Posted by Risk Based BOE Analysis – PMAG Approach
Management Track
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Abstract:
The Government Accountability Office (GAO) Cost Guide is a compilation of best practices from across the Federal Government that can serve as a benchmark for cost estimation. The Guide provides useful information to assist the acquisition community in the development of reliable, comprehensive, defensible, and well- documented cost estimates.
A common lesson learned from BOE evaluation is that the majority of contractors’ BOE was at the summary level and insufficiently detailed. Although the summary-level documentation met the program office’s requirements for documenting budget requests and provided insight into the process used to estimate the direct costs, it did not include detailed rationales and substantiations, such as the source data, calculations, and explanations, that would facilitate reproducing and independently evaluating the estimate.
In this workshop, we will present a detailed top-down and bottom-up hybrid approach to BOE Evaluation. Sample BOE evaluation results will be presented to highlight representative deficiencies from contractors’ BOE. We will demonstrate that additional guidance beyond the GAO Cost Guide is needed to ensure cost estimates are logical, consistent, accurate, and executable once the estimate is converted into cost and schedule baselines. Given that acquisition programs and projects have historically experienced cost overruns, cost estimates with detailed, empirical data that explain the rationale for decisions could help minimize the risk of inadequate cost baseline by providing additional assurance that budget requests are adequate to achieve program and project goals. The Integrated Baseline Review and Earned Value Management processes would be tremendously benefited from thorough BOE evaluations effort.
Author(s):
Imran Ahmed
USAF, Space and Missile Systems Center (SMC)
Mr. Ahmed is the Earned Value Lead at the Financial Management Staff, at the LAAFB. He has over 10 years of experience in Financial Management, with a focus on Earned Value Management.
He is primarily responsible for supporting ACAT I and ACAT II government contracts with formal EVM requirements through all phases of EVMS deployment including: proposal support, training, CAM and EVM methodology training, IBR preparation, annual contract surveillance, Risk Assessment, Management and Mitigation. He was also a member of the Effectiveness Review Board representing SMC with one of the major defense contractors to help develop metrics and measures of effectiveness for contract performance.
He is currently involved in the set up of The Earned Value Management Toolkit (EVMT). This is a multi-volume series designed to meet SMC leaderships’ challenge on proactive use of EVM as an effective program management process. The EVMT has been developed as part of the SMC EVM revitalization efforts initiative and draws upon guidance, training, and reference material from both industry and government. The Toolkit materials are based on the best EVM practices from SMC wings, Air Force/DoD, and other Government agency’s programs.
Imran has a B.S. in Business Administration and a MBA from Southern Illinois University.
Mun Kwon
Dr Mun Kwon Consulting
Dr. Mun H. Kwon is President of Dr Mun Kwon Consulting Company has over 29 years of Engineering Management and Program Management experience. Dr. Kwon manages and leads Program Management Assistance group (PMAG) as a senior acquisition adviser to support the Space and Missile Systems Center, providing integrated program management assistance to the SMC’s acquisition wings, and training workshops to develop integrated program management capabilities across the acquisition wings.
Prior to being a consultant, Col Kwon (Ret) worked as Deputy for Program management and Integration Directorate, SMC, LAAFB, CA. He led SMC’s Program Execution and Analysis Group, Acquisition Center of Excellence Group, and PMAG to support the SMC mission. His career has a wide variety of acquisition program management, education, HQ USAF air staff, and materiel leader assignments including Solid Rocket Motors business manager, Launch vehicles acquisition manager, Titan 34D Solid Rocket Motors Production and Launch Services project manager, Space Shuttle Payload Integrator, Advanced Space Technology program manager, USAF/XP chief scientist, professor of systems management, National Defense program control chief, Dean of education and technology, National Defense University, major acquisition national space systems program manager, and commander of materiel acquisition group.
Dr. Kwon earned a baccalaureate science degree in chemistry from the University of Maryland, a master’s in Systems Management from the University of Southern California, second masters in Strategic Studies from the Air War College, and doctorate in Management from the United States International University.
David L. Wang
The Aerospace Corporation
Dr. David L. Wang is Director of Program Management at The Aerospace Corporation
(Aerospace) and has over 20 years of Engineering Management and Program Management experience. Dr. Wang manages and leads an Aerospace team to support the Space and Missile Systems Center, providing integrated program management assistance to the SMC’s acquisition wings, and training workshops to develop integrated program management capabilities across the acquisition wings.
Prior to joining Aerospace, Dr. Wang worked as an Engineering Manager with increasing engineering and program management responsibilities for various programs at Northrop Grumman Corporation. Dr. Wang also worked at Cisco Systems in progressively more responsible positions in Engineering Management and Program Management. He was the program manager for multiple international joint development and offshore manufacturing partnerships between Cisco and Sony, Samsung, Matsushita, Dassault, and multiple Taiwanese and mainland Chinese companies.
Dr. Wang earned a baccalaureate with Honors in Engineering and Applied Sciences (E&AS) and a master’s in Electrical Engineering (EE) from the California Institute of Technology (Caltech), and a master’s and doctorate in EE&CS from the Massachusetts Institute of Technology (MIT).