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 NDAA and to replace ANSI-748,

the Earned Value Management System (EVMS) Standard. A rationale to discard EVMS was

provided in my article in Defense AT&L, “Earned Value Management Acquisition Reform

(Nov.-Dec. 2010).  It is recommended that DoD consider the article when developing the

required standards, policies, and guidelines. PMBOK® Guide is used by project management

practitioners world-wide and  will provide program and project management transparency.


Pertinent excerpts from PMBOK® Guide are at the tab, "PMBOK Excerpts." 


Excerpts from the article and a link to it follow:


1. In 2009, DoD reported that EVM, based on the EVMS Standard, no longer serves its

intended purpose.


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:

  1. Differentiating the product scope from the project (work) scope
  2. Establishing a requirements baseline

Use of TPM to assess planned vs. actual technical performance.

Finally,

EVM data…will be reliable and accurate only if the right base

measures of technical performance are selected and progress

is objectively assessed.


If you are measuring the wrong things or not measuring the right

way, then EVM may be more costly to administer and may provide

less management value.