Is Earned Value Management (EVM) in the future of Performance-Based Services Acquisitions (PBSA)?
Three key objectives of the PBSA contracts are to measure, provide incentives and assist in the management of performance provided by service contractors. The dollar value the Federal Government spends on service contracts is estimated over $147B. Given the dollar value, period of performance, criticality and complexity of some service contracts, metrics are being called out to aid in contractor performance visibility. Monitoring and Assessment is paramount in objectively evaluating the service provider’s performance and setting up effective Award Fee criteria. EVM reporting requirements are being levied to improve the timeliness, accuracy, and data reliability of the performance data.
The National Defense Industrial Association’s (NDIA) Industrial Committee on Program Management (ICPM) brief “predictive Measures of Program Performance” calls out a number of relevant metrics that seeks to standardize the evaluation of program performance. The area of interest lies in the often subjective nature of most service contracts. The often used quote of Program Management/EVM professionals sums up the situation at best:
“You cannot manage what you cannot measure…and what gets measured gets done.” — Bill Hewlett, Hewlett Packard
The narrow text book EVM approach may not readily apply to service contracts that are continuous or delivered as when needed. The popularity of Indefinite Delivery, Indefinite Quantity (IDIQ) type contracts and the mix of tasks that it brings adds to the performance monitoring/measurement stew. This papers ventures to shed light on approaches to utilizing EVM on PBSA type contracts.
Anthony James Chandler
Mr. Chandler has over 23 years of experience and performance of cost analysis & estimating, life-cycle cost estimating (LCCE), Total Ownership Cost (TOA), Cost Benefit Analysis, Analysis of Alternatives (AoA), and System Acquisition. Mr. Chandler has Contract Performance Measurement, Analytical Methods in Management, Financial Program Controls and Earned Value Management experience in the DoD acquisition arena as well as in private Industry. He has proven experience working with Information Technology, Manufacturing, Mechanical Engineering, and Aircraft Systems. As a manufacturing engineer for the Boeing Company, Mr. Chandler applied analytical skills and manufacturing knowledge to convert data packages from engineering into manufacturing plans for the factory. He provided team leadership in developing LCCEs/IGCEs for DoD, Department of Education, and other Government Agencies. He was formerly a Cost Engineer/Systems Analyst for the Department of Homeland Security, TSA, where he provided Independent Verification and Validation (IV&V) support for the Transportation Worker Identification Credential (TWIC) Program. Mr. Chandler is a trained and proficient user of the Material Estimating System (MES), and Price H, HL, and S (Hardware, Life Cycle Cost, and Software Parametric Analysis), Microsoft Project, and ORACLE.