EVM Definitions

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

A

• Above Target Budget (ATB): Represents the difference between the Total Allocated Budget (TAB) and Contract Budget Base (CBB). The ATB reflects all projected additional budget plus additional Management Reserve (MR), if added, in the post-Over Target Baseline (OTB) performance measurement budgets. (Replaces the former term Over Target Budget)
• Acceptance Authority (Earned Value Management System (EVMS) Acceptance Authority): The Cognizant Federal Agency responsible for assessing and determining that an EVMS is compliant with the guidelines in the Electronic Industries Alliance 748 (EIA-748).
• Activity: See Task
• Actual Cost of Work Performed (ACWP): The costs incurred and recorded in the accounting system, adjusted for differences (e.g., due to estimates for material costs, billing lags, subcontractor billing adjustments), for accomplishing the work performed within a given time period. May be expressed as a value for a specific period, or cumulative to date.
• Actual Duration (AD): The difference (generally in workdays) that have passed from the actual start of a task up to the status date (in-process tasks) or the actual finish (completed tasks). The actual duration of a task that has not started is zero.
• Actual Finish (AF): The date when a specific task or milestone (or in Earned Value Management (EVM) in a particular Control Account (CA) or Work Package (WP)) completed.
• Actual Start (AS): The date when a specific task or milestone (or in Earned Value Management (EVM) in a particular Control Account (CA) or Work Package (WP)) began.
• Apportioned Effort: Effort that by itself is not readily measured or divisible into discrete Work Packages (WP) but is related in direct proportion to the planning and performance of other discrete effort.
• Approved Earned Value Management System (EVMS): An EVMS approval is based on a determination from a compliance review by the Acceptance Authority. The compliance review is based on an evaluation of the system description, demonstration of system implementation, and the quality of the system providing timely, accurate and reliable information.
• Authorized Unpriced Work (AUW): A contract scope change which has been directed by the Government contracting officer but has not yet been fully negotiated/definitized. This includes a value, excluding fee or profit, typically associated with the unpriced contract action.

B

• Backward Pass: As part of the critical path determination, it calculates the Late Start (LS) and Late Finish (LF) dates for each task and milestone based on schedule logic, constraints, and estimated durations. It is performed after completion of the Forward Pass.
• Baseline Change: Any change to the cost, schedule or technical baseline; typically, subject to a formally established change control process.
• Baseline Change Request (BCR): See Change Request
• Baseline Execution Index (BEI): An Integrated Master Schedule (IMS) based metric that measures the number of tasks completed as a ratio to those tasks that should have completed to date according to the Baseline Schedule. BEI = (# of Baseline Tasks with Actual Finish Date) / (# of Baseline Tasks Scheduled to Finish Prior to Status Date). While there may be exceptions under certain circumstances, programs typically exclude the following activity categories from the calculations: Level of Effort (LOE) and Milestones.
• Baseline Schedule: The original time-phased plan, and formally approved changes incorporated into the Integrated Master Schedule (IMS) against which schedule status is compared or measured.
• Block Planning: The periodic process of converting Summary Level Planning Packages (SLPPs) into Control Accounts (CAs) and CA Planning Packages (PPs) into Work Packages (WPs). The time period chosen reflects blocks of time from a specific date (or contractual milestone) to a subsequent specific date (or contractual milestone). (See Rolling Wave Planning)
• Budget at Completion (BAC): The sum of all budget established for the contract for any given level of the hierarchy (e.g., Work Package (WP), Control Account (CA), Work Breakdown Structure (WBS), Organizational Breakdown Structure (OBS), Performance Measurement Baseline (PMB, total contract level). (See Total Allocated Budget (TAB))
• Budgeted Cost for Work Performed (BCWP): The sum of the budgets for completed Work Packages (WP) and completed portions of open WPs, plus the applicable portion of the budgets for Level of Effort (LOE) and Apportioned Effort. May be expressed as a value for a specific period or cumulative to date. (Also referred to as Earned Value (EV))
• Budgeted Cost for Work Remaining (BCWR): Represents that portion of the budget not yet accomplished for any given level of the hierarchy (e.g., Work Package (WP), Control Account (CA), Work Breakdown Structure (WBS), Organizational Breakdown Structure (OBS), Performance Measurement Baseline (PMB)).
• Budgeted Cost for Work Scheduled (BCWS): The sum of the budgets for any given level of the hierarchy (e.g., Work Package (WP), Control Account (CA), Work Breakdown Structure (WBS), Organizational Breakdown Structure (OBS), Performance Measurement Baseline (PMB)) scheduled to be accomplished, plus the amount of Level of Effort (LOE) and apportioned effort scheduled to be accomplished within a given time period. May be expressed as a value for a specific period, or cumulative to date.

C

• Calendars: Calendars in the Integrated Master Schedule (IMS) define available and non-work time periods (e.g., holidays, weekends). Calendars can be established and assigned at the program, task(s), and resource (personnel or physical equipment) level. The calendar assigned to tasks and milestones impact duration calculations and forecast dates.
• Change Request: The proposal routed through the established change control process detailing the proposed changes to scope, cost, or schedule, as well as the rationale for the change. Often referred to as Baseline Change Request (BCR).

• Comprehensive Estimate at Completion (CEAC): An EAC developed by the contractor periodically, but at least annually, using all the available information to determine a realistic contract-level forecast. This is performed by considering the same factors included in the monthly EAC evaluation (see EAC) at the Control Account (CA) level, which includes increased formality and an evaluation of both direct and indirect performance-to-date efficiency achieved by performing organizations for completed work and comparing it to remaining budgets, forecasts, and scope of work; assessing commitment values for material to complete the remaining work; estimates of resources required (labor, material, subcontracts) to complete all remaining work; and evaluation of subcontractor / inter-divisional work assessments of cost to complete their work. Estimates for Summary Level Planning Packages (SLPPs) and Undistributed Budget (UB) are reviewed to ensure that the work scope and estimated resource to complete the work are realistic. EAC = cumulative Actual Cost of Work Performed (ACWPcum) + Estimate to Complete (ETC).

  Additionally at the contract level, programmatic considerations are estimated such as impacts from risks and opportunities and future conditions (e.g., projected rate changes, process improvements and economic factors) are reported as the program manager's Management EAC (see Management EAC).

• Contract Budget Base (CBB): The Negotiated Contract Cost (NCC) plus the estimated cost of Authorized Unpriced Work (AUW). The CBB includes Performance Measurement Baseline (PMB) and Management Reserve (MR). It is the same as Total Allocated Budget (TAB) except when there is an Over Target Baseline (OTB), see definition for TAB.
• Contract Funds Status Report (CFSR): The CFSR, or DD Form 1586, is designed to supply funding data about defense contracts to Program Managers for: (a) updating and forecasting contract funds requirements, (b) planning and decision making on funding changes to contracts, (c) developing funds requirements and budget estimates in support of approved programs, (d) determining funds in excess of contract needs and available for de-obligation, and (e) obtaining rough estimates of termination costs.
• Contract Performance Dataset (CPD): The cost component of the Integrated Program Management Data and Analysis Report (IPMDAR) reporting requirement as outlined in the Data Item Description (DID). The IPMDAR CPD follows a relational data model (represented by JavaScript Object Notation (JSON) encoded data tables) intended to capture contract, effort, or Contract Line Item Number (CLIN) level baseline and execution cost and hours information at a fixed point in time at a sufficient level of detail to enable reliable analysis of contract execution. The CPD captures a snapshot of the execution data from the Earned Value Management System (EVMS), including contract metadata, the Work Breakdown Structure (WBS), Organizational Structure (previously Organizational Breakdown Structure(OBS)), contractor reporting calendar, Control Account (CA) definitions, optional Work Package (WP) definitions, to-date contract performance metrics (hours and dollars by Element of Cost (EOC)) by CA (or WP), and time-phased future baseline (Budgeted Cost for Work Scheduled (BCWS)) and Estimate to Complete (ETC) forecast by CA (or WP).
• Contract Performance Report (CPR): A legacy contractually required report defined in Data Item Description (DID) DI-MGMT-81466A. The CPR is normally prepared each month to formally provide technical, schedule and cost status information for company project management and for the government customer on major projects when Earned Value Management (EVM) reporting is required. The purpose of the CPR is to provide early identification of problems that may have significant cost, schedule and/or technical impacts, and report the effects of management actions and project status information for use in making and validating management decisions. The CPR DID was superseded in June 2012 by the Integrated Program Management Report (IPMR) DID, DI-MGMT-81861A and the IPMR was then superseded by the Integrated Program Management Data and Analysis Report (IPMDAR) DID DI-MGMT-81861C in 2020.
• Contract Work Breakdown Structure (CWBS): The product-oriented decomposition of all authorized contract work into major elements that include all the hardware, software, data and services that are the responsibility of the contractor. It includes the customer approved WBS for reporting purposes and its discretionary extension to lower levels by the contractor, in accordance with Government direction and the contract work statement.
• Control Account (CA): A management control point at which budgets (resource plans) and actual costs are accumulated and compared to earned value for management control purposes. It is defined as the point where organizational responsibility is assigned for the accomplishment of a defined segment of work within a single Work Breakdown Structure (WBS) element.
• Control Account Manager (CAM): A single manager within the contractor's organizational structure that has been given the authority and responsibility to manage one or more Control Accounts (CAs).
• Control Account Plan (CAP): The documented plan of the time-phased integration of scope, schedule and resource budgets by element of cost for all Control Account (CA) authorized work.
• Cost Account: Former term for "Control Account".
• Cost Performance Index (CPI): An efficiency factor representing the relationship between the performance accomplished (Budgeted Cost for Work Performed (BCWP)) and the actual cost expended (Actual Cost of Work Performed (ACWP)). CPI = BCWP / ACWP. A value over 1.0 indicates favorable cost performance (underrun), while a value under one indicates unfavorable cost performance (overrun). CPI can be calculated for current period (monthly) or cumulative (to date).
• Cost Variance (CV): An output of the Earned Value Management System (EVMS) that measures cost overrun or cost underrun relative to the program Performance Measurement Baseline (PMB). It is equal to the difference between Budgeted Cost for Work Performed (BCWP) and Actual Cost of Work Performed (ACWP). CV = BCWP - ACWP. CV can be calculated for current period (monthly) or cumulative (to date).
• Critical Path (CP): The longest sequence of tasks from Time-now to the program end date. If a task on the critical path slips, the program end date will slip. Critical Paths may start to the right of Time-now if the driver to the path originates from any constrained task or milestone utilized as an input to the program schedule.
• Critical Path Analysis (CPA): A network analysis technique used to predict project duration by analyzing which sequence of tasks and milestones (which path) has the least amount of scheduling flexibility (the least amount of float).
• Critical Path Length Index (CPLI): A schedule ratio that uses the remaining duration of a project (Critical Path (CP)) and the critical path total float to quantify the likelihood of meeting the project completion requirement. CPLI =[(Critical Path Length in Workdays) + (Total Float Value)] / (Critical Path Length in Workdays). A value greater than 1 indicates a lower risk; a value equal to 1 indicates a moderate risk; a value less than 1 indicates a higher risk.
• Critical Path Method (CPM): A technique that uses the network of events in a project and the time required to complete them to calculate float. Tasks and milestones that, when delayed, have an impact on the total project schedule are said to be "critical" and on the Critical Path (CP).
• Critical Schedule Element: A discrete task or milestone that resides on the Critical Path (CP).
• Current Execution Index (CEI): A schedule execution metric that measures how accurately the project is forecasting and executing from one period to the next. In establishing the ratio for CEI, the denominator represents the number of tasks forecasted to finish within the status period at the start of the period and the numerator represents the number of that same population of tasks that actually finished within the status period. CEI = # of tasks that have an Actual Finish Date in the status period (of the tasks forecasted to finish) / # of tasks forecasted to finish in the status period
• Current Period: The open accounting period in which the contract is currently executing.

D

• Data Date: See Time-now
• Deadline Constraint: Denotes those tasks or milestones that are not restricted from having their start and/or finish dates move to the right (i.e., be later) but can experience/display negative float (see Negative Float term) as a result of the move. Note: 'Deadline Constraints' are unique in that when they are removed from the Integrated Master Schedule (IMS), the only change that could result is on Total Float (TF) values on the task and milestones as their start and finish dates will not have changed.
• Detail Planning: The act of decomposing the scope, schedule and budget of a Planning Package (PP) into one or more Work Packages (WP) with Earned Value Techniques (EVTs). Additionally, may include the act of further decomposing the scope, schedule and budget of a Summary Level Planning Package (SLPP) into one or more Control Accounts (CA).
• Discrete Effort: Scope (e.g., tasks, Work Packages (WPs)) related to the completion of specific end products or services and can be directly planned and measured.
• Distributed Budget: Budget that is allocated to Control Accounts (CAs), Work Packages (WPs), Planning Packages (PPs) and Summary Level Planning Packages (SLPPs).
• Driving Path: The longest sequence of tasks from Time-now to an interim program milestone. If a task on a Driving Path slips, the interim program milestone will slip. Driving Path(s) may start to the right of Time-now if the driver to the path originates from any constrained task or milestone utilized as an input to the program schedule.
• Duration: The number of work periods (not including holidays or other nonworking periods) to complete a task or other project element, and usually expressed as workdays.

E

• Early Finish (EF): The earliest possible finish date for an Integrated Master Schedule (IMS) task or milestone based on the schedule logic, constraints and estimated durations.
• Early Start (ES): The earliest possible start date for an Integrated Master Schedule (IMS) task or milestone based on the schedule logic, constraints and estimated durations.
• Earned Schedule (ES): The amount of time originally planned for in the Baseline Schedule (used to time-phase the Budgeted Cost for Work Scheduled (BCWS)), to reach the current total of Budgeted Cost for Work Performed (BCWP). In a broad sense, earned schedule is also an analytical technique that uses the exact same data as Earned Value Management (EVM), except the resulting schedule indicators are time-based, not cost-based.
• Earned Value (EV): See Budget Cost for Work Performed (BCWP)
• Earned Value Management (EVM): A project management discipline methodology, which integrates a project's technical scope, schedule, and resources (cost) with project risk in a baseline plan, against which progress is measured. It provides metrics indicative of progress and performance trends useful for management decision-making.
• Earned Value Management Central Repository (EVM-CR): A web-based data repository managed by Office of the Under Secretary of Defense for Acquisition & Sustainment (OUSD(A&S)) Acquisition Policy and Innovation (API) that provides centralized reporting, collection, and distribution for Key Acquisition EVM data. The EVM-CR is a reliable authoritative source for EVM data and provides access for Office of the Secretary of Defense (OSD), the Services, and the Department of Defense (DoD) Components to Contract Performance Report (CPR), Integrated Master Schedule (IMS), Integrated Program Management Report (IPMR), and Integrated Program Management Data and Analysis Report (IPMDAR) Cost & Schedule reports as well as Contract Funds Status Reports (CFSR). These reports are submitted by contractors and reviewed by Program Management Offices (PMOs) for required programs.
• Earned Value Management Implementation Guide (EVMIG): The Department of Defense (DoD) guide describes EVM Concepts and Guidelines and provides guidance for Government use of EVM, including guidance for applying EVM requirements to contracts, an introduction to analyzing performance, and a discussion of baseline review and maintenance and other post award activities.
• Earned Value Management (EVM) Percent Complete: The percent of the planned work performed. This is calculated by dividing the cumulative Budgeted Cost for Work Performed (BCWPcum) by the Budget at Completion (BAC). % Complete = (BCWPcum / BAC) * 100
• Earned Value Management System (EVMS): A company's management system for project/program management that integrates a contract's work scope, schedule, technical achievement, and budget for effective contract planning, performance, and management control.
• Earned Value Management System (EVMS) Guidelines: Management system characteristics defined in the Electronic Industries Alliance 748 (EIA-748) (current version) Standard that establish the framework for a contractor's EVMS.
• Earned Value Management System Interpretation Guide (EVMSIG): The basis for the Department of Defense (DoD) to assess EVMS compliance to the Electronic Industries Alliance 748 (EIA-748) Guidelines. It was developed in collaboration with DoD EVMS experts from the Office of the Secretary of Defense (OSD) and the organizations responsible for conducting EVMS compliance reviews (i.e., Defense Contract Management Agency (DCMA), Intelligence Community (IC), and Navy Shipbuilding (SUPSHIP)).
• Earned Value Management System (EVMS) Surveillance: A recurring process for assessing the continuous compliance of the contractor's EVMS against the Guidelines in Electronic Industries Alliance 748 (EIA-748) Standard.
• Earned Value Technique (EVT): A specific technique (e.g., Milestone Method, Percent Complete, 50/50, 0/100, Units Complete, Apportioned Effort, Level of Effort (LOE), etc.) selected to represent the measurement of work scope progress and accomplishment in a Work Package (WP).
• Electronic Industries Alliance (EIA) - 748 Accepted Earned Value Management System (EVMS): An Earned Value Management System (EVMS) that has been formally accepted by the Acceptance Authority as compliant with the EIA-748 guidelines. This acceptance is typically documented with an EVMS compliance recognition document. Acceptance may be documented at a single geographic location or for multiple locations. Multiple accepted systems may also reside within a single geographic location.
• Electronic Industries Alliance (EIA) -748 Earned Value Management System (EVMS) Standard: An Industry standard used by contractors and some federal agencies for the design and implementation of Earned Value Management System (EVMS) on projects, contracts and major subcontracts. It defines the management system characteristics and implementation guidance for EVMS.
• Element of Cost (EOC): In accordance with the Cost Accounting Standards Board (CASB) disclosure statements and/or accounting procedures, product costs are decomposed into the Elements of Cost (EOC). These elements are comprised of direct costs of labor, materials, subcontracts, other direct costs (ODCs), and indirect costs (e.g., Overhead (OH), General & Administrative (G&A), and Cost of Money (COM)).
• Estimate at Completion (EAC): On a monthly basis, the Contractor reviews the status of completed work and the achievability of the forecast for the work remaining. The calculation is the sum of Actual Cost of Work Performed (ACWP) plus the Estimate to Complete (ETC). EAC = cumulative ACWP (or ACWPcum) + ETC. This analysis focuses on the performance-to-date within the Control Account (CA), an assessment to complete the remaining work in both Work Packages (WPs) and Planning Packages (PPs), and an evaluation of the types and quantities of resources required to complete the work. This evaluation includes expected labor rate changes, price variances identified both at the point of usage for needed material items, and the expected impact of indirect rate changes. The summation of CAs, Summary Level Planning Packages (SLPPs), and Undistributed Budget (UB) elements equal the Performance Measurement Baseline (PMB) level EAC. For Program Manager Level EAC, see Management EAC.
• Estimate to Complete (ETC): The estimated cost to complete remaining authorized contract scope, with consideration of remaining schedule forecasts, resource requirements, projected efficiencies, issues, risks, and opportunities. The ETC is estimated at lowest structure levels (e.g., Work Package (WP), Planning Package (PP)). ETC summarizes from lowest level to the Control Account (CA) and up through the Work Breakdown Structure (WBS)/Organizational Breakdown Structure (OBS), inclusive of Summary Level Planning Packages (SLPPs) and Undistributed Budget (UB), to the program manager's Management Estimate at Completion level.
• Estimated Actuals: Estimated costs temporarily entered into the Earned Value Management System (EVMS) to ensure accuracy of actual cost based on work performed.
• Estimated Completion Date (ECD): Estimated date to complete all remaining work.
• Estimated Cost: See Estimated Actuals

F

• Finish-to-Finish (FF): A logical relationship used in the Integrated Master Schedule (IMS) that establishes the following rule between two tasks or milestones: the succeeding task or milestone cannot finish until a preceding task or milestone finishes.
• Finish-to-Start (FS): A logical relationship used in the Integrated Master Schedule (IMS) that establishes the following rule between two tasks or milestones: the succeeding task or milestone cannot start until a preceding task or milestone finishes.
• Formal Reprogramming: A comprehensive replanning of the remaining Performance Measurement Baseline (PMB) that results in a total budget and/or total schedule in excess of contractual requirements. Formal reprogramming is the process that results in an Over Target Baseline (OTB) and/or an Over Target Schedule (OTS).
• Forward Pass: As part of the critical path determination, it determines the Early Start (ES) and Early Finish (EF) dates for all tasks and milestones. It is a calculation based on the schedule logic, constraints, and estimated durations to determine the earliest each subsequent task or milestone can start and the earliest that the project can finish. It is performed prior to the Backward Pass.
• Free Float: The amount of time between a task or milestone and its next closest successor / calculated by taking the difference between a task's or milestone's Early Finish (EF) date and Early Start (ES) date of its next closest successor. The amount of time an activity can be delayed before it will impact the forecast of its next closest successor. Free Float is synonymous with Free Slack.
• Free Slack: See Free Float
• Freeze Period: The period of time during which changes to current and future performance measurement data are limited and require specific control and approval before being implemented (e.g., current accounting period plus one).

H

• Hammock: A task whose start and finish are derived from the start or finish of other tasks or milestones. The durations will automatically adjust with the dates of associated tasks or milestones. The start and finish of this type of task may be defined by a linked date constraint to other tasks or, alternatively, determined from the predecessors (e.g., start to start) and successors (e.g.,. finish to finish) of the Hammock. The duration is not based on a grouping of tasks or milestones.
• Hard Constraint: Constrains the task or milestone start or finish to be on or no later than the constraint date. Holds the forecast date to the constraint date, or prevents the forecast date from moving later than the constraint date based on schedule logic.
• Horizontal Integration: The logical relationships and time-phasing between tasks and milestones from program start to finish.

I

• Independent Estimate at Completion (IEAC): Typically a range of statistical EACs. This can be represented in a most likely value or estimated range based on assessment of historical project performance independent of organizational influence and free of analytical bias or preconceived notions. It is commonly used to evaluate the reasonableness and realism of the contractor's most likely EAC to include opportunities, risk, and uncertainty. Typically, if used, performance factors are determined with engineering judgement to establish future performance expectations. EAC = cumulative Actual Cost of Work Performed (ACWP) or ACWPcum + Estimate to Complete (ETC)
• Integrated Baseline Review (IBR): Review of a contractor's Performance Measurement Baseline (PMB). It is conducted by Program Managers (PMs) and their technical staff (or Integrated Product Teams (IPTs)) on contracts requiring compliance with Department of Defense (DoD) Earned Value Management System (EVMS) guidelines. The Government and the Contractor jointly assess the Contractor's baseline, management processes, and performance measurements to ensure achievability, realism, complete coverage of authorized scope, logical scheduling of work, adequate resourcing, and identification of inherent risks. For compliance with DoD EVMS requirements, the IBR is held  within six months after contract award. Subsequent IBRs may be required during contract execution, such as during implementation of an Over Target Baseline (OTB) or major contract modification.
• Integrated Master Plan (IMP): A detailed document consisting of business process narratives and an event-based plan consisting of a hierarchy of project Events, with each being supported by specific Accomplishments, and each Accomplishment associated with specific Criteria to be satisfied for its completion.
• Integrated Master Schedule (IMS): A fully networked and logically driven schedule capturing all program scope with the exception of Level of Effort (LOE), which is optional.  The IMS defines the Performance Measurement Baseline (PMB) period of performance in baseline and forecast.  All IMS data is integrated with the Statement of Work (SOW), Work Breakdown Structure (WBS), Organizational Breakdown Structure (OBS), Earned Value Management System (EVMS), and Integrated Master Plan (IMP) (if applicable). The IMS has all of the data elements required to calculate critical and driving path(s).
• Integrated Program Management (IPM): A disciplined management approach that integrates multiple programmatic inputs (e.g., cost, schedule, technical, risk) to gain a more comprehensive view of performance status, health and risk. The ultimate goal of IPM is successful execution to contracted scope, schedule and cost.
• Integrated Program Management Data and Analysis Report (IPMDAR): A contractually required electronic reporting deliverable defined in the latest Data Item Description (DID) post DI-MGMT-81861A consisting of a Contract Performance Dataset (CPD), Schedule Performance Dataset (SPD), native Integrated Master Schedule (IMS), and Performance Narrative Report (PNR). Normally generated monthly to formally provide cost and schedule status information for project management on major government projects where the Earned Value Management System (EVMS) clause is on contract. The IPMDAR DID supersedes the Integrated Program Management Report (IPMR) DID DI-MGMT-81861A.
• Integrated Program Management Report (IPMR): A contractually required electronic reporting deliverable defined in the Data Item Description (DID) DI-MGMT-81861A consisting of a formats 1-7. Normally generated monthly to formally provide cost and schedule status information for project management on major government projects where the Earned Value Management System (EVMS) clause is on contract. The Integrated Program Management Data and Analysis Report (IPMDAR) DID supersedes the IPMR DID DI-MGMT-81861A.
• Internal Replanning: Replanning actions performed by the contractor for the remaining effort within the authorized contract scope, Total Allocated Budget (TAB), and schedule baseline period of performance and contractual milestones.

L

• Labor Cost Variance Formulae: The Labor Cost Variance is the difference between the earned value for completed labor activities (Budgeted Cost for Work Performed (BCWP)) minus the actual costs for completion of those activities.

  • A labor cost variance has two components: rate differences and volume differences.

    • The formula for the Rate Variance component is: (Budget Rate - Actual Rate) x Actual Hours
    • The formula for the Volume Variance component is: (Earned Hours - Actual Hours) x Budget Rate

  • Labor Cost Variance = Rate Variance + Volume Variance

  Note: Budget Rate = Earned Rate; Volume = Efficiency
• Labor Rate Variance: See Labor Cost Variance Formulae
• Labor Volume Variance: See Labor Cost Variance Formulae
• Lag: A scheduling option that inserts a delay between a task or milestone and its successor in an Integrated Master Schedule (IMS).
• Late Finish (LF): The latest date an Integrated Master Schedule (IMS) task or milestone can finish without delaying the project completion, or other date constraint, based on the logic and durations within the schedule network. Also see Backward Pass.
• Late Start (LS): The latest date an Integrated Master Schedule (IMS) task or milestone can start without delaying the project completion, or other date constraint, based on the logic and durations within the schedule network. Also see Backward Pass.
• Lead: A schedule option that models an overlap (i.e., negative lag) between two logically linked IMS schedule tasks or milestones.
• Level of Effort (LOE): Work defined as supportive in nature that lacks measurable output or as a product that cannot be discretely planned and objectively measured. Work Packages with the LOE EVT automatically earn performance with the passage of time.

M

• Management Estimate at Completion (EAC): Program Manager's assessment of contract-level forecast builds upon the Performance Measurement Baseline (PMB) Level EAC updated monthly or the Comprehensive EAC (CEAC). Adjustments can be made for impacts from risks and opportunities and other factors based on Program Manager insight. The Program Manager's EAC includes a range of estimates: Best Case, Worst Case, and Most Likely. EAC = cumulative Actual Cost of Work Performed (ACWP) or ACWPcum + Estimate to Complete (ETC)
• Management Reserve (MR): The value of Total Allocated Budget (TAB) withheld for management control purposes, risks, opportunities, and unplanned in-scope effort. It is not part of the Performance Measurement Baseline (PMB).

• Material Cost Variance Formulae: The Material Cost Variance is the difference between the earned value for completed material (Budgeted Cost for Work Performed (BCWP)) minus the actual costs for the material.

  • A material cost variance has two components: price differences and usage differences.

    • The formula for the Price Variance component is: (Budget Price - Actual Price) x Actual Quantity
    • The formula for the Usage Variance component is: (Earned Quantity - Actual Quantity) x Budget Price

  • Material Cost Variance = Price Variance + Use Variance

  Note: Quantity = Number of Units; Budget Price = Earned Unit Price
• Material Price Variance: See Material Cost Variance Formulae
• Material Usage Variance: See Material Cost Variance Formulae
• Milestone: A unique type of schedule element that has zero-duration. A milestone may mark the start, an interim step, or the end of one or more activities.

N

• Negative Total Float: It occurs when the schedule logic drives the projected completion of a task or milestone beyond a constraint date (such as a contractual milestone date), indicating the current schedule is no longer achievable. The negative float value directly relates to the amount of worktime (e.g., workdays) that must be recovered in order to meet the milestone or activity with the constraint date. Negative Total Float is synonymous with Negative Total Slack.
• Negative Total Slack: See Negative Total Float
• Negotiated Contract Cost (NCC): The current dollar value (excluding fee, profit, or cost growth/overruns) on which contractual agreement was reached in the most recently definitized modification. NCC + Authorized Unpriced Work (AUW) is the basis for the Contract Budget Base (CBB).
• Network Schedule: A schedule format in which tasks and milestones are planned and scheduled along with their relational interdependencies, constraints, and durations. The network schedule is a model of all effort related to the program; it establishes the order of tasks and milestones planned to be accomplished and also the earliest and latest dates on which those activities can be started and finished to complete the program on time. Network schedules are the basis for critical/driving path analysis, which is a method for identification and assessment of schedule priorities and impacts.

O

• Organizational Breakdown Structure (OBS): The hierarchical alpha-numeric unique coding structure of the contract organization structure (see Organizational Structure).
• Organizational Structure: The arrangement of the organization established to manage the resources tasked with performing the work on a specific contract or program.
• Original Baseline: The initial budget, schedule, and technical plan established at the beginning of an effort following contract award or authorization to proceed without adjustments or revisions.
• Over Target Baseline (OTB): A new baseline for management when the original objectives cannot be met and new goals are needed for management purposes. Additionally, an OTB is a Total Allocated Budget (TAB) that has been formally reprogrammed to include additional performance measurement budget (Above Target Budget (ATB)) in excess of the Contract Budget Base (CBB). The CBB is not adjusted as a result of the OTB.
• Over Target Schedule (OTS): An updated schedule baseline that extends beyond the contractual milestones, delivery dates, and/or period of performance.

P

• Performance Measurement Baseline (PMB): A time-phased resourced plan against which the accomplishment of all in-scope authorized work can be measured. Comprised of all distributed and Undistributed Budget (UB). The PMB is traceable to the baseline dates in the Integrated Master Schedule (IMS).
• Planning Package (PP): A logical aggregation of future work (i.e., authorized scope, schedule and budget) within a Control Account (CA) that cannot yet be detail planned at the Work Package (WP) or task level. Performance cannot be taken against a PP.
• Price Variance (PV): See Material Cost Variance Formulae
• Program Evaluation and Review Technique (PERT) Cost Formula: An Earned Value Technique (EVT) calculating Budgeted Cost for Work Performed (BCWP) by comparing the Actual Cost of Work Performed (ACWP) of received material to the expected total cost for that material (Estimate at Completion (EAC)) and applying the resulting percentage to the originally budgeted value for the material (Budget at Completion (BAC)). BCWP = (ACWP / EAC) x BAC.
• Program Work Breakdown Structure (PWBS): The WBS that encompasses an entire program, including the Contract Work Breakdown Structure(s) (CWBSs) and “other government” elements (e.g., program office operations, manpower, Government Furnished Equipment (GFE), government testing). It defines at a high level what is to be procured and consists of at least three program levels with associated definitions. The PWBS is used by the government Program Manager (PM) and contractor to develop and extend a CWBS.

Q

• Quantifiable Backup Data (QBD): Term used to identify incremental-milestones representing measurable physical accomplishment within each accounting period of a work package (WP). QBDs provide objective indicators of performance measurement and can reside within or external to the Integrated Master Schedule (IMS). QBDs are sometimes referred to as inch-stones, steps, or lower-level schedules.

R

• Rate Variance: See Material Cost Variance Formulae
• Remaining Duration (RD): The number of workdays forecasted to complete an unstarted task or to complete the unfinished portion of an in-progress task. The remaining duration of a completed task is zero.
• Resource: Anything required to complete an activity, project, or program. Resources can include people (labor), equipment, facilities, material, and subcontractors. Ultimately, resources are measured in dollars (or appropriate currency) although labor resources may also be measured in hours.
• Responsibility Assignment Matrix (RAM): A chart showing the relationship between the Contract Work Breakdown Structure (CWBS) elements and the Organizational Breakdown Structure (OBS) to ensure work accomplishment. The RAM depicts the assignment of each Control Account (CA) to a single manager. When resource values are applied to these relationships, it may be referred to as a dollarized RAM.
• Rolling Wave: The continuous process of converting Summary Level Planning Packages (SLPPs) into Control Accounts (CAs) and CA Planning Packages (PPs) into Work Packages (WPs).

S

• Schedule Baseline: See Baseline Schedule
• Schedule Margin Task (SMT): It is the last predecessor to a contract milestone and does not have assigned resources. An optional technique for schedule risk management. The schedule margin task duration is justifiable and substantiated with the risk management approach (i.e., risk register, Schedule Risk Assessment (SRA) results, or other risk assessment information).
• Schedule Performance Dataset (SPD): The schedule component of the Integrated Program Management Data and Analysis Report (IPMDAR) reporting requirements as outlined in the Data Item Description (DID). The IPMDAR SPD follows a relational data model (represented by JavaScript Object Notation (JSON) encoded data tables) intended to capture the structure and status of an Integrated Master Schedule (IMS) at a fixed point in time at a sufficient level of detail to enable reliable static analysis. The SPD captures a snapshot of the detailed IMS data and results, including contract metadata, Task plan/baseline, current schedule results, schedule logic and constraints, and resource planning contained within the IMS. NOTE: If both Cost Performance Dataset (CPD) and SPD reporting is required, then task definitions within the SPD are linked to the CPD via the Work Breakdown Structure (WBS), Organizational Breakdown Structure (OBS), Control Account (CA), and Work Package (WP) definitions as defined within the CPD.
• Schedule Performance Index (SPI): An efficiency factor representing the relationship between the performance accomplished (Budgeted Cost for Work Performed (BCWP)) and work planned (Budgeted Cost for Work Scheduled (BCWS)). SPI = BCWP / BCWS. A value greater than 1.0 indicates favorable schedule performance (ahead of schedule), while a value less than 1.0 indicates an unfavorable schedule performance (behind schedule). SPI can be calculated for current period (monthly), cumulative (to date), or for specific time periods. SPI of 1.0 indicates on-plan performance or the effort is complete.
• Schedule Risk Assessment (SRA): A process which uses statistical techniques to identify technical, programmatic, and schedule risks in a program and quantifies the impact of those risks on the program's schedule.
• Schedule Variance (SV): A metric for showing schedule performance derived from earned value data. It is the mathematical difference between Budgeted Cost for Work Performed (BCWP) and Budgeted Cost for Work Scheduled (BCWS). SV = BCWP - BCWS. A positive value indicates a favorable condition and a negative value indicates an unfavorable condition. It may be expressed in units such as dollars or hours, or can be presented as a percentage. SV can be calculated for current period (monthly), cumulative (to date), or for specific time periods. SV of 0 indicates on-plan performance or the effort is complete.
• Schedule Visibility Task (SVT): A schedule task with no resources that provides management visibility into a timespan that may otherwise be modelled in the Integrated Master Schedule (IMS) with a lag or constrained milestone. SVT is not part of the budgeted program scope in the Performance Measurement Baseline (PMB) and cannot be used for Earned Value (EV) performance. Examples of SVT include wait time and Government review period. SVT is clearly and consistently identified.
• Single Point Adjustment (SPA): Process that eliminates cumulative cost and/or schedule variances at any level of the hierarchy and typically accompanies a replan of all remaining effort with the goal of completing the project on schedule and on budget.
• Soft Constraint: Constrains the task or milestone start or finish forecast to be no earlier than the constraint date (i.e., restricts only movement to the left). Allows forecast dates to move later than the constraint date based on schedule logic.
• Start-to-Finish (SF): A logical relationship used in the Integrated Master Schedule (IMS) that establishes the following rule between two tasks or milestones: the succeeding task or milestone cannot complete until a preceding task or milestone starts. Valid use of a start-to-finish relationship is extremely rare in most project schedules.
• Start-to-Start (SS): A logical relationship used in the Integrated Master Schedule (IMS) that establishes the following rule between two tasks or milestones: the succeeding task or milestone cannot start until a preceding task or milestone starts.
• Summary: A schedule element derived from a hierarchal task outline structure with the start defined by the start date of the earliest child task and the finish defined by the finish date of the latest child task.
• Summary Level Planning Package (SLPP): An aggregation of work for far-term efforts that are not able to be identified at the Control Account (CA) level but can be distributed to reporting level Work Breakdown Structure (WBS) elements (and, therefore, are not Undistributed Budget (UB)).
• System Description (SD): The set or series of integrated process descriptions/procedures that describe a contractor's Earned Value Management System (EVMS).

T

• Task: A schedule element that has an expected duration greater than zero and may have expected cost and expected resource requirements. Task is synonymous with activity.
• Task Owner: The individual responsible for executing a task.
• Time-now: The date that the Earned Value Management System (EVMS) or scheduling tool treats as "today" (also known as the data date, update, or status date) - all dates "to the left" of Time-now are considered to be "in the past" - all dates "to the right" of Time-now are considered to be "in the future."
• To Complete Performance Index (TCPI): The future cost efficiency needed to accomplish the remaining work within Budget at Completion (BAC) or the Estimate at Completion (EAC). It compares the budget for remaining work with the remaining cost or the estimated remaining cost to complete the work. TCPIBAC = (BAC - Budgeted Cost for Work Performed or BCWPcum) / (BAC - Actual Cost of Work Performed or ACWPcum) or TCPIEAC = (BAC - BCWPcum) / (EAC - ACWPcum), where "cum" means "cumulative". Compare the TCPI with the CPI to determine if the BAC or the EAC is realistic or not.
• Total Allocated Budget (TAB): The sum of all budgets allocated to the contract consisting of the Performance Measurement Baseline (PMB) plus all Management Reserve (MR) and will reconcile directly to the Contract Budget Base (CBB), plus any agreed-to Above Target Budget (ATB).
• Total Float (TF): The amount of time a task or milestone can slip before impacting the end date of the driving and/or critical path(s) as established by the forward and backward pass. It is calculated by taking the difference between a task's or milestone's late date and early date. It is synonymous with Total Slack.
• Total Slack: See Total Float

U

• Undistributed Budget (UB): A temporary holding account for budget associated with authorized scope that has not been distributed to a Control Account (CA) or Summary Level Planning Package (SLPP).
• Usage Variance (UV): See Material Cost Variance Formulae

V

• Variance Analysis Report (VAR): A narrative that provides insight into the root cause(s), impact(s), and corrective action(s) for cost and/or schedule issues occurring on a program.
• Variance at Completion (VAC): The difference between the Budget at Completion (BAC) and the Estimate at Completion (EAC). VAC = BAC - EAC. It may be calculated at any level from the Control Account (CA) up to the total contract. It represents the amount of expected overrun (negative VAC) or underrun (positive VAC) at completion.
• Variance Threshold: Internal and external tolerances (or thresholds) established by contract or management direction. Variance conditions outside the threshold limits require investigation, analysis, corrective action, and reporting.
• Vertical Integration: The uniformity of data between the various levels of schedules such that dates are consistent from detail schedules through intermediate schedules, and finally to the summary schedule. A lower level schedule relationship to a higher level schedule is typically modeled with milestones supported by completion criteria consistent with the various levels of schedule and contract documents.
• Volume Variance: See Labor Cost Variance Formulae

W

• Work Authorization (WA): The document representing a bilateral agreement between the project manager and the manager of the responsible organization to accomplish and manage the authorized scope of work, schedule, and budget.
• Work Breakdown Structure (WBS): A product-oriented family tree composed of hardware, software, services, data, and facilities. The family tree results from systems engineering efforts during the pre-acquisition and acquisition of a defense materiel item.
• Work Breakdown Structure (WBS) Dictionary: A listing of WBS elements with a description of the work scope content in each element with a reference to the contractual document describing the work (e.g., Statement of Work (SOW), Statement of Objectives (SOO) ...). The work descriptions are normally summary level and provide for clear segregation of work for work authorization and accounting purposes.
• Work Breakdown Structure (WBS) Element: Any block or unique entry in a WBS regardless of level.
• Work Breakdown Structure (WBS) Levels: The hierarchy of projects to programs, systems to projects, subsystems to systems, etc. within the WBS.
• Work Package (WP): Natural subdivision of Control Accounts (CAs). A WP is simply a task or grouping of work and is the point at which work is planned, progress is measured, and earned value (i.e., Budgeted Cost for Work Performed (BCWP)) is computed.
• Work Package (WP) Budget: Resources that are formally assigned by the contractor to accomplish a WP expressed in dollars, hours, standards, or other definitive units.