4.3.1 Earned Value Management (EVM). Cost performance
measurement involves periodic comparison of actual costs with time-phased
budgets, analysis of performance variances, and follow-up corrective action.
When planned tasks are captured in a WBS element structure and time-phased as
they are expected to be accomplished, the budgets associated with those tasks
become the performance measurement baseline for EVM. EVM is a key integration
program management process in the management and oversight of Major Defense
Acquisition Programs and Major Automated Information Systems Programs.
EVM data is reported using the Contract Performance Report (CPR). The CPR
provides contract cost and schedule performance data that is used to identify
problems early in the contract and forecast future contract performance. The
CPR should be the primary means of documenting the ongoing communication
between the contractor and the program manager to report cost and schedule
trends to date and to permit assessment of their effect on future performance.
This report consists of the following five formats: WBS, Organizational
Categories, Baseline, Staffing, and Explanation and Problem Analyses. Format 1
provides data to measure cost and schedule performance by product-oriented
Contract WBS elements, for the hardware, software, data, and services the
Government is buying.