EVM 101 TEST 1-6 MODULE 1 ANSWERS

EVM 101 TEST 1-6 MODULE 1 ANSWERS. By comparing the budgeted cost for work performed (BCWP) and the actual cost of work performed (ACWP), program managers can determine whether or not: [Define the terms for key EVM elements: budgeted cost for work scheduled (BCWS), budgeted cost for work performed (BCWP), actual cost of work performed (ACWP), budget at completion (BAC), and estimate at completion (EAC)] The project is on budget The project is on schedule The management reserve is sufficient The budget at completion (BAC) is realistic 3) This graph depicts a time-phased performance measurement baseline (PMB) with cumulative budgeted cost for work scheduled (BCWS), budgeted cost for work performed (BCWP), and actual cost of work performed (ACWP). Given this information, which of the following is true at Time Now? (IMAGE DESCRIPTION: PMB graph with BCWS plotted from contract start through contract end. BCWP and ACWP are plotted from contract start through time now. At time now BCWS is $3,000, BCWP value is $4,500, and ACWP value is $3,750.) [Recognize a favorable and unfavorable cost and schedule variance, given a graphic depiction of a time-phased performance measurement baseline (PMB), cumulative budgeted cost for work scheduled (BCWS), budgeted cost for work performed (BCWP), and actual cost of work performed (ACWP)] [Remediation Accessed :N] Schedule variance (SV) and cost variance (CV) are both favorable Cost variance (CV) is favorable, and schedule variance (SV) is unfavorable Schedule variance (SV) is favorable, and cost variance (CV) is unfavorable Schedule variance (SV) and cost variance (CV) are both unfavorable 4) Which of the following documents contains updated forecasts of contract funding requirements by appropriation? [Given typical Earned Value Management (EVM) data and notional Government budget value, recognize that EVM provides information useful for updating budget and funding projections] Contractor Funds Status Report (CFSR) Defense Acquisition Executive Summary (DAES) Selected Acquisition Report (SAR) Unit Cost Report (UCR) 5) Which of the following provides a crosscheck on the validity of the budgeted cost for work performed (BCWP) claimed by a contractor? [Compare EVM and Technical Performance Measurement] Technical performance measures (TPMs) Performance measurement baseline (PMB) Actual cost of work performed (ACWP) Contract Funds Status Report (CFSR) 6) Select the correct statement about the relationship of Earned Value Management (EVM) and the risk management process. [Given a graphical depiction of the Department of Defense (DoD) risk management process, identify typical Earned Value Management (EVM) processes related to each step in the risk management process] EVM cost and schedule variances can help identify risks that may be associated with the variance. Risk management and EVM are stand-alone processes that need not be used in an integrated manner. The risk management process provides helpful cost and schedule performance information to support EVM. Risk reflects future uncertainties, while EVM data provides insight only into past performance so the two processes don’t really support each other. 7) Select the correct statement about the Earned Value Management System (EVMS) Guidelines. [Identify the purpose and benefits of the Earned Value Management System (EVMS) guidelines used by the Department of Defense (DoD).] The EVMS guidelines describe desired management system outcomes such as planning the scope of work required for a contract through its completion. The EVMS Guidelines describe 10 broad categories of activity including risk management and supply chain management. The EVMS Guidelines describe a single universal management system. For contracts on which the government requires Earned Value Management (EVM) as a management tool, the EVMS guidelines are optional guidelines. 8) What is the purpose of the Department of Defense (DoD) Earned Value Management System (EVMS) compliance reviews and surveillance processes? [Describe the purpose and goals for Department of Defense (DoD) Earned Value Management System (EVMS) compliance reviews and surveillance reviews] To ensure contractor compliance with the EVMS guidelines and mitigate management process risk To ensure project completion on schedule and on budget To protect against fraud and inflated costs To ensure the performance measurement baseline (PMB) accurately represents the cost, schedule, and technical aspects of the program 9) Which of the following organizations has overall responsibility for conducting contractor Earned Value Management System (EVMS) compliance review and subsequent approval in the Department of Defense (DoD)? [Describe organizational responsibilities that the Defense Contract Management Agency (DCMA), Defense Contract Audit Agency (DCAA), Program Management Office (PMO), and the supplier share regarding Earned Value Management System (EVMS) compliance reviews.] The Defense Contract Management Agency (DCMA) The contractor The Defense Contract Audit Agency (DCAA) A third party International Organization for Standardization (ISO) certified organization 10) A cost reimbursement contract to build a single prototype refrigeration unit has a contract cost of $25M. What is the Department of Defense (DoD) policy on requiring Earned Value Management (EVM) on this contract? [Identify the Department of Defense (DoD) policy requirements for application of Earned Value Management (EVM) to contracts and subcontracts] Apply EVM; a formal Earned Value Management System (EVMS) approval is not required. Apply EVM; a formal Earned Value Management System (EVMS) approval is required. Only apply EVM if the Milestone Decision Authority (MDA) approves a waiver. EVM is not required. 11) You are the program manager (PM) for a cost-incentive contract valued at $180M. Which of the following might you do as part of your pre-contract award activities? [Recognize typical pre-contract and post-contract award activities relating to Earned Value Management (EVM)] [Remediation Accessed :N] Include a requirement for all formats of the Integrated Program Management Report (IPMR) in the Contract Data Requirements List (CDRL). Tailor the Contract Data Requirements List (CDRL) to include Integrated Program Management Report (IPMR) Formats 1, 5, 6, and 7 only. Tailor the Contract Data Requirements List (CDRL) to require only format 6 of the Integrated Program Management Report (IPMR). The Contract Data Requirements List (CDRL) does not include Integrated Program Management Report (IPMR) reporting requirements. 1) Which of the following is a key benefit of Earned Value Management (EVM) as an integrated program management tool? [Recognize that Earned Value Management (EVM) is a management tool that program managers use for insight into cost, schedule and performance of Department of Defense (DoD) acquisition programs and that supports proactive decision-making] EVM provides insight into contract cost and schedule performance compared to a contract performance measurement baseline (PMB). EVM is a resource management tool that is unrelated to the contract schedule. EVM provides input for the Integrated Master Plan (IMP) and the Integrated Master Schedule (IMS). EVM integrates budget and schedule data to ensure a positive cost variance (CV) and schedule variance (SV). 2) This graph depicts a time-phased performance measurement baseline (PMB) with cumulative budgeted cost for work scheduled (BCWS), budgeted cost for work performed (BCWP), and actual cost of work performed (ACWP). Given this information, which of the following is true at Time Now? (IMAGE DESCRIPTION: PMB graph with BCWS plotted from contract start through contract end. BCWP and ACWP are plotted from contract start through time now. At time now BCWS is $4,000, BCWP value is $5,000, and ACWP value is $6,000.) [Recognize a favorable and unfavorable cost and schedule variance, given a graphic depiction of a time-phased performance measurement baseline (PMB), cumulative budgeted cost for work scheduled (BCWS), budgeted cost for work performed (BCWP), and actual cost of work performed (ACWP)] Schedule variance (SV) is favorable, and cost variance (CV) is unfavorable Schedule variance (SV) and cost variance (CV) are both favorable Schedule variance (SV) is unfavorable, and cost variance (CV) is favorable Schedule variance (SV) and cost variance (CV) are both unfavorable 3) When Earned Value Management (EVM) is required on a contract, which of the following is one of the data items that should be included on the Contract Data Requirements List (CDRL)? [Recognize typical pre-contract and post-contract award activities relating to Earned Value Management (EVM)] The Integrated Program Management Report (IPMR) Integrated Baseline Review (IBR) Performance measurement baseline (PMB) Unit Cost Report (UCR) MODULE 2 1) Which of the following statements describes the Contract Work Breakdown Structure (CWBS)? [Given contract scenario documents (Program Work Breakdown Structure, Contract Work Breakdown Structure, Statement of Work excerpt), recognize the use of the Work Breakdown Structure (WBS) as a management framework describing the scope of work in a contract] It is a complete work breakdown structure (WBS) for a contract that forms the framework for the contractor’s management control system. It is a work breakdown structure (WBS) that encompasses an entire program, including the Contract WBS and "other Government" elements such as government testing. It is used in negotiated acquisitions to communicate Government requirements to prospective contractor and to solicit proposals. It is a complete work breakdown structure (WBS) for a contract that establishes and defines all nonspecification requirements for contractors’ efforts either directly or with the use of specific cited documents. 2) Which of the following provides a way of relating the statement of work (SOW), risk management information, technical performance measurements (TPMs), and cost and schedule performance information reported in the Integrated Program Management Report (IPMR)? [Given scenario documents (Integrated Program Management Report Format 1 and Format 6, risk register, technical performance measures), recognize the integrated program management information that is reported by the Work Breakdown Structure (WBS)] [Remediation Accessed :N] The work breakdown structure (WBS) The Contract Data Requirements List (CDRL) The Request for Proposal (RFP) The Integrated Master Schedule (IMS) 3) What are typical inputs that might cause a program manager (PM) to tailor the Integrated Program Management Report (IPMR) Work Breakdown Structure (WBS) reporting levels for more detailed or lower level WBS insight? [Given contract risk management and Earned Value Management (EVM) data and Department of Defense (DoD) guidance, select Work Breakdown Structure (WBS) elements for EVM reporting below WBS level 3] High cost and high risk