Performance-Based Earned Value
Program Management Improvement Accountability Act
PMIAA includes Section 2, Project Management. It adds additional functions to the Office of
Management and Budget (OMB) Deputy Director for Management. The new requirements
include Program and Project Management.
Sec. 2 Excerpts:
‘‘(A) adopt government-wide standards, policies, and guidelines for program and project
management for executive agencies;
‘‘(B) oversee implementation of program and project management for the standards, policies,
and guidelines established under subparagraph (A);
‘‘(C) chair the Program Management Policy Council established under section 1126(b);
‘‘(D) establish standards and policies for executive agencies, consistent with widely accepted
standards for program and project management planning and delivery;
‘‘(E) engage with the private sector to identify best practices in program and project
management that would improve Federal program and project management;
‘‘(H) establish a 5-year strategic plan for program and project management.
Project Management Body of Knowledge®
The Project Management Institute (PMI) Project Management Body of Knowledge®
(PMBOK® Guide) contains an ANSI standard (ANSI/PMI 99-001-2013). PMBOK® Guide
should be considered to comply with the objectives of the PMIAA and to replace EIA-748,
the Earned Value Management System (EVMS) Standard. A rationale to discard EVMS was
first provided in my article in Defense AT&L, “Earned Value Management Acquisition Reform”
(Nov.-Dec. 2010). It is recommended that DoD consider the article, and the white paper
described below, "DoD Acquisition Reform: EVMS-lite to Program/Project Management,"
when developing the required standards, policies, and guidelines. PMBOK® Guide is
used by project management practitioners world-wide and will provide program and project
Pertinent excerpts from PMBOK® Guide are at the tab, "PMBOK Excerpts."
Excerpts from the 2010 article and a link to it follow:
1. In 2009, DoD reported that EVM, based on the EVMS Standard, no longer serves its
2. Sen. Susan Collins stated that the GAO observed that contractor EVM reporting lacks
consistency and leads to inaccurate data and faulty application of the EVM metric. “In other
words, garbage in, garbage out.” Collins concluded that, “With improved EVM data quality,
both the government and the contractor will be able to improve program oversight, leading
to better acquisition outcomes.”
3. The time has come to ask whether DoD and other federal agencies should continue to rely
on ANSI-748 or should adopt the best practices of commercial companies that use EVM
voluntarily, not because of a contractual mandate.
4. Project management standards and best practices that are used by commercial companies
should be considered for acquisition reform.
5. Commercial information technology companies in India and South Korea use EVM
processes and best practices based primarily on the PMBOK® Guide and its focus on the
technical baseline and Technical Performance Measures (TPM). (See article, Performance-
based EV in Commercial IT Projects, at tab "Articles and Tutorial"
6. PMBOK® Guide practices include:
White Paper,"DoD Acquisition Reform: EVMS-lite to
Program/Project Management," July 27, 2018
More than 20 years ago, the founding fathers of the Earned Value Management System
(EVMS) stated their visions for the pending EVMS Standard. That standard was developed
as a Voluntary Consensus Standard (VCS) to replace the DoD document, “Cost/Schedule
Control Systems Criteria,” which had been used since 1967 for capital acquisitions.
Their visions, stated below, have not been realized. A path to effective, integrated program
and project management (P/PM) should include changes to regulations and policy to require
that EVM be linked with systems engineering, technical performance measurement (TPM)
and risk management. The path should include elimination of the regulations that require
compliance with the EVMS Standard, EIA-748-C, in favor of internal management processes
that are consistent with the most widely-accepted VCS for P/PM, the Project Management
Institute (PMI) Guide to the Project Management Body of Knowledge (PMBOK® Guide).
Federal law, OMB policy, and recent DoD acquisition reform initiatives signal that the
federal government and DoD have started down that path.
Not Widely Accepted
A worldwide survey of EVM users by the PMI, in 2010, disclosed that the private sector has largely ignored
EIA-748-C. When the use of EVM is voluntary and not a contractual mandate, only 17 percent of the
respondents used EVM based on EIA-748-C.
Seventy percent of respondents to the Grant Thornton 2016 Government Contractors Survey stated they
would not use EVMS if not required to do so. Twenty-eight percent reported having contracts that require
use of EVMS. Of those using EVMS, only 37 percent believe it to be a cost-effective management tool and
only 25 percent would adopt EVMS voluntarily.
TPMs and Risk Management Not Integrated
Little Insight and Less Management Value
Applicability to DoD
PMIAA gave a potential waiver to DoD by stating it is not applicable to DoD “to the extent that the
provisions…are substantially similar to or duplicative of…policy, guidance, or instruction of the
Department related to program management.’’ However, current DoD policy, guidance, and instruction
related to program management and EVM are not similar to or consistent with the most widely accepted
guide for P/PM, PMBOK® Guide.
A PM’s needs that are covered by the PMBOK® Guide but are not mentioned in EIA-748-C include the
technical or product baseline, requirements management and traceability, risk management, and project
PMBOK® Guide includes standards and principles that meet the needs of P/PM but are absent from
EIA-748-C (Table 1).
EIA-748-C Is No Longer a VCS per OMB Circular A-119 Criteria
EIA-748-C is no longer a VCS because it is “otherwise impractical.” It fails to serve DoD’s procurement and program
needs. It is not prevalently used in the national and international marketplaces. Most importantly, EIA-748-C
does not address the state of knowledge and technology since it was last revised. It is still silent on the product
or technical baseline, risk management, and on tracing the requirements baseline to the schedule and work packages.
The Quality Gap has not been closed.
Finally, the National Defense Industrial Association Integrated Program Management Division (NDIA)
is the author and steward of EIA-748-C. NDIA is using SAE International as the VCS body. However, NDIA missed the
deadline to obtain SAE approval of reaffirmation.
OMB Memo: Improving the Management of Federal Programs and Projects through Implementing the
PMIAA, June 25, 2018
Recommended Four Step Plan for Acquisition Reform
The rationale for and implementing details of EVMS-lite were included in my letter to Chairman Thornberry,
11/17/13, Subj: Expanded NDAA Defense Acquisition Reform – EV.
Excerpt: “It is also recommended that DOD policy be revised to require contractor compliance with three
amended or tailored EVMS guidelines and to remove compliance with eight (now twelve) guidelines. In my
opinion, the cost savings by eliminating compliance with…guidelines will offset any cost increases that
may be incurred because of the tailored guidelines.”
DoD should discontinue use of EIA-748-C because it is impractical, ineffective, and has not been
reaffirmed. It fails to serve DoD’s procurement and program needs. It has failed to keep current with
changes in the state of knowledge and technology and is less useful than the PMBOK® Guide. The end
of the path should be a set of internal management processes and/or VCSs for P/PM, as required by the
PMIAA and OMB policy. PMBOK® Guide is the most widely accepted P/PM VCS and it components should
be included in the internal management processes.
The recommendations above are needed to fulfill the visions of EVM’s founders, to implement
the acquisition reforms and legislative intentions of senators and congressmen, to halt systemic findings
like those in the DoD Report, and to comply with the PMIAA.
Letter to Ms. Weichert (OMB) and Mr. Fahey (DoD), 7/26/18
Subj: Successful Implementation of PMIAA by all Agencies, including DoD
Letter to Ms. Weichert (OMB) and Mr. Fahey (DoD), 7/31/18
Subj: How Commercial IT Companies Use Earned Value Management with P/PM