Improving Program Performance at FAA

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Improving Program Performance at FAA
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EVM at FAA

• Background
• FAA has used DoD approach (EVM for contractors
  only) on some programs and decided its not
  sufficient
• Will manage entire program using EVMS in
  accordance with ANSI/EIA 748
• Manage/measure all resources
• Requires changes in behavior by all parties

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FAST Home Page http//fast.faa.gov
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EVM Transformation at FAA

• Holistic Approach
• Goals
• Adopting FAA and industry Program Management
  "Best Practices"
• Strengthening and integrating technical,
  schedule, and cost performance  management of
  programs by implementing earned value management
  techniques
• Positioning programs to be better able to
  anticipate, forecast, and  communicate future
  performance based on objective performance
   metrics and risk assessments as well as proven
  engineering judgments

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EVM Transformation Overview Flag
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Assessment Themes - Issues

• PM Commitment
• Cross Cutting Themes
• Multiple Baselines
• Govt FTEs Effort
• Program Support LOE
• Choosing the Correct Contract Type
• Including Sufficient EVM Language in Contracts
• Comprehensive Program-Level WBS
• FAA Best Practices
• Performance-based Payments
• Mature Estimating Techniques
• Alignment of Program WBS with Contract CLINS and
  OMB 300 Useful Segments
• GCAMS CCAMS
• Program Level EVM Tools Application
• Risk Adjusted Schedule Cost Applications

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EVM Transformation Overview
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EVM Council

• Formed as a continuation of the management
  processes effort
• Co-Chaired by ATO-A and AIO
• Membership includes
• ATO Service Unit representatives
• Other Lines of Business implementing EVM
• AIO representatives
• CFO representatives

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EVM Transformation Goals for 2006

• EVM Council tracking POAM status most targets
  due in 2006 if achieved, flag will turn to
  mostly yellow and green.
• FAA to assess its financial processes against the
  ANSI standard update its flag
• FAA to issue a Laypersons guide to EVM
• FAA to issue a managers guide to using EVM
• Technical Training to continue and be
  supplemented by awareness training
• EVM toolkit to be selected.
• Our goal is that 50 of our EVM scores on our
  exhibit 300s be 4 or 5 and the rest 3.

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EVM Transformation Goals for 2007

• Full EVM implementation by end of FY 07.
• EVM part of Program Managers toolkit.
• Full EVM reporting for all major investments.
• EVM scores on Exhibit 300s are all 4 or 5.
• Use of EVM makes a major difference in ability of
  FAA programs to stay on track and within budget.
• Use of EVM contributes to FAA NAS Modernization
  Program being removed from the GAO High Risk
  List.

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FAA Contractor Meeting Feb 6, 2006

• Participants
• Lockheed Martin
• Raytheon
• Harris
• Parsons Infrastructure and Technology Group
• Northrop Grumman
• Mitre
• Computer Sciences Corporation
• Advanced Management Technology Inc.
• BAE Systems

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Follow-up Meeting Guidelines

• Attendees requested to return for individual
  meetings over next three months with EVM team and
  selected Program Managers and Contracting
  Officers
• Present Management Overview
• Company response to FAA initiative
• EVM System acceptance applicability to FAA or
  Plan to achieve acceptance (ref. NDIA Systems
  Acceptance Guide)
• How EVM is used on current FAA contracts
• Best practices (e.g., subcontract management)
• Improvement opportunities

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FAA Contractor Meeting Follow-up

• Participants
• Lockheed Martin
• Raytheon
• Harris
• Parsons Infrastructure and Technology Group
• Northrop Grumman
• Mitre
• Computer Sciences Corporation
• Advanced Management Technology Inc.
• BAE Systems

Follow-up meeting already held
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FAA Procurement Comments

• Top contractors suppliers, support contractors,
  FFRDC
• Purpose cooperation with industry to achieve
  mutual success in performing FAA mission
• FAA EVM differs from legacy approach
• Program level, not just contractors
• Will not change existing contracts

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Expectations from Contractors

• Manage using ANSI/EIA 748
• Existing contracts will not be modified to
  require EVM
• For new contracts, contractors are responsible
  for
• Contract performance (scope, schedule, delivery)
• Excellent management
• Contractors may leverage existing EVM acceptance
  from other agencies or work with FAA to develop
  new plan

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Summary-FAA EVM Approach Overview

• FAA programs are implementing EVM at the program
  level and requiring contractor EVM reporting in
  an effective and efficient manner

Prime Contractors Prime Contractors Support Contractors Support Contractors
Program Effort Cost Reimbursable Fixed Price Cost Reimbursable Fixed Price
Measurable EVM reporting and certification Performance based payments, or Status reporting and invoices EVM reporting and certification, or Status reporting and invoices(1) (2) Performance based payments(1), or Status reporting and invoices(1) (2)
LOE (1) Status reporting and invoices Status reporting and invoices Status reporting and invoices Status reporting and invoices

1. EVM implemented by the FAA PO
2. Includes production and sustaining support, such
   as, engineering and program management