Appendix I---Earned Value Management

Earned Value Management (EVM) references:

-   Departmental Regulation 3130-006 (12/21/05) Information Technology
    Earned Value Management (see
    [http://www.ocio.usda.gov/directives/files/dr/DR3130-006.pdf](http://www.ocio.usda.gov/directives/)
    )

-   Federal Acquisition Regulation (FAR) Subpart 34.2 -- Earned Value
    Management System. See <http://www.arnet.gov/far/loadmainre.html>.

-   OMB Circular No. A11 Supplement to Part 7 -- Capital Programming
    Guide, 1.5.5.4 Planning for Acquisition Management and OMB Circular
    No. A11 Part 7, Section 300, Planning, budgeting, acquisition, and
    management of capital assets reference Performance-based acquisition
    management.

-   See
    <http://www.whitehouse.gov/omb/circulars/a11/current_year/a11_toc.html>
    for links to OMB Circular No. A11.

-   [National Defense Industrial Association (NDIA) Program Management
    Systems Committee (PMSC) ANSI/EIA-748-A Standard for]{.underline}
    [Earned Value Management Systems (EVMS) Intent Guide,]{.underline}
    created by the NDIA -- PMSC to promote a clearer understanding of
    the American National Standards Institute/Electronic Industry
    Alliance (ANSI/EIA) standard 748. For each of the 32 earned value
    management guidelines this Guide provides: the value to management,
    an intent statement, typical attributes, and examples of objective
    evidence.

-   [National Defense Industrial Association (NDIA) Program Management
    Systems Committee (PMSC) Surveillance Guide]{.underline}, this guide
    was developed by the NDIA - PMSC and the Department of Defense for
    the implementation for EVMS surveillance in accordance with the
    American National Standards Institute/Electronic Industry Alliance
    (ANSI/EIA) standard 748.

-   [National Defense Industrial Association (NDIA) The PM Guide to IBR
    Process]{.underline} is the principal IBR reference and should be
    used to implement an integrated baseline discipline on an
    acquisition program.

> See <https://acc.dau.mil/simplify/ev_en.php?ID=52961_201&ID2=DO_TOPIC>
> for links to the three NDIA guides.

Definitions

> **Agency Head:** Person designated in charge of a USDA agency; i.e.
> Agency Administrator, Chief, or Office Director.
>
> **ANSI/EIA‑748‑A:** American National Standards Institute
> (ANSI)/Electronic Industries Alliance (EIA) Standard, Earned Value
> Management Systems (ANSI/EIA-748-A), Approved May 19, 1998 (Revised
> January 2002)
>
> **Certification of Earned Value Management System:** Each USDA Agency
> Head with responsibility for a major IT investment(s) will provide a
> signed guarantee to OCIO that the agency has an EVM system that
> complies with ANSI/EIA-748-A.
>
> **Corrective Action Plan --** A document in which the agency describes
> what steps will be taken to improve the cost and schedule performance
> of an investment.
>
> **Development, modernization, or enhancement (D/M/E):** Cost for new
> investments, changes or modifications to existing systems that improve
> capability or performance, changes mandated by the Congress or agency
> leadership, personnel costs for project (investment) management, and
> direct support.
>
> **Earned Value (EV):** The value of completed work expressed in terms
> of the approved budget assigned to that work for a schedule activity
> or work breakdown structure component. Also referred to as the
> budgeted cost of work performed (BCWP) ~(PMBOK\ 2003)~
>
> **Earned Value Management (EVM):** A management methodology for
> integrating scope, schedule, and resources, and for objectively
> measuring project performance and progress. Performance is measured by
> determining the budgeted cost of work performed (i.e. earned value)
> and comparing it to the actual cost of work performed (i.e. actual
> cost). Progress is measured by comparing the earned value to the
> planned value. ~(PMBOK\ 2003)~
>
> **EVM System (EVMS):** The set of policies, practices, tools, outputs,
> and people that together meet the requirements defined in
> ANSI/EIA-748-A.
>
> **Integrated Baseline Review (IBR):** A review jointly conducted by
> the customer and the supplier Program Managers and selected staffs to
> effectively assess the PMB to ensure understanding of the scope of the
> program, and to better understand inherent risks. Generally conducted
> at the control account level, the review will examine the scope
> statement for the control account, the resources assigned, and the
> schedule parameters to ensure realistic planning and to identify risk.
>
> **Major Investment:** A program or investment that requires the
> submission of an OMB Exhibit 300, or a combination of programs and/or
> investments that has been designated by OCIO to be major because of
> risk, external interest, or other factors used by OCIO for
> determination. The criteria for defining major investments are
> outlined in the USDA CPIC Guide.
>
> **Performance Measurement Baseline:** The time-phased budget plan
> against which project performance is measured. It is the schedule for
> expenditure of the resources allocated to accomplish program scope and
> schedule objectives. (ANSI/EIA-748-A)
>
> **Program:** A combination of projects with one common set of
> objectives or any major investment as designated by USDA.
>
> **Project:** An effort of finite duration and scope with cost/budget
> limitations.
>
> **Product Performance Measurement:** A pre-defined practice that
> measures the effectiveness and efficiencies gained through the
> capability/product produced by the program or investment and defined
> within the context of Appendix G, USDA CPIC Guide to Information
> Technology.
>
> **Project Performance Measurement:** A pre-defined practice that
> measures the progress and performance of an investment or program
> against a performance measurement baseline (PMB) and defined in an
> official document defined generically as a System Description.
>
> **WBS Dictionary:** A companion document to the WBS that describes the
> scope for each and every WBS element. The WBS Dictionary covers the
> entire scope of the project including management and support
> activities performed as part of the project.
>
> **Work Breakdown Structure (WBS):** A product-oriented hierarchical
> structure that defines the work to be accomplished in the project.