BASICS OF
EARNED VALUE
MANAGEMENT
National Contract Management Association
Colorado Springs Colorado
June 19, 2008
1
Earned Value Management
(EVM) Training Objectives
• Understand basic concepts
– What EVM is and basic terms
• How to evaluate performance
– What does it all mean?
• How to manage using Earned Value
– Now that we know what it is and what it means,
what do we do with it?
2
Earned Value Management
Systems measure progress
Progress = Movement Forward
to measure progress,
there must be a standard
against which the forward
movement may be
compared
EVMS establishes a baseline
to measure progress
3
EVM can provide answers to the
following questions:
• How much have we spent?
• How much did we get for our money?
• How much more will be have to spend to complete the
tasks we wanted to accomplish?
• How much longer will it take?
• How efficiently is the work being done?
• What has happened? (Why are we off schedule/cost?)
• What is happening? (What are the impacts?)
• What is going to happen? (What are we doing to fix it?)
4
Why use Earned Value
Management Systems?
“The Bottom Line”
• EVM can focus program management attention on
critical issues and risks during the “project” life
cycle
• How are you doing, and how do you know how you
are doing?
– Early problem identification
• Completion Estimates
– How far along are you? (64%, 50%, >40%)
– What is your productivity/efficiency?
– Work remaining
5
Earned Value Management
Is Not:
• Guarantee of profit
• Restricted to projects for the production of
a products – EVM can be used in service
contracts
• Solution for a poorly written statement of
work
• Magic Bullet
6
Five Basic Elements
BCWS
Budgeted Cost of Work Scheduled
BCWP
Budgeted Cost of Work Performed
ACWP
Actual Cost of Work Performed
BAC
Budget at Completion
EAC
Estimate at Completion
7
5 Basic Performance Data
Questions & Answers
QUESTION
ANSWER
ACRONYM
How much work should
be done?
Budgeted Cost for
Work Scheduled
BCWS
How much work is done?
Budgeted Cost for
Work Performed
BCWP
How much did the is done
work cost?
Actual Cost of
Work Performed
ACWP
What was the total job
supposed to cost?
Budget at Completion
BAC
What do we now expect the
total job to cost?
Estimate at Completion
EAC
8
What do we measure progress against?
and Why?
• Performance measurement baseline
– Budget that is spread over . . .
– Time, to accomplish the scope of
– Work, against which progress can be measured
• Earned Value is key concept
– how much progress did I make against my original
plan?
– expressed in dollars or hours
baseline
– Why? – early warning
$
earned value
9
time
Why do we need
Early Warning?
Small course corrections are
easier when made early…
… If you wait until you reach
the Iceberg, its too late!!!
10
Terms and Definitions associated with
EVM:
• It starts with the Work Breakdown Structure
(WBS)
– Based on the WBS a total budget is assigned
– Work packages are developed and priced
– A process to measure the results of those
work packages is put into place
– Work packages are tracked for both the
dollars and time spent
• The result of this effort is developing a Budget at
completion (BAC)
11
Work Breakdown Structure
Systematic approach to ensuring all program work is recognized and defined into
a viable work plan – should include labor and materials for complete picture
1.0 Project –
New Marketing Campaign
for Dog Food
First Level
Second Level
Third
Level
1.1 Printed
Media
1.1.1
Magazines
1.1.2
Newspaper
inserts
1.2 Electronic
Media
1.2.1
Website
1.2.2
TV
1.3 Radio
1.3.1
Local
Spots
1.3.2
Regional
Spots
12
Organizational Breakdown
Structure
Identifies the functions and/or people that will do the work
New Marketing Campaign
for Dog Food assign to the Western Division
Admin Asst
Chen
Chuck’s
Design
Team
Sally
For message
And theme
Juan for
Customer
interface
Regional
Media
Support
John for
Computer
Graphics
Josh
Audio
Tanya Print
Centralized
National
Support
Stan
In
Accounting
Ray
Budget
Beverly
in
National
Accounts
13
Responsibility Matrix
Assigns WBS work to OBS labor
Admin
Asst - - - - - - - - - - - - graphics
audio
------------
1.1.2
design - - - - - - - - - - - - - - - - - - - - - accounting
budget - - - - - - - - - - - -
1.2.1
-------------
---
---------------------------------
1.1.1
1.2
---------------------------------
OBS
1.1
---------------------------------
WBS
--
-- - ----------
14
CONTRACT BUDGET
BASE
AUTHORIZED,
UNPRICED
CONTRACT
PRICE
PROFITS AND
FEES
CONTRACT
BUDGET BASE
PERFORMANCE
MEASUREMENT
BASELINE
DISTRIBUTED
(control accountS)
MANAGEMENT
RESERVE
UNDISTRIBUTED
BUDGET
WITHHELD
FOR
UNKNOWNS
WITHHELD FOR
KNOWN EFFORT
15
ORGANIZATION
CONTRACT
BUDGET LEDGER
MASTER SCHEDULE
GENERAL WORK
AUTHORIZATION
Control Account
WBS # ______________ ORG # ______________
TASK DESCRIPTION________________________
SCHEDULE _______________________________
TOTAL BUDGET ________________
WBS ELEMENT
ORGANIZATION
WORK AUTHORIZATION
WORK PACKAGE
WP # ________ ORG # _________
SCHEDULE
BUDGET
COST ACCUMULATION
DESCRIPTION ________________
______________________________
SCHEDULE _________________
BUDGET ___________________
16
The Control Account
A Key Management Control Point

Specific functional responsibility

Specific WBS responsibility

Work planning and assignment

Performance measurement

Cost collection

Variance analysis

Corrective action

Basis of data summarization
17
CONTRACT BUDGET
BASE
AUTHORIZED,
UNPRICED
CONTRACT
PRICE
PROFITS AND
FEES
CONTRACT
BUDGET BASE
PERFORMANCE
MEASUREMENT
BASELINE
DISTRIBUTED
(control accountS)
MANAGEMENT
RESERVE
UNDISTRIBUTED
BUDGET
WITHHELD
FOR
UNKNOWNS
WITHHELD FOR
KNOWN EFFORT
18
PERFORMANCE MEASUREMENT
DATA ELEMENTS
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.
KEY: Only used for the effort associated
with the contractual change.
19
PERFORMANCE MEASUREMENT
DATA ELEMENTS
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.
KEY: There is no scope of work associated
with management reserve budget.
20
PLANNING AND BUDGETING
ESTABLISH THE BASELINE - AN ITERATIVE, 3-STEP PROCESS
1. DEFINE THE WORK
CONTRACT BUDGET BASE
MR
2. SCHEDULE THE WORK
$
3. ALLOCATE BUDGETS
100
40
60
15
25
30
30
TIME
21
Work Budgeted and Earned
• The value of the budgeted work is called:
Budgeted Cost of Work Scheduled
(BCWS)
• The value of work earned is called:
Budgeted Cost of Work Performed
(BCWP)
– BCWP is also called Earned Value (EV)
22
5 Basic Performance Data
Questions & Answers
QUESTION
ANSWER
ACRONYM
How much work should
be done?
Budgeted Cost for
Work Scheduled
BCWS
How much work is done?
Budgeted Cost for
Work Performed
BCWP
How much did the is done
work cost?
Actual Cost of
Work Performed
ACWP
What was the total job
supposed to cost?
Budget at Completion
BAC
What do we now expect the
total job to cost?
Estimate at Completion
EAC
23
Budgeted Cost of Work Scheduled
(BCWS)
Total Budget = $5,000
to be spent over 5 months
I plan to lay 1 section
of track each month at an
estimated cost of $1,000.
BCWS each month = $1,000
Total BCWS = $5,000
Month 1
BCWS = $1,000
Month 4
BCWS = $1,000
Month 2
BCWS = $1,000
Month 3
BCWS = $1,000
Month 5
BCWS = $1,000
sum of all BCWS = performance baseline
5 Basic Performance Data
Questions & Answers
QUESTION
ANSWER
ACRONYM
How much work should
be done?
Budgeted Cost for
Work Scheduled
BCWS
How much work is done?
Budgeted Cost for
Work Performed
BCWP
How much did the is done
work cost?
Actual Cost of
Work Performed
ACWP
What was the total job
supposed to cost?
Budget at Completion
BAC
What do we now expect the
total job to cost?
Estimate at Completion
EAC
25
Budgeted Cost of Work Performed
(BCWP)
aka. Earned Value
Track 1
BCWS = $1,000
Track 2
BCWS = $1,000
50% done
We’re at the end of
February, Track 1 is
complete and track 2 is ½
done.
Value of work
performed = $1,500
26
BUDGET BASED
Schedule Variance
BC WS
BC WP
of the work I scheduled to have done,
how much did I budget for it to cost?
of the work I actually performed,
how much did I budget for it to cost?
SCHEDULE VARIANCE is the difference between work scheduled
and work performed (expressed in terms of budget dollars)
formula:
SV $ = BCWP - BCWS
example:
SV = BCWP - BCWS = $1,500 - $2,000
SV= -$500 (negative = behind schedule)
27
Schedule Variance
5,000
BCWS
“the baseline”
sv
$
BCWP
“earned value”
TIME
28
5 Basic Performance Data
Questions & Answers
QUESTION
ANSWER
ACRONYM
How much work should
be done?
Budgeted Cost for
Work Scheduled
BCWS
How much work is done?
Budgeted Cost for
Work Performed
BCWP
How much did the is done
work cost?
Actual Cost of
Work Performed
ACWP
What was the total job
supposed to cost?
Budget at Completion
BAC
What do we now expect the
total job to cost?
Estimate at Completion
EAC
29
Actual Cost of Work Performed
(ACWP)
• Value is earned as the work is completed
and gauged against the schedule proposed
for the work
• When all work is completed it will have
earned its full budgeted value but the actual
cost of that work may be different that the
amount budgeted… this is referred to as
Actual Cost of Work Performed (ACWP)
30
PERFORMANCE MEASUREMENT
DATA ELEMENTS
ACTUAL COST FOR WORK PERFORMED (ACWP)
The costs actually incurred and recorded in accomplishing
the work performed (BCWP) within a given time period
• Labor
• Material (Subcontractor/vendor)
• Other, computer costs, etc.
• Indirect Costs
Actual Cost of Work Performed
(ACWP)
Track 1 Cost = $1,500!
Track 2 Cost = $750 cost to
date
Total Cost to Date = $2,250
32
BC WP
AC WP
PERFORMANCE BASED
Cost Variance
of the work I actually performed,
how much did I budget for it to cost?
of the work I actually performed,
how much did it actually cost?
COST VARIANCE is the difference between budgeted cost
and actual cost
formula:
CV $ = BCWP - ACWP
example:
CV = BCWP - ACWP = $1,500 - $2,250
CV= -$750 (negative = cost overrun)
33
Cost Variance
5,000
ACWP
“actual cost”
cv
$
BCWP
“earned value”
TIME
34
Variance Summary
• The difference between the BCWP and the
ACWP is called a cost variance
• The difference between the BCWP and
BCWS is called schedule variance and is
provided in terms of dollars
35
5 Basic Performance Data
Questions & Answers
QUESTION
ANSWER
ACRONYM
How much work should
be done?
Budgeted Cost for
Work Scheduled
BCWS
How much work is done?
Budgeted Cost for
Work Performed
BCWP
How much did the is done
work cost?
Actual Cost of
Work Performed
ACWP
What was the total job
supposed to cost?
Budget at Completion
BAC
What do we now expect the
total job to cost?
Estimate at Completion
EAC
36
Budget at Completion (BAC)
BAC
$
$
$
$
$
$
$
$
time
• when all work has been phased, cumulative BCWS = BAC
37
Estimate at Completion
(EAC)
Just a few little
glitches…. We should
be able to do the
complete job….ack…
let’s see, for about
$7,000
38
Variance at Completion (VAC)
B AC
E AC
what the total job is supposed
to cost
what the total job is expected
to cost
VARIANCE AT COMPLETION is the difference between what the total
job is supposed to cost and what the total job is now expected to cost.
FORMULA:
Example:
VAC = BAC - EAC
VAC = $5,000 - $7,000
VAC = - $2,000 (negative = overrun)
39
Earned Value Management
(EVM) Training Objectives
• Understand basic concepts
– What EVM is and basic terms
• How to evaluate performance
– What does it all mean?
• How to manage using Earned Value
– Now that we know what it is and what it means,
what do we do with it?
40
Formulas
• Cost variance
BCWP – ACWP
• Schedule variance
BCWP – BCWS
• Cost variance in
percentage
BCWP – ACWP x 100
BCWP
• Schedule variance in
percent
BCWP – BCWS x 100
BCWS
Negative variance = cost overrun or behind schedule
Positive variance = cost underrun or ahead of schedule
41
Trend Analysis
Cost Performance Index (CPI) measure of cost efficiency
CPI =
Value of Work Completed
Cost of Work Completed
(BCWP)
(ACWP)
Schedule Performance Index (SPI) measure of schedule efficiency
SPI = Value of Work Completed
(BCWP)
Value of Work Planned
(BCWS)
Closer to “1” the better
Less than 1 = overrun (CPI); behind schedule (SPI)
Greater than 1 = underrun (CPI); ahead of schedule (SPI)
42
Performance Efficiencies
• DO I THINK THE CONTRACTOR WILL COME IN ON BUDGET?
COST PERFORMANCE INDEX:
CPI = cost efficiency for work performed to date
(The value of work accomplished for each dollar spent)
=
BCWP
ACWP
=
WORK
ACCOMPLISHED
ACTUAL
COST
=
WORK
= ACCOMPLISHED
ACTUALS
$1500
$2250 = .67
SCHEDULE PERFORMANCE INDEX:
SPI = schedule efficiency with which work has been accomplished
(The rate at which work is being accomplished)
=
BCWP
BCWS
=
WORK
ACCOMPLISHED
WORK
SCHEDULED
=
WORK
= ACCOMPLISHED
WORK
SCHEDULED
$1500
$2000 = .75
43
EXERCISES
• Attendees – Go to your Exercise
Packet
44
EVM Exercise
BAC = 500
BCWS = 300
BCWP = 320
ACWP = 330
•
•
•
•
•
What is the cost variance?
What is the Schedule variance?
What is the Cost Performance Index?
What is the Schedule Performance Index?
How would you describe this project?
45
Solution
BAC = 500
BCWS = 300
BCWP = 320
ACWP = 330
• What is the cost variance?
• BCWP – ACWP = -10
• What is the Schedule variance?
• BCWP – BCWS = +20
46
Solution
BAC = 500
BCWS = 300
BCWP = 320
ACWP = 330
• What is the Cost Performance Index?
BCWP/ACWP = .97
• What is the Schedule Performance Index?
BCWP/BCWS = 1.07
47
Solution
Cost Variance = -10
Schedule Variance = + 20
CPI = .97
SPI = 1.07
• How would you describe this project?
Over budget, ahead of schedule
48
Example Of Performance
Analysis By WBS Element.
The table that follows presents key
information for several elements of the
contract WBS
What can it tell us?
Cost Performance Report Work Breakdown Structure
Budget
Baseline
$1.5 mil
WBS
Element
Cumulative Cost To Date (in $000)
Budgeted Cost
Work
Scheduled
Actual
Cost
Work
Performed
Variance
Schedule
Cost
Budgeted
Estimated
Variance
1.1
250
250
260
0
(10)
250
260
(10)
1.2
90
85
84
(5)
1
100
100
0
1.3
130
150
155
20
(5)
330
340
(10)
1.4
200
200
185
0
15
250
235
15
1.5
300
310
320
10
(10)
400
415
(15)
1.6
120
120
140
0
(20)
120
140
(20)
1,090
1,115
1,144
1,450
1,490
(40)
Subtotal
Mgt. Reserve
Total
Cost At Completion (in $000)
50
1,090
1,115
1,144
1,500
50
1,490
10
50
Graphical Depictions of EVM
PERFORMANCE MEASUREMENT
DATA ELEMENTS
BUDGET
$
TIME
Contract
Complete
PERFORMANCE MEASUREMENT
DATA ELEMENTS
BUDGET
$
CV
TIME
Contract
Complete
BCWP Allows Isolation of
Schedule and Cost Variances
5,000
BCWS
ACWP
$
cv
sv
BCWP
TIME
schedule variance = BCWP - BCWS = negative number
cost variance
= BCWP - ACWP = negative number
behind schedule,
over cost
Budget at Complete (BAC), Estimate at Complete (EAC)
and Variance at Complete (VAC)
Schedule
BAC = Sum of BCWS
Delay
(Planned cost of all work)
EAC
BAC = $5,000
VAC
BAC
EAC(kr)* = ACWP plus estimated
to complete (ETC)
ETC
(Actual cost to date plus expected
$
cost to finish all work)
EAC = $7,000
VAC = BAC-EAC
VAC = $5,000-$7,000
VAC = -$2,000
TIME
55
* EAC(kr) = Contractor EAC
PERFORMANCE MEASUREMENT
DATA ELEMENTS
BUDGET
VAC
$
CV
TIME
SV
Contract
Complete
CPI
1.0
Trend Analysis Using
Performance Indexes
SPI
SPI
1.0
CPI
Time
1.0
SPI
Time
CPI
Time
57
Trend Analysis Using Performance
Indexes
CPI
1.0
SPI
CPI
1.0
SPI
Time
1.0
SPI
Time
CPI
Time
58
Earned Value Management
CPI
1.0
Trend Analysis
SPI
CPI
1.0
Time
1.0
SPI
SPI
Time
CPI
Time
59
Sample combined numerical
and graphical display
61
Earned Value Management
(EVM) Training Objectives
• Understand basic concepts
– What EVM is and basic terms
• How to evaluate performance
– What does it all mean?
• How to manage using Earned Value
– Now that we know what it is and what it means,
what do we do with it?
62
Ways of Earning Value
• Earned Value techniques
– Discrete
• physical, tangible end product
– Apportioned
• discrete, dependent on another discrete work package
• example: quality assurance
• planned as historical estimating factor (e.g., 7%)
– Level of Effort
•
•
•
•
•
no tangible end product
basis of measurement: time
when clock starts ticking, you automatically accumulate earned value
no schedule variance
example: management personnel
• Should be a quantitative and discrete way to measure
the work
• May tie in with success criteria or technical measure
• e.g., successful completion of a specific test, QP’s
63
Contractor Reports
• Cost Performance Report (CPR)
– Format 1: cost and schedule progress by WBS
(specified reporting level usually at level 3)
– Format 2: cost and schedule progress by
organization
– Format 3: changes to performance measurement
baseline
– Format 4: manpower forecast
– Format 5: variance analysis
64
Format 1 Block Descriptions
Block #
1. Contractor Information - Tells you name and address of contractor
2. Contract Information - Tells name, number, type and Share ratio of contract
3. Program Information- Name and Phase of program
4. Report Period - Beginning and end dates of the report data
5. Contract Data - Includes quantities, prices, fee’s, profit, and ceilings
6. Estimated cost - Estimated cost at completion and variance
7. Contractor Representative - Name, Title, Signature, and Date signed
8. Broken in to sections a through g and in 4 groups of data
- Current period - BCWP, BCWS, ACWP, Cost and Schedule Variances
- Cumulative to date - BCWP, BCWS, ACWP, Cost and Schedule Variances
- Reprogramming Adjustments - Cost Variances and Budget
- At Completion - Budgeted, Estimated, and Variance
8a WBS cost data
8b
Cost of money
8c
General and administrative cost
8d
Undistributed money
8e
Subtotal (Total without Management Reserve)
8f
Management Reserve
8g
Total
9a
Variance adjustments (Cumulative to Date)
9b
Total Contract Variance (Cumulative to Date and At Completion)
65
Format 2: Organizational
Categories
• Used when contractor organizational
structure does not mirror the WBS
structure
• Provides CPR data in an organizational
format
66
Format 3: Baseline
• Used to track changes to the performance
baseline and future authorized work
– Identifies all changes to authorized work
during the reporting period
– Identifies distribution of any undistributed
budget during the reporting period
67
Format 4: Staffing
• Provides planned staffing
– Current Period
– Cumulative to the end of Current Period
– Staffing forecast's to end of authorized work
– At Completion
• Broken down into organizational
categories
68
Format 5: Explanation and
Problem Analysis
• Also called Variance Analysis Report
(VAR)
• Provides explanations, impact, and
corrective actions of WBS that exceed
thresholds
69
Variance Explanations
• Format 5 variance analysis should
address:
– separate discussion of CV, SV (current and
cum) and VAC
– clear description of reason for variance
– quantity variances (e.g., price vs. usage)
– be specific, not general
A big hammer for
a big variance!
– corrective action
– technical, schedule, and cost impacts
– impact to estimate at completion
70
Contract Price
Earned Value Management
‘Gold Card’
CBB
OTB
AUW
OVERRUN
EAC
PMB
TAB
Management Reserve
$
Undistributed
Budget
Summary Level
Planning Packages
Planning Packages
TERMINOLOGY
ACWP
BCWS
BCWP
Time
Now
Control
Accounts
Work Packages
Cost
Variance
time
Management
Reserve
BAC
PMB
Schedule Variance
Profit / Fees
TAB
NCC
Completion
Date
VARIANCES Favorable is Positive, Unfavorable is Negative
Cost Variance
CV = BCWP – ACWP CV % = (CV / BCWP) *100
Schedule Variance
SV = BCWP – BCWS SV % = (SV / BCWS) * 100
Variance at Completion VAC = BAC – EAC
OVERALL STATUS
% Schedule = (BCWSCUM / BAC) * 100
% Complete = (BCWPCUM / BAC) * 100
% Spent
= (ACWPCUM / BAC) * 100
NCC
AUW
CBB
OTB
TAB
BAC
PMB
MR
UB
CA
Negotiated Contract Cost
Authorized Unpriced Work
Contract Budget Base
Over Target Baseline
Total Allocated Budget
Budget At Completion
Performance Measurement Baseline
Management Reserve
Undistributed Budget
Control Account
WP
PP
BCWS
BCWP
ACWP
EAC
Work Package
Planning Package
Budgeted Cost for Work Scheduled
Budgeted Cost for Work Performed
Actual Cost of Work Performed
Estimate At Completion
LRE Latest Revised Estimate
SLPP Summary Level Planning Package
TCPI To Complete Performance Index
Contract price less profit / fee(s)
Work contractually approved, but not yet negotiated / definitized
Sum of NCC and AUW
Sum of CBB and recognized overrun
Sum of all budgets for work on contract = NCC, CBB, or OTB
Total budget for total contract thru any given level
Contract time-phased budget plan
Budget withheld by Ktr PM for unknowns / risk management
Broadly defined activities not yet distributed to CAs
Lowest CWBS element assigned to a single focal point to plan & control
scope / schedule / budget
Near-term, detail-planned activities within a CA
Far-term CA activities not yet defined into WPs
Value of work planned to be accomplished = PLANNED VALUE
Value of work accomplished
= EARNED VALUE
Cost of work accomplished
= ACTUAL COST
Estimate of total cost for total contract thru any given level;
may be generated by Ktr, PMO, DCMA, etc. = EACKtr / PMO / DCMA
Ktr’s EAC or EACKtr
Far-term activities not yet defined into CAs
Efficiency needed from ‘time now’ to achieve an EAC
DoD TRIPWIRE METRICS Favorable is > 1.0, Unfavorable is < 1.0
EVM POLICY: DoDI 5000.2, Table E3.T2 . EVMS in accordance with ANSI/EIA-748 is required for cost or incentive
Cost Efficiency
CPI = BCWP / ACWP
Schedule Efficiency SPI = BCWP / BCWS
contracts, subcontracts, intra-government work agreements, & other agreements valued > $20M (Then-Yr $). EVMS
contracts > $50M (TY $) require that the EVM system be formally validated by the cognizant contracting officer. Additional
Guidance in Defense Acquisition Guidebook and the Earned Value Management Implementation Guide (EVMIG). EVMS is
discouraged on Firm-Fixed Price, Level of Effort, & Time & Material efforts regardless of cost.
BASELINE EXECUTION INDEX (BEI) (Schedule Metric)
BEI = # of Baseline Tasks Actually Completed / # of Baseline Tasks Scheduled for Completion
CRITICAL PATH LENGTH INDEX (CPLI) (Schedule Metric)
CPLI = (Critical Path Duration + Float Duration (to baseline finish)) / Critical Path Duration
TO COMPLETE PERFORMANCE INDEX (TCPI) # §
TCPIEAC
= Work Remaining / Cost Remaining = (BAC – BCWPCUM) / (EAC – ACWPCUM)
ESTIMATE AT COMPLETION #
EAC
= Actuals to Date + [(Remaining Work) / (Efficiency Factor)]
EACCPI
=
ACWPCUM + [(BAC – BCWPCUM) / CPICUM ] =
BAC / CPICUM
EACComposite
=
ACWPCUM + [(BAC – BCWPCUM) / (CPICUM * SPICUM)]
# To Determine a Contract Level TCPI or EAC; You May Replace BAC with TAB
§ To Determine the TCPI BAC or LRE Replace EAC with either BAC or LRE
EVM CONTRACTING REQUIREMENTS:
Non-DoD FAR Clauses – Solicitation – 52.234-2 (Pre-Award IBR) or 52.234-3 (Post Award IBR)
– Solicitation & Contract – 52.234-4
DoD( ≥ $20M) DFAR Clauses - 252.234-7001 for solicitations and 252.234-7002 for solicitations & contracts
Contract Performance Report – DI-MGMT-81466A * 5 Formats (WBS, Organization, Baseline, Staffing & Explanation)
Integrated Master Schedule – DI-MGMT-81650 * (Mandatory for DoD EVMS contracts)
Integrated Baseline Review (IBR) - Mandatory for all EVMS contracts
* See the EVMIG for CPR and IMS tailoring guidance.
EVM Home Page = https://acc.dau.mil/evm eMail Address: EVM.dau@dau.mil
DAU POC: (703) 805-5259 (DSN 655)
Revised April 2008
71