COP 30.104 Change Control
Revision No:
Effective Date and Signature:
I
Purpose
New
See Master Document list for effective date of this procedure.
(Date of final approver’s electronic signature.)
A. Description
This procedure describes the AECOM process by which changes to an
authorized Performance Measurement Baseline (PMB) are processed
for contract work that uses an Earned Value (EV) management
methodology. It establishes the methodology to initiate the PMB
change control process, track the Program Change Notice (PCN)
through approval by the Change Control Board (CCB), initiation of the
Baseline Change Proposal (BCP) process per the Planning and
Budgeting procedure, COP 30.101 Planning and Budgeting (Level 4)
(Reference A), and incorporation of changes into the performance
baseline. The purposes of this procedure are to:
1. Incorporate authorized changes in a timely manner, recording the
effects of such changes in budgets and schedules. In the directed
effort prior to negotiation of a change, base such revisions on the
amount estimated and budgeted to the program organizations.
2. Reconcile current budgets to prior budgets in terms of changes to
the authorized work and internal re-planning in the detail needed by
management for effective control.
3. Control retroactive changes to records pertaining to work
performed that would change previously reported amounts for
actual costs, EV, or budgets. Adjustments should be made only for
correction of errors, routine accounting adjustments, effects of
customer or management directed changes, or to improve the
baseline integrity and accuracy of performance measurement data.
4. Prevent revisions to the program budget except for authorized
changes.
5. Document changes to the performance measurement baseline.
II
Scope
A. Applicability
This procedure applies to AECOM team members (program, program
and site operations) and subcontractors supporting AECOM work. The
processes detailed in this procedure are followed when initiating and
processing changes to approved scope, schedule, and/or budgets for
AECOM programs.
B. Change Control Logic
Attachment A – Change Control Logic is the logic for change control
from change identification through approval to proceed with the work,
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 1 of 11
COP 30.104 Change Control
change of the PMB, and the initiation of a formal BCP.
III
Responsibilities
A. President, AGS
Approves Corporate Operating Procedures (COPs).
B. Chief Operating Officer, AGS
Reviews and, as appropriate, recommends approval to the President.
C. Quality Director, AGS
Ensures procedures are in compliance with governing policies and the
Quality Management System (QMS).
D. Chief Financial Officer (CFO)
1. Provides guidance to other managers for compliance with this
procedure.
2. Manages internal Finance Department implementation of this
procedure.
E. Program Manager (PM)
1. Establishing the Program Change Control Board (PCCB),
delegating authority to the PCCB, and designating a Board chair.
2. Requesting the client to establish a CCB for each task order (TO)
and designating the AECOM representative to that CCB.
3. Reviewing and concurring with the Control Account Managers
(CAMs) and Program Controls on the merits and impact of a
proposed change.
4. Approving the use of Management Reserve (MR) for in-scope
changes.
F. Business Manager (BM)
Implements this procedure as part of the EVMS.
G. Program Control Manager (PCM)
1. Ensuring the respective work planners and schedulers, in concert
with CAMs and the Directors of Costing and Procurement, assess
and develop:
a. Technical scope and justification for a proposed change.
b. Potential schedule and critical path impact of a proposed
change.
c. Estimated cost and budget impact of a proposed change.
d. Subcontract requirements, including the affected subcontractor
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 2 of 11
COP 30.104 Change Control
estimated costs and schedule impacts.
2. Assigning PCN Control Number, establishing and maintaining the
PCN Log, and tracking the PCN status throughout the process.
3. Facilitating the change process to ensure timely and consistent
processing from initiation through Program Manager concurrence,
submission to and approval by the PCCB, and submission of the
PCN Review Package to the CCB for approval. This includes
completion and issuance of the PCN Impact Assessment to the
PCCB for a go/no-go decision.
4. In concert with the CAM and the Program Manager, compiling the
formal PCN Review Package and submitting it via the Directorate
of Contracts for CCB review and approval.
5. Assisting the CAM in updating Control Account plans for PM
approved in-scope changes not requiring the use of MR.
H. Contracts Manager
1. Ensuring the PCN Review Package meets program and contractual
requirements prior to submission to the CCB.
2. Submitting the PCN Review Package for CCB review and
approval.
3. Facilitating the CCB approval process to ensure timely approval.
I. Control Account Manager (CAM)
1. Assessing the scope, schedule, and cost impacts on the CA for
PCCB approval, in concert with the Directors of Costing, Program
Controls, Procurement, and the program team.
2. Compiling the PCN Review Package for CCB approval in concert
with Program Controls and the Program Manager.
3. Assessing the use of MR for in-scope changes, in concert with
Program Manager.
J. Costing Manager
Estimating the cost impact for the defined technical scope.
K. The Procurement Manager
Assessing the impact of the proposed change on a subcontractor’s
schedule and cost.
L. Financial Manager
In concert with Program Controls, is responsible for establishing the
necessary charge codes for affected CAs to capture cost prior to and/or
after CCB approval and to ensure PCN costs are tracked separately.
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 3 of 11
COP 30.104 Change Control
M. Subcontractors
Provide detailed supporting schedules and estimated cost impact for the
proposed PCN.
IV
Reason for
Revision
New Procedure
V
General
A. Definitions
1. Baseline Change Proposal (BCP): A proposal requesting a
contractual change to a program’s budget, schedule, and/or scope.
It may contain a single or multiple approved PCN. Authorization
and requirements for a BCP are specified in the associated Letter of
Technical Directive for each approved PCN.
2. Change Control Board (CCB): The approving authority for PCN
Review Packages.
3. Letter of Technical Direction (LOTD): The document issued by the
client based on a CCB-approved PCN to authorize AECOM to
perform the PCN-defined work, authorize a PMB change, and
establish the BCP requirements.
4. Program Change Notice (PCN): A notice issued to initiate and
receive approval for a PMB change.
5. Program Change Notice Log (PCN Log): A log monitoring PCN
status from initiation through BCP approval.
6. Program Change Control Board (PCCB): An AECOM internal
review board for a proposed PCN. The members of the PCCB
review the merits of each proposed change.
Note: It will be the responsibility of each program to control its
own Program Change Notices and Program Change Notice Logs.
VI
Procedures and
Instructions
The Change Control Process consists of five steps:
A. Step 1: Change Identification
1. This first step identifies a potential change that may affect a
program’s authorized work scope, cost, and/or schedule. The key
elements of this step are:
2. AECOM personnel, subcontractors, or client representatives can
identify a potential change that impacts the scope, cost, and/or
schedule by completing a PCN. At a minimum, the initiator
provides the following:
a. PCN title, as defined by the initiator.
b. The date the PCN Form is initiated and the initiator’s name,
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 4 of 11
COP 30.104 Change Control
organization, and contact information.
c. The name of the individual initiating the PCN.
d. The WBS elements and WBS dictionaries that would be
affected by the proposed change.
e. The type of change:
1)
External Change—A change to T.O. or contract effort,
cost, funding or schedule directed by the client.
2)
Internal Change—A change to scope, cost, or schedule
proposed by the Program Office, program team, or
subcontractor. This change may or may not require the
application of MR and may or may not require a change
to the approved performance measurement baseline.
f. The primary affected CA and respective CAM and all other
known affected CAs and/or CAMs. If not known by the
initiator, this information must be completed by the primary
CAM as part of the impact assessment.
g. A brief description of the proposed change that is adequate
enough to define the scope and assess the potential impact.
h. Justification for the proposed change or the impact on the
program’s performance, cost, and/or schedule if the change is
not accepted.
i. Note that retroactive changes to the baseline are approved only
to correct errors.
2. Program Controls then assigns a PCN Control Number and initiates
status tracking in the PCN Log. The format of the PCN No. is
xxxx-ppp where:
a. xxxx is the WBS code as specified in the WBS Dictionary that
the PCN affects.
b. ppp is a sequential number starting at 001 and continuing
through 999, based on the TO. It is the ppp number that is
appended to the respective CA that identifies a subdivision of
the affected CA and where ppp = 000 is reserved for original
CA scope item.
B. Step 2: Change Assessment
1. The responsible CAM, in concert with other affected CAMs,
Costing and Program Control’s planners and schedulers, appends to
the PCN Initiation Notice a PCN impact assessment of the
proposed change. This assessment is a narrative description that
describes:
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 5 of 11
COP 30.104 Change Control
a. Draft PCN scope and/or justification by affected CA, including
WBS and WBS dictionaries.
b. Basis of Estimate (BOE) for cost and schedule impacts by
affected CA.
c. Cost estimate by the affected CA.
d. Schedule impact and critical path analysis to determine if the
change will have an impact on any program milestone or affect
the work sequence. Affected scheduled activity should be
identified and the impact estimated.
2. The responsible CAM reviews the PCN Impact Assessment with
the Program Manager for concurrence to proceed to the PCCB.
C. Step 3: Internal Review
1. The Program Manager, Program Controls Manager and the CAM
will discuss the proposed PCN with the client.
2. Program Controls issues the PCN Impact Assessment to the PCCB
for a go/no-go decision based on the impact assessment and the
merits of the proposed change. This can occur concurrently or after
receiving input from the client, as described below:
a. Upon a no-go decision, Program Controls, in concert with the
CAM, stops all work associated with processing the PCN.
b. Upon a go decision, and based on the recommendations of the
PCCB, the Program Manager, in concert with Contracts,
determines if the PCN is in or out of scope:
1)
If “out of scope,” the procedure in Paragraph VI.2.D. of
this procedure is followed.
2)
If “in scope” and MR is used to fund the work the impact,
then the CAM, in concert with Program Controls, Costing
and Program Manager/team, initiates the planning and
budgeting process (Reference A) to revise the MR log
and PMB budgets.
3)
If “in scope” and the change affects an existing, defined
CA planning package, summary-level planning package,
or the allocation of undistributed budget, then the CAM,
in concert with Program Controls, Costing and the
Program Manager, initiates the planning and budgeting
process to revise the appropriate Control Account Plan
(CAP, PMB Logs, reports, and PMB budgets.
c. PCN Review Package: The PCN Review Package compiles
into a single package a potential change to scope, schedule, and
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 6 of 11
COP 30.104 Change Control
cost. (See the Target Timeline in Attachment B.) The key
actions are:
1)
Program Controls, in concert with the Program Manager/
team and the associated CAM either identifies the CA
impacted or creates a new CA if needed.
2)
Program Controls, in concert with Financial
Management, ensures that the appropriate charge codes
are established in the accounting system.
3)
Program Controls completes the PCN Review Package
and submits it to the Director of Contracts.
4)
The Contracts Manager confirms contract compliance,
submits the PCN Review Package to the CCB, and
facilitates the CCB approval process in concert with the
Program Manager until the change is either approved or
rejected.
D. Step 4: External Review Approval
1. CCB review and approval of a PCN Review Package results in the
issuance of a LOTD by the client. (See Target Timeline in
Attachment B.)
2. After the CCB approval of a PCN Review Package, the client
issues a LOTD that specifies:
a. Authorization to proceed with the PCN scope of work as
approved
b. Authorization of a PMB change per the spending limits as
approved based on the PCN Rough Order of Magnitude (ROM)
c. Authorized schedule changes
d. BCP requirements and instructions
3. Any discussion of an OTB must be coordinated carefully with the
client and managed consistent with the definition found in VI.G.
4. If a PCN Review Package is not approved, the rejected PCN
Review Package and all supporting data/information are recorded.
The PMO will determine if a claim to the client is warranted for
PCN preparation cost.
E. Step 5: Implementation
1. Upon receiving the LOTD from the client, Program Controls
updates the PMB per the Planning and Budgeting Procedure. (Note:
Upon initial acceptance of the PMB by management, Program
Controls personnel will complete the PMB Change Log up to the
section where the first change will be entered. The log then
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 7 of 11
COP 30.104 Change Control
becomes the basis for tracking the PCN process.)
2. The CAM updates the affected CAP per Reference A.
3. Reports of program performance are modified to reflect approved
changes to the baseline.
F. Records
PCN Impact Assessments and/or PCN Review Package and related
support documents are maintained by Program Controls.
G. Reprogramming OTB/OTS
1. The primary purpose of reprogramming is to establish realistic
budgets, schedules, and a meaningful basis for performance
measurement for the remaining work. Reprogramming decisions
must be based on achievability of the remaining plan. They are
preceded by a comprehensive EAC and schedule review and may
result in the need for an IBR. During the life of a program,
initiation of reprogramming may be required when severe
performance or technical problems are realized. Only after all other
corrective management actions are implemented should the
program decide the baseline is inadequate for effective control.
Before reprogramming, it is in the best interest of the company to
maintain open communication with the appropriate stakeholders
(internal or external) in the process. Approval from the customer is
required before implementing a reprogram for those programs that
have a CPR requirement. Customer and contractor discussions
should address the program cost, schedule, technical, and funding
implications resulting from implementing a reprogram.
Implementation of an OTB (i.e., the CBB exceeds the original
contract value) does not result in an automatic contract
modification nor a change to the contract past performance. A
program considering a reprogramming effort should exhibit the
following characteristics:
a. The overall program is between 15 and 85 percent of budgeted
work complete (BCWPcum/BAC) and at least 6 months of
significant effort remaining.
b. The existing budget baseline cannot be executed within
reasonable tolerances.
2. Below is a list of key reprogramming decisions that should be
considered:
a. Over-target schedule (OTS) – Defined as a schedule in excess
of contractual obligations
b. Customer concurrence regarding remaining scope and needed
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 8 of 11
COP 30.104 Change Control
resources
c. OTB – Defined as a budget in excess of contractual obligations
d. Elimination of cumulative schedule variance
e. Elimination of cumulative cost variance
f. Establishment of new management reserve targets for future
risk mitigation
g. Appropriateness of management controls to focus on problem
areas
h. Potential recovery from the customer for under-valued scope.
i. Contracting officer written approval is required before
reprogramming is implemented. Contracts without an external
EVMS requirement require the approval of management and
finance, at least one level above the contract Program Manager.
VII
Office of Primary
Responsibility
VIII Attachments
Director of Program Controls
Attachment A – Change Control Logic
Attachment B – Baseline Change Control Target Timeline
IX
Disposition of
Records
This procedure is valid until superseded or cancelled.
X
Approval Level
Program Manager
XI
References
A. COP 30.101 Planning and Budgeting (Level 4)
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 9 of 11
COP 30.104 Change Control
Attachment A–Change Control Logic
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 10 of 11
COP 30.104 Change Control
Attachment B–Baseline Change Control Target Timeline
AGS Corporate Operating Procedures
Date: 09.26.2011, New
Uncontrolled when printed.
Page 11 of 11