Term ActualCostofWork Performed AdvanceAgreement ApportionedEffort AuthorizedUnpriced Work Baseline BestCaseEAC BudgetatCompletion BudgetedCostforWork Performed BudgetedCostofWork Remaining BudgetedCostforWork

Scheduled ContractBudgetBase ContractData RequirementsList ContractFundsStatus Report ContractLineItem Number ContractPerformance Report ContractTargetCost ContractWork BreakdownStructure ControlAccount ControlAccount Manager ControlAccountPlan

Definitions (ACWP,AC,ActualCost)Costsincurredinaccomplishingworkperformedduringagivenreportingperiodusuallyatthecontrolaccountlevelwithintheworkbreakdownstructure.Forperformance reporting,actualcostsmaybeestimatedandthenrecordedintheaccountingsystemwithinapredefinedtimeperiod(e.g.,3months). (AA)AnagreementbetweenthecontractorandaCognizantFederalAgency(i.e.DCMA)ContractManagementOfficethatrecognizestheapplicationofavalidatedEVMStocontractswithinthe corporation,divisionorfacility. (AE)Effortthatbyitselfisnotreadilydivisibleintoshortspanworkpackagesbutisrelatedindirectproportiontomeasuredeffort.Thiseffortisdependentonanothertaskthatcanbemeasured discretely.Examplesarequalitysupportthatisdependentontesting.EVAE=AEDE (AUW)Representsworkthathasbeenauthorizedbutforwhichthecontractscope,cost,orschedulemayhavenotbeendefinitizedornegotiated. Establishesthescopetobeachievedbytheprogram(orcontract)aswellasthetechnical,cost,andscheduleboundarieswithinwhichtheprogram(contract)isauthorized. (EACCPI)TheEACbasedonthemostoptimisticassumptions,risks,andschedule.Itisthelowestcosttothecustomerinthemostfavorableconditions.SeeIndependentEstimateatComplete(IEAC). (BAC)Thetotalauthorizedbudget(orplannedvalue)foraccomplishingtheprogramscopeofwork.BACisthetotalauthorizedbudgetforanyelementofthebudget.BACisthesummationofthe phasedbudget.ManagementReserveisnotincluded.TheBudgetatCompletionwillformthePerformanceMeasurementBaselineasitisallocatedandtimephasedinaccordancewithprogram schedule.Forcontractualeffortthebudgetatcompletionwillincludeundistributedbudget.BAC=Sum(CA)+Sum(SLPP)+UB (BCWP,EV,EarnedValue,Accomplishment,P)Thevalueoftheworkaccomplishedexpressedasthevalueofthebudgetassignedtothatwork. (BCWR,PVR,WR)Thebudgetvalueoftheremaining.BCWR=BACBCWPor,BCWR=BACEV (BCWS,PlannedValue,PV,Budget,S)Thetimephasedprogram(orcontract)authorizedbudgetassignedtotheworktobeaccomplishedfortheprogram(orcontract)workbreakdownstructure consistentwiththeprogram(orcontract)schedule.BCWS=Sum(CA)+SUM(SLPP)+(UB) (CBB)ThesumoftheNegotiatedContractCost(NCC)plustheestimatedcostofAuthorizedUnpricedWork(AUW).CBB=NCC+AUW (CDRL)Acompilationofalldatarequirementsincludingtechnicalpublications,engineeringdata,supportdata,managementdata,etc.asspecifiedinthecontractwhichthecontractorisobligated todelivertotheGovernment. (CFSR,DIMGMT81468)AstandardformatreportdefinedbytheU.S.government(DIMGMT81468,orcurrentverson)thatmaybecontractuallyrequiredandprovidesinformationforthe followingfinancialandbudgetaryactivities:(1)updatingandforecastingcontractfundsrequirements,(2)planninganddecisionmakingonfundingchangesincontracts,(3)developingfunds requirementsandbudgetestimatesinsupportofapprovedprograms,(4)determiningfundsinexcessofcontractneedsandavailablefordeobligation,and(5)obtainingroughestimatesof terminationcosts. (CLIN)Numberingsystemusedtoreferencecontractitemsforadministrativeandreportingpurposes(e.g.,CPR)andhavethefollowingcharacteristics:1)singleunitpriceortotalprice,2) separatelyidentifiablefromothercontractitemsorservices,3)separatedeliveryschedule,performanceperiod,orcompletiondate,and4)singleaccountingclassification. (CPR,DIMGMT81466A)StandardreportsdefinedbytheU.S.government(DIMGMT81466A,orcurrentversion)thatmaybecontractuallyrequiredandprovideEVperformanceinformationon current,cumulative,andprojectedcontractperformanceinfiveformats:(1)WorkBreakdownStructure(WBS),(2)OrganizationalBreakdownStructure(OBS),(3)Baseline,(4)Staffing,and(5) ExplanationandProblemAnalyses. (CTC)hetotalnegotiatedcontractcosts(originalcontractandsubsequentcontractchanges),excludingprofit,fees,andAuthorizedUnpricedWork(AUW).CTC=CPAUWProfit/Fees (CWBS,DIMGMT81334Borcurrentversion)ThecontractuallyrequiredWBSusedforperformancereportingtothecustomer. (CA)LowestWBS/CWBSelementassignedtoasinglemanagement"focalpoint"technicallyqualifiedtoplanandcontrolscope,schedule,andbudgetforthepurposeofperformancemeasurement. Acontrolaccountcanbecomprisedofworkpackagesandplanningpackages(lowerlevels). (CAM,GCAM)Themanagerwithintheorganizationalstructurethathasbeengiventheauthorityandresponsibilitytomanageoneormorecontrolaccountsfortechnical,schedule,andcost management.ForprojectsfocusedonusingtheIPTapproach,theCAMmayalsobeanIPTLead. (CAP,CostAccountPlan)ACAPspecifiesplanningitems(e.g.performancebudgets,schedule,workpackages,planningpackages,milestones,andperformancemethods)foracontrolaccountofthe WBSinatimephasedmannerthatwillbeusedtomanageandassessperformancebyaControlAccountManager(CAM).

CostPerformanceIndex (CPI,CPIE,P/S)Ameasureofcostefficiency.Itistheratioofearnedvalue(EV)toactualcosts(AC).CPI=BCWP/ACWPorEV/AC (efficiency) CostVariance (CV)Ametricforexpressingcostperformancederivedfromearnedvaluedata.Itisthedifferencebetweenearnedvalueandactualcost(costvariance=earnedvalueactualcost.)Apositivevalue indicatesafavorablecostvarianceconditionandanegativevalueindicatesanunfavorablecostvariancecondition.CV=BCWPACWP;CV=EVAC (CP)Asequenceofdiscreteworkpackages(WP)andplanningpackages(PPorlowerleveltasks/activities)inthenetworkthathasthelongesttotaldurationthroughanendpointthatiscalculatedby theschedulesoftwareapplication.Discreteworkpackagesandplanningpackages(orlowerleveltasks/activities)alongthecriticalpathhavetheleastamountoffloat/slack(schedulingflexibility) andcannotbedelayedwithoutdelayingthefinishtimeoftheendpointeffort. (DE)Workwhichcanbemeasuredintermsofworkaccomplishedandisrelatedtothecompletionofspecificendproductsormilestones. (BCWP,EV,EarnedValue,Accomplishment)SeeBCWPdefinition (EVM)Amanagementmethodologyusedfortheintegrationofscope,schedule,andresourcesinordertoobjectivelymeasureprojectperformanceandprogressandcontrolprojectperformance. (EVMS)Anintegratedsetoforganizationalprocessesandsoftwaretoolsthatisusedtocollect,analyze,andreportprojectperformanceinformation. (EVMSG,ANSI/EIA748)TheANSI/EIAEarnedValueManagementStandard32guidelinesgroupedintofivecategoriesOrganizing,Planning,Accounting,DataAnalysisandReporting,andRevisions andChangeControlthatdescribetheattributesofanEarnedValueManagementSystemtoimplementEVMonanenterpriseorprogramwidebasis. (EVT,PMT)Methodtomeasureworkplannedandaccomplishedinamannerthatidentifiestechnicalaccomplishments.Therearetypically3categoriesofEVtechniques:DiscreteEffort(DE),Level ofEffort(LOE),andApportionedEffort(AE). (EOC)Acategory(e.g.,Labor,Materials,Travel,Overhead,etc.)thatcanbeassignedtopartoralloftheresourcesbudgetedorexpendedfortheperformanceofworkassociatedwithaControl AccountorWorkPackage. (EAC)Theestimatedtotalcostforanyleveloftheprojecthierarchy.Theestimateatcompletionisconductedonaperiodicbasis(i.e.Monthly).TheEACisbasedontheworkaccomplished,the costoftheworkaccomplished,scheduleperformance,andtheestimatedcostoftheworkremaining(ETC).Thisisusuallyaprojectmanager'sestimatebasedonhisassessmentofperformanceto dateandestimatedcosttocompletefortheremainingwork.EAC=ACcum+ETC;EAC=ACWPcum+ETC;EAC=ActualstoDate+[(RemainingWork)/(EfficiencyFactor)] (ETC)Theestimatedcostrequiredtocompletetheremainingwork.ETC=EACAC;ETC=RemainingWork/(EfficiencyFactor,CPIcum) Completiondatebasedonscheduleaccomplishmentsandtheestimatedscheduledurationtocompletetheremainingworkfromthecurrentreportingperiod.

CriticalPath DiscreteEffort EarnedValue EarnedValue Management EarnedValue ManagementSystem EarnedValue ManagementSystem Guidelines EarnedValueTechnique ElementofCost

EstimateatCompletion

EstimatetoComplete EstimatedCompletion Date

(IEACn)TheprojectedtotalcostforanyleveloftheWBShierarchyatthetimethedefinedscopeofworkforthatleveliscompletedcalculatedbasedonsumofexpenditurestodate(i.e.,ACcum IndependentEstimateat orACWPcum)andtheestimatedcostsrequiredtocompletetheworkremainingorEstimatetoComplete(ETC).Costsrequiredtocompletetheworkremainingcanbecalculatedbasedona historicalEVMperformanceusingmetricssuchthecumulativecostperformanceindex(CPIcum)orperformingadetailed,"bottomsup"reestimate.IEAC=TimeNow(months)+(BACEVcum)/ Completion Ev(average);=TimeNow(months)+(BACBCWPcum)/BCWP(average);NOTE:Severalotherformulasareavailable. (IECD)TheprojectedcompletiondateforanyleveloftheWBShierarchyestimatedbyusingaverageearnedvaluerateandtheworkremainingfortocalculatetheamountoftimeneededto IndependentEstimated completetheremainingworkforthatWBSlevel.IECD=TimeNow(months)+(BACEVcum)/EV(average);IECD=TimeNow(months)+(BACBCWPcum)/BCWP(average);NOTE:Severalotherformulasare CompletionDate available.

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Term IntegratedBaseline Review IntegratedMasterPlan IntegratedMaster Schedule

Definitions (IBR)Aprogram(contract)reviewconductedtoassesstheprojectintegratedbaselines(technical,schedule,andcost),reviewriskmitigationplans,andassessadditionalbaselineriskstoensurethe programbaselinesareachievable.TheIBRincludesareviewoftheprogramperformancereportingtoverifyprogram(contract)performancereportingisreliableandtimelyforidentifyingearly warningperformanceandallowsforcorrectiveactions. (IMP)Aplanningdocumentidentifyingkeyeventsandmilestonesnecessarytosuccessfullyexecuteaprogramorproject.Theintegratedmasterplan(IMP)usuallyincludesworkdefinition, technicalapproach,performancecriteria,andcompletioncriteriaforeachkeyeventandmilestone. (IMS,DIMGMT81650,orcurrentversion)Aprojectschedulethatprovidesdetailedinformationattheworkplanninglevelincludingtaskdefinitions,durations,milestones,milestonedatesrelated totheIMPcompletioncriteria,andinterdependenciesrequiredtocompletetheprogram.ItiscontractuallyspecifiedbyDIMGMT81650andrequiredataminimumwheneverEVMisrequired.The IMSisverticallytraceabletotheIntegratedMasterPlan(IMP)(ifapplicable),theContractWorkBreakdownStructure(CWBS),andtheStatementofWork(SOW).

IntegratedProductTeam (IPT)Acrossfunctionalgroupofindividualsorganizedforthespecificpurposeofdeliveringaprojectorproducttoanexternalorinternalcustomer. IntegratedProductTeam AnindividualdesignatedtoberesponsibleforplanningandperformanceactivitiesfortheworkassociatedwithanIPT.TheIPTLeadercouldalsobetheCAMonaproject. Leader LetterofAcceptance (LOA)AletterissuedbytheAdministrativeContractingOfficerthatrecognizesthesuccessfulvalidationofthecontractorsEVMSanditsapplicationwithinaspecificfacility. (LOE)AmethodwhereEVismeasuredbythepassageoftimebecausetheactivitycannotbemeasuredusingdiscreteEVtechniques.LOEistypicallynotusedtomeasuretechnical LevelofEffort accomplishmentsonprojects. (MR)Management(Cost)ReserveisanamountofbudgetheldinreservethatisnotincludedinthePerformanceMeasurementBaselineandusedatmanagement'sdiscretiontousedtobudgetfor ManagementReserve additionalworkthatiswithinscopeofthecontract. Aspecificdefinableaccomplishmentintheprogram,project,orcontractschedule,thatoccursataspecificpointintime.Milestoneshavezeroduration,donotconsumeresourcesandhavedefined Milestone entryandexitcriteria.Amilestonemaymarkthestartand/orfinish,ofaninterimstep,eventand/orprogramphase. AnEACthatthecontractor'smanagementbelievesisthemostlikelyoutcomebasedonaknowledgeableestimateofallauthorizedwork,knownrisks,andprobablefutureconditions.Thisvalue neednotagreewithotherEAC'sreportedonCPRFormats1and2butshallbeexplainedinCPRFormat5insuchtermsasrisk,useofManagementReserve(MR),orhighermanagementknowledge MostLikelyEAC ofcurrentorfuturecontractconditions.Theassumptions,conditions,andmethodologyunderlyingthisestimateshallbeexplainedbrieflyinFormat5.ThisEACneednotagreewithEACscontained inthecontractor'sinternaldata,butmustbereconcilabletothem. NegotiatedContract Cost OrganizationBreakdown Structure OtherDirectCost OverTargetBaseline OverTargetSchedule Performance MeasurementBaseline PlanningPackage PriceVariance (NCC)hecumulativecost(excludingfeeorprofit)fortheoriginalcontractandallnegotiatedcontractchanges.TheTotalAllocatedBudget(TAB)willequaltheNegotiatedContractCostwhenthere isnoAuthorizedUnpricedWork(AUW)orOverTargetBaselines(OTB).TheNCCisthecurrentcontractnegotiatedcost. (OBS)Ahierarchicalrepresentationoftheproject/programorganizationelementsresponsibleforcontrolaccountsandsummarylevelplanningpackages.TheOBSprovidesthestructuretoreport performancemetricsbyorganizationlevel. (ODC)AnElementofCost(EOC)categoryformiscellaneousitemsotherthanlabor,materialsandtravel.TheODCcategorytypicallyincludesitemssuchassupplies,publications,computerservices, telecommunication,postage,leases,maintenancecontracts,etc. (OTB)Anestablishedperformancebaselinethatexceedsthevalueofthenegotiatedcontract.OTB=CBB+{CostOverrun} (OTS)AnOTSisaschedulebaselinethatextendsbeyondthecontractmilestonesordeliverydates. (PMB)ThePerformanceMeasurementBaseline(PMB)isthetimephasedplanestablishedbythePMforexecutingtheapprovedprojectforEVMperformancereporting.ThePMBexcludes managementreserve. (PP)Anelementofacontrolaccount(CA)forfutureeffortthatisnotplannedindetailattheworkpackagelevel. (PV)Thetermsusedtoidentifyunitcostvariances.Thepricevarianceiscalculatedbycomparingplannedunitcostvs.actualunitcost.Pricevariancecanbecalculatedattheindividualunitlevelor quantityunitlevel.UnitPriceVariance=(PCUnitPriceACUnitPrice);QuantityPriceVariance=(PCQuantityACQuantity)

ProgramSummaryWork (PWBS)WBSthatrepresentsallcontractorandgovernment(customer)workactivitiesandacquisitionsrequiredtoimplementafundedprogram. BreakdownStructure (PAV)AninitialassessmentofthecontractorsreadinesstodemonstrateitsEVMScompliancewithANSI/EIA748standardthatisconductedbya3rdpartyorganization.Thevisitisconductedprior ProgressAssistanceVisit totheValidationReview,andidentifiesthesupplierweaknessesandstrengths.RecommendationsareprovidedtothesuppliertoassistwiththeirpreparationfortheANSI/EIA748standard ValidationReview. Responsibility (RAM)TheRAMiscreatedfromtheintersectionoftheWBSandOBSandidentifiesresponsibleorganizationsandCAMsfortheprojectCAsandSLPPs.TheRAMisatoolforassigningorganization responsibilitiesforelementsoftheproject.TheRAMmayincludecostandschedulebaselineinformationforCAandSLPP. AssignmentMatrix SchedulePerformance (SPI)Ametricthatismeasureofscheduleefficiency.Itistheratioofearnedvalue(EV)toplannedvalue(PV).SPI=EV/PV,orSPI=BCWP/BCWS Index (SV)Ametricforexpressingscheduleperformancederivedfromearnedvaluedata.Itisthedifferencebetweenearnedvalueandplannedvalue(CV=EVPV).Apositivevalueindicatesa ScheduleVariance favorableschedulevarianceconditionandanegativevalueindicatesanunfavorableschedulevariancecondition.SV=EVPV,orSV=BCWPBCWS SummaryLevelPlanning (SLPP)AhighlevelWBSelementusedasaholdingaccountforbudgetassociatedwithfutureprojectworkthatcannotbeallocatedtoControlAccounts(CA)fortechnicalorbusinessreasons. Package Arecurringprocessperformedbyanindependentparty,forexample,DefenseContractManagementAgency(DCMA),thatassessescomplianceofthecompanysEVMSwithANSI/EIA748andthe Surveillance companyswrittensystemdocumentation. Anelementofworkperformedduringthecourseofaprojectorprogramthathasanexpectedduration,expectedcost,andexpectedresourcerequirements.Somesystemsmaydefinetask/activity Task(Activity) atalevelbelowtheworkpackagewhileothersystemsdonotmakethisdistinction. (TCPI,TCPIEAC,TCPIBAC)AmetriccalculatedinasimilarmannertotheCPIthatspecifiesthecostefficiencyrequiredtocompletetheremainingprojectwork.Itisaratiooftheremainingbudget ToComplete valueoftheremainingworktobeaccomplished(TCPI=BACEVCum)totheestimatedcosttocomplete.TCPI=(BACEVCum)/ETC;ETC=EACACcum PerformanceIndex TotalAllocatedBudget UndistributedBudget (TAB)Authoizedbudgetforallworkassociatedwithaprojectorcontract.ForcontractTABs,profitandfeeareexcluded.TAB=NCC,CBB,orOTB

(UB)AtemporaryholdingaccountundercontractsforPMBworkthathasbeenauthorized,butnotyetallocatedtocontrolaccountsorsummarylevelplanningpackages. (UV)Ametricusedtoidentifycostperformanceassociatedwithpricevariances.Thisiscalculatedbycomparingplannedquantityxplannedunitpricewiththeactualquantityxplannedunitprice. UV=(PlannedQuantity*PlannedUnitPrice)(ActualQuantity*PlannedUnitPrice) ValidationReview AformalGovernmentreviewconductedatacontractorsfacilitytoassessthecontractorsproposedEVMScompliancewithANSI/EIA748. (VAR)Atechniquewhereplannedvaluesarecomparedtoactualvaluestocalculateperformancemetrics.Differencesnegativeorpositiveabovepredefinedthresholdswarrantexplanationand VarianceAnalysisReport mayrequirecorrectiveaction.TheexplanationsarereportedintheCPRFormat5. (VAC)ThedifferencebetweentheBudgetatCompletion(BAC)andtheEstimateatCompletion(EAC).Itmaybecalculatedatanylevelfromthecontrolaccountuptothetotalcontractorprogram. VarianceatCompletion Itrepresentstheamountofexpectedoverrun(negativeVAC)orunderrun(positiveVAC).VAC=BACEAC UsageVariance WorkBreakdown Structure WBSDictionary WorkPackage (WBS)Aproductoriented,hierarchicalstructurethatlistsalloftheproducts,components,software,dataandservicesresultingfromaprogram,project,orcontractandsupportsthefollowing activities:planning,scheduling,budgeting,costaccumulation,andreportingofperformanceduringtheentireperiodofeffort.MILHDBK881(currentversion)providesastandardWBSapproach. (DIMGMT81334B,orcurrentversion)AdocumentpreparedbythecontractorthatdescribesanddefinestheelementsintheCWBSstructureandcontractuallydefinedbyDIMGMT81334B,or currentversion. (WP)Aunitoraggregationofneartermworkthatis:1)asubdivisionofaControlAccount(CA),and2)usedforplanning,progressmeasurement,andearnedvaluecomputation.

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