Benefits of an EVMS Self-Governance Process

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Contractors with a cognizant federal agency (CFA) approved or certified Earned Value Management System (EVMS) are expected to establish and execute an annual EVMS self-governance plan. Sometimes also called self-surveillance or self-assessment, the objective is the same. The contractor is responsible for establishing an internal process to ensure their EVMS, as implemented at the contract/project level, continues to:

  • Provide valid, reliable, and auditable information for visibility into technical, schedule, and cost progress with fact-based performance analysis. Project personnel have timely information about actual conditions, trends, and potential problems to implement effective corrective actions.
  • Maintain the integrity of the performance measurement baseline (PMB) for measuring completed work and to manage the remaining work.
  • Comply with the EIA-748 Standard for EVMS guidelines.

Equally important, the contractor is responsible for ensuring project personnel are:

  • Following the process and procedures described in their approved EVM System Description.
  • Establishing and maintaining quality schedule, cost, and risk/opportunity data.
  • Routinely using the EVMS (process, procedures, and tools) and EVM data to proactively manage their work effort.

Why is a self-governance process important?

With an established self-governance process and data-driven analytics, a contractor can objectively demonstrate to their customer that EVM and the use of EVM data is an integral part of their project management process. Establishing a culture of self-disclosure of issues and resolution ensures the EVMS is actively maintained, and project personnel understand the importance of their role in implementing the EVMS. Everyone must have confidence in the EVMS to provide timely, relevant, and actionable information to effectively manage and control projects.

An effective self-governance process provides the structure to routinely observe and assess how the EVMS is implemented on projects. This structured process documents what is assessed and how it is assessed using defined objective measures such as data quality metrics that can be analyzed over time to track the occurrence and resolution of issues.

What are the benefits of implementing a self-governance process?

There are a number of benefits to implementing a self-governance process for the contractor as well as the government customer.

The contractor’s management benefits from increased visibility into the “health” of the EVMS. Consistently verifying the system is implemented and used as intended instills confidence. They know they can depend on the EVMS to provide timely, reliable, and actionable information for visibility and control.

Routinely analyzing the results from the self-governance activities provides fact-based information a contractor can use to implement actions that improve the EVMS process and procedures, the means and methods project personnel use to implement the EVMS, or the training methods and content. With a structured and repeatable process in place, the contractor can:

  • Quickly identify and quantify process, people, or tool issues as well as the potential impact to meeting project objectives. Early identification of a problem often helps to mitigate the impact to the project.
  • Identify the root cause of the issue. Is it a recurring theme (a systemic issue) or a unique to a single project? This helps to determine the best way to resolve the issue.
  • Determine what actions are the most effective in mitigating the impact or resolving the root cause. Measuring and verifying outcomes helps to ensure the corrective action achieves the desired result.
  • Identify best in class practices that could be used on other projects. This is often overlooked as a positive outcome of the self-governance process that encourages continuous system improvements and innovation in project implementations.
  • Provide best practice guidance and support to encourage early correction or quick resolution of implementation issues. This helps to increase project personnel proficiency levels. Knowing structured fact-based self-governance assessments are conducted helps to reinforce the message that EVM practices are an integral part of managing projects.

It also builds confidence with the customer. Implementing a process of self-disclosure and corrective actions implemented demonstrates an on-going commitment to maintaining the EVMS. It also demonstrates the willingness to maintain open communications. The benefit of this approach is that it can help to:

  • Reduce the need for onsite government customer reviews or shorten the duration of a surveillance visit. When the contractor is providing regular information about their internal process to verify the health of their EVMS and internal corrective actions, it demonstrates the EVMS is being used as intended and remains compliant with the EIA-748 guidelines.
  • Minimize disruptions to project personnel. This is a direct result of reducing the need for customer reviews. Internal self-governance activities, system or tool improvements, or training can be scheduled to avoid impacting project personnel’s ability to accomplish project objectives.
  • Ensure long-term sustainability of the EVMS. An EVMS should be continually maintained to ensure process, procedures, and tools reflect current requirements. The goal should be to take advantage of opportunities to streamline procedures, improve the quality of the schedule and cost data, upgrade tools, and enable data integration/traceability to reduce the time and effort required to manage project work effort.

What are the characteristics of an effective self-governance process?

An effective self-governance process should be visible, structured, and endorsed by management. Key characteristics and features include:

  • Leadership engagement that encourages continuous improvement and a culture of compliance.
  • Encourages issue identification and tracking with timely closure and verifiable results.
  • A chartered authority structure with cross-organizational engagement that routinely interacts with leadership. This approach develops a broader base of internal expertise and experience.
  • A data-driven methodology to routinely assess system health using clearly defined and independently positioned oversight with a clear line to senior management.
  • Effective, consistent, and defined structured approach that is repeatable and sustainable.
  • Encourages improving project personnel skill levels using proven training  and mentoring techniques.
  • Transparency and means to collect feedback, both critical and praiseworthy.

Need help establishing a self-governance process? 

H&A earned value consultants often assist clients to create and implement a repeatable and sustainable self-governance process to verify their EVMS continues to support the EIA-748 guidelines as well as to assess how project personnel are implementing the EVMS. The objective is to establish a structured process to collect fact-based information useful for creating action plans to address identified deficiencies in the EVMS, how the EVMS is implemented, data quality, or the proficiency levels of project personnel. This structured process is also used to track action plans to closure and verify results.

An industry best practice is to include the EVMS self-governance or self-surveillance process in the EVM System Description along with other artifacts such as the EVMS self-governance charter. Contractors often use government customer surveillance artifacts such as DCMA or DOE automated or manual metrics as the basis to assess the quality of their schedule and cost data as part of their self-governance or self-surveillance process.

If you need help updating your EVM System Description to include a self-governance process, or need to create a self-governance plan, call us today at (714) 685-1730 to get started.

Benefits of an EVMS Self-Governance Process Read Post »

Maintaining a Credible Estimate at Completion (EAC)

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Issues with a contractor’s estimate at completion (EAC) process is a common Earned Value Management System (EVMS) surveillance finding H&A earned value consultants are frequently asked to help resolve. The EAC process can become a major issue when the government customer lacks confidence in the contractor’s EAC data.

Why does a credible EAC matter? 

EACs are important because they provide a projection of the cost at contract or project completion, which is also an estimate of total funds required by the customer. It matters because EACs represent real money. When the most likely EAC exceeds the negotiated contract cost, the contractor’s profit margins may be at risk. It also creates a problem for the customer when the most likely EAC exceeds the funding limits. The customer may either need to secure additional funding or modify the work scope. No one likes cost growth surprises.

Figure 1 illustrates comparing the funding limits with the range of contractor’s EACs to verify they are within the bounds of the funding available to complete the scope of work.

Graph Showing Contractor’s Management EACs with Funding Profile
Figure 1: Contractor’s Management EACs with Funding Profile

What determines whether an EAC is credible? 

A credible EAC reflects the cumulative to date actual costs of work performed (ACWP) (costs the contractor has already incurred) plus the current estimate to complete (ETC). The ETC must provide a realistic estimate of what is required to complete the remaining authorized work and represents the time phased estimate of future funds required.

EACs should be based on performance to date, actual costs to date, projections of future performance, risks and opportunities, economic escalation, expected direct and indirect rates, and material commitments. As illustrated in Figure 1, a project manager should routinely evaluate their project’s ACWP, ETC, and EAC along with the funding profile to verify amounts expended and committed are within the parameters of available contract funds. 

What project control practices help to ensure EACs are realistic?

Three recommended best practices H&A earned value consultants either help implement or have observed that ensure the EAC data are credible include:

  1. Actively maintain the bottom up ETC data every reporting cycle. This starts with updating the current schedule resource loaded activities based on performance to date and the latest planning (timing and resource requirements) for work in progress as well as upcoming work effort. This becomes the basis for updating the time phased cost estimate for work in progress that is added to the cumulative to date actual costs or the cost estimate for future work/planning packages. The current schedule and time phased cost estimate should be in alignment. When data is routinely maintained, it minimizes the time required to update it and capture useful information. The control account managers (CAMs) have the basis to substantiate their estimates as well as relevant data they can use to analyze and take action to address a significant variance at completion (VAC).
  2. Actively monitor project EACs from the top down. Project managers that actively maintain a range of data driven EACs (best case, most likely, and worst case) are better prepared to verify the bottom up EACs are realistic, handle realized risks, and prepare for emerging risks. They routinely incorporate metrics such as comparing the Cost Performance Index (CPI) to the To Complete Performance Index (TCPI) to test the realism of the EAC. They can demonstrate their EACs are credible with backup data, rationale, and narratives they provide to management as well as the customer. 
  3. Maintain open communications at all levels of management, subcontractors, and the customer. As a result, project personnel can quickly handle issues or project changes. The project manager is often the main conduit to handle impacts to their project’s EAC such as when corporate management changes direct or indirect rates, changes in resource availability, a spike in commodity prices, or the customer modifies the scope of work or funding.

What are some things to avoid?

H&A earned value consultants often observe practices that negate the purpose and value of maintaining the ETC and EAC data. Issues with the EAC process are often captured in the government customer’s EVMS corrective action requests (CARs). The CARs frequently point out ad-hoc processes or corporate culture issues. Examples:

  1. Management provides a target EAC number the CAMs must match. This approach increases the likelihood the ETC data are unrealistic. There may be a valid reason for this directive as a management what-if exercise. When done as a routine management strategy, it diminishes the value of the ETC data to manage the project’s remaining work and prevent financial surprises. The CAMs should be in a position where they can substantiate their schedule timeline, resource requirements, and cost estimate to complete the remaining work. The project manager should be in a position where they can verify the bottom up ETC/EAC data to establish a level of confidence in their project level EACs they provide to management as well as the customer.
  2. Project personnel take the path of least resistance. This is often a result of a lack of direction or an established process. They either do not create the ETC data or maintain it on a routine basis. A typical approach is to set a cost management tool option where the EAC is static; the CAM may manually update the EAC number once a quarter. The ETC data has limited to no value. This usually surfaces as a major issue when the contractor must provide an Integrated Program Management Report (IPMR)  Format 7 (time phased history and forecast data), or the Integrated Program Management Data and Analysis Report (IPMDAR) Contract Performance Dataset (CPD) to the customer. The customer quickly discovers the ETC data is lacking for their own analysis.
  3. Schedule and cost are created/maintained separately. This often occurs when the schedule and cost tools are not integrated for the duration of the project. A good deal of effort may go into ensuring the schedule and cost data are in alignment to establish the performance measurement baseline (PMB). The integrated master schedule (IMS) resource loaded activities may be used as the basis for the time phased budget baseline in the cost tool. However, the ETC data in the current schedule may not exist or actively maintained. Project personnel only maintain the ETC data in the cost tool and fail to verify it aligns with the current schedule activities (timing) and resource requirements. Once again, personnel are often lacking an established best practice EAC process.

Pay Attention to Your EAC Process

The ETC and EAC data are just as important as the PMB budget plan because it represents real money. As discussed in the blog How Integrated Baseline Reviews (IBRs) Contribute to Project Success, the goal of the IBR is to verify an executable PMB has been established for the entire contractual scope of work. Similarly, the goal of maintaining a credible ETC and EAC is to verify an executable plan is being regularly updated to accomplish the remaining scope of work within the contract’s schedule, cost, and funding targets. The customer must have confidence in the contractor’s ability to deliver and meet the remaining contract objectives.

The best way to avoid an EAC process CAR is to ensure you have an established process personnel follow, and they know how to use the schedule and cost tools to consistently maintain quality ETC and EAC data. H&A earned value consultants have worked with numerous clients to design or enhance their EAC process. H&A also offers EVMS training workshops that include content on how to develop a realistic EAC. Regular EVMS training always helps to reinforce best practices. Call us today at (714) 685-1730 to get started.

Maintaining a Credible Estimate at Completion (EAC) Read Post »

Charts and EVMS Health

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Project management is a complex and multi-faceted field that requires a great deal of attention to detail. One of the most important aspects of project management is being able to accurately assess the status and health of a project at any given time. This is where visual representations come in.

Visual Aids

One of the most effective ways to evaluate the status of a project is through the use of charts and graphs. These visual aids allow top management to quickly and easily assess whether a project is getting better or worse, and whether the estimated completion costs (EACs) are achievable.

Raising Questions

In the case of the chart shown in the video, the cost line is trending downwards, which is a cause for concern. This raises the question of whether this negative trend can be reversed to meet even the most pessimistic EAC set by the customer’s program manager.

Management and Customers

While the chart shown in the video is from a program that was ultimately canceled, it serves as an important reminder of the crucial role that visual representations play in project management. These types of charts and graphs are commonly used in briefs presented to top management and customers, as they provide a clear and concise snapshot of the project’s status.

More EVMS Training

Take your EVMS training to the next level with our online course that is based on Humphreys & Associates’ highly regarded three-day EVMS workshop. We also offer a version of this same EVM training course customized for Department Of Defense (DOD) specific EVM requirements, as well as one designed specifically toward NASA’s EVM requirements!

— Purchase the DOD Course —
EVMS DOD Virtual Learning Lab

— Purchase the DOE Version of this Course —
EVMS DOE Virtual Learning Lab

— Purchase the NASA Version of this Course —
EVMS NASA Virtual Learning Lab

EVMS Document Matrix

EVMS Document Matrix

Not sure what the different requirements are between the DOE and NASA? Can’t remember if Cost and Software Data Reporting (CSDR) is required for an NSA contract? Check out our easy to read Earned Value Management Systems Document Matrix

All Online Courses

EVM (Earned Value Management) is a comprehensive approach to project management that covers all aspects of a project, from start to finish. Humphreys and Associates offers EVM courses that will provide you with the necessary skills and knowledge to manage EVM projects of all sizes effectively.

Our EVM courses are suitable for both beginners and professionals who want to improve their skills. We offer a range of course options, including online self-paced and live virtual instructor-led courses, to accommodate different schedules and learning styles. Our instructors are seasoned EVM professionals who will guide you through the process, from setting up your EVM system to closing out your project.

At Humphreys and Associates, you can trust in the quality of our EVM training. Our online EVM courses are budget-friendly and flexible, allowing you to obtain the education you need without any stress. Plus, our courses are designed to be completed in a short time, so you can quickly gain the knowledge you need.

Enroll in our EVM courses today and start enhancing your project management skills.

All Online Courses Available from Humphreys & Associates

Upcoming Public EVMS Workshops

EVM training sessions are offered throughout the year by H&A. EVMS, advanced Earned Value Management techniques, and project scheduling are all covered during these frequent public EVM workshops. These earned value education courses are ideal for anybody wanting to increase their understanding of or application of EVMS or scheduling. Our training programs are suited for individuals with various degrees.

Public EVMS Workshops are offered either in person or online. View our Upcoming EVM Workshop Schedule to find one that best suits your schedule and location.

Upcoming Earned Value Training Public Workshops

Charts and EVMS Health Read Post »

Contract Performance Example – Cost Variance Trend

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Monitoring the cost of a project is crucial in order to ensure that it stays within budget and is completed on time. One way to track this is by analyzing the cost variance, or the difference between the actual cost of the project and the budgeted cost. In this video, we will examine a specific example of a cost variance trend that has raised red flags and is causing concern. As the project nears its estimated completion date, the cost variance has dipped into negative territory and appears to be worsening. The chart in this video also provides a visual comparison of variances at completion to the current cost variance.

The cost variance in this video is a significant trend that has crossed into negative territory and appears to be decreasing even further past year 4, which is the estimated completion date. With so little time remaining, the negative cost variance trend is obviously a cause for concern. The chart in the video also shows visually the comparison of variances at completion to the current cost variance that we mentioned in the previous chart in the vidoe.

More EVMS Training

Take your EVMS training to the next level with our online course that is based on Humphreys & Associates’ highly regarded three-day EVMS workshop. We also offer a version of this same EVM training course customized for Department Of Defense (DOD) specific EVM requirements, as well as one designed specifically toward NASA’s EVM requirements!

— Purchase the DOD Course —
EVMS DOD Virtual Learning Lab

— Purchase the DOE Version of this Course —
EVMS DOE Virtual Learning Lab

— Purchase the NASA Version of this Course —
EVMS NASA Virtual Learning Lab

EVMS Document Matrix

EVMS Document Matrix

Not sure what the different requirements are between the DOE and NASA? Can’t remember if Cost and Software Data Reporting (CSDR) is required for an NSA contract? Check out our easy to read Earned Value Management Systems Document Matrix

All Online Courses

EVMS is a comprehensive approach to project management that encompasses all aspects of a project, from inception to completion. EVMS courses from Humphreys and Associates will give you the skills and knowledge you need to successfully manage EVM projects of all sizes.

Our EVMS courses are designed for both professionals who are new to EVM and those who are looking to brush up on their skills. We offer a variety of course types, from online self-paced courses to live virtual instructor-led courses. No matter what your schedule or learning style, we have a course that will fit your needs.

Plus, our instructors are experienced EVM professionals who will guide you through every step of the process, from setting up your EVMS system to closing out your project. With Humphreys and Associates, you can be confident that you’re getting the best EVMS training available.

Our online EVMS courses are affordable and convenient, so you can get the education you need without any hassle. Plus, our courses are designed to help you learn everything you need to know about EVMS in a short amount of time.

Get started today and find the perfect online EVMS course for you.

All Online Courses Available from Humphreys & Associates

Upcoming Public EVMS Workshops

EVM training sessions are offered throughout the year by H&A. EVMS, advanced Earned Value Management techniques, and project scheduling are all covered during these frequent public EVM workshops. These earned value education courses are ideal for anybody wanting to increase their understanding of or application of EVMS or scheduling. Our training programs are suited for individuals with various degrees.

Public EVMS Workshops are offered either in person or online. View our Upcoming EVM Workshop Schedule to find one that best suits your schedule and location.

Upcoming Earned Value Training Public Workshops

Contract Performance Example – Cost Variance Trend Read Post »

Creating a Scalable Earned Value Management System (EVMS)

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Creating a scalable Earned Value Management System (EVMS) is a topic H&A earned value consultants frequently encounter while assisting clients implementing an EVMS. These clients are often responding to a contractual EVMS requirement and are using it as the impetus to improve their project control system. A common theme is they would like to leverage the EVMS to win more contracts as well as increase project visibility and control to prevent cost growth surprises that impact their profit margins. They consider having an EVMS in place to be a competitive advantage.

Depending on the company size and their line of business, they typically have some project controls in place. They also realize they have gaps and processes are ad-hoc. They lack a standard repeatable process project personnel can follow. And that’s where H&A earned value consultants play a role – to help the client focus on the basics and simplify the process of implementing an EVMS that can be scaled for all types of projects.

What is a scalable EVMS?

A scalable EVMS is a flexible project control system that incorporates earned value management (EVM) practices for all projects. The level of data detail, range, and rigor reflect the type or scope of work, size, duration, complexity, risk, or contractual requirements. This is illustrated in Figure 1.

Scalable Earned Value Management System Infographic - the image shows how the size of a project relates to the level of detail, amount of EVM practices and rigor we are recommending.
Figure 1 – The type of project determines the level of data detail, range, and rigor of EVM practices.

Establishing a Common Base for All Projects

The foundation for a scalable EVMS is to establish a common project control system that incorporates EVM practices. Identify which practices apply to all projects and which practices apply based on the scope of work and risk as well as the level of data detail needed for management visibility and control. Identify and quantify project attributes so it is clear what is expected.

Use this information to create guidance for project personnel so they know what is required for their project. Include this guidance in the EVM System Description.

What are the steps to create a scalable EVMS?

Step 1 – Determine the project categories.

These will be specific to your business environment. The goal is to establish a small set of clearly defined project categories as illustrated in Figure 1. Identify measurable project attributes so a project manager can easily determine their project category. An example is illustrated below.

Project AttributeSmall, low risk projectsIn-between projectsLarge, high-risk projects
Scope of workRoutine, repeatable tasks. Well defined.Mix of known and unknowns. Some requirements are well defined, others likely to evolve.High percentage of unknowns. Near term requirements are defined. TBD requirements are progressively defined.
Size (contract value is a typical measure)< $20M= or > $20M and < $50M= or > $50M
Duration< 18 months> 18 months> 18 months
Overall risk assessment, threat of schedule slip, cost growth or lower profit marginLowModerateHigh
Resource availability, skill set requirementsIn-house resources are available, able to match demandIn-house resources are available, manageable number of specialized resources that may require out-sourcing.Some in-house resources available. Must hire additional resources with specialized skill sets or out-source.
Percentage (or value range) of subcontract work effort< 30%= or > 30% and < 50%= or > 50%
EVMS FAR or DFARS clause on contract, reporting DIDNonePotential for IPMR or IPMDAR DID deliverableIncluded in contract, IPMR or IPMDAR DID deliverable

Some contractors rank or apply a weight to the attributes useful for determining the level of data detail, range, and rigor of EVMS practices required. For example, the overall risk assessment and the scope of work may rank higher than other attributes. Step 2 builds on the project categories identified in Step 1.

Step 2 – Identify the level of data detail and EVM practices that apply.

This will be specific to your EVMS, EVM System Description, and how the content is organized. Include use notes to identify practices that may not apply or what can be scaled for the project category. A simple example is illustrated below. This example assumes core EVM practices are followed for all projects such as using a work breakdown structure (WBS) to decompose the scope of work.

EVMS ComponentsSmall, low risk projectsIn-between projectsLarge, high-risk projects
WBS, WBS Dictionary, project organization, control account levelHigh level. Control accounts are larger and longer duration.Scale to match scope of work and riskLower level of detail. Depth dependent on scope of work and risk.
Work authorizationSimple workflow form and process with one or two approval levels.Detailed element of cost workflow form, additional process steps, approval levels.
Summary level planning packagesUsually not applicable.Used when appropriate for scope of work.
Work packagesLarger and longer duration. Fewer milestones, more percent complete earned value techniques (EVTs).Shorter duration. Majority of discrete EVTs use milestones and quantifiable backup data (QBDs) to objectively measure work completed.
Planning packagesOptional use.Routinely used.
Rolling wave planningUsually not applicable.Routinely used.
Network schedulesHigh level.Detailed.
Schedule risk assessment (SRA)Usually not necessary.Required. Routinely performed.
Variance thresholdsHigh level or simple.Reflect contract or project manager requirements, scope of work, or risk level.
Baseline change requests (BCRs)High level, simple log.Formal workflow process, forms, and logs to document changes and rationale. Approval levels depend on scope of the change.
Change control board (CCB)Not used. Project manager approves all changes.Required.
Risk and opportunity (R&O) managementHigh level assessment. May use simple R&O log.Formal process to assess, R&O register maintained.
Annual EVMS self-surveillanceNot applicable.Required when EVMS on contract.

Step 3 – Establish scalable templates or artifacts.

To complement the EVM System Description, provide a set of scaled templates or artifacts for project personnel. For example, a project manager for a small low risk project would select a simple work authorization or BCR form and workflow process, report templates, and logs to implement on their project. Provide a separate set of templates and artifacts for large high-risk projects that require additional procedures, data detail, workflow approval levels, forms, reports, and change tracking that can support an EVMS compliance or surveillance review.

Provide training on how to use the templates and artifacts. This helps to establish a standard repeatable process with a base set of artifacts. It also promotes a more disciplined process regardless of the type of project as personnel have a better understanding of what is required.

Another best practice is to use project directives to document the level of data detail, range, and rigor of the EVM practices implemented on a project. These provide clear direction for all project personnel on how to implement the EVMS. Project managers are often responsible for producing these. Create a template for each project category so they can easily document and communicate their management approach.

What are the benefits of establishing a scalable EVMS?

Establishing a common repeatable process along with a standard framework for organizing project scope of work, schedule, budget, and performance data enables project portfolio analysis to assess profitability. It also provides the basis to capture historical data a proposal team can use to substantiate their cost estimates. A common process eliminates the need to maintain different project control systems. It also makes it easier to move personnel between projects and increase the project control maturity level as everyone is following the same core processes – just the level of data detail or rigor of EVM practices may be different.

H&A earned value consultants have worked with numerous clients to design, implement, and maintain an EVMS. Scalability is a feature that can be designed into an EVMS and EVM System Description whether new or existing. Call us today at (714) 685-1730 to get started.

Creating a Scalable Earned Value Management System (EVMS) Read Post »

How Integrated Baseline Reviews (IBRs) Contribute to Project Success

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What is an Integrated Baseline Review or IBR?

An IBR is a formal review of a contractor’s performance measurement baseline (PMB) a customer conducts shortly after contract award or other project events to gain confidence in the contractor’s ability to deliver and meet contract objectives. Conducting an IBR helps to assure there is mutual agreement on the scope of work, schedule, resource requirements, and budget to meet the customer’s needs. It also assures there is a mutual understanding of the project’s risks and opportunities as well as how they will be managed.

Conducting an IBR is often a contractual requirement along with the requirement to implement an earned value management system (EVMS). Contractual documents specify the time frame for when the IBR must occur after contract award. This is typically within 90 to 180 calendar days. A customer may also conduct an IBR at critical milestones, funding gates, when transitioning to another project phase, or when significant changes are incorporated into a PMB.

What an IBR is Not

An IBR is not an EVMS compliance review. The intent of an IBR is not to devolve into a review of the contractor’s EVMS and whether it complies with the EIA-748 Standard for EVMS guidelines. That said, the contractor must be able to demonstrate they have a disciplined project control system in place. The contractor should be able to demonstrate to the customer that the project’s scope of work is properly planned, scheduled, resourced, budgeted, authorized, and managed using their project control system.

What are the benefits of conducting an IBR?

Conducting an IBR contributes to successful project execution because it helps to ensure a realistic PMB has been established.

IBRs provide the opportunity for the contractor and customer to verify:

  • There is shared understanding of the scope of work, technical requirements, and accomplishment criteria. As the work breakdown structure (WBS) is decomposed into manageable product-orientated work elements, it provides a common frame of reference for communication between the contractor and customer. The WBS dictionary should capture the technical requirements that must be met as well as expected deliverables and outcomes. The contractor must have a clear understanding of customer’s needs, assumptions, and expectations to be able to create a realistic schedule and budget plan. The IBR provides the opportunity for the contractor to verify the scope of work details with the customer before the project execution phase begins. In instances where the technical requirements evolve over time as work progresses, rolling wave planning is often used to detail plan the current work effort with more macro planning for future work effort to ensure the entire scope of work is included.
  • An executable PMB has been established for the entire contractual scope of work. The PMB should accurately reflect how the contractor plans to accomplish the work within the contractual period of performance and negotiated contract cost. The customer’s funding profile may also determine the timing of activities and when resources are required. The schedule and budget should be in alignment. The budget time phasing should reflect the schedule activities and resource requirements. It is also useful to verify appropriate earned value methods and techniques have been selected for the work packages to assure objective and meaningful project performance can be measured and reported as work progresses.
  • The required resources have been identified and assigned to the project. This contributes to producing an executable schedule and budget plan. The staffing plan should accurately reflect the sequence of work and skill mix as well as resource availability and demand to accomplish the project’s objectives. Flat loading labor hours may not accurately reflect common challenges of ramping up resources after contract award or the availability of critical resources for specific tasks. Other resource factors include the timing or availability of critical or high value materials as well as subcontractors responsible for performing work or providing services.
  • Project technical, schedule, and cost risks/opportunities have been identified and assessed. This also contributes to producing an executable schedule and budget plan. Where possible, risk mitigation actions have been incorporated into the PMB to reduce known risks to an acceptable level. For example, the timing or duration of activities as well as resource requirements may need to be adjusted. Schedule margin activities may be incorporated into the integrated master schedule (IMS). It also provides fact-based information to determine the amount of management reserve set aside to handle realized risks. This is often the most valuable component of the IBR. It is essential all parties have an understanding of the identified risks or opportunities, potential impact if they are realized, and risk mitigation or opportunity capture plans.

Why it is important to verify these details during an IBR?

A realistic schedule and budget plan helps to prevent cost growth surprises because of technical, schedule, or budget challenges. The better the up-front planning, the less the likelihood of cost growth during project execution. It also increases credibility with the customer. The contractor can demonstrate their ability to deliver to the customer needs and manage the work effectively.

Benefits of Preparing for an IBR

Establishing a project’s PMB is a significant and often formal event as it signals the transition from the planning to execution phase. It represents the culmination of the integrated planning, scheduling, budgeting, work authorization, and risk/opportunity management processes.

A common best practice is to conduct an internal baseline review regardless of whether a formal IBR with the customer is required prior to setting the PMB. Implementing a standard process to conduct an internal review of the complete set of project data and artifacts with the project personnel assures an executable schedule and budget plan has been established to accomplish the contractual scope of work within the contractual period of performance and negotiated contract cost in alignment with the contract’s funding profile.

These internal reviews help to ensure there is a common understanding of the scope of work, major project events, planned sequence of work, schedule of deliverables, resource requirements, time phased budget, funding profile, and project risks/opportunities. It also provides an opportunity to verify the quality of the integrated schedule and cost data as well as top down and bottom up traceability. 

Need help preparing for an IBR?

A common earned value consulting service H&A provides is conducting a mock IBR with project personnel to prepare for the formal customer IBR. The objective is to conduct a thorough assessment of the project’s PMB to verify it reflects the entire contractual scope of work and technical requirements as well as identified technical, schedule, cost, or resource risks that may impact the ability to execute the work as planned. This provides an opportunity to correct any issues with the PMB prior to the IBR event.

Another standard earned value consulting service we offer is conducting IBR training for project team members. H&A earned value consultants can help you to establish a standard internal process to verify an executable PMB is in place for a given project. Once again, the objective is to prevent cost growth surprises and management is aware of the project’s risks and opportunities that may impact profit margins. 

Call us today at (714) 685-1730 to get started. 

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