The Earned Value Management System (EVMS) is a program management tool used by the US Department of Defense (DoD) that integrates a contractor’s program cost, schedule, and technical scope data to ensure contractor adherence to budget and schedule targets. The threat of sequestration-driven budget cuts will require contractors to operate at peak program management efficiency.
Issue 5: Earned Value Management System challenges in a changing environment: Are you ready?
The Department of Defense (DoD) considers an Earned Value Management System (EVMS) to be one of the agency’s most powerful program management tools. An EVMS integrates a contractor’s program cost, schedule, and technical scope data, and the DoD uses this information to ensure contractor adherence to ever-tightening budget and schedule targets.
As the DoD is operating under the threat of massive sequestration-driven budget cuts, defense contractors, in turn, must operate at their highest levels of performance in managing programs. In this dynamic environment, DoD contractors are further challenged with changes to the EVM ground rules involving both reporting requirements and business systems compliance. They are under heightened oversight for executing programs to cost and schedule targets, and maintaining compliant systems for monitoring and reporting program performance.
This new "Gaining Altitude" article discusses these challenges and how contractors can address them.
About the series
PwC Aerospace & Defense has launched a new thought leadership series called "Gaining Altitude with PwC." In this series of whitepapers, we will share with you our insights that we gain from working with you and your peers, customers and suppliers in the ever changing dynamics of the global value chain for aerospace and defense. Our insights will cover all aspects of the program lifecycle: program strategy; bid and proposal; design, engineering and planning; field sustainment; program delivery; IT effectiveness and cross phase processes.
Read other issues in the Gaining Altitude series: