Improving Program
Performance at
FAA
Presented to: NDIA
By: Keith Kratzert
Date: May 3, 2006
Federal Aviation
Administration
EVM at FAA
• Background
– FAA has used DoD approach (EVM for contractors
only) on some programs and decided it’s not
sufficient
– Will manage entire program using EVMS in
accordance with ANSI/EIA 748
• Manage/measure all resources
• Requires changes in behavior by all parties
Improving Program Performance at FAA
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FAST Home Page: http://fast.faa.gov
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EVM Transformation at FAA
• Holistic Approach
• Goals
– Adopting FAA and industry Program Management
"Best Practices"
– Strengthening and integrating technical, schedule,
and cost performance management of programs by
implementing earned value management techniques
– Positioning programs to be better able to anticipate,
forecast, and communicate future performance
based on objective performance metrics and risk
assessments as well as proven engineering
judgments
Improving Program Performance at FAA
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Federal Aviation
Administration
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EVM Transformation Overview “Flag”
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Assessment Themes - Issues
•
PM Commitment
•
Cross Cutting Themes
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Multiple Baselines
Gov’t FTE’s & Effort
Program Support LOE
Choosing the Correct Contract Type
Including Sufficient EVM Language in Contracts
Comprehensive Program-Level WBS
FAA Best Practices
– Performance-based Payments
– Mature Estimating Techniques
– Alignment of Program WBS with Contract CLINS and OMB 300 Useful
Segments
– GCAMS & CCAMS
– Program Level EVM Tools Application
– Risk Adjusted Schedule & Cost Applications
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EVM Transformation Overview
FAA Major Programs - Cost & Schedule Variance
Schedule Variance %
10%
Over Spent
Ahead of Schedule
Under Spent
Ahead of Schedule
5%
AAA
BBB
III
JJJ
KKK
GGG
HHH
DDD
FFF
EEE
LLL
SSS
TTT
-5%
MMM
-10%
NNN
OOO
Program Name
Color Code - EVMS
Quality:
>-15%
PPP
QQQ
Over Spent
Behind Schedule
Under Spent
Behind Schedule
RRR
-10%
-5%
5%
10%
Green: Meets
Yellow: Partially
Meets
Red: Does Not Meet
>15%
Cost Variance %
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EVM Council
• Formed as a continuation of the
management processes effort
• Co-Chaired by ATO-A and AIO
• Membership includes:
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ATO Service Unit representatives
Other Lines of Business implementing EVM
AIO representatives
CFO representatives
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EVM Transformation – Goals for 2006
• EVM Council tracking POA&M status – most targets
due in 2006 – if achieved, flag will turn to mostly
yellow and green.
• FAA to assess its financial processes against the
ANSI standard & update its flag
• FAA to issue a Layperson’s guide to EVM
• FAA to issue a manager’s guide to using EVM
• Technical Training to continue and be supplemented
by awareness training
• EVM toolkit to be selected.
• Our goal is that 50% of our “EVM” scores on our
exhibit 300s be “4” or “5” and the rest “3”.
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EVM Transformation – Goals for 2007
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Full EVM implementation by end of FY 07.
EVM part of Program Managers toolkit.
Full EVM reporting for all major investments.
EVM scores on Exhibit 300s are all “4” or “5”.
Use of EVM makes a major difference in ability
of FAA programs to stay on track and within
budget.
• Use of EVM contributes to FAA “NAS
Modernization Program” being removed from
the GAO High Risk List.
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FAA Contractor Meeting Feb 6, 2006
Participants
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Lockheed Martin
Raytheon
Harris
Parsons Infrastructure and Technology Group
Northrop Grumman
Mitre
Computer Sciences Corporation
Advanced Management Technology Inc.
BAE Systems
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Follow-up Meeting Guidelines
• Attendees requested to return for individual
meetings over next three months with EVM
team and selected Program Managers and
Contracting Officers
– Present Management Overview
• Company response to FAA initiative
• EVM System acceptance applicability to FAA or Plan to
achieve acceptance (ref. NDIA Systems Acceptance Guide)
• How EVM is used on current FAA contracts
• Best practices (e.g., subcontract management)
• Improvement opportunities
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FAA Contractor Meeting Follow-up
Participants
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Lockheed Martin*
Raytheon*
Harris
Parsons Infrastructure and Technology Group*
Northrop Grumman*
Mitre
Computer Sciences Corporation*
Advanced Management Technology Inc.
BAE Systems
* Follow-up meeting already held
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Administration
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FAA Procurement Comments
• Top contractors – suppliers, support
contractors, FFRDC
– Purpose – cooperation with industry to achieve
mutual success in performing FAA mission
– FAA EVM differs from legacy approach
• Program level, not just contractors
• Will not change existing contracts
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Expectations from Contractors
• Manage using ANSI/EIA 748
– Existing contracts will not be modified to require EVM
– For new contracts, contractors are responsible for
• Contract performance (scope, schedule, delivery)
• Excellent management
– Contractors may leverage existing EVM acceptance from other
agencies or work with FAA to develop new plan
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Summary-FAA EVM Approach Overview
FAA programs are implementing EVM at the program level and requiring
contractor EVM reporting in an effective and efficient manner
Prime Contractors
Program
Effort
Cost Reimbursable
Measurable
• EVM reporting and
certification
LOE (1)
• Status reporting and
invoices
1)
2)
Fixed Price
Support Contractors
Cost
Reimbursable
Fixed Price
• Performance
based payments,
or
• Status reporting
and invoices
• EVM reporting
and certification, or
• Status reporting
and invoices(1) (2)
• Performance
based
payments(1), or
• Status reporting
and invoices(1) (2)
• Status reporting
and invoices
• Status reporting
and invoices
• Status reporting
and invoices
EVM implemented by the FAA PO
Includes production and sustaining support, such as, engineering and program management
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