indicators in the areas of processes and activities or technology or
integrated logistics support) and the return on investment and payback
period estimates of the cost/benefit analyses that were part of the
investment analysis. Include information about the alternatives
analysis. Include the following information where available. If it is
too soon (insufficient portions of the investment are operational) to
make determinations, provide a planned date when sufficient operational
information will be available to validate benefit expectations
including, where applicable, financial performance goals from Section
I.D of the Exhibit 300):</p>
<ul>
<li><p>What is the date of the program’s most current
alternatives-cost/benefit analysis (AA-CBA) document?</p></li>
<li><p>What is the value of the quantifiable benefits reported in the
AA-CBA for the selected alternative? Is that still a valid projection?
If not, do you have a current projection of the quantifiable lifecycle
benefits for your program? If yes, please describe.</p></li>
<li><p>In the AA-CBA document, assumptions were made to estimate the
end-of-life date for the program. What is the end-of-life date and is
that date still valid? If not, what is the revised end-of-life
date?</p></li>
<li><p>Please describe how the program is measuring and recording the
value of accumulated benefits (including financial performance goals
from Section I.D of the exhibit 300). Please detail the estimated
benefits accumulation schedule (by FY) for the program consistent with
your alternatives-cost/benefit analysis:</p></li>
</ul>
<blockquote>
<p>Previous Year-1 and earlier: $</p>
<p>Previous Year: $</p>
<p>Current Year: $</p>
<p>Budget Year: $</p>
<p>Budget Year + 1: $</p>
<p>Budget Year +2: $</p>
<p>Budget Year +3: $</p>
<p>Budget Year +4 and Beyond: $</p>
</blockquote>
<p><mark></mark></p>
<p><mark> </mark></p>
<p><strong>6.2:</strong> <strong>Data Collection and Analysis Methods,
Procedures, and/or Tools</strong></p>
<p>Describe methods, procedures, and/or tools used to collect and
analyze cost, benefit, and schedule performance data.</p>
<p><strong>6.3: Cost Drivers</strong></p>
<p>Identify major cost drivers related to this investment and how they
impact costs</p>
<p><strong>6.4: Performance Results</strong></p>
<p>Describe overall results including any instances of exceeding cost
performance goals as well as failures to meet them. Describe the causes
and impact of positive or negative performance results.</p>
<p><strong>6.5: Planned Actions</strong></p>
<p>Describe activities and actions planned as a result of exceeding
performance expectations or to mitigate the impact in areas where
performance goals have not been met.</p></td>
</tr>
<tr class="odd">
<td colspan="14"><p><strong>7:  Actual Performance in Relation to
Established Exhibit 300 Baseline Performance Goals</strong></p>
<p>(<em><strong>Note:</strong> This section should only be completed by
investments that complete Exhibit 300s and the information should be
consistent with that reported in the Exhibit 300</em>.)</p></td>
</tr>
<tr class="even">
<td colspan="14">For past and current fiscal years, provide the
Performance Goals and Measures table(s) with prior-year actual results
and current-year interim results, if known. Complete Table 1 and/or
Table 2 below. If the project collects, manages, or reports to other
performance goals and measures, add rows to record those goals and
measures.</td>
</tr>
<tr class="odd">
<td colspan="14"><p><strong>7.1: Table 1 (Optional)</strong></p>
<p>Use of Table 1 is <em><strong>optional</strong></em>. It should only
be used for investments that report in an OMB Exhibit 300 if either 1)
not all actual performance results have been reported yet, or 2) the
investment team wants to include Table 1 information for historical
purposes. OMB guidance indicates that information technology (IT)
investments initiated prior to FY2005 and non-IT investments must use
Table 1, while IT investments initiated in FY2005 or beyond must use
Table 2. Consequently, if Table 1 is included, consistent with the
Exhibit 300, <em><strong>it should normally not include goals for
periods beyond FY 2005</strong></em>. If in the OMB Exhibit 300, Table 1
includes goals past FY 2005, then this table need only cover performance
goals reported in the Exhibit 300 up through the current fiscal year.
<em><strong>Clearly identify any impacts on performance that are caused
by sources external to the investment or asset, such as infrastructure
(facilities, environmental, telecommunications) environment, or events
outside the control of the investment and those responsible for
it</strong></em>.</p></td>
</tr>
<tr class="even">
<td colspan="2"><strong>Past and Current Fiscal Years</strong></td>
<td><strong>Strategic Goal(s) Supported</strong></td>
<td colspan="2"><strong>Existing Baseline</strong></td>
<td colspan="3"><strong>Planned Performance Improvement
Goal</strong></td>
<td colspan="2"><strong>Actual Performance Improvement
Results</strong></td>
<td colspan="2"><strong>Planned Performance Metric</strong></td>
<td colspan="2"><strong>Actual Performance Metric Results</strong></td>
</tr>
<tr class="odd">
<td colspan="2"><strong>Last fiscal year</strong></td>
<td> </td>
<td colspan="2"> </td>
<td colspan="3"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
</tr>
<tr class="even">
<td colspan="2"><strong>Current fiscal year</strong></td>
<td> </td>
<td colspan="2"> </td>
<td colspan="3"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
</tr>
<tr class="odd">
<td colspan="14"></td>
</tr>
<tr class="even">
<td colspan="14"><p><strong>7.2: Table 2</strong></p>
<p>This table need only cover performance goals reported in the Exhibit
300 up through the current fiscal year.</p></td>
</tr>
<tr class="odd">
<td><strong>Past and Current Fiscal Year</strong></td>
<td><strong>DOT Strategic and FAA Flight Plan Goals
Supported</strong></td>
<td colspan="2"><strong>Measurement Area</strong></td>
<td colspan="3"><strong>Measurement grouping</strong></td>
<td colspan="2"><strong>Measurement Indicator</strong></td>
<td colspan="2"><strong>Baseline</strong></td>
<td colspan="2"><strong>Planned Improvements to the
Baseline</strong></td>
<td><strong>Actual Results</strong></td>
</tr>
<tr class="even">
<td><strong>Past fiscal year(s)</strong></td>
<td></td>
<td colspan="2">Mission and Business Results</td>
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Past fiscal year(s)</strong></td>
<td></td>
<td colspan="2">Customer Results</td>
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
</tr>
<tr class="even">
<td><strong>Past fiscal year(s)</strong></td>
<td></td>
<td colspan="2">Processes and Activities</td>
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
</tr>
<tr class="odd">
<td><strong>Past fiscal year(s)</strong></td>
<td></td>
<td colspan="2">Technology</td>
<td colspan="3"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td colspan="2"></td>
<td></td>
</tr>
<tr class="even">
<td><strong>Current fiscal year</strong></td>
<td></td>
<td colspan="2">Mission and Business Results</td>
<td colspan="3"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td> </td>
</tr>
<tr class="odd">
<td><strong>Current fiscal year</strong></td>
<td></td>
<td colspan="2">Customer Results</td>
<td colspan="3"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td> </td>
</tr>
<tr class="even">
<td><strong>Current fiscal year</strong></td>
<td></td>
<td colspan="2">Processes and Activities</td>
<td colspan="3"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td> </td>
</tr>
<tr class="odd">
<td><strong>Current fiscal year</strong></td>
<td></td>
<td colspan="2">Technology</td>
<td colspan="3"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td colspan="2"> </td>
<td> </td>
</tr>
</tbody>
</table>

+-----------------------------------------------------------------------+
| **8: Table for Operations and Maintenance (O&M)                       |
| Activities/Milestones**                                               |
|                                                                       |
| -   ***This table should include only operations and maintenance      |
|     milestones/activities that are part of an investment's            |
|     steady-state or AMS in-service management phase.*** This table    |
|     compares the actual cost and schedule performance in relation to  |
|     current baseline cost and schedule goals. For investments that    |
|     report in the Exhibit 300 and have a completed Exhibit 300        |
|     Program Baseline approved by the Joint Resources Council or other |
|     designated Investment Review Board, the baseline information in   |
|     these tables should be consistent with that in the approved       |
|     Exhibit 300 Baseline document. The level of detail should be the  |
|     same or greater than in the Exhibit 300. At a minimum, provide    |
|     one "milestone" line for each fiscal year that shows the total    |
|     costs and completion date of the O&M activities for that fiscal   |
|     year. Milestones/activities may also be broken out in sufficient  |
|     detail for each year to show operations activities that are       |
|     supposed to take place consistent with service-level agreements   |
|     or plans. Investments that do not submit Exhibit 300s to OMB may  |
|     tailor or streamline this table based on the requirements of the  |
|     JRC or the appropriate subordinate Investment Review Board. The   |
|     cost estimates would include maintenance, training, repair,       |
|     disposition, and other operational costs, including FTE costs.    |
|     The milestones listed on the table may consist of a rollup of     |
|     past fiscal year costs, one line for annual costs at least up     |
|     through the budget year, and a roll up of future out year costs   |
|     beyond the budget year. They may also include sub-milestones with |
|     a breakout of the activities and related costs during each fiscal |
|     year (such as equipment repair costs, replacements or parts,      |
|     technical documentation updates, training activities, and related |
|     FTE costs). Investments without a baseline that has been          |
|     officially approved by the Joint Resources Council or Subordinate |
|     Investment Review Board should still fill in the "Planned"        |
|     schedule and cost column and provide a brief explanation at the   |
|     bottom of the table about the source or basis of the planned cost |
|     and schedule data.                                                |
|                                                                       |
| -   **Questions about this table should be referred to the Value      |
|     Management Office or the PIR Quality Officer**.                   |
|                                                                       |
| > []{.mark}                                                           |
+-----------------------------------------------------------------------+
| []{.mark}                                                             |
|                                                                       |
| +------------+------------+----------+----------+---------------+     |
| | **D        | **Current  | *        | **Actual | **Actual      |     |
| | escription | Baseline   | *Current | Co       | Costs**       |     |
| | of         | /Planned** | Baseline | mpletion |               |     |
| | Milestone  |            | /Planned | Date**   |               |     |
| | (Milestone | **         | Costs**  |          |               |     |
| | costs      | Schedule** |          |          |               |     |
| | include    |            |          |          |               |     |
| | FTE        |            |          |          |               |     |
| | costs)**   |            |          |          |               |     |
| +------------+------------+----------+----------+---------------+     |
| |            | Planned    | Planned  | Comp     | \$ M costs to |     |
| |            | Completion | \$M      | Date -   | date          |     |
| |            | Date       | costs at | Blank if |               |     |
| |            |            | m        | not      |               |     |
| |            |            | ilestone | complete |               |     |
| |            |            | comp     |          |               |     |
| +------------+------------+----------+----------+---------------+     |
| |            |            |          |          |               |     |
| +------------+------------+----------+----------+---------------+     |
| |            |            |          |          |               |     |
| +------------+------------+----------+----------+---------------+     |
| |            |            |          |          |               |     |
| +------------+------------+----------+----------+---------------+     |
| | TOTALS     | **Current  | *        | **Actual | **(Actual**   |     |
| |            | Schedule** | *Current | Co       | **Cost** to   |     |
| |            | B/L        | total**  | mpletion | date)         |     |
| |            | Completion | O&M      | Date**   |               |     |
| |            | Date       | **Cost** | (when    |               |     |
| |            |            | baseline | co       |               |     |
| |            |            |          | mpleted) |               |     |
| +------------+------------+----------+----------+---------------+     |
| |            |            |          |          |               |     |
| +------------+------------+----------+----------+---------------+     |
|                                                                       |
| **\*Note:** Prior to NAS handoff, programs will be using F&E funds to |
| cover O&M costs. These costs are subject to EVM and will therefore be |
| included in the EVM reporting process. When NAS handoff is complete,  |
| the investment or the operational segment/milestones will become      |
| subject to Operational Analysis.                                      |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| **9: ANALYSIS OF RISK**                                               |
+-----------------------------------------------------------------------+
| Briefly describe how risks and related mitigation activities are      |
| monitored and any significant changes to the risk environment/status  |
| or risk mitigation actions.                                           |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+
| **10: INNOVATION ANALYSIS**                                           |
+-----------------------------------------------------------------------+
| Addressing **innovation** in the operational analysis demonstrates    |
| that investment managers are monitoring the current state of and      |
| availability in the marketplace of cost-saving and                    |
| performance-enhancing technologies and are communicating with         |
| investment customers and stakeholders to address questions such as:   |
|                                                                       |
| -   How can we better meet customer needs?                            |
|                                                                       |
| -   Could we meet these same customer needs at lower cost?            |
|                                                                       |
| -   How could this investment be combined with others to better meet  |
|     our organization's strategic goals?                               |
|                                                                       |
| -   Is the current investment implementation going to meet its life   |
|     expectancy targets?                                               |
|                                                                       |
| -   Are the customer's most recent performance standards projections  |
|     capable of being met with the current investment implementation?  |
+-----------------------------------------------------------------------+
| **10.1: Methods used for Innovation Analysis and Related Results**    |
|                                                                       |
| > Briefly describe methods used to periodically assess if this        |
| > investment adheres to the ***current*** Departmental and FAA        |
| > Enterprise Architecture and whether alternatives are available to   |
| > this investment, including new technical solutions and other        |
| > systems developed by other agencies. Include the results of E-Gov   |
| > strategy reviews and updated analysis of alternatives, market       |
| > research, benchmarking and other methods used to ensure innovative  |
| > approaches and technical solutions are being sought and considered. |
| > Briefly describe the results of these analyses/studies/market       |
| > research, etc., and any need to start considering alternatives to   |
| > this investment. Also address steps taken to ensure workforce       |
| > competency and training in relation to this investment.             |
| >                                                                     |
| > **10.2:** What was the plan and schedule for performing technical   |
| > refreshes in the current and next fiscal year? What are the         |
| > associated costs to complete technical refreshes?                   |
| >                                                                     |
| > **10.3:** Are you planning a major systems upgrade at any time over |
| > the next four (4) years? If yes, during which fiscal year will this |
| > occur? Briefly describe why the upgrade is needed and the estimated |
| > cost of the upgrade.                                                |
| >                                                                     |
| >  \                                                                  |
| >  \                                                                  |
| >  \                                                                  |
| >                                                                     |
+-----------------------------------------------------------------------+
| **11: SUMMARY OF FINDINGS AND RECOMMENDATIONS**                       |
+-----------------------------------------------------------------------+
| ***If any cost, schedule, or performance variance is 10 percent or    |
| more***, in the sections that follow provide a complete analysis of   |
| the reasons for the cost overrun or performance gap with planned      |
| actions to correct the variance and information on techniques that    |
| generated the savings.                                                |
+-----------------------------------------------------------------------+
| **11.1: Summary Gap Analyses**                                        |
+-----------------------------------------------------------------------+
| For each area of the operational analysis (Mission and business,      |
| customer/user/stakeholder, technical, and financial goals), describe  |
| significant performance gaps and their root cause, and what, if any,  |
| additional functionality, capacity, or performance is required.       |
| Include information about any gap in the investment's ability to      |
| adhere to the ***current*** DOT and FAA Enterprise Architectures and  |
| to satisfy or comply with ***current*** customer, strategic,          |
| technical, and security requirements and standards. If any cost,      |
| schedule, or performance variance is plus/minus 10 percent or more,   |
| summarize the reasons for the cost overrun or performance gap with    |
| planned actions to correct the variance and share techniques that     |
| generated savings. Address lessons-learned, why the problems occurred |
| (root cause), or how savings were realized. Explain if further        |
| analysis is planned to better determine variance causes and how to    |
| address them.                                                         |
+-----------------------------------------------------------------------+
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
| \                                                                     |
|  \                                                                    |
|                                                                       |
+-----------------------------------------------------------------------+
| **11.2:  Opportunities/Alternatives for Improvements**                |
+-----------------------------------------------------------------------+
| Based on the gap analysis, identify opportunities or alternatives to  |
| address the gap by improving functionality or performance             |
| (effectiveness and or efficiency). These opportunities may include    |
| investing in technology compliant with the FAA and Departmental       |
| Enterprise Architectures, business process reengineering, or          |
| collaboration with another project. Discuss whether E-Gov initiatives |
| can be leveraged. Describe if/how the project could deliver services  |
| more efficiently in a web-based environment.                          |
+-----------------------------------------------------------------------+
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
|  \                                                                    |
|                                                                       |
+-----------------------------------------------------------------------+

  ------------------------------ ----------- ---------- ------------ ------------ -----------------
  **11.3: Conclusions and                                                         
  Recommendations**                                                               

  State if current benefits                                                       
  continue to justify the                                                         
  operational costs of the                                                        
  investment or whether it                                                        
  should be enhanced or                                                           
  terminated. **Specifically                                                      
  recommend if existing asset                                                     
  should be 1) continued with no                                                  
  additional investment, 2)                                                       
  enhanced, 3) terminated, or 4)                                                  
  migrated to a similar asset                                                     
  and retired.** If the asset is                                                  
  to be enhanced or terminated,                                                   
  summarize the actions to be                                                     
  taken this fiscal year.                                                         

   \                                                                              
   \                                                                              
   \                                                                              
   \                                                                              
   \                                                                              
   \                                                                              
   \                                                                              
   \                                                                              
   \                                                                              
                                                                                  

  **11.4: Program/Investment                                                      
  Owner                                                                           
  Recommendation/Concurrence**                                                    

                                                                                  

  **12 : ACTION PLAN **                                                           

  (If applicable) In the table                                                    
  below, list actions planned                                                     
  for each performance area                                                       
  analyzed and the status of                                                      
  these actions. **Uncompleted                                                    
  In Service Decision (ISD)                                                       
  action plan activities should                                                   
  also be included**. Actions                                                     
  may include plans to conduct                                                    
  analyses for alternate                                                          
  technologies or obtain more                                                     
  information, as well as                                                         
  corrective actions to address                                                   
  positive or negative cost or                                                    
  performance variances.                                                          

  **Action Planned**             **Planned   **Actual   **Planned    **Actual     **Current
                                 Start       Start      Completion   Completion   Status/Progress
                                 Date**      Date**     Date**       Date**       made**

  **Strategic and                                                                 
  Business/Mission Support**                                                      

                                                                                  

                                                                                  

                                                                                  

  **Customer, User, Stakeholder                                                   
  Analysis**                                                                      

                                                                                  

                                                                                  

                                                                                  

  **Technical Performance**                                                       

                                                                                  

                                                                                  

                                                                                  

  **Financial Performance**                                                       

                                                                                  

                                                                                  

                                                                                  

  **Other Related Actions**                                                       
  (e.g., Integrated Logistics                                                     
  Support, Innovation, Risk,                                                      
  etc.)                                                                           

                                                                                  

                                                                                  

                                                                                  
  ------------------------------ ----------- ---------- ------------ ------------ -----------------

# APPENDIX C -- USEFUL WEB LOCATIONS

FAA's Exhibit 300 portal **-** [https://nase.amc.faa.gov]{.underline}

FAA Acquisition Management System FAST URL -
<http://fast.faa.gov/index.htm>

FAA Contract Writing Toolbox URL - <http://204.108.10.60/conwrite/>

FAA Policies, Regulations, and Guidelines -
<http://www.faa.gov/regulations/>

FAA Flight Plan - <http://www.faa.gov/AboutFAA/Plans.cfm>

DOT Strategic Plan -
<http://www.dot.gov/insdtdot/geninfo.htm?pg=stratplan>

DOT Publications -
<http://www.dot.gov/business/manuals_publications.htm>

DOT Departmental Information Resource Management Manual (DIRMM -
<http://cio.ost.dot.gov/policy/dirmm.html>

DOT Capital Planning and Investment Control Guidelines -
<http://cio.ost.dot.gov/capital_programming/index.html>

Department of Homeland Security (DHS) Strategic Plan -
<http://www.dhs.gov/dhspublic/theme_home1.jsp>

OMB URLs important for Capital Planning processes and documentation:

-   **OMB Circular A-11, Section 300, Planning, Budgeting, acquisition,
    and management of Capital Assets,** The most recent official and
    final version of the Exhibit 300 reporting instructions and format
    document are on OMB's website. Section 300 includes **OMB's 5-Point
    Scoring Criteria for IT Investments (also used by FAA**): OMB
    Circulars are located on OMB's website at:
    <http://www.whitehouse.gov/omb/circulars/index.html>. Please note
    again that scoring is based on OMB's perception of the strength of
    the IT project management, rather than simply the writing of the
    Exhibit 300.

-   **OMB Circular A-11, Section 53, Information Technology and
    E-Government.** This section or exhibit shows all of an agency's IT
    and e-Gov spending, and lists major as well as non-major projects
    individually and using a unique project identifier (UPI). This
    section of Circular A-11 is also found at:
    <http://www.whitehouse.gov/omb/circulars/index.html>.

-   **OMB Circular A-94: Guidelines and Discount Rates for Benefit-Cost
    Analysis of Federal Programs:** This circular provides general
    guidance for conducting benefit-cost and cost-effectiveness
    analyses. It also provides specific guidance on the discount rates
    to be used in evaluating Federal programs whose benefits and costs
    are distributed over time. Located on OMB's website:\
    <http://www.whitehouse.gov/omb/circulars/a094/a094.html#1>

-   The OMB Circular A-11, Part 7, **Capital Programming Guide:** The
    document's purpose is to provide guidance for a disciplined capital
    programming process for capital assets. Located on OMB's website:
    <http://www.whitehouse.gov/omb/circulars/a11/cpgtoc.html>

-   **Implementing the President's Management Agenda for E-Government:**
    This document describes the E-Government achievements since February
    2002, the challenges facing E-Government leaders in 2003 and 2004,
    and the strategy to address these challenges. Located on OMB's
    website: <http://www.whitehouse.gov/omb/egov/2003egov_strat.pdf>

-   *The President's Management Agenda is located at:
    <http://www.whitehouse.gov/omb/budget/fy2002/mgmt.pdf>.*

-   The FEA reference models can be found on [www.egov.gov]{.underline},
    This URL includes the PRM with detailed guidance about how to
    incorporate PRM Indicators into the performance goals and measures
    in Table 2 of the Exhibit 300 and on how to incorporate the PRM into
    agencies' performance goals and measures.

-   The Federal Architecture Management System (FEAMS) is a web-based
    management system designed to provide agencies with access to
    initiatives aligned to the FEA and the associated reference models.
    FEAMS should be checked to help identify other government
    initiatives that might be alternatives to addressing a performance
    gap. FEAMS is located on: https://www.feams.gov

-   Information on EVMS is available at <http://www.acq.osd.mil/pm>.

# APPENDIX D -- GLOSSARY OF ESSENTIAL TERMS

**Appropriation**

An appropriation is an act of Congress that enables Federal agencies to
spend money for specific purposes. Congress must then pass
*appropriations* bills to provide money to carry out government programs
for that year. Appropriations bills divided up by type of program and
agency into thirteen separate bills: Agriculture;
Commerce/Justice/State; Defense; District of Columbia; Energy and Water;
Foreign Operations; Interior; Labor/Health and Human Services/Education;
Legislative Branch; Military Construction; Transportation;
Treasury/Postal Service; and Veterans Affairs/Housing and Urban
Development.

**Authorization**

An authorization is an act of Congress that establishes or continues a
federal program or agency, and sets forth the guidelines to which it
must adhere.

**Balanced Budget**

**A balanced budget occurs when total receipts equal total outlays for a
fiscal year.**

**Budget Authority (BA):** The authority provided by law to incur
financial *[obligations]{.underline}* that will result in
*[outlays]{.underline}*. Specific forms of budget authority include
appropriations, borrowing authority, contract authority, and spending
authority from offsetting collections.

**Budget Resolution**

The budget resolution is the annual framework within which Congress
makes its decisions about spending and taxes. This framework includes
targets for total spending, total revenues, and the deficit, as well as
allocations, within the spending target, for discretionary and mandatory
spending.

**"Cap"**

A "cap" is a legal limit on annual discretionary spending.

**Capital Planning and Investment Control**

A decision-making process for ensuring that information technology (IT)
investments integrate strategic planning, budgeting, procurement, and
the management of IT in support of agency missions and business needs. A
Capital Planning and Investment Control cycle typically includes three
major strategies: Select (investments are selected), Control
(investments are controlled and monitored as they are implemented), and
Evaluate (investments are evaluated after they have reached full
operating capacity).

**Clinger-Cohen Act**

The Clinger-Cohen Act is also known as the Information Technology
Management Reform Act of 1996. The act supplements the Paperwork
Reduction Act of 1980 by establishing a comprehensive approach for
executive agencies to improve the acquisition and management of their
information resources (IT).

**Cost Benefit Analysis**

A systematic, quantitative method to assess the desirability of
government projects or policies when it is important to take a long view
of future effects and a broad view of possible side-effects.

**Deficit**

The deficit is the difference produced when spending exceeds revenues
within a fiscal year.

**Discount Factor**

The factor that translates expected benefits or costs in any given
future year into present value terms. The discount factor is equal to

1/(1 + i)t

where i is the interest rate and t is the number of years from the date
of initiation for the program or policy until the given future year.

**Discretionary Spending**

Discretionary spending is what the President and Congress decide to
spend through the 13 annual appropriations bills. Examples include money
for such activities as the FBI and the Coast Guard, housing and
education, space exploration and highway construction, and defense and
foreign aid. See Mandatory Spending.

**E-Government**

E-Government (electronic government) refers to the federal government's
use of information technologies (such as Wide Area Networks, the
Internet, and mobile computing) to exchange information and services
with citizens, businesses, and other arms of government. Refers to the
use by the Government of web-based Internet applications and other
information technologies, combined with processes that implement these
technologies, to enhance the access to and delivery of Government
information and services to the public, other agencies, and other
Government entities; or to bring about improvements in Government
operations that may include effectiveness, efficiency, service quality,
or transformation.

**Entitlement**

An entitlement program is one in which the federal government is legally
obligated to make payments or provide aid to any person who meets the
legal criteria for eligibility. Examples include Social Security,
Medicare, Medicaid, and Food Stamps.

**Fiscal year**

The fiscal year is the federal government's accounting period. It begins
on October 1 and ends up September 30. For example, fiscal year 2003
began on October 1, 2002 and will end on September 30, 2003.

**Full-time Equivalents (FTEs)**

Civilian employment in the Executive Branch is measured on the basis of
full-time equivalents. One FTE is equal to one work year or 2,080
non-overtime hours. For example, one full-time employee counts as one
FTE, and two half-time employees also count as one FTE.

**Lifecycle Costs**

The overall estimated cost, both government and contractor, for a
particular program alternative over the time period corresponding to the
life of the program, including direct and indirect initial costs plus
any periodic or continuing costs of operation and maintenance.

**Major IT Investment** (Investments that are required to be reported to
OMB): A Major IT investment means a system or investment that requires
special management attention because of its importance to an agency's
mission; was a major investment in the FY 2005 submission and is
continuing; is for financial management and spends more than \$500,000;
is directly tied to the top two layers of the Federal Enterprise
Architecture (Services to Citizens and Mode of Delivery); is an integral
part of the agency's modernization blueprint (EA); has significant
program or policy implications; has high executive visibility; and is
defined as major by the agency's capital planning and investment control
process. OMB may work with the agency to declare other investments as
major investments. Investments that are E-Government in nature or use
e-business technologies must be identified as major investments
regardless of the costs.

**Mandatory Spending**

Mandatory spending is authorized by permanent law rather than annual
appropriations. An example is Social Security. The President and the
Congress can change the law to change the eligibility criteria and thus
the level of spending on mandatory programs, but they do not have to
take annual action to ensure the continuation of spending.

**Mixed Lifecycle Investment**

An investment that has both development/modernization/enhancement (DME)
and steady-state aspects. For example, a mixed lifecycle investment
could include a prototype or module of a system that is operational with
the remainder of the system in DME stages; or, a service contract for
steady-state on the current system with a DME requirement for system
upgrade or replacement.

**Net Present Value/NPV**

The difference between the discounted present value of benefits and the
discounted present value of costs

**Obligations:** A binding agreement that will result in
*[outlays]{.underline}*, immediately or in the future. Budgetary
resources must be available before obligations can be incurred legally.

**"Off-Budget"**

By law, the Government must distinguish "off-budget" programs separate
from the budget totals. Social Security and the Postal Service are
"off-budget."

**"On-Budget"**

Those programs not legally designated as off-budget.

**Outlays:** A payment to liquidate an *[obligation]{.underline}* (other
than the repayment of debt principal). Outlays generally equal to cash
disbursements, but also are recorded for cash-equivalent transactions,
such as the subsidy cost of direct loans and loan guarantees, and
interest accrued on public issues of the public debt. [Outlays are the
measure of Government spending]{.underline}.

**ROI**

Return on Investment

**Risk Adjusted Lifecycle Costs**

The overall estimated cost for a particular investment alternative over
the time period corresponding to the life of the investment, including
direct and indirect initial costs plus any periodic or continuing costs
of operation and maintenance that has been adjusted to accommodate any
risk identified in the risk management plans.

**Sunk Cost**

A cost incurred in the past that will not be affected by any present or
future decision. Sunk costs should be ignored in determining whether a
new investment is worthwhile.

**Useful Segment/Module**

An economically and programmatically separate component of a capital
investment that provides a measurable performance outcome for which the
benefits exceed the costs, even if no further funding is appropriated.

**Budget Authority and Outlays**

Spending levels in the President's Budget and in congressional budget
resolutions are measured in dollars in two ways: budget authority and
outlays. Outlays represent actual disbursements by the Treasury. When
the Treasury issues a check in fiscal year 1998, that is a fiscal year
1998 outlay. Budget authority, on the other hand, is the legal authority
for an agency to enter into obligations of dollars in a certain amount
that will result in outlays. When Congress appropriates (appropriations
bills) funds for a particular program, it is enacting budget authority
-- not outlays.

# APPENDIX E -- EVM TERMS

-   **Planned Value (PV) = [Budgeted Cost of Work Scheduled
    (BCWS):]{.underline}** The sum of the budgets for all work packages,
    planning packages, etc., scheduled to be accomplished (including
    in-process work packages), plus the amount of level of effort and
    apportioned effort scheduled to be accomplished within a given time
    period.

-   **Earned Value (EV) = [Budgeted Cost for Work Performed
    (BCWP):]{.underline}** The sum of the budgets for completed work
    packages and completed portions of open work packages, plus the
    applicable portion of the budgets for level of effort and
    apportioned effort. This is [value earned]{.underline} to date.

-   **Actual Cost (AC) = [Actual Cost of Work Performed
    (ACWP):]{.underline}** The costs actually incurred and recorded in
    accomplishing the work performed within a given time period.

-   **Variance --** The difference (in \$\$) between your plan and your
    actuals

    -   **Cost Variance --** the numerical difference between value
        earned (BCWP) and actual cost (ACWP)

    -   **Schedule Variance --** The numerical difference between value
        earned (BCWP) and the planned budget (BCWS)

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-   **Either one may be positive or negative**

    -   A negative value normally denotes either having accomplished
        less than scheduled or spent more than planned for the work
        accomplished.

    -   A positive value normally denotes having accomplished more than
        what had been scheduled or spent less than planned for the
        amount of work that was accomplished.

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```
-   **Performance Index --** A measure of the efficiency of work
    performed to date

    -   **Cost Performance Index --** cost efficiency factor achieved by
        relating value earned (BCWP) to the dollars actually spent
        (ACWP): CPI = BCWP/ACWP

    -   **Schedule Performance Index --** schedule efficiency factor
        achieved by relating value earned (BCWP) to the scheduled work
        (BCWS): SPI = BCWP/BCWS

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```
-   **Budget at Completion (BAC) --** The sum of all budgets (BCWS) on
    the project.

-   **Estimate at Completion (EAC) --** The sum of all actual costs to
    date plus the estimate of costs for authorized work remaining: EAC =
    ACWP + Estimate To Complete

    -   This should be updated periodically

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-   **Estimate to Complete (ETC) --** That portion of the EAC that
    addresses total expected costs for all work remaining

# APPENDIX F -- FEDERAL ACQUISITION REGULATION

**FAR Performance Based Contracting Definition**

**Subpart 37.6---Performance-Based Acquisition**

This subpart prescribes policies and procedures for acquiring services
using performance-based acquisition methods.

**37.601  General.**\
(a) Solicitations may use either a performance work statement or a
statement of objectives (see 37.602).\
(b) Performance-based contracts for services shall include---\
(1) A performance work statement (PWS);\
(2) Measurable performance standards (*i.e.,* in terms of quality,
timeliness, quantity, etc.) and the method of assessing contractor
performance against performance standards; and\
(3) Performance incentives where appropriate. When used, the performance
incentives shall correspond to the performance standards set forth in
the contract (see 16.402-2).\
(c) See 12.102(g) for the use of Part 12 procedures for
performance-based acquisitions.

**37.602  Performance work statement.**\
(a) A Performance work statement (PWS) may be prepared by the Government
or result from a Statement of objectives (SOO) prepared by the
Government where the offeror proposes the PWS.\
(b) Agencies shall, to the maximum extent practicable---\
(1) Describe the work in terms of the required results rather than
either "how" the work is to be accomplished or the number of hours to be
provided (see 11.002(a)(2) and 11.101);\
(2) Enable assessment of work performance against measurable performance
standards;\
(3) Rely on the use of measurable performance standards and financial
incentives in a competitive environment to encourage competitors to
develop and institute innovative and cost-effective methods of
performing the work.\
(c) Offerors use the SOO to develop the PWS; however, the SOO does not
become part of the contract. The SOO shall, at a minimum, include---\
(1) Purpose;\
(2) Scope or mission;\
(3) Period and place of performance;\
(4) Background;\
(5) Performance objectives, *i.e.,* required results; and\
(6) Any operating constraints.

**37.603  Performance standards.**\
(a) Performance standards establish the performance level required by
the Government to meet the contract requirements. The standards shall be
measurable and structured to permit an assessment of the contractor's
performance.\
(b) When offerors propose performance standards in response to a SOO,
agencies shall evaluate the proposed standards to determine if they meet
agency needs.

**37.604  Quality assurance surveillance plans.**\
Requirements for quality assurance and quality assurance surveillance
plans are in Subpart 46.4. The Government may either prepare the quality
assurance surveillance plan or require the offerors to submit a proposed
quality assurance surveillance plan for the Government's consideration
in development of the Government's plan.

# APPENDIX G -- AMS PERFORMANCE BASED PAYMENT CLAUSES

**3.3.1-32** **Performance Based Payments** (November 2000)

\(a\) Amount of payments and limitations on payments. Subject to such
other limitations and conditions as are specified in this contract and
this clause, the amount of payments and limitations on payments shall be
specified in the contract\'s description of the basis for payment.

\(b\) Contractor request for performance-based payment. The Contractor
may submit requests for payment of performance-based payments not more
frequently than monthly, in a form and manner acceptable to the
Contracting Officer. Unless otherwise authorized by the Contracting
Officer, all performance-based payments in any period for which payment
is being requested shall be included in a single request, appropriately
itemized and totaled. The Contractor\'s request shall contain the
information and certification detailed in paragraphs (l) and (m) of this
clause.

\(c\) Approval and payment of requests. (1) The Contractor shall not be
entitled to payment of a request for performance-based payment prior to
successful accomplishment of the event or performance criterion for
which payment is requested. The Contracting Officer shall determine
whether the event or performance criterion for which payment is
requested has been successfully accomplished in accordance with the
terms of the contract. The Contracting Officer may, at any time, require
the Contractor to substantiate the successful performance of any event
or performance criterion which has been or is represented as being
payable.

\(2\) A payment under this performance-based payment clause is a
contract financing payment under the Prompt Payment clause of this
contract, and approved requests shall be paid in accordance with the
prompt payment period and provisions specified for contract financing
payments by that clause. However, if the Contracting Officer requires
substantiation as provided in paragraph (c)(1) of this clause, or
inquires into the status of an event or performance criterion, or into
any of the conditions listed in paragraph (e) of this clause, or into
the Contractor certification, payment is not required, and the prompt
payment period shall not begin until the Contracting Officer approves
the request.

\(3\) The approval by the Contracting Officer of a request for
performance-based payment does not constitute an acceptance by the
Government and does not excuse the Contractor from performance of
obligations under this contract.

\(d\) Liquidation of performance-based payments. (1) Performance-based
finance amounts paid prior to payment for delivery of an item shall be
liquidated by deducting a percentage or a designated dollar amount from
the delivery payment. If the performance-based finance payments are on a
delivery item basis, the liquidation amount for each such line item
shall be the percent of that delivery item price that was previously
paid under performance-based finance payments or the designated dollar
amount. If the performance-based finance payments are on a whole
contract basis, liquidation shall be by either pre-designated
liquidation amounts or a liquidation percentage.

\(2\) If at any time the amount of payments under this contract exceeds
any limitation in this contract, the Contractor shall repay to the
Government the excess. Unless otherwise determined by the Contracting
Officer, such excess shall be credited as a reduction in the
unliquidated performance-based payment balance(s), after adjustment of
invoice payments and balances for any retroactive price adjustments.

\(e\) Reduction or suspension of performance-based payments. The
Contracting Officer may reduce or suspend performance-based payments,
liquidate performance-based payments by deduction from any payment under
the contract, or take a combination of these actions after finding upon
substantial evidence any of the following conditions:

\(1\) The Contractor failed to comply with any material requirement of
this contract (which includes paragraphs (h) and (i) of this clause).

\(2\) Performance of this contract is endangered by the Contractor\'s---

\(i\) Failure to make progress; or

\(ii\) Unsatisfactory financial condition.

\(3\) The Contractor is delinquent in payment of any subcontractor or
supplier under this contract in the ordinary course of business.

\(f\) Title. (1) Title to the property described in this paragraph (f)
shall vest in the Government. Vestiture shall be immediately upon the
date of the first performance-based payment under this contract, for
property acquired or produced before that date. Otherwise, vestiture
shall occur when the property is or should have been allocable or
properly chargeable to this contract

\(2\) \"Property,\" as used in this clause, includes all of the
following described items acquired or produced by the Contractor that
are or should be allocable or properly chargeable to this contract under
sound and generally accepted accounting principles and practices:

\(i\) Parts, materials, inventories, and work in process;

\(ii\) Special tooling and special test equipment to which the
Government is to acquire title under any other clause of this contract;

\(iii\) Nondurable (i.e., non-capital) tools, jigs, dies, fixtures,
molds, patterns, taps, gauges, test equipment and other similar
manufacturing aids, title to which would not be obtained as special
tooling under subparagraph (f)(2)(ii) of this clause; and

\(iv\) Drawings and technical data, to the extent the Contractor or
subcontractors are required to deliver them to the Government by other
clauses of this contract.

\(3\) Although title to property is in the Government under this clause,
other applicable clauses of this contract (e.g., the termination or
special tooling clauses) shall determine the handling and disposition of
the property.

\(4\) The Contractor may sell any scrap resulting from production under
this contract, without requesting the Contracting Officer\'s approval,
provided that any significant reduction in the value of the property to
which the Government has title under this clause is reported in writing
to the Contracting Officer. The contractor shall credit the proceeds
against the cost of performance.

\(5\) In order to acquire for its own use or dispose of property to
which title is vested in the Government under this clause, the
Contractor must obtain the Contracting Officer\'s advance approval of
the action and the terms. If approved, the contractor shall exclude the
allocable costs of the property from the costs of contract performance,
and repay to the Government any amount of unliquidated payments
allocable to the property.

\(6\) When the Contractor completes all of the obligations under this
contract, including liquidation of all performance-based payments, title
shall vest in the Contractor for all property (or the proceeds thereof)
not---

\(i\) Delivered to, and accepted by, the Government under this contract;
or

\(ii\) Incorporated in supplies delivered to, and accepted by, the
Government under this contract and to which title is vested in the
Government under this clause.

\(7\) The terms of this contract concerning liability for
Government-furnished property shall not apply to property to which the
Government acquired title solely under this clause.

\(g\) Risk of loss. Before delivery to and acceptance by the Government,
the Contractor shall bear the risk of loss for property, the title to
which vests in the Government under this clause, except to the extent
the Government expressly assumes the risk. If any property is damaged,
lost, stolen, or destroyed, the basis of payment (the events or
performance criteria) to which the property is related shall be deemed
to be not in compliance with the terms of the contract and not payable
(if the property is part of or needed for performance), and the
Contractor shall refund the related performance-based payments in
accordance with paragraph (d) of this clause.

\(h\) Records and controls. The Contractor shall maintain records and
controls adequate for administration of this clause. The Contractor
shall have no entitlement to performance-based payments during any time
the Contractor\'s records or controls are determined by the Contracting
Officer to be inadequate for administration of this clause.

\(i\) Reports and Government access. The Contractor shall promptly
furnish reports, certificates, financial statements, and other pertinent
information requested by the Contracting Officer for the administration
of this clause and to determine that an event or other criterion
prompting a financing payment has been successfully accomplished. The
Contractor shall give the Government reasonable opportunity to examine
and verify the Contractor\'s records and to examine and verify the
Contractor\'s performance of this contract for administration of this
clause.

\(j\) Special terms regarding default. If this contract is terminated
under the default provisions of any termination clause, (1) the
Contractor shall, on demand, repay to the Government the amount of
unliquidated performance-based payments, and (2) title shall vest in the
Contractor, on full liquidation of all performance-based payments, for
all property for which the Government elects not to require delivery
under the Default clause of this contract. The Government shall be
liable for no payment except as provided by the Default clause.

\(k\) Reservation of rights. (1) No payment or vesting of title under
this clause shall---

\(i\) Excuse the Contractor from performance of obligations under this
contract; or

\(ii\) Constitute a waiver of any of the rights or remedies of the
parties under the contract.

\(2\) The Government\'s rights and remedies under this clause---

\(i\) Shall not be exclusive, but rather shall be in addition to any
other rights and remedies provided by law or this contract; and

\(ii\) Shall not be affected by delayed, partial, or omitted exercise of
any right, remedy, power, or privilege, nor shall such exercise or any
single exercise preclude or impair any further exercise under this
clause or the exercise of any other right, power, or privilege of the
Government.\
\
(l) Content of Contractor\'s request for performance-based payment. The
Contractor\'s request for performance-based payment shall contain the
following:

\(1\) The name and address of the Contractor;

\(2\) The date of the request for performance-based payment;

\(3\) The contract number and/or other identifier of the contract or
order under which the request is made;

\(4\) Such information and documentation as is required by the
contract\'s description of the basis for payment; and

\(5\) A certification by a Contractor official authorized to bind the
Contractor, as specified in paragraph (m) of this clause.

\(m\) Content of Contractor\'s certification. As required in paragraph
(l)(5) of this clause, the Contractor shall make the following
certification in each request for performance-based payment:\
\
I certify to the best of my knowledge and belief that---

\(1\) This request for performance-based payment is true and correct;
this request (and attachments) has been prepared from the books and
records of the Contractor, in accordance with the contract and the
instructions of the Contracting Officer;

\(2\) (Except as reported in writing on \_\_\_\_\_\_\_\_\_\_), all
payments to subcontractors and suppliers under this contract have been
paid, or will be paid, currently, when due in the ordinary course of
business;

\(3\) There are no encumbrances (except as reported in writing on
\_\_\_\_\_\_\_\_\_) against the property acquired or produced for, and
allocated or properly chargeable to, the contract which would affect or
impair the Government\'s title;

\(4\) There has been no materially adverse change in the financial
condition of the Contractor since the submission by the Contractor to
the Government of the most recent written information dated
\_\_\_\_\_\_\_\_\_\_\_\_\_; and

\(5\) After the making of this requested performance-based payment, the
amount of all payments for each deliverable item for which
performance-based payments have been requested will not exceed any
limitation in the contract, and the amount of all payments under the
contract will not exceed any limitation in the contract.