NASA Procedures and Guidelines
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NPR 9501.3 Eff. Date: November 24, 2002 Cancellation Date: March 31, 2006	Earned Value Management Implementation on NASA Contracts
| TOC | Preface | Chapter1 | Chapter2 | Chapter3 | Chapter4 | Chapter5 | Chapter6 | Appendix_a | Appendix_b | ALL |

CHAPTER 4. Earned Value Management Precontract Activities

4.1 Precontract Activities

4.1.1 Part II, Section 2, of the EVMIG contains guidance in the development of the solicitation for significant contracts. For contracts requiring Modified Cost Performance Reporting (MCPR), chapter 2 of the C/SSR Joint Guide provides for an understanding of the basics of establishing and implementing a modified cost performance reporting approach to EVM. Historically, problems identified during the implementation process are directly related to the failure to establish an adequate EVM requirement definition in the solicitation. Example contract Data Requirements Descriptions (DRD), provided in Appendix A of this procedure, are suggested contract wording and may be augmented or tailored to meet Center or individual project needs.

4.1.2 On contracts defined in NPD 9501.3A as significant, use the NASA FAR Supplement solicitation provision at 1852.242-74 entitled "Notice of Earned Value Management System" in solicitations and use the NASA FAR Supplement clause at 1852.242-75 entitled "Earned Value Management Systems" in solicitations and contracts. An example of a contract DRD for EVMS description (criteria) is provided as Appendix A.1.

4.1.3 On smaller contracts defined in NPD 9501.3A as requiring a Modified Cost Performance Report (MCPR), use the NASA FAR Supplement solicitation provision 1852.242-77 entitled "Modified Cost Performance Plans" in solicitations, and use the clause 1852.242-76 entitled "Modified Cost Performance Report" in the solicitation and contract. An example of a contract DRD for EVMS description (modified criteria-based) is provided as Appendix A.2.

4.1.4 The EVMFP shall provide guidance during the precontractual activities to ensure that the Request For Proposal (RFP) and the awarded contract contain the appropriate clauses, metrics, and reporting requirements for the procurement.

4.2 Contract Reporting Requirements

The Cost Performance Report (CPR) is used by the contractor and provides the project with monthly cost, schedule, and technical information. The contract DRD provides contractor guidance for the preparation and submission of the CPR, reporting frequency, distribution, and specific project tailoring instructions. An example of a contract DRD for the CPR with formats 1-5 (for significant contract) is provided in Appendix A.3. Guidelines in the tailoring of the CPR are provided in the EVMIG, section 2-4.e. An example of a contract DRD for the MCPR with formats 1, 3, and 5 is provided as Appendix A.4.

4.3 Contract Work Breakdown Structure (WBS)

The reporting requirements for the project shall be consistent with the contract WBS. That is, the reporting of progress, performance, and engineering evaluations as well as financial data and variance analysis, must be based on the contract WBS. An example of a contract DRD for the WBS and WBS dictionary is provided as Appendix A.5.

4.4 Schedule Requirements

To achieve a truly integrated management control system, a Project Manager shall ensure that the solicitation requirements explicitly define logic network schedule requirements. An example contract DRD for project schedules is provided as Appendix A.6.

4.5 Technical Performance Requirements

When technical performance requirements are used, appropriate and relevant metrics to be measured must be defined in the solicitation. An example contract DRD for Technical Performance Reports is provided as Appendix A.7.

4.6 EVM Links to Risk Management

Throughout the execution of the contract, the Project Manager shall ensure that the results of all analysis based on EVM are linked to the Risk Management Plan of the Project (as applicable). Any cost and/or schedule risks being managed by the Project Manger should rely on the results of EVM analysis to track, manage, and mitigate the risks.

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