Performance-Based Earned Value ®

PBEV = EVM + Quality
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References on Advanced EV, PBEV, and Government Reports: 
 

 

"Integrating Systems Engineering with Earned Value Management"
May/June 2004, page 42. Link: Defense AT&L, May 2004 

 

“Integrating Systems Engineering with EVM" The PMI Measurable News, Fall 2008, page 7.

 Link: PMI Meas. News, Fall 2008

 
“Integrating Technical Performance with Earned Value Measurement” The PMI Measurable News, Spring 2008, page 15.
  

Interim FAR rule on Linking Award Fees to Cost, Schedule, and Technical Objectives

"the amount of award fee earned shall be commensurate with the contractor’s overall cost, schedule, and technical performance as measured against contract requirements in accordance with the criteria stated in the award-fee plan"
 
DoD Software Tech News includes "Agile EV and the Technical Baseline"
The Sept. 2009 issue, "Managing for Success" also includes articles on software risk management, scope management, and EVM:
EVM: Keeping Your Projects on Track by Anita Cukr
Common Risk Patterns by Don Reifer

 Achieving Olympic Success on Software Projects with Scope Management by Carol Dekkers

Performance Based Acquisitions-What's Out There

 

The article, "Agile EV and the Technical Baseline," by Paul Solomon, may be viewed at the DOD Data and Analysis Center for Software (DACS) site

 https://www.softwaretechnews.com/stn_view.php?stn_id=51&article_id=138 without DACS registration.

 

The complete STN issue may be downloaded from https://www.softwaretechnews.com/stn_view.php?stn_id=51 . You will first have to register with DACS. 

 
DoD Software Tech News features Using EVM to Manage Software Projects
The April 2009 issue, "EVM, Keeping Your Project on Track," includes the following articles:
 

Applying EVM to Software Intensive Programs by Bob Hunt (Galorath Inc.) ,  Dan Galorath  (Galorath Inc.), and Paul Solomon (Performance-Based Earned Value® )

EVM in Government: Striking a Balance by Wayne Abba, Abba Consulting

 Earned Value for Agile Development by John Rusk, Optimation Ltd.

Defense Acquisition University’s Integrated Program Management Model by David  Bachman, DAU

 

Per the first article,  the proper use of PBEV provides for integration of project technical scope, schedule, and cost objectives; and the establishment of a baseline plan for performance measurement. The article provides guidance for improving program performance by implementing four processes:

  • Develop the technical, cost, and schedule baselines
  • Identify critical software management metrics
  • Apply Performance-Based EV
  • Use an analytic process to project cost and schedule based on actual performance  

Mr. Abba's article examines Government Policy for EVM, from its inception in the 1960’s to the present. He believes that the state of EVM in DoD has been deteriorating for several years and that the DoD management stool is not just wobbly, it's broken. The technical leg is missing, the financial leg is weak, and the cost leg is being reconfigured as an audit leg - a trend that, if not reined in, threatens to further erode EVM's usefulness as a proven management concept.  

 

The complete STN issue may be downloaded from the DACS site https://www.softwaretechnews.com/stn_view.php?stn_id=49 . You will first have to register with DACS. 

The article, Applying EVM to Software Intensive Programs, and other individual articles may be viewed at the DACS site https://www.softwaretechnews.com/stn_view.php?stn_id=49&article_id=127 without DACS registration.

 

 PBEV Webinar, sponsored by DOD Data and Analysis Center for Software (DACS)

1 hr. show and tell: How PBEV overcomes deficiencies of EVMS, application, basis in Systems Engineering standards.
Also downloadable PDF file.
 
Dept. of Navy memorandum on EVM Compliance Deficiencies
"EVM Reviews for ACAT I Programs" Feb. 2008
CrossTalk, the Journal of Defense Software Engineering
"Practical Software Measurement, Performance-Based Earned Value” Sept. 2001
 
http://www.stsc.hill.af.mil/crosstalk/2001/09/index.html 
"Performance-Based Earned Value” Aug. 2005
 http://www.stsc.hill.af.mil/crosstalk/2005/08/index.html
“Practical, Performance-Based Earned Value” May 2006
http://www.stsc.hill.af.mil/crosstalk/2006/05/index.html
 
Defense AT&L
"Update:SE and EVM Support for Performance-Based Award Fees" May/June 2007, page 50  Update: SE and EVM Support
 
"SE and EVM Support for Performance-Based Award Fees" Jan./Feb. 2007, page 39 SE and EVM Support
 
 
Carnegie Mellon U. Software Engineering Institute (SEI)
"Using CMMI to Improve Earned Value Management" Oct.2002
http://www.sei.cmu.edu/pub/documents/02.reports/pdf/02tn016.pdf
 
U.S. Army Practical Software and Systems Measurement (PSM)

"Technical Measurement Guide V1.0"

Provides information on implementing technical measurement on a project, including Measures of Effectiveness (MOEs), Key Performance Parameters (KPPs), Measures of Performance (MOPs), and/or Technical Performance Measures (TPMs).

See pages 34 and 48 or guidance on linking TPMS to the WBS, schedule, and EVM. URL: PSM Technical Measurement Guide V1.0

 

"Systems Engineering Leading Indicators Guide" initiated by PSM, INCOSE, MIT

See page 68, Technical Measurement Trends URL: SE Leading Indicators Guide

 
USAF Space & Missile Systems Center
"Systems Engineering Requirements and Products"
Air Force SMC Systems Engineering Primer & Handbook
https://acc.dau.mil/CommunityBrowser.aspx?id=25838&lang=en-US
 
Project Management Institute (PMI)- College of Performance Management,
The Measurable News
 “From Performance-Based Earned Value to the CMMI”
 
PMI Project Management Journal, March 2008 

"Best Project Management and Systems Engineering Practices in the Preacquisition Phase for Federal Intelligence and Defense Agencies" by Steven R. Meier

 (available only to PMI members). Root causes of cost and schedule growth in large programs. Best practices during preacquisition phase include a firm program requirements baseline and strong systems engineering to bind the technical solution to the requirements and to maintain the program baseline.  

 
Office of Management and Budget policy memo, 12/4/07,
Subject: Appropriate Use of Incentive Contracts
 
Government Accountability Office (GAO) Reports on EVM Deficiencies

 

GAO-10-2 INFORMATION TECHNOLOGY-Agencies Need to Improve the Implementation and Use of Earned Value Techniques to Help Manage Major System Acquisitions

GAO assessed agencies’ EVM policies to determine whether they are adequately using earned value techniques to manage key system acquisitions, and evaluate selected investments’ earned value data to determine their cost and schedule performances. For 13 of 16 investments in 8 agencies, GAO found that key practices necessary for sound EVM execution had not been implemented. These investments face an increased risk that managers cannot effectively optimize EVM as a management tool.

http://www.gao.gov/new.items/d102.pdf

 
GAO-09-96 HOMELAND SECURITY  U.S. Visitor  and Immigrant Status Indicator Technology Program (US-Visit) Planning and Execution Improvements Needed  (See summary on New tab)
 
GAO-08-756 Air Traffic Control: FAA Uses EV Techniques to Help Manage IT Acquisitions, but Needs to Clarify Policy and Strengthen Oversight (See summary on New tab)
GAO-08-448 Defense Acquisitions – Progress Made in Fielding Missile Defense, but Program Is Short of Meeting Goals (See summary on New tab)
GAO-08-388 Joint Strike Fighter - Recent Decisions by DOD Add to Program Risks 
GAO reported deficiencies in Lockheed Martin's EVM system (See summary on New tab)
GAO-08-294 Increased Focus on Requirements and Oversight Needed to Improve DOD’s Acquisition Environment and Weapon System Quality  (See summary on New tab)
GAO-08-345 Office of Personnel Management (OPM) Improvements Needed to Ensure Successful Retirement Systems Modernization (See summary on New tab)