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<td colspan="6"><p><strong>Office of the Chief Information
Officer</strong></p>
<p><strong>Office of the Assistant Secretary for Budget, Technology and
Finance</strong></p>
<p><strong>Department of Health and Human Services</strong></p></td>
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<td colspan="6"><p>HHS OCIO IT Earned Value Management</p>
<p>Processes and Procedures</p></td>
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<td colspan="7"><strong>December 30, 2005</strong></td>
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<td colspan="2"><strong>Project:</strong></td>
<td colspan="5">HHS OCIO IT Earned Value Management Processes and
Procedures</td>
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<td colspan="2"><strong>Document Number:</strong></td>
<td colspan="5">HHS-OCIO-2005.0004P</td>
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**Table of Contents**

[1. Purpose 1](#purpose)

[2. Background 1](#background)

[3. Scope 2](#scope)

[4. HHS EVM Tier Structure 2](#hhs-evm-tier-structure)

[5. Roles 3](#roles)

[5.1 HHS CIO 3](#hhs-cio)

[5.2 HHS ITIRB and OPDIV ITIRBs 3](#hhs-itirb-and-opdiv-itirbs)

[5.3 HHS CIO Council 3](#hhs-cio-council)

[5.4 The HHS Capital Planning and Investment Control Officer
3](#the-hhs-capital-planning-and-investment-control-officer)

[5.5 OPDIV CIO 4](#opdiv-cio)

[5.6 Head of Contracting Activity 4](#head-of-contracting-activity)

[5.7 The OPDIV CPIC Manager 4](#the-opdiv-cpic-manager)

[5.8 IT Investment Contracting Officer
4](#it-investment-contracting-officer)

[5.9 Contracting Officer's Technical Representative (COTR)
4](#contracting-officers-technical-representative-cotr)

[5.10 IT Investment Manager 5](#it-investment-manager)

[5.11 Investment Team Subject Matter Experts
5](#investment-team-subject-matter-experts)

[6. Process 6](#process)

[6.1 Inputs and Entry Criteria 6](#inputs-and-entry-criteria)

[6.1.1 Inputs 6](#inputs)

[6.1.2 Entry Criteria 7](#entry-criteria)

[6.2 Context and Process Diagrams 7](#context-and-process-diagrams)

[6.3 Process Steps and Responsibilities
7](#process-steps-and-responsibilities)

[6.4 Outputs and Exit Criteria 8](#outputs-and-exit-criteria)

[6.4.1 Outputs 8](#outputs)

[6.4.2 Exit Criteria 9](#exit-criteria)

[7. Procedures 9](#procedures)

[7.1 Pre-Award Activities 10](#pre-award-activities)

[7.1.1 Negotiate EVM Requirements 11](#negotiate-evm-requirements)

[7.1.2 Negotiate Technical Requirements
11](#negotiate-technical-requirements)

[7.1.3 Prepare Statement of Work (SOW)
11](#prepare-statement-of-work-sow)

[7.1.4 Finalize Contract Work Breakdown Structure (WBS)
13](#finalize-contract-work-breakdown-structure-wbs)

[7.1.5 Prepare CDRL and DIDs 13](#prepare-cdrl-and-dids)

[7.2 Post-Award Activities 14](#post-award-activities)

[7.2.1 Conduct IBR 14](#conduct-ibr)

[7.2.2 Conduct Periodic EVM Reviews 17](#conduct-periodic-evm-reviews)

[7.2.3 Analyze EVM Reports 18](#analyze-evm-reports)

[8. Applicable Legislation, Policies, Standards, and Guidance
23](#applicable-legislation-policies-standards-and-guidance)

[8.1 Legislation 23](#legislation)

[8.2 Policies 23](#policies)

[8.3 Standards 23](#standards)

[8.4 Department Guidance 24](#department-guidance)

[8.5 Other Guidance 24](#other-guidance)

[9. Information and Assistance 24](#information-and-assistance)

[10. Effective Date/Implementation 24](#effective-dateimplementation)

[11. Approved 25](#approved)

[Attachment 1: ANSI/EIA 748-A-1998 Guidelines
26](#attachment-1-ansieia-748-a-1998-guidelines)

[Attachment 1: ANSI/EIA 748-A-1998 Guidelines
26](#__RefHeading___Toc123718875)

[Attachment 2: Tailored ANSI/EIA 748-A-1998 Guidelines
30](#attachment-2-tailored-ansieia-748-a-1998-guidelines)

[Attachment 3: Solicitation Provisions and Contract Clauses
32](#attachment-3-solicitation-provisions-and-contract-clauses)

[Attachment 4: EVM Analysis Process
36](#attachment-4-evm-analysis-process)

[Attachment 5: Sample Data Item Description (DID) Content
38](#attachment-5-sample-data-item-description-did-content)

[Attachment 6: Instructions for DHHS Monthly EV Reporting
45](#attachment-6-instructions-for-dhhs-monthly-ev-reporting)

[Attachment 7: Corrective Action Plan Template
47](#attachment-7-corrective-action-plan-template)

[Attachment 8: Glossary 49](#__RefHeading___Toc123718882)

[Attachment 9: List of Acronyms 53](#__RefHeading___Toc123718883)

[Attachment 10: Contract Performance Reports
55](#__RefHeading___Toc123718884)

**List of Tables and Figures**

[Table 1. EVM Inputs and Descriptions 6](#__RefHeading___Toc123104228)

[Table 2. EVM Process Entry Criteria 7](#__RefHeading___Toc123104229)

[Table 3. Output Products and Descriptions
8](#__RefHeading___Toc123104230)

[Table 4. EVM Process Exit Criteria 9](#__RefHeading___Toc123104231)

[Table 5: EVM Requirements Based on Tier 12](#_Ref123110207)

[Table 6. Contractor EVM Reporting Requirements
13](#__RefHeading___Toc123104233)

[Figure 6‑1. EVM Process Context Diagram
7](#__RefHeading___Toc123100415)

[Figure 6‑2. EVM Management Process 7](#__RefHeading___Toc123100416)

[Figure 7‑1 EVM Roles and Responsibilities
10](#__RefHeading___Toc123100417)

[Figure 7‑2 Pre-Award HHS EVM Activities
11](#__RefHeading___Toc123100418)

[Figure 7‑3 Post-Award HHS EVM Activities
14](#__RefHeading___Toc123100419)

[Figure 7‑4 IBR Phases 15](#__RefHeading___Toc123100420)

# Purpose

This document establishes the Process and Procedures for Earned Value
Management (EVM) within the Department of Health and Human Services
(HHS). This HHS EVM Process and Procedures (EVMPP) explains how HHS IT
Investment Managers are to receive, organize, analyze, and report cost,
schedule, and performance of their investments in accordance with the
HHS EVM Policy and HHS CPIC Policy. Additional HHS policies, procedures,
methodologies, training, and project management best practices are used
in conjunction with the EVMPP for the effective planning and management
of projects.

# Background

As required by the Office of Management and Budget (OMB) Circular A-11
Part 7, Section 300, HHS investments will use EVM to monitor their cost,
schedule, and performance. The HHS Office of the Chief Information
Officer (OCIO) is ensuring that all investments use an appropriate level
of EVM as a management tool.

EVM provides Government investment managers and contractors with
accurate data from which to make responsible management decisions. EVM
minimizes risk by effectively integrating the investment scope of work
with cost, schedule, and performance elements for optimum project
planning and control. Earned Value Management provides a quantitative
measure of project management progress as measured against a performance
baseline established from a project's work breakdown structure and
project plan. EVM methodology was originally utilized by DOD to manage
large developmental projects. Earned value (EV) data is a critical
component of the Control phase of the Capital Planning and Investment
Control (CPIC) process, because it provides investment managers with the
cost, schedule, and performance data necessary to ensure that HHS
investments are delivered on time and perform within budget and scope.

As of February 2005, the CPIC process was augmented to incorporate
monthly EVM reporting for Development, Modernization, and Enhancement
(DME) IT investments.[^1] Also, an OMB-approved three-tiered approach
for EVM was instituted by HHS to incorporate stronger EVM application in
project management processes. Also, in June 2005, guidelines were
introduced that called for an integrated project team approach in which
the Operating Division (OPDIV) Chief Information Officer (CIO) and Head
of Contracting Activity (HCA) would work in partnership with cognizant
project managers to address fully the EVM requirements in applicable
project and acquisition plans.[^2] In addition, a requirement was put in
place for HHS solicitations and resulting contracts issued on or after
October 1, 2005, in support of Tier 1, Tier 2, or Tier 3 IT investments,
to include all EVM requirements appropriate to the specific Tier.

# Scope

The EVMPP applies to the Office of the Secretary of Health and Human
Services (OS), including all Staff Divisions (STAFFDIVs), the Office of
the Inspector General, and the Operating Divisions (OPDIVs). The EVMPP
applies to all HHS IT investments, whether owned and operated by HHS, or
operated on behalf of HHS.

The EVMPP applies to all HHS IT investments with the exception of those
that are funded by direct grants to states or other external entities or
associated with the basic claims processing costs incurred by
contractors in the course of performing Medicare operations.

Within the EVMPP, the term OPDIV shall be read to include the Office of
the Secretary, including all STAFFDIVs, and the Office of the Inspector
General unless otherwise noted.

OPDIVs shall use the EVMPP or may create a more restrictive
OPDIV-specific process and procedures, but not one that is less
restrictive or less comprehensive. The EVMPP shall be applied in
accordance with the HHS EVM Policy and the HHS CPIC Policy and HHS CPIC
Procedures.

# HHS EVM Tier Structure

In order to provide HHS IT Investment Managers with accurate data to
support responsible management decisions, it is HHS policy to apply
"varying levels of EVM rigor, depending on the size and complexity of
the IT investment,"[^3] as follows:

-   **Tier 1:** IT investments that have current-year DME funding equal
    to or greater than \$10 million. Those investments must apply EVM in
    full compliance with American National Standards
    Institute-Electronic Industries Alliance (ANSI/EIA) Standard
    748-A-1998 in any investments supporting the DME effort. Attachment
    1 lists the Standard's 32 criteria.

-   **Tier 2**: IT investments that have current-year DME funding equal
    to or greater than \$1 million and less than \$10 million. Those
    investments must apply EVM principles for tracking investment cost,
    schedule, and performance, but need only comply with a subset of
    ANSI-EIA Standard 748-A-1998 criteria in any investments supporting
    the DME effort. Attachment 2 lists this subset of ANSI-EIA Standard
    748-A-1998 criteria.

-   **Tier 3**: IT investments that have current-year DME funding of
    less than \$1 million. Those investments must apply EVM principles
    for tracking investment cost, schedule, and performance, but are not
    required to meet ANSI-EIA Standard 748-A-1998 criteria. The
    appropriate EVM approach for each Tier 3 investment will be
    determined by the dollar amount and complexity of the affected
    investment.

The IT Investment Manager shall ensure that EVM is integrated into
standard investment and project management operations.

# Roles

## HHS CIO

The HHS CIO chairs the HHS ITIRB and the HHS CIO Council and is
responsible for establishing HHS EVM policies, procedures, and
processes. The HHS CIO is responsible for oversight of the development,
implementation and management of the HHS EVM policy and all EVM-related
processes and guidance. The Office of the CIO will assist in the
coordination, development, review, and approval of HHS training
materials as well as facilitation of training related to the use of EVM
by project personnel.

## HHS ITIRB and OPDIV ITIRBs

The HHS ITIRB is responsible for approving new and revised IT investment
Performance Measurement Baselines (PMBs) from a financial management
perspective and in relation to the HHS IT investment portfolio. For
investments that meet the Department threshold for review, IT Investment
Managers shall submit the EVM PMB and any changes to the PMB to the HHS
ITIRB for review and approval. For investments that do not meet the
Departmental threshold for review, IT Investment Managers shall submit
the EVM PMB and any changes to the PMB to the OPDIV ITIRB for review and
approval. Submissions shall address the rationale and driving factors
leading to the new investment EVM PMB or any changed PMB. Upon HHS ITIRB
approval, the ITIRB shall forward new or revised PMBs to OMB for
approval. Any new investment EVM PMB or PMB changes approved by the
OPDIV ITIRB will be forwarded to the Department, as part of the CPIC
process, for final approval.

## HHS CIO Council

The HHS CIO Council is responsible for approving new and revised IT
investment baselines with respect to technical and managerial soundness
and for providing technical recommendations to the ITIRB.

## The HHS Capital Planning and Investment Control Officer 

The HHS Capital Planning and Investment Control Officer ensures that the
appropriate rigor for EVM is fully integrated into the CPIC process, and
that the underlying investments accurately capture the necessary EVM
data. The HHS Capital Planning and Investment Control Officer ensures
that HHS and OPDIV EVM policies meet OMB and any other legal or
regulatory requirements on behalf of the HHS CIO. The HHS Capital
Planning and Investment Control Officer works in conjunction with the
HHS CIO, HHS Chief Enterprise Architect, OPDIV CIOs and OPDIV CPIC
Managers to ensure that required EVM processes are implemented for IT
development projects and programs, that the EVM information is used
effectively in HHS and OPDIV CPIC processes, and that EVM results and
reports are provided to OMB in an appropriate and timely manner.

## OPDIV CIO

The OPDIV CIO develops and implements OPDIV-wide policy and procedures
for EVM in accordance with the HHS EVM Policy and the HHS EVM Procedures
and Processes document. The OPDIV CIO also serves as a member of the HHS
CIO Council and is responsible for ensuring the effective implementation
of EVM policy, procedures, and processes within the OPDIV. For IT
investments supporting Tier 1 DME efforts, each OPDIV CIO and Head of
Contracting Activity (HCA) are jointly responsible for participating in
the conduct of Integrated Baseline Reviews (IBRs)[^4].

## Head of Contracting Activity

The Head of Contracting Activity, in coordination with the CIO is
responsible for defining requirements for inclusion of EVM in all IT
development contracts. For IT investments supporting Tier 1 DME efforts,
each OPDIV CIO and HCA is jointly responsible for participating in the
conduct of IBRs.[^5]

## The OPDIV CPIC Manager

The OPDIV CPIC Manager works with the OPDIV IT Investment Managers, the
OPDIV CIO and the HHS Capital Planning and Investment Control Officer to
ensure that the required EVM processes are developed, implemented and
executed for IT development investments at the OPDIV, that the EVM
information is used effectively in the OPDIV CPIC process, and that the
EVM results and reports are provided to HHS to forward to OMB in an
appropriate and timely manner.

## IT Investment Contracting Officer

The IT Investment Contracting Officer (CO) shall ensure that the
investment's contract includes all the deliverables necessary for EV
reporting.

The CO is responsible for ensuring that all FAR references that apply to
EV reporting are included in the investment's contract, as well as FAR
references that directly affect the technical content of the work
program. The CO is also responsible for ensuring that all contract
deliverables (e.g., Integrated Master Schedule, Contract Performance
Reports) have been delivered by the contractor on time and that they are
in compliance with the contract's requirements.

## Contracting Officer's Technical Representative (COTR)

The COTR is responsible for ensuring that EVM requirements are met for
the contract. The COTR and the IT investment Manager may be the same
person for some investments.

## IT Investment Manager

The IT Investment Manager is responsible for the overall success of the
project and all funding and scheduling issues, and acts as the
Government's point of contact with the contractor's project management
team. To fulfill these responsibilities, the IT Investment Manager will:
in conjunction with the cognizant Contracting Officer, work directly
with the contractor's project management team to ensure that the
contractor incorporates EVM into its management practices.

The IT Investment Manager establishes appropriate cost, schedule, and
performance baselines, collects and analyzes EV data regarding
performance against those baselines, and prepares corrective action
plans or re-baseline proposals, as necessary, when cost, schedule, or
performance exceeds acceptable tolerances. It is the IT Investment
Manager's responsibility to resolve any significant reporting and/or
system problems encountered with a contractor's EVM.

The IT Investment Manager is also responsible for conducting IBRs. In
preparation for an IBR, in accordance with the Earned Value Management
Implementation Guide (EVMIG) (see Section 8.5-2), the IT Investment
Manager will provide training for the IBR team members. The IT
Investment Manager will lead the IBR within 180 days of award or a major
re-baseline of the contract.

The IT Investment Manager also ensures investment project team members
are adequately trained in EVM concepts and implementation. When
necessary, the IT Investment Manager consults the HHS OCIO for EVM
training requirements and availability.

The IT Investment Manager ensures all monthly and quarterly EVM
submissions are accurate and timely. These submissions are also rolled
into HHS OMB Exhibit 300 submissions, therefore, it is critically
important that the IT Investment Manager provide data that is consistent
with all other Department reports.

When an EVM review or certification is required, the IT Investment
Manager is responsible for coordinating the certification of the
contractor's Earned Value Management System (EVMS). The IT Investment
Manager may be required to utilize a certifying authority.

## Investment Team Subject Matter Experts

HHS IT investment Project Team Subject Matter Experts (SMEs) provide
core project management activities throughout the life cycle of the
project. These activities facilitate the effective use of EVM as a
project management tool. Investment team SMEs ensure that technical
metrics chosen for EV recognition are applicable for the task and
applied correctly. SMEs also review the Variance Analysis Report
Narratives to determine whether the contractor's variance mitigation
strategies are viable. Investment team SMEs also analyze EV data for
financial performance, assessing efficiency and performance by
extracting the necessary data from delivered EV reports. SMEs track the
funding levels and ensure the IT Investment Manager is aware of any
shortfalls or other funding risks. SMEs work to ensure that estimated
budget dollars to remedy variance issues are sufficient and available. A
SME may serve as the Control Account Manager for the investment.

# Process

This process identifies and defines the responsibilities of the HHS IT
investment stakeholders in the EVM process. Additionally, it establishes
the EVM Process, including its inputs and outputs, and their governing
controls and methodologies.

## Inputs and Entry Criteria

###  {#section .unnumbered}

### Inputs

Five inputs that contribute to the EVM process are shown in Table 1.
These inputs serve as the basis for implementing HHS EVM. They also
cover the entire scope of EVM to include the following: Organization;
Planning, Scheduling, and Budgeting; Accounting; Analysis and Management
Reports; and Revision.

Table 1 identifies the information requirements necessary to develop the
products listed in Out­puts and Exit Criteria. These inputs may depend on
other activities associated with the life­cycle process or other
procedures or other tasks. Certain inputs apply only to specific EVM
Tiers.

[]{#__RefHeading___Toc123104228 .anchor}**Table 1. EVM Inputs and
Descriptions**

  ----------------------------------------------------------------------------
  Input            Description
  ---------------- -----------------------------------------------------------
  Schedule         The Schedule Management Plan defines scope, purpose, and
  Management Plan  policy; participant roles and responsibilities; objectives;
                   processes and procedures; organizational responsibilities
                   and relationships; tools; reporting requirements; and
                   related documents. It guides the overall implementation of
                   schedule development and management over time.

  Work Breakdown   This document discusses the construction, review, and
  Structure (WBS)  modification of the HHS Investment WBS. It identifies a
  Maintenance      mutually agreed to program scope that constitutes the
  Process          Performance Measurement Baseline (PMB) and supports EVM.
                   This document formal­izes the activities, products, and
                   staff positions required for this process. It defines the
                   related processes and procedures, roles and
                   responsibilities, entry criteria, inputs, steps, and exit
                   criteria. It also contains context and process diagrams.

  EVM Plan         This document discusses the practice of EVM as it will be
                   implemented for the HHS Investment. It comprises
                   applicability, techniques, methods, Integrated Baseline
                   Reviews (IBRs), reporting, process flow, and the specific
                   steps contributing to successful EVM.

  IBR Process      An IBR provides HHS and the contractor an opportunity to
  Guide            review the PMB and come to an agreement that the PMB
                   accurately reflects the scope of the work to be performed,
                   the appropriateness of its schedule, the appropriateness of
                   the assigned recognition methods, and the investment's key
                   milestones. This document discusses how to conduct an IBR
                   and comprises the scope, triggering actions, preparation,
                   execution, and conclusion. It also describes the output of
                   an IBR, the baselining of an investment's schedule, and the
                   IBR's basis as an EVM measure­ment input.

  WBS/\            This document explains and illustrates the HHS IT
  Organizational   investment office work elements. It associates the
  Breakdown        responsibility for each element to the appropriate
  Structure (OBS)  Government lead and contractor entity. It is not intended
  Dictionary       to bind contractors to perform the work described, but is
                   intended to show logical assignment based on the particular
                   competencies and expertise provided by each contractor.
                   Performance of the work is dependent on execution of
                   appropriate contractual vehicles.
  ----------------------------------------------------------------------------

###  {#section-1 .unnumbered}

### Entry Criteria

This table, along with the context and process diagrams, identifies
logical flow and when the process can begin. The workflow/process
diagrams are to be used to identify pre­requisite tasks. Before beginning
the process, check that each of the listed criteria has been met.

[]{#__RefHeading___Toc123104229 .anchor}**Table 2. EVM Process Entry
Criteria**

  -----------------------------------------------------------------------
  √   Entry Criteria
  --- -------------------------------------------------------------------
      Personnel involved with implementing EVM have adequate training and
      experience necessary to integrate WBS, OBS, Schedule, and Cost
      information.

      Personnel involved with implementing EVM have adequate training and
      experience necessary to conduct Integrated Baseline Reviews.

      Personnel involved with implementing EVM have adequate training and
      experience necessary to analyze and report out accurate EV
      performance.
  -----------------------------------------------------------------------

##  {#section-2 .unnumbered}

## Context and Process Diagrams

![](media/image2.wmf)

[]{#__RefHeading___Toc123100415 .anchor}Figure 6‑1. EVM Process Context
Diagram

\`

[]{#__RefHeading___Toc123100416 .anchor}Figure 6‑2. EVM Process

## Process Steps and Responsibilities

**The EVM process is comprised of five functional components that are
discussed below.\
**

  -----------------------------------------------------------------------
  Step   Functional Component               Person Responsible
  ------ ---------------------------------- -----------------------------
  1      Organization                       HHS IT Investment Manager

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

The Organization component implements the first set of five criteria
that comprise EVM implementation. Collec­tively, these promulgate the
WBS, OBS, Control/Cost Account Plans, Indirect Costs, and the associated
integration required to monitor project performance and estimate costs
at completion.

  -----------------------------------------------------------------------
  Step   Functional Component               Person Responsible
  ------ ---------------------------------- -----------------------------
  2      Planning, Scheduling, and          HCA, OPDIV CPIC Manager, and
         Budgeting                          IT Investment Manager

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

The Planning, Scheduling, and Budgeting component implements the second
set of 10 criteria that comprise EVM implementation. Collec­tively, these
promulgate the project schedule, milestones, budgets, work packages, EV
measure­ment, overhead budgets, management reserves, undistributed
budgets, and overall allocation reso­lutions necessary to account for and
budget all work and to cover all expenses in the execution of the
project.

  -----------------------------------------------------------------------
  Step   Functional Component               Person Responsible
  ------ ---------------------------------- -----------------------------
  3      Accounting                         OPDIV CPIC Manager and IT
                                            Investment Manager

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

The Accounting component implements the third set of six criteria that
comprise EVM implementation. Col­lec­tively, these promulgate the
recording of direct and indirect costs, unit or lot costs, and their
sum­marization and accumulation over time.

  -----------------------------------------------------------------------
  Step   Functional Component               Person Responsible
  ------ ---------------------------------- -----------------------------
  4      Analysis and Management Reports    IT Investment Manager

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

The Analysis and Management Reports component implements the fourth set
of six criteria that comprise EVM implementation. Col­lectively, these
promulgate actual performance against the project baseline, and the
actual cost based on the project baseline. These also promulgate
variances, their causes, corrective actions, and associated revised
estimates at completion.

  -----------------------------------------------------------------------
  Step   Functional Component               Person Responsible
  ------ ---------------------------------- -----------------------------
  5      Revision and Data Maintenance      IT Investment Manager

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

The Revision component implements the final set of five criteria that
comprise EVM implementation. Collectively, these promulgate the
incorporation of authorized changes to the baseline, reconcil­ing
budgets, controlling changes, minimizing changes, and documenting
changes.

## Outputs and Exit Criteria

### Outputs

These products are produced as outputs from the activities of this
process. These outputs may feed subsequent processes, procedures,
activities, or tasks. Certain outputs apply only to specific EVM Tiers.

[]{#__RefHeading___Toc123104230 .anchor}**Table 3**. Output Products and
Descriptions

+---------+------------------------------------------------------------+
| Product | Description                                                |
+=========+============================================================+
| Ba      | The IMS is developed for the HHS IT Investment so that     |
| selined | tasks and mile­stones are clearly defined. It is updated    |
| Int     | regularly to identify IT investment elements that are      |
| egrated | behind as well as those ahead of schedule. The IMS maps    |
| Master  | directly to the CWBS enabling the investment management    |
| S       | team a single point of reference for all activities.       |
| chedule |                                                            |
| (IMS)   |                                                            |
+---------+------------------------------------------------------------+
| IBR     | The IBR and the resulting report ensure that the baseline  |
|         | captures the entire technical scope of work, that it is    |
|         | consistent with contract schedule requirements, and that   |
|         | the appropriate mix and level of resources have been       |
|         | assigned to the program. The IBR is performed to enhance   |
|         | the HHS IT Investment Manager's and the project team's     |
|         | confidence in the contractor's cost and schedule           |
|         | management and baseline formulation.                       |
+---------+------------------------------------------------------------+
| P       | Earned Value reviews examine the Budgeted Cost of Work     |
| eriodic | Scheduled; the PMB upon which all program level analyses   |
| Earned  | are performed; Budgeted Cost of Work Performed (the        |
| Value   | numerical value of how well the contract is performing     |
| Reviews | against budgets); and Actual Cost of Work Performed (the   |
|         | actual cost from accounting for that investment by WBS     |
|         | element).                                                  |
+---------+------------------------------------------------------------+
| P       | The Contract Performance Report (CPR) presents the cost    |
| eriodic | and schedule data for the current period as well as in a   |
| Earned  | cumulative format. Formats 1 and 5 provide the HHS IT      |
| Value   | Investment Manager the insight needed to manage the        |
| Reports | investment. Format 1 is a WBS-oriented contract report.    |
|         | Costs are organized by WBS element at a level              |
| (such   | pre-determined by the HHS IT Investment team. Format 5,    |
| as      | Variance Narrative, is a problem analysis and              |
| CPRs)   | variance-oriented report. It provides explanations for     |
|         | cost and schedule variances that have exceeded thresholds. |
|         | It provides a written explanation as to why the variance   |
|         | occurred, as well as written descriptions on how the       |
|         | contractor plans to resolve the cause of the variance.     |
+---------+------------------------------------------------------------+

###  {#section-3 .unnumbered}

### Exit Criteria

Table 4, along with the context and process diagrams, identifies logical
flow and when the process can be considered complete. The
workflow/process diagram is used to identify subsequent processes,
procedures or tasks to be performed. Before this process can be declared
complete, the following exit criteria must be met.

[]{#__RefHeading___Toc123104231 .anchor}**Table 4. EVM** Process Exit
Criteria

  -----------------------------------------------------------------------
  √   Exit Criteria
  --- -------------------------------------------------------------------
      Functioning EVM using and influencing the maintenance of program
      WBS, OBS, and Schedules.

      Periodic assessments of IT investment status including publication
      to the Portfolio Management tool and presentation at appropriate
      management and IT governance reviews.

      Annual inputs to HHS OCIO's Exhibit 300 submission.
  -----------------------------------------------------------------------

# Procedures

The Department and the contractor each have critical roles to play in
EVM in support of the process described above. Figure 7-3 shows the
major activities and roles in performing EVM. These activities are
performed either before the contract is awarded (pre-award) or after the
contract is executed (post-award) and are discussed in the sections that
follow.

[]{#__RefHeading___Toc123100417 .anchor}Figure 7‑3 EVM Roles and
Responsibilities

## Pre-Award Activities

Historically, problems identified during EVM implementation are directly
related to the failure to establish an adequate EVM requirement
definition in the solicitation. In the pre-award phase, the IT
Investment Manager works to ensure that the Request for Proposal (RFP)
and the awarded contract contain the appropriate clauses, metrics, and
reporting requirements for the procurement. Pre-award activities include
preparing a SOW, preparing the Contract Data Requirements List (CDRL)
and Data Item Descriptions (DIDs), negotiating technical requirements,
negotiating EVM requirements, and finalizing the Contract WBS (CWBS).
Figure 7-4 shows HHS pre-award EVM activities.

![](media/image4.wmf){width="4.888888888888889in"
height="1.6333333333333333in"}

[]{#__RefHeading___Toc123100418 .anchor}Figure 7‑4 Pre-Award HHS EVM
Activities

### Negotiate EVM Requirements

This section outlines the EVM requirements that must be considered
during the contract pre-award phase.

#### Contract Reporting Requirements

The Contract Performance Report (CPR) is used by the contractor and
provides the IT Investment Manager with monthly cost, schedule, and
performance data. The contract DID provides contractor guidance for the
preparation and submission of the CPR, reporting frequency,
distribution, and specific investment tailoring instructions. Elements
of a contract DID for the CPR with formats 1-5 (for Tier 1 contracts) is
provided in Attachment 5. Guidelines in the tailoring of the CPR are
provided in the EVMIG (section 8.5-2).

#### Schedule Requirements 

To achieve a truly integrated management control system, the IT
Investment Manager ensures that the solicitation requirements explicitly
define logical network schedule requirements. Elements of a contract DID
for a project schedule are provided in Attachment 5.

#### EVM Links to Risk Management 

Throughout the execution of the contract, the IT Investment Manager
ensures that the results of all analysis based on EVM are linked to the
Risk Management Plan of the investment (as applicable). Any cost and/or
schedule risks being managed by the IT Investment Manger should rely on
the results of EVM analysis to track, manage, and mitigate the risks.

### Negotiate Technical Requirements 

The investment team works to ensure all technical requirements for the
investment are adequately addressed by the contractor. When technical
performance requirements are used, appropriate and relevant metrics to
be measured are defined in the solicitation. Elements of a contract DID
for Technical Performance Reports are provided in Attachment 5.

###  {#section-4 .unnumbered}

### Prepare Statement of Work (SOW)

The IT Investment Manager documents the effort's technical and
management scope in the SOW. The SOW contains requirements for the
contractor to perform the contract technical effort following
tier-appropriate ANSI/EIA 748-98 EVM guidelines correlating cost and
schedule performance with technical progress. The SOW also includes
requirements for subcontractor EVM reporting. In addition, the SOW
includes a paragraph on Integrated Investment Management reporting that
describes and calls out the data items (CPR, IMS, and Contract WBS
(CWBS) and Dictionary). The SOW calls for progress and problems to be
presented and discussed in periodic investment management reviews.
Technical issues should be covered in terms of performance goals, exit
criteria, schedule progress, risk, and cost impact. Finally, the SOW
contains and describes the requirement for the IBR process to be
initiated within 180 days of contract award and for incremental IBRs as
needed throughout the life of the contract for major contract changes or
re-planning.[^6]

To ensure that all OMB-mandated EVM requirements are integrated into the
investment's Statement of Work (SOW) and into the resulting contract for
the investment, the EVM reporting requirements listed in Attachment 3 of
this document are incorporated in all IT contracts and solicitations for
Tier 1 IT investments. These requirements were adapted from the proposed
Federal Acquisition Regulations (FAR) modifications on EVMSs[^7].

An IT investment's Tier designation dictates the level of that
investment's required EVM reporting. When EVM reporting is needed, the
requirement is integrated into the investment's SOW and the resulting
contract. lists the contract EVM requirements based on Tier.

[]{#_Ref123110207 .anchor}

**Table 5: EVM Requirements Based on Tier**

  -------------------------------------------------------------------------
  EVM Requirements                      Tier 1      Tier 2      Tier 3
  ------------------------------------- ----------- ----------- -----------
  Contract Performance Report           R           R           O

  Integrated Master Schedule            R           T           T

  Integrated Baseline Reviews           R           O           O

  EVMS Standard Compliance              R           R           O

  EVM System Certification              R           O           O
  -------------------------------------------------------------------------

> R = Required, T = Tailored (requirement may be tailored by
> investment), O = Optional

The minimum EVM reporting requirement is monthly reporting. Contracting
officers require contractors to submit the appropriate EVM monthly
reports.

lists contractor EVM reporting requirements.

Contracting Officers and Investment managers may implement more frequent
reporting requirements as appropriate to the size and complexity of the
investment.

When an EVMS is required, the Government will conduct an Integrated
Baseline Review (IBR). The purpose of the IBR is to verify the technical
content and realism of the related performance budgets, resources, and
schedules. It should provide a mutual understanding of the inherent
risks in the contractors' performance plans and the underlying
management control systems, and it should formulate a plan to handle
these risks.

[]{#__RefHeading___Toc123104233 .anchor}

**Table 6. Contractor EVM Reporting Requirements**

  -------------------------------------------------------------------------
  EVM Reporting Requirements                  Tier 1    Tier 2    Tier
                                                                  3[^8]
  ------------------------------------------- --------- --------- ---------
  CPR Format 1 -- WBS                         R         R         T

  CPR Format 2 -- Organizational Categories   R         O         O

  CPR Format 3 -- Baseline                    R         O         O

  CPR Format 4 -- Staffing                    R         O         O

  CPR Format 5 -- Explanation and Problem     R         R         T
  Analyses                                                        

  Contract Funds Status Report                R         R         O
  -------------------------------------------------------------------------

> R = Required, T = Tailored (requirement may be tailored by
> investment), O = Optional

For internal HHS projects with no contractor involvement, the IT
Investment Manager ensures all Tier-appropriate EV requirements, as
defined by the EVM Policy, are met by the performing organization. The
IT Investment manager would therefore ensure that those requirements
that would be met by the contractor are met for those internal HHS
investments with no contractor involvement.

### Finalize Contract Work Breakdown Structure (WBS) 

The IT Investment Manager ensures reporting requirements for the project
are consistent with the contract WBS. That is, the reporting of
progress, performance, and engineering evaluations as well as financial
data and variance analysis, are based on the contract WBS. Elements of a
contract DID for the WBS and WBS dictionary is provided as Attachment 5.

### Prepare CDRL and DIDs

In order to ensure that the contractor performs the necessary EVM tasks,
all EVM products are specified in the CDRL and DIDs. Elements of
contract DIDs, provided in Attachment 5 of this procedure, include
suggested wording that may be augmented or tailored to meet individual
investment needs. The IT Investment Manager and CO work together to
incorporate all necessary EVM requirements in the contract. HHS EVM
contract clauses are shown in Attachment 3.

## Post-Award Activities

Post-award EVM activities monitor the IT investment's performance to
ensure efficient use of Government resources. The post-award EVM
activities are performed in support of the CPIC Control phase.
Post-award EVM activities include conducting IBRs (including document
reviews), conducting periodic EVM reviews, evaluating technical
requirements, analyzing EVM reports, and submitting relevant CPIC data.
Figure 7-5 shows HHS post-award EVM activities.

![](media/image5.wmf){width="5.032638888888889in"
height="1.613888888888889in"}

[]{#__RefHeading___Toc123100419 .anchor}Figure 7‑5 Post-Award HHS EVM
Activities

### Conduct IBR

The Contracting Officer establishes a contract requirement for IBRs for
Tier 1 investments (and some Tier 2 investments, as determined by the
HHS or OPDIV CIO). The IT Investment Manager for Tier 1 investments
performs an IBR for each investment. An IBR provides HHS and the
contractor an opportunity to review the PMB and come to an agreement
that the PMB accurately reflects the scope of the work to be performed,
the appropriateness of its schedule, the appropriateness of the assigned
EV recognition methods, and the investment's key milestones.

The IT Investment Manager ensures that training is available to each
team member prior to the review. HHS has HHS-specific EVM training
available that consists of the basics of EVM and a workshop held just
prior to the IBR, covering the mechanics of the review and examples of
specific items to be reviewed. In addition, a system walk-through which
may be conducted jointly by the contractor and the IT Investment
Manager, is performed prior to the IBR.

To provide a timely mutual understanding of risks inherent in the
investment's performance plans and underlying management control
systems, IBRs are documented in the project plan and conducted no later
than 180 days after contract award.

An IBR allows the HHS IT Investment Manager to achieve several goals:

-   Ensure that the contractor has fully understood the scope of work
    and that this fact is documented in the contractor's Control Account
    Plans and their underlying Work Package plans

-   Ensure that the contractor has developed a logical sequence of
    planned effort

-   Ensure that the Control Accounts are budgeted adequately

-   Understand the EV methods chosen and assigned to work packages and
    that the methods are primarily objective and appropriate for the
    work planned

-   Evaluate the technical requirements with respect to the earned value
    recognition methodology tied to the requirement to ensure that the
    recognition method is best suited for the technical metric

-   Develop a sense of ownership with the contractor concerning the PMB

The IBR can be a lengthy process. The preliminary steps require numerous
document reviews and formulations of questions based on the reviews.
After the reviews are completed, the IBR is conducted at the
contractor's site and includes presentations by the contractor's Program
Managers and one-on-one interviews between Government technical
representatives and the contractor's Control Account Managers (CAMs).
Thorough guidance in the IBR process is provided in the EVMIG, section
8.5-2. Figure 7-6 shows the three major phases of the IBR.

![](media/image6.wmf){width="3.6979166666666665in"
height="0.6979166666666666in"}

[]{#__RefHeading___Toc123100420 .anchor}Figure 7‑6 IBR Phases

#### IBR Document Review Phase

The first phase of the IBR is the document review. A viable EVM
implementation requires excellent documentation that provides proof that
the contractor fully understands the technical scope of the work to be
performed. The following documents are closely reviewed prior to meeting
with the contractor's team. Also included below are issues that the IT
Investment Manager focuses on during the IBR. The document review must
be completed prior to the next phase of an IBR, the Interview Phase.

##### Contract Work Breakdown Structure

The CWBS documents the work to be performed in a logical WBS format:

-   Does the CWBS logically reflect the work to be achieved?

-   Is the CWBS product oriented?

-   Does the CWBS include all of the work that is within scope of the
    contract?

Careful comparisons between the SOW and the CWBS help to successfully
ascertain that the CWBS is a representative document.

##### CWBS Dictionary

The CWBS Dictionary is a document that maps the requirements stated in
the SOW to the CWBS.

-   Has the contractor effectively accounted for the deliverables and
    technical challenges listed in the SOW in the CWBS?

##### Responsibility Assignment Matrix

The Responsibility Assignment Matrix (RAM) documents the
responsibilities of the CAMs. It maps the WBS items that the CAM is
responsible for, the department the CAM belongs to, and the budget that
the CAM is responsible for. When evaluating the RAM, the Government IBR
team deter­mines if the functional organization is mapped correctly and
logically to the CWBS and that it accurately reflects the costs.

##### Investment Schedules

The IMS and its accompanying detailed schedules are analyzed to
determine that the work is logically and sequentially identified and
documented. The Government IBR team reviews the schedules, ascertains
their accuracy, and maps them to the CWBS and to the Control Account
Plans, defined below. The Government IBR team also ensures that the
information between the IMS and its detailed schedules can be traced
horizontally and vertically (e.g., a detail of a particular task has the
same duration on both the detailed schedule and the IMS).

##### Control Account Plans

Control Account Plans (CAPs) document the underlying work packages and
provide the CAM with a source to evaluate his or her BCWS, ACWP, and
BCWP (Earned Value) of each for the CAM's Control Accounts. The plans
are not static, are updated monthly to reflect progress, and provide the
CAM all the information needed to effectively manage the Control
Account's (CA's) budget. The Government IBR team confirms that the
correct milestones are identified and documented, that the EV method is
logical for the work to be performed, and the information included in
each CAP provides the right level of data needed for the CAM to
effectively manage the CA.

##### Work Authorization Document

The Work Authorization Document (WAD) is a document produced by the
contractor and used internally. It is not a deliverable item. Included
in the WAD are details concerning the task work to be performed, a
detailed list of task outputs, CDRL items, and other task-specific
deliverables. It also includes the associated budget for the task and
authorizing signatures that confirm that the staff member is authorized
to work on the task. It should not include the number of hours that may
be charged. The Government IBR team evaluates the WAD to ensure that the
work docu­mented is truly representative of the work to be performed,
that the proper signatures are present, and that the deliverables listed
are complete and accurate.

#### IBR Interview Phase

After the documents have been reviewed and analyzed, the Government IBR
team meets with the contractor at its facility to conduct one-on-one
interviews and to ascertain the adequacy of the contractor's planning.
This part of the IBR is not confrontational. Rather, it is designed to
be informative and a step for both the Government and the contractor to
agree on the PMB and the scope of the contract.

##### Investment Management Briefings

At the start of the contractor visit, the contractor's investment
management team presents the PMB and addresses all technical questions
posed by the Government's representatives. This is an opportunity for
the contractor to address any major findings discovered by the
Government team during the Document Review phase and provide
explanations or problem resolutions. An overall assessment of the
investment's tasks, technical challenges, risk areas, and staffing
challenges is presented. At the completion of the initial briefing, the
Government and the contractor teams break off into smaller groups for
the CAM interviews.

##### CAM Interviews

The CAM assigned to the technical CA should be experienced for the
technical requirements of the task. The Government IBR team member is
comprised of experts on the task. The two parties will meet and perform
the following actions:

-   **Review the CAP:** The Government representative and the
    contractor's CAM review the budget data, the EV methods chosen, the
    underlying work packages, and the milestones that are integrated
    into the CAP. If the Government representative has issues from
    reviewing the documents, the one-on-one interview is the forum to
    resolve any discrepancies. Risk areas are identified, and the
    mitigation strategies are discussed. The CAP's relation to the
    investment's schedule is evaluated and, if necessary, adjusted to
    better reflect the bilateral approach to the technical challenges.
    Finally, the budget is evaluated, coupled with the staffing mix, and
    agreement is made that the budget is adequate, or that there should
    be adjustments to it.

-   **Review the Detailed Schedule:** Each CAP is based on a detailed
    schedule, which rolls up to the Integrated Master Schedule (IMS).
    The Government representative and the CAM will discuss any issues
    with the schedule that the Government representative has discovered,
    and the necessary adjustments will be discussed, and then integrated
    into the schedule. Any major changes must be through a mutual
    agreement of the parties. If one does not agree, it is noted as a
    shortcoming, and discussed during the daily exit brief.

-   **Review the WAD:** The WAD was reviewed during the document review.
    Any issues concerning the WAD's contents are discussed at this time.

After completing the day's activities, a daily exit brief is conducted
with all parties.

#### IBR Conclusion Phase

After all interviews have been conducted and all issues that require
change have been identified, the IBR draws to a close. At this time, the
Government IBR team briefs the contractor's team on all findings,
recommendations, and action items, and provides an overall assessment of
the program baseline. Both teams should have reached agreement that the
PMB accurately reflects the work to be performed and that the
contractor's team truly has a firm grasp on the scope of the work. If
there are numerous issues that were not resolved, another IBR can be
scheduled as necessary at the discretion of the Government. This is
necessary if the risks discovered during the IBR warrant such a
follow-up. Normally, if an undue number of risks are identified, they
will be addressed each month during the progress meetings between the
investment project team and the contractor.

### Conduct Periodic EVM Reviews

The IT Investment Manager incorporates EVM reviews into regularly
scheduled investment team meetings. During these reviews, status is
given against the PMB and new and existing variances and corrective
action plans are discussed and incorporated into the project plan. It is
important the findings shared in EVM reviews are acted on quickly and
used to make management decisions. EVM review findings may be escalated
to the HHS CIO and may be subject to Departmental review by the HHS
ITIRB, if applicable, based on the EVM Policy and CPIC Policy
established by HHS.

For investments that have a cost or schedule variance of +/-10% or more,
Investment Managers are required to develop a Corrective Action Plan
(see Attachment 7 for a sample Corrective Action Plan template).
Corrective Action Plans are documents that allow Investment Managers to
define the strategy that will be employed to improve the performance of
their investments. The Corrective Action Plan will be attached within
the investment's portfolio management tool's supplemental data and
document repository. The Corrective Action Plan, itself, is a template
that Investment Managers can complete as necessary. The template
requires Investment Managers to provide a brief description of the
strategies they will implement in order to correct existing problems;
the specific, actionable tasks associated with each strategy, points of
contact for each task and, start and end dates for executing them.
Investment Managers may be required to provide a status on the execution
of Corrective Action Plans in future reviews. As applicable,
particularly for high priority investments, Corrective Action Plans may
be requested as part of management and IT governance reviews.

#### Evaluate Technical Requirements

Periodic EVM reviews provide insight into the progress of the investment
against its baseline. The investment team uses the review as a forum to
ensure the investment is achieving its requirements. When necessary,
technical considerations are included in action plans designed to bring
technical investment performance in line with baseline objectives.

### Analyze EVM Reports

Attachment 4 of this procedure describes the EVM analysis process. It is
intended to be used as a guide in the analysis of contractor cost
performance data. Each Investment Manager is encouraged to develop his
or her own process of performing analysis that meets the individual
needs of the project. The HHS IT investment team ensures that the
contractor reports CPR data in a manner that reflects the WBS and is
consistent with the actual contract status.

#### Assessment Period

Each IT investment provides an EVM report to the HHS OCIO, reporting
performance through the end of a given month. These reports are
submitted by the 12^th^ of the following month and are analyzed prior to
the end of the report month. The periodicity ensures that the data
analysis does not lag behind actual investment performance by more than
a month. The HHS OCIO has adopted this approach to ensure that EVM
reporting provides HHS/OPDIV management an opportunity to immediately
identify and implement corrective actions to bring an investment's
performance within variance thresholds, if it exceeds acceptable
performance thresholds.

#### OMB Scoring Criteria

The following scoring criteria are from OMB Circular A-11, Section 300.
They detail the

qualities that OMB looks for in an organization to determine its
Department-level score in the area of Performance Based Management:

Performance Based Management System (PBMS) (Part I, Section I.H.1)

**5** Agency will use, or uses an 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.

#### HHS President's Management Agenda (PMA) Scorecard

The investment data that is assessed during the quarterly EVM data
submission process will also be used to determine the Department scores
on the HHS PMA Scorecard. While the EVM Data Submission process is
focused on the performance of IT investments, the PMA Scorecard assesses
the performance of the Department's IT investment portfolios. Therefore,
the scorecard will reflect the performance of all affected IT
investments within the Major IT Investment portfolio each quarter.

#### Current EVM Data Collection Requirement

The HHS EVM Policy requires contractors to provide IT Investment
Managers with monthly EVM data documenting the cost, schedule, and
performance of their investments. It is the responsibility of the IT
Investment Managers to review the reports provided on a monthly basis
and update the investment's actual cost and schedule. The IT Investment
Manager shall also provide their management with the results of their
monthly review. If a Corrective Action Plan is required, Investment
Managers would submit the plan with the monthly EVM report.

On February 1, 2005, the Memorandum titled, "Monthly Reporting of Earned
Value Cost and Schedule Variances," was forwarded to all OPDIVs. This
memorandum outlines the monthly earned value reporting requirements for
that applies to all IT investments with FY 2006 DME funding equal to or
greater than \$500,000. These reports are required to adequately inform
OMB on HHS cost/schedule/performance adherence of IT investments, as
required by Memorandum M-04-24 "Expanded Electronic Government (E-Gov)
President's Management Agenda (PMA) Scorecard Cost, Schedule, and
Performance Standard for Success," and to demonstrate progress on the
HHS Earned Value Roadmap implementation. The memorandum originally
established the requirement for Tier 1 and Tier 2 investments. In June
2005, the Department began requiring EVM reports for those Tier 3
investments that have FY 2006 DME equal to or greater than \$500,000.

##### Monthly Data Calls

The monthly reporting of EV cost and schedule variances provides the
foundation for the submission of quarterly EVM data to OMB. As an
integral part of the investment management process, HHS and OPDIV IT
CPIC Managers provide EV metrics to the HHS OCIO for investments
according to established Tier requirements. The HHS OCIO has provided
specific guidance and requirements for data submission. The EVM Data
Submission Template and the Corrective Action Plan template (see
Attachments 6 and 7) are used by the IT Investment Managers when
submitting monthly EVM data for investments. In addition to monthly data
calls, the HHS OCIO must also produce quarterly reports to OMB to report
EVM status for major investment, specifically providing the percentage
of HHS Major IT investments that have met the established variance
thresholds for the reporting period.

##### Completing the HHS EVM Data Submission Spreadsheet

To capture performance information for all Major IT Investments, the EVM
Data Submission Template (a Microsoft Excel template) has been designed
to ensure consistency in the collection of HHS' data. This template
corresponds to Tables I.H.4.A -- I.H.4.F, Section I.H., Project
(Investment) and Funding Plan, Section 300 of OMB Circular A-11.
Additional modifications were made to allow for more accurate
calculation and analysis of the data. Future modifications to the
template may occur to further ensure the required information is
collected to support future progress in the maturity of EVM practices
applied at HHS.

The IT Investment Manager completes all sections of the template for
each of their Tier 1, 2, and 3 investments having current year DME
funding of \$500,000 or more, regardless of whether they are funded
directly or indirectly.

The contents of the EVM Data Submission Template are also subject to
change in future reviews based on changing requirements from OMB and the
HHS OCIO.

The HHS OCIO has established the following naming convention to
facilitate the identification of the investment and the applicable
reporting period. The following structure applies:

**\< OPDIV \> + \< CPIC Investment Name \> + EVM Report+ \<Month\> +
\<Year\>**

Example:

AHRQ Medical Expenditure Panel Survey (MEPS) EVM Report December 2005

Note: In the event the IT Investment Manager elects to provide data in
an alternate format, the file name is still required to conform to the
naming convention identified above.

The template contains the following individual worksheets: "EV Input"
and "EV Summary". Each of these worksheets is designed to capture the
most current performance and status information for the investment.
Procedures for entering data into the "EV INPUT"worksheet, are shown in
Attachment 6.

##### Submitting the HHS EVM Data Submission Spreadsheet

All templates must be submitted to the HHS OCIO via e-mail for review
and analysis by the 12^th^ of the month. OPDIC CPIC Managers or OPDIV
EVM Program Managers should submit all of their OPDIV EVM Data
Submission Spreadsheets to the HHS OCIO. Enterprise IT Investment
Managers may submit their reports directly to the HHS OCIO. Once the
completed EVM Data Submission Templates have been received by the HHS
OCIO, an e-mail confirmation to the OPDIV CPIC Manager or OPDIV EVM
Program managers will be sent to provide notification of the receipt of
the OPDIV or enterprise IT investment submission. Any additional
information and/or clarification required for finalization will be
addressed in follow-up communication.

Prior to the end of the month, a list of non-reporters is generated and
an e-mail is sent to the OPDIV CPIC Manager or EVM Program Manager to
inform them of those IT Investments, for which no monthly report was
received. If no report is provided, this may generate a request for a
review of the investment, specifically the issue may be escalated to the
HHS CIO and the investment may be subject to Departmental review by the
HHS ITIRB, since the lack of an EVM report means that the HHS OCIO has
not been provided appropriate EVM data to demonstrate that the
investment is performing on-time and within budget and scope, as
required by the HHS EVM Policy and HHS CPIC Policy.

##### Analyzing the EVM Data Submission Templates

After IT Investments Managers submit the EVM Data Submission Templates,
it is the responsibility of the HHS OCIO to perform an analysis on each
investment by reviewing the templates submitted by the individual IT
Investment Managers (through the OPDIV CPIC Manager or EVM Program
Manager). This analysis will identify any performance issues that may
exist as well as provide a classification with respect to variance
thresholds. Current variance thresholds are color coded with "Red"
exceeding the -10% Cost and/or Schedule variance threshold and "Yellow"
exceeding the -5% Cost and/or Schedule variance threshold.

[]{.mark}

Under the HHS EVM Data folder, a directory structure has been
established to facilitate the classification and tracking of HHS IT
investments. The naming conventions for subfolder/directories are
structured as follows:

**\< 4 digit Year \> + \< 2 digit Month \> + EVM Monthly Reporting + \<
Report Month \>**

[]{.mark}

Under each reporting folder, subordinate folders are established for the
HHS enterprise-wide investments and each of the OPDIVS.

To obtain the best analysis of the investment's use of earned value, WBS
Task Elements and each account's "Total Planned Cost (Budget At
Completion - BAC)", "Monthly Planned Cost (BCWS)", and "Actual Cost of
Work Performed (ACWP) are required for each WBS Task element. The
current version of the HHS EVM Data Submission Template uses Percent
Complete as the sole EV recognition method. The IT Investment Manager is
required to provide an estimate of the percent completion for each of
the WBS/Task elements identified. Based on the spreadsheet entries,
various calculations are performed and yield the investment's "Budgeted
Cost of Work Performed (BCWP)".

The information provided by the IT Investment Manager on the EV Input
tab and the computed BCWP provide the elements for the calculation of
the elements shown on the EV Summary tab. The EV Summary tab mirrors
input from the EV Input tab for the following EV elements:

-   WBS (Task) Element

-   BAC = total budget for all Development milestones based on the
    Performance Measurement Baseline.

-   ACWP = cumulative to date actual dollars for each month, all
    milestones

-   BCWS = cumulative to date cost of work scheduled (or work planned)

-   Percent (%) Complete = cumulative % complete for all milestones, for
    each month.

-   BCWP = cum to date earned value (% complete \* total BCWS), for all
    milestones, each month

[]{.mark}

These elements provide the foundation for the computation of the
following EV metrics:

-   Schedule Variance (SV) = (BCWP-BCWS)

-   Schedule Variance % (SV%) = (SV/BCWS) x 100%

-   Schedule Performance Index (SPI) = (BCWP/BCWS)

-   Cost Variance (CV) = (BCWP-ACWP)

-   Cost Variance % (CV%) = (CV/BCWP) x 100%

-   Cost Performance Index (CPI) = (BCWP/ACWP)

-   Estimated Cost At Completion (EAC) = (BAC/CPI)

-   ETC Estimated Cost to Complete (ETC)= BAC-BCWP

##### Updating the Portfolio Management Tool (ProSight)

The final step in updating portfolio management data is populating the
HHS Portfolio Management tool (ProSight). The data submitted on the EVM
Data Submission spreadsheets is used to calculate the summary level data
needed for the Portfolio Management tool (ProSight). Please refer to the
HHS CPIC Policy and Procedures for additional details for this step. The
IT Investment Manager ensures that the data in ProSight accurately
reflects project performance and is consistent with its EVM submissions.
Therefore, it will be necessary to update the Performance Measurement
Baseline in the Business Case, and Project Plan documents in the PMT
(such as the information provided in Section I.H., Project (Investment)
and Funding Plan, Section 300 of OMB Circular A-11) on a schedule
established and directed by the HHS OCIO. Until automated methods for
updating the EVM data in the Portfolio Management Tool, based on the EVM
data provided to meet EVM Policy, Procedure, and Process requirements,
these updates would need to be manually entered into both tools.

# Applicable Legislation, Policies, Standards, and Guidance

## Legislation

1)  Government Performance and Results Act of 1993.

2)  Federal Acquisition Streamlining Act of 1994.

3)  FAR 7.105.

4)  FAR Case 2004-019, *Federal Acquisition Regulation Earned Value
    Management System (EVMS)*, Federal Register, Volume 70, Number 67,
    April 8, 2005.

5)  Clinger Cohen Act of 1996.

## Policies

1.  OMB Circular A-11 *(Part 7, Planning Budgeting, Acquisition &
    Management of Capital Assets)*.

2.  OMB Memorandum M-04-24 *Expanded Electronic Government (E-Gov)
    Presidents Management Agenda (PMA) Scorecard Cost, Schedule and
    Performance Standard for Success*, August 2004.

3.  OMB Memorandum M-05-23 *Improving Information Technology (IT)
    Project Planning and Execution*, August 2005.

## Standards

1)  American National Standards Institute/Electronic Industries Alliance
    (ANSI/EIA) Standard 748-A, *Earned Value Management Standards*, May
    1998.

2)  Defense Contract Audit Agency, *Earned Value Implementation Guide*
    (DCAA Pamphlet 7641.47), Ft. Belvoir, VA, 1996.

3)  Department of Defense *Earned Value Management Implementation
    Guide*: <http://www.acq.osd.mil/pm>.

4)  National Defense Industrial Association (NDIA) Program Management
    Systems Committee Intent Guide for Earned Value Management Systems:
    [http://www.ndia.org](http://www.ndia.org/) or
    [http://www.acc.dau.mil](http://www.acc.dau.mil/).

## Department Guidance

1)  HHS Deputy Assistant Secretary for Grants and Acquisition Management
    Memorandum, *OMB's New Capital Asset Requirements*, May 30, 2002.

2)  HHS Chief Information Officer and Director, Office of Acquisition
    Management & Policy Memorandum, *Team Based Earned Value Approach*,
    January 24, 2005.

3)  HHS Memorandum *Monthly Reporting of Earned Value Cost and Schedule
    Variances*, January 31, 2005.

4)  HHS Memorandum *Team-Based Earned Value Management Guidelines*, June
    16, 2005.

5)  HHS Acquisition Regulation (HHSAR)

## Other Guidance

1)  Defense Contract Audit Agency, *Earned Value Implementation Guide*
    (DCAA Pamphlet 7641.47), Ft. Belvoir, VA, 1996.

2)  Department of Defense *Earned Value Management Implementation
    Guide*: <http://www.acq.osd.mil/pm>.

3)  National Defense Industrial Association (NDIA) Program Management
    Systems Committee Intent Guide for Earned Value Management Systems:
    [http://www.ndia.org](http://www.ndia.org/) or
    [http://www.acc.dau.mil](http://www.acc.dau.mil/).

# Information and Assistance

Direct questions, comments, suggestions, or requests for further
information to the Office of the Chief Information Officer, (202)
690-6162.

# Effective Date/Implementation

The effective date of the EVMPP is the date the EVMPP is approved.

This EVMPP will not be implemented in any recognized bargaining unit
until the union has been provided notice of the proposed changes and
given an opportunity to fully exercise its representational rights.

The HHS process and procedures contained in this issuance shall be
exercised in accordance with Public Law 93-638, the Indian
Self-Determination and Education Assistance Act, as amended, and the
Secretary\'s policy statement dated August 7, 1997, as amended, titled
*"*Department Policy on Consultation with American Indian/Alaska Native
Tribes and Indian Organizations." It is HHS policy to consult with
Indian people to the greatest practicable extent and to the extent
permitted by law before taking actions that affect these Governments and
people; to assess the impact of the Department\'s plans, projects,
programs, and activities on tribal and other available resources; and to
remove any procedural impediments to working directly with tribal
Governments or Indian people.

# Approved

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Charles Havekost

HHS Chief Information Officer DATE

#   {#section-5 .Style-Heading-1-+-Left:--0\"-First-line:--0\"}

# Attachment 1: ANSI/EIA 748-A-1998 Guidelines {#attachment-1-ansieia-748-a-1998-guidelines .Style-Heading-1-+-Left:--0\"-First-line:--0\"}

The following data is extracted directly from the *American National
Standards Institute/Electronic Industries Alliance Standard 748-98,
Earned Value Management Standards,* May 1998.

**[Organization\
]{.underline}**

1\. Define the authorized work elements for the program. A work
breakdown structure (WBS), tailored for effective internal management
control, is commonly used in this process.

2\. Identify the program organizational structure including the major
subcontractors responsible for accomplishing the authorized work, and
define the organizational elements in which work will be planned and
controlled.

3\. Provide for the integration of the company\'s planning, scheduling,
budgeting, work authorization and cost accumulation processes with each
other, and as appropriate, the program work breakdown structure and the
program organizational structure.

4\. Identify the company organization or function responsible for
controlling overhead (indirect costs).

5\. Provide for integration of the program work breakdown structure and
the program organizational structure in a manner that permits cost and
schedule performance measurement by elements of either or both
structures as needed.

**[Planning, Scheduling and Budgeting\
]{.underline}**

6\. Schedule the authorized work in a manner which describes the
sequence of work and identifies significant task interdependencies
required to meet the requirements of the program.

7\. Identify physical products, milestones, technical performance goals,
or other indicators that will be used to measure progress.

8\. Establish and maintain a time-phased budget baseline, at the control
account level, against which program performance can be measured.
Initial budgets established for performance measurement will be based on
either internal management goals or the external customer negotiated
target cost including estimates for authorized but undefinitized work.
Budget for far-term efforts may be held in higher level accounts until
an appropriate time for allocation at the control account level. On
government contracts, if an over target baseline is used for performance
measurement reporting purposes; prior notification must be provided to
the customer.

9\. Establish budgets for authorized work with identification of
significant cost elements (labor, material, etc.) as needed for internal
management and for control of subcontractors.

10\. To the extent it is practicable to identify the authorized work in
discrete work packages, establish budgets for this work in terms of
dollars, hours, or other measurable units. Where the entire control
account is not subdivided into work packages, identify the far term
effort in larger planning packages for budget and scheduling purposes.

11\. Provide that the sum of all work package budgets plus planning
package budgets within a control account equals the control account
budget.

12\. Identify and control level of effort activity by time-phased
budgets established for this purpose. Only that effort which is
unmeasurable or for which measurement is impractical may be classified
as level of effort.

13\. Establish overhead budgets for each significant organizational
component of the company for expenses which will become indirect costs.
Reflect in the program budgets, at the appropriate level, the amounts in
overhead pools that are planned to be allocated to the program as
indirect costs.

14\. Identify management reserves and undistributed budget.

15\. Provide that the program target cost goal is reconciled with the
sum of all internal program budgets and management reserves.

**[Accounting Considerations\
]{.underline}**

16\. Record direct costs in a manner consistent with the budgets in a
formal system controlled by the general books of account.

17\. When a work breakdown structure is used, summarize direct costs
from control accounts into the work breakdown structure without
allocation of a single control account to two or more work breakdown
structure elements.

18\. Summarize direct costs from the control accounts into the
contractor\'s organizational elements without allocation of a single
control account to two or more organizational elements.

19\. Record all indirect costs which will be allocated to the contract.

20\. Identify unit costs, equivalent units costs, or lot costs when
needed.

21\. For EVMS, the material accounting system will provide for:

-   Accurate cost accumulation and assignment of costs to control
    accounts in a manner consistent with the budgets using recognized,
    acceptable, costing techniques.

-   Cost performance measurement at the point in time most suitable for
    the category of material involved, but no earlier than the time of
    progress payments or actual receipt of material.

-   Full accountability of all material purchased for the program
    including the residual inventory.

**[Analysis and Management Reports\
]{.underline}**

22\. At least on a monthly basis, generate the following information at
the control account and other levels as necessary for management control
using actual cost data from, or reconcilable with, the accounting
system:

-   Comparison of the amount of planned budget and the amount of budget
    earned for work accomplished. This comparison provides the schedule
    variance.

-   Comparison of the amount of the budget earned the actual (applied
    where appropriate) direct costs for the same work. This comparison
    provides the cost variance.

23\. Identify, at least monthly, the significant differences between
both planned and actual schedule performance and planned and actual cost
performance, and provide the reasons for the variances in the detail
needed by program management.

24\. Identify budgeted and applied (or actual) indirect costs at the
level and frequency needed by management for effective control, along
with the reasons for any significant variances.

25\. Summarize the data elements and associated variances through the
program organization and/or work breakdown structure to support
management needs and any customer reporting specified in the contract.

26\. Implement managerial actions taken as the result of earned value
information.

27\. Develop revised estimates of cost at completion based on
performance to date, commitment values for material, and estimates of
future conditions. Compare this information with the performance
measurement baseline to identify variances at completion important to
company management and any applicable customer reporting requirements
including statements of funding requirements.

**[Revisions and Data Maintenance\
]{.underline}**

28\. Incorporate authorized changes in a timely manner, recording the
effects of such changes in budgets and schedules. In the directed effort
prior to negotiation of a change, base such revisions on the amount
estimated and budgeted to the program organizations.

29\. Reconcile current budgets to prior budgets in terms of changes to
the authorized work and internal replanning in the detail needed by
management for effective control.

30\. Control retroactive changes to records pertaining to work performed
that would change previously reported amounts for actual costs, earned
value, or budgets. Adjustments should be made only for correction of
errors, routine accounting adjustments, effects of customer or
management directed changes, or to improve the baseline integrity and
accuracy of performance measurement data.

31\. Prevent revisions to the program budget except for authorized
changes.

32\. Document changes to the performance measurement baseline.

# Attachment 2: Tailored ANSI/EIA 748-A-1998 Guidelines {#attachment-2-tailored-ansieia-748-a-1998-guidelines .Style-Heading-1-+-Left:--0\"-First-line:--0\"}

An abridged EV system for Tier 2 investments essentially employs 10 of
the ANSI/EIA Standard's 32 criteria to the program's management.

10 Criteria for Tier 2:

[EVM Criterion 1:]{.underline}

***Define authorized work elements for the program. A work breakdown
structure (WBS), tailored for effective internal management control, is
commonly used in this process.***

[EVM Criterion 2:]{.underline}

***Identify the program organizational structure, including the major
subcontractors responsible for accomplishing the authorized work, and
define the organizational elements in which work will be planned and
controlled.***

[EVM Criterion 3:]{.underline}

***Provide for integration of the company's planning, scheduling,
budgeting, work authorization and cost accumulation processes and, as
appropriate, the program WBS and organizational structure.***

[EVM Criterion 6:]{.underline}

***Schedule the authorized work in a manner that describes the sequence
of work and identifies the significant task interdependencies required
to meet the requirements of the program.***

[EVM Criterion 7]{.underline}:

***Identify physical products, milestones, technical performance goals
or other indicators used to measure progress.***

[EVM Criterion 8:]{.underline}

***Establish and maintain a time-phased budget baseline at the control
account level against which program performance can be measured. Initial
budgets established for performance measurement will be based on either
internal management goals or the external customer-negotiated target
cost, including estimates for authorized (but incomplete) work. Budget
for long-term efforts may be held in higher level accounts until it is
appropriate for allocation at the control account level. On government
contracts, if an over-target baseline is used for performance
measurement reporting purposes; prior notification must be provided to
the customer.***

[EVM Criterion 16:]{.underline}

***Record direct costs consistently with the budgets in a formal system
controlled by the general books of account.***

[EVM Criterion 22:]{.underline}

***At least monthly, generate the following information at the control
account and other levels as necessary for management control using
actual cost data from, or reconcilable with, the accounting system: The
amount of planned budget versus the budget earned for work accomplished.
This comparison provides the schedule variance. The amount of the budget
earned versus the actual (applied where appropriate) direct costs for
the same work. This comparison provides the cost variance.***

[EVM Criterion 27:]{.underline}

***Develop revised cost estimates at completion based on performance to
date, commitment values for material and estimates of future conditions.
Compare this information with the performance measurement baseline to
identify variances at completion important to company management and any
applicable customer reporting requirements, including statements of
funding requirements.***

[EVM Criterion 28:]{.underline}

***Incorporate authorized changes in a timely manner, recording the
effects in budgets and schedules. Base changes on the amount estimated
and budgeted to the program organizations.***

# Attachment 3: Solicitation Provisions and Contract Clauses {#attachment-3-solicitation-provisions-and-contract-clauses .Style-Heading-1-+-Left:--0\"-First-line:--0\"}

This attachment includes contract language relevant for EVM reporting.

**34.X03 Solicitation provisions and contract clause.**

\(a\) The contracting officer shall insert a provision that is
substantially the same as the provision at 52.234-X1, Notice of Earned
Value Management System, in solicitations for contracts that require the
contractor to use an earned value management system (EVMS) and for which
the Government may require an Integrated Baseline Review (IBR) after
contract award. When an offeror is required to provide an EVMS plan as
part of its proposal, the contracting officer shall forward a copy of
the plan to the cognizant Administrative Contracting Officer (ACO) or
responsible Federal department or agency and obtain their assistance in
determining the adequacy of the proposed EVMS plan.

\(b\) The contracting officer shall insert a provision that is
substantially the same as the provision at 52.234-X2, Notice of Earned
Value Management System-Pre-Award IBR, in solicitations for contracts
that require the contractor to use an EVMS and for which the Government
will require an IBR prior to contract award. When an offeror is required
to provide an EVMS plan as part of its proposal, the contracting officer
shall forward a copy of the plan to the cognizant ACO or responsible
Federal department or agency and obtain their assistance in determining
the adequacy of the proposed EVMS plan.

\(c\) The contracting officer shall insert a clause that is
substantially the same as the clause at 52.234-X3, Earned Value
Management System, in solicitations and contracts that require a
contractor to use an earned value management system (EVMS).

**52.234-X1 Notice of Earned Value Management System.**

As prescribed in 34.X03(a) use the following provision:

Notice of Earned Value Management System (Date)

\(a\) The offeror shall provide documentation that the cognizant
Administrative Contracting Officer (ACO) or a Federal department or
agency has recognized that the proposed earned value management system
(EVMS) complies with the EVMS guidelines in ANSI/EIA Standard-748-98
(current version at time of solicitation).

\(b\) If the offeror proposes to use a system that does not meet the
requirements of paragraph (a) of this provision, the offeror shall
submit a comprehensive plan for compliance with the EVMS guidelines.

\(1\) The plan shall---

(i) Describe the EVMS the offeror intends to use in performance of the
    contracts;

(ii) Distinguish between the offeror\'s existing management system and
     modifications proposed to meet the guidelines;

(iii) Describe the management system and its application in terms of the
      EVMS guidelines;

(iv) Describe the proposed procedure for administration of the
     guidelines, as applied to subcontractors; and

(v) Provide documentation describing the process and results of any
    third-party or self-evaluation of the system\'s compliance with the
    EVMS guidelines.

\(2\) The offeror shall provide information and assistance as required
by the Contracting Officer to support review of the plan.

\(3\) The Government will review the offeror\'s plan for EVMS before
contract award.

\(c\) Offerors shall identify the major subcontractors, or major
subcontracted effort if major subcontractors have not been selected,
planned for application of the guidelines. The prime Contractor and the
Government shall agree to subcontractors selected for application of the
EVMS guidelines.

(End of provision)

**52.234-X2 Notice of Earned Value Management System\--Pre-Award IBR.**

As prescribed in 34.X03(b), use the following provision:

Notice of Earned Value Management System, Pre-Award IBR (Date) (a) The
offeror shall provide documentation that the cognizant Administrative
Contracting Officer (ACO) or a Federal department or agency has
recognized that the proposed earned value management system (EVMS)
complies with the EVMS guidelines in ANSI/EIA Standard-748-98 (current
version at time of solicitation).

\(b\) If the offeror proposes to use a system that does not meet the
requirements of paragraph (a) of this provision, the offeror shall
submit a comprehensive plan for compliance with the EVMS guidelines.

(1) The plan shall---

```{=html}
<!-- -->
```
(i) Describe the EVMS the offeror intends to use in performance of the
    contracts;

(ii) Distinguish between the offeror\'s existing management system and
     modifications proposed to meet the guidelines;

(iii) Describe the management system and its application in terms of the
      EVMS guidelines;

(iv) Describe the proposed procedure for administration of the
     guidelines, as applied to subcontractors; and

(v) Provide documentation describing the process and results of any
    third-party or self-evaluation of the system\'s compliance with the
    EVMS guidelines.

\(2\) The offeror shall provide information and assistance as required
by the Contracting Officer to support review of the plan.

\(3\) The Government will review and approve the offeror\'s plan for
EVMS before contract award.

\(c\) Offerors shall identify the major subcontractors or major
subcontracted effort if major subcontractors have not been selected
subject to the guidelines. The prime Contractor and the Government shall
agree to subcontractors selected for application of the EVMS guidelines.

\(d\) The Government will conduct an Integrated Baseline Review (IBR),
as designated by the agency, prior to contract award. The objective of
the IBR is for the Government and the Contractor to jointly assess
technical areas, such as the Contractor\'s planning, to ensure complete
coverage of the contract requirements, logical scheduling of the work
activities, adequate resources, methodologies for earned value (budgeted
cost for work performed (BCWP)), and identification of inherent risks.

(End of provision)

**52.234-X3 Earned Value Management System.**

As prescribed in 34.X03(c), insert the following clause:

Earned Value Management System (Date)

\(a\) In the performance of this contract the Contractor shall use an
earned value management system (EVMS) to manage the contract that at the
time of contract award has been recognized by the cognizant
Administrative Contracting Officer (ACO) or a Federal department or
agency as compliant with the guidelines in ANSI/EIA Standard-748-98
(current version at time of award) and the Contractor will submit
reports in accordance with the requirements of this contract.

\(b\) If, at the time of award, the Contractor\'s EVMS has not been
recognized by the cognizant ACO or a Federal department or agency as
complying with EVMS guidelines (or the Contractor does not have an
existing cost/schedule control system that is compliant with the
guidelines in ANSI/EIA Standard-748-98 (current version at time of
award)), the Contractor shall apply the system to the contract and shall
be prepared to demonstrate to the ACO that the EVMS complies with the
EVMS guidelines referenced in paragraph (a) of this clause.

\(c\) Agencies may conduct Integrated Baseline Reviews (IBR). If a
pre-award IBR has not been conducted, such a review shall be scheduled
as early as practicable after contract award, but not later than 180
days after award. The Contracting Officer may also require an IBR at (1)
exercise of significant options or (2) incorporation of major
modifications. Such reviews will normally be scheduled before award of
the contract action.

\(d\) Unless a waiver is granted by the ACO or Federal department or
agency, Contractor proposed EVMS changes require approval of the ACO or
Federal department or agency, prior to implementation. The ACO or
Federal department or agency, shall advise the Contractor of the
acceptability of such changes within 30 calendar days after receipt of
the notice of proposed changes from the Contractor. If the advance
approval requirements are waived by the ACO or Federal department or
agency, the Contractor shall disclose EVMS changes to the ACO or Federal
department or agency at least 14 calendar days prior to the effective
date of implementation.

\(e\) The Contractor agrees to provide access to all pertinent records
and data requested by the Contracting Officer or a duly authorized
representative. Access is to permit Government surveillance to ensure
that the EVMS conforms, and continues to conform, with the performance
criteria referenced in paragraph (a) of this clause.

\(f\) The Contractor shall require the subcontractors specified below to
comply with the requirements of this clause: \[Insert list of applicable
subcontractors.\]

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\-\--

(End of clause)

# Attachment 4: EVM Analysis Process {#attachment-4-evm-analysis-process .Style-Heading-1-+-Left:--0\"-First-line:--0\"}

The steps described in this attachment utilize examples to assist
investment personnel in understanding some of the monthly activities
surrounding the EVM analysis process. The level of the analysis activity
is dependent upon many situations. The stage of the project, the size of
the WBS, the condition of the contractor\'s performance, the type of
contract, or the number of CPR\'s an analyst has to review monthly, all
affect the analyst\'s capability to perform any detailed analysis.

Step 1. Update the computer database or, if applicable EVM spreadsheet.
Analyze and evaluate the updated data. Include in the analytical process
evaluation of graphs that show current status or forecast future
expectations; any trends identified; workforce usage; contract changes;
and Management Reserve (MR) and Undistributed Budget (UB) usage. Areas
that may trigger a more detailed investigation include the following:

a\. Dramatic decreases in MR,

b\. Excessive internal replanning,

c\. Increases to WBS elements which are not related to contract change
activity,

d\. Dramatic changes to the latest revised estimate,

e\. Depletion of MR into WBS or functional elements having problems, and

f\. Lingering UB.

Step 2. Discuss the evaluations with the project functional experts. As
an example a discussion may occur with a Software Engineer, or System
Testers on the evaluation of the contractor\'s performance observed
during any in-plant visits or discussions with the contractor. Such
items as requirements development status, design documentation and
review will yield a great deal of information which can be related to
the cost/schedule performance. The relationship will not be dollar for
dollar, or day for day, but it will be sufficient to provide an
indication of trend direction and highlight areas of concern. When
obtaining information from the functional experts, always bear in mind
the cost/schedule/workforce trends, Estimates At Completions (EAC),
schedule status, and an understanding of the risk remaining.

Step 3. Continuing with the example provided above, the next step would
be to form a list of questions to ask the contractor at the next
in-plant management review. When the management review is to be held at
the contractor\'s facility, coordinate with the contractor and the EVMS
certifying entity for discussions with any Cost Account Manager to
further investigate areas of concern/interest, as necessary. Questions
may also be directed to the contractor representative.

Step 4. Finalize nalysis and generate the project\'s EAC.

Step 5. Integrate analysis work within the overall project management
process. The EAC has to relate to funding requirements. This is achieved
by adding to the project EAC any authorized/potential contract changes
not currently in the CPR baseline data. Time phase the EAC for fiscal
year requirements identification. Changes not yet negotiated should be
factored down to reflect anticipated negotiations. Contract Change
Proposals and Task Change Proposals are used to propose changes to
contractual requirements other than those contained in specifications
and engineering drawings, e.g., SOW task, test plans, or other
contractual documents such as a configuration management plan. Change
Proposals are used to propose changes to specifications.

Step 6. Frequent contacts with the EVMS certifying entity will assist
the analyst in his/her own analysis of the data. An EVMS analyst does
surveillance of the contractor\'s earned value management system, as
applied to all government contracts within the facility. The
program/project analyst should be aware of any contractor system
deficiencies that could have potential impact to the project.

# Attachment 5: Sample Data Item Description (DID) Content {#attachment-5-sample-data-item-description-did-content .Style-Heading-1-+-Left:--0\"-First-line:--0\"}

This attachment contains samples of some of the information contained in
several common EVM DIDs. Each DID will need to be tailored to the
appropriate project needs.

+---------+------------------------------------------------------------+
| Title   | **EVM System Description (Criteria)**                      |
+---------+------------------------------------------------------------+
| Descr   | To provide a description of the contractor\'s methods,     |
| iption/ | policies, and procedures utilized in meeting HHS EVM       |
|         | requirements.                                              |
| Purpose |                                                            |
+---------+------------------------------------------------------------+
| Sub     | Per the direction of the cognizant Government Contracting  |
| mission | Officer; update as required.                               |
| Fr      |                                                            |
| equency |                                                            |
+---------+------------------------------------------------------------+
| Scope   | The EVM System Description shall provide a description of  |
|         | the system and the contractor\'s comprehensive plan for    |
|         | complying with HHS EVM requirements.                       |
+---------+------------------------------------------------------------+
| C       | The EVM System Description shall provide an understanding  |
| ontents | of each activity required to meet the HHS EVM              |
|         | requirements. The document shall briefly, but              |
|         | comprehensively, present the contractor\'s approach and    |
|         | schedule of internal activities to comply with HHS EVM     |
|         | requirements and to demonstrate this compliance. The       |
|         | document shall include the contractor\'s plan for          |
|         | implementation of and activities leading up to the         |
|         | demonstration review with the HHS Review Team. The         |
|         | contractor shall provide a monthly status of progress      |
|         | toward meeting this plan until the contractor\'s           |
|         | management system is accepted by the HHS Review Team.      |
+---------+------------------------------------------------------------+
| Format  | Contractor format is acceptable.                           |
+---------+------------------------------------------------------------+
| Main    | Changes shall be incorporated by change page or complete   |
| tenance | reissue.                                                   |
+---------+------------------------------------------------------------+

+---------+------------------------------------------------------------+
| Title   | **EVM System Description (Modified Criteria)**             |
+---------+------------------------------------------------------------+
| Descr   | To provide a description of the contractor\'s methods,     |
| iption/ | policies, and procedures utilized in meeting HHS EVM       |
|         | requirements.                                              |
| Purpose |                                                            |
+---------+------------------------------------------------------------+
| Sub     | Per the direction of the cognizant Government Contracting  |
| mission | Officer; update as required.                               |
| Fr      |                                                            |
| equency |                                                            |
+---------+------------------------------------------------------------+
| Scope   | The Earned Value Management System Description shall       |
|         | provide a description of the system and the contractor\'s  |
|         | comprehensive plan for complying with HHS EVM              |
|         | requirements.                                              |
+---------+------------------------------------------------------------+
| C       | The EVM System Description shall provide an understanding  |
| ontents | of each activity required to meet HHS EVM requirements.    |
|         | The document shall briefly present the contractor\'s       |
|         | approach and schedule of internal activities to meet HHS   |
|         | EVM requirements. The document shall include the           |
|         | contractor\'s plan for implementation of and activities    |
|         | leading up to the demonstration review with the HHS Review |
|         | Team. The contractor shall provide a monthly status of     |
|         | progress until the contractor\'s management system is      |
|         | accepted by the HHS Review Team.                           |
+---------+------------------------------------------------------------+
| Format  | Contractor format is acceptable.                           |
+---------+------------------------------------------------------------+
| Main    | Changes shall be incorporated by change page or complete   |
| tenance | reissue.                                                   |
+---------+------------------------------------------------------------+

+---------+------------------------------------------------------------+
| Title   | **Contract Performance Report**                            |
+---------+------------------------------------------------------------+
| Descr   | To provide information for (1) integrating cost and        |
| iption/ | schedule performance data with technical performance       |
|         | measures, (2) assessing the magnitude and impact of actual |
| Purpose | and potential problem areas causing significant cost and   |
|         | schedule variances, and (3) providing valid, timely        |
|         | project status information to higher management.           |
+---------+------------------------------------------------------------+
| Sub     | Monthly; by the 10th working day following the close of    |
| mission | the prior month accounting period. Format 5: Updated list  |
| Fr      | of the rankings every 6 months, based on performance to    |
| equency | date.                                                      |
+---------+------------------------------------------------------------+
| Scope   | The Contract Performance Report (CPR) includes data to     |
|         | measure cost and schedule performance.                     |
+---------+------------------------------------------------------------+
| C       | The CPR shall include data pertaining to all authorized    |
| ontents | contract work, including both priced and unpriced          |
|         | effort,that has been authorized at a not-to-exceed amount  |
|         | in accordance with the Contracting Officer\'s direction.   |
|         | The CPR shall separate direct and indirect costs and       |
|         | identify elements of cost for all direct reporting         |
|         | elements. The CPR shall consist of the following:          |
|         |                                                            |
|         | Format 1, Work Breakdown Structure (WBS): Format 1 shall   |
|         | provide data to measure cost and schedule performance by   |
|         | summary level WBS elements, and the hardware, software,    |
|         | and services HHS is buying. Critical/major subcontractor   |
|         | summary-level performance measurement data shall be        |
|         | included as an attachment to Format 1. Subcontractor CPR   |
|         | or Cost/Schedule Status Report (C/SSR) are acceptable.     |
|         |                                                            |
|         | Format 2, Organizational Categories: Format 2 provides the |
|         | same data as Format 1, sorted by the contractor            |
|         | organization. If the contractor is organized by product,   |
|         | Format 2 is optional. Organizational category reporting    |
|         | shall be to the first level of the program\'s              |
|         | organizational structure.                                  |
|         |                                                            |
|         | Format 3, Baseline: Format 3 provides the budget baseline  |
|         | plan against which performance is measured. It is the      |
|         | baseline report used to track all changes to the           |
|         | Performance Measurement Baseline (PMB). Format 3 shall     |
|         | contain workforce forecasts for two 3-month periods        |
|         | (columns 10 and 11), two subsequent 12-month periods       |
|         | (columns 12 and 13), and the remainder of the contract for |
|         | the last period (column 14).                               |
|         |                                                            |
|         | Format 4, Staffing: Format 4 shall provide workforce       |
|         | staffing forecasts for correlation with the budget plan    |
|         | and cost estimates and contain the workforce baseline      |
|         | which will be updated and submitted whenever the           |
|         | Performance Measurement Baseline changes. Organizational   |
|         | category reporting shall be to the first level of the      |
|         | program\'s organizational structure. Format 4 shall        |
|         | contain baseline and workforce forecasts for two 3-month   |
|         | periods (columns 10 and 11), two subsequent 12-month       |
|         | periods (columns 12 and 13), and the remainder of the      |
|         | contract for the last period (column 14).                  |
|         |                                                            |
|         | Format 5, Explanations and Problem Analyses: Format 5      |
|         | shall be a narrative report used to explain significant    |
|         | cost and schedule variances and other identified contract  |
|         | problems. Subcontractor variance analyses (determined by   |
|         | the prime contractor) and a discussion of the prime        |
|         | contractor\'s analysis of the subcontractor\'s performance |
|         | shall be provided in Format 5. In the initial submission   |
|         | of the CPR (Format 5), the contractor shall rank, in       |
|         | descending order of criticality (i.e., the most critical   |
|         | elements will be at the top of the list and the least      |
|         | critical will be at the bottom), all reporting-level WBS   |
|         | elements anticipated (as determined by the contractor      |
|         | Project Manager) to be schedule drivers, and all WBS       |
|         | elements (in a similar ranking) anticipated to be the cost |
|         | drivers on the project. The contractor shall submit an     |
|         | updated list of the rankings every 6 months, based on      |
|         | performance to date. The Government reserves the right to  |
|         | modify this ranking based on Government perception of      |
|         | criticality. If the contractor uses \"critical path\"      |
|         | scheduling techniques, identification of the critical path |
|         | by WBS element will meet the schedule drivers\'            |
|         | requirement. Ranking of the critical path cost drivers     |
|         | shall also be provided. These critical elements shall      |
|         | reconcile to the Master Schedule submitted to the          |
|         | Government.                                                |
|         |                                                            |
|         | Variance Analysis: The Variance Analysis shall be a        |
|         | narrative report addressing the following:                 |
|         |                                                            |
|         | Impact to the contract Estimate-at-Complete (EAC) for all  |
|         | cost and schedule driver variances addressed.              |
|         |                                                            |
|         | Explanation for all variances at completion over           |
|         | threshold.                                                 |
|         |                                                            |
|         | Corrective Action Plan, as applicable.                     |
+---------+------------------------------------------------------------+
| Format  | CPR formats shall be completed according to the            |
|         | instructions outlined in the applicable DID. Contractor    |
|         | format shall be substituted for CPR formats whenever they  |
|         | contain all the required data elements at the specified    |
|         | reporting levels in a form suitable for HHS management     |
|         | use. The CPR shall be submitted electronically and         |
|         | followed up with a signed paper copy. The American         |
|         | National Standards Institute (ANSI) X12 standards          |
|         | (transaction sets 839 for cost and 806 for schedule), or   |
|         | the United National Electronic Data Interchange for        |
|         | Administration, Commerce and Transport (EDIFACT)           |
|         | equivalent, shall be used for Electronic Data Interchange. |
|         | This information is located at                             |
|         | <http://www.unece.org/trade/untdid/>                       |
+---------+------------------------------------------------------------+
| Main    | None required.                                             |
| tenance |                                                            |
+---------+------------------------------------------------------------+

+---------+------------------------------------------------------------+
| Title   | Modified Contract Performance Report                       |
+---------+------------------------------------------------------------+
| Descr   | To provide information for (1) integrating cost and        |
| iption/ | schedule performance data with technical performance       |
|         | measures, (2) assessing the magnitude and impact of actual |
| Purpose | and potential problem areas causing significant cost and   |
|         | schedule variances, and (3) providing valid, timely        |
|         | program status information to higher management.           |
+---------+------------------------------------------------------------+
| Sub     | Monthly; by the 10th working day following the close of    |
| mission | the prior month accounting period. Format 5: Updated list  |
| Fr      | of the rankings every 6 months, based on performance to    |
| equency | date.                                                      |
+---------+------------------------------------------------------------+
| Scope   | The Modified Contract Performance Report (MCPR) includes   |
|         | data to measure cost and schedule performance.             |
+---------+------------------------------------------------------------+
| C       | The MCPR shall include data pertaining to all authorized   |
| ontents | contract work, including both priced and unpriced effort,  |
|         | that has been authorized at a not-to-exceed amount in      |
|         | accordance with the Contracting Officer\'s direction. The  |
|         | MCPR shall separate direct and indirect costs and identify |
|         | elements of cost for all direct reporting elements. The    |
|         | MCPR shall consist of the following:                       |
|         |                                                            |
|         | Format 1, Work Breakdown Structure (WBS): Format 1 shall   |
|         | provide data to measure cost and schedule performance by   |
|         | summary level WBS elements, and the hardware, software,    |
|         | and services HHS is buying. Critical/major subcontractor   |
|         | summary level performance measurement data shall be        |
|         | included as an attachment to Format 1. Subcontractor MCPR  |
|         | or Cost/Schedule Status Report (C/SSR) are acceptable.     |
|         |                                                            |
|         | Format 3, Baseline: Format 3 provides the budget baseline  |
|         | plan against which performance is measured. It is the      |
|         | baseline report used to track all changes to the           |
|         | Performance Measurement Baseline (PMB). Format 3 shall     |
|         | contain baseline forecasts for two 3-month periods         |
|         | (columns 10 and 11), next two subsequent 12-month periods  |
|         | (columns 12 and 13), and the remainder of the contract for |
|         | the last period (column 14).                               |
|         |                                                            |
|         | Format 5, Explanations and Problem Analyses: Format 5      |
|         | shall be a narrative report used to explain significant    |
|         | cost and schedule variances and other identified contract  |
|         | problems/actions. Subcontractor variance analyses          |
|         | (determined by the prime contractor) shall be provided and |
|         | a discussion of the prime contractor\'s analysis of the    |
|         | subcontractor\'s performance shall be provided in Format   |
|         | 5. In the initial submission of the MCPR (Format 5), the   |
|         | contractor shall rank, in descending order of criticality  |
|         | (i.e., the most critical elements will be at the top of    |
|         | the list and the least critical will be at the bottom of   |
|         | the list), all reporting level WBS elements anticipated    |
|         | (as determined by the contractor Project Manager) to be    |
|         | schedule drivers, and all WBS elements (in a similar       |
|         | ranking) anticipated to be the cost drivers on the         |
|         | project. The contractor shall submit an updated list of    |
|         | the rankings every 6 months, based on performance to date. |
|         | The Government reserves the right to modify this ranking   |
|         | based on Government perception of criticality. If the      |
|         | contractor uses \"critical path\" scheduling techniques,   |
|         | identification of the critical path by WBS element will    |
|         | meet the schedule drivers\' requirement. Ranking of the    |
|         | critical path cost drivers shall also be provided. These   |
|         | critical elements shall reconcile to the Master Schedule   |
|         | submitted to the Government.                               |
|         |                                                            |
|         | Variance Analysis: The Variance Analysis shall be a        |
|         | narrative report and address the following:                |
|         |                                                            |
|         | Impact to the contract Estimate-at-Complete (EAC) shall be |
|         | provided for all cost and schedule driver variances        |
|         | addressed.                                                 |
|         |                                                            |
|         | Explanation for all variances at completion over set       |
|         | thresholds.                                                |
|         |                                                            |
|         | Corrective Action Plan, as applicable.                     |
+---------+------------------------------------------------------------+
| Format  | MCPR formats shall be completed according to the           |
|         | instructions outlined in the applicable DID. Contractor    |
|         | format shall be substituted for MCPR formats whenever they |
|         | contain all the required data elements at the specified    |
|         | reporting levels in a form suitable for HHS management     |
|         | use. The MCPR shall be submitted electronically and        |
|         | followed up with a signed paper copy. The American         |
|         | National Standards Institute (ANSI) X12 standards          |
|         | (transaction sets 839 for cost and 806 for schedule), or   |
|         | the United National Electronic Data Interchange for        |
|         | Administration, Commerce and Transport (EDIFACT)           |
|         | equivalent, shall be used for Electronic Data Interchange. |
|         | This information is located at                             |
|         | <http://www.unece.org/trade/untdid/>.                      |
+---------+------------------------------------------------------------+
| Main    | None required.                                             |
| tenance |                                                            |
+---------+------------------------------------------------------------+

+---------+------------------------------------------------------------+
| Title   | Work Breakdown Structure (WBS) and WBS Dictionary          |
+---------+------------------------------------------------------------+
| Descr   | To establish a framework for reporting program cost,       |
| iption/ | schedule, and technical performance. To provide a basis    |
|         | for uniform planning, reporting status, program            |
| Purpose | visibility, and assignment of responsibilities.            |
+---------+------------------------------------------------------------+
| Sub     | 30 days after Authority To Proceed, update as required.    |
| mission | Revised pages shall be submitted 10 calendar days after    |
| Fr      | contract WBS changes (following Government approval).      |
| equency |                                                            |
+---------+------------------------------------------------------------+
| Scope   | The WBS establishes a product-oriented logical subdivision |
|         | of hardware, software, services, facilities, etc., that    |
|         | make up the total project scope of work. The WBS           |
|         | Dictionary provides a narrative description of the tasks   |
|         | and effort to be performed in each WBS element.            |
+---------+------------------------------------------------------------+
| C       | The WBS index shall include\--                             |
| ontents |                                                            |
|         | Line item number.                                          |
|         |                                                            |
|         | WBS elements/tasks listed by title and indentured to       |
|         | reflect the level (e.g., level 1 is total contract; levels |
|         | 2 and following are successively lower levels).            |
|         |                                                            |
|         | Indication of phase (i.e., research, development, test and |
|         | evaluation; or production; or both) with which the WBS     |
|         | element is associated.                                     |
|         |                                                            |
|         | Contract line item associated with the WBS element.        |
|         |                                                            |
|         | Statement Of Work (SOW) paragraph numbers associated with  |
|         | the WBS element.                                           |
|         |                                                            |
|         | Specification number of the specification that covers the  |
|         | WBS element (if applicable). If the specification is       |
|         | associated with more than one WBS element, indicate the    |
|         | specification paragraph numbers associated with the WBS    |
|         | element.                                                   |
|         |                                                            |
|         | Contract end item number of WBS element (if applicable).   |
|         |                                                            |
|         | WBS Dictionary - The WBS dictionary shall describe the     |
|         | technical and cost content of every WBS element and        |
|         | efforts associated with each element (e.g., design,        |
|         | development, manufacturing). For WBS elements specified    |
|         | elsewhere for cost reporting, the WBS dictionary           |
|         | definitions shall also include the exact narrative of the  |
|         | directly associated SOW paragraphs. The WBS dictionary     |
|         | shall be arranged in the same order as the contract WBS    |
|         | index. Following the description of the WBS element shall  |
|         | be a listing of lower level WBS elements. The WBS          |
|         | dictionary shall include the following for each WBS        |
|         | element:                                                   |
|         |                                                            |
|         | WBS element title, number, and element task description.   |
|         |                                                            |
|         | Performance Measurement Criteria (PMC).                    |
|         |                                                            |
|         | SOW paragraph number.                                      |
|         |                                                            |
|         | Specification (number and title) associated with the WBS   |
|         | element.                                                   |
|         |                                                            |
|         | Contract line item associated with the WBS element.        |
|         |                                                            |
|         | Date, revision number, revision authorization, and         |
|         | approved changes.                                          |
|         |                                                            |
|         | Contract end item/data item number and quantity.           |
|         |                                                            |
|         | Cost content and description.                              |
|         |                                                            |
|         | WBS code and work order/work authorization.                |
|         |                                                            |
|         | Technical content.                                         |
|         |                                                            |
|         | System contractor.                                         |
|         |                                                            |
|         | Associate or subcontractor.                                |
|         |                                                            |
|         | Applicable SOW narrative.                                  |
+---------+------------------------------------------------------------+
| Format  | The WBS shall be in a chart format showing element         |
|         | relationships, arranged in the same order as the WBS       |
|         | provided in the Request for Proposal. The WBS Dictionary   |
|         | shall be ordered in consonance with the WBS index and      |
|         | shall reference each WBS element by its identifier and     |
|         | name.                                                      |
+---------+------------------------------------------------------------+
| Main    | Changes shall be incorporated by change page or complete   |
| tenance | reissue.                                                   |
+---------+------------------------------------------------------------+

+---------+------------------------------------------------------------+
| Title   | Project Schedules                                          |
+---------+------------------------------------------------------------+
| Descr   | To provide the contractor\'s time-phased plan, current     |
| iption/ | status, key milestones, task interdependencies, and major  |
|         | development phases necessary to accomplish the total scope |
| Purpose | of work. To provide management visibility into contractor  |
|         | status and potential problem areas, critical path          |
|         | identification and assessment, trend analysis, and to      |
|         | serve as a basis for evaluating contractor performance.    |
+---------+------------------------------------------------------------+
| Sub     | Monthly, no later than the 10th day of the calendar month  |
| mission | following the end of the contractor\'s calendar month.     |
| Fr      |                                                            |
| equency |                                                            |
+---------+------------------------------------------------------------+
| Scope   | The Project Schedules provide data for the assessment of   |
|         | contract schedule and logic network of the tasks to be     |
|         | performed.                                                 |
+---------+------------------------------------------------------------+
| C       | The Project Schedule and Logic Network report shall        |
| ontents | document the contractor\'s time-phased plan for completing |
|         | the total contracted scope of work. Schedules shall        |
|         | contain the approved baseline schedule as well as current  |
|         | forecasted dates and shall be traceable to the approved    |
|         | Contract Work Breakdown Structure (CWBS). Project          |
|         | Schedules and Logic Network shall be reported in four      |
|         | sections. All data contained in the sections shall be      |
|         | consistent, statused monthly and based on the same cutoff  |
|         | date.                                                      |
|         |                                                            |
|         | Project Master Schedule \-- One page, top level,           |
|         | Gantt-type summary document arranged by WBS that reflects  |
|         | all contract and controlled milestones, major project      |
|         | phases (i.e., design, fabrication, integration, assembly)  |
|         | and all end item deliveries.                               |
|         |                                                            |
|         | WBS Summary Schedules \-- Gantt-type summary documents     |
|         | arranged by WBS that cover each WBS level TBD element.     |
|         | Data reflected within these schedules shall be at least at |
|         | the WBS level TBD with lower level detail being provided   |
|         | as required by HHS project management. These schedules     |
|         | shall contain identification of major project phases       |
|         | (i.e., design, development, deployment and integration,    |
|         | test and acceptance), all contract and controlled          |
|         | milestones, key subcontractor milestones, and end item     |
|         | delivery dates, critical path identification, key data     |
|         | delivery dates, and key Government Furnished Property      |
|         | (GFP) need dates. (To prevent potential conflicts in       |
|         | schedule data and to minimize data maintenance, it is      |
|         | recommended that these schedules be summary extractions    |
|         | from the automated logic network database.)                |
|         |                                                            |
|         | Logic Network Database \-- An automated logic network      |
|         | database consisting of schedule data for all CWBS          |
|         | elements. The entire scope of work shall be broken into    |
|         | schedule tasks and milestones at a consistent level of     |
|         | detail to allow discrete progress measurement and          |
|         | visibility into the overall development, fabrication,      |
|         | integration, assembly, test, and delivery phase of each    |
|         | end item deliverable. Additionally, all schedule           |
|         | tasks/milestones shall be integrated with the appropriate  |
|         | sequence relationships to provide a total end-to-end logic |
|         | network leading to each end-item delivery. The logic       |
|         | network database serves as the basis for identification of |
|         | project critical paths as well as critical schedule        |
|         | analysis.                                                  |
|         |                                                            |
|         | Contractor Schedule Assessment Report \-- This report      |
|         | shall contain a trend analysis of weeks ahead/behind for   |
|         | each WBS level TBD element, primary and secondary critical |
|         | path narrative, variance rationale and impact statements   |
|         | for contract/controlled milestone variances, and proposed  |
|         | work-around plans for significant behind schedule          |
|         | situations.                                                |
+---------+------------------------------------------------------------+
| Format  | Contractor format is acceptable. Submission of the project |
|         | schedules and logic network shall be by standard hardcopy  |
|         | and electronic media. Electronic media submittals shall be |
|         | in a format compatible with the project office             |
|         | requirements. (A legend identifying the contractor\'s      |
|         | schedule symbols used and their meaning shall be           |
|         | provided.)                                                 |
+---------+------------------------------------------------------------+
| Main    | Changes shall be incorporated by change page or complete   |
| tenance | reissue.                                                   |
+---------+------------------------------------------------------------+

+---------+------------------------------------------------------------+
| Title   | Technical Performance Report                               |
+---------+------------------------------------------------------------+
| Descr   | To provide data for the assessment of the design,          |
| iption/ | development, test, evaluation, and related integration for |
|         | the system and its elements.                               |
| Purpose |                                                            |
+---------+------------------------------------------------------------+
| Sub     | Monthly, submit no later than the 10th day of the calendar |
| mission | month following the end of the contractor\'s accounting    |
| Fr      | month.                                                     |
| equency |                                                            |
+---------+------------------------------------------------------------+
| Scope   | The Technical Performance Report presents a comparison of  |
|         | the expected performance and physical characteristics with |
|         | the contractually specified values. It is the basis for    |
|         | reporting established milestones, and describes progress   |
|         | toward meeting the technical requirements.                 |
+---------+------------------------------------------------------------+
| C       | The Technical Performance Report shall identify specific   |
| ontents | technical parameters that are considered critical. These   |
|         | items shall include critical requirements such as those    |
|         | identified in the contract end item specification(s). The  |
|         | provisions for measurement and tracking each parameter may |
|         | include items such as:                                     |
|         |                                                            |
|         | Specification requirements and approved changes.           |
|         |                                                            |
|         | Program events significant to the achievement of the end   |
|         | value.                                                     |
|         |                                                            |
|         | Conditions of measurement.                                 |
|         |                                                            |
|         | Current measurement values.                                |
|         |                                                            |
|         | Predicted value of end product.                            |
|         |                                                            |
|         | Identify variances from the approved technical             |
|         | requirements where adjustments are not made, if such       |
|         | variances will cause the performance of critical items to  |
|         | fall below the established minimum values.                 |
|         |                                                            |
|         | In critical areas, analyze variances exceeding the         |
|         | tolerances to determine causes and assess the impact of    |
|         | changes on measurement control parameters, interface       |
|         | requirements, schedule, and cost, as appropriate. In       |
|         | instances of subcontract impact, the subcontractor\'s      |
|         | evaluation shall be obtained.                              |
|         |                                                            |
|         | For identified performance deficiencies, procedures for    |
|         | developing recovery plans shall be specified that identify |
|         | appropriate implications.                                  |
|         |                                                            |
|         | The contractor shall include a completed report            |
|         | documentation page (Standard Form 298) as the final page   |
|         | of each report submitted per NFS 1827.406-70.              |
+---------+------------------------------------------------------------+
| Format  | Contractor format is acceptable. Quantitative measurements |
|         | shall be utilized to determine program success.            |
+---------+------------------------------------------------------------+
| Main    | None required.                                             |
| tenance |                                                            |
+---------+------------------------------------------------------------+

# Attachment 6: Instructions for DHHS Monthly EV Reporting {#attachment-6-instructions-for-dhhs-monthly-ev-reporting .Style-Heading-1-+-Left:--0\"-First-line:--0\"}

September Workbook

(Reporting Data-as-of: [8/31/2005]{.underline})

The DHHS monthly EV reporting workbook is comprised of two worksheets
titled "EV INPUT" and "EV SUMMARY". Values for the portfolio investment
are entered in the gray-shaded areas of the "EV INPUT" worksheet. These
values are used to calculate the earned value information displayed on
the "EV SUMMARY" worksheet.

> **Note:** With the exception of the gray-shaded areas, the EV
> reporting workbook is locked for editing. **No data should be entered
> directly into the "EV SUMMARY" worksheet.**

[For entering data into the "EV INPUT" worksheet, follow the
instructions below:]{.underline}

> **Note:** Dollars should be entered in millions (\$M) to three decimal
> points.

**[STEP 1]{.underline}:** Enter the name of the portfolio investment,
the OPDIV name, and the data-as-of date in the upper right-hand area of
the "EV INPUT" worksheet.

**[STEP 2]{.underline}:** In the CPIC Milestone column, provide a
listing of the OMB approved milestones identified in the CPIC submission
(section 2.1.15). These milestones should equate to the portfolio's work
breakdown structure (WBS) tasks at a single WBS level and should
identify milestones appropriate to the size and complexity of the
investment. The next page provides a simple example of WBS reporting
level. The spreadsheet does not provide for reporting
multiple/subordinate levels within the WBS. There is currently room for
30 milestones.

> **Note:** If additional tasks need to be added, beyond the 30 rows
> currently in the spreadsheet, contact Andree Trelogan, at
> <Andree.Trelogan@hhs.gov>

**[STEP 3]{.underline}:** In the Milestone Type Column, select DME or
Steady State using the pull-down list provided.

**[STEP 4]{.underline}:** Provide the Budget at Completion (BAC) for
each milestone/task. This is the [total planned cost]{.underline} for
that particular milestone/task.

**[STEP 5]{.underline}:** Provide the Budgeted Cost of Work Scheduled
(BCWS) for each milestone/task as of the end of the reporting month.
This is the [cumulative expected planned cost]{.underline} for that
milestone/task up to August 31, 2005.

**[STEP 6]{.underline}:** Provide the Actual Cost of Work Performed
(ACWP) for each milestone/task as of the end of the reporting month.
This is the cumulative amount actually spent on that task up to August
31, 2005.

**[STEP 7]{.underline}:** Provide the percentage completed for that
milestone/task as of the end of the reporting month. This is an estimate
of the work that has been completed as of August 31, 2005.

The Budgeted Cost of Work Performed (BCWP) on the "EV INPUT" worksheet
is automatically calculated.

Review the "EV SUMMARY" worksheet to ensure that the calculations
accurately reflect the status of the project. The schedule variance,
schedule variance percentage, and SPI as well as the cost variance, the
cost variance percentage, and the CPI are all automatically calculated
based on the information provided in the "EV INPUT" worksheet.

> If you have questions regarding these spreadsheets, please contact
> Andree Trelogan at <Andree.Trelogan@hhs.gov>, or on 202-205-5987.
>
> **[Example of WBS Level to Report on the February Monthly EV
> Report:]{.underline}**
>
> If the WBS had only two levels, report tasks at level two (see
> highlighted tasks below). If it makes more sense in your reporting of
> EV data to report at another level, you may, just as long as all the
> tasks reported are at the same level. The recommendation, however, for
> the purposes of this monthly report is not to report at the very
> highest level or the lowest level of your WBS.

+-----------------------------------+-----------------------------------+
| 1.0 Module A                      | []{.mark}                         |
|                                   |                                   |
| (Highest Level WBS Task)          |                                   |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [1.1 Module A Task 1]{.mark}      |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [1.2 Module A Task 2]{.mark}      |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [1.3 Module A Task 3]{.mark}      |
+-----------------------------------+-----------------------------------+
| 2.0 Module B                      | []{.mark}                         |
|                                   |                                   |
| (Highest Level WBS Task)          |                                   |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [2.1 Module B Task 1]{.mark}      |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [2.2 Module B Task 2]{.mark}      |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [2.3 Module B Task 3]{.mark}      |
+-----------------------------------+-----------------------------------+
| 3.0 Module C                      | []{.mark}                         |
|                                   |                                   |
| (Highest Level WBS Task)          |                                   |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [3.1 Module C Task 1]{.mark}      |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [3.2 Module C Task 2]{.mark}      |
+-----------------------------------+-----------------------------------+
| []{.mark}                         | [3.3 Module C Task 3]{.mark}      |
+-----------------------------------+-----------------------------------+

# Attachment 7: Corrective Action Plan Template {#attachment-7-corrective-action-plan-template .Style-Heading-1-+-Left:--0\"-First-line:--0\"}

**A. Purpose:**

This template may be used by Investment Managers when their investment
receives a variance of + or -10% or more in cost, schedule or
performance or they are requested by the ITIRB and/or CIO to complete
one. The use of this template allows the HHS CPIC Team to collect
standardized information on strategies and tasks for improving the
performance of an investment.

**B. Overview:**

Corrective Action Plans (CAPs) may be developed using a standard
template. This template is designed to capture the specific tasks,
dates, and responsible persons for improving the performance of
investments that received a variance of + or -10% or more in cost,
schedule, or performance. The template also requires Investment Managers
to consider how their CAP may impact other areas of the investment. It
is possible that a CAP may consist of multiple strategies to improve
performance depending on the number of areas that are in need of
improvement.

CAPs may be subject to review by the ITIRB and CIO in order to assess
the feasibility of the plan. Plans that do not sufficiently address the
issue(s) identified in the monthly ITIRB meeting may require the
Investment Manager to meet with the ITIRB. This meeting will serve as a
forum where the Investment Manager and the ITIRB can collaborate on
approaches for improving the effectiveness of the CAP.

Below is a sample of the template that should be used for developing a
CAP:

  ----------------- ------------------- ------------- --------- -------- --------------
  **1. Project                                                           
  Management                                                             
  Qualification**                                                        

  **Brief                                                                
  Description of                                                         
  the Issue:**                                                           

  **Brief                                                                
  Description of                                                         
  the Corrective                                                         
  Action Plan                                                            
  strategy:**                                                            

  **Task Number**   **Corrective Task** **Point of    **Start   **End    **Comments**
                                        Contact**     Date**    Date**   

  **1.1**                                                                

  **1.2**                                                                

  **1.3**                                                                

  **1.4**                                                                

  **1.5**                                                                

  **Impacts to                                                           
  other EVM Monthly                                                      
  Review                                                                 
  Elements:**                                                            
  ----------------- ------------------- ------------- --------- -------- --------------

  ------------- ------------------- ------------- --------- -------- --------------
  **2. Cost                                                          
  Variance**                                                         

  **Brief                                                            
  Description                                                        
  of the                                                             
  Issue:**                                                           

  **Brief                                                            
  Description                                                        
  of the                                                             
  Corrective                                                         
  Action Plan                                                        
  strategy:**                                                        

  **Task        **Corrective Task** **Point of    **Start   **End    **Comments**
  Number**                          Contact**     Date**    Date**   

  **1.1**                                                            

  **1.2**                                                            

  **1.3**                                                            

  **1.4**                                                            

  **1.5**                                                            

  **Impacts to                                                       
  other EVM                                                          
  Monthly                                                            
  Review                                                             
  Elements:**                                                        
  ------------- ------------------- ------------- --------- -------- --------------

  ------------- ------------------- ------------- --------- -------- --------------
  **3. Schedule                                                      
  Variance**                                                         

  **Brief                                                            
  Description                                                        
  of the                                                             
  Issue:**                                                           

  **Brief                                                            
  Description                                                        
  of the                                                             
  Corrective                                                         
  Action Plan                                                        
  strategy:**                                                        

  **Task        **Corrective Task** **Point of    **Start   **End    **Comments**
  Number**                          Contact**     Date**    Date**   

  **1.1**                                                            

  **1.2**                                                            

  **1.3**                                                            

  **1.4**                                                            

  **1.5**                                                            

  **Impacts to                                                       
  other EVM                                                          
  Monthly                                                            
  Review                                                             
  Elements:**                                                        
  ------------- ------------------- ------------- --------- -------- --------------

  ------------- ------------------- ------------- --------- -------- --------------
  **4.                                                               
  Performance                                                        
  Variance**                                                         

  **Brief                                                            
  Description                                                        
  of the                                                             
  Issue:**                                                           

  **Brief                                                            
  Description                                                        
  of the                                                             
  Corrective                                                         
  Action Plan                                                        
  strategy:**                                                        

  **Task        **Corrective Task** **Point of    **Start   **End    **Comments**
  Number**                          Contact**     Date**    Date**   

  **1.1**                                                            

  **1.2**                                                            

  **1.3**                                                            

  **1.4**                                                            

  **1.5**                                                            

  **Impacts to                                                       
  other EVM                                                          
  Monthly                                                            
  Review                                                             
  Elements:**                                                        
  ------------- ------------------- ------------- --------- -------- --------------

[]{#__RefHeading___Toc123718882 .anchor}**Attachment** 8: Glossary

+------------+---------------------------------------------------------+
| TERM       | DEFINITION                                              |
+============+=========================================================+
| Actual     | The actual cost derived from the employed accounting    |
| Cost (AC)  | system. Also called ACWP.                               |
+------------+---------------------------------------------------------+
| Actual     | The sum of costs actually incurred in accomplishing the |
| Cost of    | work performed.                                         |
| Work       |                                                         |
| Performed  |                                                         |
| (ACWP)     |                                                         |
+------------+---------------------------------------------------------+
| Budget at  | The sum total of the time-phased budget.                |
| Completion |                                                         |
| (BAC)      |                                                         |
+------------+---------------------------------------------------------+
| Budgeted   | A measure used to quantify the overall progress of the  |
| Cost for   | investment in monetary terms. BCWP is calculated by     |
| Work       | applying a performance measurement factor to the        |
| Performed  | planned cost. (By comparing BCWP with ACWP, it is       |
| (BCWP)     | possible to determine if the investment is under or     |
|            | over budget.) Another term for BCWP is \"earned         |
|            | value.\"                                                |
+------------+---------------------------------------------------------+
| Budgeted   | The sum of the budgets for all planned work scheduled   |
| Cost for   | to be accomplished within a given time period. This     |
| Work       | term is often used to designate the cumulative to-date  |
| Scheduled  | budget.                                                 |
| (BCWS)     |                                                         |
+------------+---------------------------------------------------------+
| Contract   | An element of the contract that specifies the data      |
| Data       | submittal requirements.                                 |
| Re         |                                                         |
| quirements |                                                         |
| List       |                                                         |
| (CDRL)     |                                                         |
+------------+---------------------------------------------------------+
| Contract   | The Contract Performance Report (CPR) presents the cost |
| P          | and schedule data for the current period as well as in  |
| erformance | a cumulative format. Formats 1 and 5 provide the HHS IT |
| Report     | Investment Manager the insight needed to manage the     |
| (CPR)      | investment. Format 1 is a WBS-oriented contract report. |
|            | Costs are organized by WBS element at a level           |
|            | pre-determined by the HHS IT Investment team. Format 5, |
|            | Variance Narrative, is a problem analysis and           |
|            | variance-oriented report. It provides explanations for  |
|            | cost and schedule variances that have exceeded          |
|            | thresholds. It provides a written explanation as to why |
|            | the variance occurred, as well as written descriptions  |
|            | on how the contractor plans to resolve the cause of the |
|            | variance. Examples of the CPR Forms 1-5 are provided in |
|            | the CPIC guide.                                         |
+------------+---------------------------------------------------------+
| Contract   | A customer-prepared breakout or subdivision of a        |
| Work       | project typically down to level three which subdivides  |
| Breakdown  | the investment into all its major hardware, software,   |
| Structure  | and service elements, integrates the customer and       |
| (CWBS)     | contractor effort, provides a framework for the         |
|            | planning, control, and reporting.                       |
+------------+---------------------------------------------------------+
| Control    | A member of the organization responsible for cost       |
| Account    | account performance, and for the management of          |
| Manager    | resources to accomplish such tasks.                     |
| (CAM)      |                                                         |
+------------+---------------------------------------------------------+
| Control    | Control Account Plans (CAPs) document the underlying    |
| Account    | work packages and provide the CAM with a source to      |
| Plan (CAP) | evaluate his or her BCWS, ACWP, and BCWP (Earned Value) |
|            | of each for the CAM's Control Accounts.                 |
+------------+---------------------------------------------------------+
| Corrective | Corrective Action Plans are documents that allow        |
| Action     | Investment Managers to define the strategy that will be |
| Plan (CAP  | employed to improve the performance of their            |
| )          | investments.                                            |
+------------+---------------------------------------------------------+
| Cost       | Ratio of work accomplished versus work cost incurred    |
| P          | for a specified time period. The CPI is an efficiency   |
| erformance | rating for work accomplished for resources expended.    |
| Index      |                                                         |
| (CPI)      |                                                         |
+------------+---------------------------------------------------------+
| Cost       | The difference between the earned value and the actual  |
| Variance   | cost.                                                   |
| (CV)       |                                                         |
+------------+---------------------------------------------------------+
| Data Item  | Data Item Description contains the format and content   |
| D          | preparation instructions for the data product generated |
| escription | by the specific and discrete task requirements as       |
| (DID)      | delineated in the contract.                             |
+------------+---------------------------------------------------------+
| Earned     | EV quantifies the amount or volume of work completed to |
| Value (EV) | date, and is commonly known as the Budgeted Cost of     |
|            | Work Performed (BCWP). When compared to the planned     |
|            | value (Budgeted Cost of Work Scheduled) and its actual  |
|            | cost (Actual Cost of Work Performed), EV provides an    |
|            | objective measure of schedule and cost performance.     |
+------------+---------------------------------------------------------+
| Earned     | EVM is a methodology that integrates a program's work   |
| Value      | scope, schedule, and resources to enable government and |
| Management | contractor management to objectively track program      |
| (EVM)      | progress throughout the project's life cycle. Please    |
|            | refer to the ANSI/EIA Standard 748-A for additional     |
|            | information.                                            |
+------------+---------------------------------------------------------+
| Earned     | The EVMIG provides guidance for understanding earned    |
| Value      | value management concepts, defines objective criteria   |
| Management | for earned value management systems and provides        |
| Impl       | guidance in interpreting those criteria for use on      |
| ementation | large, risky, cost based government programs.           |
| Guide      | Procedural aspects for Government personnel for         |
| (EVMIG)    | specifying and using earned value management systems    |
|            | and for evaluating those systems are also provided.     |
+------------+---------------------------------------------------------+
| Earned     | EVMS is the integrated set of processes, applications,  |
| Value      | and practices that follow the guidelines in the         |
| Management | ANSI/EIA Standard 748-98. The guidelines describe the   |
| System     | attributes of an effectively integrated cost, schedule, |
| (EVMS)     | and technical performance management system.            |
+------------+---------------------------------------------------------+
| Estimate   | A value expressed in either dollars and /or hours, to   |
| at         | represent the projected final costs of work when        |
| Completion | completed. The EAC is calculated as ETC + ACWP.         |
| (EAC)      |                                                         |
+------------+---------------------------------------------------------+
| Estimate   | The value expressed in either dollars or hours          |
| to         | developed to represent the cost of the work required to |
| Complete   | complete a task. Cobra calculates the ETC by            |
| (ETC)      | subtracting the budgeted cost of work performed from    |
|            | the budget at complete. The ETC is calculated as BAC -  |
|            | BCWP.                                                   |
+------------+---------------------------------------------------------+
| EVM System | EVM System Certification is the process to determine    |
| Cer        | that the proposed EVM System being used for a specific  |
| tification | investment fully complies with the ANSI 748-A-1998      |
|            | Standard. The process involves a lengthy evaluation of  |
|            | the management system to ensure that management system  |
|            | characteristics expected in a good EVMS relative to the |
|            | 32 ANSI criteria are supported, along with typical      |
|            | documents that support these characteristics. (See the  |
|            | DoD Earned Value Management Implementation Guide,       |
|            | Appendix B, Earned Value Management System Evaluation   |
|            | Guide)                                                  |
+------------+---------------------------------------------------------+
| Integrated | An IBR is intended to verify the technical content and  |
| Baseline   | realism of the related performance budgets, resources,  |
| Review     | and schedules. It should provide a mutual understanding |
| (IBR)      | of the inherent risks in the offerors'/contractors'     |
|            | performance plans and the underlying management control |
|            | systems, and it should formulate a plan to handle these |
|            | risks.                                                  |
+------------+---------------------------------------------------------+
| Integrated | The IMS is developed for the HHS IT Investment so that  |
| Master     | tasks and mile­stones are clearly defined. It is updated |
| Schedule   | regularly to identify IT investment elements that are   |
| (IMS)      | behind as well as those ahead of schedule. The IMS maps |
|            | directly to the CWBS enabling the investment management |
|            | team a single point of reference for all activities.    |
+------------+---------------------------------------------------------+
| Management | A portion of the Contract Budget Base that is held for  |
| Reserve    | management control purposes by the contractor to cover  |
| (MR)       | the expense of unanticipated program requirements. It   |
|            | is not a part of the Performance Measurement Baseline.  |
|            | Another term for Management Reserve is Contingency      |
+------------+---------------------------------------------------------+
| Orga       | A hierarchical structure designed to pinpoint the area  |
| nizational | of an organization responsible for each part of an      |
| Breakdown  | investment.                                             |
| Structure  |                                                         |
| (OBS)      |                                                         |
+------------+---------------------------------------------------------+
| P          | Performance Based Management System incorporates        |
| erformance | performance measures and metrics with careful           |
| Based      | investment planning to effectively manage investments,  |
| Management | programs, and projects.                                 |
| System     |                                                         |
| (PBMS)     |                                                         |
+------------+---------------------------------------------------------+
| P          | The PMB is the time-phased budget plan against which    |
| erformance | contract performance is measured. It is formed by the   |
| M          | budgets assigned to scheduled cost accounts and the     |
| easurement | applicable indirect budgets. It equals the total budget |
| Baseline   | less management reserve and undistributed budget.       |
| (PMB)      |                                                         |
|            | Once the PMB is frozen or established, cost and         |
|            | schedule changes must be processed through formal       |
|            | change control procedures. Authorized changes must then |
|            | be incorporated into the PMB in a timely manner and     |
|            | reflected in both budgets and schedules.                |
+------------+---------------------------------------------------------+
| Planned    | The assignment of the budget for each reporting period  |
| Value (PV) | for each work component. Also called BCWS.              |
+------------+---------------------------------------------------------+
| Resp       | The RAM correlates the work required by a Contract Work |
| onsibility | Breakdown Structure (CWBS) element to the functional    |
| Assignment | organization responsible for accomplishing the assigned |
| Matrix     | tasks. The responsibility assignment matrix is created  |
| (RAM)      | by intersecting the CWBS with the program               |
|            | Organizational Breakdown Structure (OBS). This          |
|            | intersection identifies the cost account.               |
+------------+---------------------------------------------------------+
| Schedule   | The Schedule Management Plan defines scope, purpose,    |
| Management | and policy; participant roles and responsibilities;     |
| Plan (SMP) | objectives; processes and procedures; organizational    |
|            | responsibilities and relationships; tools; reporting    |
|            | requirements; and related documents. It guides the      |
|            | overall implementation of schedule development and      |
|            | management over time.                                   |
+------------+---------------------------------------------------------+
| Schedule   | Ratio of work accomplished versus work planned, for a   |
| P          | specified time period. The SPI is an efficiency rating  |
| erformance | for work accomplishment, comparing work accomplished to |
| Index      | what should have been accomplished                      |
| (SPI)      |                                                         |
+------------+---------------------------------------------------------+
| Schedule   | The difference between the budgeted cost of work        |
| Variance   | performed and the budgeted cost of work scheduled at    |
| (SV)       | any point in time (BCWP-BCWS).                          |
+------------+---------------------------------------------------------+
| Statement  | A description of product and service to be procured     |
| of Work    | under contract; a statement of requirements.            |
| (SOW)      |                                                         |
+------------+---------------------------------------------------------+
| Subject    | The Subject Matter Expert is the individual(s) who      |
| Matter     | exhibits the highest level of expertise in performing a |
| Expert     | specialized job, task, or skill within the              |
| (SME)      | organization.                                           |
+------------+---------------------------------------------------------+
| Und        | Budget applicable to contract effort which has not yet  |
| istributed | been identified to specific cost accounts or work       |
| Budget     | packages.                                               |
| (UB)       |                                                         |
+------------+---------------------------------------------------------+
| Variance   | Variance at Complete is the algebraic difference        |
| at         | between Budget at Complete and Estimate at Complete.    |
| Completion |                                                         |
| (VAC)      |                                                         |
+------------+---------------------------------------------------------+
| Work       | The Work Authorization Document (WAD) is a document     |
| Aut        | produced by the contractor and used internally. It is   |
| horization | not a deliverable item. Included in the WAD are details |
| Document   | concerning the task work to be performed, a detailed    |
| (WAD)      | list of task outputs, CDRL items, and other             |
|            | task-specific deliverables. It also includes the        |
|            | associated budget for the task and authorizing          |
|            | signatures that confirm that the staff member is        |
|            | authorized to work on the task. It should not include   |
|            | the number of hours that may be charged. The Government |
|            | IBR team evaluates the WAD to ensure that the work      |
|            | docu­mented is truly representative of the work to be    |
|            | performed, that the proper signatures are present, and  |
|            | that the deliverables listed are complete and accurate  |
+------------+---------------------------------------------------------+

[]{#__RefHeading___Toc123718883 .anchor}Attachment 9: List of Acronyms

  -----------------------------------------------------------------------
  ACRONYM      DEFINITION
  ------------ ----------------------------------------------------------
  AC           Actual Cost

  ACO          Administrative Contracting Officer

  ACWP         Actual Cost of Work Performed

  ANSI/EIA     American National Standards Institute-Electronic
               Industries Alliance

  BAC          Budget at Completion

  BCWP         Budgeted Cost for Work Performed

  BCWS         Budgeted Cost for Work Scheduled

  CAM          Control Account Manager

  CAP          Control Account Plan

  CAP or CARP  Corrective Action/Recovery Plan

  CDRL         Contract Data Requirements List

  CO           Contracting Officer

  COTR         Contracting Officer's Technical Representative

  CPI          Cost Performance Index

  CPIC         Capital Planning and Investment Control

  CPR          Contract Performance Report

  CV           Cost Variance

  CWBS         Contract Work Breakdown Structure

  DID          Data Item Description

  DME          Development Modernization and Enhancement

  EAC          Estimate At Completion

  ETC          Estimated Cost to Complete

  EV           Earned Value

  EVM          Earned Value Management

  EVMIG        Earned Value Management Implementation Guide

  EVMS         Earned Value Management System

  FAR          Federal Acquisition Regulation

  HCA          Head of Contract Activity

  HHSAR        HHS Acquisition Regulation

  IBR          Integrated Baseline Reviews

  IMS          Integrated Master Schedule

  MR           Management Reserve

  NDIA         National Defense Industrial Association

  OBS          Organizational Breakdown Structure

  PBMS         Performance Based Management System

  PMB          Performance Measurement Baselines

  PV           Planned Value

  RAM          Responsibility Assignment Matrix

  SMP          Schedule Management Plan

  SME          Subject Matter Experts

  SOW          Statement of Work

  SPI          Schedule Performance Index

  SV           Schedule Variance

  UB           Undistributed Budget

  VAC          Variance at Completion

  WAD          Work Authorization Document

  WBS          Work Breakdown Structures
  -----------------------------------------------------------------------

[]{#__RefHeading___Toc123718884 .anchor}**Attachment 10: Contract
Performance Reports**

![](media/image7.wmf)

CPR Format 1

![](media/image8.wmf)

CPR Format 2

![](media/image9.wmf)

CPR Format 3

![](media/image10.wmf)

CPR Format 4

![](media/image11.wmf)

CPR Format 5

[^1]: HHS Memorandum *Monthly Reporting of Earned Value Cost and
    Schedule Variances*, January 31, 2005.

[^2]: HHS Memorandum *Team-Based Earned Value Management Guidelines*,
    June 16, 2005.

[^3]: HHS, Charles Havekost, CIO Memorandum *Team-Based Earned Value
    Management Guidelines*, June 16, 2005.

[^4]: HHS Memorandum *Team-Based Earned Value Management Guidelines*,
    June 16, 2005.

[^5]: Ibid.

[^6]: Department of Defense Earned Value Management Implementation
    Guide, April 7, 2005.

[^7]: FAR Case 2004-019, *Federal Acquisition Regulation Earned Value
    Management System (EVMS)*, Federal Register, Volume 70, Number 67,
    April 8, 2005.

[^8]: Only Tier 3 investments with current year DME funding equal to or
    greater than \$500,000 are currently required to provide EVM
    reports.