NDIA and Earned Value Management – Humphreys & Associates Marks 35+ Years of Participation

by Humphreys & Associates on June 13, 2013

NDIA and Earned Value ManagementThe National Defense Industrial Association (NDIA), Integrated Program Management Division (IPMD) plays a central role in defining earned value management within the defense contracting community. Earned value management, or EVM, is a project management methodology that measures the technical, cost and scheduling performance of projects and/or programs. EVM systems (EVMS) are widely used and in some cases required by federal government agencies on large and complex contracts. The NDIA IPMD is industry’s opportunity to work closely with the federal government to set policy and provide guidance to its members.

NDIA and Eared Value Management Standards – Their Leadership Role

The NDIA has long taken the lead in setting EVM standards. In the 1990s, it recommended modifications to the 35 Department of Defense Cost Schedule Control Systems Criteria (C/SCSC) and proposed 32 guidelines that included the needs of industry as well as meeting the government requirements. The Defense Contracting Management Agency (DCMA) concurred with the use of the 32 guidelines which became the 748A standard. The NDIA IPMD has since maintained the role of managing the standard.

The NDIA Integrated Program Management Division (IPMD) also provides guidance in the implementation and use of EVM systems (EVMS) to achieve integrated program management. While IPMD membership is limited to industry representatives, government personnel from the various agencies implementing EVMS are regular participants in the IPMD’s quarterly working group meetings. The various IPMD working groups focus on strengthening the understanding and implementation of compliant EVM systems.

NDIA EVM System Guides

The IPMD has published a series of widely used EVMS guides. The Earned Value Management Systems Intent Guide provides an interpretation of the EIA 32 guidelines for  companies seeking to implement a compliant EVM system. The committee revised the Earned Value Management System Intent Guide in 2014 and continues working on further improvements. The Planning and Scheduling Excellence Guide (PASEG) Version 3 was released in 2016 and is used in the development of Integrated Master Plans (IMP) and Integrated Master Schedules (IMS) EVMS compliant processes and artifacts.    Other IPMD documents address specific aspects of the EVM process, such as the Earned Value Management System Acceptance Guide, the Integrated Baseline Review (IBR) Guide and the Surveillance Guide. Other recent additions include a Guide to Managing Programs Using Predictive Measures and an Industry Practice Guide for Agile on EVM Programs.

At set contract value thresholds, the Office of Management and Budget (OMB), Federal Acquisition Regulations (FAR), and Defense Acquisition Regulations (DFAR) requires the government program offices to ensure their supplier’s program management system meets the intent of the Earned Value Management Systems (EVMS) of the EIA 748 standard. In some cases these systems must be validated by the Defense Contract Management Agency (DCMA) as being compliant with the EIA standard.  The NDIA continues to work with government and industry to drive the evolution of standards for Earned Value Management Systems implementation and acceptance in the United States and internationally.

Humphreys & Associates has been an active participant in the NDIA IPMD for more than 35 years. Three of our consultants, including the founder of the company, were part of the eight person committee that developed the EIA 748 Standard for EVMS. We also have three past chairs of the National Defense Industrial Association (NDIA) Integrated Program Management Systems Committee (IPMD) on our staff. Our consultants continue to be active participates in the working groups responsible for the system guides and the continuing improvement of the EVMS guidelines.

Humphreys & Associates is the industry leader in Earned Value Management Systems design, implementation and EVMS training.  You can learn more on the Humphreys & Associates website.

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