Suggested Searches

EVM Glossary

Term

Definition

Actual Cost of Work Performed (ACWP).

The costs actually incurred and recorded in accomplishing the work performed within a given time period. Actual costs include the direct cost plus the related indirect cost such as overhead, general and administrative, etc. allocated to the activity. ACWP reflects the applied direct costs and may be for a specific period or cumulative to date. (Also known as Actual Cost).

Administrative Contracting Officer (ACO).

The individual within the Defense Contract Management Agency (DCMA) Contract Management Office (CMO) responsible for ensuring that the functions described in NFS 1842.302 are completed by the contract in accordance with the terms and conditions of the contract.

Advance Agreement (AA).

The agreement between the Administrative Contracting Officer (ACO) and the contractor that documents the contractor’s commitment to use the accepted Earned Value Management System (EVMS) as an integral management process on current and future contracts and maintain the EVMS compliant system through an internal surveillance program.

Agency Baseline Commitment (ABC).

An Agency Baseline Commitment is the highest-level commitment for NASA and is established at the beginning of the Implementation Phase of a program or project’s life cycle, Key Decision Point C (KDP C). It includes the program’s approved funding budgetary target. This target is used by OMB and Congress as the total appropriation target value for the funding request and some additional Unallocated Future Expense (UFE), and/or schedule or margin/reserve to ensure a reasonable amount of funding margin/reserve is available for unforeseen problems beyond the program’s control.

Authorized Unpriced Work (AUW)

Any effort for which contractually definitized costs have not been agreed upon, but for which written authorization has been received.

Baseline.

See Performance Measurement Baseline (PMB).

Budget at Completion (BAC).

The sum of all budgets allocated to the project or a given Control Account. 

Budgeted Cost for Work Performed (BCWP).

The sum of budgets for completed work packages and partially completed work packages, plus the appropriate portion of the budgets for level of effort and apportioned effort work packages. (Also known as Earned Value).

Budgeted Cost for Work Scheduled (BCWS).

The sum of the budgets for all work packages, planning packages, etc., scheduled to be accomplished (including in-process work packages), plus the amount of level of effort and apportioned effort scheduled to be accomplished within a given time period. This is the value of planned work. (Also known as Planned Value).

Budgeted Cost for Work Scheduled (Planned Value) BCWS (PV)

The time-phased budget plan for work currently scheduled — “What you plan to do, and when” .

Change Control Board (CCB).

The CCB is a committee that makes decisions on whether proposed changes to project baselines should be accepted.

Change Request

A form used to document and justify a proposed change to either the EAC or the Performance Measurement Baseline (PMB).

Compliance.

The characteristic of an EVMS that ensures the intent of the EVMS Guidelines is embodied in the integrated processes and sub processes of a organization’s methods of operation that generate accurate and auditable program performance data.

Contract Budget Base (CBB).

The sum of the negotiated contract cost plus the estimated cost of authorized unpriced work. It includes the PMB and MR. Customer approval is generally required to change it. (See also Project Budget Base).

Contract Performance Report (CPR).

A contract data requirement when EVM is required. This report consists of five formats containing data for measuring contractors’ cost and schedule performance on Government acquisition contracts: Format 1 provides data to measure cost and schedule performance by product-oriented WBS elements, the hardware, software, and services the Government is buying. Format 2 provides the same data by the contractor’s organization (functional or Integrated Product Team (IPT) structure).  Format 3 provides the budget baseline plan against which performance is measured.  Format 4 provides staffing forecasts for correlation with the budget plan and cost estimates.  Format 5 is a narrative report used to explain significant cost and schedule variances and other identified contract problems and topics. (See Integrated Program Management Report (IPMR)

Contract Work Breakdown Structure (CWBS).

A work breakdown structure of the products or services to be furnished under contract. It is comprised of selected Project WBS elements specified in the contractual document and the contractor’s lower level extensions of those elements.

Contract.

A mutually binding legal relationship obligating the seller to furnish the supplies or services (including construction) and the buyer to pay for them. It includes all types of commitments that obligate the Government to an expenditure of appropriated funds and that, except as otherwise authorized, are in writing. In addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications. Contracts do not include grants and cooperative agreements.

Control Account

An identified intersection of the Work Breakdown Structure (WBS) and Organizational Breakdown Structure (OBS) at which responsibility for work is assigned to one organizational unit and actual direct labor, material, and other direct costs (ODC) are compared with the planned budget and the earned value for management control.

Control Account Manager.

See Project Control Account Manager (P-CAM).

Control Account Plan (CAP).

A format upon which a control account plan is displayed. A CAP typically displays the control account scope and budget in time-phased work packages and planning packages, cost element visibility, PMTs for each work package, responsible performing organizations and at least one charge number.

Control Account.

A management control point at which budgets (resource plans) and actual costs are accumulated and compared to earned value for management control purposes. A control account is a natural management point for planning and control since it represents the work assigned to one responsible organizational element (or integrated product team) for a single WBS element.

Corrective Action Plan (CAP).

Documents action(s) required to resolve deficiencies.

Corrective Action Request (CAR).

Documents deficiencies that require corrective action. 

Cost Performance Index (CPI)

A measure of cost efficiency. It compares BCWP to the actual cost to perform that work (CPI = BCWP / ACWP). An index of 1.0 means that we are spending exactly what we planned to spend to accomplish the work performed. CPI > 1.0 means we are under running costs. CPI < 1.0 means that we are over running costs.

Cost Variance (CV).

A metric for the cost performance derived from earned value data. It is the algebraic difference between earned value and actual cost (CV = BCWP – ACWP). A positive value indicates a favorable condition and a negative value indicates an unfavorable condition. It may be expressed as a value for a specific period of time or cumulative to date.

Critical Path Method (CPM)

Critical path methodology entails the development of a logic network based schedule that enables the calculation of schedule slack (or float) for all activities and milestones contained in the Integrated Master Schedule (IMS).

Data Requirements Description (DRD).

The document that describes the specific data required for supplier/contract management and reporting.

Defense Contract Audit Agency (DCAA):

The Defense Department organization tasked with monitoring a contractor’s design and implementation of an acceptable accounting system.

Direct Costs.

The expenditures for labor, material, and other direct costs that reasonably can be related directly to performance of a unit of work and which are charged directly and finally to the project, without distribution to an overhead or burden unit.

Discrete Effort

Tasks that are related to the completion of specific end products or services and can be directly planned and measured.

Distributed Budget

Budget that is assigned or allocated to CAs, Work Packages, and Planning Packages.

Earned Value (EV)

The value of the work that has been performed (also BCWP).

Earned Value Management (EVM).

A project management apporoach for measuring and assessing project performance through the integration of technical scope with schedule and cost objectives during the execution of the project. EVM provides quantification of technical progress with objective performance measurement techniques, enabling management to gain insight into project status and project completion costs and schedules. Two essential characteristics of successful EVM are EVM system data integrity and carefully targeted monthly EVM data analyses (e.g., identifcation of risky WBS elements).

Earned Value Management Focal Point (EVM FP).

The EVM subject matter expert at each NASA Center/organization that serves as the point of contact for coordination and exchange of information on EVM. The EVM FP is responsible for effective policy implementation within their component, ensuring consistency with NASA policy and the provisions of this guide.

Earned Value Management Focal Point (EVMFP).

The EVM subject matter expert at each NASA Center/organization that serves as the point of contact for coordination and exchange of information on EVM. The EVMFP is responsible for effective policy implementation within their component, ensuring consistency with NASA policy and the provisions of this guide.

Earned Value Management System (EVMS) Guidelines.

The set of guidelines, established by EIA-748 that define the requirements the project/contractor must meet.

Earned Value Management System (EVMS).

The integrated set of policies, processes, systems and practices that meet an organization’s implementation of EIA-748.  This integrated management system and its related subsystems allow for planning all work scope to completion; assignment of authority and responsibility at the work performance level; integration of the cost, schedule, and technical aspects of the work into a detailed baseline plan; objective measurement of progress (earned value) at the work performance level; accumulation and assignment of actual costs; analysis of variances from plans; summarization and reporting of performance data to higher levels of management for action; forecast of achievement of milestones and completion of events; forecast of final costs; and disciplined baseline maintenance and incorporation of baseline revisions in a timely manner.

Earned Value Management Working Group (EVMWG).

A group consisting of the EVM Subject Matter Experts from each NASA Center and other subject matter experts to facilitate Agency-wide communication, consistency, and lessons learned related to implementing and using EVM.

Earned Value Technique (EVT).

See Performance Measurement Technique (PMT).

Electronic Industries Alliance (EIA) -748.

The Institute that oversees the creation, promulgation and use of thousands of norms and guidelines that directly impact businesses in nearly every sector. This organization is also actively engaged in accrediting programs that assess conformance to standards—including globally-recognized cross-sector programs such as the ISO 9000 (quality) and ISO 14000 (environmental) management systems. The Earned Value Management System guidelines have been published as an EIA standard. The guidelines defines the requirements the contractor’s EVM system should meet.

Electronic Industries Alliance (EIA)-748, Earned Value Management Systems Standard.

The set of 32 guidelines that define the requirements an organization’s EVM system should meet.

Element of Cost

Direct costs can be categorized to general types of resources that are represented within the direct cost value (e.g., labor, material, and ODC).

End Item

A final combination of end products components, parts, or materials which is ready for its intended use; an item of software or documentation that is deliverable to a user or customer.

Estimate at Completion (EAC).

A value (expressed in dollars and/or hours) developed to represent a realistic projection of the final cost of a task (or group of tasks) when completed. EAC is the sum of direct and indirect costs to date, plus the estimate of costs for all authorized remaining work. EAC = Inception to date ACWP + ETC

Estimate to Complete (ETC)

A value (expressed in dollars and/or hours) developed to represent a realistic projection of the “to go” cost of the unaccomplished work to complete a task.

Formal Reprogramming (or Reprogramming).

A comprehensive replanning of the remaining PMB that results in an Over-Target Baseline (OTB), an Over-Target Schedule (OTS) or both. This type of replan is for performance measurement purposes only and requires prior coordination and approval of the Customer.

Independent Estimate at Completion (IEAC).

The IEAC is a forecast of most likely total project costs based on assessment of historical project performance.

Indirect Costs

The cost for common or joint objectives that cannot be identified specifically with a particular program or activity.  Indirect Costs consist of the cost of contracted services only and should include no civil service labor or travel costs.  Also referred to as overhead cost or burden.

Integrated Baseline Review (IBR).

A risk-based review conducted by Program/Project Management to ensure mutual understanding between the customer and supplier of the risks inherent in the supplier’s performance measurement baseline (PMB) and to ensure the PMB is realistic for accomplishing all the authorized work within the authorized schedule and budget.

Integrated Master Schedule (IMS).

An integrated schedule developed by logically networking all detailed program/project activities. The highest level schedule is the Master Schedule supported by Intermediate Level Schedules and by lowest level detail schedules.  See IPMR Format 6.

Integrated Program Management Report (IPMR).

Integrated Program Management Report. The standard report format to comminucate program/project monthly cost/schedule performance and status between a contractor and the Government. The IPMR consists of seven report formats that provide program/project managers information to: integrate cost and schedule performance data with technical performance measures, identify the magnitude and impact of actual and potential problem areas causing significant cost and schedule variances, forecast schedule completions, and provide valid, timely program/project status information to higher management for effective decision making.  The formats consist of: Format 1- provides data to measure cost and schedule performance by product-oriented WBS elements, the hardware, software, and services the Government is buying; Format 2- provides the same data by the contractor’s organization (functional or Integrated Product Team (IPT) structure); Format 3- provides the budget baseline plan against which performance is measured;  Format 4- provides staffing forecasts for correlation with the budget plan and cost estimates; Format 5- is a narrative report used to explain significant cost and schedule variances and other identified contract problems and topics;  Format 6- Integrated Master Schedule (IMS); Format 7- time-phased historical and forecast cost submission. This is a contract data requirement when EVM is required.

Level of Effort (LOE)

Work that does not result in a final deliverable (i.e., liaison, coordination, management, or other support activities), and which cannot be directly associated with a definable end product. It is measured “automatically by the passage of time” in terms of resources planned within a given fiscal period.  With LOE effort, BCWP is always equal to BCWS.

Management Reserve (MR).

An amount of the total allocated budget withheld for management control purposes rather than designated for the accomplishment of a specific task or a set of tasks. It is not part of the Performance Measurement Baseline.

Memorandum of Understanding (MOU).

The MOU is a bilateral or multilateral document describing the agreements between two parties.

Organizational Breakdown Structure (OBS).

The project hierarchy of line and functional organizations as applied to the specific project.

Other Direct Cost (ODC)

These costs (or charges) represent resources not classified as labor or material. They include travel, services, computer charges, etc.

Over Target Baseline (OTB)

A new baseline for management when the original objectives cannot be met and new goals are needed for management purposes.  The overrun, in addition to remaining work, is incorporated to the Contract Budget Base (CBB) which is formally incorporated into the Performance Measurement Baseline for management purposes.  Over Target Baseline is not synonymous with over target budget.  This over target budget represents the existing overrun and estimated remaining work that becomes new performance measurement budget in the TAB. The difference between the Total Allocated Budget and Contract Budget Base is the amount of the overrun.

Over Target Schedule (OTS).

An established schedule that extends beyond the contractual milestones or delivery dates.

Over-Target Schedule (OTS).

A replanned schedule baseline that extends beyond the contract milestones or delivery dates.  An OTS is usually accompanied by an increase in budgets resulting in a corresponding Over Target Baseline (OTB).

Performance Measurement Baseline (PMB).

The time-phased budget plan for accomplishing all authorized work scope in a project’s life cycle, which includes both NASA internal costs and supplier costs. The PMB is used to measure project performance using earned value mangement, if required, or other performance measurement techniques if EVM is not required. It is formed by the budgets assigned to scheduled control accounts and the applicable indirect budgets. For future effort, not planned to the control account level, the PMB also includes budgets assigned to higher level WBS elements and undistributed budgets. The PMB does not include UFE, or management reserve (MR) for contractors.

Performance Measurement Technique (PMT).

A specific technique (e.g., Milestone Method, Percent Complete, 50/50, 0/100, Units Complete, Apportioned Effort, LOE, etc.) selected to represent the measurement of work scope progress and accomplishment in a work package.

Performing Organization

A defined organizational unit in the OBS which applies the resources to accomplish the work.

Planning Package (PP)

A logical aggregate of far-term effort within a CA that can be identified and budgeted, but not yet defined into discrete Work Packages.

Price Variance (PV).

For material analysis, PV = (Budgeted Price – Actual Price) x (Actual Quantity). Quantity breakouts are most useful on programs procuring multiple items of the same part number, typical for production type contracts.

Project Budget Base (PBB).

The negotiated value of the project plus the estimated cost of authorized, unpriced work. It is the Government project equivalent to the Contract Budget Base. It includes the PMB and MR. Customer approval is generally required to change it.

Project Control Account Manager (P-CAM).

A NASA manager responsible for task performance of a Control Account within the PMB and for planning and managing the resources authorized to accomplish such task.

Rebaselining

The process that results in a change to a project’s Agency Baseline Commitment.

Reciprocity.

A reciprocal arrangement or relationship which allows two or more groups to agree to the acceptance of another organizations’ EVMS, thereby reducing the burden of multiple reviews by individual groups.

Replanning

The process by which a program or project updates or modifies its plans. This applies to a change in the original authorized PBB or CBB planning for accomplishing formally authorized requirements, typically involving the redistribution of budget for remaining work. In accordance with the Earned Value Management Systems, EIA-748 Current Release (EIA-748 EVMS Standard) , traceability is required to previous baselines, and funding requirements need to be considered in any replanning effort. There are two types of replanning effort:

Replanning.

A realignment of schedule based upon changes in execution or reallocation of budget for remaining effort within the existing cost and schedule constraints of the contract.  In this case, the Total Allocated Budget does not exceed the Contract Budget Base, nor is the schedule adjusted to extend beyond the contractually defined milestones.

Replanning.

The process by which a program or project updates or modifies its plans. This applies to a change in the original authorized PBB or CBB planning for accomplishing formally authorized requirements, typically involving the redistribution of budget for remaining work. In accordance with the ANSI/EIA-748, traceability is required to previous baselines, and funding requirements need to be considered in any replanning effort. There are two types of replanning effort: Internal Replanning. Replanning actions performed by the supplier for remaining effort within the authorized PBB or CBB. It is caused by a supplier’s need to accommodate cost, schedule, or technical problems that may have made the original plan unrealistic. Internal replanning is restricted to remaining effort and if significant, the customer must be advised of the action. Authorized Change (or External) Replanning. A change necessitated by government/customer direction which may be in the form of either a definitized or a no cost contract change order for contracts or formal change to the Project Plan for in-house Projects that calls for a change in the previously authorized plan. It most often results from a change in the authorized requirement affecting cost, schedule, technical parameters or a combination thereof.

Reprogramming (or Formal Reprogramming)

A comprehensive replanning of the remaining PMB that results in an Over-Target Baseline (OTB), an Over-Target Schedule (OTS) or both. This type of replan is for performance measurement purposes only and requires prior coordination and approval of the Customer.

Request for Proposal (RFP)

A solicitation used in negotiated acquisition to communicate government requirements to prospective contractors and solicit proposals.

Responsibility Assignment Matrix (RAM).

A matrix showing the relationship between the WBS elements and the organizations assigned responsibility for ensuring their accomplishment. The RAM normally depicts the assignment of each control account to a single manager, along with the assigned budget.  When resource values are applied to these relationships, it may be referred dto as a dollarized RAM.

Responsible Organization

A defined organizational unit in the OBS which is assigned the responsibility to accomplish specific tasks.

Schedule Performance Index (SPI).

A measure of schedule efficiency. It compares the BCWP to the work scheduled (SPI = BCWP / BCWS). An index of 1.0 means the work is being performed right to the schedule. SPI > 1.0 means that the work is ahead of schedule. SPI < 1.0 means that the work is behind schedule.

Schedule Variance (SV).

A metric for the schedule performance derived from earned value data. It is the algebraic difference between earned value and the planned value (SV = BCWP – BCWS). A positive value is a favorable condition while a negative value is unfavorable. It may be expressed for a specific period of time or cumulative to date.

Statement of Work (SOW).

 A document that contains a narrative description of the work scope requirements for a project or contract.

Suppliers.

Each project office is a customer having a unique, multi-tiered hierarchy of suppliers to provide it products and services. A supplier may be a contractor, grantee, another NASA Center, university, international partner, or other government agency. Each project supplier is also a customer if it has authorized work to a supplier lower in the hierarchy.

To Complete Performance Index (TCPI)

The future cost efficiency needed to accomplish the remaining work within a financial goal such as the Budget at Completion (BAC) or the Estimate at Completion (EAC). It compares the budget for remaining work with the remaining cost or the estimated remaining cost to complete the work. TCPIBAC=(BAC – BCWPcum) / (BAC – ACWPcum). Or TCPIEAC=(BAC – BCWPcum) / (EAC – ACWPcum). Compare the CPI to determine if the BAC or the EAC is realistic or not.

Total Allocated Budget (TAB).

The sum of all budgets allocated to a project/contract. Total allocated budget consists of the PMB and all MR. The TAB should reconcile directly to the PBB/CBB. If the TAB is greater than the CBB/PBB, the difference is attributable to an over target baseline and must be documented.

Undistributed Budget (UB).

Budget associated with specific work scope or authorized changes that have not been distributed to a control account or summary level planning package.

Usage Variance (UV).

For material analysis, UV = (Budget Quantity – Actual Quantity)) x (Budgeted Price). Quantity breakouts most useful on programs procuring multiple items of the same part number, typical for production type contracts.

Variance Analysis Report (VAR)

The internal report completed by the P-CAM and submitted through the Subproject/Element Manager to the Project Manager for those CAs that have variances in excess of the pre-established thresholds.

Variance at Completion (VAC).

The difference between the budget at completion and the estimate at completion (VAC = BAC – EAC). It may be calculated at any level from the Control Account up to the total project/contract. It represents the amount of expected overrun (negative VAC) or underrun (positive VAC).

WBS Dictionary

A document that describes the work content of 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 Statement of Work.   

WBS Element

Any block or unique entry in a work breakdown structure regardless of level.

WBS Levels

The arrangement or configuration of a WBS which establishes the hierarchy of projects to programs, systems to projects, subsystems to systems, etc.

Work Authorization Document (WAD).

Work Authorization Document (WAD). A form used to document authorized and budgeted work from the Project Manager or Sub-project/Element Manager. As a minimum this document must include the relevant WBS Control Account code, statement of work, scheduled start and completion dates, budget, and the name of the P-CAM.

Work Authorization Document (WAD).

A form used to document authorized and budgeted work from the Project Manager or sub-project/element manager. As a minimum this document must include the relevant WBS Control Account code, SOW, scheduled start and completion dates, budget, and the name of the P‑CAM.

Work Breakdown Structure (WBS)

A product-oriented hierarchical division of the hardware, software, services, and data required to produce the program’s or project’s end product(s), structured according to the way the work will be performed and reflecting the way in which program/project costs and schedule, technical, and risk data are to be accumulated, summarized, and reported.

Work Package (WP).

A detail, short duration task or material item identified by the Project Control Account manager for accomplishing a control account task. A work package has the following characteristics:  Represents unit of work at the level where work is performed.  Clearly separate from other Work Packages.  Assignable to a single organizational element.   Has scheduled start and completion dates, and interim milestones, if required, all of which represent physical accomplishment.  Has budget expressed in terms of dollars or hours/FTEs.   Its duration is limited to a relatively short span.  Is integrated with detailed engineering, shop, or other schedules.  Has a correct Earned Value Technique assigned to it.

Work Package (WP).

A detail, short duration task or material item identified by the P-CAM for accomplishing a Control Account task. A work package has the following characteristics: Represents unit of work at the level where work is performed.  Clearly separate from other Work Packages. Assignable to a single organizational element.  Has scheduled start and completion dates, and interim milestones – if required- all of which represent physical accomplishment.   Has budget expressed in terms of dollars or hours/FTEs.  Its duration is limited to a relatively short span.  Is integrated with detailed engineering, shop, or other schedules.  Has an correct Earned Value Technique assigned to it.

Work Package Budget

Resources that are formally assigned by the P-CAM to accomplish a Work Package task—expressed in dollars or hours.