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New: 6/28/2010: OMB IT Policy

The Office of Management and Budget (OMB) issued two policy memoranda to reform and improve the management and oversight of Information Technology (IT) projects.

M-10-25, Subject: Reforming the Federal Government’s Efforts to Manage Information Technology Projects M_10-25

           Includes direction for the OMB’s Deputy Director for Management to

1.Develop recommendations for improving the Federal Government ’s IT procurement and management practices.

2.Address the root causes of problems plaguing Federal IT projects by

·      Strengthening existing policies and procedures where appropriate

·      Eliminating outdated and cumbersome rules

·      Focusing on proven best practices from inside and outside the Federal Government

3.Include higher standards for project management practices and personnel, additional mechanisms for holding managers accountable for project results, and more rigorous review processes.

 

M-10-26, Subject: Immediate Review of Financial Systems IT Projects M-10-26

OMB reviews of financial projects will be based on principles and practices that include ongoing, transparent project oversight. Proven best practices in this area include

·         Identifying up-front a series of milestones, warning flags, and stop points over the course of the segment lifecycle which, if deemed necessary, can cause the project to be suspended and returned to planning.

·         Clear deliverables should be monitored closely and any delays in deliverables should automatically result in a more in-depth review of a project.

·         Mechanisms for review of project status by senior management should be built into a project plan. Revised agency projects plans should integrate these best practices into their oversight processes.

 Performance-Based Earned Value®, is based on proven best practices from outside the Federal Government, including the PMI

 

 Project Management Body of Knowledge®, systems engineering standards and CMMI®. Agencies and contractors can use PBEV to   achieve OMB goals. 

 

New: 6/9/2010: H.R. 5136, ‘‘National Defense Authorization Act for Fiscal Year 2011,’’ which had been passed in the House, was placed on the Senate calendar.

Section 106(a) requires DoD to review acquisition guidance, including DoD Instruction 5000.02, and to consider

Sec. 106(b)(4):

  • the extent to which earned value management should be required on acquisitions not involving the acquisition of weapon systems and
  • whether
    measures of quality and technical performance should be included in any earned value management system

     

New: 5/19/2010:  S. 920 , ‘‘Information Technology (IT) Investment Oversight Enhancement and Waste Prevention Act of 2009’’ was passed by the Senate.

Purpose:

  • Improve the transparency of the status of IT investments
  • Require greater accountability for cost overruns on Federal IT investment projects
  • Improve the processes agencies implement to manage IT technology investments,

Section 3, requires the Director of the Office of Management and Budget (OMB) to establish a website that includes information such as the cost, schedule, and performance of all major IT investments using earned-value management data based on ANSI/EIA-748-B or another objective performance-based management system approved by the E-Government Administrator.

DOD EVM Report to Congress: 

DOD submitted its Congressionally-required report on Earned Value Management, DoD EVM: Performance, Oversight, and Governance (Report).

Report concluded that "The utility of EVM has declined to a level where it does not serve its intended purpose." It includes findings and recommendations regarding:

1. Changes in culture necessary

2. Accuracy of EVM data

3. Technical Performance Measures (TPM).

4. Systems Engineering (SE)

 

The following information is available at the DoD EVM Implementation tab within Dept. of Defense tab.

  • Link to Report
  • Abstract of the Report regarding the above issues
  • Assessment of the Report's merits and deficiencies
  • Recommendations to improve the effectiveness of EVM sent to the Senate and House Armed Services Committees and to the Office of Management and Budget
  • Assessment of Industry's input to DoD for the Report   
 

May 22, 2009: Pres. Obama signs Weapons System Acquisition Reform Act of 2009. Includes EVM improvement and Systems Engineering (SE) best practices.

Section 302, Earned Value Management, directs DoD to provide recommendations for improving EVM and its implementation within DoD including:

·         A discussion of the merits of possible alternatives

·         A plan for implementing any improvements the Secretary determines to be appropriate

 

The EVM amendment was sponsored by Sen. Collins and Sen. McCaskill. In the Conference Report, Sen. Collins stated that the "GAO has observed that contractor reporting on EVM often lacks consistency, leading to inaccurate data and faulty application of the EVM metric. In other words, garbage in, garbage out." The report states that the improvement plan would "require DOD to consider the quality of the contractor's EVM systems and reporting in the past performance evaluation for a contract. With improved EVM data quality, both the government and the contractor will be able to improve program oversight, leading to better acquisition outcomes."

 

The Act also requires that DoD develop policies and guidance for the

·         Use of SE principles and best practices

·         Development of SE master plans

The Act can be downloaded at http://www.govtrack.us/congress/bill.xpd?bill=s111-454