NASA/SP-2012-599

Earned Value Management (EVM) 

Implementation Handbook

National Aeronautics and Space Administration

NASA Headquarters

Washington, D.C. 20546

February 2013
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NASA/SP-2012-599

Earned Value Management (EVM)

Implementation Handbook

National Aeronautics and Space Administration

NASA Headquarters

Washington, D.C. 20546

February 2013 
Electronic copies are available from

NASA Center for AeroSpace Information

7115 Standard Drive

Hanover, MD 21076-1320

http://ntrs.nasa.gov/

NASA Engineering Network (NEN) 

Community Home Program Project 

Management

https://nen.nasa.gov/web/pm
NASA EVM Implementation Handbook Page iii

Table of Contents

1 EVM Requirements............................................................................................................................ 1-1

1.1 Background............................................................................................................................ 1-1

1.2 Policy and Requirements for the Application of EVM............................................................. 1-1

2 Roles and Responsibilities.................................................................................................................2-1

2.1 Introduction ............................................................................................................................ 2-1

2.2 Project Manager.....................................................................................................................2-1

2.3 EVM Focal Point ....................................................................................................................2-2

2.4 Business Manager .................................................................................................................2-2

2.5 Earned Value Management Analyst....................................................................................... 2-3

2.6 Resource Analyst...................................................................................................................2-3

2.7 Planner/Scheduler .................................................................................................................2-4

2.8 Functional Manager ...............................................................................................................2-4

2.9 Integrated Product Team .......................................................................................................2-4

2.10 Project Control Account Manager .......................................................................................... 2-4

2.11 Work Package Manager.........................................................................................................2-5

2.12 Task Manager........................................................................................................................ 2-5

3 EVM Implementation on NASA Contracts.......................................................................................... 3-1

3.1 Overview................................................................................................................................ 3-1

3.2 Activities before Contract Award ............................................................................................ 3-1

3.3 Activities after Contract Award ............................................................................................... 3-5

4 EVM Implementation on NASA Projects ............................................................................................ 4-1

4.1 Overview................................................................................................................................ 4-1

4.2 Basic EVMS Process Description .......................................................................................... 4-2

4.3 Integration of Data from Multiple Centers...............................................................................4-3

4.4 Integrated Baseline Reviews..................................................................................................4-3

4.5 Management Reporting and Data Analysis............................................................................4-4

4.6 Changes to Baseline Data .....................................................................................................4-4

4.7 Project EVMS Surveillance ....................................................................................................4-5

4.8 Minimum Waiver Requirements for NASA In-House Programs and Projects ........................ 4-5

5 Lessons Learned ............................................................................................................................... 5-1

5.1 Overview................................................................................................................................ 5-1

5.2 EVM Planning Begins at Project Formulation ........................................................................5-1

5.3 Baseline Planning (Budget and Funds)..................................................................................5-2

5.4 Management Reserve Planning and Usage...........................................................................5-3

5.5 Replanning versus Rebaselining............................................................................................ 5-4

5.6 EVM Implementation and Letter Contracts ............................................................................5-5

Appendix A. NASA EVM Requirements Summary .....................................................................................A-1

Appendix B. Sample Scope Paragraphs.....................................................................................................B-1

Appendix C. NFS EVMS Solicitation and Contract Clauses ...................................................................... C-1

Appendix D. Contract Data Requirements Descriptions ............................................................................ D-1

Appendix E. Reporting For Contracts with No Earned Value Management (EVM) Requirements..............E-1

Appendix F. Sample EVM Status Report....................................................................................................F-1
NASA EVM Implementation Handbook Page iv

Appendix G. EVMS Acceptance Process .................................................................................................. G-1

Appendix H. EVMS Surveillance Process.................................................................................................. H-1

Appendix I. Minimum Waiver Requirements for NASA In-House Programs and Projects ........................... I-1

Appendix J. EVM Implementation Description In Project Plans.................................................................. J-1

Appendix K. Acronyms ...............................................................................................................................K-1

Appendix L. Glossary..................................................................................................................................L-1
NASA EVM Implementation Handbook Page v

RECORD OF REVISIONS

REV

LTR

DESCRIPTION DATE

Basic Issue February 15, 2013
NASA EVM Implementation Handbook Page vi

Preface

P.1 Purpose

The purpose of this handbook is to provide Earned Value Management (EVM) guidance for the 

effective application, implementation, and utilization of EVM on NASA programs, projects, 

major contracts and subcontracts in a consolidated reference document. EVM is a project 

management process that effectively integrates a project’s scope of work with schedule and cost 

elements for optimum project planning and control. The goal is to achieve timely and accurate 

quantification of progress that will facilitate management by exception and enable early visibility 

into the nature and the magnitude of technical problems as well as the intended course and 

success of corrective actions.

It should be noted that NASA EVM policy not only applies to contractors, but to NASA projects 

(in-house activities) as well. Throughout this document, the term ―contract‖ may be interpreted 

to apply to both contracts with industry to include universities as well as agreements with NASA 

projects and with intra-agency activities that meet the reporting thresholds unless specifically 

noted. Similarly, the term ―contractor‖ may also refer to ―supplier‖ entities within both industry 

and government. The following key components of NASA’s EVM Policy are addressed in this 

handbook:

 EVM Implementation on NASA Contracts 

 EVM Implementation on NASA in-house Programs/Projects

 EVM System (EVMS) Acceptance and Surveillance Processes

The handbook addresses the application of EVM to NASA projects that meet the threshold for 

implementing EVM. The project effort may be primarily contract, in-house or a combination of 

both. Refer to the NASA EVM Systems Description located on the NASA Engineering Network 

(NEN), Program/Project Management, and EVM Sub-Community at

https://nen.nasa.gov/web/pm/evm for detailed information on implementation of the EVM 

processes, procedures, roles and responsibilities.

It is each program’s responsibility to impose EVM requirements on its projects as required by 

NASA policy and summarized in section 1.2. In the Program Plan, the Program Manager will 

include his or her approach for integrating and managing program cost, schedule, and technical 

performance, including the flow down of EVM requirements to projects. When EVM is applied

at the program level, the Program Manager will follow the same process as projects, including 

the use of the NASA EVM Systems Description. 

This handbook was developed to serve as the central EVM guidance document for NASA 

personnel. The handbook is included in the document hierarchy (Figure P-1) along with the 

following complementary handbooks: NASA/SP-2010-3403, NASA Schedule Management 

Handbook; NASA/SP-2010-3404, NASA Work Breakdown Structure (WBS) Handbook; 

NASA/SP-2010-3406, NASA Integrated Baseline Review (IBR) Handbook and the NASA EVM 

Systems Description. The dashed line indicates guidance and instruction rather than policy and 

procedures as contained in the NASA Directives and Procedures. Throughout this document, 

references are made to additional sources of information, such as EVMS standards, 

requirements, and websites. These additional sources should be consulted as appropriate.
NASA EVM Implementation Handbook Page vii

Figure P-1. NASA Program/Project Management Requirements Hierarchy

The EVM Implementation Handbook will be updated as needed to enhance efficient and 

effective EVM implementation and use across NASA (the Agency). There are two primary 

repositories of NASA EVM information and documents. The NASA EVM Website, 

http://evm.nasa.gov/, is a public website that consists of all publicly available NASA EVM 

related policy and requirements, handbooks, links to other websites, etc. The NEN EVM SubCommunity, https://nen.nasa.gov/web/pm/evm, is for NASA internal use and contains 

documents such as the EVM Systems Description, EVMS training, wInsight Validity Report 

access and instructions, etc. Both are maintained by the by the point of contact for this document 

(see P.5 below). 

P.2 Applicability

This handbook provides EVM guidance for NASA Headquarters, NASA Centers, the Jet 

Propulsion Laboratory (JPL), government partners, academic institutions, international partners, 

and contractors to the extent specified in the contract or agreement. This handbook does not 

contradict JPL’s validated EVM Systems Description or NASA/Caltech prime contract 

requirements.

P.3 Authority

 NASA Federal Acquisition Regulation Supplement (NFS) 1834.201, Earned Value 

Management System Policy
NASA EVM Implementation Handbook Page viii

 NASA Policy Directive NPD 1000.0, NASA Governance and Strategic Management 

Handbook 

 NPD 1000.5, Policy for NASA Acquisition

 NPD 7120.4, Program/Project Management

 NASA Procedural Requirements (NPR) 7120.5, NASA Space Flight Program and Project 

Management Requirements

 NPR 7120.7, NASA Information Technology and Institutional Infrastructure Program and 

Project Requirements

 NPR 7120.8, NASA Research and Technology Program and Project Management 

Requirements

P.4 References

 American National Standards Institute/Electronic Industries Alliance Standard (ANSI/EIA748), Earned Value Management Systems 

 Department of Defense (DoD) Earned Value Management Implementation Guide (EVMIG)

 Government Accountability Office (GAO), GAO Cost Estimating and Assessment Guide, 

GAO-09-3SP 

 NASA EVM Website, http://evm.nasa.gov/

 NASA Engineering Network (NEN), Program/Project Management, EVM Sub-Community, 

https://nen.nasa.gov/web/pm/evm

 NASA Space Flight Program and Project Management Handbook

 NASA Special Publication, NASA/SP-2010-3403, NASA Schedule Management Handbook

 NASA/SP-2010-3404, NASA Work Breakdown Structure (WBS) Handbook

 NASA/SP-2010-3406, NASA Integrated Baseline Review (IBR) Handbook

 National Defense Industrial Association (NDIA) Program Management Systems Committee 

(PMSC), Earned Value Management Systems Intent Guide, 

http://www.ndia.org/Divisions/Divisions/Procurement/Pages/Program_Management_System

s_Committee.aspx

 NDIA PMSC Earned Value Management Systems Application Guide

 NDIA PMSC Earned Value Management System Acceptance Guide

 NDIA PMSC Surveillance Guide

 Office of Management and Budget (OMB) Circular A-11, Part 7, Planning, Budgeting, 

Acquisition, and Management of Capital Assets; and the Capital Programming Guide

P.5 Point of Contact

Primary point of contact for this handbook is NASA’s EVM Program Executive, Jerald G. 

Kerby, from the Office of Strategic Analysis and Communication, Marshall Space Flight Center, 

(256) 544-3243, jerald.g.kerby@nasa.gov.

NASA EVM Focal Points (EVMFPs) may also be consulted for assistance with the guidance 

contained in this handbook. The listing of applicable EVMFPs is located on the NASA EVM 

website, http://evm.nasa.gov/council.html. 
NASA EVM Implementation Handbook Page 1-1

1 EVM REQUIREMENTS

1.1 Background

The Office of Management and Budget (OMB) Circular A-11 and supplement, Capital 

Programming Guide, set forth the policy, guidance, budget justification, and reporting 

requirements that apply to all agencies of the Executive Branch of the government that are 

subject to Executive Branch review for major capital asset acquisitions. It requires an Earned 

Value Management System (EVMS) be applied on major acquisitions for developmental efforts 

for both government and contractor work, that the EVMS be consistent with the guidelines in the 

American National Standards Institute/Electronic Industries Alliance 748 (ANSI/EIA-748), 

Earned Value Management Systems, and that in-house work be managed with the same rigor as 

contractor work. While a Project Plan or Intra-Agency Work Agreement replaces the contract for 

NASA in-house work, the other requirements for good project management, including the use of

an EVMS that complies with the ANSI/EIA-748 standard, are applicable for developmental 

efforts.

The Office of the Chief Engineer (OCE) is NASA’s policy and functional owner for EVM. The 

OCE has developed an Agency-wide EVM capability that will facilitate compliance with OMB 

EVM requirements and provide for the effective and consistent implementation of EVM across 

NASA programs/projects. The NASA EVM capability consists of processes and procedures 

documented in the NASA EVM Systems Description, selected tools, and training. NASA’s 

EVM capability can be found on the NASA Engineering Network (NEN) Program/Project 

Management/EVM Sub-Community, Document Repository at https://nen.nasa.gov/web/pm/evm. 

Use of the Agency EVMS will ensure projects meet their EVM requirements. Project Plans 

should include their EVM implementation approach, milestones and use. See Appendix J of this 

handbook for more information.

1.2 Policy and Requirements for the Application of EVM

EVM is a project management process that effectively integrates the project scope of work with 

cost, schedule, and performance elements for optimum project planning and control. The goal is 

to achieve timely and accurate quantification of progress that will facilitate management by 

exception and allow early visibility into the nature and the magnitude of problems as well as the 

intended course and success of corrective actions.

NASA EVM requirements are found in NASA Procedural Requirements (NPR) 7120.5, NASA 

Program and Project Management Processes and Requirements, NPR 7120.7, NASA 

Information Technology and Institutional Infrastructure Program and Project Management 

Requirements, and NPR 7120.8, NASA Research and Technology Program and Project 

Management Requirements. Policy for contracts is contained in NASA NFS 1834.201. NASA 

procedural requirements require projects that meet the criteria for applying EVM to use an 

EVMS that complies with the guidelines in the ANSI/EIA-748 standard for EVMS. The EVMS

guidelines are shown in Figure I-1, Appendix I, of this handbook. An overview of the NASA 

EVM requirements criteria is provided below (Figure 1-1).
NASA EVM Implementation Handbook Page 1-2

Figure 1-1 NASA EVM Requirements

EVM implementation begins with planning during early Formulation (Phases A and B). Projects 

in phases C and D with a life cycle cost estimated to be $20 million or greater and programs at 

the discretion of the Mission Directorate Associate Administrator (MDAA) perform EVM. EVM 

is also applied when modifications, enhancements, or upgrades are made during Phase E when 

the estimated development cost is $20 million or more. Each applicable project uses an EVMS

that complies with the guidelines in ANSI/EIA-748 and the system is described in the Project 

Plan. Figure 1-2 shows the relationship between the EVM requirements and the NASA project 

life cycle phases, key events/reviews, and significant activities during each phase. Specific 

information on the EVM product/process maturity by phase is provided in Appendix H, section

2-3, The EVM Capability Maturity Model (CMM).

Figure 1-2 NASA Project Life Cycle Relationships and EVM Application

Formulation Implementation

Pre-Phase A: 

Concept Studies

Phase A: 

Concept & 

Technology 

Development

Phase B: 

Preliminary 

Design & 

Technology 

Completion

Phase C: 

Final Design 

& Fabrication

Phase D: 

System Assembly, 

Integration & 

Test, Launch & 

Checkout

Phase E: 

Operations & 

Sustainment

Phase F: 

Closeout

PreFormulation

Approval Approval

A Formulation 

Authorization 

Document (FAD)

Formulation 

Agreement (FA)

Draft Project 

Requirements (Initial 

Project WBS and Life 

Cycle Cost Estimate, 

etc.) 

B

System Definition 

Review (SDR) 

Preliminary 

Project Plan (with 

EVM approach)

Contractor Integrated 

Baseline Review (IBR) 

(as required)

WBS and WBS 

Dictionary

C

Initial Performance 

Measurement Baseline 

(PMB)

Pre-approval IBR

Contractor IBRs (as 

required)

Preliminary Design 

Review (PDR)

Baseline Project

Plan

D Monthly EVM 

Reporting

IBRs as required

Critical Design Review 

(CDR)

Production Readiness 

Review (PRR)

System Integration 

Review (SIR)

E Monthly EVM 

Reporting

IBRs as required

Operational 

Readiness Review (ORR)

Flight Readiness Review 

(FRR)

Post-Launch Assessment 

Review (PLAR)

End of Mission F

Decommissioning 

Review (DR)

Final Archival

of Data

Disposal Readiness 

Review (DRR)

EVM Required on Projects/Contracts ≥ $20M
NASA EVM Implementation Handbook Page 1-3

Projects should use the NASA EVM Systems Description, and document and coordinate with 

their respective Center EVMFP project-specific tailoring when developing their EVM 

Implementation Plans. Each project flows down EVMS requirements to its applicable suppliers 

(intra-agency organizations and contractors). See Appendix B and Appendix C of this handbook

for the EVMS scope, solicitation and contract clauses. 

The project’s preliminary Performance Measurement Baseline (PMB) is established in Phase B 

in preparation for Key Decision Point (KDP) C approval and the Integrated Baseline Review 

(IBR) process. A pre-approval IBR is conducted by the Mission Directorates as part of their 

preparations for KDP C to ensure the project’s work is properly linked with its cost, schedule 

and risk and the systems are in place to conduct project level EVM. Within 180 calendar days 

after KDP C, the project customer (e.g., Program Manager) may conduct an IBR to gain a deeper

understanding of the cost, schedule, technical risks of the final PMB implementation and 

management processes. See section 4.4 of this handbook for more information. 

EVM is required on all acquisitions for development designated as major in accordance with 

OMB Circular A-11 and the Capital Programming Guide, and for development or production 

projects/contracts and subcontracts, including those for flight and ground systems, and 

institutional requirements (facility, information technology, investment, etc.) valued at or greater 

than $20 million regardless of the system acquisition phase. The primary considerations for 

EVM applicability is the nature of the work and associated risks, and the value of the effort. 

In the EVM context, there are two basic classifications of the nature of work—discrete and level 

of effort (LOE). Discrete work is related to the completion of specific end products or services 

and can be directly planned, scheduled, and measured. LOE is effort of a general or supportive 

nature that does not produce definite end products. The application of EVM on projects and/or 

contracts that are exclusively LOE in nature may be impractical and inefficient and therefore is 

discouraged. Additionally, EVM is not required or recommended for firm fixed price contracts.

For these contracts, the Project Manager should implement an alternative method of management 

control to provide advanced warning of potential performance problems. See section 3 for 

recommended approaches.

The NASA EVM requirements to include reporting are summarized for easy reference at 

Appendix A of this handbook. 
NASA EVM Implementation Handbook Page 2-1

2 ROLES AND RESPONSIBILITIES

2.1 Introduction

This section provides a brief description of the responsibilities typically assigned to project 

organizational roles involved with EVM implementation and maintenance. It should be 

recognized that the role definitions contained within this document do not contain a complete or 

detailed job description for each of the roles addressed. Depending on the size of the project, 

some roles may be combined and served by a single individual or may not be required, e.g., work 

package manager or task manager. EVM related institutional roles and responsibilities are also 

included. 

2.2 Project Manager

The Project Manager has overall responsibility and accountability for the project’s cost, 

schedule, and technical performance as designated by applicable policy, requirements, and 

authorizing documents. These responsibilities include but are not limited to the following

functions:

 During early project formulation, establish the organization and key structures to facilitate 

effective EVM implementation and usage (e.g., Project Work Breakdown Structure [WBS], 

Organization Breakdown Structure [OBS], Responsibility Assignment Matrix [RAM], 

control accounts, etc.). See the NASA EVM Systems Description for more detailed 

instruction.

 Ensure that EVM requirements are included in each Request for Proposal (RFP) or 

Announcement of Opportunity and the responses are evaluated for compliance with these 

requirements. The response should include documentation that adequately defines the 

offeror’s process for satisfying the EVM requirements. 

 Coordinate with and obtain concurrence from the respective Center EVM Focal Point 

(EVMFP) throughout the RFP development and proposal evaluation process.

 Coordinate with and obtain concurrence from the respective Center EVMFP throughout the 

development of project plans regarding implementation, maintenance, surveillance, and 

reviews of the project’s EVMS.

 Stipulate EVM data requirements for project and contract reporting, including formats and 

tools. NASA has made tools such as wInsightTM available for use in conducting EVM data 

analysis and reporting. See the NASA EVM website for instructions on how to request 

access to such tools along with support in setting up your project or contract.

 If applicable, submit a waiver request for the project and/or contract’s EVM requirements 

and include justification and rationale for the request. The waiver should be submitted to the 

NASA OCE per the NPR 7120.5 waiver process. Approved waivers will be documented in 

the Project Plan. See section 4.8 for instructions on minimum waiver requirements for inhouse EVM.

 Provide budget and staffing forecasts to functional managers to ensure availability of future 

resources.

 Approve control account documentation such as work authorization documents (WADs), 

baseline change requests, estimates at completion (EACs), etc., for in-house EVM 

implementation as appropriate.
NASA EVM Implementation Handbook Page 2-2

 Hold project personnel accountable for effective EVM implementation by incorporating 

appropriate standards in their performance evaluation plans.

2.3 EVM Focal Point

In addition to the NASA EVMFP within the OCE, each Mission Directorate and center, 

including the Jet Propulsion Laboratory (JPL), should designate a representative as its EVMFP. 

A list of NASA EVMFPs can be found on the NASA EVM website 

(http://evm.nasa.gov/council.html). The responsibilities of an EVMFP should include but not be 

limited to the following functions:

 Serve as a representative on the Agency EVM Working Group (EVMWG).

 Serve as the Mission Directorate and center EVM consultant and advisor to programs and 

projects in the implementation, application, and use of EVM.

 Serve as the Mission Directorate and center EVM representative in developing Agency EVM 

policies, requirements, and guidance.

 Serve as the Mission Directorate and center EVM consultant in developing Mission 

Directorate and center EVM policies, requirements, and guidance that are consistent with 

overall Agency requirements and policies.

 Assist all appropriate offices in the development, review, and approval of NASA training 

materials related to EVM.

 Assist the project EVM Analyst in preparing the Project EVM Implementation Plan (see 

Appendix J for additional instructions).

 Assist the Contracting Officer and the project management staff, where NASA policy 

requires the application of EVMS on a NASA contract, to ensure the inclusion of EVMS

solicitation provisions in the RFP and the use of EVMS contract clauses and applicable Data 

Requirements Descriptions (DRDs).

 Serve as a consultant to the Source Evaluation Board (SEB) for evaluating the EVM aspects 

of contractor proposals.

 Assist the project in conducting EVM compliance reviews, surveillance, and IBRs.

 Prepare and submit EVM metric reports regarding EVM implementation and compliance to 

the OCE as required.

 Analyze performance data and prepare and submit independent EACs as required.

 Acquire resources as necessary to support the center’s EVM implementation activities.

2.4 Business Manager

Each project with EVM requirements should designate a Business Manager to assist the Project 

Manager in the effective implementation and use of EVM on the project. The responsibilities of 

the Business Manager should include but not be limited to the following functions:

 Provide supervision of the Resource Analyst functions within a project.

 Provide supervision of the Planner/Scheduler functions within a project.

 Provide supervision of the EVM analyst functions within a project.

 Ensure integration between the schedule and budget data.

 Assist the Project Manager in managing and reporting project budget, cost, schedule, and 

performance data.
NASA EVM Implementation Handbook Page 2-3

 Assist the Project Manager in establishing and maintaining project cost and schedule baseline 

documents, WADs, and project budget logs.

 Submit approved monthly CPRs to sponsoring organizations and senior management.

2.5 Earned Value Management Analyst

Each project with EVM requirements should designate an EVM Analyst. The responsibilities of 

the EVM Analyst should include but not be limited to the functions described below. Note that 

the individual with these functions may have a different job title such as Resource Analyst.

These functions should be assigned to an individual regardless of title.

 Develop the EVM Implementation Plan for the Project Plan (see Appendix J for additional 

instructions).

 Assist the Project Manager and the Contracting Officer, where NASA policy requires the 

application of EVM on a NASA contract, to ensure the inclusion of EVM solicitation 

provisions to include applicable DRDs in the RFP and the use of EVM contract clauses.

 Serve on the Source Evaluation Board (SEB) for evaluating the EVM aspects of contractor 

proposals.

 Facilitate project-related IBRs to include project manager–led IBRs on contracts/agreements

with EVM.

 Assist project team in obtaining EVM training.

 Facilitate/participate in Defense Contract Management Agency (DCMA) or NASA led 

contractor EVMS validation reviews and surveillance, as required.

 Facilitate the EVMS implementation, training, and tools; maintain the project budget logs; 

provide control account documentation to P-CAMs; prepare the Project CPR.

 Assist P-CAMs in establishing and maintaining their control account plans and performance 

analysis.

 Perform data validity checks on monthly EVM in-house and contractor reporting to assess 

reliability of EVM data. Identify issues and monitor for satisfactory resolution.

 Analyze performance data and prepare EACs as required. Assist the Project Manager and 

Business Manager with the annual comprehensive EAC to support the Program, Planning, 

Budgeting and Execution (PPBE) process.

 Participate in regular project risk meetings to ensure that risks are captured in the estimate at 

completion (EAC) and schedules, and to assess the adequacy of the management reserve. 

 Change control boards to ensure that changes are incorporated into the PMB and EACs in a 

timely manner. 

2.6 Resource Analyst

Each project with EVM requirements should designate a Resource Analyst. The responsibilities 

of the Resource Analyst should include but not be limited to the following functions:

 Assist in budget development and planning, resource planning, updating financial forecasts, 

and processing baseline change requests.

 Assist P-CAMs during planning to ensure budgets are planned in the same resource category 

that actual costs are expected.

 Assist responsible managers in verifying that actual cost data are applied to the correct 

charge numbers.
NASA EVM Implementation Handbook Page 2-4

 Assist in the preparation and analysis of financial and performance reporting and input to the 

PPBE process.

2.7 Planner/Scheduler

Each project with EVM requirements should designate a Planner/Scheduler. The responsibilities 

of the Planner/Scheduler should include but not be limited to the following functions:

 Assist responsible managers in developing schedules, including cost integration.

 Maintain existing schedules by updating progress, performance, and other data as required to 

reflect both the current plan and the approved baseline.

 Ensure horizontal and vertical schedule integration.

 Assess schedule integrity and data validity of the IMS monthly using best practices and tools 

that include, but are not limited to, the NASA Schedule Test and Assessment Tool (STAT), 

and the DCMA 14-Point Schedule Assessment. Identify issues; monitor to ensure 

satisfactory resolution.

 Assist in the preparation and analysis of cost, performance, and schedule reporting.

2.8 Functional Manager 

The Functional Manager is an individual responsible for the administration of a group of people 

with a specific skill set. Typical responsibilities for a Functional Manager include but are not 

limited to the following:

 Manage the allocation of a group of skilled resources across multiple projects or efforts in 

order to meet multiple priorities.

 Assist personnel in their professional advancement along their chosen career path by 

coordinating training and job assignments.

 Broker agreements with project management to engage the skilled resources necessary for 

project efforts in the time frame required.

 Ensure that core competencies and capabilities are established and maintained in the 

responsible functional area for future projects and efforts.

2.9 Integrated Product Team 

An Integrated Product Team (IPT) is a group of individuals within a project organization that 

have differing skills but are assigned work responsibilities for the same product or service. The 

IPT Lead has overall responsibility for the cost, schedule, and technical performance of the 

specific IPT product or service as assigned by the Project Manager and applicable policy, 

requirements, and authorizing documents.

2.10 Project Control Account Manager

The Project Control Account Manager (P-CAM) shall have overall responsibility for the cost, 

schedule, and technical performance of a scope of work represented by a WAD for a control 

account, subordinate to the Project Manager and applicable policy, requirements, and authorizing 

documents. See the NASA EVM Systems Description and the NASA Project Control Account 

Manager Handbook for more explanation.
NASA EVM Implementation Handbook Page 2-5

2.11 Work Package Manager

The Work Package Manager has overall responsibility (as delegated) for the cost, schedule, and 

technical performance of a scope of work represented by a work package as assigned by the 

P-CAM and applicable policy, requirements, and authorizing documents.

2.12 Task Manager

The Task Manager has overall responsibility (as delegated) for the cost, schedule, and technical 

performance of a scope of work represented by a task as assigned by the Work Package Manager 

and applicable policy, requirements, and authorizing documents.
NASA EVM Implementation Handbook Page 3-1

3 EVM IMPLEMENTATION ON NASA CONTRACTS

3.1 Overview

Throughout the contract planning and acquisition process, the Project Manager (or his/her 

designee) should coordinate with the Center EVMFP for assistance in defining the appropriate 

EVM requirements for each contract and to facilitate effective EVM implementation after 

contract award. This section addresses the key activities involved in effective contract planning 

and execution. Keep in mind that EVM application to contracts is based on the value, contract 

type and nature of the work - not on the program/project phase. 

3.2 Activities before Contract Award

The Project Manager initiates contact with the Center EVMFP to define EVM requirements early 

in the planning and development of the Request for Proposal (RFP). By applying in-depth 

knowledge of the project and the proposed contract, the Project Manager and EVMFP can select 

the best approach to implementing EVM and reporting requirements on the particular contract.

Information unique to the program/project can affect the type and level of EVM requirements 

included in the RFP and later invoked on the contract. Understanding the project and its 

associated risks, allows greater insight into tailoring EVM requirements. The NASA EVM 

Contract Requirements Checklist, located on the NASA EVM website, is a tool that the project 

team can use to ensure the EVM requirements are properly applied.

The EVMFP provides guidance before contract award to ensure that the RFP and the awarded 

contract contain the appropriate EVM-related clauses and reporting requirements. Historically, 

many problems occurring during EVM implementation are directly related to inadequate

definition of EVM requirements in the RFP.

The Project Manager should ensure that the project personnel receive the appropriate training 

such as EVM, IBR, etc. The Center EVMFP can assist with this requirement.

3.2.1 Determine Contract Type

The contract type is a key element in determining EVM requirements. Contract types fall into 

two basic categories: Cost Reimbursable or Fixed Price. Different variations of each of these two 

basic types exist. The particular contract structure should reflect the degree of risk assumed by 

the government. Definitions of common variations follow. Additional guidance can be found in 

FAR Part 16.

 Firm Fixed Price (FFP): The contract stipulates a fixed amount of compensation regardless of 

the actual cost (i.e., regardless of whether the contractor has experienced a cost overrun or a 

cost underrun). This contract is the lowest risk instrument for the contracting entity.

 Fixed Price Incentive Fee (FPIF): The contract stipulates a target cost, target fee, and a share 

ratio associated with any underrun or overrun to the target cost. The share ratio establishes 

percentages that NASA and the contractor will share in the underrun or overrun. The contract 

will define the maximum and minimum fee.

 Cost Plus Incentive Fee (CPIF): The contract allows cost reimbursement for all in-scope 

effort. The fee determination is similar to FPIF contracts but there is no ceiling price. The 

incentive fee may be based on cost, technical performance, or both.

 Cost Plus Award Fee (CPAF): The contract allows cost reimbursement for all in-scope effort.

The award fee is used as an incentive to the contractor to perform to a predetermined set of 
NASA EVM Implementation Handbook Page 3-2

criteria. An Award Fee Plan identifies the evaluation periods, the available award fee pool of 

dollars by period, and the award fee criteria to be used in evaluating the contractor’s 

performance.

 Cost Plus Fixed Fee (CPFF): The contract allows cost reimbursement for all in-scope effort.

The contractor fee is fixed. The contractor is guaranteed that fee regardless of an underrun or 

overrun. This contract is the highest risk instrument for the contracting entity.

Since many NASA projects use CPAF contracts, the application of EVM in the award fee criteria 

is a valuable tool to promote good project management. However, the use of a single EVM 

indicator, such as the Cost Performance Index (CPI), is not recommended. A single indicator is 

not always a true indicator of performance when considered out of context. Careful consideration 

should be given to choosing multiple indicators that are relatively easy to measure yet not easily 

distorted. 

A recommended approach for EVM award fee criteria is to use qualitative measures such as: the 

contractor shall maintain a current and realistic EAC; the contractor shall provide effective and 

updated variance analysis; risk management is used in cost control; integration of subcontractor 

performance into the performance measurement baseline is current and accurate; and EVM is 

effectively integrated and used for project management. 

Project Managers are also discouraged from tying an award fee to an IBR event, especially the 

initial IBR. A lesson learned from other NASA projects has shown that this can result in a hastily 

contrived, inaccurate, and inadequate ―baseline,‖ eventually leading to significant replanning. It 

may encourage the contractor to minimize the IBR event, be less forthcoming with data, and 

hold the event even if the contractor is not fully ready from a baseline perspective. An acceptable 

alternative would be specifying an award fee criterion such as, ―Contractor must maintain a 

realistic and adequate baseline, and have it available for review by the government upon 

request.‖

3.2.2 Establish EVM Implementation Requirements

The NASA Far Supplement (NFS) solicitation provisions and contract clauses should be used to 

provide notification of NASA’s intent to implement EVM on contracts. NFS Parts 1834 and 

1852 provide the respective NFS solicitation provisions and contract clauses required for the 

implementation of EVM on contracts. These provisions and clauses establish the requirements 

for contractors to propose an EVMS that is or will be validated by the government as being 

compliant with the ANSI/EIA-748 guidelines. If a prospective contractor proposes to use an 

EVMS that has not been validated by the government, then the contractor is required to submit a 

plan for validation in accordance with NFS 1834.2 and 1852.234-1 and 1852.234-2. A contractor 

that has an EVMS validated by the government will normally propose to use this system. If so, 

the contractors will submit documented proof of their EVMS validation in accordance with the 

contract EVMS clause.

3.2.3 Specify EVM Reporting Requirements

The required contract reporting requirements are specified in Table A-1 (Appendix A, NASA 

EVM Requirements Summary). Contract reporting requirements are defined in specific DRDs 

included in the solicitation and contract. The standard CPR and the Reporting for Contracts with 

no EVM Requirement Guide are provided in Appendix D and Appendix E respectively. The 

EVMFP will work with the Project Manager or the Contracting Officer to ensure the DRDs are 
NASA EVM Implementation Handbook Page 3-3

included and tailored as necessitated by the complexity of the contract and project management

reporting requirements. Suggested tailoring instructions are included as notations to each sample 

DRD. 

The CPR is the primary report the government uses for obtaining earned value data. The CPR 

requirement should be added as a DRD for all contracts that have an EVM requirement. In 

accordance with the NFS1834.2, the appropriate solicitation provisions and contract clauses are 

to be used to implement EVM and CPR reporting on these contracts. 

The CPR is used by the contractor to provide NASA with monthly cost, schedule, and technical 

performance information. The CPR has five formats:

 Format 1 provides EVM data by WBS element

 Format 2 provides EVM data by functional or organizational element (Organization 

Breakdown Structure [OBS])

 Format 3 provides the time-phased PMB changes 

 Format 4 provides staffing of human resources requirements

 Format 5 is the Explanations and Problem Analysis Report

The contract CPR DRD provides guidance for the preparation and submission of the CPR, 

required formats, variance analysis thresholds, reporting frequency, reporting levels, distribution, 

and specific project instructions if required. The Data Item Description, DI-MGMT-81466A, 

―Contract Performance Report,‖ is a useful guide for the development and tailoring of the DRD 

for the CPR. All five CPR formats are required for qualifying contracts $50 million or greater.

CPR formats 1, 3, and 5 are required, as a minimum, for contracts less than $50 million but 

greater than $20 million. The DI-MGMT-81466A and CPR Formats (1-5) can be found on the 

NASA EVM website, http://evm.nasa.gov/reports.html. 

3.2.4 Create a Work Breakdown Structure 

The project Work Breakdown Structure (WBS) provides the structure for technical planning, 

scheduling, cost estimating and budgeting, contract scope definition, work authorization, product 

development, status reporting and assessment. In other words, the WBS provides the framework 

for implementing EVM. The WBS should be a product-oriented hierarchical division of the 

hardware, software, services, and data required to produce the required deliverables. The WBS 

should also be consistent with current NASA requirements in NPR 7120.5, 7120.7 and 7120.8.

An example of a contract DRD for the WBS and WBS dictionary is provided in the NASA WBS 

Handbook located on the NASA EVM website, http://evm.nasa.gov/handbooks.html.

Normally, during the RFP stage, the solicitation will provide a contract WBS down to level 

three. The contractor will use this contract WBS and extend it to the appropriate management 

level. The contractor may also propose changes to the contract WBS. The NASA WBS 

Handbook provides recommended methods and best practices for developing the project and 

contract WBS.

3.2.5 Determine Schedule Requirements

The RFP should include language that requires a logic network schedule and defines the logic 

network schedule requirements. These requirements should be consistent with NPR 7120.5 and 

satisfy the scheduling ―best practices‖ included in the NASA Schedule Management Handbook

located on the NASA EVM website, http://evm.nasa.gov/handbooks.html. Requirements should 
NASA EVM Implementation Handbook Page 3-4

ensure the establishment, management, and control of the baseline master schedule and its 

derivative schedules. These requirements help ensure establishment of a valid framework for 

time phasing budgets and coordination of efforts into a master plan that also enables the 

measurement of accomplishments. A sample DRD for scheduling is included in the NASA 

Schedule Management Handbook, which provides recommended methods and best practices for 

the development and maintenance of the IMS. 

3.2.6 Include Integrated Baseline Review Requirements

Including the contract clause, 1852.234-2 Earned Value Management System, in the solicitation 

and contract notifies contractors that an IBR will be conducted. Providing additional information 

in the contract will ensure understanding of requirements and provide an opportunity for 

clarifications. Include this information in a contract statement of work or a performance work 

statement. The statement of work should require the contractor to demonstrate with evidence and 

to show all appropriate documentation to support proof of an executable baseline and direct 

contractors to NASA’s IBR Handbook on the NASA EVM website

(http://evm.nasa.gov/handbooks.html) for guidance.

3.2.7 Include Management Review Requirements

Management reviews are typically held on a regular basis and involve government team 

members and contractors reviewing the work status. Guidance should be included in the contract 

statement of work or performance work statement to describe the role and content of EVM in 

these reviews. The review includes such topics as cost, schedule, and technical performance. It 

should also include a quantified risk assessment with impacts and provide a means of identifying 

action items and ensuring that they are completed. As each manager presents, they should 

integrate the EVM data into the presentations to give an overall picture of cost, schedule, and 

technical performance.

3.2.8 Specify EVM Links to Risk Management 

Effective EVM includes an integrated risk management process. Early planning during the RFP 

stage should include consideration in schedule and cost estimates for reasonable risks.

Recognized risks that are not quantifiable should be considered when developing management 

reserve (MR) or unallocated future expense (UFE). As the project advances in the life cycle, 

linkage between the risks (recorded in the risk system) and project scope (reflected in the 

schedule and budget) are necessary to properly manage. The nature of this linkage should be 

defined during the early planning stages of RFP development.

3.2.9 Participate in the Source Evaluation Board 

During the Source Evaluation Board (SEB) process, the Center EVMFP or EVM Analyst 

establishes DRDs and requirements and evaluates the offeror’s responses. For example, in 

accordance with NFS EVMS Clause 1852.234-1, the offeror shall provide documentation that its 

proposed EVMS complies with the EVMS guidelines in the ANSI/EIA-748 Standard for Earned 

Value Management Systems. If the offeror proposes to use a system that currently does not meet 

the requirements, the offeror shall submit its comprehensive plan for compliance with the EVMS 

guidelines to the government for approval. An EVMS expert must review these systems and 

plans for adequacy and recommend any changes to the selection board.
NASA EVM Implementation Handbook Page 3-5

3.3 Activities after Contract Award

This section describes the EVMS compliance, validation, and maintenance following contract 

award for any contract requiring EVMS application.

3.3.1 Gain Access to EVM Tools

The Project Manager should request assistance from the applicable EVMFP to identify 

appropriate EVM analytical methodologies and tools for project use. NASA provides wInsightTM 

as an EVM analysis and reporting tool for use by all NASA projects. To gain access, follow the 

instructions on the NASA EVM website. Additionally, NASA has developed the Schedule Test 

and Assessment Tool (STAT), which is compatible with MS Project. STAT consists of several 

applications to include the Schedule Health Check Tool, the Schedule Performance Work-off 

Trend, and the Summary Assessment Summary Report (SASR) and considers applicable GAO 

and DCMA best practices. Instructions for acquiring access to this tool are also available on the 

NASA EVM website (http://evm.nasa.gov/handbooks.html).

3.3.2 Conduct EVMS Validation

Development or production contracts of $50 million or greater require a validated EVMS by the 

government. NASA has a Memorandum of Understanding (MOU) with DCMA that delegates 

responsibility for validation and surveillance of contractor EVMSs to the DCMA (NASA Form 

1430A). The DCMA will review the contractor’s plan for validation and provide NASA with a 

report regarding the plan’s adequacy for the intended contract. When validation is necessary, the 

contractor is responsible for scheduling related reviews with the DCMA and NASA customer.

The National Defense Industry Association’s (NDIA) EVMS Intent Guide and the NDIA EVMS 

Acceptance Guide

(http://www.ndia.org/Divisions/Divisions/Procurement/Pages/Program_Management_Systems_

Committee.aspx) provide additional information on these reviews. NASA and the Project 

Manager will provide specialists to augment the DCMA team as appropriate to accomplish these 

reviews. If a contract is awarded to a contractor and DCMA is not involved, then it is the 

responsibility of the NASA Project Manager, with the assistance of the EVMFP, to ensure the 

contractor conducts a validation review with an EVM authority appointed by the OCE to provide 

validation. See Appendix G of this handbook for more information.

Contracts $50 million or less but $20 million or greater are not required to have a formally 

validated EVMS. While no validation is required, the contractor is expected to comply with the 

requirements listed in ANSI/EIA-748. The government (NASA Project Manager with assistance 

from the EVMFP) will evaluate the offeror’s proposed EVM approach in the source selection 

evaluation process and determine/confirm compliance with the ANSI/EIA-748 guidelines and 

perform to ensure continued compliance during the course of the contract (see section 3.3.5). 

3.3.3 Extend the Contract WBS

Extension of the Contract WBS (CWBS) will be done by the contractor after contract award to 

reflect the division of lower level products and services and to describe how these contribute to the 

higher level products and services. The reporting of progress, performance, risks, and engineering 

evaluations, as well as financial data and variance analyses are based on the CWBS. For assistance 

in understanding the appropriate extension of the CWBS, refer to the NASA WBS Handbook 

(http://evm.nasa.gov/handbooks.html).
NASA EVM Implementation Handbook Page 3-6

3.3.4 Conduct Integrated Baseline Review 

All contracts with EVM are required to have an Integrated Baseline Review (IBR) to finalize the 

agreement on the baseline and ensure all risks are identified and understood. The Project 

Manager and his responsible technical managers, with the support of the EVMFP, should 

conduct an IBR within 180 calendar days of contract award as required by NFS 1852.234-2(c).

This timeline applies to the authority to proceed on letter contract awards as well. The project 

phase is not a consideration. An IBR must also be conducted within 180 calendar days following 

the exercise of significant contract options or 60 days after a major contract modification. The 

NASA IBR Handbook (http://evm.nasa.gov/handbooks.html) provides further guidance on the 

IBR process.

The Project Manager should ensure that training is available to each team member prior to the 

IBR. Such training may be conducted jointly with the contractor and should consist of the basics 

of EVM and the IBR process. The Project Manager should conduct a workshop just prior to the 

IBR to cover the mechanics of the review and examples of specific items to be reviewed.

The objective of an IBR is for all stakeholders to jointly assess the baseline to be used for 

performance measurement to ensure complete coverage of the statement of work, logical 

scheduling of the work activities, adequate resourcing, and identification of inherent risks. This 

will be accomplished by evaluating the PMB to ensure it captures the entire technical scope of 

work, is consistent with schedule requirements, has adequate resources assigned, and has sound 

management processes applied. To facilitate the credibility assessment of the IMS, the Project 

Manager’s schedule team may use the Agency-developed STAT.

3.3.5 Implement Contractor EVMS Surveillance

EVMS surveillance is conducted by the responsible DCMA office, with the assistance of NASA 

project personnel as assigned by the Project Manager, in accordance with the MOU between 

NASA and the DCMA. The MOU covers EVMS surveillance at a contractor site or multiple 

contractor sites. The MOU scope includes EVMS compliance assessment, validation, and/or 

evaluation of a contractor’s previously validated EVMS for adequacy. The MOU also describes 

duties, responsibilities, products, and methods of cooperation for contract-specific EVMS 

surveillance.

The Project Manager may delegate all, part, or none of the items described in the MOU via 

NASA Form 1430A. A letter of delegation from the Contracting Officer to the cognizant DCMA 

office is required to implement the surveillance, products, and services provided for within the 

MOU. The letter of delegation must define the specific delegation of responsibilities and the 

specific products and services to be provided. A simple delegation request to implement the 

MOU is not sufficient. 

It is the responsibility of the Contracting Officer and Project Manager to provide feedback and 

guidance to the DCMA office if the services provided by the DCMA are not appropriate for the 

project’s needs. If changes are needed to the DCMA services being provided, the Project 

Manager should formally document such requests. If delegation to the DCMA is not 

implemented or is withdrawn, the Project Manager should provide for the required surveillance 

through alternative sources and ensure that resources (e.g., project resources and Center

EVMFP) are available and appropriate for this purpose. See Appendix H, EVMS Surveillance 

Process, of this handbook for additional information.
NASA EVM Implementation Handbook Page 3-7

When a delegation is issued, the EVMFP should be notified if any EVMS issues arise. The 

EVMFP should remain proactive in working with all organizations, including the DCMA, to 

resolve EVMS issues at contractor facilities with NASA contracts. However, the Project 

Manager remains responsible for the specific project.

3.3.6 Conduct EVM Analysis 

A CPR is required when EVM is a requirement. CPR data should be reported in a timely manner 

per the contractual DRD. CPR data should also be consistent and reconcilable with both the 

Monthly Contractor Financial Management Report (NASA Form 533M) and the Quarterly 

Contractor Financial Management Report (NASA Form 533Q) if applicable. NPD 9501.1, 

NASA Contractor Financial Management Reporting System, states NASA policy and provides 

additional information and guidance on this topic.

The first step in the analysis process is to assess the validity of the reported EVM data 

(contractor CPRs) to ensure that the data are complete, accurate and all data anomalies are 

explained in the CPR Format 5. Data errors/anomalies not explained should be documented and 

provided to the contractor for resolution with explanation in the next month’s CPR. However, 

numerous/severe errors may result in the rejection of the CPR and resubmission of a corrected 

CPR. These types of data problems should be rare if an effective surveillance process exists. 

NASA has developed a data validity report that can be executed in wInsightTM to facilitate the 

analysis process. Access and instructions are located on the NEN at 

https://nen.nasa.gov/web/pm/evm or by contacting your Center EVMFP.

EVM data should be included in all management reviews. Project status based on EVM data 

should be reported at the level appropriate for all levels of management and utilized for insight and 

management actions. The Project Manager should understand and emphasize the importance of the 

integrated technical, schedule, cost, and risk analyses provided by EVM in conjunction with other 

project information to formulate an overall project status. Concentrating on the technical aspects or 

technical problems of the project alone will not provide for true integrated project management.

The associated schedule implications, cost drivers, and corresponding risks should be considered.

Analysis is required when any of the previously established variance thresholds are exceeded.

Focusing first on these problem areas is an efficient and effective management technique. The 

analysis for each variance that exceeds a threshold should address three areas:

 Root cause: Simply stating the variance is not identifying the root cause. A simple way to 

determine root cause is to ask the question, ―why?‖ until it no longer makes sense to do so.

Another test for root cause determination is to quantify the root cause or causes as related to 

rates, usage, efficiency, or a combination of these.

 Impact: A root cause will create an impact on the element(s) and should also be evaluated for 

the impact on the rest of the project in terms of cost, schedule, technical, or a combination of 

these areas. Both impact on the element and impact to the project should be distinctly stated 

and quantified.

 Corrective actions and results: For each impact area, a correction action or recovery plan 

should be formulated. This plan should contain a description of the actions taken and the 

anticipated results in terms of the impacted area or areas, including time, cost, and technical 

components. If recovery is not possible, this should be clearly stated. As long as this variance 

exceeds the reporting threshold, each subsequent report should include the actual results of 

implementing corrective actions.
NASA EVM Implementation Handbook Page 3-8

It is also a recommended practice for the P-CAM to routinely use the aforementioned 

methodology to analyze control accounts for potential problems that have not yet exceeded a 

variance threshold.

The steps described above are intended to assist the project staff in understanding some of the 

monthly activities surrounding the EVM analysis process. The level of analysis activity is 

dependent upon many variables: the stage of the project, the value of the WBS, the contractor's 

performance, analyst availability and experience, the type of contract, and the EVM analysis 

tools available. All of these affect the project’s capability to perform a detailed analysis. The 

Project Manager should understand the analysis requirements and arrange for the necessary 

support to ensure the adequacy of the EVM analysis process. An example of an EVM status 

report is shown in Appendix F of this handbook. See the NASA EVM Systems Description, for a 

more in-depth discussion of EVM analysis methods and techniques.

3.3.7 Participate in Project Activities

The project’s EVM analyst plays a key role on the team, participating in various meetings and 

activities depending on the project. It is important that the EVM analyst be involved in several key 

activities to ensure that the project management team has accurate information available to make 

informed decisions about the project. The Project Manager should ensure EVM analyst participation

in project activities that include but are not limited to:

 Regular project risk meetings to ensure that risks are captured in the estimate at completion 

(EAC) and schedules, and to assess the adequacy of the management reserve.

 Change control boards to ensure that changes are incorporated into the PMB and EACs in a 

timely manner.

 PPBE process by supplying data to support monthly funds analysis and requirements 

planning.
NASA EVM Implementation Handbook Page 4-1

4 EVM IMPLEMENTATION ON NASA PROJECTS

4.1 Overview

The OCE has developed an Agency-wide EVM capability that enables NASA organizations to 

achieve the NASA and OMB requirements for compliance with the ANSI/EIA-748 standard. 

EVM is required at the project level where the project effort could be performed as a single

contract, or in-house or a combination of both. Figure 4-1 provides an overview of the NASA 

EVMS architecture.

Projects should use the Agency EVMS to meet their EVM requirements. Project Plans should 

include the project’s EVM implementation approach and use. See Appendix J for additional 

instruction on format and content of the EVM Implementation Plan. Project Managers should 

engage their Center EVMFP for assistance in developing, documenting, and implementing the 

NASA EVM Systems Description on their projects. With the exception of establishing the 

EVMS process described in section 4.2, the activities required of Project Managers for in-house 

Figure 4-1. Overall EVMS Architecture for In-house Effort

WBS Number Title

Crew Launch Vehicle Project Project Management Project Mgmt and Administration Business Management Contractor Relationships Technical Reviews

Information Technology Mgmt Adv Planning & Special Studies Vehicle Integration Systems Integration and Control Systems Requirements and Verification

Flight Test Integration

Integrated Design and Analysis Vehicle Integration and Operations Avionics Integration and Vehicle Systems Test S&MA

Science & Technology Payloads Aircraft/Spacecraft Mission Operations System

Launch Vehicle First Stage

136905.08.01.01 Element Management 136905.08.01.02 First Stage Structure & Mech. Systems

136905.08.01.03 Electrical/Instrumentation

136905.08.01.04 SE&I 136905.08.01.05 Operations Support 136905.08.01.06 RSRM (Shuttle Legacy) 136905.08.01.07 Booster (Shuttle Legacy) 136905.08.01.08 First Stage Prime Contractor 136905.08.01.09 Flight Test Upper Stage

136905.08.02.01 Element Management 136905.08.02.02 Integrated Upper Stage

136905.08.02.03 Structures & Thermal Systems

136905.08.02.04 Main Propulsion System (MPS) 136905.08.02.05 Upper Stage Reaction Control System (RCS) 136905.08.02.06 First Stage Reaction Control System (RCS) 136905.08.02.07 Thrust Vector Control (TVC) 136905.08.02.08 Avionics 136905.08.02.09 Flight Software System

136905.08.02.10 Integrated Test Hardware

136905.08.02.11 Logistics

136905.08.02.12 Manufacturing and Assembly

136905.08.02.13 Reserved

136905.08.02.97 Prime Contract Upper Stage Engine

136905.08.03.01 Element Management 136905.08.03.02 Systems Engineering and Integration

136905.08.03.03 RS-25xUS and RS-25 Upper Stage Conversion Kit 136905.08.03.04 RS-25e Engine 136905.08.03.05 Manufacturing Capacity Increase and Optimization

136905.08.03.06 Production and Assembly

136905.08.03.07 Test and Checkout 136905.08.03.97 Prime Contract Ground System(s) Systems Integration and Testing

136905.09

136905.10

136905

136905.01.03

136905.01.02

136905.01.01

136905.01

136905.02

136905.01.06

136905.01.05

136905.01.04

136905.02.06

136905.02.05

136905.02.01

136905.02.02

136905.02.03

136905.02.04

136905.08.03

136905.08.02

136905.08.01

136905.08

136905.07

136905.03

136905.04

136905.05

136905.06

Project WBS

Using Standard Template 

From NPR 7120.5

Project WBS

Dictionary

Project WBS

loaded into MDM System

Project Schedules

With CAs and WPs Identified 

Cost/Sched Integration 

within IMS or in Cost Tool

Project WBS loaded into 

WebTADS, Travel Mgr, Etc.

Actual Cost

from IEMP (ACWP)

IEMP

Scheduled (BCWS) &

Performance (BCWP)

Total Project information

Mgmt Reporting & Data Analysis loaded into wInisght

Contractor supplied

CPR data

Core 

Financial (SAP)

WBS Elements Identified by 

NSM Number Format

Contract Setup Default Project/Contract Dollar Scale - (in Thousands of Dollars k$) Project/Contract Name * Period Ending * e.g, Feb-05 = 0205 Format (mmyy) Calendar Type* Contractor Options Contractor/Center Name * Abbreviation Address 1 Address 2 City Note: If no contractor applicable to project, then enter in the Contractor Name field the

responsible NASA Center or any name associated with your project. Contract Options Contract Number or In-House* Project/Contract Type Program Name Program Number Program Type Manager Name Financial/Contract Analyst Name Program Office Name Negotiated Cost Project/Contract Target Price Target Fee in Dollars Project/Contract Ceiling Amount Project/Contract Start Date * Project/Contract Compl Date* Report Start Date*

Country Code

Proj/Cntr Est. Compl Date

USA

State Postal Code

Approval Name

Project/Contr Budget Base Total Allocated Budget

Submission Date* Major Program* Element Program*

Approval Title

NASA Center* Technical Theme*

Report End Date * EAC - Best Case* EAC - Most Likely* EAC - Worst Case*

After finishing the information above please continue by entering data into each tab below. When finished with all data

entry including, the Future - WBS information you may select the Finish button on the "Finish-Page" tab. Otherwise make all required changes in order to continue successfully.

Business

Warehouse

Define CAs and WPs:

Meaningful Grouping of Work 

Identify the deliverables

How much does it cost?

How long will it take?

136905.8 Crew Launch Vehicle

136905.8.1 1st Stage This element contains all the 1st Stage elements defined below. 136905.8.1.1 1st Stage Element Management This element includes the management and procurement support needed to develop and deliver CLV specific 1st Stage hardware and flight support. 136905.8.1.2 1st Stage SE&I This element includes the engineering and Project support for 1st Stage development and flight support. Included in this element are the requirement definition, specifications, interface definition, verification, and qualification. This element also includes the integrated analysis for structures, loads, thermal environments and development of 1st input to vehicle integrated math models. This element encompasses flight engineering support and engineering support for integrated vehicle testing. This element is envisioned to be primarily the responsibility of the prime contractor with Government support for requirement and specification development. 136905.8.1.3 Aft Assembly This element contains the development and evaluation engineering for the CLV 1st Stage Aft Skirt. It is anticipated that the current Shuttle SRB Aft skirt designs will have to be modified for the CLV separation system, avionics, and possibly TVC modification. It is anticipated that all aft skirt hardware (reusable) will be obtained as required from the Shuttle Program at no cost to CLV. This element includes all the aft skirt hardware, touch labor, and engineering to support any sub-scale testing, static testing, vehicle system testing, and flight tests (flight test engineering included in SE&I). The prime contractor will be responsible for this element. 136905.8.1.4 Forward Adapter 136905.8.1.5 Motor This element contains the development and evaluation engineering for the CLV 1st Stage nozzle. It is anticipated that the current RSRM nozzle design will remain virtually the same. It is anticipated that nozzle metal hardware (reusable) will be obtained as required from the Shuttle Program at no cost to CLV. Although the current Shuttle Program has sponsored an obsolescence program for replacement of the nozzle rayon material (Primary nozzle material), it is anticipated that Shuttle stockpiles of the current material (NARC) are sufficient for the CLV missions. This element includes all the nozzle hardware, touch labor, and engineering to support any sub-scale testing, static testing, vehicle system testing, and flight tests (flight test engineering included in SE&I. The prime contractor will be responsible for this element. This element contains the development and evaluation engineering for the CLV 1st Stage case, seals and joints. It is anticipated that the current RSRM case, seal and joint designs will remain virtually the same. It is anticipated that case metal hardware (reusable) will be obtained as required from the Shuttle 136905.8.1.6 1st Stage GSE & Tooling

This element contains the development and evaluation engineering for the CLV 1st Stage GSE and unique non-recurring tooling. It is anticipated that the current Shuttle GSE and tooling will remain virtually the same and be available to CLV as required from the Shuttle Program at no cost to CLV. This element encompasses any development and manufacturing of new or modified design for GSE or tooling to support 1st Stage. This element includes all the GSE and tooling hardware, touch labor, and engineering to support any sub-scale testing, static testing, vehicle system testing, and flight tests. The prime contractor will be responsible for this element. 136905.8.1.7 Final Assembly Components This element contains the development and evaluation engineering to support the CLV 1st Stage final assembly. This includes assembly of the motor and assembly of the 1st systems (such as aft skirt, systems tunnel, TVC, TPS). It is anticipated that the current Shuttle facilities, GSE, and tooling will remain virtually the same and be available to CLV as required from the Shuttle Program at no cost to CLV. This element includes all the final assembly touch labor and engineering to support any sub-scale testing, static testing, vehicle system testing, and flight tests. The prime contractor will be responsible for this element. 136905.8.1.8 1st Stage Test This element includes the engineering and touch labor for the defined static qualification testing for CLV 1st Stage solid motor testing. No test facility upgrades are anticipated nor included in the planning for this WBS element. The testing defined in the element will occur in conjunction with Shuttle RSRM testing and the schedule of required tests will be negotiated with the Shuttle Program. The prime contractor will be responsible for this element. 136905.8.1.9 Risk Reduction Flight- 1 Integration

This WBS element includes all activities required for Risk Reduction Flight 1 (RRF-1) support to the CLV Project. 136905.8.2 Upper Stage This element contains all the Upper Stage elements defined below. 136905.8.2.1 Upper Stage Project Management This element contains activities required for to manage the cost, schedule, and technical resources, schedule, and risk. 136905.8.2.2 Integrated Upper Stage

Functions associated with the overall upper stage system design engineering, analysis, and integration. This provides the integration between other external launch elements as well as inter-stage subsystem integration. 136905.8.2.3 Structures & Thermal Includes the design, development, integration, test, and verification of all upper stage primary and secondary structural elements required for the upper stage including all thermal functions required due to impacts from external environments as well as internally induced effects and conditioning requirements 136905.8.2.4 Main Propulsion System (MPS)

Includes the design, development, integration, test, and verification of all propulsion elements required to provide propellants to the upper stage engine including fill, feed, repress systems, and actuation and purge systems. 136905.8.2.5 Reaction Control System (RCS)

Includes the design, development, integration, test, and verification of all propulsion elements required to provide attitude control, separation, and settling to the upper stage and includes thrusters, fill, feed, and press systems. 136905.8.2.6 Thrust Vector Control (TVC) System,Hydraulic Power Unit (HPU) & Hydraulics

Includes the design, development, integration, test, and verification of all elements required to provide hydraulic power for engine gimballing and control of the main engine valves for stage GN&C and engine control. 136905.8.2.7 Interstages All elements required for design, development, integration, test and verification for the Interstages hardware which comprise of the Forward Frustum, Interstage, Spacecraft/Payload Adapter, Systems Tunnel and Flight Termination System. 136905.8.2.8 Avionics This WBS element contains all software and associated hardware for the Crew Launch Vehicle including both the 1st Stage and the Upper Stage. 136905.8.2.9 Upper Stage GSE & Tooling

Includes the design, development, integration, test, and verification of all elements required for manufacturing and assembly ground support equipment and tooling. 136905.8.2.10 Upper Stage Level 

Integration & Test

Includes the assembly/integration, test, and verification of all subsystems under the Upper Stage WBS. Additionally, all integrated hardware testing STA, EMC, and PTA are included under this element.

EVM Cost Tool (Cobra, MPM, 

Spreadsheets, etc)
NASA EVM Implementation Handbook Page 4-2

EVM implementation are very similar to those required for EVM implementation on contracts 

described in section 3.

4.2 Basic EVMS Process Description

Figure 4-1 illustrates the main components of the EVMS and their relationships. The NASA 

EVM Systems Description provides more detail on each of these components.

The Project Manager develops a preliminary WBS early in the Formulation phase of the project. 

See Figure 1-1 for the NASA Project Life Cycle Relationships and EVM Application. It is used 

to assist in the preparation of the FAD and the preliminary Project Plan. The preliminary project 

planning process through Formulation is an iterative process. Once the project is established 

with sufficient and stable scope definition, then both the NASA in-house work elements and, if 

required, the contract WBS elements can be adequately planned and established at the necessary 

levels of detail. All project efforts (i.e., in-house, contracted, international partners, university, 

and any other performing entity efforts) should be included.

The Project Plan is the overall work authorization document that represents an agreement 

between the sponsor and the performer on work scope, schedule, and budget. Based on this 

scope, the WBS and WBS dictionary are established and maintained. NPR 7120.5, Appendix G,

provides a standard template to begin WBS development for flight projects. Appropriate 

templates are also included in NPR 7120.7 and NPR 7120.8. The NASA WBS Handbook 

(http://evm.nasa.gov/handbooks.html) contains additional guidance for WBS development for all 

projects. The WBS dictionary should be developed as a companion to the WBS and subjected to 

the same configuration controls.

The project WBS and WBS dictionary data are used to establish a framework in the systems that

support the EVMS, such as the accounting system, scheduling system, risk management system, 

and EVM engine. Disciplined configuration controls should ensure that this framework remains 

consistent and reconcilable in these systems. Each Project Manager is ultimately responsible for 

establishing and controlling the project WBS baseline. The WBS provides a means of rolling up 

project data to any desired level for analysis and oversight, and provides a common reference for 

all project communication, both internal and external.

An Organizational Breakdown Structure (OBS) should also be developed to describe the 

organizations responsible for performing the authorized work. Once developed, the OBS should 

be cross-referenced to the WBS to ensure responsibility and accountability for planning, 

performing, and reporting on all authorized work. The resulting matrix is referred to as a 

Responsibility Assignment Matrix (RAM). The integration of the WBS and OBS creates control 

accounts that facilitate schedule and cost performance measurement. The control account is the 

primary point for work authorization, work performance management, and work performance 

measurement (i.e., where the planned value is established, earned value is assessed, and actual 

costs are collected). Each control account is assigned to a P-CAM. The P-CAM is responsible for 

ensuring the accomplishment of work in his or her control account and is the focal point for 

management control.

Accurate time-phasing of planned work is accomplished through an IMS. The IMS is the single 

integrated source of schedule data that accurately reflects how the planned work is to be 

executed. At the core of the IMS is a logic network dataset that should be maintained in an 

automated schedule management tool. The dataset consists of tasks and milestones, task 
NASA EVM Implementation Handbook Page 4-3

durations, interdependencies or relationships, project constraints, and data coding. The NASA 

Schedule Management Handbook (http://evm.nasa.gov/handbooks.html contains additional 

guidance on schedule development and maintenance. 

As work is performed, actual cost for accomplishing that work, also known as actual cost of 

work performed (ACWP) is captured within the financial reporting system. The value of the 

work accomplished is the earned value of that work, also known as budgeted cost for work 

performed (BCWP). The budgeted cost for work scheduled (BCWS) represents the value of the 

time phased work as it is planned. The integrated use of these three elements (BCWS, BCWP, 

and ACWP) provides the data needed to analyze schedule, cost, and technical performance.

There are various ways to integrate cost and schedule information to evaluate performance.

Commercial-off-the-shelf (COTS) tools are available that assist in the data integration and 

analysis functions. Multiple tools have been used by NASA projects performing EVM 

(Primavera, MS Project, Cobra® or MPMTM, wInsightTM, XML Connect). The wInsightTM is a 

COTS tool that is used for analyzing and reporting EVM data. The wInsightTM tool provides for 

analysis and reporting capabilities, including standard CPR formats 1 through 5. Additionally, 

wInsightTM provides data validity checks and reports to ensure the reliability of the EVM data. 

All NASA projects/contracts with EVM requirements should use the NASA provided 

wInsightTM for data validity assessment, analysis and reporting. 

The tools selected for use by the project should provide the functionality needed to comply with 

the requirements outlined in NPR 7120.5 and ANSI/EIA-748. With the exception of wInsightTM 

Cobra® or MPMTM, Project Managers are currently responsible for acquiring tools and should 

consult with their Center EVMFP for approach and lessons learned.

4.3 Integration of Data from Multiple Centers

Most NASA projects involve several NASA centers working together. Therefore, the NASA 

Project Manager at the center where the project resides needs to determine how to obtain 

necessary EVM data from the other centers. The process for work spanning multiple centers 

should be very similar to the process for projects with contracts. While the intra-agency 

agreement or ―contract‖ between centers can take many different formats, the intent is the same.

The contract between centers should act as an agreement of the scope, estimated cost, and 

schedule to complete the work. In this intra-agency agreement, the center where the project 

resides must include requirements for EVMS compliance (if applicable), WBS, EVM and IMS, 

reviews, variance thresholds, and anything else necessary to manage the work, using the 

methodologies employed with contractors. In cases where the intra-agency work does not meet 

the threshold for EVM, the project should flow down the appropriate data requirements 

necessary to support performance management (see Appendix E, Reporting for Contracts with 

no EVM Requirement for additional information). The pre- and post-award activities discussed 

in section 3 are similar for intra-agency agreements.

4.4 Integrated Baseline Reviews

Integrated Baseline Reviews (IBRs) are required whenever EVM is required. The Project Plan 

should identify the contracts and intra-agency work that will require an IBR. As discussed in 

section 3.3.4, Project Managers will conduct IBRs on applicable contracts within 180 days of 

contract award or authority to proceed regardless of the project phase.
NASA EVM Implementation Handbook Page 4-4

The requirement for project level IBRs is contained in NPR 7120.5. The project’s preliminary 

PMB is established in Phase B in preparation for KDP-C approval and is assessed during the preapproval IBR. Mission Directorates are required to conduct the pre-approval IBR as part of the 

preparations for KDP C to ensure that the project’s work is properly linked with its cost, 

schedule, and risk and that the management processes are in place to conduct project level EVM. 

This review may be conducted in conjunction with the Standing Review Board (SRB) activities 

for the Preliminary Design Review (PDR) to optimize data requirements/review activities and 

minimize disruption to the project. The process is described in the November 2012 NASA 

Integrated Baseline Review Process White Paper located on the NEN. The process consists of 

the EVM Capability Maturity Assessment conducted prior to KDP C on the preliminary PMB 

planning and the IBR event that is completed within 180 calendar days after KDP C. The EVM 

Capability Maturity Assessment is performed by the Integrated Surveillance Team (IST) 

appointed by the OCE (see Appendix H for more guidance). 

The project customer/sponsor is responsible for conducting the project IBR. For example, the 

Program Manager, as the customer conducts the IBR on the project (post KDP C) and assesses

the project control account planning. The Mission Director as the sponsor may also be involved. 

The Project Manager is responsible for conducting IBRs on the project’s first tier suppliers with 

EVM requirements. The NASA IBR Handbook, located on the NASA EVM website 

(http://evm.nasa.gov/handbooks.html) provides guidance on the IBR process. 

4.5 Management Reporting and Data Analysis

Reporting and analysis is most efficient when levels and thresholds are carefully crafted and the 

primary focus is on elements that exceed these thresholds. The CPR DRD in Appendix D

provides a relevant threshold example for this purpose. A well-crafted reporting structure should 

provide the ability to quickly examine the data to determine the source of significant technical, 

cost, and schedule variances. See section 3.3.6 for additional details.

Whereas the PMB is important to measure performance against a plan (budget), an EAC is 

necessary to understand the anticipated total funding requirements to complete the project. Realtime updates of EAC at individual control accounts to address issues occur during the monthly 

review and analysis of performance as appropriate. A bottoms-up EAC is required annually as a 

minimum to better understand the Project’s EAC and total estimated funding requirements. An 

appropriate time to conduct this bottoms-up EAC is in conjunction with the preparation of the 

annual PPBE inputs.

4.6 Changes to Baseline Data

All changes to the project budget base (PBB)/contract budget base (CBB) and PMB (scope, 

schedule, budget, EAC) must be documented in some form in order to provide traceability as 

required for management control and reviews, as well as compliance with the ANSI/EIA-748.

Most of these data, when changed, will require changes to other related data, such as risk 

management data.

Flexibility exists to allow changes to the baseline to ensure that it is as realistic as possible while 

ensuring stability for measuring cost, schedule, and technical progress. Corrections are made if 

erroneous data are significantly affecting the management value of the EVM system, but the 

validity and value of management reports may be compromised if current plans or project history 
NASA EVM Implementation Handbook Page 4-5

(performance to date information) are constantly changing. See section 5.5 for additional 

guidance on baseline changes.

4.7 Project EVMS Surveillance

Project Managers are responsible for supporting the NASA surveillance process, including inhouse and contractor EVMS surveillance. The objectives of EVMS surveillance are to ensure 

continued EVMS compliance with the ANSI/EIA-748 and data reliability across the project.

Section 3.3.5 provides guidance for conducting surveillance on contracts with EVM 

requirements. The Project Manager typically coordinates delegation of contract EVM 

surveillance requirements to the DCMA but not overall project surveillance. For overall project 

surveillance, the Project Manager will support their Center EVMFP and the IST in establishing a 

surveillance plan that is inclusive of the in-house work. Appendix H provides additional 

guidance for performing project EVMS surveillance.

4.8 Minimum Waiver Requirements for NASA In-House Programs and Projects

NPR 7120.5 defines the requirements for application of an EVMS to NASA projects and 

programs. When a program or project meets the requirements for EVM application yet wants to 

implement a management system not fully compliant with the guidelines in ANSI/EIA-748 a 

waiver request must be submitted to the OCE. To assist the OCE in making an informed 

decision, minimum waiver requirements have been established.

Minimum waiver requirements are designed to ensure that the decision makers have the 

necessary information to make a knowledgeable decision on the waiver. This information is also 

used to support audits coming from entities within and external to the Agency. The minimum 

waiver requirements are modeled after NFS 1852.234-1, which NASA uses in solicitations to 

inform the potential offeror(s) of the requirement to use an ANSI/EIA-748 compliant EVMS. 

See Appendix I, Minimum Waiver Requirements for NASA In-House Programs and Projects, for 

details. Additional guidance on completing a waiver can be found in the DoD EVM 

Implementation Guide (https://acc.dau.mil/CommunityBrowser.aspx?id=19557) and the NDIA 

EVM Systems Acceptance Guide 

http://www.ndia.org/Divisions/Divisions/Procurement/Pages/Program_Management_Systems_C

ommittee.aspx. In addition, the EVMFP is a source for information and can help to ensure 

adequate content and minimize time and effort for preparation and disposition.

OCE will evaluate waiver requests and make a determination based on the soundness of the data 

provided and the risk to the Agency if a waiver is granted. In some cases, additional follow-up 

and meetings may be required.
NASA EVM Implementation Handbook Page 5-1

5 LESSONS LEARNED

5.1 Overview

This section describes EVM issues and lessons learned that NASA personnel should consider 

when implementing and using EVM.

5.2 EVM Planning Begins at Project Formulation

While EVM reporting is not required until Phase C, project planning that will support EVM 

analysis and reporting is an iterative process beginning early in Formulation. The building block 

for effective planning and integrated performance management begins with the preliminary 

project WBS. While the initial purpose of a WBS is to define the project work and structure for 

cost collection, once in place it also provides the framework for integrating management 

subsystems, developing schedules and accumulating performance information. Figure 4-1 

provides an overview of the NASA EVMS architecture that includes relevant management 

subsystems. Disconnects and mismatches between these systems can be minimized if estimates, 

budgets, schedules, costs, accomplishments, and projections are all oriented to the approved 

project WBS. Otherwise, the project will be required to implement labor intensive workarounds 

and reconciliations just to obtain reliable data for management decision making. 

NASA requires the technical and financial WBS structures for each project to be the same 

(through level seven of the project WBS). This is accomplished through the use of the NASA 

Structure Management (NSM) system numbering scheme and controlled through NASA’s 

Metadata Management (MDM) system which supplies the approved WBS codes (through level 

seven) to the Agency’s core financial system (SAP) and other systems that require coding 

structure data. This common coding system facilitates communications among all project 

participants. All project efforts inclusive of suppliers (i.e., all in-house, contracted, international 

partners, university, and any other performing entity efforts) should be included. Additionally, 

Project Managers should work with their contracts organization or other performing entities to 

develop the appropriate contractual language and DRDs for reporting that supports project-level 

planning and analysis. 

It is essential that the WBS/OBS/CA/WP/charge code construct be carefully planned during 

project set-up when developing the preliminary IMS and selecting/initializing the EVM tools. 

This structure is the basis for schedule/budget integration and establishing the preliminary PMB 

prior to KDP C. The project management team should seek assistance and guidance from their 

Center EVMFP when establishing planning guidelines and templates. The project manager 

should review this construct with the entire project team and enabling support organizations so 

they understand the structure and the importance of adhering to it. Since the project WBS is not 

baselined until the later stages of Phase B, projects should not enter the full preliminary WBS 

into MDM until the scope has stabilized or until specific CAs are needed for cost collection to 

avoid charges to an inappropriate WBS. For additional instruction and best practices, see the 

NASA EVM Systems Description (https://nen.nasa.gov/web/pm/evm), NASA Work Breakdown 

Structure Handbook (NASA/SP-2010-3404), and the NASA Schedule Management Handbook 

(NASA/SP-2010-3403). The handbooks can be accessed on the NASA EVM Website 

(http://evm.nasa.gov/).
NASA EVM Implementation Handbook Page 5-2

5.3 Baseline Planning (Budget and Funds)

The PMB represents the calendar performance plan against which the supplier

(project/contractor) is measured during the total authorized (not just annual) project scope. It is 

the summation of the time-phased budgets for all control accounts, applicable indirect budgets,

and any undistributed budget (UB) for the authorized portion of the project lifecycle. The PMB

budget along with MR and authorized unpriced work (AUW) comprises the project budget base

(PBB) as depicted in Figure 5-1. For contractor’s, this is the contract budget base (CBB). 

Figure 5-1 NASA Project Budget Walk Down

These budgets equate to the plan and should not be confused with project funds, the monetary 

resource provided to execute the plan. The funds requirements are reviewed and updated based 

on the project/contract EAC. A compliant EVMS is concerned with the total authorized project 

scope, the associated planned budget and schedule, and the resultant PMB used to measure

progress of the total project. An EAC is necessary to understand the anticipated total funding 

requirements necessary to complete the project, based on current and expected performance 

against the plan. It is the actual cost to date plus the estimated costs to complete the remaining 

work. To better understand the EAC, a comprehensive/bottoms-up EAC should be completed 

annually as a minimum to support the PPBE process. Figure 5-2 is an example of a revised 

funding forecast/requirement based on the EAC. 
NASA EVM Implementation Handbook Page 5-3

 

Figure 5-2 Budget versus Funds

A more detailed explanation of EAC development and reporting is provided in the NASA EVM 

Systems Description located at the NEN (https://nen.nasa.gov/web/pm/evm).

When establishing the PMB, it is essential that the entire authorized scope (via contract, task 

order, approved project plan, etc.) be scheduled and budgeted (time-phased) regardless of fiscal 

year (FY) boundaries. If the Project Plan/agreement governing the project is divided into 

severable phases then the later phases may be segregated in planning packages. If the Project 

Plan/agreement authorizes only the first of several phases in which case authorization for later 

phases is contingent on specific events, only the basic period’s work should be scheduled and 

budgeted within the PBB or CBB.

Project Managers will need to consider the planned funding by FY as a limiting constraint when 

establishing their PMB to avoid major replanning. However, funding perturbations may cause 

internal replanning of the baseline work, or, in the case of significant funding cuts, may 

necessitate an authorized change to the PMB. The use of planning packages for work beyond the 

current FY may allow more flexibility in maintaining a valid PMB.

5.4 Management Reserve Planning and Usage

All projects contain some element of risk and should identify a portion of the authorized project 

budget value, the PBB, for unplanned activity within the project scope. ANSI/EIA-748 provides 

for the establishment and use of MR to handle these known-unknowns or unknown-unknowns.

Unanticipated control account changes such as unexpected growth within the currently 

authorized work scope, rate changes, risk handling, or changes in schedule are circumstances 

representative of situations that may result in the determination that budgets assigned to a 

P-CAM are inadequate (i.e., in scope to the project but out of scope to the control accounts) and 

may benefit from applying MR in the replanning process.

TIME

ACTUAL COST

(ACWP)

REVISED FUNDING

FORECAST

CURRENT

AUTHORIZED

FUNDING

TIME NOW

ESTIMATE AT

COMPLETTION (EAC)

ESTIMATE TO 

COMPLETE (ETC)

EARNED VALUE

(BCWP)

PLANNED VALUE

(BCWS)

D

O

L

L

A

R

S

BUDGET AT 

COMPLETION (BAC)
NASA EVM Implementation Handbook Page 5-4

The proper use and control of MR not only complies with the ANSI/EIA-748 guidelines, but is 

also a project management best practice. MR should not be confused with the project UFE which 

is a contingency fund. MR should not be eliminated from the project budget or contract prices 

during subsequent negotiations, or used to absorb the cost of program changes. The budget held 

in MR should not be viewed by a customer as a source of funding for added work scope or used 

to offset accumulated overruns or under runs.

A NASA lesson learned stresses the importance of Mission Directorates/Program Managers to 

allow Project Managers to budget for and report MR to manage project risks and to comply with 

the ANSI/EIA-748. Project Managers must ensure the project budget logs accurately reflect 

budget traceability for all budgets inclusive of MR and agree with the authorized PBB. Project 

EVM reports and information should reflect MR trends and explain uses (to/from accounts).

Project Managers should ensure their project EVMS process description and best practices 

clearly define MR and its use, and ensure that the necessary project personnel receive training on 

the project MR and the relationship to UFE and funding reserves. 

5.5 Replanning versus Rebaselining

In the context of the PMB, NASA project personnel typically associate the term ―rebaselining‖ 

with the process of eliminating all variances (cost and schedule) incurred against the PMB and 

re-establishing the PMB to reflect changes (usually reductions) in the project funding resulting 

from the annual PPBE process. However, this is not consistent with the best practices defined in 

the ANSI/EIA-748 or the definition of ―rebaselining‖ in NPR 7120.5: ―Rebaselining is the 

process that results from a change to the project’s Agency Baseline Commitment (ABC). The 

ABC establishes and documents an integrated set of project requirements, cost, schedule, 

technical content, and an agreed-to Joint Confidence Level that forms the basis for NASA’s 

commitment with the external entities of OMB and Congress.‖ The PBB value is established 

within this external commitment by the Program Manager and the Project Manager.

Keeping the PBB and the PMB up to date and reflective of authorized scope are essential 

elements for valid performance measurement on NASA programs/projects/contracts. Revisions 

to schedule, budgets, and work scope must be processed in a disciplined manner to maintain a 

clear path from the original approved PMB and to implement changes in a timely manner as 

prescribed by the ANSI/EIA-748. Any revisions to the PBB or CBB and PMB are incorporated 

through replanning actions. Replanning occurs when there is a change in the original plan for 

accomplishing the authorized scope, typically involving the redistribution of budget for 

remaining work. Changes requiring replanning can be thought of as internally driven or 

externally driven.

Internally driven changes, or internal replanning, involve realigning scope, schedule, or budget 

for the remaining project effort within the authorized PBB. Internal changes also include the 

correction of errors and routine accounting adjustments that improve the accuracy of the data.

Examples of internal replanning include changes resulting from design reviews, reorganization 

of work or people to improve efficiency of operations, rate changes, etc. The Project Manager

approves changes to remaining work, including changes that require allocation of MR. Internal 

replanning is restricted to remaining effort and, if significant, the customer must be advised of 

the action.

External changes are driven by the customer and require the project to revise its planning in 

order to accommodate these changes. Examples of externally directed changes that result in 
NASA EVM Implementation Handbook Page 5-5

replanning include customer directed changes; funding perturbations resulting from the PPBE 

process (project re-scope, schedule stretch out, etc.); an Engineering Change Proposal (ECP) that 

changes baseline scope, schedule, or budget; partial stop work; etc. An external change may be 

driven by a rebaseline of the project commitment agreement or ABC.

When replanning (internal or external) of the PBB or PMB is required, the least preferred 

method is eliminating both the cost and schedule variances. This method should only be used to 

improve the validity and usefulness of the EVM performance data. Project Managers should 

consult with their EVMFP for assistance in defining the appropriate replanning approach when 

internal or external replanning is required.

5.6 EVM Implementation and Letter Contracts

In accordance with FAR 16.603, a letter contract is a written preliminary contractual instrument 

that authorizes the contractor to begin work immediately. NASA uses this type of contract when 

(1) the government’s interests demand that the contractor be given a binding commitment so that 

work can start immediately and (2) when negotiating a definitive contract is not possible in 

sufficient time to meet the requirement. The letter contract should be as complete and definite as 

feasible under the circumstances and should include the EVMS clauses that are appropriate for 

the planned type of contract. The letter contract will also include a negotiated definitization 

schedule that includes the dates for submission of the contractor’s price proposal and a target 

date for definitization. The schedule will provide for definitization of the contract within 180 

days after the date of the letter contract or before completion of 40 percent of the work to be 

performed, whichever occurs first. 

The problem is that letter contract definitization can take months/years to occur and, during that 

time, NASA projects have little insight into contract performance. Additionally, there is a 

tendency for contractors to delay establishing a PMB, even an interim PMB, prior to contract 

definization. Without an interim PMB, it is difficult to determine current performance and assess 

technical, cost, or schedule risks/impacts; it also diminishes planning and control by both the 

prime contractor and the government. The process for incorporating the authorized but not 

negotiated or definitized change budget into the PMB is to record the proposal value or NTE in 

the project budget base log as AUW. Contractors will assign this budget to UB and then allocate 

to control accounts for near term work. See the NASA EVM Systems Description for more 

explanation. 

Project Managers are responsible for ensuring the prime contractors comply with the EVMS and 

reporting requirements included in letter contract awards. This includes the initialization of the

PMB, submission of the CPR, WBS, and the IMS DRDs, and completion of the IBR within 180 

days after contract award (in accordance with the EVMS clause). Project Managers should not 

allow waivers to these requirements. If a delay in EVM implementation is warranted, Project 

Managers should coordinate any waivers to EVM requirements with the agency/center EVMFPs

and the contracting officer, and process the waiver, if applicable, in accordance with the waiver 

process described in NPR 7120.5.
NASA EVM Implementation Handbook Page A-1

APPENDIX A. NASA EVM Requirements Summary

EVMS Requirements/Guidance (See Table A-1, NASA EVMS and Reporting 

Requirements for Projects/Contracts)

 Earned Value Management System (EVMS) in compliance with guidelines in ANSI/EIA-748

is required for development or production work for both government agreements and 

contracts that are equal to or greater than $20 million**.

 A formally validated and accepted EVMS is required for development and production work 

for government agreements and contracts equal to or greater than $50 million**.

 For NASA projects of $20 million** or greater, planning and implementation for EVM is 

initiated early in Formulation (Phases A and B) and applied during Implementation (Phases 

C and D). EVM is required during Phase E when modifications, enhancements and upgrades 

are made of $20 million** or greater.

 NASA projects are highly encouraged to use the NASA EVM Systems Description (located 

at https://nen.nasa.gov/web/pm/evm) with applicable tailoring to meet their EVMS 

requirements. 

 EVM is discouraged for Firm-Fixed Price (FFP) contracts. The Contracting Officer (CO) will 

collaborate with the Project Manager to ensure the appropriate data can be obtained to fulfill 

project management needs and comply with NPR 7120.5.

 EVM may be imposed on government agreements/contracts less than $20 million** as a riskbased decision of the Project Manager.

 Prime contractors will flow down the same EVM requirements to applicable subcontracts.

**Project Lifecycle Cost Estimate or total estimated contract value inclusive of options

Statement of Work

 The Statement of Work (SOW) (for contracts) or work scope (for government projects) shall 

not contain guidance or direction that conflicts with, removes, or adds work scope to the 

supplier’s validated EVMS.

 Refer to Appendix B of the EVM Implementation Handbook for sample SOW language.

NASA FAR Supplement for Contracts (See NFS 1834.2) 

 Insert NASA FAR Supplement NFS 1852.234-1, Notice of Earned Value management 

System, in contract solicitations for: 

◦ Development or production, including flight and ground support projects and institutional 

projects (facility IT, investment, etc.) with a value exceeding $20 million**

◦ Acquisitions of any value designated as major by the project manager in accordance with 

OMB Circular A-11

 Insert NFS 1852.234-2, Earned Value Management System, in solicitations and contracts 

with a value equal to or exceeding $50 million** that include the provision at 1852.234-1.

The clause with its Alternate I will be used when the contract value is less than 

$50 million**.
NASA EVM Implementation Handbook Page A-2

Data Requirements

 A product oriented Work Breakdown Structure (WBS) in accordance with NASA procedures 

(NPRs 7120.5, 7120.7 and 7120.8) is required for projects. Additionally, the Contractor 

WBS (CWBS) and CWBS Dictionary DRD will be included in all contracts requiring EVM. 

See the NASA WBS Handbook (NASA/SP-2010-3404), http://evm.nasa.gov/, for the CWBS

DRD. 

 A Contract Performance Report (CPR) and Project Integrated Master Schedule (IMS) are 

required monthly as a minimum whenever EVM is required.

 For contracts, the CPR is required within 90 days of contract award. For projects, formal 

reporting begins at Phase C (typically within 60 days of confirmation). See Appendix D of 

the NASA EVM Implementation Handbook (NASA/SP-2012-599), http://evm.nasa.gov/, for 

CPR DRD.

◦ The CPR Data Requirements Description (DRD) for projects/contracts of $50 million or 

greater should require all five CPR formats.

◦ The CPR DRD for projects/contracts less than $50 million may tailor down the DRD to 

accommodate project information needs.

• The IMS DRD will be included in project agreements and contracts whenever EVM is 

required. See the NASA Schedule Management Handbook (NASA/SP-2010-3403), 

http://evm.nasa.gov/, for the IMS DRD.

 Contractor Financial Management Reports, Monthly and Quarterly, NASA forms NF533M 

and NF533Q respectively, are required on contracts (see NPD 9501.1I and NPR 9501.2) and, 

when EVMS is required, will reflect information consistent with the CPR and generated from 

the same management information systems.

 Cost Reporting for non-EVM contracts is required monthly from suppliers that are 

performing work in support of a NASA project that is using EVM. See Appendix E, NASA 

EVM Implementation Handbook (NASA/SP-2012-599), for sample DRDs. Examples of 

these contracts/agreements are steady state or level of effort and do not meet the EVM 

requirements or are below the threshold for applying EVM. 

Integrated Baseline Reviews (IBRs) 

 IBRs are required whenever EVM is required.

 For contracts, NASA Project Managers will conduct IBRs within 180 calendar days after 

contract award (if a pre-award IBR has not been conducted), or exercise of significant 

options, or within 60 calendar days after incorporation of major modifications. 

 For NASA projects, NASA Program Managers should conduct IBRs within 180 calendar 

days after KDP C, after major modifications and exercise of significant options. Note: The 

project IBR process begins prior to KDP C with the pre-approval IBR conducted by the 

Mission Directorates as part of their preparations for KDP C to ensure the project’s work is 

properly linked with its cost, schedule, and risk and the systems are in place to conduct 

project level EVM. 

 IBR teams should include schedule and EVM subject matter experts. See the NASA IBR 

Handbook (NASA/SP-2010-3406), http://evm.nasa.gov/, for additional information. 
NASA EVM Implementation Handbook Page A-3

Additional Information

 NASA EVM websites: Public - http://evm.nasa.gov/; Internal -

https://nen.nasa.gov/web/pm/evm

 NASA Integrated Baseline Review Process White Paper, Rev 7, 30 Nov 12, located on the 

NEN

 NPR 7120.5, NASA Space Flight and Project Management Requirements; NPR.7120.7, 

NASA Information Technology and Institutional Infrastructure Program and Project 

Management Requirements, NPR 7120.8, NASA Research and Technology Program and 

Project Management Requirements. http://nodis3.gsfc.nasa.gov/lib_docs.cfm?range=7

 EVM Community of Practice: https://acc.dau.mil/evm

 NDIA Program Management Systems Committee: 

http://www.ndia.org/Divisions/Divisions/Procurement/Pages/Program_Management_System

s_Committee.aspx
NASA EVM Implementation Handbook Page A-4

Table A-1 NASA EVMS and Reporting Requirements for Projects/Contracts

Requirement

Project Lifecycle/ Contract Total Estimated Value

$50 million and greater $20 million but less than 

$50 million <$20 million

ANSI/EIA-748 Compliance with 

guidelines; Validation 

Required*

Compliance with 

guidelines*; Validation 

not required

Not required (optional 

at discretion of Project 

Manager)

NASA EVMS Solicitation 

and Contract Clause

Required:

NFS 1852.234-1 & 

NFS 1852.234-2

Required:

NFS 1852.234-1 & 

NFS 1852.234-2 with 

Alternate I

Required if Project 

Manager elects to 

require EVM, NFS

1852.234-1 & 

1852.234-2 with Alt 1

CPR DRD Required (all 5 CPR 

formats)

Required (CPR 

Formats 1,3 & 5 as 

minimum)

Required if Project 

Manager elects to 

require EVM

IMS DRD Required Required Required if Project 

Manager elects to 

require EVM

WBS DRD Required Required Required

Project Cost Report DRD 

(Non-EVM)**

Required if EVM and 

CPR not required

Required if EVM and 

CPR not required

Required if EVM and 

CPR not required

IBR Required whenever EVM is required.

Supplier Flow Down Same as for Project/prime contractor; the prime contractor must apply 

EVMS and appropriate reporting requirements to subcontractors

Notes:

EVM is applied on development or production contracts and subcontracts, including flight and ground support 

projects and institutional projects (facility IT, investment, etc.) and major acquisitions as designated by the Project 

Manager (see NPR 7120.5, 7120.7, 7120.8 and NFS 1834.2).

*NASA projects are highly encouraged to use the NASA EVM Systems Description (located at

https://nen.nasa.gov/web/pm/evm ) with applicable tailoring to meet the EVMS requirements. 

The application of EVM is discouraged on Firm Fixed Price contracts, programs/projects/contracts < 12 months in 

duration (inclusive of options), non-developmental engineering support services, steady state operations, basic and 

applied research, and routine services such as janitorial or grounds maintenance services. 

Integrated Baseline Reviews (IBRs): For contracts, project managers will conduct IBRs within 180 calendar days 

after contract award (if a pre-award IBR has not been conducted), or exercise of significant options, or within 60 

calendar days after incorporation of major modifications. For NASA projects, program managers should conduct IBRs 

within 180 calendar days after KDP C, after major modifications and exercise of significant options. The IBR process 

begins prior to KDP C with the pre-approval IBR conducted by the Mission Directorates as part of their preparations 

for KDP C to ensure the project’s work is properly linked with its cost, schedule, and risk and the systems are in place 

to conduct project level EVM. 

**See Appendix E, Reporting For Contracts with No Earned Value Management (EVM) Requirements of the NASA 

EVM Implementation Handbook.

Legend:

ANSI/EIA-748 – American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management System

CPR – Contract Performance Report

DRD – Data Requirements Description

IBR – Integrated Baseline Review

IMS – Integrated Master Schedule

NFS – NASA Federal Acquisition Regulation Supplement

WBS – Work Breakdown Structure
NASA EVM Implementation Handbook Page B-1

APPENDIX B. SAMPLE SCOPE PARAGRAPHS

The following are recommended statement of work inputs for inclusion in the RFP. For intraagency agreements, the term ―supplier‖ may be used in lieu of ―contractor‖ and ―agreement‖ in 

lieu of ―contract.‖

Project Management Reviews. The contractor shall conduct Project Management Review 

(PMR) meetings at mutually agreed upon dates and locations. During the reviews, the contractor 

shall present integrated cost, schedule, and technical performance status. Integrated Product 

Team leads or functional managers shall include cost information in discussions of schedule 

status, technical performance, and risk using earned value management as an integrating tool.

The following shall be addressed: Cost/schedule trends, significant cost/schedule technical 

variances, projected impacts, quantified risk assessments, and corrective action plans. (DRD 

PMR)

Contractor Integrated Performance Measurement. The contractor shall establish, maintain, 

and use in the performance of this contract, an Earned Value Management System (EVMS). The 

correlation and integration of these systems and processes shall provide for early indication of 

cost and schedule problems, and their relation to technical achievement. (DRD CPR)

Integrated Master Schedule (IMS). The contractor shall develop and maintain an IMS by 

logically networking detailed program activities. The schedule shall contain the planned events 

and milestones, accomplishments, criteria, and activities from contract award to the completion 

of the requirement. (DRD IMS)

Integrated Baseline Reviews (IBRs). The contractor shall present its performance measurement 

baseline plan to the Government within six months after contract award, and subsequently, when 

required, following major changes to the baseline. The Government will verify during the IBR, 

and follow-on IBRs when required that the contractor has established and maintains a reliable 

performance measurement baseline. The contractor will ensure that the baseline includes the 

entire contract technical scope of work consistent with contract schedule requirements, and has 

adequate resources assigned. The contractor will assure the Government that effective earned 

value methods are used to accurately status contract cost, schedule, and technical performance. 

The contractor will perform a self-assessment of the cost and schedule risk for the IBR. The IBR 

will be used to achieve a mutual understanding of the baseline plan, cost and schedule risk, and 

the underlying management processes used for planning and controlling the project. 
NASA EVM Implementation Handbook Page C-1

APPENDIX C. NFS EVMS SOLICITATION AND CONTRACT CLAUSES

(Note: Check the NASA FAR Supplement (NFS) for latest version prior to use.)

1852.234-1 Notice of Earned Value Management System.

As prescribed in 1834.203-70(a), insert the following provision:

NOTICE OF EARNED VALUE MANAGEMENT SYSTEM 

(NOVEMBER 2006) 

(a) The offeror shall provide documentation that its proposed Earned Value Management 

System (EVMS) complies with the EVMS guidelines in the American National Standards 

Institute (ANSI)/Electronic Industries Alliance (EIA)-748 Standard, Earned Value 

Management Systems.

(b) If the offeror proposes to use a system that currently does not meet the requirements of 

paragraph (a) of this provision, the offeror shall submit its comprehensive plan for 

compliance with the EVMS guidelines to the Government for approval.

(1) The plan shall—

(i) Describe the EVMS the offeror intends to use in performance of the contract:

(ii) Distinguish between the offeror's existing management system and modifications 

proposed to meet the EVMS guidelines in ANSI/EIA-748; 

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

guidelines;

(iv) Describe the proposed procedure for application of the EVMS requirements to 

subcontractors; 

(v) Describe how the offeror will ensure EVMS compliance for each subcontractor 

subject to the flow-down requirement in paragraph (c) whose EVMS has not been 

recognized by the Cognizant Federal Agency as compliant according to paragraph 

(a);

(vi) Provide documentation describing the process and results, including Government 

participation, of any third-party or self-evaluation of the system’s compliance with 

the EVMS guidelines; and

(vii) If the value of the offeror’s proposal, including options, is $50 million or more, 

provide a schedule of events leading up to formal validation and Government 

acceptance of the Contractor’s EVMS. This schedule should include progress 

assistance visits, the first visit occurring no later than 30 days after contract award, 

and a compliance review as soon as practicable. The Department of Defense Earned 

Value Management Implementation Guide 

(https://acc.dau.mil/CommunityBrowser.aspx?id=19557) outlines the requirements 

for conducting a progress assistance visit and validation compliance review.
NASA EVM Implementation Handbook Page C-2

(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 EVMS implementation plan prior to contract 

award.

(c) The offeror shall identify in its offer the major subcontractors, or major subcontracted effort 

if major subcontractors have not been selected, planned for application of the EVMS 

requirement. Prior to contract award, the offeror and NASA shall agree on the 

subcontractors, or subcontracted effort, subject to the EVMS requirement.

(d) The offeror shall incorporate its compliance evaluation factors for subcontractors into the 

plan required by paragraph (b) of this provision.

(End of provision)

1852.234-2 Earned Value Management System.

As prescribed in 1834.203-70(b) insert the following clause:

EARNED VALUE MANAGEMENT SYSTEM

(NOVEMBER 2006)

(a) In the performance of this contract, the Contractor shall use--

(1) An Earned Value Management System (EVMS) that has been determined by the 

Cognizant Federal Agency to be compliant with the EVMS guidelines specified in the 

American National Standards Institute (ANSI)/Electronic Industries Alliance (EIA) –

748 Standard, Industry Guidelines for Earned Value Management Systems (current

version at the time of award) to manage this contract; and 

(2) Earned Value Management procedures that provide for generation of timely, accurate, 

reliable, and traceable information for the Contract Performance Report (CPR) required 

by the contract.

(b) If, at the time of award, the Contractor’s EVMS has not been determined by the Cognizant 

Federal Agency to be compliant with the EVMS guidelines, or the Contractor does not have 

an existing cost/schedule control system that is compliant with the guidelines in the

ANSI/EIA-748 Standard (current version at the time of award), the Contractor shall apply 

the system to the contract and shall take timely action to implement its plan to obtain 

compliance/validation. The Contractor shall follow and implement the approved 

compliance/validation plan in a timely fashion. The Government will conduct a Compliance 

Review to assess the contactor’s compliance with its plan, and if the Contractor does not 

follow the approved implementation schedule or correct all resulting system deficiencies 

identified as a result of the compliance review within a reasonable time, the Contracting 

Officer may take remedial action, that may include, but is not limited to, a reduction in fee. 

(c) The Government will conduct Integrated Baseline Reviews (IBRs). Such reviews shall be 

scheduled and conducted as early as practicable, and if a pre-award IBR has not been 

conducted, a post-award IBR should be conducted within 180 calendar days after contract 
NASA EVM Implementation Handbook Page C-3

award, or the exercise of significant contract options, or within 60 calendar days after 

distribution of a supplemental agreement that implements a significant funding realignment 

or effects a significant change in contractual requirements (e.g., incorporation of major 

modifications). The objective of IBRs is for the Government and the Contractor to jointly 

assess the Contractor’s baseline to be used for performance measurement to ensure complete 

coverage of the statement of work, logical scheduling of the work activities, adequate 

resourcing, and identification of inherent risks.

(d) Unless a waiver is granted by the Cognizant Federal Agency, Contractor proposed EVMS 

changes require approval of the Cognizant Federal Agency prior to implementation. The 

Cognizant Federal 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 Cognizant Federal Agency, the 

Contractor shall disclose EVMS changes to the Cognizant Federal 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 Contractor’s EVMS complies, and continues to comply, with 

the EVMS guidelines referenced in paragraph (a) of this clause, and to demonstrate—

(1) Proper implementation of the procedures generating the cost and schedule information 

being used to satisfy the contract data requirements;

(2) Continuing application of the accepted company procedures in satisfying the CPR 

required by the contract through recurring program/project and contract surveillance; 

and

(3) Implementation of any corrective actions identified during the surveillance process.

(f) The Contractor shall be responsible for ensuring that its subcontractors, identified below, 

comply with the EVMS requirements of this clause as follows:

(1) For subcontracts with an estimated dollar value of $50M or more, the following 

subcontractors shall comply with the requirements of this clause. 

(Contracting Officer to insert names of subcontractors or subcontracted effort).

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

_______________________________________________________________________

(2) For subcontracts with an estimated dollar value of less than $50M, the following 

subcontractors shall comply with the requirements of this clause except for the 

requirement in paragraph (b), if applicable, to obtain compliance/validation.

(Contracting Officer to insert names of subcontractors or subcontracted effort.)

_______________________________________________________________________

_______________________________________________________________________
NASA EVM Implementation Handbook Page C-4

_______________________________________________________________________

_______________________________________________________________________

(g) If the contractor identifies a need to deviate from the agreed baseline by working against an 

Over Target Baseline (OTB) or Over Target Schedule (OTS), the contractor shall submit to 

the Contracting Officer a request for approval to begin implementation of an OTB or OTS.

This request shall include a top-level projection of cost and/or schedule growth, whether or 

not performance variances will be retained, and a schedule of implementation for the 

reprogramming adjustment. The Government will approve or deny the request within 30 

calendar days after receipt of the request. Failure of the Government to respond within this 

30-day period constitutes approval of the request. Approval of the deviation request does not 

constitute a change, or the basis for a change, to the negotiated cost or price of this contract, 

or the estimated cost of any undefinitized contract actions. 

(End of clause)

(ALTERNATE I)

(NOVEMBER 2006)

As prescribed in 1834.203-70(b), substitute the following paragraph (b) for paragraph (b) of the 

basic clause:

(b) If, at the time of award, the Contractor’s EVMS has not been determined by the Cognizant 

Federal Agency to be compliant with the EVMS guidelines, or the Contractor does not have 

an existing cost/schedule control system that is compliant with the guidelines in the 

ANSI/EIA-748 Standard (current version at the time of ward), the Contractor shall apply the 

system to the contract and shall take timely action to implement its plan to be compliant 

with the guidelines. The Government will not formally validate/accept the Contractor’s 

EVMS with respect to this contract. The use of the Contractor’s EVMS for this contract 

does not imply Government acceptance of the Contractor’s EVMS for application to future 

contracts. The Government will monitor compliance through routine surveillance.

(End of Clause)
NASA EVM Implementation Handbook Page D-1

APPENDIX D. CONTRACT DATA REQUIREMENTS DESCRIPTIONS 

DATA REQUIREMENTS DESCRIPTION (DRD)

1. DPD NO.: XXX ISSUE: Standard 2. DRD NO.:

3. DATA TYPE: 4. DATE REVISED:

5. PAGE:

6. TITLE: Contract Performance Report (CPR)

7. DESCRIPTION/USE: To provide information for: (1) integrating cost and schedule 

performance data with technical performance measures, (2) assessing the magnitude and impact 

of actual and potential problem areas causing significant cost and schedule variances, and (3) 

providing valid, timely project status information to higher management.

8. OPR: 9. DM:

10. DISTRIBUTION: Per Contracting Officer’s letter.

11. INITIAL SUBMISSION: Within 90 days after Authority to Proceed. Format 5: Initial 

Contract Performance Report (CPR) shall contain rankings of cost and schedule drivers.

12. SUBMISSION FREQUENCY: Monthly; by the 12th working day following the close of 

the prior month accounting period. Updated list of the cost and schedule driver rankings in 

Format 5 every 180 calendar days, based on performance to date.

13. REMARKS:

14. INTERRELATIONSHIP: The Financial Management Reports shall include reconciliation 

between the 533M/533Q and the CPR, which shall be submitted as an attachment to the 

533M/533Q reports and the CPR. The CPR reporting levels and frequency shall be in accordance 

with the Contract Work Breakdown Structure DRD and contract provisions.

15. DATA PREPARATION INFORMATION:

15.1 SCOPE: The CPR includes data to measure cost and schedule performance.

15.2 APPLICABLE DOCUMENTS:

DI-MGMT-81466A Data Item Description for Contract Performance Report (available at:

NASA EVM Website, http://evm.nasa.gov/reports.html) 

15.3 CONTENTS: The CPR shall include data pertaining to all authorized 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:

(a) Format 1, Work Breakdown Structure (WBS): Format 1 shall provide data to measure cost 
NASA EVM Implementation Handbook Page D-2

and schedule performance by summary level WBS elements, and the hardware, software, 

and services NASA is buying.

(b) 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.

(c) 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 the time-phased budget 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).

(d) Format 4, Staffing: Format 4 shall provide manpower staffing forecasts for correlation with 

the budget plan and cost estimates and contain the manpower baseline which shall be 

updated and submitted whenever the PMB changes. Organizational category reporting shall 

be to the first level of the program's organizational structure. Format 4 shall contain baseline 

and manpower 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).

(e) 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 180 calendar days, 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 shall 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.

(f) Variance Analysis: The Variance Analysis shall be a narrative report addressing the 

following:

(1) Reporting elements that equate to 50% of the list of the schedule drivers (i.e., if 20 

schedule drivers are listed, the 10 most critical schedule driver variances over $100k 

shall be addressed). If there are 10 or less schedule driver variances, all variances over 

$100k shall be addressed.

(2) Reporting elements that comprise the top 50% of the cost drivers (i.e., if 20 cost drivers 

are listed, the top 10 most critical cost driver variances over $100K). If there are 10 or 

less cost driver variances, all cost variances over $100K shall be addressed.

(3) Impact to the contract Estimate-at-Complete (EAC) for all cost and schedule driver 
NASA EVM Implementation Handbook Page D-3

variances addressed.

(4) Explanation for all variances at completion over $500K.

(5) Corrective Action Plan, as applicable.

(g) Subcontractor CPRs: All subcontractor performance data will be integrated into the Prime’s 

CPR. Additionally, the subcontractor CPRs shall be submitted as an attachment to the 

Prime’s CPR.

15.4 FORMAT: CPR formats shall be completed according to the instructions outlined in DIMGMT-81466A and the following forms: Format 1 (DD Form 2734/1); Format 2 (DD Form 

2734/2); Format 3 (DD Form 2734/3); Format 4 (DD Form 2734/4); and Format 5 (DD Form 

2734/5). Images of the CPR forms are located at http://evm.nasa.gov/reports.html. 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 NASA management use. The CPR shall be 

submitted electronically using the American National Standards Institute (ANSI) X12 standards 

(transaction sets 839) or XML using WINST.DTD format (format can be found at 

http://evm.nasa.gov/reports.html or the UN/EDIFACT standard (PROCST message) and 

followed up with a signed paper copy. Structures and Units from the EVM engine should be 

configured as stated below for a basic set-up.

Structures:

WBS Work Breakdown Structure

OBS Organization Breakdown Structure

IPT Integrated Product Team

Units: Dollars, Hours, EQP
NASA EVM Implementation Handbook Page E-1

APPENDIX E. REPORTING FOR CONTRACTS WITH NO EARNED VALUE MANAGEMENT (EVM) 

REQUIREMENTS

A Guide for Obtaining Data to Support Project-Level EVM Analysis and Reporting

1. Introduction

NASA policy requires the implementation of EVM on projects that meet established parameters 

and thresholds. In some cases, EVM is applicable to a project but not to a contract. Some 

examples of this include steady state or Level of Effort (LOE) support contracts, contracts that 

do not meet the established thresholds for EVM application, Firm Fixed Price (FFP) contracts, 

and others. This guide will discuss the different data elements required to support project-level 

EVM analysis and reporting and provide options for obtaining that information on non-EVM 

contracts.

It is important to note, that for these recommendations to work, it is necessary to plan for the 

implementation of EVM early in both the total project planning and the procurement process. It 

may be more challenging if contracts are owned by another organization, so it is critical to share 

this strategy with project managers and procurement organizations. Also, when developing 

requirements to support EVM, be sure to review the other Data Requirements Descriptions 

(DRDs) on the contract for commonality. It is possible that the data requested in other DRDs will 

provide data needed to support EVM planning and analysis as is or with minimal changes 

required.

2. Data Elements to Support Project-Level EVM Analysis & Reporting

EVM represents the integration of cost, schedule, and technical data to provide an assessment of 

project performance and health. Actual cost data, cost plans (including changes to those plans), 

forecasts, work status, and variance explanations are the pieces of information required to 

conduct EVM planning and analysis. The Work Breakdown Structure (WBS) serves as a 

common framework for cost, schedule, and technical planning. For this reason the WBS DRD 

plays a key role in the integration of cost, schedule, and technical data so all reporting 

instructions must ensure reporting in accordance with the WBS. For example, the WBS used in 

cost reporting must align with the WBS for schedule reporting.

There are several options for obtaining the data that will be based largely on factors such as the 

size of the contract, the type of work, and the NASA Project Manager’s needs for insight.

Several sample contract wording and DRDs are provided that describe the basic elements needed 

to support EVM planning, analysis, and reporting. The content and format can be tailored to 

support each project’s unique needs.

3. Actual Cost Data

Monthly actual cost data by WBS are needed to support EVM planning and analysis and serve as 

the source for Actual Cost of Work Performed (ACWP) or Actual Cost (AC). There are various 

methods, both formal and informal, that can be used to obtain cost data.

If a NASA Form (NF) 533 is required on a contract, it will serve as the source for actual cost 

data. See NASA Procedural Requirements (NPR) 9501.1 NASA Contractor Financial 
NASA EVM Implementation Handbook Page E-2

Management Reporting System for instructions on preparing an NF 533 DRD. It is important to 

ensure that the language in the NF 533 DRD or the Performance Work Statement (PWS) allow 

for flexibility in the reporting structure. Some examples include:

 ―Provisions shall be made to allow costs to be collected by government provided cost 

allocation as well as by special projects or activities.‖

 ―Further breakdown may be required for funding codes and customers which will be 

reflected in the work order report and in scheduled monthly reviews.‖

If an NF 533 will not be required on the contract, or cannot support detailed cost collection, other 

methodologies must be employed to ensure availability of monthly actual costs. One method is 

to use a separate DRD for contractor reporting of actual cost. This can be in any electronic 

format required for integration with the project management tool, but must be done on a monthly 

basis. A project utilizing a specific software tool to load actual cost data will want to specify a 

reporting format in a DRD that format will allow for automatic upload of data into the tool. A 

sample DRD entitled Actual Cost Data in Support of Project-Level Earned Value Management 

(EVM) Planning and Analysis is shown in Figure 1. Projects can use this DRD to collect data 

and tailor based on their specific reporting needs. For example, a column can be added to the 

format to require reporting of both Work Year Equivalents (WYEs) and hours.

For Firm Fixed Price Contracts that will not receive an NF 533, the best approach for obtaining 

actual cost data is when payments are made based on established milestones. This ensures that 

actual cost align with the work accomplished. If billing does not coincide with work 

accomplished, actual costs can be estimated based on an assessment of work accomplished 

through schedule status, weekly meetings, or other interactions with the contractor.

Another option for obtaining contractor cost data is to request access to the contractor’s financial 

data. If this methodology is employed, the contract performance work statement must specify 

this requirement if this will be the route for obtaining actual cost information. For example, ―The 

contractor shall provide an automated, network accessible, ad hoc query capability to permit 

specific Government users, as identified by the Contracting Officer, access to determine the cost, 

schedule, and status of work at the level of detail reported in individual work orders, specific 

customers, unique projects, WBS, and NASA Form (NF) 533 reports.‖

4. Cost Plans and Forecasts

Cost plans are needed to support the project-level Performance Measurement Baseline (PMB) 

and serve as the basis for Budget Cost for Work Performed (BCWP) or Earned Value (EV).

Forecasts are needed to support the development of the project-level Estimate at Complete 

(EAC). This data can be formally requested as a monthly deliverable from the contractor or can 

be developed by the project manager (PM) and Project Office.

In cases where a contract is small or just providing WYEs in support of a larger NASA task, the 

PM may want to develop cost plans and forecasts internally, with support from the contractor. It 

is important that any rate updates be submitted to NASA to ensure cost plans and forecasts are 

developed utilizing the latest information when updating the cost plan or the Estimate At 

Completion (EAC). Figure 2 entitled Direct and Indirect Rates DRD can be used to request rate 

information from a contractor. The NASA PM must specify the basis for the rate, for example 

hourly or annualized rates. Note that rate information DRD is not necessary if the contractor is 
NASA EVM Implementation Handbook Page E-3

providing the cost plan as a deliverable or if the contract or the contracting officer can provide 

the rate information.

In cases where the contracts are larger, or perhaps when the contractor generates this data 

internally, the NASA PM may want to formally request the data from the contractor in a DRD.

Two similar DRDs have been developed, one for capturing cost plan data and the other for 

capturing forecast data. Figure 3 entitled Time-Phased Cost Plans in Support of Project-Level 

Earned Value Management (EVM) Planning and Analysis provides a format that can be tailored 

to collect cost plans in PM specified units, e.g. WYEs, hours, and/or dollars. Note that when 

changes are requested, it is important that estimates be time-phased monthly by customerspecified WBS. Figure 4, entitled Time-Phased Cost Forecast in Support of Project-Level Earned 

Value Management (EVM) Planning and Analysis can be tailored to a project’s needs for 

forecasting. It is standard that comprehensive forecasts be conducted on an annual basis, and this 

format can be used to support that process.

5. Status of Work Accomplished

Several methods can be employed to status work accomplished that serves as the basis for the 

Budgeted Cost for Work Performed (BCWP) or Earned Value (EV). The most preferred way to 

obtain status of work accomplished is from an Integrated Master Schedule (IMS) that is current 

and delivered on a monthly basis. See NASA’s Schedule Management Handbook for a sample 

IMS DRD. It is important that the WBS used for the IMS is the same that is used for cost actual, 

plan, forecast, and variance explanation reporting.

If the contract will not include a requirement for an IMS deliverable, other options can be 

employed to obtain status. First, the status can be obtained through regularly scheduled meetings 

with the contractor. If this route is selected, be sure to include language in the contract’s 

performance work statement requiring the contractor to provide a status of work accomplished 

for each WBS specified for reporting. These status reviews must occur at least monthly and 

provide an assessment of work accomplished on tasks using objective measures and exit criteria.

The status will be in the form of percentage complete, and the NASA team will verify accuracy 

of the status and make adjustments as required.

Another option is to request from the contractor a status of work accomplished for each WBS 

specified for reporting. The status must be based on objective measures and exit criteria. The 

status takes a percent complete format that is then dollarized by multiplying that percent 

complete by the WBS element total budget. A sample DRD entitled Measurement of Work 

Accomplishment Status in Support of Project-Level Earned Value Management (EVM) Planning 

and Analysis is shown in Figure 5.

Another method for obtaining status is by asking the contractor to use a cost weighted milestone 

methodology to provide a dollarized status of the work accomplished each month. This requires 

that each sub-task be broken down into monthly cost weighted milestones that represent a 

portion of the total sub-task budget. It is important that the sum of all cost weighted milestones 

must equal 100% of the planned subtask budget. On a monthly basis, a report will be generated 

which captures the ―dollarized‖ planned accomplishments compared to the actual 

accomplishments. Ideally, these milestones will align with those established for payment, such 

that actuals will align with work achievement. If not, actual cost will have to be estimated. A 

sample DRD entitled Cost Weighted Milestone Methodology in Support of Project-Level Earned 

Value Management (EVM) Planning and Analysis is included for reference in Figure 6. Note 
NASA EVM Implementation Handbook Page E-4

that using this DRD also provides the Budgeted Cost for Work Scheduled (BCWS) or Planned

Value (PV); therefore a separate Cost Plan DRD is not required in this case.

6. Variance Explanations

Explanations of cost, schedule, and at complete variances are also required for EVM planning 

and analysis. This data can be formally requested from the contractor on a monthly basis, or it 

may be discussed at Monthly Status Reviews.

If the contract will not require formal submittal of variance explanations, the contractor can 

present variance data at the Monthly Status Review (MSR). A sample DRD entitled Monthly 

Status Reviews (MSRs) in Support of Project-Level Earned Value Management (EVM) Planning 

and Analysis is attached in Figure 7. This DRD can stand alone or be combined with a DRD for 

Monthly Status Reviews where other information is required to be presented by the contractor. In 

most cases, contracts will require a monthly status review and a separate DRD will not be 

required.

The variance explanation data can be a formal report prepared and submitted by the contractor 

on a monthly basis. If this is the requirement, a DRD will need to be inserted into the contract. A 

sample DRD entitled Variance Explanations in Support of Project-Level Earned Value 

Management (EVM) Planning and Analysis is attached for review in Figure 8. The project must 

specify a variance threshold for reporting of variances, noting that these thresholds can differ by 

reportable WBS. The project must also determine whether monthly and cumulative explanations 

will be required. Note that different thresholds can be used for the types of variance 

(cost/schedule/at complete), current versus cumulative, and even by WBS element. Note that 

formal variance analysis reporting may be too time-consuming and expensive for smaller 

contracts.

7. Summary

The table below summarizes some of the options for obtaining the information needed to support 

earned value planning and analysis.

Element: Actual Cost Cost Plans Forecast Work Status

Variance 

Explanation

Source For: ACWP (AC) BCWS (PV) 

BAC

EAC

ETC 

BCWP (EV) Analysis

Options: NF 533

DRD 

(Figure 1)

Contractor 

System 

Access 

Estimates

Developed by 

NASA PM

DRD 

(Figure 3)

Developed 

by NASA 

PM

DRD 

(Figure 4)

IMS Status 

Meetings

DRD 

(Figures 5 & 

6)

Status 

Meetings DRD 

(Figure 7)

Formal 

Reporting

DRD 

(Figure 8)

The options selected for obtaining the necessary data elements will depend on several factors 

including contract type, value, and the NASA PM’s needs. For example, firm fixed price 

contracts usually provide a payment plan that can be used for planning, actual and earned data.

The COTR or contracting officer should be able to provide variance data on these contracts.

Small cost plus contracts are a little more complicated and require additional DRD data from the 

contractor. A cost plan, an IMS, 533 actual cost reporting and monthly status meetings for the 
NASA EVM Implementation Handbook Page E-5

variance data may be required. Support contracts are usually managed by a Project Control 

Account Manager (P-CAM), so the planning and status is often maintained in the project IMS.

Figure 1. Sample Data Requirements Description (DRD)

TITLE: Actual Cost Data in Support of Project-Level Earned Value Management (EVM) 

Planning and Analysis

DESCRIPTION/USE: To provide information for: (1) collecting and assessing actual costs , (2) 

supporting project analysis, (3) and providing valid, timely project status information to higher 

management.

PRIMARY RESPONSIBILITY: Center EVM Focal Point

DISTRIBUTION: Per Contracting Officer’s letter

INITIAL SUBMISSION: 30 days after Authorization to Proceed

SUBMISSION FREQUENCY: Monthly; 12 working days after close of accounting month

REMARKS: This DRD will be used when the contractor is performing work in support of a 

NASA project that is using Earned Value Management.

INTERRELATIONSHIP: The actual cost received in this format must reconcile with the 

NASA Form 533 and come from the contractor’s internal accounting system. The reporting 

structure for the actual costs aligns with the Work Breakdown Structure (WBS) elements 

specified for reporting. 

DATA PREPARATION INFORMATION:

SCOPE: This report will be used as the basis for integration of project cost, schedule, and 

technical data to support project-level EVM planning and analysis.

APPLICABLE DOCUMENTS: NASA Form 533 M and Q, Work Breakdown Structure 

(WBS) 

CONTENTS: Include the beginning and end dates of the accounting month for which the actual 

costs and hours were consumed. Include the name of the contract and the associated work order, 

task order, job order, or other unique project identifier. Provide cost information, hours and or 

WYEs consumed by the specified WBS.

Beginning of Period:

End of Period:

Contract Name:

Work/Task/Job Order #:
NASA EVM Implementation Handbook Page E-6

WBS # WBS Description Hours/WYEs Actual Cost

123456.01 Project Management

123456.02 Systems Engineering

123456.03 Safety & Mission Assurance

123456.04 Science/Technology

123456.05 Payloads

123456.06 Spacecraft

123456.07 Mission Operations

123456.08 Launch Vehicle/Services

123456.09 Ground Systems

123456.10 Systems Integration & 

Testing

123456.11 Education & Public 

Outreach

TOTAL

FORMAT: Electronic versions shall be compatible with Microsoft Excel. Contractor formats 

that provide all required data are acceptable.

UNITS: [NASA Project Manager must specify the units needed, such as hours, WYEs, dollars, 

etc.]

MAINTENANCE: None required
NASA EVM Implementation Handbook Page E-7

Figure 2. Sample Data Requirements Description (DRD)

TITLE: Direct and Indirect Rates

DESCRIPTION/USE: To provide information for: (1) developing and maintaining a project 

Performance Measurement Baseline (PMB) and Estimate At Complete (EAC) forecast, (2) 

supporting project analysis, (3) and providing valid, timely project status information to higher 

management.

PRIMARY RESPONSIBILITY: Center EVM Focal Point

DISTRIBUTION: Per Contracting Officer’s letter

INITIAL SUBMISSION: 30 days after Authorization to Proceed

SUBMISSION FREQUENCY: Quarterly 

REMARKS: This DRD will be used when the contractor is performing work in support of a 

NASA project that is using Earned Value Management.

INTERRELATIONSHIP: The rates must reconcile back to other deliverables supporting 

NASA’s Program, Planning, Budget, and Execution (PPBE) process and other DRDs in support 

of project-level EVM planning and analysis.

DATA PREPARATION INFORMATION:

SCOPE: This report will be used as the basis for integration of project cost, schedule, and 

technical data to support project-level EVM planning and analysis.

APPLICABLE DOCUMENTS: Work Breakdown Structure (WBS) Data Requirements 

Description (DRD), NASA Form 533M and Q, Other Budget and Operating Plan DRDs

CONTENTS: For each of the elements below, provide the rates escalated by year for the life of 

the contract:

Direct Rates (prime and subcontractors):

Indirect Rates:

Fringes - all pools:

G&A Rate:

Overhead Rate:

FORMAT: Electronic versions shall be compatible with Microsoft Excel. Contractor formats 

that provide all required data are acceptable.

UNITS: [NASA Project Manager must specify the basis for the rate, for example hourly or 

annualized rates.]

MAINTENANCE: None required
NASA EVM Implementation Handbook Page E-8

Figure 3. Sample Data Requirements Description (DRD)

TITLE: Time-Phased Cost Plans in Support of Project-Level Earned Value Management (EVM) 

Planning and Analysis

DESCRIPTION/USE: To provide information for: (1) developing and maintaining a project 

Performance Measurement Baseline (PMB), (2) supporting project analysis, (3) and providing 

valid, timely project status information to higher management.

PRIMARY RESPONSIBILITY: Center EVM Focal Point

DISTRIBUTION: Per Contracting Officer’s letter

INITIAL SUBMISSION: 90 days after Authorization to Proceed

SUBMISSION FREQUENCY: Monthly; 12 working days after close of accounting month

REMARKS: This DRD will be used when the contractor is performing work in support of a 

NASA project that is using Earned Value Management.

INTERRELATIONSHIP: The reporting structure for the cost plans align with the Work 

Breakdown Structure. The cost plans must reconcile back to other deliverables supporting 

NASA’s Program, Planning, Budget, and Execution (PPBE) process.

DATA PREPARATION INFORMATION:

SCOPE: This report will be used as the basis for integration of project cost, schedule, and 

technical data to support project-level EVM planning and analysis.

APPLICABLE DOCUMENTS: Work Breakdown Structure (WBS) Data Requirements 

Description (DRD), NASA Form (NF) 533 M and Q, Other Budget and Operating Plan DRDs

CONTENTS: Define the beginning and end dates of the period for the current month. Include 

the name of the contract and the associated work order, task order, job order, or other unique 

project identifier. Plans must be time-phased by month and by customer-specified Work 

Breakdown Structure (WBS) and include all authorized work scope. Specify the month and year 

in each column. Provide a description of any authorized changes to the cost plans from the 

previous month that exceed +/- [NASA Project Manager specified threshold(s)] of the total cost 

plan for each WBS element specified for reporting. Authorized changes include allocation of 

management reserve, changes to time-phasing due to internal replanning or formal 

reprogramming, contract changes, rephasing of budgets, etc. Note that pure cost growth for inscope work is reflected as a change to the forecast, not as a cost plan change. Include the reason 

for the change, impacts to current activities, impacts to overall cost and schedule, and any 

corrective actions required.

Beginning of Period:

End of Period:

Contract Name:

Work/Task/Job Order #:
NASA EVM Implementation Handbook Page E-9

WBS # WBS Description

Current 

Month

Current 

Month 

+ 1

Current 

Month 

+ 2

Current 

Month 

+ 3

Current 

Month 

+ 4

Current 

Month 

+ n Total

123456.01 Project 

Management

123456.02 Systems 

Engineering

123456.03 Safety & Mission 

Assurance

123456.04 Science/Technology

123456.05 Payloads

123456.06 Spacecraft

123456.07 Mission Operations

123456.08 Launch 

Vehicle/Services

123456.09 Ground Systems

123456.10 Systems Integration 

& Testing

123456.11 Education & Public 

Outreach

TOTAL

FORMAT: Electronic versions shall be compatible with Microsoft Excel. Contractor formats 

that provide all required data are acceptable.

UNITS: [NASA Project Manager must specify units, e.g. hours, WYEs, or dollars]

MAINTENANCE: None required
NASA EVM Implementation Handbook Page E-10

Figure 4. Sample Data Requirements Description (DRD)

TITLE: Time-Phased Cost Forecast in Support of Project-Level Earned Value Management 

(EVM) Planning and Analysis

DESCRIPTION/USE: To provide information for: (1) developing and maintaining a project 

Performance Measurement Baseline (PMB), (2) supporting project analysis, (3) and providing 

valid, timely project status information to higher management.

PRIMARY RESPONSIBILITY: Center EVM Focal Point

DISTRIBUTION: Per Contracting Officer’s letter

INITIAL SUBMISSION: 90 days after Authorization to Proceed

SUBMISSION FREQUENCY: Monthly; 12 working days after close of accounting month.

Comprehensive forecast annually to coincide with NASA’s Program, Planning, Budget, and 

Execution (PPBE) process.

REMARKS: This DRD will be used when the contractor is performing work in support of a 

NASA project that is using Earned Value Management.

INTERRELATIONSHIP: The reporting structure for the cost plans align with the Work 

Breakdown Structure. The cost plans must reconcile back to other deliverables supporting 

NASA’s PPBE process.

DATA PREPARATION INFORMATION:

SCOPE: This report will be used as the basis for integration of project cost, schedule, and 

technical data to support project-level EVM planning and analysis.

APPLICABLE DOCUMENTS: Work Breakdown Structure (WBS) Data Requirements 

Description (DRD), NASA Form 533M and Q, Other Budget and Operating Plan DRDs

CONTENTS: Define the beginning and end dates of the period for the current month. Include 

the name of the contract and the associated work order, task order, job order, or other unique 

project identifier. Forecasts must be time-phased by month and by customer-specified Work 

Breakdown Structure (WBS) and include all authorized work scope. Specify the month in each 

column and expand the format as necessary to capture all authorized work scope. Provide a 

description of any changes to the estimate from the previous month that exceed +/- [NASA 

Project Manager specified threshold(s)] of the total cost forecast for each WBS element specified 

for reporting. Include the reason for the change, impacts to current activities, and impacts to 

overall cost and schedule.

Beginning of Period:

End of Period:

Contract Name:

Work/Task/Job Order #:
NASA EVM Implementation Handbook Page E-11

WBS # WBS Description

Current 

Month

Current 

Month 

+ 1

Current 

Month 

+ 2

Current 

Month 

+ 3

Current 

Month 

+ 4

Current 

Month 

+ n Total

123456.01 Project 

Management

123456.02 Systems 

Engineering

123456.03 Safety & Mission 

Assurance

123456.04 Science/Technology

123456.05 Payloads

123456.06 Spacecraft

123456.07 Mission Operations

123456.08 Launch 

Vehicle/Services

123456.09 Ground Systems

123456.10 Systems Integration 

& Testing

123456.11 Education & Public 

Outreach

TOTAL

FORMAT: Electronic versions shall be compatible with Microsoft Excel. Contractor formats 

that provide all required data are acceptable.

UNITS: [NASA Project Manager must specify units, e.g. hours, WYEs, or dollars]

MAINTENANCE: None required
NASA EVM Implementation Handbook Page E-12

Figure 5. Sample Data Requirements Description (DRD)

TITLE: Measurement of Work Accomplishment Status in Support of Project-Level Earned 

Value Management (EVM) Planning and Analysis

DESCRIPTION/USE: To provide information for: (1) supporting project analysis and (2) and 

providing valid, timely project status information to higher management.

PRIMARY RESPONSIBILITY: Center EVM Focal Point

DISTRIBUTION: Per Contracting Officer’s letter

INITIAL SUBMISSION: 90 days after Authorization to Proceed

SUBMISSION FREQUENCY: Monthly; 12 working days after close of accounting month

REMARKS: This DRD will be used when the contractor is performing work in support of a 

NASA project that is using Earned Value Management.

INTERRELATIONSHIP: The reporting structure for the cost plans align with the Work 

Breakdown Structure. The cost plans must reconcile back to other deliverables supporting 

NASA’s Program, Planning, Budget, and Execution (PPBE) process. The 

DATA PREPARATION INFORMATION:

SCOPE: This report will be used as the basis for integration of project cost, schedule, and 

technical data to support project-level EVM planning and analysis.

APPLICABLE DOCUMENTS: Work Breakdown Structure (WBS) Data Requirements 

Description (DRD) and Monthly Status Review DRDs

CONTENTS: Include the contract name and work/task/job order number (or other unique 

project identifier) associated with the report. The contractor will provide a current month and 

cumulative since inception dollarized status of work accomplished by each WBS item specified 

for reporting. Cumulative status of tasks is represented by a percent complete assessment based 

on objective measures and exit criteria. The status is then dollarized by multiplying the percent 

complete status by the total budget for each WBS specified for reporting in the WBS DRD. To 

calculate a dollarized current month status, subtract last month’s cumulative by this month’s.

Beginning of Period:

End of Period:

Contract Name:

Work/Task/Job Order #:
NASA EVM Implementation Handbook Page E-13

WBS # WBS Description

Total 

Budget 

($K)

Current Month

Cumulative Since 

Inception

% 

Complete

Dollarized 

Status ($K)

% 

Complete

Dollarized 

Status ($K)

123456.01 Project 

Management

200 20 40 50 100

123456.02 Systems 

Engineering

123456.03 Safety & Mission 

Assurance

123456.04 Science/Technology

123456.05 Payloads

123456.06 Spacecraft

123456.07 Mission Operations

123456.08 Launch 

Vehicle/Services

123456.09 Ground Systems

123456.10 Systems Integration 

& Testing

123456.11 Education & Public 

Outreach

FORMAT: Electronic versions shall be compatible with Microsoft Excel. Contractor formats 

that provide all required data are acceptable.

UNITS: [NASA Project Manager must specify the units needed, such as hours, WYEs, dollars, 

etc.]

MAINTENANCE: None required.
NASA EVM Implementation Handbook Page E-14

Figure 6. Sample Data Requirements Description (DRD)

TITLE: Cost Weighted Milestone Methodology in Support of Project-Level Earned Value 

Management (EVM) Planning and Analysis

DESCRIPTION/USE: To provide information for: (1) supporting project analysis, (2) assessing 

progress and (3) and providing valid, timely project status information to higher management.

PRIMARY RESPONSIBILITY: Center EVM Focal Point

DISTRIBUTION: Per Contracting Officer’s letter

INITIAL SUBMISSION: 90 days after Authorization to Proceed

SUBMISSION FREQUENCY: Monthly; 12 working days after close of accounting month

REMARKS: This DRD will be used when the contractor is performing work in support of a 

NASA project that is using Earned Value Management.

INTERRELATIONSHIP: The reporting structure for the cost plans align with the Work 

Breakdown Structure. The cost plans must reconcile back to other deliverables supporting 

NASA’s Program, Planning, Budget, and Execution (PPBE) process.

DATA PREPARATION INFORMATION:

SCOPE: This report will be used as the basis for integration of project cost, schedule, and 

technical data to support project-level EVM planning and analysis.

APPLICABLE DOCUMENTS: Work Breakdown Structure (WBS) Data Requirements 

Description (DRD)

CONTENTS: The contractor will use a cost weighted milestone methodology to provide a 

dollarized status of the work accomplished each month. This requires that each sub-task be 

broken down into monthly cost weighted milestones that represent a portion of the total sub-task 

budget. It is important that the sum of all cost weighted milestones must equal 100% of the 

planned subtask budget. On a monthly basis, a report will be generated which captures the 

―dollarized‖ planned accomplishments compared to the actual accomplishments.

On a monthly basis, determine, document and update the status of each of the scheduled 

milestone accomplishments for the month and make a definitive determination as to whether or 

not the effort is completed. Each milestone or task will use a 0/100 performance measurement 

methodology where performance is not earned until the milestone or task is completely finished.

This will aid in achieving objectivity where progress and cost is concerned. An example of the 

process is outlined below.

FORMAT: Electronic versions shall be compatible with Microsoft Excel. Contractor formats 

that provide all required data are acceptable.

UNITS: [NASA Project Manager must specify units, e.g. hours, WYEs, or dollars]

MAINTENANCE: None required
NASA EVM Implementation Handbook Page E-15

15 5 20 10

5 20 15

JAN FEB MAR APR

25 10

20 35

10 10 10

20 35

50 40

Step 2

Define and Cost 

Weight Milestones 

in Sub-Tasks

Step 4

Report on Cost, 

Schedule and 

Performance

Using 0/100 Technique

Earned 75 100 55 125

85 90 75 105

Step 3

Develop Monthly 

Budgets that Align 

with Schedule

5 20 15

JAN FEB MAR APR

85 90 75 105

25 10

20 35

10 10 10

20 35

15 5 20 10

50 40

Budget

1

2

6

7

3

4

5

Step 1

Develop and “Dollarize” 

the Schedule based on 

the Sub-tasks

JAN FEB MAR APR

30

90

55

50

40

55

35

JAN FEB MAR APR

25 10

15 5 20 10

20 35

5 20

10 10 10

50 40

20 35

15

Total = $ 355

= 35

= 50

55 =

= 30

40 =

90 =

55 =

Total = $ 355

Variance (10) 10 (20) 20
NASA EVM Implementation Handbook Page E-16

Figure 7. Sample Data Requirements Description (DRD)

TITLE: Monthly Status Reviews (MSRs) in Support of Project-Level Earned Value 

Management (EVM) Planning and Analysis

DESCRIPTION/USE: To provide information for: (1) supporting project analysis and (2) and 

providing valid, timely project status information to higher management.

PRIMARY RESPONSIBILITY: Center EVM Focal Point

DISTRIBUTION: Per Contracting Officer’s letter

INITIAL SUBMISSION: 90 days after Authorization to Proceed

SUBMISSION FREQUENCY: Monthly; 15 working days after close of accounting month

REMARKS: This DRD will be used when the contractor is performing work in support of a 

NASA project that is using Earned Value Management.

INTERRELATIONSHIP: The reporting structure aligns with the Work Breakdown Structure. 

The cost plans must reconcile back to other deliverables supporting NASA’s Program, Planning, 

Budget, and Execution (PPBE) process. The 

DATA PREPARATION INFORMATION:

SCOPE: This report will be used as the basis for integration of project cost, schedule, and 

technical data to support project-level EVM planning and analysis.

APPLICABLE DOCUMENTS: Work Breakdown Structure (WBS) Data Requirements 

Description (DRD), NASA Form 533M and Q, Other Budget and Operating Plan DRDs, Other 

Monthly Status Reviews DRDs

CONTENTS: The contractor will conduct a Monthly Status Review (MSR) with NASA to 

include the following information:

Comparison of the dollarized work accomplished to the cost plan for each WBS specified for 

reporting in the WBS DRD (both cumulatively since inception and current month). This 

represents the schedule variance.

Comparison of the dollarized work accomplished to the actual cost incurred to accomplish that 

work (both cumulatively since inception and current month). This represents the cost variance.

Comparison of the Budget At Complete (BAC) to the latest forecasted Estimate At Complete 

(EAC). This represents the Variance At Complete (VAC).

Explanation of variances that exceed +/- [NASA Project Manager specified threshold(s)] must be 

explained and include the reason for the variance, the impact to the immediate task and overall 

cost and schedule at completion (if none, explain why), and any corrective actions that will be 

undertaken to recover.

FORMAT: Electronic versions shall be compatible with Microsoft Excel. Contractor formats 

that provide all required data are acceptable.

UNITS: [NASA Project Manager must specify units, e.g. hours, WYEs, or dollars]

MAINTENANCE: None required
NASA EVM Implementation Handbook Page E-17

Figure 8. Sample Data Requirements Description (DRD)

TITLE: Variance Explanations in Support of Project-Level Earned Value Management (EVM) 

Planning and Analysis

DESCRIPTION/USE: To provide information for: (1) supporting project analysis and (2) and 

providing valid, timely project status information to higher management.

PRIMARY RESPONSIBILITY: Center EVM Focal Point

DISTRIBUTION: Per Contracting Officer’s letter

INITIAL SUBMISSION: 90 days after Authorization to Proceed

SUBMISSION FREQUENCY: Monthly; 12 working days after close of accounting month

REMARKS: This DRD will be used when the contractor is performing work in support of a 

NASA project that is using Earned Value Management.

INTERRELATIONSHIP: The reporting structure aligns with the Work Breakdown Structure. 

The cost plans must reconcile back to other deliverables supporting NASA’s Program, Planning, 

Budget, and Execution (PPBE) process.

DATA PREPARATION INFORMATION:

SCOPE: This report will be used as the basis for integration of project cost, schedule, and 

technical data to support project-level EVM planning and analysis.

APPLICABLE DOCUMENTS: Work Breakdown Structure (WBS) Data Requirements 

Description (DRD), NASA Form 533M and Q, Other Budget and Operating Plan DRDs, 

Monthly Status Reviews DRDs

CONTENTS: The contractor will provide variance explanations on a monthly basis for all 

variances that exceed +/- [NASA Project Manager specified threshold(s)] on a [NASA Project 

Manager specified current and/or cumulative basis]. For each WBS specified for reporting, 

provide the following information:

WBS number and Description:

Type and Magnitude of Variance. For type, select from the following:

Schedule Variance: Comparison of the dollarized work accomplished to the cost plan for each 

WBS specified for reporting in the WBS DRD (both cumulatively since inception and current 

month).

Cost Variance: Comparison of the dollarized work accomplished to the actual cost incurred to 

accomplish that work (both cumulatively since inception and current month).

Variance At Complete (VAC): Comparison of the Budget At Complete (BAC) to the latest 

forecasted Estimate At Complete (EAC).

Effect on the immediate task

Effect on the overall contract

Corrective actions taken or planned
NASA EVM Implementation Handbook Page E-18

FORMAT: Electronic versions shall be compatible with Microsoft Excel. Contractor formats 

that provide all required data are acceptable.

UNITS: [NASA Project Manager must specify units, e.g. hours, WYEs, or dollars]

MAINTENANCE: None required
NASA EVM Implementation Handbook Page F-1

APPENDIX F. SAMPLE EVM STATUS REPORT

SCHEDULE PERFORMANCE Y 6

COST PERFORMANCE Y 6

TO MEET BUDGET AT COMPLETION (BAC) R 6

TO MEET CONTRACTOR'S LATEST REVISED 

ESTIMATE (LRE) R 5

January 2008

Performance Indicator Key At Completion Indicator Key

Worse than -10% R TCPI > CPI by more than 5%

Between -10% and -5% Y TCPI > CPI by less than 5%

Better than -5% G TCPI < CPI

Change Threshold = 5%

$$ in Thousands BCWS BCWP Funding Status

Current Pd. 1,645 1,509 -136.2 -8.3% Y 6 -197.8 -13.1% R 6 $$ in Millions

Cumulative 7,279 6,851 -427.8 -5.9% Y 6 -499.0 -7.3% Y 6

NASA Ktr.

BAC 20,796 5

EAC 22,480 20,761 6

VAC 35 6

EAC Forecast Min. Max SPI Current 0.92 6

22,022 23,385 Cumulative 0.94 6

22,480 CPI Current 0.88 6

Cumulative 0.93 6

Percent Scheduled 35.0 %

Percent Complete 32.9 % 3 Mo. Avg CPI 0.95

Percent Spent 35.3 % 6 Mo. Avg CPI 0.92

3 Mo. Avg Spend Rate 1,441 (7%) To Compl Perf Index (TCPI) BAC 1.04 5

6 Mo. Avg Spend Rate 1,067 (5%) To Compl Perf Index (TCPI) LRE 1.04 6

1,707

7,350

January 2008

Dollars in Thousands

ACWP Schedule Variance Cost Variance 20.420.8 20.8

22.0

23.4 PMB PMB + MR LRE

R Worse than -10% G Better than -5%

Y Between -10% and -5% Change Threshold = 5%

Variance Status Indicator Key

EVM Quick-Look Report
NASA EVM Implementation Handbook Page F-2

Cost/Schedule Variance Trends

WBS Description SPI SV CV

1 3200 COMMUNICATIONS R 5 R 6 G 1 0.78 (203) (131)

2 3700 DATA DISPLAY R 5 G 1 G 1 0.59 (113) 0

3 3300 AUX EQUIP R 6 G 6 G 6 0.88 (93) 78

4 3100 SENSORS Y 5 G 6 G 1 0.91 (37) (11)

5 2100 PROJ MANAGEMENT G 5 Y 1 G 1 0.96 (12) (17)

Top Schedule Variances

SV CV VAC WBS Description CPI SV CV

1 3600 PCC G 6 R 5 G 1 0.85 (11) (296)

2 3200 COMMUNICATIONS R 5 R 6 G 1 0.84 (203) (131)

3 2200 SYS ENGINEERING G 1 R 6 G 1 0.90 6 (26)

4 3800 I & A G 6 G 6 G 1 0.96 83 (24)

5 2300 FUNC INTEGRA G 6 Y 6 Y 1 0.95 (8) (17)

SV CV VAC

Top Cost Variances

WBS Description CPI SV CV

1 3200 COMMUNICATIONS R 5 R 6 G 1 0.84 (203) (131)

2 3600 PCC G 6 R 5 G 1 0.85 (11) (296)

3

4

5

Top LRE Issues

SV CV VAC

Cumulative to Date Dollars 

Top Issues Summary

• The Cost/Schedule Variance Chart 

graphically depicts the cost and 

schedule variances in percentages, and 

provides the associated values in 

dollars (in thousands).

• Currently, the contractor has an 

unfavorable schedule variance of -

427.8 (-5.9%) and an unfavorable cost 

variance of -499.0 (-7.3%)

• The Budget at Completion (BAC) is 

20,796 and the effort is 33% complete.

• The contractor's Latest Revised 

Estimate (LRE), which depicts their 

Estimate at Completion (EAC), is 

20,761, which is 35 less than the BAC.

-30.0

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

2007

APR MAY JUN JUL AUG SEP OCT NOV DEC

2008

JAN

-Cost/Schedule Variance- MEGA HERZ ELEC & VEN F04695-07-C-0050 FPI RDPR Name: MOH-2 Element: 1000 

Cost Var 13.01 4.86 -0.38 -1.29 -7.92 1.13 -10.39 -12.24 -5.64 -7.28

Schd Var 0.00 -28.41 -8.78 -5.38 -2.76 -0.67 8.94 -9.78 -5.18 -5.88
NASA EVM Implementation Handbook Page F-3

Estimate at Completion Comparison

To Complete Performance Index (TCPI)

• The LRE Validity Chart compares the 

contractor's Latest Revised Estimate (LRE) 

to several statistically derived values for 

the Estimate at Completion (EAC). The 

LRE and EAC are terms that are often used 

interchangeably, representing the 

estimate of the total direct charges 

against the contract. The LRE should be 

somewhere within the range of the 

calculated values.

• Currently, MOH-2 - Mohawk Vehicle LRE 

of 20,761 is 35 less than the BAC

• The LRE appears to be below the range of 

the statistically derived values.

• Since the LRE falls outside the range of 

15.0

16.0

17.0

18.0

19.0

20.0

21.0

22.0

23.0

2007

APR MAY JUN JUL AUG SEP OCT NOV DEC

2008

JAN

EAC Validity MEGA HERZ ELEC & VEN F04695-07-C-0050 FPI RDPR Name: MOH-2 Element: 1000 

LRE 16.95 16.95 16.95 16.95 17.07 17.07 17.07 17.25 19.39 20.76

BAC 17.20 17.20 17.20 17.20 17.20 17.20 17.20 17.80 20.08 20.80

3 Mo Avg 14.97 16.37 17.27 17.78 19.01 16.94 19.67 20.33 21.92 22.02

6 Mo Avg 14.97 16.37 17.27 17.43 18.57 17.01 19.15 20.15 21.29 22.44

Cum CPI 14.97 16.37 17.27 17.43 18.57 17.01 18.99 19.98 21.21 22.31

Cost Schd 16.00 19.43 18.01 17.78 18.16 17.14 17.52 19.88 21.20 22.24

Dod Std 14.97 22.77 18.88 18.36 19.05 17.11 17.83 21.87 22.15 23.39

• The To-Complete Performance Index 

(TCPI) chart illustrates the efficiency rate 

that the contractor must accomplish to 

meet the BAC or LRE, based on the 

contractor's performance to date.

• To date, the cost performance efficiency 

has been 0.932. In other words, for each 

dollar spent, the contractor has 

accomplished $0.93 worth of the work 

budgeted.

• To meet the BAC, the contractor must 

accomplish $1.04 of work for each dollar 

spent.

• Given the performance to date, it does 

not seem likely that the contractor will 

be able to meet the BAC.

• To meet the LRE, the contractor must 

accomplish $1.04 of work for each dollar 

spent.

• Given the performance to date, it does 

not seem likely that the contractor will 

be able to meet the LRE.

0.700

0.750

0.800

0.850

0.900

0.950

1.000

1.050

1.100

1.150

1.200

2007

APR MAY JUN JUL AUG SEP OCT NOV DEC

2008

JAN

-TCPI Index- MEGA HERZ ELEC & VEN F04695-07-C-0050 FPI RDPR Name: MOH-2 Element: 1000 

CPI Cum 1.150 1.051 0.996 0.987 0.927 1.011 0.906 0.891 0.947 0.932

SPI Cum 1.000 0.716 0.912 0.946 0.972 0.993 1.089 0.902 0.948 0.941

TCPI-BAC 0.999 0.999 1.000 1.001 1.007 0.998 1.020 1.034 1.021 1.037

TCPI-LRE 1.014 1.014 1.015 1.016 1.016 1.008 1.030 1.078 1.072 1.040
NASA EVM Implementation Handbook Page G-1

APPENDIX G. EVMS ACCEPTANCE PROCESS

1.1 Overview

The EVMS acceptance process applies to those NASA suppliers that require EVMS compliance 

and acceptance when the supplier does not have a current EVMS validation. The OMB and 

NASA recognize the DCMA acceptance of contractor EVMS compliance. NASA employs 

DCMA for the contractor EVMS acceptance process. NASA has a Memorandum of 

Understanding (MOU) with DCMA (located at http://evm.nasa.gov/mou.html) that assigns

responsibility for the validation and surveillance of a contractor’s EVMS to DCMA. An 

overview of NASA’s approach for validating a contractor’s EVMS is shown in Figure G.1-1. A 

more detailed description of this process is provided in the NASA Acceptance and Surveillance 

Implementation Instructions and Job Aids, the Department of Defense Earned Value 

Management Implementation Guide (EVMIG) and the NDIA PMSC Earned Value Management 

System Acceptance Guide located at 

http://www.ndia.org/Divisions/Divisions/Procurement/Pages/Program_Management_Systems_C

ommittee.aspx.

For those suppliers that DCMA is not delegated acceptance authority such as civilian agencies, 

universities, not for profits, etc. NASA will serve as the acceptance authority. The OCE will 

assign the Compliance Evaluation Team Lead with support of the program/project managers 

and/or Mission Directorate. The acceptance process will follow the same steps as the DCMA led 

compliance reviews. 

Figure G.1-1 Contractor EVMS Acceptance Process Overview

Process 

Steps Planning Design & Implementation Review Assessment Acceptance

Acceptance 

Authority 

(DCMA)

Compliance 

Evaluation 

Review 

(CER) 

Team 

NASA 

Project 

Office/CO

EVM

System 

Owner/User

(Contractor)

Develop 

Surveillance & 

System Revision 

Procedure

Submit 

CER 

Report

Implement 

Surveillance & 

System Revision 

Procedure

Conduct 

Progress 

Assessment

Review 

(PAR)/ 

Conduct 

CER

Establish 

EVMS Policy/ 

System

Accept 

NASA 

EVMS 

Delegation

Issue 

Compliance 

Recognition 

Document

Issue 

DCMA 

EVMS 

Delegation

Execute 

approved EVMS 

Plan/Project

Prepare 

EVMS 

CER Plan

Monitor 

EVMS 

Progress/ 

CER 

Readiness

Comments on 

CER Report

Prepare 

CER 

Report

Demonstrate 

Knowledge and Use 

of EVMS during 

PAR and CER

Conduct Self 

Assessment 

Review

No Yes Accept
NASA EVM Implementation Handbook Page G-2

2.1 Roles and Responsibilities

The roles and responsibilities are summarized below. 

 Defense Contract Management Agency (DCMA) serves as the ―Acceptance Authority‖

DCMA is the DOD Executive Agent for EVM and Contractor EVMS Compliance with 

ANSI/EIA-748

o Assigns the Review Director for the Compliance Evaluation Review (CER)

o Issues Compliance Recognition Document (e.g. Advance Agreement or other 

document) with contractor once EVMS is accepted

 The CER Team is led by the DCMA Review Director who 

o Establishes team comprised of DCMA EVMS support and Defense Contract Audit 

Agency (DCAA) if applicable; applicable NASA Center EVMFP and/or Mission 

Directorate EVMFP; NASA Project Office; NASA EVMFP; and NASA support 

contractor EVM/Schedule Subject Matter Experts

o Plans review approach/requirements with Contractor and NASA Project Office

o Conducts the review and documents compliance

 The NASA Project Office and Contracting Officer (CO) serve as the ―customer‖ for the 

contractor

o Ensures EVMS requirement (NFS EVMS, reporting, etc.) is incorporated into the 

solicitation/contract

o Delegates EVMS system acceptance and surveillance to DCMA 

o Participates in the CER

o Documents approved EVMS in the contract per the NFS EVMS clause

 

 EVM System Owner is the contractor with the EVMS requirement

o Develops and maintains EVMS Implementation Plan

o Establishes and implements the EVMS (policies, processes, resources, tools, training)

o Supports the CER team during the system acceptance process 

o Demonstrates EVMS compliance with the ANSI/EIA-748

3.1 Contractor EVMS Acceptance Approach

3.1.1 Planning

Prior to contract award, the NASA CO with assistance from the Source Evaluation Board, the 

EVMFP and DCMA (if required), reviews the contractor proposed EVMS Implementation Plan

required to be submitted with the proposal. Once the contract is awarded, the contractor 

executes the EVMS Implementation Plan. The CO for the NASA Project Office delegates 

EVMS system acceptance and surveillance to DCMA. The DCMA will assign the Review 

Director who will prepare the CER plan jointly with the contractor and the NASA Project Office. 

This plan will address the applicable interim reviews such as the contractor Self-Assessment 

Review, Progress Assessment Review (s) and the CER. 

The primary products from this step include the contractor EVMS Implementation Plan, the CO 

delegation letter to DCMA and the initial CER Plan.
NASA EVM Implementation Handbook Page G-3

If the NASA Project Office and CO do not delegate system acceptance and surveillance to 

DCMA (may not be appropriate for universities, government agencies, etc.) or DCMA is unable 

to accept the delegation, then the Project Manager is responsible for conducting the review and 

requesting the assistance of the Center EVMFP. 

3.1.2 Design and Implementation

The contractor executes the EVMS Implementation Plan which includes the schedule with 

resources assigned to ensure proper and effective design, documentation, implementation, and 

maintenance of the management system that complies with ANSI/EIA-748. The contractor 

establishes EVM policy followed by the development and implementation of an EVMS. There 

are several approaches to documenting the processes involved in the structure of an EVMS. A 

typical approach is a single document referred to as a ―system description‖ that describes how 

the program management processes and procedures meet the intent of ANSI/EIA-748. 

Implementation of the EVMS occurs during the system design and documentation process. As 

the processes are implemented, feedback on the effectiveness and accuracy of system 

documentation and procedures is important to ensure that needed improvements are incorporated 

in a timely manner. Keep in mind that the contractor is obligated to implement the planning and 

control processes to ensure establishment of a reliable preliminary PMB and support the IBR 

required within 180 calendar days after contract award. 

The contractor should also conduct internal training in both the basic concepts of EVM and 

specific process elements of the EVMS that includes unique project management aspects of the 

system, forms designed for implementation, and process oriented interfaces with other internal 

systems. This training should occur early in the implementation phase. 

During this phase, the CER team will monitor the contractor’s progress toward implementing the 

EVMS, assess the contractor’s readiness to demonstrate a fully integrated EVMS based on the 

results of the contractor’s internal Self-Assessment Review and will also finalize the CER Plan. 

3.1.3 Review

The purpose of the CER (Validation Review) is to conduct a formal assessment of the 

contractor’s proposed management system to verify that the system being reviewed meets the 

intent of ANSI\EIA-748. It is typically conducted onsite within 90 days after implementation of 

the EVMS. The primary objectives are:

 Evaluate the management system capabilities against the ANSI\EIA-748 guidelines

 Assess the description of the management system to determine if it adequately describes the 

management processes demonstrated during the review, and 

 Evaluate the application of the EVMS on the contract being reviewed.

The review consists of system documentation reviews, data traces and discussions with 

contractor personnel (Control Account Managers, Functional Managers, Business Manager, 
NASA EVM Implementation Handbook Page G-4

Project Manager, etc.). During this process step, the contractor demonstrates to the team how the 

EVMS is structured and used in actual operation. Major activities include:

 Findings are documented in a corrective action request (CAR). The CAR is a systemic or 

limited occurrence of an ANSI/EIA-748 non-compliance or a significant impact to reporting 

and requires a corrective action plan (CAP)

 Other issues may be documented in the form of a continuous improvement opportunity. 

During this step the team prepares a written report documenting the activities of the review and

the results. The team’s findings will include actions that are required prior to obtaining 

certification of compliance. The report will reflect how the team verified compliance with the 

guidelines, and that the described system was properly and effectively implemented on the 

contract(s) under review. The CER Report should be finalized within 60 days of the exit 

briefing. 

3.1.4 Acceptance

Before a final decision on acceptance is made, the contractor should provide documentation that 

all corrective actions for CARs have been completed. The Acceptance Authority reviews the 

CER Report and determines that the contractor’s EVMS complies with ANSI/EIA-748 and the 

contract, project or program is using the compliant EVMS. The EVMS compliance recognition 

is a letter or Advance Agreement or other compliance recognition document that clearly 

indicates the system reviewed complies with ANSI/EIA-748. 

Once the acceptance document is issued, the contractor is required to maintain the system and 

implement EVM on contracts requiring EVMS. The contractor should notify the Acceptance 

Authority issuing system compliance recognition when revisions are made to the EVMS (policy, 

process, procedures, or practices). Continued EVMS compliance is determined through 

surveillance. 

After acceptance the DCMA will perform system surveillance as delegated to verify the system 

is being maintained and used by the contractor. The NASA Project Office and applicable Center 

EVMFP should participate in the surveillance process. See Appendix H for an overview of the 

surveillance process. 
NASA EVM Implementation Handbook Page H-1

APPENDIX H. EVMS SURVEILLANCE PROCESS

1.1 Purpose

Surveillance is the process of reviewing the health of the accepted EVMS process applied to 

projects. The purpose is to focus on using the Agency EVMS effectively to manage cost, 

schedule, and technical performance. An effective surveillance process ensures the key elements 

are maintained over time and on subsequent applications. This appendix describes the 

surveillance process for NASA projects with EVM requirements and assigns roles and 

responsibilities to assess the system’s operation. The objectives of surveillance are to:

 Verify compliance with NASA policies related to EVM. 

 Verify compliance with the EVM Systems Description and project EVM Implementation 

Plan. 

 Verify project performance data reliability and consistency.

 Encourage continuous improvement and innovation of the EVMS to include people, 

processes, tools and training.

 Maintain a disciplined process using EVM, including effective teamwork between the project 

and customer.

 Effectively communicate surveillance findings and results including areas where the project 

demonstrates ineffective use of the EVMS.

 Follow-up on the Project’s corrective action to assure the current and any foreseeable 

problems are eliminated. 

 Maintain metrics to determine the effectiveness of the EVMS and to distinguish between 

systemic and non-systemic problems.

 Reduce the cost of surveillance by combining resources to achieve common goals.

1.2 Scope

Surveillance is performed on projects with EVM requirements. It includes in-house efforts as 

well as major contracts with EVM requirements. 

1.3 Applicable Definitions

NASA project EVMS surveillance leverages the NDIA PMSC Surveillance Guide to the extent 

practical. Relevant definitions from the Guide are as follows:

Joint Surveillance: Project surveillance conducted jointly by the supplier and customer (e.g., for 

contractor’s this is typically performed by the contractor’s EVMS organization, the cognizant 

DCMA, and the customer).

Organization: A customer or supplier entity, including agencies responsible for management of 

internal projects using EVMS, prime contractors, subcontractors and inter-organizational 

transfers (IOT), with EVMS ownership and oversight responsibility for one or more sites.

Project Surveillance: The process of reviewing an individual project’s implementation of the 

organization’s accepted EVMS process.

Surveillance Plan: An annual plan that identifies the projects to be included in surveillance 

reviews, as well as the frequency and scope of the individual surveillance visits planned for each 

project included in the annual plan. 
NASA EVM Implementation Handbook Page H-2

Surveillance Program: A surveillance program comprises an organization’s people, processes, 

tools, and training necessary to execute internal and contractor surveillance, independent of 

customer surveillance activities or requirements, for the purpose of ensuring that its projects are 

effectively managed to meet their cost, schedule, and technical objectives.

System Surveillance: Cross-project EVMS surveillance is used to assess an organization’s 

capability to consistently implement and use its accepted EVMS on all projects with EVMS 

requirements. Cross-project EVMS surveillance is also known as system surveillance, because it 

can identify findings common to multiple projects, which are indicative of systemic problems. 

System surveillance therefore comprises a summarization of multi-project surveillance results 

rather than a separate system level surveillance review.

2.1 EVMS Surveillance Process 

2.1.1 Surveillance Overview

Figure H.2-1 shows the key elements of the NASA EVMS assessment strategy. It begins with 

the Agency EVM Capability that was developed by the OCE and tested on pilot projects.

Surveillance is also performed on projects that were approved prior to availability of the NASA 

EVM capability. For these projects, surveillance will focus on compliance with the NASA 

requirements in place at that time and the latest Project Plan. The scope and requirements of 

each review will be described in the Surveillance Review Plan prepared by the IST. 

Figure H.2-1. NASA EVMS Assessment Framework

Project EVMS implementation and compliance is assessed through the surveillance process. 

Project EVMS surveillance begins during Formulation with the establishment of the preliminary 

Performance Measurement Baseline (PMB) for Phase C and conduct of the pre-approval 

integrated baseline review in preparation for KDP C. Figure H.2-2 is an overview of this process.

NASA EVMS

Surveillance EVM CMM

ANSI/EIA-748 Compliant

EVMS Description, EVMS Training, Tools 

Process Improvements

Defines EVM Maturity Levels

EVM CM Assessment Tool

Roadmap for Process Improvements

Program/Project EVMS 

implementation/compliance/use

Process Metrics/Lessons Learned
NASA EVM Implementation Handbook Page H-3

Figure H.2-2. NASA Project Pre Implementation EVMS Surveillance Overview

During Formulation, projects conduct EVM planning which includes obtaining EVMS 

implementation assistance from the Center and OCE EVMFP. Projects should use the Agency 

EVMS to meet their EVM requirements. The focus of project surveillance during Formulation is 

to ensure that the capabilities and processes required for effective project control are in place, or 

will be in place by the start of project Implementation (Phase C) and meet the intent of NPR 

7120.5. The NPR requires Mission Directorates to conduct a pre-approval integrated baseline 

review as part of their preparations for KDP C to ensure the project’s work is properly linked 

with its cost, schedule and risk and that the management processes are in place to conduct project 

level EVM. This review will be conducted in conjunction with the project SRB and PDR 

activities and include an EVM Capability Maturity Assessment by the assigned IST. 

Project specific EVM application and tailoring should be documented in their EVM 

Implementation Plan which is included in their Project Plan (see Appendix J for more detailed 

instruction). This includes identification and management of suppliers with EVM requirements 

(contractors and Intra-Agency); tools used to facilitate EVM implementation and reporting; and 

establishing an EVM Training Plan for applicable project personnel.

Project surveillance continues at Phase C (Implementation) with EVM reporting (see Figure H.2-

3). For contracts with EVM requirements, EVMS surveillance begins at contract award 

regardless of the system acquisition phase. It continues through the compliance or validation 

process if required, and extends throughout the duration of each contract. The Project Manager 

and Contracting Officer (CO) delegate contract EVMS surveillance to DCMA. See paragraph 2.2

below for further guidance.

Process 

Steps Organization Planning Execution Assessment Process Improvements

EVM System 

Owner (OCE)

Mission 

Directorate/

Program 

Office

Applicable 

NASA Center

NASA Project 

Office

Document 

Findings/ 

Process 

Improvements 

(Pre-approval 

IBR Input)

Mentor 

Project 

EVMS 

Actions

Attend EVMS Training; Establish EVMS 

Architecture/Tools; Establish Preliminary 

PMB; Conduct contractor IBRs as required;

Support Pre-approval IBR

Conduct 

EVM 

Capability 

Maturity 

Assessment

Develop EVM 

Implementation 

Plan

(Project Plan)

Identify EVMS 

IST Lead 

(EVMFP)

Disposition EVMS 

Process 

Improvements/ 

Revisions 

Assign Program, 

Planning and 

Control (PP&C) 

Resources for 

EVM 

Implementation

Develop 

EVMS 

Surveillance 

Plan/Team

Comments/ 

Corrective 

Actions

Update EVM 

Implementation 

Plan (Project 

Plan) for KDP C

Provide EVMS Oversight/Guidance /Assistance 
NASA EVM Implementation Handbook Page H-4

Figure H.2-3. NASA Project Post Implementation EVMS Surveillance

2.1.2 Surveillance Approach

The NASA surveillance process is designed to promote a common understanding of the 

expectations for compliance with the requirements of the 32 ANSI/EIA-748 EVMS guidelines.

Surveillance is structured to facilitate the exchange of information about the EVM process 

implementation and the project’s approach to it. It should be approached as a mentoring or 

problem-solving session rather than an audit since it not only identifies inconsistencies but also 

solutions to resolve the problems.

The OCE as the EVM System Owner will establish the annual surveillance plan with assistance 

of the Mission Directorate, Center EVMFP and other support and assign the Integrated ISTs to 

perform project surveillance reviews. The IST lead is appointed by the OCE. Qualifications of 

the IST members include: 

 Multiple-disciplinary knowledge and experience

 Practical experience using EVMS

 Good working relationships (non-adversarial)

 Strong support of EVMS compliance to ensure a logical, practical implementation within the 

EVMS guidelines

 Independent of the project being surveilled

Responsibilities of the IST include:

 Provide input to the annual surveillance plan.

 Develop surveillance plan/requirements for assigned reviews (EVM Capability Maturity 

Assessment (CMA) prior to KDP C, OCE Requirements Compliance Surveys, other KDP 

reviews, etc.)

Process 

Steps Organization Planning Execution Assessment Process Improvements

EVM System 

Owner (OCE)

EVMS IST

Lead

Mission 

Directorate/

Program 

Office

Applicable 

NASA Center

NASA Project 

Office

Data 

Gathering/ 

EVMS 

Process/ 

Performance 

Metrics as 

Required

Execute Project; Support Project IBR; Maintain PMB; Provide Monthly EVM Reporting;

Conduct Supplier IBRs (as required); Perform Internal EVMS Surveillance; Support OCE EVMS

Surveillance Reviews (Demonstrate Compliance, Knowledge and Use of EVMS)

Conduct 

EVMS 

Surveillance 

Review

Assign EVMS 

IST Lead 

Disposition EVMS 

Process 

Improvements/ 

Revisions 

Input to 

Annual 

Surveillance 

Planning

Develop/Implement Corrective 

Actions

Document 

Findings/ 

Process 

Improvements/

Prepare 

Surveillance 

Review Report 

Provide EVMS Oversight/Guidance /Assistance/Compile 

EVMS Process Metrics 

Develop 

Annual 

Surveillance 

Plan

Develop 

Surveillance 

Review 

Plan/Team

Track 

Closure of 

Corrective 

Actions 
NASA EVM Implementation Handbook Page H-5

 Conduct, document and communicate results of surveillance to the project, customer, Center, 

OCE EVMFP

 Track corrective action plans for surveillance findings to closure.

 Develop and maintain surveillance databases and metrics to assess the systemic health of the 

EVMS processes as assessed across multiple reviews.

 Recommend EVMS process implementation and training changes to correct systemic 

findings.

The IST is responsible for documenting findings relevant to the key management processes and 

guidelines. Through data review/traces and manager discussions, the IST will assess the use of 

EVM data and documentation in the operation of the project.

2.1.3 Surveillance Methodology

Surveillance execution is similar to the IBR. The activities are comparable (planning to include 

scope, schedule, and documentation requirements, establishing the team, training, reviewing 

documentation, conducting discussions with the P-CAMs and other relevant project personnel, 

documenting findings and corrective actions, and tracking until closure). The major difference 

between the IBR and surveillance is the focus. The IBR is focused on assessing whether the 

PMB is executable and understood by the project personnel and customer. Surveillance is 

focused on ensuring that the underlying processes that support the PMB are in place, compliant 

with the EVMS guidelines, are routinely being used and providing reliable data. Key 

surveillance activities are discussed below. See the NASA Acceptance and Surveillance 

Instruction and Job Aids located at the NEN Program/Project Management/EVM SubCommittee https://nen.nasa.gov/web/pm/evm for detailed instructions.

Develop Annual Surveillance Plan. This plan, prepared by the Agency EVM Program Executive 

with support of the IST(s) and project inputs, defines an approach for reviewing all major EVM 

processes over the year on multiple projects, allowing flexibility for incorporating changes based 

on project dynamics.

Surveillance Reviews. For NASA projects, surveillance is basically a two-step process: (1) New 

projects with EVM requirements will be reviewed to ensure the Agency EVMS processes and 

procedures are properly tailored to the project and are implemented prior to entering KDP C. The 

IST will review the project EVM Implementation Plan and preliminary PMB planning in 

performing this assessment; and (2) Routine surveillance commences when the project enters 

Implementation (Phase C). This consists of monitoring the Project’s process/performance 

metrics and conducting reviews no more than annually. The project surveillance review should 

be combined with other reviews such as the OCE Requirements Compliance Surveys and IBRs

to minimize disruption to the project.

Discussions. Project Managers, Business Managers, P-CAMs and other key personnel are 

typically interviewed as part of the surveillance review activities to ensure that they conform to 

an acceptable level of comprehension and application of the EVMS. An exception may be the 

EVM Capability Maturity Assessment performed prior to KDP C as part of the pre-approval

IBR. Example questionnaires are included as part of the NASA Acceptance and Surveillance

Instructions and Job Aids to facilitate effective surveillance. Results from these discussions may 

reveal weaknesses in understanding of the process and actual practice. If so, additional training 

may be recommended to improve his/her understanding.
NASA EVM Implementation Handbook Page H-6

Project Data Reviews. Project EVMS documentation will be reviewed to verify that the required 

reports are current and conform to the EVMS process. There are two types of data reviews. The 

first review involves the routine review and monitoring of common metrics typically prepared by 

the project and submitted to the Center/Program Office/Mission Directorates and OCE as 

required. The second type of documentation review involves the review of project EVMS 

documentation and supporting data during the specific surveillance review conducted in 

conjunction with other project reviews such as the life cycle reviews/KDP reviews and the OCE 

Requirements Compliance Survey. The IST will leverage the data, reviews and presentations 

required by these reviews. Examples of additional project EVMS documentation required 

include:

 Project EVM reports (internal contract performance report (CPR) in native file).

 EVM Variance Analysis and corrective action.

 Project schedules (native file)

 Risk management plan and risk register 

 Project EVM Implementation Plan, other Project instructions

 WBS/OBS and the related Dictionary; RAM

 Work Authorization Documents (WAD)

 Control Account Plans (CAPs)

 Project Budget Baseline (PBB), MR and UB logs; baseline change requests

 Staffing plans; Training Plan

 EAC supporting documentation

 IBR Results

 Project Management Review presentations

The NASA Acceptance and Surveillance Instructions and Job Aids also include an EVMS 

Compliance Evaluation Template that can be used by the IST to document their review 

findings/assessments. These Job Aids are similar to those that DCMA uses for contractor 

surveillance but have been updated to reflect NASA’s terminology and processes.

Surveillance Results. The results of the review will be discussed with the project and customer 

and documented. The IST will issue Concern Area Reports (CARs) or equivalent document 

depending on the specific review requirements to document non-compliance findings and require 

corrective action plans. All CARs will be tracked by the project and IST and reported on a 

monthly basis to the OCE. 

Surveillance Products. Table H.2-1 includes a description of typical surveillance products. See 

the NASA Acceptance and Surveillance Instruction and Job Aids for additional information. 
NASA EVM Implementation Handbook Page H-7

Table H. 2-1. NASA EVMS Surveillance Products

2.2 Contractor EVMS Surveillance

NASA employs the DCMA for contractor EVMS acceptance reviews as explained in section

3.3.5 and Appendix G of this handbook. When delegated by the assigned NASA Contracting 

Officer (CO) for the Project, the DCMA is responsible for: 

 System Acceptance: Reviewing contractor EVMS plans and verifying initial compliance with 

ANSI/EIA-748, Industry Guidelines for Earned Value Management Systems.

 System Surveillance: Conducting system surveillance activities that verify the contractor's 

EVMS complies with and meets the full intentions of ANSI/EIA-748. System surveillance 

includes evaluating changes to the contractor's validated EVMS to ensure continuing 

compliance.

When applicable, DCMA will perform system surveillance activities jointly with the contractor.

NASA intends to partner with DCMA to facilitate insightful system surveillance. As a minimum, 

the project EVM analyst (or analyst responsible for EVM) should participate in contractor 

surveillance reviews. Selected IST members such as the Center EVM FP should also supplement 

the DCMA surveillance team.

2.3 The EVM Capability Maturity Model (CMM)

The EVM CMM is a tool developed by the NASA OCE. This tool is derived from features 

within the Management Technologies’ five step Earned Value Management Maturity Model®, 

or EVM3®, to assess the extent to which NASA projects have implemented EVM in accordance 

with NASA policy, EVM Systems Description, other related guidance and best practices.
NASA EVM Implementation Handbook Page H-8

The EVM CMM provides a framework for standardizing and improving the use of EVM within 

NASA. Figure H.2-4 provides an overview of the EVM CMM based on the EVM3®. The levels 

are building blocks. The goals of each level must be met before the next level may be achieved.

To facilitate Agency wide EVMS effectiveness, NASA organizations (programs/projects, 

Centers, and Mission Directorates) should be aware of the established goals for performance and 

what is required to achieve that goal.

Figure H.2-4. NASA EVM CMM (Source: Earned Value Management Maturity Model®, or EVM3®, CPM 

Spring Conference 2001, Ray W. Stratton, Management Technologies, May 2001. Reprinted with 

Permission.)

Level 3 applies to the ―Agency‖ and should be achieved by all Projects with EVM requirements

(ANSI/EIA-748 compliance). The EVM CMM target level for all NASA projects is level 3.

Each level contains Key Process Areas (KPA), goals and applicable features/measurement.

KPAs for levels 1-3 are similar to the major categories of the ANSI/EIA-748 32 EVMS 

Guidelines:

 Organizational (Organization)

 Planning (Planning, Scheduling, and Budgeting)

 Accounting (Accounting Considerations)

 Analysis (Analysis and Management Reports)

 Revisions to the Performance Measurement Baseline (Revisions and Data Maintenance)

Additional KPAs such as EVMS Training, Surveillance and Tools are also included.

The following definitions apply to EVM CMM:

The Earned Value Management Maturity Model ® and abbreviation EMV3® are trademarks of Management Technologies 
NASA EVM Implementation Handbook Page H-9

Goals: A summary of the key practices of a KPA that can be used to determine whether an 

organization or project has effectively implemented the KPA. The goals signify the scope, 

boundaries, and intent of each KPA.

Key Process Areas (KPAs): A cluster of related activities that, when performed collectively, 

achieve a set of goals considered to be important for establishing process ability.

The following describes uses by the various stakeholders: 

 Projects

◦ Internal assessment of strengths/weaknesses related to EVM implementation and EVMS 

compliance.

◦ Facilitates the development of a roadmap for achieving EVM CMM level 3.

 ISTs/Mission Directors/Programs/Centers

◦ Initial independent assessment completed during Formulation (in conjunction with the 

SRB/PDR) prior to Phase C for new projects

◦ Facilitates identification of focus areas for EVM and EVMS improvement

◦ Facilitates development of roadmap for achieving Agency EVM CMM levels (3-5) 

 NASA (OCE)

◦ Facilitates assessment of EVMS implementation across the Agency.

◦ Identify/prioritize EVMS process improvements (EVMWG, etc.).

◦ Update EVM policy, EVMS procedures/guidance, and best practices.

◦ Facilitates development of roadmap for achieving EVM CMM Levels (3-5). 

The NASA EVM CMM approach emphasizes project management expectations during each of 

the phases, gates and major events of NASA’s project life cycle, as shown in the NPR 7120.5

project life cycle overview Figure H.2-5:

Figure H.2-5. NASA Project Life Cycle Phases

The EVM process/product maturity tables in Figure H.2-6 below provide an overview of the 

expected project management processes and products by KPA of each project phase, and the 

maturity level of those processes and products in each phase. Each phase builds upon the 

processes and products generated in the preceding phase with the goal of implementing a 

compliant EVM system by Phase C. This tool, or roadmap, serves as an aid for project 

managers, their staffs and their customers in implementing best practices for EVM. 
NASA EVM Implementation Handbook Page H-10

Pre-Phase A Phase A Phase B Phase C Phase D

Work Definition

Extend the Work 

Breakdown Structure 

(WBS) to Level 2 for 

planning, scheduling 

budgeting and analysis. 

Identify organization 

responsibilities for all 

effort contained in the 

lowest levels of the 

WBS.

Extend the WBS to Level 

3/4 for planning, 

scheduling, budgeting 

and analysis. Preliminary 

WBS Dictionary required 

to Level 3/4. Identify 

organization 

responsibilities for all 

effort contained in the 

lowest levels of the WBS.

Extend the WBS and WBS 

Dictionary to reflect 

Control Accounts. 

Determine the WBS 

reporting levels for Phase 

B. Finalize Phase B 

Responsibility Assignment 

Matrix (RAM). 

Extend the WBS and WBS 

Dictionary to reflect Phase 

C Control Accounts and 

Work Packages. Identify 

major contracted effort in 

the WBS and describe it in 

the WBS Dictionary. 

Determine WBS reporting 

levels for Phase C and 

finalize the Phase C RAM. 

Continue to extend the 

WBS and WBS Dictionary 

to reflect Phase D Control 

Accounts and Work 

Packages. Continue to 

identify major contracted 

effort in the WBS and 

describe it in the WBS 

Dictionary. Determine 

WBS reporting levels for 

Phase D. Finalize the 

Phase D RAM. 

Project 

Organization

Develop the top Level 

project organization 

chart.

Expand the project 

organization chart.

Expand the project 

organization chart to 

include identification of 

Project Control Account 

Managers (P-CAMs), major 

contractors and supporting 

Centers.

Continue to 

expand/update the 

project organization chart 

to include identification of 

P-CAMs, major contractors 

and supporting Centers.

Continue to 

expand/update the 

project organization chart 

to include identification of 

P-CAMs, major contractors 

and supporting Centers.

Project 

Integration

N/A

Develop preliminary 

WBS/OBS/Control 

Account/Charge Code 

Structure to facilitate 

linkage between the 

planning, scheduling, 

budgeting, work 

authorization, cost 

accumulation and 

perfromance 

measurement processes. 

Maintain 

WBS/OBS/Control 

Account/Charge Code 

Structure to facilitate 

linkage between the 

planning, scheduling, 

budgeting, work 

authorization, cost 

accumulation and 

perfromance 

measurement processes. 

Maintain 

WBS/OBS/Control 

Account/Charge Code 

Structure to facilitate 

linkage between the 

planning, scheduling, 

budgeting, work 

authorization, cost 

accumulation and 

perfromance 

measurement processes. 

Maintain 

WBS/OBS/Control 

Account/Charge Code 

Structure to facilitate 

linkage between the 

planning, scheduling, 

budgeting, work 

authorization, cost 

accumulation and 

perfromance 

measurement processes. 

Organization Process/Product Maturity

Pre-Phase A Phase A Phase B Phase C Phase D

Risk

Develop and refine the 

initial risk assessments 

at a top level.

Baseline the Risk 

Mitigation Plan

Update and maintain the 

Risk Mitigation Plan.

Update and maintain the 

Risk Mitigation Plan.

Continue to update and 

maintain the Risk 

Mitigation Plan.

Schedule

Establish a project-level 

Master Schedule with 

key development, 

integration, test and 

delivery milestones. 

Establish high-level 

summary tasks 

reflecting estimates for 

requirements 

development, 

hardware design, 

fabrication, integration 

and test, and 

operational capability 

development. At least 

quarterly progress 

should be reflected in 

the schedule.

Establish a systems-level 

logic-driven Master 

Schedule with key 

development, 

integration, test and 

delivery milestones and 

products. Include: 

requirements 

development, 

preliminary/critical 

design, long lead items, 

fabrication, software 

development, 

integration & testing. 

Progress schedule 

monthly. Develop the 

preliminary Integrated 

Master Schedule (IMS).

Refine the logic-driven 

IMS to reflect all 

authorized effort, all 

Control Accounts & lowerlevel detail tasks. Tasks 

should be 

discrete/measurable for 

near-term effort. The IMS 

should contain major 

contracted effort, critical 

interface milestones, highdollar or critical material 

items, forecast dates for 

all activities & critical path. 

Monthly progress should 

be measured based on 

physical accomplishments.

Maintain IMS reflecting all 

authorized effort, all 

Control Accounts, and 

lower-level detail tasks. 

Task durations of two 

months or less are 

preferred for near-term 

effort. The IMS should 

contain major contracted 

effort, critical interface 

milestones, high-dollar or 

critical material items, 

forecast dates for all 

activities, and the critical 

path. Monthly progress 

should be measured based 

on physical 

accomplishments.

Continue to maintain IMS 

that reflects all authorized 

effort and contains all 

Control Accounts, and 

lower-level detail tasks as 

appropriate. The IMS 

should also contain major 

contracted effort, critical 

interface milestones, highdollar or critical material 

items, forecast dates for 

all activities, and the 

critical path. Monthly 

progress should be 

measured based on 

physical accomplishments.

Budget

Establish a time phased 

budget for each Level 2 

element of the WBS.

Establish a time-phased 

budget for each Level 3/4 

element of the WBS.

Establish a Performance 

Measurement Baseline 

(PMB) for all Control 

Accounts. Establish 

Management Reserve 

(MR) based on risk 

assessments. Use 

Undistributed Budget (UB) 

in the change 

management process.

Maintain time-phased 

PMB at Work 

Package/Planning Package 

level. Use Planning 

Packages as place holders 

for far term work. 

Establish MR based on risk 

assessments. Use UB in 

the change management 

process.

Continue to maintain timephased PMB at Work 

Package/Planning Package 

level. Establish MR based 

on risk assessments. Use 

Undistributed Budget UB 

in the change 

management process.

Work 

Authorization

Authorize work using 

the "Draft" Formulation 

Authorization 

Document (FAD) or 

equivalent.

Authorize work using the 

FAD, the Formulation 

Agreement (FA) and the 

Management Agreement 

(MA).

Authorize work at the 

Control Account level 

using the Work 

Authorization Document 

(WAD).

Authorize work at the 

Control Account level 

using the WAD, and at the 

work package level using a 

Control Account Plan 

(CAP). 

Continue to authorize 

work at the Control 

Account level using the 

WAD, and at the work 

package level using the 

CAP.

Planning Process/Product Maturity
NASA EVM Implementation Handbook Page H-11

Pre-Phase A Phase A Phase B Phase C Phase D

Cost Collection

Develop a cost 

collection method that 

will support future 

expansion and 

reporting for the entire 

project life cycle.

Refine the cost collection 

methodology to support 

future expansion and 

reporting needs.

Revise and expand the 

cost collection 

methodology to support 

future expansion and 

reporting needs.

Revise and expand the 

cost collection 

methodology to support 

future expansion and 

reporting needs.

Continue to revise and 

expand the cost collection 

methodology to support 

future expansion and 

reporting needs.

Material and 

Contracts

Develop an acquisition 

strategy that includes a 

make/buy list, an initial 

master equipment list, 

and potential 

contracted efforts 

(including those 

requiring EVM 

flowdown.)

Update acquisition 

strategy/plan, finalize 

make/buy decisions, 

identify high 

value/critical need 

material list, identify 

long-lead requirements, 

maintain current 

material/contract 

estimates. Include NFS 

EVM clauses and 

reporting in contracts 

and conduct Integrated 

Baseline Review (IBRs) 

on contracts with EVM.

Update acquisition 

strategy/plan and 

make/buy decisions, high 

value/critical need 

material list and long-lead 

requirements, maintain 

current material/contract 

estimates. Include 

appropriate NFS EVM 

clauses and reporting in 

contracts and conduct IBRs 

on contracts with EVM. 

Plan all material in Control 

Accounts and manage and 

account for all material. 

Update and maintain the 

acquisition strategy/plan, 

the make/buy and high 

value/critical need 

material list, and major 

contractor estimates. 

Ensure NFS EVM clauses 

are included in new 

contracts. Conduct IBRs as 

appropriate to assess 

significant changes to 

contractors' PMB. Plan all 

material in Control 

Accounts and manage and 

account for all material. 

Continue to update and 

maintain the acquisition 

strategy, the make/buy 

and high value/critical 

need material list, and 

major contractor 

estimates. Ensure NFS 

EVM clauses are included 

in new contracts. Conduct 

IBRs as appropriate to 

assess significant changes 

to contractors' PMB. Plan 

all material in Control 

Accounts and manage and 

account for all material. 

Accounting Process/Product Maturity Pre-Phase A Phase A Phase B Phase C Phase D

Performance 

Measurement

Update the master 

schedule quarterly to 

reflect project-level 

status.

Report progress monthly 

for each level 4 WBS 

element in the master 

schedule.

Report progress monthly 

for each Control Account 

in the IMS, including 

contractor performance. 

Include contractor 

performance reporting. 

Assign earned value 

techniques at the work 

package level for Phase C 

PMB.

Report progress monthly 

for each work package. 

Assign earned value 

techniques at the work 

package level when 

converting planning 

packages to work packages 

to use in reporting 

accomplishment in the 

IMS. Include contractor 

performance reporting.

Continue to use earned 

value techniques at the 

work package level in 

reporting accomplishment 

in the IMS, including 

contractor performance.

Variance Analysis

On a quarterly basis, 

compare level 3 WBS 

budgets to actuals and 

analyze significant 

variances. Incorporate 

analysis into quarterly 

activity/status reports.

On a monthly basis, 

compare level 4 WBS 

budgets to actuals, 

analyze significant 

variances, and correlate 

to the IMS status. 

Incorporate analysis into 

monthly activity/status 

reports.

For the preliminary PMB, 

establish variance 

thresholds for reporting 

on the Contract 

Performance Report (CPR). 

On a monthly basis, 

analyze all variances that 

exceed thresholds and 

evaluate impact to EAC. 

Propose and document 

corrective actions as 

appropriate. Perform 

critical path analysis on 

the IMS. Integrate earned 

value performance and 

variance analysis into the 

monthly project review.

Continue to establish 

variance thresholds for 

reporting on the CPR. On a 

monthly basis, analyze all 

variances that exceed 

thresholds and evaluate 

impact to EAC. Propose, 

document and track to 

closure the corrective 

actions as appropriate. 

Perform critical path 

analysis on the IMS. 

Integrate earned value 

performance and variance 

analysis into the monthly 

project review.

Continue to establish 

variance thresholds for 

reporting on the CPR. On a 

monthly basis, analyze all 

variances that exceed 

thresholds and evaluate 

impact to EAC. Propose, 

document and track to 

closure the corrective 

actions as appropriate. 

Perform critical path 

analysis on the IMS. 

Integrate earned value 

performance and variance 

analysis into the monthly 

project review.

Estimate to 

Complete (ETC) 

and 

Estimate at 

Completion 

(EAC) 

N/A

Update the Basis of 

Estimate (BOE) forms 

which were developed 

during the time-phased 

budgeting process. 

Monthly, as part of the 

variance analysis process, 

evaluate the adequacy of 

the ETC/EAC at the Control 

Account level. Use EAC 

data to support the 

Planning, Programming, 

Budgeting and Execution 

(PPBE) process.

Monthly, as part of the 

variance analysis process, 

evaluate the adequacy of 

the EAC. Annually, 

conduct a comprehensive 

EAC. This comprehensive 

EAC should support the 

PPBE process. Use 

Schedule and Cost 

Performance Indices (SPI 

and CPI) as sanity checks 

against forecasted 

estimates. Document 

approved EACs.

Monthly, as part of the 

variance analysis process, 

evaluate the adequacy of 

the EAC. Annually, 

conduct a comprehensive 

EAC. This comprehensive 

EAC should support the 

PPBE process. Use SPI and 

CPI calculations as sanity 

checks against forecasted 

estimates. Document 

approved EACs.

Analysis Process/Product Maturity
NASA EVM Implementation Handbook Page H-12

Figure H.2-6. NASA EVM CMM Process/Product Maturity by KPA and Project Phase

2.4 EVMS Improvement and Coordination

Initiation of system improvements will result primarily from continued project surveillance and 

stakeholder comments. Improvements may be indicated by repeated non-compliance with the 

EVMS procedural disciplines that are surfaced during surveillance reviews or other reviews such 

as IBRs, OCE Requirements Compliance Surveys, GAO audits, etc.

Once a proposed change has been defined and justified, the EVM System Owner (OCE) should 

test its validity. If the assessment indicates that the proposed change will significantly improve 

the EVMS operation, the change will be formally documented and processed according to the

system revision process described in the NASA EVM Systems Description.

Pre-Phase A Phase A Phase B Phase C Phase D

Change 

Management

N/A

Record Phase A changes 

in funding, budget and 

schedule.

Document and record 

changes in budget and 

schedule amounts. 

Maintain traceability 

between the FAD/FA/MA 

and the PMB. Establish 

project level logs for 

tracking authorized 

changes to PMB (for 

Implementation/Phase C). 

Maintain project level logs 

for tracking authorized 

changes to the PMB at the 

Control Account level. 

Authorize changes using a 

baseline change request. 

Maintain traceability 

between the Management 

Agereement (MA) and the 

PMB.

Maintain project level logs 

for tracking authorized 

changes to the PMB at the 

Control Account level. 

Authorize changes using a 

baseline change request. 

Maintain traceability 

between the Management 

Agereement (MA) and the 

PMB.

Revisions Process/Product Maturity Pre-Phase A Phase A Phase B Phase C/D

Software Tools

Basic MS Office Tools 

(Excel; MS Project, etc.) 

or other Center 

specified scheduling 

tool

Define EVMS 

Architecture and tools; 

implement tools, e.g. 

scheduling, wInsight, etc.

Finalize EVMS 

Architecture and 

implement all tools 

(EVMS engine such as 

Cobra or MPM, wInsight, 

scheduling, etc.)

Maintain EVMS 

Architecture and 

software tools (EVMS 

engine such as Cobra or 

MPM, wInsight, 

scheduling, etc.)

Training

Attend basic training 

(Introduction to Project 

Management, EVM, 

WBS)

Define Project Training 

and Plan (Basic Project 

Management, EVM, 

Planning/Scheduling, 

WBS) and Center specific 

software tool training

Implement Project 

Training and Plan; include 

EVM System Description 

Training, Project CAM 

Training, Advanced EVM 

and Scheduling, Software 

tools training.

Continue to implement 

Project Training Plan; 

conduct refresher 

training as needed. 

Surveillance N/A

Develop initial Project 

Surveillance Plan (EVM 

Implementation Plan); 

Perform surveillance on 

contracts with EVM as 

required.

Support customer 

surveillance reviews 

(EVM Capability Maturity 

Assessments, etc.); 

Develop Corrective 

Action Plans for 

findings/Ensure closure. 

Perform surveillance on 

contracts with EVM as 

required/monitor 

corrective actions to 

closure. 

Support customer 

surveillance reviews 

(OCE Compliance 

Requirements Surveys, 

etc.); Develop Corrective 

Action Plans for 

findings/Ensure closure. 

Perform surveillance on 

contracts with EVM as 

required/monitor 

corrective actions to 

closure. Implement 

process improvements. 

Other Process/Product Maturity
NASA EVM Implementation Handbook Page I-1

APPENDIX I. MINIMUM WAIVER REQUIREMENTS FOR NASA IN-HOUSE PROGRAMS AND 

PROJECTS

Requirements: Any waiver request submitted to NASA headquarters OCE must include the 

following information:

1. A description of the management system that will be used in the performance of the program 

or project. This could be captured in documentation such as a program or project plan, 

Center management practices, an EVM Implementation Plan, EVM System Description or 

other program/project documentation.

2. A matrix that correlates each guideline in ANSI/EIA-748 to the corresponding process in the 

program or project written management procedures. This is referred to as a Compliance 

Review Checklist (CRC) and can be found in Figure J-1 below.

a. For each of the 32 guidelines, state whether or not the program or project’s 

documented management procedures meet the intent of the guideline.

b. Provide a corresponding reference to the program or project’s written 

management procedures for each guideline.

c. For each guideline that is not met, describe a plan for compliance or rationale 

describing why the guideline will not be met.

3. The proposed procedures for application of the EVMS requirements to suppliers. This could 

take several forms including an EVM Implementation Plan, EVM clause(s), DRDs for the 

CPR, IMS, WBS, and other EVM-type reporting, intra-Agency work agreements, Program or 

Project plan, Acquisition Plan or other.

4. A point of contact should additional information or assistance be required to support review 

of the request.

Figure I-1: EVMS Guideline Compliance Review Checklist

Guideline - ANSI/EIA-748-B 

(Note: Check with EVMFP for latest version 

of ANSI/EIA-748 and CRC)

Intent 

Met? 

Yes/No

Management 

Procedure 

Reference & Notes

Plan for 

Compliance or 

Rationale for 

Non-Compliance

Organization

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.
NASA EVM Implementation Handbook Page I-2

3. Provide for the integration of the planning, 

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 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

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. 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 contractors.

10. To the extent it is practical 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.
NASA EVM Implementation Handbook Page I-3

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 not 

measurable or for which measurement is 

impractical may be classified as level of effort.

13. Establish overhead budgets for each 

significant organizational component for 

expenses which will become indirect costs. 

Reflect in the program budgets, at the 

appropriate level, the amounts in overhead 

pools that are planned 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

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 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 program consistent with the 

overhead budgets.

20. Identify unit costs, equivalent unit costs, or 

lot costs when needed.

21. For EVMS, the material accounting system 

will provide for: (1) Accurate cost accumulation 

and assignment of costs to control accounts in a 

manner consistent with the budgets using 

recognized, acceptable, costing techniques. (2) 

Cost recorded for accomplishing work 

performed in the same period that earned value 

is measured and at the point in time most 

suitable for the category of material involved, 

but no earlier than the time of actual receipt of 

material. (3) Full accountability of all material 
NASA EVM Implementation Handbook Page I-4

purchased for the program including the residual 

inventory.

Analysis and Management Reports

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: (1) 

Comparison of the amount of planned budget 

and the amount of budget earned for work 

accomplished. This comparison provides the 

schedule variance. (2) Comparison of the 

amount of the budget earned and 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

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.
NASA EVM Implementation Handbook Page I-5

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.
NASA EVM Implementation Handbook Page J-1

APPENDIX J. EVM IMPLEMENTATION DESCRIPTION IN PROJECT PLANS

1. Purpose: The purpose of this template is to provide guidance and instruction on a suggested 

format and information to be included in the Project Plan when EVM is required. 

2. Background: In accordance with NPR 7120.5, NASA Space Flight Program and Project 

Management Requirements, NPR 7120.7, NASA Information Technology and Institutional 

Infrastructure Program and Project Management Requirements, and NPR 7120.8, NASA 

Research and Technology Program and Project Management Requirements, major projects 

prepare a Project Plan that provides an agreement between the Project Manager, Program 

Manager, and Center Director, etc., on the scope, implementation approach, project 

operational environment, and the baseline commitments of the project. The Project Plan is 

updated over the project life cycle in response to changes in program requirements on the 

project or the baseline commitments. Execution of the Project Plan is the responsibility of 

the Project Manager. The Plan includes accompanying stand-alone plans such as Safety and 

Mission Assurance, Risk Management, System Engineering Management, Software 

Management, Security Plans, Technical/Cost/Schedule and Control Plan, etc., summarized in 

section 3, which collectively provide the guidance and control for the project. 

3. Project Plan Requirements: The Project Plan Template is included as an appendix in each of 

the NPRs cited above. For example, in NPR 7120.5, Appendix H, Project Plan Template, 

section 3.1, Technical, Schedule, and Cost Control Plan, projects are required to describe

how it plans to control project requirements, technical design, schedule, and cost to achieve 

the program requirements on the project to include EVM. The EVM implementation 

approach can be included in this section or described in a separate control plan and 

referenced in this section. This control plan describes the project’s implementation of EVM 

including:

a. How the PMB will be developed and maintained for the project and how UFE will be 

established and controlled;

b. The methods the project will use to authorize the work (e.g. work agreements) and to 

communicate changes for the scope, schedule, and budget of all suppliers; how the 

plan is updated as make-buy decisions and agreements are made;

c. The process to be used by the project to communicate the time-phased levels of 

funding that have been forecasted to be made available to each supplier;

d. For the class of suppliers not required to use EVM, the schedule and resource 

information required of the suppliers to establish and maintain a baseline and to 

quantify schedule and cost variances; how contractor performance reports will be 

required; and

e. How the cost and schedule data from all partners/suppliers will be integrated to form 

a total project-level assessment of cost and schedule performance.

f. How the project plans to report technical, schedule, and cost status to the program 

manager, including the frequency 

g. A description of any additional tools necessary to implement the project’s control 

processes (e.g., the requirements management system, project scheduling system, 
NASA EVM Implementation Handbook Page J-2

project information management systems, budgeting, risk management, and cost 

accounting system) and

h. The process for establishing, monitoring and controlling the IMS and the process for 

utilizing the project’s technical and schedule margins and Unallocated Future 

Expenses (UFE) to meet the Management and Commitment Baselines.

4. Assumptions: 

When EVM is required, new projects will implement the NASA EVM Capability to ensure 

compliance with the ANSI/EIA-748 standard for EVMS and include this as a reference in 

their EVM Implementation Plan. The EVM Capability consists of processes, procedures, 

tools and training. Use of NASA’s EVM Capability and processes ensures compliance with 

the ANSI/EIA-748 standard and allows tailoring to match the individual needs of the 

program or project, while still meeting the ANSI/EIA-748 guidelines. NASA’s EVM 

Capability can be found on the Program and Project Management Community of Practice at 

https://nen.nasa.gov/web/pm/evm. The project will describe any tailoring of the procedures 

for their specific application in their EVM Implementation Plan to include the topics in 

section 5. 

If the project does not use the NASA EVM Capability, then it must fully describe the EVM 

processes, procedures, tools and training that will be implemented on the project and include 

a matrix that demonstrates how this approach complies with the 32 guidelines of the 

ANSI/EIA-748 Earned Value Management System (EVMS). See the NASA EVM Systems 

Description https://nen.nasa.gov/web/pm/evm for an example of the type of processes, 

procedures, and tools required to comply with this requirement. Projects should use the 

compliance map included in the NDIA PMSC EVMS Intent Guide, as an aid in verifying 

their compliance with the ANSI/EIA-748 EVMS guidelines. 

5. Specific Topics: 

The outline and instruction of this template serves as a guide for projects in developing and 

communicating the specific EVM applications for their project. The Project should include 

information that is unique to its EVM implementation such as EVMS milestones, process 

flows, charts and diagrams to better illustrate specific processes described in the NASA EVM 

capability (see the NASA EVM Systems Description), management system architecture, 

business process timelines, etc. 

Projects should coordinate with their EVM Focal Point (refer to 

http://evm.nasa.gov/council.html for the applicable EVM Focal Point) for guidance and 

assistance in implementing EVM and preparing their EVM Implementation Plan. In addition 

to the requirements listed in paragraph 3, projects should describe the following:

a. Project EVMS implementation milestones through PMB establishment, project and 

supplier IBRs, etc.

b. Project team at control account level (include the Responsibility Assignment Matrix 

(RAM)), specific roles and responsibilities to include the program, planning and 

control (PP&C) roles and responsibilities 
NASA EVM Implementation Handbook Page J-3

c. Structures that will be used for planning including the WBS and WBS Dictionary and 

charge code relationships, the Resource Breakdown Structure (RBS), Organizational 

Breakdown Structure (OBS), rates, fiscal calendars, planning hours, etc.

d. Work Authorization process (work agreement process) and form that will be used

e. System architecture/tools used in the EVM system

f. Process for planning and accumulating indirect cost 

g. Monthly Business Rhythm (input/output timeline to include: down load actual cost; 

update/analyze IMS; EV update; supplier IMS/EVM analysis/system update; prepare 

VARs; P-CAM reviews; project level reviews; prepare and submit monthly report; 

IMS and EVM validity reviews, etc.) 

h. Management meetings/reviews (internal/external, frequency, information 

requirements such as specific metrics and trend analysis charts, etc.)

i. List of contracts/agreements and flowdown/reporting requirements - contractors 

name, scope, value, period of performance, flowdown requirements to include EVM, 

date of validated EVMS or plan for validation if applicable, other reporting, etc.), 

COTR/Tech lead, etc.

j. Rolling wave approach

k. Process for tying EVM to risk management

l. IBR schedule and plan (both in-house and contractor)

m. Use of estimated actuals and reconciliation process

n. Integrated performance analysis and reporting (IMS, NF533 data reconciliation, 

ETC/EAC, funds forecast, Risk Register and schedule margin/MR analysis, EV 

metrics, UFE assessment, etc.)

o. ETC/EAC approach and frequency, including routine and comprehensive EAC

p. Thresholds for identifying significant variances and VAR preparation to include 

specific form if used

q. Change management process - Baseline Change Requests, Budget Log(s) (process, 

forms, approvals, replanning methods, etc.)

r. Identify process for incorporating new rates into the baseline

s. Training requirements/plan (EVM basics, project team training on EVM capability, 

tools, etc.) 

t. EVMS surveillance approach (In-house and contractor)
NASA EVM Implementation Handbook Page K-1

APPENDIX K. ACRONYMS

AA Advance Agreement

ABC Agency Baseline Commitment

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

BCWR Budgeted Cost for Work Remaining

BCWS Budgeted Cost for Work Scheduled

CAP Control Account Plan

CBB Contract Budget Baseline

CCB Change Control Board

CFO Chief Financial Officer

CMA

COTS

Capability Maturity Assessment

Commercial-off-the-Shelf

CPAF Cost Plus Award Fee

CPFF Cost Plus Fixed Fee

CPI Cost Performance Index

CPIF Cost Plus Incentive Fee

CPR Contract Performance Report

CV Cost Variance

CWBS Contract Work Breakdown Structure

DCMA Defense Contract Management Agency

DI-MGMT81466Data Item Description for the Contract Performance Report

DM Data Manager

DRD Data Requirements Description

EAC Estimate at Completion

ETC Estimate to Complete

EVM Earned Value Management

EVMFP Earned Value Management Focal Point

EVMIG Earned Value Management Implementation Guide
NASA EVM Implementation Handbook Page K-2

EVMS Earned Value Management System

EVMWG Earned Value Management Working Group

EVM3® Earned Value Management Maturity Model® 

EVMS Earned Value Management System

FAD Formulation Authorization Document

FFP Firm Fixed-Price

FMR Financial Management Requirements

FPIF Fixed-Price Incentive Fee

FY Fiscal Year

GAO Government Accountability Office

GFP Government Furnished Property

IBR Integrated Baseline Review

IMS Integrated Master Schedule

IPT Integrated Product Team

IST Integrated Surveillance Team

IT Information Technology

JPL Jet Propulsion Laboratory

KDP Key Decision Point

KPA Key Process Area

LOE Level of Effort

M Million

MDAA Mission Directorate Associate Administrator

MOU Memorandum of Understanding

MR Management Reserve

NASA National Aeronautics and Space Administration

NASA FAR NASA Federal Acquisition Regulation 

NDIA National Defense Industry Association 

NFS NASA FAR Supplement

NPD NASA Policy Directive

NPR NASA Procedural Requirements

OBS Organization Breakdown Structure

OCE Office of Chief Engineer
NASA EVM Implementation Handbook Page K-3

OMB Office of Management and Budget

OPR Office of Primary Responsibilities

OTS Over Target Schedule

PBB Project Budget Base

P-CAM Project Control Account Manager

PDR Preliminary Design Review

PMB Performance Measurement Baseline

PPBE Program, Planning, Budgeting and Execution 

RAM Responsibility Assignment Matrix

RFP Request for Proposal

SASR Summary Assessment Summary Report

SEB Source Evaluation Board

SOW Statement of Work

SP NASA Special Publication

SPI Schedule Performance Index

STAT Schedule, Test and Assessment Tool

SV Schedule Variance

TAB Total Allocated Budget

TCPI To Complete Performance Index

UB Undistributed Budget

UFE Unallocated Future Expense

VAC Variance at Completion

WAD Work Authorization Document

WBS Work Breakdown Structure
NASA EVM Implementation Handbook Page L-1

APPENDIX L. GLOSSARY

Actual Cost of Work Performed (ACWP). The costs actually incurred and recorded in 

accomplishing the work performed within a given time period. Actual costs include the direct 

cost plus the related indirect cost such as overhead, general and administrative, etc. allocated to 

the activity. (Also known as Actual Cost).

Administrative Contracting Officer (ACO). The individual within the Defense Contract 

Management Agency (DCMA) Contract Management Office (CMO) responsible for ensuring 

that the functions described in NFS 1842.302 are completed by the contractor in accordance with 

the terms and conditions of the contract. 

Advance Agreement (AA). The agreement between the Administrative Contracting Officer 

(ACO) and the contractor that documents the contractor’s commitment to use the accepted 

EVMS as an integral management process on current and future contracts and maintain the 

EVMS compliant system for current and future contracts through an internal surveillance 

program.

Agency Baseline Commitment (ABC). An Agency Baseline Commitment is the highest-level 

commitment for NASA and is established at the beginning of the Implementation Phase of a 

program or project’s life cycle, Key Decision Point C (KDP C). It includes the program’s 

approved funding budgetary target. This target is used by OMB and Congress as the total 

appropriation target value for the funding request and some additional Unallocated Future 

Expense (UFE), and/or schedule or margin/reserve added by the mission directorates with the 

concurrence of the Independent Program Assessment Office (IPAO) to ensure a reasonable 

amount of funding margin/reserve is available for unforeseen problems beyond the program’s 

control.

American National Standards Institute/Electronic Industries Alliance (ANSI/EIA). The Institute 

that oversees the creation, promulgation and use of thousands of norms and guidelines that 

directly impact businesses in nearly every sector. ANSI is also actively engaged in accrediting 

programs that assess conformance to standards—including globally-recognized cross-sector 

programs such as the ISO 9000 (quality) and ISO 14000 (environmental) management systems.

The Earned Value Management System guidelines have been published as an ANSI/EIA 

standard. The set of 32 guidelines, established by ANSI/EIA-748, define the requirements the 

contractor's EVM system should meet.

Authorized Unpriced Work (AUW). Any effort for which contractually definitized costs have not 

been agreed upon, but for which written authorization has been received.

Budget at Completion (BAC). The sum of all budgets (BCWS) allocated to the project or a given 

Control Account. It is synonymous with the term Performance Measurement Baseline. 

Budgeted Cost for Work Performed (BCWP). The sum of budgets for completed work packages 

and partially completed work packages, plus the appropriate portion of the budgets for level of 

effort and apportioned effort work packages. (Also known as Earned Value)

Budgeted Cost for Work Scheduled (BCWS). The sum of the budgets for all work packages, 

planning packages, etc., scheduled to be accomplished (including in-process work packages), 

plus the amount of level of effort and apportioned effort scheduled to be accomplished within a 

given time period. This is the value of planned work. (Also known as Planned Value)
NASA EVM Implementation Handbook Page L-2

Change Control Board (CCB). The CCB is a committee that makes decisions on whether 

proposed changes to project baselines (technical, schedule or cost) should be accepted.

Contract. A mutually binding legal relationship obligating the seller to furnish the supplies or 

services (including construction) and the buyer to pay for them. It includes all types of 

commitments that obligate the Government to an expenditure of appropriated funds and that, 

except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts 

include (but are not limited to) awards and notices of awards; job orders or task letters issued 

under basic ordering agreements; letter contracts; orders, such as purchase orders, under which 

the contract becomes effective by written acceptance or performance; and bilateral contract 

modifications. Contracts do not include grants and cooperative agreements.

Contract Budget Base (CBB). The sum of the negotiated contract cost plus the estimated cost of 

authorized unpriced work. It includes the PMB and MR. Customer approval is generally required 

to change it. (See also Project Budget Base.)

Contract Performance Report (CPR). A contract data requirement when EVM is required. This 

report consists of five formats containing data for measuring contractors' cost and schedule 

performance on Government acquisition contracts:

 Format 1 provides data to measure cost and schedule performance by product-oriented WBS 

elements, the hardware, software, and services the Government is buying. 

 Format 2 provides the same data by the contractor's organization (functional or Integrated 

Product Team (IPT) structure). 

 Format 3 provides the budget baseline plan against which performance is measured. 

 Format 4 provides staffing forecasts for correlation with the budget plan and cost estimates.

 Format 5 is a narrative report used to explain significant cost and schedule variances and 

other identified contract problems and topics.

Contract Work Breakdown Structure (CWBS). A work breakdown structure of the products or 

services to be furnished under contract. It is comprised of selected Project WBS elements 

specified in the contractual document and the contractor's lower level extensions of those 

elements.

Control Account. A management control point at which budgets (resource plans) and actual costs 

are accumulated and compared to earned value for management control purposes. A control 

account is a natural management point for planning and control since it represents the work 

assigned to one responsible organizational element (or integrated product team) for a single 

WBS element.

Control Account Manager. See Project Control Account Manager (P-CAM).

Control Account Plan (CAP). A format upon which a control account plan is displayed. A CAP 

typically displays the control account scope and budget in time-phased work packages and 

planning packages, cost element visibility, earned value techniques for each work package, 

responsible performing organizations and at least one charge number.

Cost Performance Index (CPI). A measure of cost efficiency. It compares BCWP to the actual 

cost to perform that work (CPI = BCWP / ACWP). An index of 1.0 means that we are spending 

exactly what we planned to spend to accomplish the work performed. CPI > 1.0 means we are 

under running costs. CPI < 1.0 means that we are over running costs. 
NASA EVM Implementation Handbook Page L-3

Cost Variance (CV). A metric for the cost performance derived from earned value data. It is the 

algebraic difference between earned value and actual cost (CV = BCWP – ACWP). A positive 

value indicates a favorable condition and a negative value indicates an unfavorable condition. It 

may be expressed as a value for a specific period of time or cumulative to date. 

Critical Path. The Critical Path is the sequence of activities that are tied together with network 

logic that have the longest overall duration from time now until project completion.

Data Requirements Description (DRD). The document that describes the specific data required 

for supplier/contract management and reporting.

Defense Contract Management Agency (DCMA). The Department of Defense (DoD) component 

that works directly with Defense suppliers to help ensure that DoD, Federal, and allied 

government supplies and services are delivered on time, at projected cost, and meet all 

performance requirements. As the DoD Executive Agent for EVMS, DCMA is responsible for 

ensuring the integrity and application effectiveness of contractor EVMS. The NASA 

Program/Project contracting officer will normally delegate the responsibility for verifying a 

supplier’s initial and continuing compliance with ANSI/EIA -748 guidelines to the designated 

DCMA Administrating Contracting Officer (ACO) assigned to a DCMA Contract Management 

Office (CMO).

Earned Value Management (EVM). A tool for measuring and assessing project performance 

through the integration of technical scope with schedule and cost objectives during the execution 

of the project. EVM provides quantification of technical progress, enabling management to gain 

insight into project status and project completion costs and schedules. Two essential 

characteristics of successful EVM are EVM system data integrity and carefully targeted monthly 

EVM data analyses (i.e., risky WBS elements).

Earned Value Management Focal Point (EVMFP). The EVM subject matter expert at each 

NASA center/organization that serves as the point of contact for coordination and exchange of 

information on EVM. The EVMFP is responsible for effective policy implementation within 

their component, ensuring consistency with NASA policy and the provisions of this guide.

Earned Value Management Maturity Model®, or EVM3®. Developed and trademarked by 

Management Technologies (http://www.mgmt-technologies.com/evmtech.html), the five step 

EVM3® is a maturity model for organizations to use in implementing and improving their EVM 

Systems. Organizations with an ANSI/EIA-748 compliant EVMS can use the EVM3® to 

establish EVM process metrics and create EVMS improvement plans.

Earned Value Technique (EVT). See Performance Measurement Technique (PMT).

Earned Value Management Working Group (EVMWG). A group consisting of the EVM Subject 

Matter Experts from each center other subject matter experts to facilitate Agency-wide 

communication, consistency, and lessons learned related to implementing and using EVM.

Earned Value Management System (EVMS). The integrated set of policies, processes, systems 

and practices that meet an organization’s implementation of ANSI/EIA-748. An integrated 

management system and its related subsystems that allow for planning all work scope to 

completion; assignment of authority and responsibility at the work performance level; integration 

of the cost, schedule, and technical aspects of the work into a detailed baseline plan; objective 

measurement of progress (earned value) at the work performance level; accumulation and 

assignment of actual costs; analysis of variances from plans; summarization and reporting of 
NASA EVM Implementation Handbook Page L-4

performance data to higher levels of management for action; forecast of achievement of 

milestones and completion of events; forecast of final costs; and disciplined baseline 

maintenance and incorporation of baseline revisions in a timely manner.

Estimate at Completion (EAC). A value (expressed in dollars and/or hours) developed to 

represent a realistic projection of the final cost of a task (or group of tasks) when completed.

EAC is the sum of direct and indirect costs to date, plus the estimate of costs for all authorized 

remaining work. EAC = Inception to date ACWP + ETC

Estimate to Complete (ETC). A value (expressed in dollars and/or hours) developed to represent 

a realistic projection of the ―to go‖ cost of the unaccomplished work to complete a task.

Formulation Authorization Document (FAD). The document issued by the MDAA (or MSOD) to 

authorize the formulation of a program whose goals will fulfill part of the Agency’s Strategic 

Plan, Mission Directorate Strategies, or Mission Support Office Functional Leadership Plans. In 

addition, a FAD or equivalent is used to authorize the formulation of a project.

Independent Estimate at Completion (IEAC). The IEAC is a forecast of most likely total project 

costs based on assessment of historical project performance.

Integrated Baseline Review (IBR). A risk-based review conducted by Program/Project 

Management to ensure mutual understanding between the customer and supplier of the risks 

inherent in the supplier’s PMB and to ensure the PMB is realistic for accomplishing all the 

authorized work within the authorized schedule and budget.

Integrated Master Schedule (IMS). An integrated schedule developed by logically networking all 

detailed program/project activities. The highest level schedule is the Master Schedule supported 

by Intermediate Level Schedules and by lowest level detail schedules. 

Joint Cost and Schedule Confidence Level (JCL). (1) The probability that cost will be equal to or 

less than the targeted cost AND schedule will be equal to or less than the targeted schedule date. 

(2) A process and product that helps inform management of the likelihood of a project’s 

programmatic success. (3) A process that combines a project's cost, schedule, and risk into a 

complete picture. JCL is not a specific methodology (e.g., resource-loaded schedule) or a product 

from a specific tool (e.g., @RISK).

Key Decision Point (KDP). The event at which the decision authority determines the readiness of 

a program/project to progress to the next phase of the life cycle (or to the next KDP). 

Level of Effort (LOE): Effort of a general or supportive nature that does not produce definite end 

products. Examples include supervision, program administration and contract administration.

Management Reserve (MR). An amount of the total allocated budget withheld for management 

control purposes rather than designated for the accomplishment of a specific task or a set of 

tasks. It is not part of the Performance Measurement Baseline.

Memorandum of Understanding (MOU). The MOU is a bilateral or multilateral document 

describing the agreements between two parties.

Metadata Manager (MdM). The MdM houses the WBS structure and supplies this information to 

the NASA Core Financial System [sometimes nicknamed SAP because the system is based on 

SAP (Systems, Applications, Products) business applications]) and other subsystems such as 

WebTADS, FedTraveler, and Contract Management.
NASA EVM Implementation Handbook Page L-5

Mission Directorate Associate Administrator (MDAA). Responsible for managing programs 

within the Mission Directorate; recommends the assignment of programs and Category 1 projects 

to centers; assigns Category 2 and 3 projects to centers; serves as the KDP Decision Authority 

for Category 2 and 3 projects; and has responsibility for all programmatic requirements.

NASA Procedural Requirements (NPR). Agency mandatory instructions and requirements to 

implement NASA policy as delineated in an associated NPD.

NASA Policy Directive (NPD). Agency policy statements that describe what is required by 

NASA management to achieve NASA’s vision, mission, and external mandates and describe 

who is responsible for carrying out those statements.

NASA Structure Management (NSM). The NSM is the internal coding schema used by the 

Agency to define and organize project work content. The WBS with its NSM nomenclature 

provides a common management framework for project management decisions and 

communication, the definition and authorization of work, the development of project schedules, 

and the planning and allocation of resources. This same coding system is also used to account for 

all financial activities associated with funds appropriated by Congress to accomplish project 

work.

Office of the Chief Engineer (OCE). The Chief Engineer is the principal advisor to the NASA 

Administrator on the technical readiness, review, and execution of NASA programs and projects.

The OCE ensures that NASA missions are planned and conducted with sound engineering 

practices and proper controls and management. The OCE is responsible for EVM policy and 

guidance.

Office of Management and Budget (OMB). A Cabinet-level office which is the largest office 

within the Executive Office of the United States President. The OMB oversees and coordinates 

the Administration's procurement, financial management, information, and regulatory policies. In 

each of these areas, the OMB's role is to help improve administrative management, to develop 

better performance measures and coordinating mechanisms, and to reduce any unnecessary 

burdens on the public.

Office of Procurement (OP). The Office of Procurement provides functional management, 

leadership, and policy direction of procurement and financial assistance activities (excluding 

Space Act Agreements) for the entire Agency. 

Organizational Breakdown Structure (OBS). The project hierarchy of line and functional 

organizations as applied to the specific project.

Over Target Baseline (OTB). Replanning actions involving establishment of cost and/or schedule 

objectives that exceed the desired or contractual objectives on the program. An OTB is a new 

baseline for management when the original objectives cannot be met and new goals are needed 

for management purposes. 

Over Target Schedule (OTS). An established schedule that extends beyond the contractual 

milestones or delivery dates. 

Performance Measurement Baseline (PMB). The time-phased budget plan against which 

performance is measured. It is formed by the budgets assigned to scheduled control accounts and 

the applicable indirect budgets. For future effort, not planned to the control account level, the 
NASA EVM Implementation Handbook Page L-6

PMB also includes budgets assigned to higher level WBS elements and undistributed budgets. It 

equals the total allocated budget less management reserve.

Performance Measurement Technique (PMT). The method or ―algorithm‖ used to calculate 

earned value at the work package level. 

Planning Package (PP). A logical aggregate of far-term effort within a control account that can 

be identified and budgeted, but not yet defined into discrete Work Packages.

Program. A strategic investment by a Mission Directorate or Mission Support Office that has a 

defined architecture and/or technical approach, requirements, funding level, and a management 

structure that initiates and directs one or more projects. A program defines a strategic direction 

that the Agency has identified as critical.

Program Plan. The document that establishes the program’s baseline for implementation and is

signed by the MDAA, Center Director(s), and program manager.

Project. A specific investment having defined goals, objectives, requirements, life-cycle cost, a 

beginning, and an end. A project yields new or revised products or services that directly address 

NASA’s strategic needs. They may be performed wholly in-house; by Government, industry, 

academic partnerships; or through contracts with private industry.

Project Budget Base (PBB). The negotiated value of the project plus the estimated cost of 

authorized unpriced work. It is the Government project equivalent to the Contract Budget Base.

It includes the PMB and MR. Customer approval is generally required to change it.

Project Control Account Manager (P-CAM). A NASA manager responsible for task performance 

of a Control Account within the PMB and for planning and managing the resources authorized to 

accomplish such task.

Project Plan. A detailed plan which, when formally approved, sets forth the agreement between 

a program manager and project managers, and defines the guidelines and constraints under which 

the project will be executed.

Rebaselining. The process that results in a change to a program’s/project’s Commitment 

Agreement. This agreement establishes and documents an integrated set of project requirements, 

cost, schedule, technical content, and an agreed-to Joint Confidence Level that forms the basis 

for NASA’s commitment with the external entities of OMB and Congress. 

Replanning. The process by which a program or project updates or modifies its plans. This 

applies to a change in the original authorized PBB or CBB planning for accomplishing formally 

authorized requirements, typically involving the redistribution of budget for remaining work. In 

accordance with the ANSI/EIA-748, traceability is required to previous baselines, and funding 

requirements need to be considered in any replanning effort. There are two types of replanning:

 Internal Replanning. Replanning actions performed by the supplier for remaining effort 

within the recognized PBB or CBB. It is caused by a supplier’s need to accommodate cost, 

schedule, or technical problems that may have made the original plan unrealistic. Internal 

replanning is restricted to remaining effort and if significant, the customer must be advised of 

the action.

 Authorized Change (or External) Replanning. A change necessitated by government/

customer direction which may be in the form of either a definitized or a no cost contract 

change order for contracts or formal change to the Project Plan for in-house Projects that 
NASA EVM Implementation Handbook Page L-7

calls for a change in the original plan. It most often results from a change in the authorized 

requirement affecting cost, schedule, technical parameter or a combination thereof.

Reprogramming (or Formal Reprogramming). A comprehensive replanning of the remaining 

PMB that results in an Over-Target Baseline (OTB), an Over-Target Schedule (OTS) or both. 

This type of replan is for performance measurement purposes only and requires prior 

coordination and approval of the Customer.

Request for Proposal (RFP). A solicitation used in negotiated acquisitions to communicate 

government requirements to prospective contractors and solicit proposals.

Responsibility Assignment Matrix (RAM). A chart showing the relationship between the CWBS 

elements and the organizations assigned responsibility for ensuring their accomplishment. The 

RAM normally depicts the assignment of each control account to a single manager, along with 

the assigned budget.

Risk Management Plan (RMP). The document that describes how risks will be identified and 

managed for a specific program/project.

Schedule Performance Index (SPI). A measure of schedule efficiency. It compares the BCWP to 

the work scheduled (SPI = BCWP / BCWS). An index of 1.0 means the work is being performed 

right to the schedule. SPI > 1.0 means that the work is ahead of schedule. SPI < 1.0 means that 

the work is behind schedule. 

Schedule Variance (SV). A metric for the schedule performance derived from earned value data. 

It is the algebraic difference between earned value and the planned value (SV = BCWP –

BCWS). A positive value is a favorable condition while a negative value is unfavorable. It may 

be expressed for a specific period of time or cumulative to date. 

Statement of Work (SOW). A document that contains a narrative description of the work scope 

requirements for a project or contract.

Suppliers. Each project office is a customer having a unique, multi-tiered hierarchy of suppliers 

to provide it products and services. A supplier may be a contractor, grantee, another NASA 

Center, university, international partner, or other government agency. Each project supplier is

also a customer if it has authorized work to a supplier lower in the hierarchy.

To Complete Performance Index (TCPI). The future cost efficiency needed to accomplish the 

remaining work within a financial goal such as the Budget at Completion (BAC) or the Estimate 

at Completion (EAC). It compares the budget for remaining work with the remaining cost or the 

estimated remaining cost to complete the work. TCPIBAC = (BAC – BCWP cum) / (BAC –

ACWP cum). Or TCPIEAC = (BAC – BCWP cum) / (EAC – ACWP cum). Compare the CPI to 

determine if the BAC or the EAC is realistic or not.

Total Allocated Budget (TAB). The sum of all budgets allocated to a project/contract. Total 

allocated budget consists of the PMB and all MR. The TAB should reconcile directly to the 

PBB/CBB. If the TAB is greater than the CBB/PBB, the difference is attributable to an over 

target baseline and must be documented. 

Unallocated Future Expense (UFE). The portion of estimated cost required to meet specified 

JCL that cannot yet be allocated to the specific project WBS sub-elements because the estimate 

includes probabilistic risks and specific needs that are not known until these risks are realized.
NASA EVM Implementation Handbook Page L-8

Typically not part of PBB unless allocated to the project in conjunction with a formal change to 

the PBB.

Undistributed Budget (UB). Budget associated with specific work scope or authorized changes 

that have not been assigned to a control account or lower level WBS element. 

Work Authorization Document (WAD). A form used to document authorized and budgeted work 

from the Project Manager or Sub-project/Element Manager. As a minimum this document must 

include the relevant WBS Control Account code, statement of work, scheduled start and 

completion dates, budget, and the name of the P-CAM.

Work Breakdown Structure (WBS). The product-oriented hierarchical breakdown or division of 

hardware, software, services and other work tasks that organizes, displays, and defines the 

products to be developed and/or produced and relates the elements of the work to be 

accomplished to each other and the end products.

Work Package (WP). A detail, short duration task or material item identified by the Project 

Control Account manager for accomplishing a Control Account task. A work package has the 

following characteristics: 

 Represents unit of work at the level where work is performed.

 Clearly separate from other Work Packages.

 Assignable to a single organizational element.

 Has scheduled start and completion dates, and interim milestones, if required, all of which 

represent physical accomplishment.

 Has budget expressed in terms of dollars or hours/FTEs.

 Its duration is limited to a relatively short span.

 Is integrated with detailed engineering, shop, or other schedules.

 Has a correct Earned Value Technique assigned to it.
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NASA Headquarters

Washington, D.C. 20546