Accepted Standards and Emerging Trends in Over Target Baseline (OTB) Contracts
Earned Value Management Track
Over Target Baseline (OTB) projects or programs are those that have run significantly over cost and require formal reprogramming – essentially a complete replanning of the project – in order to help the contractor regain management control over the effort. The OTB process has been well documented and become an established part of Earned Value Management practice. Much of the literature-to-date has focused on OTBs from the contractor perspective, including the steps to take in order to propose and implement an OTB, and the proper channels and occasions for engaging the customer in the process. But effective OTB implementation is a two-way street. The customer also must take an active role in the OTB process, examining variables such as mission need, overall strategic objectives, and prevailing business conditions, when determining if a request for OTB reprogramming should be granted, or if there exist other potential alternatives to pursue. Recent research suggests that OTBs, as currently implemented, have little effect on subsequent project performance, and new questions and criteria for engaging OTBs are now beginning to emerge.
Simon Dekker is President and Chief Executive Officer of Dekker, Ltd., an industry leader in program and project management solutions. Mr. Dekker was the original author of the Dekker PMIS” (Project Management Information System) software suite. Mr. Dekker is an authority on the implementation and integration of contemporary program and project management techniques. His diverse experiential background in scientific applications, business management and administration, program and technology management, and systems engineering projects has made him an invaluable partner to commercial enterprises, government agencies, and government contractors needing to streamline their project management systems.
Prior to co-founding Dekker, Ltd. in 1984, Mr. Dekker directed the business and engineering computer centers for the Ballistic Missile Program Office, and was a software engineer for scientific, satellite, and defense projects. He has published articles and given lectures for various trade associations, private enterprises, government agencies, and universities throughout the United States and Europe on the topics of Project Portfolio Management (PPM), Performance Measurement, and Earned Value Management (EVM).