NASA Procedures and Guidelines
This Document is Obsolete and Is No Longer Used. Check the NODIS Library to access the current version: http://nodis3.gsfc.nasa.gov
NPR 9501.3 Eff. Date: November 24, 2002 Cancellation Date: March 31, 2006	Earned Value Management Implementation on NASA Contracts
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APPENDIX B: The EVM Analysis Process

The steps described in this appendix are intended to assist the project analyst in understanding some of the monthly activities surrounding the EVM analysis process. The level of the analyst's activity is dependent upon many situations. The stage of the project, the size of the WBS, the condition of the contractor's performance, the type of contract, or the number of CPR's an analyst has to review monthly, all affect the analyst's capability to perform any detailed analysis. One solution would be to do an in-depth review each quarter, alternating between different contractor CPR's.

Step 1. Update the computer database. Evaluate graphs, trends, workforce usage, contract changes, and Management Reserve (MR) and Undistributed Budget (UB) usage. Areas that may trigger a more detailed investigation include the following:

a. Dramatic decreases in MR,

b. Excessive internal replanning,

c. Increases to WBS elements which are not related to contract change activity,

d. Dramatic changes to the latest revised estimate,

e. Depletion of MR into WBS or functional elements having problems, and

f. Lingering UB.

Step 2. Discuss the evaluations with the NASA project functional experts, i.e., Engineering, Manufacturing, System Test, on the evaluation of the contractor's performance observed during any in-plant visits or discussions with the contractor. Such areas/items as engineering releases, drawing status, line-of-balance manufacturing status, and results of other functional reviews (like Production Readiness Reviews, Preliminary Design Review, Critical Design Reviews), will yield a great deal of information which can be related to the cost/schedule performance. The relationship will not be dollar for dollar, or day for day, but it will be sufficient to provide an indication of trend direction and highlight areas of concern. When obtaining information from the functional experts, always bear in mind the cost/schedule/workforce trends, Estimates At Completions (EAC), schedule status, and an understanding of the risk remaining.

Step 3. Form a list of questions to ask the contractor at the next in-plant management review. When the management review is to be held at the contractor's facility, coordinate with the contractor and the Defense Contract Management Agency (DCMA) for discussions with any Cost Account Manager to further investigate areas of concern/interest, as necessary. Questions may also be directed to the contractor representative.

Step 4. Finalize Analysis and generate the project's EAC.

Step 5. Integrate analysis work within the overall project management process. The EAC has to relate to funding requirements. This is achieved by adding to the project EAC any authorized/potential contract changes not currently in the CPR baseline data. Time phase the EAC for fiscal year requirements identification. Changes not yet negotiated should be factored down to reflect anticipated negotiations. Contract Change Proposals and Task Change Proposals are used to propose changes to contractual requirements other than those contained in specifications and engineering drawings, e.g., SOW task, test plans, or other contractual documents such as a configuration management plan. Engineering Change Proposals are used to propose changes to specifications and engineering drawings.

Step 6. Frequent contacts with the DCMA EVM-FP will assist the analyst in his/her own analysis of the data. A DCMA analyst does surveillance of the contractor's earned value management system, as applied to all Government contracts within the facility. The program/project analyst should be aware of any contractor system deficiencies that could have potential impact to the project. Specific program/project DCMA surveillance support will be as defined in the Letter of Delegation or the Memorandum of Agreement between the NASA Project Office and the DCMA.

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