TABLE OF CONTENTS - الصفحات...

TABLE OF CONTENTS

SECTION 1 – INTRODUCTION...............................................................................1-1

1.1 PURPOSE.....................................................................................1-11.2 IBR GOALS..................................................................................1-11.3 HANDBOOK CONTENT.....................................................................1-1

SECTION 2 – PROCEDURES.................................................................................2-1

2.1 GENERAL.....................................................................................2-1

2.2 IBR PHASES.................................................................................2-12.2.1 Initial Phase..................................................................2-12.2.2 Intermediate Phase.......................................................2-12.2.3 Review Phase................................................................2-22.2.4 Final Phase....................................................................2-2

2.3 IBM TEAM MEMBERSHIP.................................................................2-22.3.1 Team Leaders...............................................................2-22.3.2 Senior Earned Value Management (EVM) Specialist......2-22.3.3 IBR Points-of-Contact (POCs).........................................2-22.3.4 Review Group Leaders..................................................2-32.3.5 Technical Staff..............................................................2-32.3.6 Earned Vallue Management (EVM) Staff Specialists......2-32.3.7 Other Government Members........................................2-32.3.8 Contractor Staff............................................................2-3

2.4 INDIVIDUAL RESPONSIBILITIES...........................................................2-32.4.1 IBR Preparation.............................................................2-32.4.2 Travel............................................................................2-32.4.3 Security.........................................................................2-42.4.4 Lodging.........................................................................2-4

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TABLE OF CONTENTS (continued)

2.5 TRAINING.....................................................................................2-42.5.1 OrientationMeeting.......................................................2-42.5.2 Additional Training........................................................2-42.5.3 Workshop......................................................................2-5

2.6 CONDUCT OF THE IBR....................................................................2-52.6.1 General.........................................................................2-52.6.2 Areas of Concentration.................................................2-5

2.6.2.1 Work Definition Process..................................2-52.6.2.2 Schedules........................................................2-52.6.2.3 Budget Validation...........................................2-62.6.2.4 Risk Identification...........................................2-62,6.2.5 EVM Indicators................................................2-6

2.6.3 CWBS Assignments.......................................................2-62.6.4 Subcontract Considerations..........................................2-72.6.5 CAM Discussions...........................................................2-7

2.6.5.1 Discussion Assignments & Schedule...............2-72.6.5.2 Discussion Attendance....................................2-72,6.5.3 Discussion Location.........................................2-72.6.5.4 Discussion Plan...............................................2-72.6.5.5 Conducting the CAM Discussion......................2-8

2.7 DOCUMENTS, MEETINGS, REPORTS & AFTER ACTIONS..........................2-92.7.1 Daily Meetings............................................................2-102.7.2 Follow-up Discussion...................................................2-102.7.3 Documentation Requirements....................................2-10

2.7.3.1 Control Account Summary Sheet................2-102.7.3.2 Control Account Issue Reports....................2-11

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SECTION 3 – SUPPLEMENTAL INFORMATION & SAMPLE DOCUMENTATION.....................3-1

3.1 GENERAL.....................................................................................3-1

3.2 PREPARATION OF PROGRAM SPECIFIC IBR GUIDES...............................3-1

3.3 CONTRACTOR NOTIFICATION LETTER W/ENCLOSURES............................3-13.3.1 Preliminary IBR Schedule..............................................3-33.3.2 Review Team Members.................................................3-43.3.3 Documentation Requirements......................................3-5

3.4 PROGRAM/CONTRACT INFORMATION SUMMARY....................................3-6

3.5 CWBS, DICTIONARY, AND CWBS TREE............................................3-6

3.6 TEAM ASSIGNMENTS....................................................................3-12

3.7 CONTROL ACCOUNT SOURCE DOCUMENTS & SAMPLE DATA TRACE.......3-123.7.1 Sample SOW Extract Paragraphs................................3-12

3.8 CONTROL ACCOUNT MANAGER (CAM) DISCUSSION IDEAS...................3-163.8.1 Organization...............................................................3-163.8.2 Planning and Scheduling.............................................3-173.8.3 Budgeting...................................................................3-183.8.4 Earned Value...............................................................3-203.8.5 Control Account Summary and Issues.........................3-21

APPENDIX A. GLOSSARY....................................................................................A-1

APPENDIX B. ACRONYMS...................................................................................B-1

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LIST OF FIGURES

Figure 3-1. Contract Work Breakdown Structure (CWBS) Tree.................3-11Figure 3-2. Sample Responsibility Assignment Chart...............................3-14Figure 3-3. Sample Control Account Plan.................................................3-15Figure 3-4. Contract Master Schedule......................................................3-22Figure 3-5. Intermediate Schedule...........................................................3-23Figure 3-6. Detail Schedule......................................................................3-24Figure 3-7. Control Account Summary Sheet............................................3-25Figure 3-8. Control Account Issue Report.................................................3-26

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SECTION 1INTRODUCTION

1.1 PURPOSE. Effective management of acquisition programs and contracts requires proper control of cost, schedule, and technical performance, which depends on the establishment and maintenance of a reliable Performance Measurement Baseline (PMB). The Integrated Baseline Review (IBR) confirms that the PMB covers the entire technical scope of work; that the work is realistically and accurately scheduled; and that the proper amount and mix of resources are assigned to accomplish all contractual requirements.

Ballistic Missile Defense Organization (BMDO) Directive No. 5000 series, “Integrated Baseline Reviews,” directs that an IBR be conducted no later than six months following a contract award, or a significant contract modification, on contracts with Earned Value Management Systems (EVMS) Criteria or Cost/Schedule Status Report (C/SSR) requirements. The IBR is conducted jointly by the government and the contractor.

This Handbook provides team leaders and members with a basis for understanding the IBR process. It is a complete reference for planning, staffing, team training, and conducting an IBR and documenting its results. It also provides the structure for preparing program specific IBR Guides tailored for each program in which an IBR is conducted.1.2 IBR GOALS. The IBR process facilitates Project Integrator and Program Manager (herein referred to as PM) ownership of the PMB and management control of the contract. The IBR process is designed to:

Confirm the integrity of the PMB. Foster the use of Earned Value (EV) as a means of communicating the

cost implications of technical and schedule problems. Provide confidence in the validity of contractor cost/schedule reporting. Identify areas of risk (cost, schedule, and technical performance)

associated with the PMB. Involve technical specialists and contract analysts in the IBR process.

1.3 HANDBOOK CONTENT. Section 2 contains comprehensive IBR procedures. Section 3 provides supplemental information and sample documentation. Included

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in this section are notification letters, schedules, a portion of a Statement of Work (SOW) and a Contract Work Breakdown Structure (CWBS), a Responsibility Assignment Chart, and data traces. These Section 3 “information modules” illustrate the contents required for program specific IBR Guides, which are prepared and distributed prior to commencement of actual IBRs. Appendix A is a glossary, and Appendix B is a list of acronyms. (Refer to Section 3.)

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SECTION 2PROCEDURES

2.1 GENERAL. The PM has primary responsibility for the conduct of an IBR. The BMDO Deputy for Program Operations (BMDO/PO) will inform the PM as to which contracts and contract modifications appear to require an IBR. Upon determination that an IBR is required, the PM leads the IBR, or designates a qualified substitute to act as the Team Leader. The Team Leader should identify key technical personnel (from the Integrated Product Team (IPT) if any) to serve as IBR Group Leaders and team members, and should ensure that these individuals are available for IBR orientation briefings and training sessions.

BMDO/PO will designate a senior earned value management (EVM) specialist to assist the Team Leader and provide an appropriate number of EVM specialists for the IBR Team. The following describes all aspects of the IBR including its phases, team membership, training, conduct, and documentation.2.2 IBR PHASES. An IBR is normally divided into four phases.

2.2.1 Initial Phase. During this phase, the Team Leader (supported by the Senior EVM Specialist) identifies team CWBS assignments, drafts a schedule for orientation, prepares an in-plant agenda, and notifies team members. The contractor should provide orientation material describing the company’s Earned Value Management System (EVMS). The Senior EVM Specialist, in conjunction with the PM, prepares a program specific IBR Guide. (Refer to Section 3 of this document for detailed procedures for developing program specific IBR Guides.)

2.2.2 Intermediate Phase. This phase consists of IBR orientation, review of team assignments, preparation for in-plant activities, training, and team logistics. During this phase, the program specific IBR Guide is distributed to all team members. They should study the Guide to familiarize themselves with the details of the contract PMB under review, including the SOW, the CWBS and its corresponding dictionary, appropriate Contract Data Requirement List (CDRL) items, and the program plan. (Refer to Paragraph 2.6.2 below for detailed areas of concentration on which team members should focus.) In addition, team members should review the materials in this Handbook to familiarize themselves with standard IBR procedures and activities.

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2.2.3 Review Phase. During this phase, in-plant activities and any necessary follow up are conducted. The in-plant activity should begin with introductions of all appropriate government and contractor personnel, followed by a refresher orientation on the IBR process. Team members should examine their control account documentation, prepare a tailored list of pertinent questions about the control accounts for which they are responsible, and hold discussions with the control account and other managers. It is essential that they be relevant to the specific IBR being conducted.

2.2.4 Final Phase. This phase consists of analysis of the PMB and risk items required to apprise management of its validity and limitations. If contract modifications or major re-planning significantly alter the baseline, subsequent IBRs may be required.2.3 IBR TEAM MEMBERSHIP. The IBR team is typically composed of the following government and contractor personnel under the IPT concept.

2.3.1 Team Leaders. The government Team Leader (who is the government PM or designated representative) assigns government team members, organizes the team, coordinates the IBR with the contractor PM, and oversees the IBR process. Since the IBR is intended to be a joint government-contractor effort, the contractor PM should be offered the option of being the Co-Team Leader performing like functions within the contractor organization. The Team Leaders are critical to the success of the IBR.

2.3.2 Senior Earned Value Management (EVM) Specialist. This individual is designated by BMDO/PO. Under the overall direction of the IBR Team Leader, the senior EV specialist is responsible for building the team’s understanding of the IBR process; the contractor’s baseline development process; planning, budgeting, and scheduling procedures; and documentation of the EVMS. This individual is also available to assist the IBR POC in coordinating IBR logistics.

2.3.3 IBR Points-of-Contact (POCs). One representative from the government and one from the contractor are assigned primary responsibilities to coordinate the IBR jointly. Their responsibilities include: arranging for team facilities and support resources; advising the Team Leader on team assignments; determining Control Account Manager (CAM) discussion schedules; providing an

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overview presentation of the contractor’s baseline development practices; and providing control account documentation to the team.

2.3.4 Review Group Leaders. These are program office members, preferably from the technical staff, who lead the groups into which the team is divided. They are responsible for examining the baseline with respect to their assigned area of the CWBS and for assigning team members to examine the planning, budgeting, and scheduling of specific CWBS elements down to the control account level.

2.3.5 Technical Staff. These are program management office, BMDO, Executing Agent (EA), and contractor IPT staff members who represent the various disciplines and functional areas (e.g., scientific, engineering, test and evaluation, manufacturing, quality, logistics) and who are assigned to match key technical portions of the SOW with the related CWBS elements.

2.3.6 Earned Value Management (EVM) Staff Specialists. These specialists are government and contractor staff members who are trained in earned value performance measurement techniques. An EVM staff specialist is assigned to each review group.

2.3.7 Other Government Members. These are Defense Contract Management Command (DCMC) staff personnel assigned to monitor the contractor’s technical performance and to perform surveillance of the contractor’s EVMS.

2.3.8 Contractor Staff. These are contractor technical and program control personnel who are integral members of the joint (government/contractor) IBR team.2.4 INDIVIDUAL RESPONSIBILITIES.Team members should accommodate their individual schedules to ensure their full availability for the planning, preparation, and conduct of the IBR. Once members are appointed to the team, it is important to avoid their replacement, thereby nullifying the need for repetitious training and discussion.

2.4.1 IBR Preparation. Team members are required to attend all training sessions. In addition, each team member is responsible for thoroughly reviewing the information contained in this Handbook and the program specific IBR Guide (which includes pertinent reference materials, such as the SOW and descriptions of

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CWBS elements of the contract). Discussions among technical staff members and EVM specialists prior to the conduct of the IBR are encouraged.

2.4.2 Travel. Team members are generally responsible for their individual travel arrangements. The IBR POCs will coordinate the logistics of all travel.

2.4.3 Security. Individual team members will ensure that visit requests are coordinated through their organizational security office, in time for submission to the contractor’s security/visitor control office at least one week prior to the start of the IBR.

2.4.4 Lodging. Accommodations are the responsibility of individual team members. Every effort should be made to stay within the area per diem rate. In order to obtain the Government hotel rate, travelers must present the government rate form at the time of hotel check-in. It is desirable that all team members use the same lodging, to enhance coordination and discussion, and to simplify local transportation. Those members who are unable to make arrangements to stay in the same hotel as the bulk of the IBR team should notify the IBR POC of alternate arrangements.2.5 TRAINING. In coordination with the PM, BMDO/PO sponsors IBR orientation meetings and training sessions. In general, they are conducted as follows.

2.5.1 Orientation Meeting. After individuals have been identified and notified of their selection for team membership, the Team Leader (in conjunction with the Co-Team Leader or contractor POC) schedules and conducts an initial IBR orientation meeting for all team members. The overall plan is discussed, including additional training, preparation, and conduct of the specific IBR. At this meeting, the Team Leader should confirm IBR team member assignments to specific review groups, by CWBS element and Control Account.

2.5.2 Additional Training. Requirements for additional training (beyond orientation) should be based on each group’s overall experience in performing IBRs. Follow-on training for data analysis and its use may also be provided. As needed, BMDO/PO will sponsor additional training sessions. They typically include:

A discussion of the integration between contract technical management and contract performance management.

An overview of the basic concepts of EVM related to the baseline, which include discussion of project/contract organization, task planning,

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resource budgeting, vertical and horizontal scheduling requirements, and EV indicators.

An overview of the contractor’s EVMS process and documentation used for development of the PMB. This training may also include instructions related to examining baseline data traces from the control account level through the CWBS to the total contract level.

2.5.3 Workshop. At the onset of the IBR, BMDO/PO may conduct a brief workshop at the contractor’s site. This workshop provides team members with the IBR agenda and methods, the contractor’s mechanics of baselining, copies of appropriate contractor documentation, final discussion schedules, and a review of basic discussion techniques and ideas.2.6 CONDUCT OF THE IBR. The following describes procedures for performing the actual IBR. Sample documentation and supplemental information are contained in Section 3 of this Handbook.

2.6.1 General - The workshop (discussed above in paragraph 2.5.3) normally includes government and contractor personnel, CAM introductions, and final adjustments to CAM discussion schedules. Team member questions or concerns should be addressed by the Team Leader and the contractor POC prior to the start of CAM discussions. A daily review schedule should be established and time set aside for end-of-day discussions of activities by the joint team. (Refer to Paragraph 2.7.1 below for a detailed description of daily meetings.)

2.6.2 Areas of Concentration. The areas for review by team members include the following.

2.6.2.1 Work Definition Process. Team members should verify that there are no discrepancies between the SOW, the CWBS, the supporting CWBS dictionary, and the contractor’s internal work authorization documentation. (Refer to

Figure 3-1 for sample CWBS, to Figure 3-2 for Sample Responsibility Assignment Chart, and to Figure 3-

3 for Sample Control Account Plan.)

A major goal and benefit of the IBR is agreement between the government technical staff members and their contractor counterparts with respect to technical scope content and performance specifications.

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2.6.2.2 Schedules. Team members should assess the logical sequencing and planned duration of tasks within and among the control accounts and the summary levels of the CWBS. Schedule integration is required both vertically and horizontally. Schedules should be traced to higher schedule levels (vertical integration) to ensure the validity of the Contract Master Schedule (CMS). Identification of horizontal schedule integration points, from one control account to another, should be recorded by the team for comparison with other team discussion results. In addition, the critical path (if any) should be examined and understood. Note that no specific scheduling method or software program is mandated by the Government. Any method, including manual scheduling, is acceptable if it is used properly and works efficiently and effectively. The scheduling review should include material ordering schedules to ensure that scheduled order and “need-by” dates are realistic. (Refer to Figures 3-4, 3-5, 3-6 for sample Contract Master, Intermediate, and Detail Schedules.)

2.6.2.3 Budget Validation. Team members should evaluate the time-phasing, quantities, and types of resources reflected in control account budgets to determine if the resources are appropriate and adequate to support the technical content within the planned schedule. Control account budgets may reflect a combination of labor (appropriate skills and competency), subcontract effort (technical content, scheduled delivery date and cost), and material costs to accomplish the work. Team members should also trace the budget between the negotiated contract value and the amounts identified in the work/budget authorization documentation. If a review group discovers that control account and/or summary level budgets are significantly different from the negotiated costs, the contractor should be asked to explain the differences. The review group should bring such circumstances to the attention of the Team Leader.

2.6.2.4 Risk Identification. Control Account Summary Sheets, see Figure 3-7, which are prepared immediately following the CAM discussions, should highlight probable areas of cost/schedule/technical risk and rate them as high, medium, or low. Rationale for the assessed degree of risk should also be explained. (Refer to Paragraph 2.7.3.1 below for details concerning Control Account Summary Sheets.)

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2.6.2.5 EVM Indicators. Team members should review the EVM indicators selected by the CAM to determine if they are appropriate for the tasks. The measurement indicators normally should be objective, readily identifiable events and may be subjective in nature only when an objective indicator is unavailable.

2.6.3 CWBS Assignments. During the IBR, a primary objective is to review the quantified technical effort. Since time is limited, the review should concentrate on high dollar areas and those that represent areas of major risk to the successful completion of the contract. The risk areas may be in cost, schedule, or technical performance, or any combination.

2.6.4 Subcontract Considerations. The IBR team should evaluate the primary elements of major subcontractor baselines as part of the prime’s IBR. Conduct of the prime contractor’s IBR, however, should not be delayed pending implementation of subcontractor baselines. The IBR Team Leader may consider conducting several separate IBRs as major subcontracts are negotiated and baseline data becomes available. At a minimum, government IBR team members involved with subcontracted CWBS elements should be available to support IBRs at the corresponding major subcontractor sites to ensure that there are personnel familiar with program details. Factors to consider when determining the need to evaluate subcontract baselines include technical risk, criticality of subcontract performance, schedule risk, and subcontract dollar values.

2.6.5 CAM Discussions. These discussions should produce the information required to perform a complete review. (In addition to the following guidelines, refer to paragraph 3.8 for suggested discussion topics.)

2.6.5.1 Discussion Assignments & Schedule. Review Group Leaders should assign individual team members to specific areas of responsibility for each CAM discussion and the related documentation to be examined. Assignment selections should be made to best match an individual member’s expertise with the content of the control account. Discussions should be conducted according to the discussion schedule. The individual CAM discussions are scheduled by the Team Leader in coordination with the contractor POC. Therefore, requests for changes to the discussion schedule should be submitted to the Team Leader and should include the rationale for the request.

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2.6.5.2 Discussion Attendance. Attendance should be limited to the minimum number necessary. Therefore, Group Leaders should select individual team members to attend the CAM discussions. The CAM should be supported by an earned value analyst and a scheduler.

2.6.5.3 Discussion Location. It is desirable to hold discussions in the CAM’s usual working space to facilitate access to supporting documentation and staff.

2.6.5.4 Discussion Plan. Group Leaders are responsible for the following actions in preparation for each of the individual discussion sessions:

Select the team members to attend. Review data and develop tailored questions to ensure a focused

discussion. Assign subject areas and questions to individual group members. If additional supporting documentation is needed, request it

through the IBR Team Leader from the contractor POC in advance of the scheduled discussion.

Assign one or more group members to take notes during the discussion and to prepare the Control Account Summary Sheet. (Refer to Paragraph 2.7.3.1 below for Control Account Summary Sheet preparation.)

2.6.5.5 Conducting the CAM Discussion. The CAM discussion should be conducted as follows:

The Group Leader should introduce team members, and state their organizations, the reason they are part of the discussion, and the subject areas for which they are responsible.

The Group Leader should explain the purpose of the discussion and answer any questions the CAM may have prior to the start of the discussion.

At least initially, the Group Leader should encourage the CAM to take the initiative to describe the control account planning, budgeting, scheduling, and baseline considerations that entered into the baseline development.

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Control Account documentation should include work and budget authorization documents that authorized the control account; a description of the technical scope; specifications for technical performance; work task schedules; and time phased budgets, including their composition. As discussed previously, team members should be familiar with the hierarchical nature of the baseline data.

Each group should initially look at the bottom level data (i.e., the control account and its constituent Work Packages (WP)). Team members of each review group should ensure that data (tasks, CWBS, schedule, and budget) summarize accurately from the control account to the assigned CWBS element.

Data traces should be performed to illustrate and document the contract’s data flow, as defined by the contractor’s EVMS and the CWBS, to demonstrate that all of the work in the contract is included properly. Budget and schedule data traces should provide assurance that all technical requirements flowing from the SOW and WBS Level 1 (top) are included at the control account level (bottom). Data traces may be accomplished either as a “top-down” or as a “bottom-up” exercise.

The discussion session should be focused since time is important to both the CAM

and the group. Side discussions should not be permitted. Team members should

concentrate on the IBR issues (i.e., technical scope definition, task planning, work

schedules, resource allocation and the application of objective earned value

measurement indicators). Keep discussion relevant to IBR issues.

The group should not provide guidance, enter into a debate, or disagree with the CAM’s answers.

Team members should try not to exceed the time allotted for the discussion. If additional discussions are desired, the CAM should be informed that the Group Leader will contact the contractor IBR POC to schedule and coordinate another session. In that case, the CAM should be informed of the planned discussion topics, the documentation needed, and the expected length of the follow-up

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session. Follow-up discussions should be scheduled as soon as possible after the initial discussion.

If issues or areas of risk are identified, they should be recorded for inclusion into the Control Account Summary Sheet and, as appropriate, for use in the preparation of an Control Account Issue Report. (Refer to Figures 3-7 and 3-8).

The group’s mission should be confined to gathering information about the work scope, planning, scheduling, and budgeting used in the development of the baseline, the EVM indicators being used by the manager, and any risk associated with the effort.

2.7 DOCUMENTATION, MEETINGS, REPORTS & AFTER ACTIONS. The Team Leader should maintain a record of activities and open issues during the IBR. In addition, at the completion of the IBR, a list of any unresolved issues and follow-up action items should be developed by the Team Leader. He or she is encouraged to use the expertise available from the Defense Contract Management Command (DCMC) office and the Defense Contract Audit Agency (DCAA) staff to assist in follow-up activities. There is no requirement for a formal IBR report to be submitted by the Team Leader after completion of an IBR. The intent of the IBR is met when both government and contractor PMs are satisfied that the baseline represents the contract scope of work, a realistic detailed schedule, and a budget plan to accomplish and measure performance. The following summarizes activities and documentation required during and after completion of the IBR.

2.7.1 Daily Meetings. Since a primary objective of an IBR is to confirm the integrity, validity, and joint understanding of the baseline, good communication is vital. Daily IBR team meetings are essential for maintaining effective communication. These are normally end-of-day de-briefing sessions which include contractor personnel to promote joint problem solving and prevent an “us versus them” environment.

2.7.2 Follow-up Discussion. After the completion of a CAM discussion, the Group Leader should determine if a follow-up discussion with the CAM is needed. If so, a request should be submitted to the Team Leader. (Refer to 8th bullet of paragraph 2.6.5.5.)

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2.7.3 Documentation Requirements. While there is no requirement for a formal overall IBR report, each Group Leader is responsible for documenting the group’s discussion and review results. This documentation supports the group’s understanding of how well the control account has been established and its soundness. To record its observations following the CAM discussions, the review group should prepare a Control Account Summary Sheet (Figure 3-7). In addition, if a significant problem area is identified, the group should also prepare a Control Account Issue Report (Figure 3-8). Summary Sheets and Issue Reports should be prepared in conjunction with the CAM, if appropriate, and should be turned in to the Team Leader following CAM discussions and discussed during the daily meeting, as applicable.

2.7.3.1 Control Account Summary Sheet. These forms are used to document CAM discussions. The Control Account Summary Sheet should address the assessment of cost, schedule, and technical risk, as follows:

Observations should include, but are not limited to, the accuracy, completeness, reasonableness, and consistency of schedules, time-phased budgets, the SOW, the CWBS, and control account task descriptions.

Comments may also be provided concerning the objectivity of the EVM indicators selected to reflect accomplishment of work. In addition, any perceptions regarding the CAM’s knowledge and use of the company’s EVMS procedures should be recorded.

Time should be set aside in the IBR schedule for members to conduct follow-up activities, trace data, clarify information, and when necessary, substantiate CAM responses.

The Group Leader should assign individual team members to follow-up on any open issues that need to be resolved or documentation that must be obtained prior to the preparation of Summary Sheets or Issue Reports.

After review and approval by the Group Leader, Control Account Summary Sheets, with attached supporting documentation, should be submitted to the Team Leader for review and internal discussion

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during joint daily de-briefings. (A sample Control Account Summary Sheet is provided in Figure 3-7.)

2.7.3.2 Control Account Issue Report. This report should be prepared (in addition to the Control Account Summary Sheet) when the team finds any information suggesting that the technical scope, work authorizations, task schedules, allocated resources or risks may not have been adequately addressed. If the EVM indicators are subjective when the detailed task requirements and schedule would make objective indicators feasible, then this may also be an item for a Control Account Issue Report. These reports, including supporting documentation, should be submitted to the Team Leader. (A sample Control Account Issue Report is provided in Figure 3-8.)

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SECTION 3SUPPLEMENTAL INFORMATION & SAMPLE DOCUMENTATION

3.1 GENERAL. This Handbook should be used as a reference for the overall conduct of IBRs in terms of procedures and staffing. In addition, the “information modules” contained in this section form the basis for development of program specific IBR Guides (as described below in the following paragraph). To the extent practical, this section is intended to provide samples of documentation typically required by IBR Team members to perform the review.3.2 PREPARATION OF PROGRAM SPECIFIC IBR GUIDES. The POC, in conjunction with the PM, prepares a program specific IBR Guide prior to the commencement of an IBR. The IBR Guide provides team members with a program description and pertinent details. The following summarizes the typical table of contents of the program specific IBR Guide:

Cover: To ensure consistency, the cover should include:(Program Name) IBR GuideContractor NamePlanned Dates for IBR ConductLocation of IBRDate IBR Guide Prepared

Section 1: General Introduction & Purpose. Append Contractor Notification Letter w/Enclosures, including a preliminary IBR Schedule, a list of IBR Team Members, and overall documentation requirements. (Refer to paragraph 3.3 for samples.)

Section 2: Program/Contract Information Summary. (Refer to paragraph 3.4) for samples.)

Section 3: Documentation & Assignments. Append specific team assignments, SOW, CWBS, CWBS Dictionary, Responsibility Assignment Matrix (RAM) or Chart, Control Account Plan, Control Account Manager discussion ideas, glossary, acronyms, contract master schedule, intermediate schedule, Control Account Summary Sheet form, and Control Account Issue Report form. (Refer to paragraphs 3.5 through 3.8 and Figures 3-1 through 3-8 for samples.)

Appendices: Glossary and Acronyms. (Refer to Appendices A and B).

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3.3 CONTRACTOR NOTIFICATION LETTER w/Enclosures. The following is a sample letter and enclosures to be sent to contractors and government offices to establish the framework for an IBR.

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XYZ CompanyAttention:(Company Address)

Subject: Integrated Baseline Review (IBR)Contract BMDO84-91-C-XXXX

Reference: BMDO/DCT letter of (date)

Dear :

The referenced letter announced the intention to conduct an Integrated Baseline Review (IBR) during the week of (date). This IBR will be held at (location). This letter provides a preliminary review schedule and agenda for the IBR (enclosure (1)), a list of participants in the IBR (enclosure (2)), and the documentation requirements for the IBR (enclosure (3)). Two sets of the enclosure (3) documentation will be required, one to remain intact and used solely for reference, and the other to be used for making copies as necessary. The assignments, by work breakdown structure element, for the government and your participants on the team will be discussed at the (date) meeting in (location).

For the review, separate visit notifications will be forwarded by the team members’ respective organizations. We request that non-escort badges be issued to team members.

Please make arrangements for a meeting room for the IBR team at (location) with a telephone and access to personal computers having word processing and spreadsheet software. Additionally, please identify a (Company) point of contact to provide administrative and logistic support during the review.

This letter neither authorizes nor implies any change to the terms and/or scope of the subject contract. If you disagree, you shall take no action and contact the Procuring Contracting Officer immediately.

If you have any questions regarding the IBR, please contact Mr. Billy G. Love, BMDO/PO, at (703) 604-0141, or Mr. Michael J. Wallace, BMDO/POC at (703) 413-0361.

ANTHONY J. WAYLONISDirector, Planning and Control

Enclosures: As statedcc:BMDO/DCTBMDO/AQ JNPEO/PM__(program or project)__ DCMC Office, (location)___

3.3.1 Preliminary IBR Schedule. The following is a sample schedule.

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XYZ COMPANYINTEGRATED BASELINE REVIEW

ABC PROGRAM(Date)

PRELIMINARY SCHEDULE

First Location(Date)

0700 – 0730 Arrive at (location) and Badge-In0730 – 0830 Introductions, BMDO Briefing 0830 – 0930 Company Baseline Process Talk-Through 0930 – 0945 Break0945 – 1130 Documentation Review by IBR Team 1130 – 1230 Lunch1230 – 1630 CAM Discussions (Time extended as necessary.) 1630 – 1730 IBR Team Meeting*

Travel Day to second location (if needed)

Next Day(Date)

0700 – 0730 Arrive at (location) and Badge-In0730 – 0830 Introductions, BMDO Briefing0830 – 0930 Company Baseline Process Talk-Through0930 – 1130 Documentation Review by IBR Team*1130 – 1230 Lunch1230 – 1630 CAM Discussions (Time extended as necessary.)1630 – 1730 IBR Team Meeting*

(Date)

0800 – 1000 Follow-up Issues; Draft Issue Papers1000 – 1100 IBR Team Meeting*1100 – 1200 Outbrief

* Including Government and Company representatives

Enclosure 1

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3.3.2 Review Team Members. The listing of IBR team members should include position, name, organization (government agency or company), and telephone number (including area code), as shown in the following example. (Refer to paragraph 2.3 for team member position descriptions.)

XYZ COMPANYABC PROGRAM

IBR

REVIEW

Team Member Organization & Telephone No.

Team Leader (name) ABC Program Office (Tel.)Co-Team Leader (name) XYZ Company (Tel.)Sr. EV Mgmt. Spec/ Asst. Team Leader (name) BMDO/PO (Tel.)IBR POC (name) BMDO/EA (Tel.)IBR POC (name) XYZ Company (Tel.)Review Group Leader (name) ABC Program Office (Tel.)Review Group Leader (name) ABC Program Office (Tel.)Review Group Leader (name) XYZ Company (Tel.)Technical Staff (name) ABC Program Office (Tel.)Technical Staff (name) ABC Program Office (Tel.)Technical Staff (name) XYZ Company (Tel.)EV Mgmt. Staff Spec (name) XYZ Company (Tel.)EV Mgmt. Staff Spec (name) XYZ Company (Tel.)Other Government (name) DCMC (Tel.)Other Government (name) DCAA (Tel.)Contractor Staff (name) XYZ Company (Tel.)Contractor Staff (name) XYZ Company (Tel.)

Enclosure 2

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3.3.3 Documentation Requirements.The following is a listing of typical documents required to conduct an IBR.

XYZ COMPANYINTEGRATED BASELINE REVIEW

ABC PROGRAM

CONTRACTOR DOCUMENTATION REQUIREMENTS

1. Contract Work Breakdown Structure (CWBS) (and CWBS Dictionary, if any).

2. Program (Project) Organizational Structure.

3. Responsibility Assignment Matrix or Chart (dollarized).

4. Work Authorization Documents.

5. Program Schedules, including Contract Master Schedule and detail schedules that support control accounts.

6. Control account plans or equivalent.

7. Records documenting contractual changes and internal actions.

8. Current earned value performance report (CPR or C/SSR) and CFSR.

9. Earned value management system procedural documents.

10. List of major subcontractors and major vendors, including description of product, applicable CWBS element, value of subcontracts/purchase orders, period of performance, and responsible control account manager.

11. Basic contract and modifications.

Enclosure 3

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3.4 PROGRAM/CONTRACT INFORMATION SUMMARY. The following is a description of the ABC Program with typical milestones.

The contract for the ABC Program, No. MNDO84-91-C-XXXX, was awarded (date) to the XYZ company, located at (location), to design and develop vehicle technologies compatible with affordable interceptors to perform high and low endo-atmospheric defense against ballistic missiles. The goal of the ABC Program is to produce an integrated payload experimental vehicle with a mass of less than XX kilograms. The government will provide ABC flight test services, including booster capabilities, from sources other than this contract. In order to accomplish this goal, the program will exploit emerging technologies in advanced seeker heads and component designs. Light weight seekers and other components will be combined with interceptor integration technology to develop high performance experimental vehicles.Major Milestones - The contract has the following major milestones:

Start Phase II, (date)Preliminary Design Review, (date)Phase II Complete, (date)Start Phase III, (date)Critical Design Review, (date)Start Phase IIIA, (date)Phase III, Complete (date)Phase IIIA Complete (date)

3.5 CWBS, CWBS DICTIONARY, AND CWBS TREE. The following is an abbreviated sample of a CWBS, its corresponding dictionary, and a CWBS Tree (see Figure 3-1).

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SAMPLE CWBS

CWBS Element # CWBS Element Title Page

1. ABC CONTRACT 11.1 ABC TEST INTEGRATION AND MANAGEMENT 11.1.1 TECHNICAL INTEGRATION MANAGEMENT 11.1.2 SYSTEMS ENGINEERING 11.1.3 ENGINEERING DESIGN ANALYSIS 21.1.4 TEST ENGINEERING & OPERATIONS 21.1.5 ANALYSIS & REPORTS 21.2 ABC OPTICAL TEST SUBSYSTEM (OTS) 21.2.1 OTS SYSTEM ENGINEERING 21.2.2 OTS INTEGRATION 31.2.3 BEAM EXPANDER SUBSYSTEM 61.2.4 BEAM CONTROL & TRANSFER SUBSYSTEM 101.2.5 INTEGRATION & TEST SUPPORT 131.2.6 PROGRAM MANAGEMENT 151.3 ABC FACILITY & OPTICS 171.3.1 SYSTEM ENGINEERING 171.3.2 BEAM STEERING AND ALIGNMENT SUBSYSTEM 171.3.3 HIGH POWER OPTICS 181.3.4 TEST FACILITY 191.3.5 INTEGRATION AND TEST 201.3.6 SYSTEMS EFFECTIVENESS 211.3.7 BUSINESS MANAGEMENT 221.3.8 SUBCONTRACTS ADMINISTRATION 221.3.9 PROGRAM MANAGEMENT 221.3.10 DIAGNOSTICS SUBSYSTEM 231.4 PROGRAM MANAGEMENT 241.4.1 PROGRAM/BUSINESS OPERATIONS PROGRAM SUPPORT 241.4.2 MATERIEL & SUBCONTRACT MANAGEMENT 241.4.3 PRODUCT ASSURANCE 241.4.4 PROPOSAL 241.5 OPTICS 241.5.1 SUBSYSTEM ENGINEERING 251.5.2 MIRROR ASSEMBLY FABRICATION 251.5.3 OPTICAL FINISHING 251.5.4 OPTICAL COATING & METROLOGY 251.5.5 SUBCONTRACT ADMINISTRATION 261.5.6 SYSTEM EFFECTIVENESS 261.5.7 OPTICAL HARDWARE 261.5.8 BUSINESS MANAGEMENT 261.5.9 OPTICS PRECUT MANAGEMENT 261.6 UNCOOLED OPTICS SUBSTRATES & METROLOGY 261.6.1 UNCOOLED OPTICS DEMONSTRATION (Helios) 261.6.2 SUBSTRATES (SILICON CASTINGS) 261.6.3 UNCOOLED OPTICS METROLOGY (HELIOS) 26

SAMPLE CWBS DICTIONARY(Abbreviated)

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1. ABC FABRICATION AND OPERATIONS. This WBS element is the summary point for all Fabrication and Operations effort.1.1 ABC TEST INTEGRATION AND MANAGEMENT. This WBS element is the summary point for test integration and technical management effort for the ABC experiment.1.1.1 TECHNICAL INTEGRATION MANAGEMENT. This WBS element provides technical program management functions and overall coordination of the ABC test program activities. It provides for: (a) an ABC program manager and chief scientist; (b) conduct of periodic program management reviews and documentation thereof; (c) conduct and participation in the annual review of program plans; (d) technical management of the major ABC subcontractors including liaison with each subcontractor to ensure proper focus of subcontract work; (e) integration of design activities; (f) review of work and schedule performance; (g) technical management of the engineering design tasks; (h) the conduct of engineering design status meetings; (i) statusing of design project schedules; (j) review of all design packages for completeness and compliance with the design baselinel; (k) coordination and conduct of annual reviewsl; and (l) oversight of Configuration Item (CI) and component testing at subcontractor facilities.1.1.2 SYSTEMS ENGINEERING. This WBS element provides the Systems Engineering effort required to: (a) develop, document and maintain system level technical performance goals and design requirements; (b) identify and coordinate the definition and documentation of subsystem to subsystem interfaces; (c) develop the technical program plan; and (d) provide conceptual and detail planning of the experiment, including the ABC Experiment Description Document (DD) and the ABC Test Plan. Tasks performed in this element also include engineering control of the system configuration, including (a) the processing of change summaries; (b) oversight of subcontractor conducted CI Design Reviews; (c) coordination and conduct of System Engineering working groups; and (d) oversight of the effort to design, fabricate, and construct the ABC test facilities and support equipment, including overall design and construction surveillance to assure requirements are satisfied.1.1.3 ENGINEERING DESIGN ANALYSIS. This WBS element provides design analyses and design integration of the test hardware, the facility and the test equipment,

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including review of detail design, design drawings and equipment specifications to ensure compliance with design constraints, interface control drawings and performance specifications. Attendance at design review meetings may be necessary.1.1.4 TEST ENGINEERING AND OPERATIONS. This WBS element provides: (a) the oversight management of test activities associated with the ABC program; (b) oversight integration and test operations to be performed at the test site, including participation in the experiment integration and operations, review and approval of test procedures; (c) preparation of the top-level operations networks and associated schedules; and (d) preparation of the integrated sub networks and schedules. This element also includes the conduct of the experiment test readiness reviews.1.1.5 ANALYSIS & REPORTS. This WBS element provides the support to analyze the results of each major test to determine system and subsystem performance. Data Reviews will be conducted. Quick-look and final test reports shall be submitted in accordance with the CDRL.1.2 ABC OPTICAL TEST SUBSYSTEM (OTS)1.2.1 OTS SYSTEM ENGINEERING. This WBS element is the summary point for the effort and resources required to provide the ABC OTS Systems Engineering (SE) support.

Requirements: Assist the XYZ Company in defining the ABC system level requirements (including facility requirements) and support XYZ in the decomposition of these system level requirements to the OTS level requirements. As an extension to the ABC Program Technical Guidelines Document, external interface requirements will be negotiated and documented by SE. SE will assist in the development and flowdown of these system level requirements and interfaces to the Beam Expander Subsystem (BES) and Beam Control and Transfer Subsystem (BCTS). To support these flowdowns, SE will coordinate, document, and maintain documents such as error budgets, H/W-S/W architecture trees, subsystem level diagrams, and the Program Requirement List (PRL). Configuration control will be maintained through the Configuration Control Board chaired by SE.

Performance Analysis & Verification: BCT and BES Subsystem Performance Analysis: Provide top-level analysis of the OTS performance. Limited end-to-end performance predictions will be carried out, within the constraints of the ABC

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minimal design approach. To the extent practicable, design margins will be established between specifications and performance predictions.

Provide verification audits of the BCTS and BES designs. The audit will include both subsystems and component designs and will verify the designs against OTS level documentation. Provide top level design review support for the ABC BES and BCTS Subsystems, with the XYZ Company to include resolution of action items. The SE function will validate completeness and accuracy of the design engineering and analysis effort.1.2.2 OTS INTEGRATION. This WBS element is the summary point for: (a) integration efforts to ensure the OTS functions properly as a combined element; (b) supervision and coordination of the integration of the OTS at the test facility; (c) maintenance support of the test configuration and test facility integration requirements; and (d) test planning.

Test Verification: Provide support in establishing integration schedules which validate the OTS level requirements and interfaces. Develop test correlation matrix to document methods used to ensure that OTS level requirements are validated.

Integration Technical Direction: Provide technical direction and staff support for the OTS integration and test tasks for the ABC experiment. This includes planning, planning maintenance, scheduling, statusing, and technical direction throughout the integration and testing process.

OTS Design Integration: Maintain the following design documentation in support of the OTS design and integration activity:

1. Engineering Drawing List (EDL)2. Engineering Drawing Trees3. Functional Flow Diagrams4. OTS Element Schematics5. OTS Configuration Layouts and Installation Drawings6. Weight and Utilities Summaries7. Engineering Design Document8. Support to design reviewsEngineering Release: Initiate and maintain engineering drawings and

specification approval. For ABC, formally release the drawing packages. Lead engineers will have responsibility for drawings, etc.

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3.6 TEAM ASSIGNMENTS. A sample layout of team tasking follows. It is partial and is not intended to be all inclusive.

INTEGRATED BASELINE REVIEW (IBR)XYZ Company

(Company Address)(Contract Number)

(Date)

SAMPLE TEAM ASSIGNMENTS

WORKSHOP TEAM

CONTRACTOR EVMS BRIEFING TEAM

CWBS ELEMENT 1.1 GROUP 1






DAILY MEETINGS TEAM (JOINT CONTRACTOR/GOVERNMENT)

3.7 CONTROL ACCOUNT SOURCE DOCUMENTS & SAMPLE DATA TRACE. The SOW Extract, CWBS (and CWBS Dictionary if any), RAM, and Control Account Plan are considered basic items necessary to document control account data traces. Following are samples of a SOW extract, RAM (or, as shown in the example, its substitute, a Responsibility Assignment Chart) and Control Account Plan. They have been abbreviated where appropriate to save space in this document.3.7.1 Sample SOW Extract Paragraphs.

x.x.x Seeker Head Selections. Based on the results from the Aperture Viability Experiments, and seeker operational limits definitions performed in the AOEC, the contractor shall select as appropriate number of seeker head designs to recommend for development. The contractor shall identify all high risk components, and their effects on development costs and schedule. (CDRL Item B003)

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x.x.x Seeker Head Detailed Designs. Detailed designs of the seeker head(s), selected in response to x.x.x above, shall be developed; all technologies being developed under the Aperture Viability Experiments shall be considered. The seeker head consists of a form, fit, and function aperture and sensor package that is compatible with the baseline design. Consideration shall be given to aperture-seeker interactions, error models shall be developed, special corrective algorithms identified (such as corrections for shock induced changes of refractive index), structural vibration limits and requirements for the reflector or radome in its various bending modes defined, and IMU-seeker operational alignment tolerances shall be specified. Tailored Level II drawings shall be developed. (CDRL Items B004, A007)

x.x.x Phase I Final Report and Phase II Development Plans. The contractor shall submit a final report documenting results of all design and simulation efforts performed in phase I, and plans for performing Phase II. The final report shall cover at least the following topics: 1) concept definitions and sensitivity analyses; 2) evaluations of aperture concepts; 3) vehicle designs; 4) description of operational sequence; 5) simulations and results; 6) derived requirements for major components; 7) descriptions, performance and risks of components; and 8) detailed development plans for fabrications and testing of the seeker head designs. All hardware required to measure seeker head performance in the AEOC shall be identified. In addition, all other required government furnished facilities and equipment shall be identified. (CDRL Items B005, B006)

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3.8 CONTROL ACCOUNT MANAGER (CAM) DISCUSSION IDEAS. To supplement the procedures contained in paragraph 2.6.5, the following provides specific sample CAM discussion topics. They are divided into organization, planning and scheduling, budgeting, and earned value discussion topics.

3.8.1 Organization:a. If not already known, the following discussion items will help

identify the role of the Control Account Manager (CAM) within the contract working environment:(1) What this CAM does; what this CAM is responsible for (2) How this CAM’s tasks were defined from the statement of work

(SOW) down through the Contract Work Breakdown Structure (CWBS)

(3) How this CAM’s tasks relate to the various WBS elements/tasks(4) How this CAM fits into the project organization(5) How this CAM’s efforts are supported by, and support, other

CAMs(6) How this CAM is supported by business management and

project plannersb. The types of documents you will review for this area include:

(1) The SOW/specifications(2) The CWBS (and its Dictionary, if any)(3) The Work Authorization Document(s)(4) The Organizational Chart(5) The Responsibility Assignment Matrix (RAM) or Chart.(6) The Program Plan

c. Examine this CAM’s records and ask for an explanation of how the SOW requirements/specifications are broken down from the system level to this CAM’s tasks. This breakdown should be adequately documented and described if there is a CWBS Dictionary.(1) The tasks should be identified in and adequately described by

the company’s work authorization documents (WADs).(2) Examine and discuss the information contained in the WAD for

this CAM’s control account(s), and trace examples of the

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technical work content (including SOW requirements, performance specifications and control account work scope) to the WAD to determine that the work is adequately/accurately described. Determine whether the relationships between the CWBS, tasks, and organization are evident and whether subcontract and/or material requirements are identified. For subcontracts, ascertain whether the CAM has subcontractor information which correlates with his task descriptions?

d. In discussions with the CAM, identify the technical risk in producing the output products of CAM’s tasks. Note whether the CAM agrees with the risk items and their risk level, i.e., high, medium, low.

Prior to CAM discussions, you should understand the contractor’s numbering scheme used to organize information and data. These include the structure of the SOW/CWBS, the accounting or charge numbers, the control accounts, and the schedules, and the manner in which the contractor relates these numbering schemes.

A review of these documents should normally be done prior to the CAM discussions to help focus the discussions.

3.8.2Planning and Scheduling:a. The type of documents you will review for this area include:

(1) The SOW and Contract Schedule(2) The CWBS (and the CWBS Dictionary, if any)(3) Master, Intermediate, and Detail Schedules(4) Work Authorization Documents(5) Control Account Plans and Work Packages(6) Bills of Material and Procurement Plans(7) Subcontract Schedules

b. Scheduling is a top down/bottom up activity done in parallel with the task development. This effort results in a Program Plan with a Master Schedule (see Figure 3-4), Intermediate Schedules (if used) (see Figure 3-5), and Control Account (Detail) Schedules (see Figure 3-6) based on the CWBS.

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Task planning at the Control Account/Work Package (CA/WP) level uses the task descriptions from the organization process above, and the Master and Intermediate Schedules, to produce Detail Schedules and (for most contractors) network schedules. The Master through Detail Schedules provide the timing of events that relate and support the contract schedule.

The schedule interrelationships (horizontal, vertical, and critical path) are normally reflected in the network schedules. (If networks are not used, then the schedules (e.g., GANTT/milestone) still must have a way to depict interrelationships). Determine whether:(1) The master schedule accurately represent the Contract

Schedule (2) The schedules (Master, Intermediate, Detail) adequately and

accurately trace events and activities (top down) from the Master through to the Detail Schedules

(3) There are sufficient tasks and task milestones to objectively measure progress, and if they trace up to the Master Schedule (bottoms up)

(4) Logical and accurate horizontal and vertical interrelationships are identified

(5) When networks are used, a critical path is identified, and if any of the CA/WP activities are on the critical path

(6) Material requirements and procurement lead times are identified

(7) Subcontract efforts are integrated into the prime’s schedules with sufficient detail to track progress, the CAM has subcontractor back up data and schedules, and the data correlates with the prime’s schedules

c. In discussion with the CAM, identify schedule risk items. Note whether the CAM agrees with the risk identification (and their rating of high/medium/ low).

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3.8.3 Budgeting:a. The documents you will normally review include:

(1) SOW/Contract Schedule/CLIN item negotiated costs(2) Work/Budget Authorization Documents(3) Control Account Plan and Work Package Documents(4) Subcontract Schedule and Subcontract Line Item Values(5) Bill of Material, Engineering Drawings and Estimates(6) Procurement Plans, Purchase Requests and Orders

b. The budgeting process works parallel to and interactively with the task development and breakdown (SOW through WBS to task), and the scheduling activities. The finalization of the budget, time phased in the Control Accounts and Work Packages, completes the baseline process.

Budgeting is done by the CAMs for all the direct costs associated with the assigned tasks. The direct costs are usually identified by cost element: direct labor, subcontracts, material, and travel (and occasionally, computer usage). Usually, direct labor is planned in hours by the CAM. This planning of direct labor hours should have a logical basis for the amount of hours. Historical data or a rationale should exist to back up the hours planned.(1) Examine the direct labor time-phased budget as to whether

the assigned resources seem reasonable for the scheduled tasks (type of labor, timing of labor usage, and quantity of labor), and whether the incremental budget values (i.e., monthly) directly link to the scheduled events for that period.

(2) Examine the subcontracted effort, and determine if the allocated budget is sufficient to support the task and task schedules, if it correlates with the subcontractor data, and if the budget is time-phased in increments which tie to or marry with the recording of the actual costs to be incurred.

(3) Examine the material requirements, and ascertain whether the allocated material budget is sufficient to acquire the needed material, whether there is supporting data such as a bill of

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material, engineering drawings, etc., if the budget is time-phased in increments which tie to or marry with the recording of the actual costs to be incurred, and the basis for budgeting the subcontracts.

c. In discussion with the CAM, identify cost risk based on the technical task requirements and schedule. Note whether the CAM agrees with your risk identification (and your assessment of high/medium/low).

3.8.4 Earned Value:a. The documents you will normally review are listed in the

documentation discussed in paragraphs 3.8.1, 3.8.2, and 3.8.3 above.

b. Earned value is the value of work accomplished. It is based on the time-phased budget for the work planned. Earned value should be measured (i.e., earned) on the basis of objective events (e.g., milestones) derived from the task requirements and shown on the task schedule. There should be sufficient measurement indicators identified (ideal is one or more per month for each work package) to provide an accurate indication of progress. Determine if:(1) The CAM can describe how the earned value measurement

points relate to the budget, schedule, and technical requirements.

(2) To the extent practical, these measurement indicators are objective, readily identifiable events (directly related to the achievement of the technical requirements), or if they are subjective estimates such as a personal appraisal of the value of work accomplished based upon the CAM’s judgment as to the work completion to-date. A considerable amount of subjective or judgmental earned value measurement indicators may indicate that the detail planning (task level) is not sufficient.

If the CAM has organized (see paragraph 3.8.1 above) and planned (see paragraph 3.8.2 above) the work adequately and

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accurately, it will normally produce a time-phased budget (see paragraph 3.8.3 above) based upon sufficient concrete, objective events. This time-phased budget will then provide proper and adequate earned value measurement points.

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3.8.5 Control Account Summary and Issues:a. The Control Account Summary Sheet (see Figure 3-7) may be used

to summarize and document the results of the CAM discussions.b. The Control Account Issue Report (see Figure 3-8) may be used to

identify and document control account issues requiring resolution.

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APPENDIX AGLOSSARY OF EARNED VALUE MANAGEMENT TERMS

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, G&A, etc. allocated to the activity.)Administrative Contracting Officer (ACO ) . The individual within the Contract Administration Office (CAO) responsible for ensuring that the functions described in DFARS 242.302 are completed by the contractor in accordance with the terms and conditions of the contract.Applied Direct Costs. The actual direct costs recognized in the time period associated with the consumption of labor, material, and other direct resources, without regard to the date of commitment or the date of payment. These amounts are to be charged to work in-process when any of the following takes place:

When labor, material and other direct resources are actually consumed. When material resources are withdrawn from inventory for use. When material resources are received that are uniquely identified to the

contract and scheduled for use within sixty days. When major components or assemblies that are specifically and uniquely

identified to a single, serially numbered end-item are received on a line-flow basis.

Apportioned Effort. Effort which by itself is not readily divisible into short-span work packages but which is related in direct proportion to some other measured effort.Authorized Unpriced Work. Contractual effort for which written authorization has been received by the contractor but for which costs have not been agreed upon and definitized into the contract.Authorized Work. Effort which has been definitized and is on contract, plus that effort for which definitized contract costs have not been agreed to but for which written authorization has been received.Baseline. See “Performance Measurement Baseline.”

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Bill Of Material (BOM ) . A listing of material items required to complete the production of a single unit. When actual or expected prices are applied, it becomes the Priced Bill of Material (PBOM).Bottoms –Up Cost Estimate. An estimate derived by summing detailed cost estimates of the individual work packages and adding estimated level of effort plus appropriate indirect cost estimates. Frequently accomplished as an independent analysis by Industrial Engineering, Price Analysis and Cost Accounting.Budget. A plan of operations for a fiscal period in terms of estimated costs or hours.Budget At Completion (BAC ) . The sum of all budgets established for the contract. (See Total Allocated Budget.)Budgeted Cost For Work Performed (BCWP) (or Earned Value). The sum of the budgets for completed work packages and completed portions of open work packages, plus the applicable portion of the budgets for level of effort and apportioned effort.Budgeted Cost For Work Scheduled (BCWS) (or Planned Value) 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.Budgeting. The process of translating approved resource requirements into a time-phased plan for accomplishing work.Burden. See “Indirect Expense” and “Overhead.”Burdened Cost. The sum of direct cost plus all applicable indirect cost.Contract Budget Base (CBB). The negotiated contract cost plus the estimated cost of authorized but unpriced work.Contract Change Order. A formal revision or change to a contract which may impact the scope of work, schedule, cost, price, and/or other contractual requirements.Contract Data Requirements List (CDRL). A compilation of all data requirements (DD Form 1423) which the contractor is obligated to submit to the government.

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Contract Funds Status Report (CFSR). A contractually required recurring report designed to provide information on contract funding availability, expenditures, projected requirements, and termination liability (DID DI-MGMT-81468).Contract Line Item Number (CLIN). The number used within a contract to identify a specific deliverable item.Contract Master Schedule (CMS). The highest summary level schedule for a contract, depicting overall contract phasing and all major interfaces, contractual milestones, and contract elements (sometimes called Integrated Master Schedule).Contract Schedules. Schedules which are initiated at the direction of the customer or management to reflect program plans for development or production of deliverable items. The highest level schedule is the Contract Master Schedule supported by Intermediate Level Schedules and by lowest level detail schedules.Contract Work Breakdown Structure (CWBS). See part (b) of Work Breakdown Structure definition.Control Account (CA). A management control point at which budgets (resource plans) and actual costs can be accumulated and compared to the earned value, for management control purposes. A control account is a natural measurement point for planning and control since it represents the work assigned to one responsible organizational element on one Contract Work Breakdown Structure (CWBS) element.Control Account Manager (CAM). A manager responsible for task performance of a Control Account and for planning and managing the resources authorized to accomplish such task.Control Account Plan (CAP). A plan of all effort to be performed in a Control Account. The CAP provides a means to identify and display detail subdivisions of the effort into Work Packages, and Planning Packages, each with a definitive statement of work, schedule, and time-phased budget. The CAP is sometimes used to status and display progress towards completion of these tasks and to provide forecasts of variations from original planning. Separate CAPs are used for Level of Effort work (unless actual costs are accumulated separately for work packages).Cost-At-Completion (CAC). Actual direct costs, plus indirect costs allocable to the contract, plus the estimate of costs (direct and indirect) for authorized work

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remaining. The CAC is sometimes referred to as Estimate-at-Completion (EAC) or Latest Revised Estimate (LRE).Cost Element. Typical elements of cost are: direct labor, direct material, other direct costs, and indirect cost (overhead).Cost Incurred. A cost identified through the use of the accrual method of accounting and reporting or otherwise actually paid. Cost of direct labor, direct materials, and direct services identified to and necessary for the performance of a contract, and all properly allocated and allowable indirect costs as shown by the contractor’s books of record. (See Actual Direct Cost and Applied Direct Cost.)Cost Performance Index (CPI). An indicator of the cost efficiency of the work accomplished for the current period(s) or cumulative-to-date as derived by the formula: CPI equals BCWP divided by ACWP, i.e., Earned Value divided by Actual Cost Incurred.Cost Performance Report (CPR). A contractually required recurring report designed to provide information on contract cost performance status, problems, and corrective actions (DID DI-MGMT-81466).Cost Plus Award Fee/Fixed Fee/Incentive Fee. Cost reimbursement contract types where the fee is based upon: (a) the accomplishment of pre-negotiated goals (Award Fee); (b) a negotiated fixed fee amount (Fixed Fee); or (c) a risk sharing ratio within a pre-determined range based upon the contractor’s ability to meet technical, cost, and/or schedule targets (Incentive Fee).Cost Reimbursement Contracts. A category of contracts whose use is based upon payment by the government to a contractor of allowable cost as prescribed by the contract. Normally only the “best efforts” of the contractor are required. The basis for payment negotiated may be: (a) cost (no fee); (b) cost sharing; (c) cost-plus-fixed fee; (d) cost plus award fee; and/or (e) cost-plus incentive fee.Cost/Schedule Control Systems Criteria (C/SCSC). Replaced by the Earned Value Management System (EVMS) Criteria.Cost/Schedule Status Report (C/SSR). A contractually required report containing earned value performance information on smaller contracts. Provides status of progress on the contract.

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Cost-To-Complete (CTC) Forecast. A contractor’s estimate of the cost to complete the remaining tasks on a contract. Synonymous with Estimate to Complete.Cost Variance (CV). A metric for the cost performance on a contractor program. It is the algebraic difference between the earned value (BCWP) and the actual cost incurred (ACWP). Therefore, Cost Variance equals Earned Value minus Actual Cost. A positive value indicates a favorable position and a negative value indicates an unfavorable position.Critical Path. A sequential path of activities in a network schedule which represents the longest duration of a task or a contract. Any slippage of the tasks in the critical path will increase the duration of the task or contract.Critical Subcontractor. A contractor performing a large or complex portion of a contract which requires a flow-down of earned value management and reporting (e.g., CPR or C/SSR) requirements, and the integration, reviews, acceptance and control of subcontractor system and reporting by the prime contractor. Critical subcontractors are designated as a result of customer negotiation or by management or by government direction.Defense Contract Management Command (DCMC), Plant Representative Office (DPRO). Government (DCMC) offices located at contractor facilities or geographic locations throughout the United States. Their primary function is contract administration. (Instead of calling these offices DPROs, DCMC now simply refers to “DCMC (city or plant)”.Defense Contract Audit Agency (DCAA). The organization tasked with monitoring a contractor’s design and implementation of an acceptable accounting system.Definitized. A contract, contract amendment, or contract supplemental agreement is considered definitized when the final contractual documents are unconditionally executed by both parties to the agreement.Direct Cost. Any costs that may be identified specifically with a particular cost objective. That is, the portion of labor, material or other cost incurred or expended to meet contractual specifications for an end product, tool or other related service specifically identifiable to the contractually authorized task. It consists of those

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costs which can be reasonably and consistently related directly and finally to the contract, without distribution through an overhead unit or account.Direct Labor. That portion of labor expended in the actual design, tooling, testing and the physical application of labor (including proofing) to material altering its shape, form, nature, or fulfilling a contractual requirement for service.Discrete Effort. Tasks which have a specific end product or end result, and which through planning: (1) can be specifically defined and assigned a budget for accomplishment; (2) can be scheduled with clearly definable start and completion dates; and (3) contain criteria against which performance can be measured.Discrete Milestone. A milestone which has a definite, scheduled occurrence in time signaling the finish of an activity, such as “release drawing,” “pipe inspection complete,” and/or signaling the start of a new activity. A type of “objective indicator.”Earned Hours. The time in standard or budgeted hours credited to a worker or group of workers as a result of their completion of a given task or group of tasks.Earned Value (EV). The budgeted value of work accomplished. The value of completed work expressed in terms of the budget assigned to that work. It is the sum of budgets for completed work packages and completed portions of open work packages, plus the appropriate portion of the budgets for level of effort and apportioned effort. Also known as Budgeted Cost of Work Performed (BCWP).Earned Value Management (EVM). A management technique for measuring performance (work progress) objectively by determining the budgeted cost for work performed (EV) and comparing it to the actual cost of work performed.Earned Value Management System (EVMS). A management system and related sub-systems implemented to establish a relationship between cost, schedule and technical aspects of a contract or project, measure progress, accumulate actual costs, analyze deviations from plans, forecast completion of contract events, and incorporate changes to the contract in a timely manner. Earned Value Management System (EVMS) Criteria. The set of 32 statements established by DoD 5000.2-R, which define the parameters within which the contractor’s integrated cost/schedule management system must fit.Engineering Change Proposal (ECP). A proposed change, addition, or deletion to the basic contract, initiated by the contractor or customer.

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Engineering Release. A procedure or method for the formal issuance of initial or updated engineering data, instructions and drawings of detail parts, assemblies and components of a new or modified product.Estimate At Completion (EAC). Actual direct costs, plus indirect costs allocable to the contract, plus the estimate of costs (direct and indirect) for authorized work remaining.Estimate To Complete (ETC). That portion of the EAC that addresses total expected costs for all work remaining on the contract.Expenditure. A charge against available funds. It is evidenced by a voucher, claim, or other document approved by competent authority. Expenditure represents the actual payment of funds.Fiscal Year. For the United States government, it is the 12 month period: 1 October through 30 September. For industry, it may be any formally selected annual accounting period including a calendar year.Fixed Price Contracts. A category of contracts based on the establishment of a price to accomplish the required work. Types are: (a) firm fixed price; (b) fixed price with escalation; (c) fixed price redeterminable; and (d) fixed price with incentive provisions.Front Loading. An action by a contractor to provide adequate or generous budget in the near-term budget baseline at the expense of the far-term effort. This practice delays acknowledgment of potential overrun conditions, frequently in the expectation that the contractor can recover through subsequent changes in the contract statement of work. Front loading often results from an inadequate or unrealistic negotiated contract target cost and/or unrealistically optimistic planning of far-term effort.Functional Organization. An organization or group of organizations with a common operational orientation such as Engineering, Manufacturing, (Fabrication, Assembly), Tooling, Quality Control, Material, Finance, Contracts, etc. See Organization Breakdown Structure (OBS).Functional Manager. A line manager or supervisor of a functional organization.Funding Profile. A display of program funding requirements normally presented on a cumulative basis by months or quarters. Plotting of the requirements is displayed as a “stair step” chart.

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Gantt Chart. A horizontal bar chart. A graphic representation used as an aid to effective scheduling and control, showing graphically on a time scale when certain events are to take place or where deadlines occur. Status is displayed by either filling the bar or adding a filled-in status bar below it.General & Administrative Expense (G&A). Expense incurred in the overall Corporate and Division offices, i.e., their cost of staff services such as, finance, legal, contract administration, sales, marketing and independent research and development (IR&D) effort. These expenses are allocated to organizational elements on the basis of total direct and indirect cost.Indirect Budget. The target value established for costs to be incurred by persons and/or organizational elements for tasks or expenses which do not have a direct relationship to the design, testing and/or production of the end product or contractually specified task.Indirect Cost. Costs which, because of their incurrence for common or joint objectives, are not readily subject to treatment as direct costs. This term is further defined in FAR.Indirect Cost Pools. A grouping of indirect costs identified with two or more cost objectives but not separately identified with any final cost objective. Such separate pools are normally established for indirect costs associated with Engineering, Manufacturing, Procurement, and/or Material, etc.Integrated Baseline Review (IBR). A joint review by government and contractor program managers and their technical staff personnel, following contract award, to confirm that the contractor’s performance measurement baseline covers the entire scope of work, that the work is realistically and accurately scheduled, that the proper amount and mix of resources have been assigned to tasks, and that proper objective indicators have been selected for measurement of task accomplishment. Integrated Surveillance Team (IST). Collectively the representatives of those organizations working together on the acquisition and administration of a contract or contracts. This could include the PMO, DCMC, DCAA, the procuring activity integrated support components and the contractor.Inter Divisional Work Authorization (IDWA). The document or procedure for “subcontracting” work between divisions of a company. Cost for authorized work by the performing division is transferred to the prime contracting division without

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G&A overhead and fee to preclude double charging on the prime contract. It is sometimes referred to as an Inter Group Work Authorization (IGWA) or as Inter Organizational Transfer (IOT).Interim Budget. Furnished to departments on an interim basis for contractually authorized tasks for which a firm bid or estimate may not yet have been completed and negotiated. It is also used for task transfers between departments or elements of cost pending formal budget transfer. Interim budget is discontinued after budget values are formalized.Internal Replanning. Replanning actions performed by the contractor for remaining effort within the recognized total allocated budget.Joint Surveillance. Continual observation, by a team of Government and contractor representatives, of a contractor’s earned value management system to monitor its compliance with the DoD EVMS Criteria and its proper use as a management tool. Level Of Effort (LOE). Effort of a general or supportive nature which does not produce definite end products.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 set of tasks. It is not a part of the Performance Measurement Baseline.Master Planning Schedule (MPS). The highest summary level schedule for a contract depicting overall contract phasing and all major interfaces, contractual milestones, and program elements. (See Contract Master Schedule.)Material. Property which may be incorporated into or attached to an end item to be delivered under a contract, or which may be consumed or expended in the performance of a contract. It includes, but is not limited to, raw and processed material, parts, components, assemblies, fuels and lubricants, and small tools and supplies.Milestones. Events of particular significance. Finitely defined events that constitute the start or completion of a task or occurrence of an objective criterion for accomplishment. Milestones should be discretely identifiable; the passage of time alone is not sufficient to constitute a milestone. However, milestones should

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be associated with schedule data to document when the milestone is to occur. (See Objective Indicator.)Negotiated Contract Cost (NCC). The estimated cost negotiated in a cost-plus-fixed-fee contract or the negotiated contract target cost in either a fixed-price incentive contract or a cost-plus-incentive-fee (or award fee) contract.Network Schedule. A schedule format in which the activities and milestones are represented along with the interdependencies between activities. It expresses the logic as to how the program will be accomplished. Network schedules are the basis for critical path analysis, a method for identification and assessment of schedule priorities and impacts.Non-Recurring Cost. Expenditures for specific tasks that are expected to occur only once, or very infrequently, on a given program. Examples are such costs as those for preliminary design effort, qualification testing, initial tooling, testing, planning, etc.Objective Indicator. A finite event or accomplishment which can be used to definitively establish the degree of completion of a specific task.Organizational Breakdown Structure (OBS). A family-tree breakdown of the contractor’s organization showing the organizational elements involved in performing the contract work.Other Direct Cost (ODC). A group of accounting elements, other than direct labor and material, which can be isolated to specific tasks. ODC includes such items as travel, computer time, aviation fuel, etc.Overhead. (See Indirect Costs.)Overrun. Costs incurred in excess of the allocated budget for a task, group of tasks, or a contract. For work in process, the overrun is the cost incurred in excess of earned value.Over Target Baseline. A performance measurement baseline where the total allocated budget is in excess of the contract value (contract budget base). It may involve replanning in-process work, and/or adjusting variances.Performance Measurement Baseline (PMB). The time-phased budget plan against which contract performance is measured. It is formed by the budgets assigned to scheduled control account and the applicable indirect budgets. For future effort, not planned to the control account level, the performance

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measurement baseline also includes budgets assigned to higher level CWBS elements and undistributed budgets. It equals the total allocated budget less management reserve.Performing Organization. A defined unit within the contractor’s organization structure, which applies resources to perform the work.Planned Value. Same as Budgeted Cost for Work Scheduled. Planning Package (PP). A logical aggregation of work within a control account, normally the far-term effort, that can be identified and budgeted in early baseline planning, but is not yet defined into work packages.Post Acceptance Review. A government review performed on a specific element or elements of a contractor’s EVMS system that display(s) a lack of discipline or no longer meet(s) the intent of the EVMS Criteria.Priced Bill-Of-Material System. An automated requirement generation system for material and parts, which lists all items, quantities, sources, descriptions and prices in an indentured listing, which relates a part of component to a higher or using assembly. Such a system may be used for pricing material costs for proposals.Price Variance (PV). The portion of a material cost variance due to price change. The difference between the planned unit cost of materials and the actual unit cost of material. PV is derived by subtracting the planned unit price times the quantity used from the actual unit price times the quantity used.Problem Analysis Report (PAR). A report made by the responsible manager to explain a significant cost or schedule variance, its probable impact on the program, and the corrective action(s) taken or required to resolve the problem (Same as Variance Analysis Report).Procuring Activity. The subordinate command in which the Procuring Contracting Office (PCO) is located. It may include the Program Office and other related functional support activities.Program/Project Integrator (PI). BMDO staff assigned responsibility for integrating all tasks within a project. PIs serve as the points-of-contact for information and activities involved in BMDO technology, NMD planning, or a TMD acquisition project.

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Program (or Project or Product) Manager (PM). The person assigned the prime responsibility for overall management of a program (or project, or product).Program Master Schedule. The highest summary level schedule for a major program depicting overall program phasing and interfaces, contractual milestones, and major events which support specific program objectives.Program Work Breakdown Structure (PWBS). See part (a) of Work Breakdown Structure definition.Progress Payments. Payments made to a contractor or subcontractor during the life of a fixed price type (firm fixed price and fixed price incentive) contract on the basis of a percentage of total incurred cost.Purchase Order. An order issued by a functional organization (usually material or purchasing) to purchase parts, supplies or services from an outside source.Purchase Request (PR). A contractor’s authorizing procurement document that results in the issuance of a Purchase Order. Also referred to as a Purchase Order Request (POR).Purchased Labor. A type of labor used on a contract basis to relieve an engineering or shop overload and/or to take advantage of special processing or technical skills or of special facilities possessed by a supplier.Purchased Parts. Detail parts or small subassemblies that are purchased from or subcontracted to an outside source. Such parts or subassemblies are purchased to relieve a shop overload or because they are not within the prime contractor’s normal capability to make.Quantity Variance (QV). (See Usage Variance).Risk Analysis. The system that provides a continuous analysis of identified risks with respect to their impact on program cost, schedule, and technical performance.Realization Factor. The ratio of actual performance time to standard performance time, usually expressed as a decimal number.Recurring Costs. Expenditures against specific tasks that occur on a repetitive basis. Examples are costs of sustaining engineering support, repeated fabrication or assembly of parts or products, tool maintenance, etc.Replanning. A change in the original plan for accomplishing authorized contractual requirements, involving the redistribution of budget for remaining work.

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Traceability is required to previous baselines, and funding requirements need to be considered in any replanning effort. There are two types of replanning effort:

(a) Internal Replanning. Replanning actions performed by the contractor for remaining effort within the recognized contract budget. It is caused by a contractor’s need to accommodate cost, schedule, or technical problems which 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.

(b) Contract Change Replanning. A change necessitated by government direction which may be in the form of either a definitized or a no cost contract change order that calls for a change in the original plan. It most often results from a change in the contract affecting cost, schedule, technical parameter or a combination thereof Reprogramming. Replanning of the effort remaining in the contract, resulting in a new budget allocation which exceeds the contract budget base.Responsible Organization. A defined unit within the contractor’s organization structure which is assigned responsibility for accomplishing specific tasks. (See Performing Organization for comparison.)Responsibility Assignment Matrix (RAM). A depiction of the relationship between the Contract Work Breakdown Structure elements and the organizations assigned the responsibility for ensuring their accomplishment. A two axis matrix (sometimes a chart is used) with CWBS elements displayed on one axis and the Organization Breakdown Structure (OBS) elements on the other axis with indicators at appropriate intersections to identify planned Control Accounts. The boxes of the matrix usually show the Control Account dollars or hours. Rolling Wave Planning. The progressive refinement of work definition as time goes on by continuous subdivision of downstream activities into detailed tasks.Rubber Baselining. Actions by a contractor to advance far-term budgets into the current or early periods to mask current cost problems. The action involves moving budget without a corresponding amount of task, to cover current cost difficulties. It is an indication of likely overrun condition. Schedule. A plan which defines when specified work must be started, worked on, and finished, to accomplish program objectives on time.

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Schedule Performance Index (SPI). An indicator of the schedule efficiency at which work has been performed to date. SPI equals BCWP divided by BCWS, i.e., Earned Value divided by Planned (Budgeted) Value.Schedule Variance (SV). A metric for the schedule performance on a program. The algebraic difference between the earned value (BCWP) and the budget plan (BCWS). (Schedule Variance equals Earned Value minus Budget.) A positive value indicates a favorable position while a negative value is unfavorable. Equivalent to “Accomplishment Variance.”Significant Variance. Those differences between planned and actual performance which require further review, analysis, and/or action. Statement Of Work (SOW). The document that defines the work scope requirements on a program or contract.Subcontract. A contract for services, data, parts, components, assemblies, other hardware, or software which a company commits to perform for or provide to the prime contractor. A subcontract normally involves the design or production of a component by the supplier to the prime contractor’s specifications. “See Purchased Parts.”Summary Level Planning Package (SLPP). An aggregation of work for far-term efforts, not able to be identified at the control account level, but which can be assigned to higher level WBS elements (and is therefore not “undistributed budget”).Surveillance. A term used in earned value management to mean the monitoring of continued proper use of a management control system which had been previously accepted as meeting the requirements of the EVMS Criteria.Surveillance Plan. A document which establishes the procedures for accomplishing earned value management system surveillance. Usually prepared as an attachment or supplement to a Memorandum of Agreement between a PM and an ACO.Task. A piece or portion of discrete, apportioned, or level-of-effort work. Also called an activity; something that takes place over a period of time and generally consumes resources.

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Task Authorization. A document used in some contractor systems in conjunction with a Resource Authorization Document (RAD) to provide detailed work instructions and other technical information.Thresholds. Boundaries or limits (monetary, time, or other values) which, if breached, result in some type of management review and action.To-Complete Performance Index (TCPI). An indicator of the future efficiency at which the remaining work must be performed to arrive at the EAC. TCPI equals (BAC minus BCWPcum)/(EAC minus ACWPcum) i.e., Budget for Remaining Work divided by Estimated Cost of Remaining Work.Total Allocated Budget (TAB). The sum of all budgets allocated to a contract. Total allocated budget consists of the Performance Measurement Baseline and all Management Reserve. The total allocated budget should reconcile directly to the contract budget base. Any differences will be documented as to quantity and cause.Touch Labor. Production labor which can be reasonably and consistently related to a unit of work being manufactured, processed or tested. Also referred to as “Hands On” labor.Undistributed Budget (UB). Budget applicable to contract effort which has not yet been identified to CWBS elements at or below the lowest level of reporting to the government.Unit Cost. Total labor, material, and overhead cost for one unit of product, i.e., one part, one end item etc.Unpriced Changes. Authorized contract changes which are not yet priced. Usage. The number of units or dollar value of material or items used over a period of time.Usage Rate. A percentage, based on historical records, applied to the Priced Bill of Material to accurately budget for scrap, breakage, lost in shop, rework design, error and surplus material consumed on a project or contract.Usage Variance (UV). The portion of material cost variance due to a change in quantity of material used. The difference between planned quantity of materials and the actual quantity used, expressed in dollars. UV is derived by subtracting from planned quantity times planned unit cost, the actual quantity times planned unit cost. (Same as Quantity Variance.)

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Variance Analysis Report (VAR). An internal document, within an earned value management system, for the analysis and reporting of variances which breech the established thresholds. It requires the reason or cause of the variance; the impact on cost or schedule; and the corrective action required, or accomplished, on significant variances.Variance At Completion (VAC). The difference between the total budget assigned to a contract, WBS element, organizational entity or control account and the estimate at completion. It represents the amount of expected overrun or underrun. (VAC equals BAC minus EAC, i.e., total allocated budget minus the related estimated final cost).Variance Threshold. Internal and external tolerances (or thresholds), which are established by management direction, or negotiation with the customer and which, when exceeded, require investigation, analysis, reporting and corrective action.Work Breakdown Structure (WBS). A product-oriented family tree composed of hardware, software, services, and other work tasks which organizes, displays, and defines the product to be developed and/or produced and relates the elements of the work to be accomplished to each other and the end product(s).

(a) Program Work Breakdown Structure (PWBS). The work breakdown structure (WBS) a specific defense materiel item, is related to the contractual effort, and includes all applicable elements consisting of at least the first three levels which are then extended by the DoD component (program manager) and or contractor(s).

(b) Contract Work Breakdown Structure (CWBS). The complete WBS for a contract. The CWBS includes the work breakdown structure established on the contract for reporting purposes and its discretionary extension to the lower levels by the contractor in accordance with the contract statement of work. It includes all elements for the hardware, software, data, and services which are the responsibility of the contractor.Work Breakdown Structure Dictionary. A document which describes the tasks associated with each WBS element, in product-oriented terms, and relates each element to the respective, progressively higher levels of the structure as well as to the contract Statement of Work. May or may not be a contractual requirement.

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Work Breakdown Structure Element. A single discrete portion of a WBS. May be an identifiable product, a set of data, or a service..Work Package (WP). Detailed jobs, or material items, identified by the contractor for accomplishing work required to complete the contract. A work package has the following characteristics:

(a) It represents units of work at levels where work is performed.(b) It is clearly distinguished from all other work packages.(c) It is assigned to a single organizational element.(d) It has scheduled start and completion dates and, as applicable, interim

milestones, which are representative of physical accomplishment.(e) It has a budget or assigned value expressed in terms of dollars, man-

hours, or other measurable units.(f) Its duration is limited to a relatively short span of time or it is subdivided

by discrete value milestones to facilitate the objective measurement of work performed or it is level-of-effort.

(g) It is integrated with detailed engineering, manufacturing, or other schedules.Work Package Budgets. Resources which are formally assigned by the contractor to accomplish a work package, expressed in dollars, hours, standards or other definitive units

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APPENDIX BACRONYMS

ACWP Actual Cost of Work PerformedACO Administrative Contracting Office(r)BAC Budget at CompletionBCWP Budgeted Cost for Work PerformedBCWS Budgeted Cost for Work ScheduledBMDO Ballistic Missile Defense OrganizationBMDO/PO BMDO Deputy for Program OperationsBOM Bill of MaterialCA Control AccountCAC Cost at Completion (same as EAC)CAM Control Account ManagerCAP Control Account PlanCBB Contract Budget BaseCDRL Contract Data Requirements ListCFSR Contract Funds Status ReportCI Configuration ItemCLIN Contract Line Item NumberCMS Contract Master ScheduleCPAF / FF / IF Cost Plus Award Fee / Fixed Fee / Incentive FeeCPI Cost Performance IndexCPR Cost Performance ReportC/SCSC Cost/Schedule Control System Criteria (now EVMS Criteria)C/SSR Cost/Schedule Status ReportCTC Cost to Complete Forecast (same as ETC)CV Cost VarianceCWBS Contract Work Breakdown StructureDCAA Defense Contract Audit AgencyDCMC Defense Contract Management CommandDPRO Defense Plant Representative Office (no longer used by

DCMC)EA Executing Agent EAC Estimate at Completion (same as CAC)ECP Engineering Change ProposalETC Estimate to Complete (same as CTC)EV Earned ValueEVMS Earned Value Management SystemFFP Firm Fixed PriceFPI Fixed Price IncentiveFY Fiscal YearG&A General and Administrative ExpenseGANTT Bar Chart Schedule

IBR Integrated Baseline ReviewIDWA Inter Divisional Work Authorization

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IST Integrated Surveillance TeamLOE Level of EffortLRE Latest Revised Estimate (at Completion)M&IE Meals and Incidental ExpensesMCS Management Control System (see EVMS which replaces MCS)MPS Master Planning ScheduleMR Management ReserveNCC Negotiated Contract CostNTE Not to ExceedOBS Organizational Breakdown StructureODC Other Direct CostPAR Problem Analysis ReportPCO Procuring Contracting Office(r) PI/PM Program Integrator/Program ManagerPM Program ManagerPMB Program Measurement BaselinePMO Program Management OfficePOC Point of ContactPV Price VariancesPWBS Program Work Breakdown StructureQV Quality VarianceRAM Responsibility Assignment MatrixRFP Request for ProposalSAR Subsequent Application ReviewSLIN Subcontract Line Item NumberSOW Statement of WorkSPEC SpecificationSPI Schedule Performance IndexSV Schedule VarianceTAB Total Allocated BudgetTCPI To Complete Performance IndexUB Undistributed BudgetUV Usage VarianceVAC Variance at CompletionVAR Variance Analysis ReportWAD Work Authorization DocumentWBS Work Breakdown StructureWP Work Package

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