NASA/SP-2019-3704 Earned Value Management (EVM) System Description National Aeronautics and Space Administration November 1, 2019 Electronic copies are available from: NASA STI Program: https://wwww.sti.nasa.gov NASA STI Information Desk: [email protected]/ (757) 864-9658 Write to: NASA STI Information Desk Mail Stop 148 NASA Langley Research Center Hampton, VA 23681-2199 NASA Engineering Network (NEN) at https://nen.nasa.gov/web/pm/ (inside the NASA firewall only). OCFO-SID EVM Homepage at https://community.max.gov/dis- play/NASA/Earned+Value+Management+HOMEPAGE (inside the NASA firewall only) RECORD OF REVISIONS R E DESCRIPTION DATE V Basic Issue November 2013 1 Incorporate IPMR, ANSI/EIA-748 reference change March 2016 2 Added EVM reciprocity, scalability and new EVM $250M threshold January 2018 Added SMD Class-D EVMS Deviation, revised Intra-Agency Work Agree- ment EVM requirements, updated links, updated NASA EVMS requirements 3 September 2019 thresholds chart, deleted special publication numbers from references, cor- rected Data Requirements Description acronym, minor edits, etc. NASA EVM System Description ii ii TABLE OF CONTENTS P.1 Purpose ............................................................................................................ vi P.2 Applicability ..................................................................................................... vii P.3 Authority .......................................................................................................... vii P.4 References ...................................................................................................... vii GUIDELINE CROSS-REFERENCE MATRIX ................................................................. ix INTRODUCTION ....................................................................................................... xxviii 1 ORGANIZATION .................................................................................................... 1-1 1.1 Parameters .................................................................................................... 1-1 1.2 Organizing Project Work Process .................................................................. 1-1 1.3 Organization Procedure ................................................................................. 1-3 1.4 Organizing Project Work ................................................................................ 1-4 1.5 Integrating the Work and the Organization .................................................. 1-12 1.6 Key Management Positions or Roles ........................................................... 1-15 1.7 Summary of Responsibilities ....................................................................... 1-16 2 SCHEDULING ........................................................................................................ 2-1 2.1 Parameters .................................................................................................... 2-1 2.2 Scheduling Methodology ............................................................................... 2-1 2.3 Scheduling Process ....................................................................................... 2-2 2.4 Schedule Development ............................................................................... 2-10 2.5 Integration of Contractor/Subcontractor Schedule Data .............................. 2-25 2.6 Schedule Margin.......................................................................................... 2-25 2.7 Schedule Assessment and Analysis ............................................................ 2-26 2.8 IMS Baseline Considerations ...................................................................... 2-28 2.9 Schedule Baseline Maintenance ................................................................. 2-28 2.10 Schedule Status ......................................................................................... 2-29 2.11 Summary of Responsibilities ...................................................................... 2-30 3 WORK/BUDGET AUTHORIZATION ...................................................................... 3-1 3.1 Work Delegation and Authorization ............................................................... 3-1 3.2 Cost Planning and Budgeting ...................................................................... 3-13 4 ACCOUNTING ........................................................................................................ 4-1 4.1 General .......................................................................................................... 4-1 4.2 Accounting Procedure ................................................................................... 4-3 4.3 Source Systems and Other Applications ....................................................... 4-3 4.4 Interface Program BW to Cost Tool ............................................................... 4-5 4.5 Cost Transfers and Other Retroactive Adjustments ...................................... 4-5 4.6 Recording Direct Costs .................................................................................. 4-5 4.7 Indirect Costs ................................................................................................ 4-6 4.8 Expenditure Items.......................................................................................... 4-6 4.9 Level of Costs Reporting in the Core Financial System and the EVM Tool ... 4-7 4.10 Summarizing Direct Costs to the WBS ........................................................ 4-7 4.11 Summarizing Direct Costs to the Organization ............................................ 4-8 4.12 Using Estimated Actuals .............................................................................. 4-8 4.13 Monthly Project Accounting Reconciliation .................................................. 4-9 NASA EVM System Description iii iii 4.14 Unit Cost, Equivalent Unit Cost and Lot Cost .............................................. 4-9 5 INDIRECT COST MANAGEMENT ......................................................................... 5-1 5.1 Indirect Cost Management Process............................................................... 5-1 5.2 Indirect Costs Procedure ............................................................................... 5-3 5.3 Identifying Indirect Cost ................................................................................. 5-3 5.4 Establishing Indirect Budgets ........................................................................ 5-3 5.5 Recording Indirect Costs ............................................................................... 5-4 5.6 Analyze and evaluate variances caused by indirect costs ............................. 5-4 5.7 Analyze base and rate variances for contracted services accounts .............. 5-4 5.8 Development of Revised Cost Estimates-at-Completion ............................... 5-4 6 MANAGERIAL ANALYSIS ...................................................................................... 6-1 6.1 Managerial Analysis ...................................................................................... 6-1 6.2 Estimates at Completion .............................................................................. 6-14 7 CHANGE MANAGEMENT ...................................................................................... 7-1 7.1 Parameters .................................................................................................... 7-1 7.2 Replanning Considerations ........................................................................... 7-2 7.3 Change Management (External Changes) Process ...................................... 7-3 7.4 Change Management (Internal Changes) ..................................................... 7-8 7.5 Formal Reprogramming ............................................................................... 7-13 7.6 Schedule Change Control ........................................................................... 7-14 7.7 Rebaselining versus Replanning ................................................................. 7-14 7.8 Documentation ............................................................................................ 7-15 7.9 Summary of Responsibilities ....................................................................... 7-18 8 MATERIAL MANAGEMENT ................................................................................... 8-1 8.1 Parameters .................................................................................................... 8-1 8.2 Material Management Process ...................................................................... 8-1 8.3 Material Management Procedure .................................................................. 8-3 8.4 Material .......................................................................................................... 8-5 8.5 Managing Material ......................................................................................... 8-6 8.6 Material Estimating ........................................................................................ 8-7 8.7 Material Planning ........................................................................................... 8-7 8.8 Material Performance Measurement ............................................................. 8-8 8.9 Material Actual Cost ...................................................................................... 8-9 8.10 Material Variances ....................................................................................