Workshops

PMI-CPM 23rd Annual International

Conference Proceedings

Workshops

Workshop Coordinator: Joe Houser &

Kevin Martin

The workshops will allow conference attendees to participate fully in the development of new techniques, review work in progress, and discuss current issues within the framework of an open dialogue. The workshops are open to all levels and will be moderated by experts from the earned value community.

WS 01 Earned Value Management in Performance Based Acquisitions

Glen Phillips, PMP, Acquisition Solutions, Inc. (ASI)

Mark Buchholz, MPA, PMP, Acquisition Solutions, Inc. (ASI),

WS 02 NTEs and Earned Value Management

Frederick Manzer, Strategy Bridge International, Inc.

Tony Finefield, Finefield Consulting

WS 03 IBRs – The Good, the Bad and the Ugly

Eleanor Haupt, Earned Value Associates, LLC

Bill Smart, Missile Defense Agency

Susan Wood, Earned Value Associates, LLC

WS 04 Pre-Award Integrated Baseline Review and Program Level IBRs

Gary C. Humphreys, Humphreys & Associates, Inc.

Joe Houser, KM Management Systems Group

WS 05 Applying Earned Value Management to IDIQ Efforts

Tony Finefield, Finefield Consulting

Frederick Manzer, Strategy Bridge International, Inc.

WS 06 Using Rayleigh Distribution Curves and EVM as

a Predictive Tool

Danny Davis, Ph.D., Center for Naval Analysis

Abstracts & Bios

WS 01- Earned Value Management in Performance Based Acquisitions

In recent years OMB and federal agency policies have embraced the concepts of Earned Value Management and Performance Based Acquisitions (PBA). Agencies are developing performance based statements of objectives (SOO) and performance work statements (PWS) to support their acquisitions and are now applying the new Federal Acquisition Regulation (FAR) provisions for Earned Value Management. How do these two acquisition management concepts compliment one another to provide for desired measurable performance and results?

In this session we will first explore the basics of the two concepts independently to establish a clear appreciation for the essentials of the each concept. We will show how the 7-steps to PBA integrates these complimentary concepts and highlight how well defined performance objectives can lead to meaningful earned value metrics. Using relevant examples and short exercises participants will have an opportunity to develop notional performance objectives and discuss how these objectives might be translated into Planned Value (or BCWS) within the earned value baseline.

This session is for individuals who are either new to, or are mid-way through their professional development in project management.

Glen Phillips, Acquisition Solutions, Inc. (ASI), PMP

Voice: (703) 490-8660 Fax: (703) 490-8660 E-Mail: gphillips@acqsolinc.com

Glen Phillips has over 23 years of acquisition project management experience primarily within the department of defense. During that time he has managed major and less than major weapon system development efforts; been responsible for resources and budgets for major US Air Force test ranges and facilities; and served as a faculty member and department chair at the Defense Acquisition University (DAU). While at DAU he was responsible for course development and teaching in a variety of earned value management and program management classes. At DAU and most recently with ASI, Glen has provided consulting services to several defense and civilian agencies regarding earned value management, acquisition strategy, and project planning and scheduling. Since joining Acquisition Solutions Inc (ASI), Glen developed and teaches the “Essentials of Earned Value Management” course and co-developed and co-instructs the “Fundamentals of Project Management using MS Project” class. Both 2-day courses were developed for ASI employees and clients.

Glen facilitated a training session in CPM 600 during the Nov 2002 NDIA/SCEA/PMI-CPM conference. Glen co-facilitated a workshop at the Nov 2006 NDIA/SCEA/PMI-CPM conference. Glen is a certified acquisition professional with DAIWA certifications in Program Management (Level 3), Test and Evaluation (Level 2), and Business Financial Management (Level 2). Glen is also a Project Management Professional (PMP).

Mark Buchholz, Acquisition Solutions, Inc. (ASI), MPA, PMP

Voice: 703-998-3980 E-Mail: mbuchholz@acquisitionsolutions.com

Mark Buchholz, PMP, has over 17 years of Project Management experience and his Masters in Public Administration. As a Senior Consultant with ASI, he mentors and advises ACAT level DOD Program Managers in performance based acquisition and project management. He is an expert in Performance Based Acquisitions, and planning/scheduling/executing/monitoring IT projects. Prior to ASI, he was responsible for numerous national and international projects delivering time-sensitive critical IT infrastructure to a wide variety of law enforcement agencies. Mark co-facilitated a workshop at the Nov 2006 NDIA/SCEA/PMI-CPM conference. Mark is also a co-developer and co-instructor of the ASI class “Fundamentals of Project Management using MS Project.”

WS 02 - NTEs and Earned Value Management

The application of earned value to “authorized, unpriced effort” is often affected by the inclusion of a “Not to Exceed” or NTE in the authorizing document. Individuals, both government and industry, in the acquisitions community (contracting officers, financial analysts, earned value systems experts, etc.) have different views when it comes to the establishment of performance measurement budgets for these activities. In some cases, these interpretations affect the ability of the contractor to effectively apply earned value. This workshop will discuss the various possibilities of EVM and NTEs and seek common solutions, acceptable to all parties.

Frederick Manzer, Strategy Bridge International, Inc.

Voice: (540) 845-0309 Fax: (703) 832-0292 E-Mail: fmanzer@strategybridgeintl.com

A dynamic and skilled trainer requested by customers for their training events. Mr. Fred Manzer combines practical experience with his extensive knowledge of theory to address customer learning needs in their environment and using their terminology. As a government employee and commercial consultant he provided training and project management support for major US defense contractors and US Government agencies acquiring major systems. As a nationally recognized expert in project planning and earned value Mr. Manzer frequently speaks on these subjects at conferences and professional symposia. His systems engineering approach to project management facilitates acceptance by the engineering community and promotes successful implementation of recommended practices. As Director of Project Management at Strategy Bridge International, Inc. he develops and presents training and provides consulting support to commercial companies and government organizations. Mr. Manzer has fifteen years as a professional trainer in commercial and government organizations. Prior to joining the government Mr. Manzer was a project manager in the defense industry and a manager of program control responsible for the implementation of earned value systems in defense contractors.

Tony Finefield, Finefield Consulting

Mr. Tony Finefield has over thirty-one years of experience in the area of Earned Value Management Systems. As a Naval Supply Corps Officer he was assigned to the Defense Contracts Management Area - Santa Ana where he was responsible for supervising an EVMS Surveillance program that included four validated contractors with nine contracts valued at over $1 Billion. Subsequent to that, Mr. Finefield worked for five years in two Air Force Plant Representative Offices (AFPROs): TRW Defense and Electronics Sector and Rockwell International, Autonetics Division. As the EVMS Surveillance Monitor, he was responsible for ensuring continued contractor compliance with their approved EVMS. In March 1983, Mr. Finefield joined the Cost Information & Management Systems Division of Air Force Space Systems Division (now Space and Missile Systems Center) where his responsibilities include being the SMC Field Command Focal Point for the implementation of earned value management on all major acquisitions at SMC. Additionally, he has led reviews at such diverse contractors as Martin Marietta Astronautics Group; TRW Defense & Space Sector; Lockheed Missiles and Space Company; Boeing Aerospace and Electronics; and, General Dynamics Space Systems Division. Mr. Finefield led the multi-service, multi-agency team charged with the rewrite of the Joint Implementation Guide and its transition into the Earned Value Management Implementation Guide, published in December 1996. Mr. Finefield served as the Chief of the Acquisition Cost Division at SMC from Nov, 1997 to June 2001. His duties included supporting program office’s in generating program level cost estimates; supporting cost model research and maintenance; supporting the program offices in the preparation for and conduct of Integrated Baseline Reviews (IBR’s); and, providing earned value training to both program office and staff personnel. Mr. Finefield retired from Government Service on 1 July 2001 and now works as a private consultant, providing support to both private industry and government agencies.

WS 03 – IBRs – The Good, the Bad and the Ugly

The concept for integrated baseline reviews has been around for more than ten years. Rather than focus on EVM system compliance, the IBR should focus on evaluating the realism of the work, schedule, and EVM baselines and ensuring proper integration. We can learn what not to do in an IBR from the horror stories of grueling reviews, poor leadership, or poorly trained teams. We should also share best practices and innovative approaches that allow our joint teams to conduct the review as it was intended.

Workshop attendees will discuss best practices, lessons learned, what to do, and what not to do when preparing for and conducting the IBR. The presenters will share their experiences gained from supporting many IBRs over the past ten years, and then engage in dialogue with the audience to discuss the participants’ experiences with IBRs. What was the best IBR experience that you’ve participated in, and what made the difference? How can we best prepare our teams to properly conduct the IBR? The workshop will provide attendees with time tested techniques and best practices for successful IBRs.

Eleanor L. Haupt, Earned Value Associates LLC

Phone: (937) 572-2586 Fax : (937) 429-1442 E-Mail: ehaupt@earnedvalue.biz

Eleanor is a senior partner with Earned Value Associates LLC, a training and consulting company dedicated to improving earned value management. Eleanor provides customized support for EVM implementation and policy development to private and public clients. As part of EVMS implementation for a client, she conducts gap analyses and continuous improvement assessments, as well as compliance and integrated baseline reviews. Eleanor has developed and presented a wide variety of training materials covering the full spectrum of EVM, and is also a certified wInsight instructor. She is a frequent speaker, trainer, and keynoter at national and international EVM conferences. Eleanor is the author of several guides and manuals, and has been a major contributor to other guides.

Prior to entering the public sector, she had a successful career within the Department of Defense for over 26 years, and was a leading expert on several key teams. She worked for the U.S. Air Force, Navy and Army, and has supported numerous programs in financial and cost management, specializing in earned value management and integrated management. Eleanor was the EVM focal point at Aeronautical Systems Center and responsible for policy development, guidance, training, and direction for the application of EVM on all Air Force programs at the center.

Eleanor served as Executive Vice President and President of the PMI College of Performance Management, and now serves as Past President on the current governing board.

Bill Smart

Terminal High Altitude Area Defense Project Office, Missile Defense Agency

Phone: (256) 955-2291 Fax: (256) 955-2298 Email: bill.smart@mda.mil

Bill is the Director of Program Management responsible for all programmatic and acquisition functions for a $12 billion dollar acquisition program. His professional career spans 32 years encompassing assignments with Army project offices, commodity commands, Program Executive Office (PEO) staff organizations and the Missile Defense Agency. He has project and staff experience in budget and financial management, acquisition, source selection, manpower, program planning and oversight, acquisition program documentation/reporting and earned value management (EVM) for both major and

WS 03 Continued

non-major programs. As an EVM Review Team Chief, he defined the process and led the first Integrated Baseline Reviews (IBRs) for two ACAT 1D programs; which became the benchmark for DOD IBR policy, for which he was named a recipient of the David Packard Excellence in Acquisition Award given to the Integrated Program Management Initiative Joint Team in 1998.

His professional affiliations include being a founding member and Past President/Chapter Officer of the Project Management Institute (PMI), Huntsville, AL Chapter. Bill has a B.S.B.A. (Finance) from the University of Central Florida, a Masters in Management from the Florida Institute of Technology, and is a 1995 graduate of the Project Management Certification Program, University of Alabama-Huntsville.

Susan Wood, Earned Value Associates

Voice: 250-585-4830 email: swood@earnedvalue.biz

:Susan Wood is the PMI-CPM Vice President for Conference and Events. She is the North American PMI-CPM liaison to the Asia Pacific 2006 Symposium. Susan is also the Program Manager for the 22nd Annual PMI-CPM International Conference to be held May 17-19, 2006 in Clearwater Beach, Florida. Mrs. Wood has also served as Program Manager for the 15-17th International Integrated Program Management Conference co-sponsored by PMI-CPM, National Defense Industrial Association, and the Society of Cost Estimating and Analysis (US) and Co-Chair of the 1-3rd PMI-CPM EVM Japan Conferences. Mrs. Wood is also a senior partner at Earned Value Associates, LLC and owns Wood Consulting, specializing in all aspects of EVM. Susan retired in 2004 as the EVM Focal Point for the Air Armament Center (AAC) at Eglin Air Force Base, Florida, responsible for EVM policy, guidance and implementation support across all AAC programs. As a member of the Air Force (AF) Earned Value (EV) Integrated Product Team, Susan contributed to AF EV policy and implementation guidance. She has led and served on contractor and government EVM System Review teams and has developed and provided EVM training to government and contractor personnel for the past 18 years. Susan has over 27 year’s government acquisition experience.

WS 04 - Pre-Award Integrated Baseline Review and Program Level IBRs

Presented by Gary Humphreys and Joe Houser

This workshop will explore conduct of Integrated Baseline Reviews (IBR) not considered mainstream, however, now permitted by the Federal Government. This workshop will discuss alternative for conducting pre-award IBRs, which is now permitted under the EVM FAR clause issued in July 2006.

The workshop will also discuss alternatives for conducting program level IBRs, which is permitted under the OMB memorandum of August 4, 2005. Both of these IBRs, pre-award and program level, are new for some organizations and this workshop will engage the workshop attendees to evaluate alternative approaches, advantages, and disadvantages for these IBRs.

Gary C. Humphreys, Humphreys & Associates, Inc.

Phone: 714.685.1730

Fax: 714.685.1734

E-Mail: GHConsult@aol.com

Gary C. Humphreys is the president and executive officer of Humphreys & Associates, Inc. As a consultant, Mr. Humphreys has provided technical support in all phases of project management to clients in the United States and other countries. He is a graduate of the University of California at Berkeley (USA), with a master’s degree in business administration from the University of Southern California (USA). He has served as chairman of the National Defense Industrial Association (NDIA) Management Systems Subcommittee, and president and chairman of the board of the Performance Management Association, which has now become the Project Management Institute’s College of Performance Management. In 1998 he was a recipient of the United States Department of Defense’s highest acquisition award, the David Packard Excellence in Acquisition Award.

Joe Houser

Mr. Houser has over 35 years experience of program and financial management experience in both the commercial and the government sectors. He is Vice President, with KM Management Systems Group. Prior to KM Management Systems Group, Joe was Deputy Program Manager with both SAIC and Lockheed Martin. Mr. Houser’s experience includes corporate level responsibilities for earned value management for IBM and Lockheed Martin and led several program performance process improvement initiatives. Joe has served as Risk Manager for several large scale programs. Joe’s experience with IBM and Lockheed Martin includes assignments developing and implementing schedule, cost, risk, and earned value management systems on large scale complex programs.

Mr. Houser is a founding member and past Chairman of the Board and President of Performance Management Association (now PMI-College of Performance Management). He is a past member of the National Security Industrial Association (NSIA) procurement committee; served as a NSIA industry advisor to the Department of Defense Performance Measurement Joint Executive Group (PMJEG); and is past Chairman of the NSIA Subcommittee on Performance Management. He organized and led a joint DoD/Industry TQM study on the DoD cost/schedule management process. The eighteen-month study had 17 of the 18 recommendations implemented by the Department of Defense. The Honorable Donald J. Yockey, Under Secretary of Defense (A), referred to the study as a "model for future government/industry relations." He has published several papers and is a speaker and lecturer on cost/schedule control and management.

WS 05 - Applying Earned Value Management to IDIQ Efforts

The inherent flexibility allowed by both the 32 Guidelines and their interpretation in the Industry Standard, ANSI/EIA 748-A, and the NDIA Intent Guide discussions should allow for the performance measurement of “IDIQ” type efforts. This is true whether the effort is an IDIQ Contract or an effort within a contract that is difficult to time-phase and maintain. This workshop will explore possibilities and options for applying sensible performance measurement techniques to this highly-flexible type of effort.

Frederick Manzer, Strategy Bridge International, Inc.

Voice: (540) 845-0309 Fax: (703) 832-0292 E-Mail: fmanzer@strategybridgeintl.com

Tony Finefield, Finefield Consulting

WS 06 - Using Rayleigh Distribution Curves and EVM as a predictive Tool

Presented by Danny Davis

The workshop will explore the use of the Rayleigh distribution to model the cumulative cost path over the course of the life of a contract. This model will be used to assess the realism of a plan at the outset of a contract, as measured by the performance measurement baseline, and a metric will be developed to measure the “goodness” of that plan before actual cost data have been collected. Then the Rayleigh model will be used to predict the cost and schedule performance of a contract early in the life of that contract with a limited number of cost data, and its accuracy will be compared to other predictions of contract performance. Finally, the predictions arising from the application of the Rayleigh model will be used to assess the current vulnerability of a program to cost overrun and/or schedule slip. This information will be valuable to decision-makers as they assess different options for fixing a program heading in the wrong direction before it is too late. The idea is to implement forward-looking analysis with proactive decision making/oversight.

Danny Davis, Center for Naval Analysis

Phone: 703-824-2553

Fax: 703-824-2256

E-Mail: davisd@cna.org

Dan Davis is a research analyst and economist working with Gary Christle and Wayne Abba at the Center for Naval Analyses (CNA) on cost and acquisition issues and management studies. Dan has worked on studies of acquisition issues for both the U.S. Air Force and the U.S. Navy. A recent study for the navy has conducted extensive research in ways of improving the analysis of existing earned value data to catch problems with projects early and to assist senior decision makers in their oversight and management of major programs.

Prior to joining CNA, Dan retired after twenty-two years of service in the U.S. Army. Upon retirement, he earned his Ph.D. in economics from the University of North Carolina at Chapel Hill. His dissertation used game theory, auction theory, mechanism design, and signaling theory to explore the bidding behavior and the use of subcontractors by contractors in government procurement. Dan is a graduate of the U.S. Military Academy at West Point, he is a Rhodes Scholar, and he has a master’s degree from the University of Oxford at Oxford, England.