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Develop policy, process guidance, and training for EVMS on services work. Recommendations to balance benefits with risks and cost. Seek objective methods for measuring earned value in services. Recommend separate analysis of performance data for development and service work. Flexibility in EVMS systems may be required. Summary-level planning and allowances for more frequent re-time-phasing of budgets necessary. Use WBS process to determine work managed using EVM and PBSA. Conclusions and outline for guidance document provided.
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Program Management Systems Committee EVM for Service Contracts Working Group Joint Industry/Government Meeting January 29, 2009
Subcommittee Charter • Problem Statement • EVMS is being applied to a variety of services type work scenarios and there is no consistent guidance or policy on how EVMS should be implemented • Charter for Subcommittee: • To develop and recommend policy, process guidance, and/or training to support the implementation of EVMS on services type work • Targeted Exit Criteria: • White Paper - “Guidance for Implementing EVMS on Services Work
Earlier Conclusions • EVM is useful for managing services work; however its application should be scaled to balance the benefits of EVM with program risks and the cost of EVM implementation • EVM is compatible with performance based services acquisition, but there are some issues that require further discussion/resolution (we no longer agree entirely with this conclusion) • It’s important to seek ways to define objective methods for measuring earned value of services • Over-reliance on LOE for services can mask progress on other work • Recommend separate analysis of performance data for development and service work • It may be more appropriate and beneficial to implement EVM at the program level rather than at the individual contract level, e.g., staff augmentation (personal services) work • More flexibility in EVM Systems may be required to enable optimal application of EVM to services contracts, e.g., • Summary-level planning/shorter planning horizons • Allowances in the process for more frequent re time-phasing of budgets • Use WBS process to determine work to manage using EVM and PBSA.
Yesterday’s Participants • Matt Morris • Barbara Phillips • Lucy Haines • Mark Infanti* • Mike O’Neill • Buddy Everage* • Bill Mendelson • Steve Gahm • Eric Christoph • Jeff Christoph *Attended working group session last August
Conclusions • EVMS or PBMS required for services • EVMS useful for discrete projects • Performance-based management is more appropriate for services that are difficult to scope and schedule, e.g., IT services, logistics, maintenance • Management objectives vary among types of services, e.g., when a service is provided in accordance with a service level agreement (SLA), the goal may be to meet the required service level at a planned or lower cost • Commonalities also exist, including • WBS • Resource plan • Metrics, but not necessarily EV
Outline for Guidance Document • Define, compare and contrast products vs. services • Provide guidance for selecting appropriate management methods applicable to the contract scope of work • Many contracts are hybrids – both EVM and PBM could be used on different WBS elements within a single contract • Methods may also vary by contract type • Collect and describe characteristics of various types of services • Write guidance for each, e.g., IT, logistics, depot maintenance, etc. • Provide guidance for contracting, i.e., to put management requirements on contract correctly
