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Earned Value Management

The links at the bottom of this page will help an investment manager or project team implement its earned value management program.

"Project Management With The Headlights On"

Earned value management (EVM) is one of the tools in a project manager's toolbox.  It is the financial look at what work was budgeted to be completed by now, what the budgeted cost is for the work that actually has been completed, and what the actual cost to date is.   It looks at completion of authorized work and the authorized budget for that actually completed work, referred to as the "earned value."

Since CMS manages approximately one fifth of the entire Federal budget, it is important that we use the taxpayers' dollars as efficiently and effectively as possible.   CMS' portfolio of information technology (IT) investments is developed and prioritized through our capital planning and investment control process, which involves senior management throughout the agency.

Once an investment—with its individual projects—is approved for funding, it falls to the investment manager and the project managers to ensure that the projects are implemented successfully.   Earned value monitoring and management provides early warning when a project is straying from its baseline plan, and shows whether actions taken to correct a situation are effective.   HHS requires that IT investments and projects track and report monthly on cost and schedule performance.  CMS follows the HHS EVM and PBM (performance baseline management) policies and procedures.

Below are several considerations for an earned value management program.

EVMS:  An earned value management system (EVMS) is that collection of procedures and tools which allows the investment manager or project manager to monitor and control work cost, schedule, and scope elements for optimum project completion.  Desired EVMS capabilities are defined by the guidelines of American National Standards Institute/Electronic Industries Alliance (ANSI/EIA) Standard 748, Earned Value Management Systems.  ANSI/EIA Standard 748 is available directly from the ANSI (see "Related Links" at the bottom of this page).

EVMS contract clauses required by the Health and Human Services Acquisition Regulation (HHSAR; see "Related Links" at the bottom of this page) are in HHSAR Section 334.

HHS Acquisition Guidance Concerning Earned Value Management specifies when a CMS investment must maintain an ANSI/EIA 748-compliant EVMS, and with which of the 32 guidelines it must comply (See "Related Links" at the bottom of this page).   IT investments/projects that do not require an ANSI/EIA 748-compliant EVMS must nevertheless monitor cost and schedule performance data, manage it, and report it monthly.  The most straightforward way to do this is with the IPMR, including format 6 (Integrated Master Schedule, IMS).

IPMR:  The Integrated Program Management Report (IPMR) format developed by the U. S. Department of Defense (DoD) is required by Department of Health and Human Services (HHS) procedures for monthly EVM reporting.  The IPMR is now available in electronic format via XML.  Data item descriptions (DIDs) are available under "Downloads,” for each of the seven report formats.  

IMS:  An integrated master schedule (IMS) consolidates all components of an IPMR into a single data set.  Usually the most straightforward way to publish IMS is with an EVM tool.  The CMS standard project scheduling tool to viewing the IMS is Microsoft Project.

IBR:  An integrated baseline review (IBR) is a discussion between the respective government and contractor teams intended to confirm that the project is properly planned and ready for execution.  IBRs are intended to provide a mutual understanding of risks inherent in contractors' performance plans and underlying management control systems.  The IBR is conducted to obtain government and contractor agreement that the scope, schedule, and cost that have been proposed for the project are adequately documented and are in accord with one another, and that the project management strategy is appropriate for moving the project forward.  The IBR process establishes mutual understanding and acceptance of the performance measurement baseline and mitigates program risk.

HHS requires that each IT project comprising each IT investment conduct an IBR at the end of its EPLC Planning Phase.

The IBR document under "Downloads" below is to a document that provides a summary description, guidance for conducting an IBR, and roles and responsibilities, and describes inputs, tools & techniques, and outputs.

The GAO Cost Estimating and Assessment Guide link under "Related Links" below is to a document that provides cost estimating techniques, best practices, and discussions on managing program cost, especially using EVM.

PMT:  HHS hosts the Portfolio Management tool (PMT) as its investment performance oversight and management application.  Each CMS major investment manager is responsible for ensuring cost and schedule update entries are posted to PMT for the investment by the tenth of each month.  CMS/OEI/IIPMG/DITIM capital planning staff provide the local CMS administration for the PMT and guidance to reporting cost and schedule data to OMB.  Contact the OEI capital planning staff for access and for password changes.  

Online EVM training is available to federal employees through the DAU Web site.  On the DAU Website, click on the "iCatalog" link at the top, and select "Apply for a Course" graphic, and select "Non-DoD Federal Government Agencies" to register.   When you get there, you will be directed to log in to the FAITAS (Federal Acquisition Institute Training Application System) to record your training for procurement qualifications.

For more information on EVM, please contact metrics@cms.hhs.gov