The National Defense Industrial Association, or NDIA, Program Management Systems Committee (PMSC) plays a central role in defining earned value management within the defense contracting community. Earned value management, or EVM, is a project management methodology that measures the technical, cost and scheduling performance of projects / programs.
EVM systems (EVMS) are widely used and in some cases required by federal government agencies on large and complex contracts. The NDIA PMSC is industry's opportunity to work closely with the federal government to set policy and provide guidance to its members.
NDIA Leadership in EVM Standards
The NDIA has long taken the lead in setting EVM standards. In the 1990s, it recommended modifications to the 35 Department of Defense Cost Schedule Control Systems Criteria (C/SCSC) and proposed 32 guidelines that included the needs of industry as well as meeting the government requirements.
The Defense Contracting Management Agency (DCMA) concurred with the use of the 32 guidelines which became the ANSI 748A standard. NDIA has since maintained the role of managing the standard.
The NDIA Program Management Systems Committee, (PMSC), also provides guidance in the implementation and use of EVM systems (EVMS) to achieve integrated program management. While PMSC membership is limited to industry representatives, government personnel from the various agencies implementing EVMS are regular participants in the PMSC's quarterly working group meetings. The various PMSC subcommittees focus on strengthening the understanding and implementation of compliant EVM systems.
NDIA EVM System Guides
The PMSC has published a series of widely used EVMS guides. The Earned Value Management Systems Intent Guide provides an interpretation of the ANSI 32 guidelines for companies seeking to implement a compliant EVM system. The committee revised the Earned Value Management System Intent Guide in 2012 and continues working on further improvements.
The Planning and Scheduling Excellence Guide (PASEG) was released in 2012 and is used in the development of Integrated Master Plans (IMP) and Integrated Master Schedules (IMS) EVMS compliant processes and artifacts.
Other PMSC documents address specific aspects of the EVM process, such as the Earned Value Management System Acceptance Guide, the Integrated Baseline Reviews Guide and the Surveillance Guide.
At set contract value thresholds, the Office of Management and Budget (OMB), Federal Acquisition Regulations (FAR), and Defense Acquisition Regulations (DFAR) requires the government program offices to ensure their supplier's program management system meets the intent of the Earned Value Management Systems (EVMS) of the ANSI 748 standard.
In some cases these systems must be validated by the Defense Contract Management Agency (DCMA) as being compliant with the ANSI standard. The NDIA continues to work with government and industry to drive the evolution of standards for Earned Value Management systems implementation and acceptance in the United States and internationally.
Humphreys and Associates has been an active participant in the NDIA PMSC for more than 35 years. Three of our consultants, including the founder of the company, were part of the eight person committee that developed the ANSI/EIA 748 Standard for EVMS. We also have 3 past chairs, of the National Defense Industrial Association (NDIA) Program Management Systems Committee (PMSC) on our staff.
Our consultants continue to be active participates in the working groups responsible for the system guides and the continuing improvement of the EVMS guidelines. Humphreys and Associates is the industry leader in earned value management systems design, implementation and EVMS training.
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