Earned Value Manager Contracts

 
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Earned Value Manager (EVM) contracts allow you to define the terms of your U.S. federal government agency contracts. Contracts are the top level of earned value data aggregations and all reporting requirements. Your contract information is the basis for the earned value calculations that are used to track overall performance. The contract data is also important for reporting and is included in the contract performance reports (CPR).
EVM contracts include contract work breakdown structure (CWBS) elements, summary level planning packages (SLPP), control accounts (CA), and work packages (WP).
The EVM add-in provides an audit feature to track the history of specific activities for a contract. The administrator sets up and enables audit, and determines the fields to audit and the information to store. If audit is enabled for contracts and you have the required access rights, the Audit menu appears when the contract is open. Use the contract audit page to view a log of change, addition, or deletion records for the fields specified for auditing.
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Process Contracts
You can build the control work breakdown structure and update contract data.
Follow these steps:
  1. Create an agency.
  2. Create a contract.
  3. Associate the agency to the contract.
  4. Build the control work breakdown structure hierarchy:
    1. Create the elements having control accounts.
    2. Create the summary level planning packages (SLPP).
    3. Identify the contract work breakdown structure (CWBS) elements having control accounts.
    4. Create your control accounts.
    5. Define the work packages for the control accounts.
  5. Link the work packages to projects or project tasks.
  6. Baseline the contract.
  7. When budgets and work authorization is approved, you can:
    • Update the control accounts
    • Update the work packages
  8. Post actuals against project tasks.
  9. Update earned value totals to reflect current earned value metrics.
  10. Update historical earned value for each reporting period.
  11. Set the contract performance report (CPR) parameters.
  12. Run the EVM CPR Report Data Generation job.
  13. Review the CPR reports.
  14. Monitor contract performance.
: You can also use processes to automate certain elements of earned value management. Define the contract type-specific processes, or global processes designed to work on a specific contract. Contact your administrator or see
Administrating
for more information.
Create a Contract
Create contracts as part of the bidding and planning process. You can enter information about the U.S. federal government agency and details about the contract.
Note:
To associate an agency record with a contract, the agency record must be active. When you create a new agency, the agency is active by default.
Follow these steps:
  1. Open Administration, and from Earned Value Management, click Contracts.
  2. Click New.
  3. Complete the information in the General section. The following fields require a description:
    • Program Name
      Defines the value that the contract performance reports (CPR) for the CPR report header.
    • Earned Value Reporting Period
      Defines the assigned reporting period for the contract. After the update earned value history of contracts job runs, this field is locked.
      Default:
      Unlocked
      Contract Currency Code
      Defines the currency code for the contract. After you save the contract, the currency code is display-only.
      Phase
      Defines the current contract program phase.
    • Share Ratio
      Defines the cost share ratio as defined in the negotiated contract terms.
    • Definitized Date
      Defines the date of signing the contract.
    • Status
      Defines the current contract program status.
      Values:
      Unapproved or Approved
      Default:
      Unapproved
    • Contract OBS
      Defines the organizational department, or subcontractor/ vendor group responsible for delivering the work within the contract.
    • Active
      Specifies if the contract is active. You can only delete inactive contracts.
      Default:
      Selected
  4. Select one active agency for the contract in the
    Agency
    field.
  5. Save your changes.
After creating a contract, you can view a list of active contracts on the contracts list page by clicking the name of the contract.
Associate a Contract to Earned Value Reporting Periods
The earned value reporting period defines the frequency and the interval for the Update Earned Value History - Contracts job. This information helps to record the historical earned value snapshots of performance and saves a snapshot in the earned value history table. When using earned value methodologies to analyze contract performance, the job uses the earned value reporting period to take a snapshot.
Historical reporting data is generated based on a contract association with the period. The contract program manager associates the contract with the appropriate period. The earned value reporting period drives the reporting data that displays on the CPR reports.
Follow these steps:
  1. Open a contract.
  2. Complete the following field in the General section:
    • Earned Value Reporting Period
      Defines the assigned reporting period for the contract. After the update earned value history of contracts job runs, the field is locked.
      Default:
      Unlocked
      If a work package is linked to a project or project task, we recommend that you associate the same earned value reporting period to the project, or project task as you associate with the contract.
  3. Save the changes.
Contract Pricing
The contract pricing values are based on the current contract baseline plus the values from the properties page of contract pricing.
Follow these steps:
  1. Open the contract.
  2. Open the Contract menu, and click Pricing.
Part of your organization bidding on a contract is to determine the total cost of the work and profit or fee for the contract. The contract costs are aggregated based on industry-standard pricing categories, and the aggregated values display on the contract pricing properties
page.
The pricing categories include the following:
  • Total Contract Price
    Defines the total contract price based on the following formula:
    Total Contract Price = Total Contract Cost + Profit/Fee
  • Total Contract Cost
    Defines the sum of all budgets for work on a contract. The sum includes the negotiated contract cost (NCC) plus the estimated cost of Authorized Unpriced Work (AUW). The total contract cost (TCC) is always equal to the contract budget base (CBB), except where there is an over target baseline (OTB).
  • Contract Budget Base
    Performance Management Baseline + Management Reserve. Defines the contract budget base based on the following formula:
    Contract Budget Base = Negotiated Contract Cost (NCC) + the Authorized Unpriced Work (AUW).
  • Performance Measurement Baseline
    BAC (burdened except for FEE) + Undistributed Budget (UB). The Performance Measurement Baseline (PMB) is a time-phased budget plan against which project performance is measured. The budgets that are assigned to scheduled control accounts and the applicable UB form the performance measurement baseline.
    For future effort that is not planned to the control-account level, the PMB also includes budgets assigned to higher-level CWBS elements. The PMB is the sum of all the distributed budgets plus and UB. The sum does not include any management or contingency reserves, isolated above the PMB.
  • Distributed Budgets
    BAC for all CWBS elements. Distributed budget is a time-phased budget distributed to control accounts (CA), a higher-level WBS element, or to functional elements (also named summary level account budgets).
  • Undistributed Budgets
    Defines the broadly defined activities not distributed to control accounts. Enter this value manually.
  • Management Reserve (MR)
    Defines the amount held separately from your contract budget base for changes in the work that will be executed on the contract. Throughout the course of a contract, and as the scope changes, money is taken out of the Management Reserve (MR) and distributed to the control accounts. Each time money is taken out of the MR, a log entry is added. The log tracks the money earned and spent in the management of the contract. Enter the value manually.
Contract Performance Measurement Baselines
Contract baselines are snapshots of the contract total effort and total costs at the moment of capture. This snapshot includes the effort and cost for all control accounts and summary level planning packages associated with the contract work breakdown structure (CWBS).
The control account baseline is the summary of the baseline data for each of the control account work packages.
A contract baseline does the following:
  • Baselines all projects and for master projects, their subprojects, based on the tasks that are linked to contract work packages.
  • Rolls up baseline and earned value data from task data up to the work package to the control accounts.
  • Rolls up control account baseline data to the CWBS element.
  • Aggregates CWBS element data to the contract level.
The Baseline at Completion (BAC) is calculated and stored with and without burdens. Earned value is calculated on unburdened BAC and contract pricing is shown by using the burdened BAC costs. Total Burdened BAC is calculated using the following formula:
BAC = (Cost of Actual Work + Burdened Cost) + (Cost of Remaining Work + Burdened Cost)
Baseline Currency
When baseline and earned value metrics are calculated for a contract, the data is calculated and written to the contract baseline and to the contract earned value history tables using the contract currency.
Baselines and Work Packages
Creating a contract baseline automatically creates a project-level baseline for the projects that are associated with the contract through work packages. Link the work package to the project, or project tasks to create the association.
Create a Contract Baseline
You can create an unlimited number of baselines for a contract. Take an initial baseline before resources enter time on a work package task. After you create the initial baseline, you can create additional ones at various intervals such as mid-way through the contract, when different phases complete, and at the contract end. The initial baseline allows you to compare estimates to actuals once the contract is under way. You can only mark one baseline as the current baseline.
Follow these steps:
  1. Open the contract.
  2. Open the Properties menu, and click Baseline.
  3. Click New.
  4. Complete the following fields:
    • Revision Name
      Defines the baseline revision name.
      Example:
      Initial Baseline, Mid-Term Baseline, or Final Baseline.
    • Revision ID
      Defines the baseline revision unique identifier.
      Example:
      The baseline version number, such as v1 or v5.
    • Description
      Defines the baseline revision description.
    • Current Revision
      Specifies this baseline as the current baseline. This field is unlocked only when multiple baseline revisions exist.
      Default:
      Selected
  5. Save the changes.
Define the Current Baseline
The baseline last created becomes the current contract baseline, by default. If you have defined only one baseline, the baseline is marked as the current baseline. To change the current baseline, open the baseline, select the Current Revision field, and save the baseline revision.
The current contract baseline displays data on the properties page of contract pricing and on the CPR reports. For example, the CPR Format 3 report displays baseline data at the beginning and end of the reporting period, and lists all of the baselines between those two dates.
Follow these steps:
  1. Open the contract.
  2. Click Baseline.
  3. Open the baseline.
  4. Select the Current Revision field, and save.
Edit a Contract Baseline
Use the properties
page of baseline revision to edit the baseline revision name, ID, and description. You can also view the baseline revision start date, finish date, usage data, and BCWP on the page.
Follow these steps:
  1. Open the contract to edit a baseline.
  2. Click Baseline.
  3. Click the name of a baseline revision.
  4. Complete the following fields:
    • Revision Name
      Defines the baseline revision name.
      Example:
      Initial Baseline, Mid-Term Baseline, or Final Baseline.
    • Revision ID
      Defines the baseline revision unique identifier.
      Example:
      The baseline version number, such as v1 or v5.
    • Description
      Defines the baseline revision description.
    • Baseline Start
      Displays the date of starting the contract at the time of baselining.
    • Baseline Finish
      Displays the date of finishing the contract at the time of baselining.
    • Baseline Usage
      Displays the system-generated usage at the time you baseline using the following formula:
      Usage = Total of Actuals + ETC
    • BCWP
      Displays the system-calculated value of Budgeted Cost of Work Performed (BCWP). The value is calculated and recorded when you baseline a project, or when you update earned value totals. BCWP is also referred to as the earned value (EV). BCWP represents the amount of the budgeted cost (BAC) completed based on performance as measured using the Task EV Calculation method.
      Calculations are made based on the level at which the calculation is made. BCWP is calculated at the following levels:
      • Task. BCWP is based on the selected EV calculation method.
      • Project. BCWP is the sum of BCWP for all WBS Level 1 tasks in the project.
      Current Baseline Required:
      Yes
    • Current Revision
      Specifies to make the baseline the current baseline. The field is unlocked only when multiple baseline revisions exist.
      Default:
      Selected
  5. Save the changes.
: To delete a contract baseline, you must have the
Contract - Baseline Delete
access right. When you delete the current baseline and another baseline revision exists, the remaining baseline becomes the current revision.
Contract Work Breakdown Structure (CWBS)
Contracts are made up of a set of deliverables in a contract work breakdown structure (CWBS). The contract program manager creates the CWBS based on the hierarchy of the deliverables. The CWBS hierarchy is typically created as part of the contract negotiation process.
A CWBS consists of one root node element and a user-defined hierarchy of elements below it. Define the nodes down to the level of the lowest deliverable. The CWBS elements appear on the hierarchy in the order that you create them. Each CWBS branch can have different node levels. Levels are automatically assigned to CWBS elements based on their position in the hierarchy. The order indicates their relationship to each other. Level 1 is reserved for the CWBS root node element.
Part of building the CWBS hierarchy is identifying the elements requiring control accounts and summary level planning packages.
Create CWBS Elements
Identify the CWBS elements that have control accounts and summary level planning packages (SLPP). The new elements are added to the CWBS hierarchy. You can add any number of elements to the CWBS hierarchy.
To edit the CWBS elements after you create them, you need the
Contract - Edit
access right.
Follow these steps:
  1. Open Home, and from Earned Value Management, click Contracts.
  2. Click the WBS icon next to the contract.
  3. Click New.
  4. Complete the
    CWBS Element Name
    and
    CWBS Element ID
    fields in the General section.
  5. Complete the
    Dictionary Description
    field in the CWBS Dictionary section.
  6. Save the changes.
You can view all of the CWBS elements, such as summary level planning packages, control accounts, and work packages using the contract WBS page. Use this page to design a hierarchical (parent-child) relationship between the CWBS elements that you create. Create and reorder CWBS elements on the page. You cannot delete control accounts, summary level planning packages, and work packages from this page.
You can view the CWBS element names, the number of CWBS levels, and the CWBS element IDs using the contract WBS page.
Arrange CWBS Elements
You can create hierarchical relationships between CWBS elements. Indent an element to make it a subordinate of an element.
Use indent and outdent to designate individual CWBS elements as parent or children. Parent CWBS elements are top-level elements that have child CWBS elements associated with them. Child CWBS elements are nested beneath parent CWBS elements. You can create a parent-child hierarchical grid by indenting or outdenting CWBS elements.
Follow these steps:
  1. Open Home, and from Earned Value Management, click Contracts.
  2. Click the WBS icon next to the contract.
  3. Select the element to indent or outdent, click CWBS Layout>>, and do one of the following:
    • Select Indent
      .
      The page refreshes and the element is folded one level under the nearest higher-level element. A plus sign (+) appears next to the higher-level element.
    • Select Outdent
      .
      The page refreshes and the element appears as outdented relative to the element above it.
    The element is indented or outdented.
    • You cannot indent or outdent the CWBS root node element.
    • You can indent an element multiple times. However, a higher-level element must be exactly one indent level above the element indented. An element cannot be indented multiple times when a higher-level element is not immediately one level above it.
    • You can only outdent elements to the level 2 position because the CWBS root node element is at the level 1 position.
    • Only one level 1 element exists, and that position is reserved for the CWBS root node element.
    • If the element to be outdented has subordinate elements, the subordinate elements automatically follow their parent.
    • You can select multiple CWBS elements to indent or outdent.
    • If you cannot indent a CWBS element, an error message appears. If you select multiple CWBS elements for indenting and one of them cannot be indented, an error message appears and none of the selected elements are indented. The same rule applies for outdenting.
You can also move elements up or down in the CWBS hierarchy. If you move a CWBS element, the summary level planning package, control accounts, and work packages are moved with the CWBS element. You cannot move SLPPs and control accounts to another CWBS element. You can only move CWBS elements.
Example:
A parent CWBS element that is named Housing contains CWBS elements that are named Foundation and Framing. The elements are split into control accounts which have work packages that are associated with them. Reorder the CWBS elements to create the parent/child relationships in the CWBS hierarchy.
Follow these steps:
  1. Open the contract.
  2. Click Contract WBS.
  3. Select the check box next to the element, click CWBS Layout>>, and select Move.
    The move CWBS elements page appears. The name of the CWBS element being moved appear at the top of the page.
  4. Select the CWBS element to place above or beneath the CWBS element, and do one of the following:
    • Click Insert Before to move the CWBS element above the selection.
    • Click Insert After to move is below the selection.
    The contract WBS page appears. The CWBS element displays in its new location in the hierarchy.
: You cannot delete CWBS elements that have a baseline or a previously-generated earned value history. You cannot delete the root node element.
Contract Work Breakdown Structure (CWBS) Dictionary
The CWBS dictionary contains a detailed description for each deliverable. This dictionary provides a definition of the work to accomplish. The CWBS dictionary is system-generated as you create and add elements to the CWBS hierarchy.
You can edit CWBS dictionary descriptions on the CWBS element, or directly in the dictionary. The dictionary is a working document. As scope shifts or other changes occur, update the deliverable descriptions in the data dictionary.
Follow these steps:
  1. Open the contract.
  2. Click CWBS Dictionary.
    The CWBS dictionary properties page appears.
  3. You can edit descriptions on the CWBS element or directly in the dictionary. The dictionary is a working document. As scope shifts or other changes occur, update the deliverable descriptions in the data dictionary.
    • CWBS Element Name
      : Defines the control work breakdown structure element name.
    • CWBS Element ID
      : Defines the control work breakdown structure element unique identifier.
    • CWBS Element Dictionary Description
      : Defines the detailed control work breakdown structure element data dictionary description.
: To print the CWBS dictionary descriptions, run the contract WBS dictionary report.
Monitor CWBS Element Performance
You can monitor element performance using the CWBS Element Dashboard page. This page displays the Earned Value History - CWBS portlet. The earned value history appears based on the control accounts and summary level planning packages that are associated to the CWBS element. As time progresses, each new reporting period is displayed on the graph.
You can optionally show projected data on the graph. To show this earned value data, ask your administrator to set the Update Earned Value History - Contracts job parameters for project ACWP, BCWP and BCWS and then run the job.
You can customize this page by adding or removing portlets from the CWBS Element Layout portlet page Dashboard content in Studio.
Calculate Earned Value Metrics on Contracts
You can calculate historical earned value metrics that are based on the contract associated earned value reporting period. Update a contract current earned value metrics at any time. Do this manually, or run the Update Earned Value Totals - Contracts job at scheduled times. Both methods refresh the earned value (EV) metrics and display on CWBS elements, control accounts, and work packages.
The earned value reporting period defines the frequency and the interval for the Update Earned Value History - Contracts job. The job takes historical earned value snapshots of performance and saves snapshot in the earned value history table.
Follow these steps:
  1. Open a contract.
  2. Click Contract WBS or Baseline. For the baseline option, this step requires that at least one baseline for the Update Earned Value button appears.
  3. Select Update Earned Value.
    A snapshot of the current earned value for the contract is saved.
  4. (Optional) The Update Earned Value Totals - Contracts job calculates earned value metrics for contracts. You or your administrator can schedule this job to run at regularly scheduled times.
Manage Contract Undistributed Budgets and Management Reserve
Update the undistributed budget (UB) and management reserve (MR) values before generating the contract performance report (CPR) data. Update these values based on your UB and MR logs that are maintained for every contract.
Follow these steps:
  1. Open the contract.
  2. Define the following values in the Pricing section:
    • Undistributed Budgets
      Defines the undistributed budget for broadly defined activities not distributed to control accounts. Enter the value manually.
    • Management Reserve (MR)
      Defines the amount held separately from your contract budget base for changes in the work that will be executed on the contract. Throughout the course of a contract, and as the scope changes, money is taken out of the Management Reserve (MR) and distributed to the control accounts. Each time money is taken out of the MR, a log entry is added. The log tracks the money earned and spent in the management of the contract. Enter the value manually.
  3. Save the changes.
Monitor Performance
Monitor CWBS element performance on the CWBS Element Dashboard page
. This page displays the Earned Value History - CWBS portlet. It displays earned value history data based on the control accounts and summary level planning packages associated to the CWBS element. As time progresses, each new reporting period is displayed on the graph.
  • You can show projected data on the graph. Ask your administrator to set the Update Earned Value History - Contracts job parameters for project ACWP, BCWP and BCWS and then run the job.
  • You can customize this page by adding or removing portlets. Do this from the CWBS Element Layout portlet page Dashboard content in Studio.
Monitor contract performance on the contract dashboard page
. The page displays the Earned Value History portlet. The display includes the earned value history data based on the contract earned value reporting period and the contract earned value history table. With time, each new reporting period is displayed on the graph.
  • You can show projected data on the graph. Your administrator sets the Update Earned Value History - Contracts job parameters for project ACWP, BCWP, and BCWS. Then, run the job to view the earned value history data.
  • Add or remove portlets to customize the page using the contract layout portlet page Dashboard content in Studio.
Activate, Deactivate, or Delete a Contract
When you create a contract, the contract is active by default. Deactivate contracts if they are no longer used. Only an inactive contract can be deleted. You can reactivate inactive contracts at any time. You cannot delete contracts that are active or that have a baseline. Instead, deactivate the contracts.
Follow these steps:
  1. Open the contract.
  2. Complete any of the following steps:
    1. To activate a contract, select the check box next to the Active field.
    2. To deactivate a contract, clear the check box next to the Active field.
    3. To delete a contract, select the check box next to the contract and click Delete. Click Yes to confirm the deletion.
  3. Save the changes.