Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should modify policies governing EVM to ensure that they address the weaknesses that we identified, taking into consideration the criteria used in this report.

Agency Affected: Department of Commerce

Status: Open

Comments: As of May 2012, the Department of Commence had not updated its policies governing EVM to include a standard structure for defining work products. We will continue to monitor the department's progress in implementing this recommendation.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to implement the EVM practices that address the detailed weaknesses that we identified in appendix II, taking into consideration the criteria used in this report.

Agency Affected: Department of Agriculture

Status: Open

Comments: The Modernize and Innovate the Delivery of Agriculture Services (MIDAS) program conducted an integrated baseline review in October 2010, but as of August 2012 has not provided evidence that its integrated master schedule has been updated. We will continue to monitor the department's progress in implementing this recommendation.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to implement the EVM practices that address the detailed weaknesses that we identified in appendix II, taking into consideration the criteria used in this report.

Agency Affected: Department of Transportation

Status: Open

Comments: As of June 2012, the En Route Automation Modernization (ERAM) program had initiated efforts to revise its integrated master schedule and to validate its cost and schedule baseline in order to address weaknesses identified in its earned value management processes. The program stated that it plans to complete these activities after the start of fiscal year 2013. We will continue to monitor the department's progress in implementing this recommendation.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to implement the EVM practices that address the detailed weaknesses that we identified in appendix II, taking into consideration the criteria used in this report.

Agency Affected: Department of Homeland Security

Status: Closed - Implemented

Comments: The Automated Commercial Environment (ACE) and Integrated Deepwater System--Common Operational Picture (COP) programs took actions to implement key earned value management (EVM) practices. Specifically, in June 2011, the ACE program conducted an integrated baseline review to validate its cost and schedule performance measurement baseline. During this review, the program assessed the quality of the integrated master schedule, including that all tasks were included and that resources had been assigned to these tasks, thus positioning the program to better execute planned work activities. In addition, the Deepwater COP program took actions to improve its ability to schedule and execute work, analyze EVM performance data, and execute management actions to mitigate risks. Specifically, the COP program increased its oversight of the contractor's EVM system though monthly reviews of earned value data in order to more closely monitor the program's schedule, analyze earned value performance data, and coordinate corrective actions--areas of which we also reported as having weaknesses. As a result, the Department of Homeland Security has improved the effectiveness of EVM as a management tool for these key acquisition programs.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to implement the EVM practices that address the detailed weaknesses that we identified in appendix II, taking into consideration the criteria used in this report.

Agency Affected: Department of Veterans Affairs

Status: Closed - Implemented

Comments: The Department of Veterans Affairs formulated policies as part of its Program Management and Accountability System that incorporate critical practices of EVM. Based on these new policies, the department found the VistA-FM program to be poorly planned and managed, areas of which we also reported as having weaknesses. As a result of this evaluation and our recommendation, the department eliminated the program.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to implement the EVM practices that address the detailed weaknesses that we identified in appendix II, taking into consideration the criteria used in this report.

Agency Affected: Department of Commerce

Status: Closed - Implemented

Comments: The Field Data Collection Automation (FDCA) program improved its ability to establish a comprehensive EVM system by implementing metrics to analyze the program schedule and determine if actions are needed to address scheduling issues, such as the improper sequencing of tasks. Further, the program improved its ability to ensure reliable data by integrating EVM data analysis into tools used for monitoring contractor performance. Lastly, the FDCA program has taken steps to improve its use of EV data to manage the acquisition. For example, the program took action to mitigate risks by integrating risk review and analysis into the Decennial Census performance dashboard. As a result, the Department of Commerce has improved the effectiveness of EVM as a management tool for this key system acquisition program.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should modify policies governing EVM to ensure that they address the weaknesses that we identified, taking into consideration the criteria used in this report.

Agency Affected: Department of Agriculture

Status: Open

Comments: The Department of Agriculture updated its policy governing earned value management (EVM), including establishing criteria for program rebaselining; however, the updated policy does not include a standard structure for defining work products. In addition, the department developed an EVM training for executives; however, this training is not required in policy, nor has it been offered. We will continue to monitor the department's progress in implementing this recommendation.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should modify policies governing EVM to ensure that they address the weaknesses that we identified, taking into consideration the criteria used in this report.

Agency Affected: Department of Homeland Security

Status: Open

Comments: The Department of Homeland Security stated that an earned value management (EVM) Working Group was formed on January 25, 2011 to update the existing EVM policy, dated 2007. However, as of June 2012, an updated EVM policy has not been completed. We will continue to monitor the department's progress in implementing this recommendation.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should modify policies governing EVM to ensure that they address the weaknesses that we identified, taking into consideration the criteria used in this report.

Agency Affected: Department of Veterans Affairs

Status: Closed - Implemented

Comments: Veterans Affairs addressed the weaknesses we identified by establishing its Program Management and Accountability System which included clear criteria for implementing the process on IT projects, established a standard structure for defining work products, and identified rebaselining criteria.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to take action to reverse current negative performance trends, as shown in the earned value data, to mitigate the potential cost and schedule overruns.

Agency Affected: Department of Commerce

Status: Closed - Implemented

Comments: The Field Data Collection Automation (FDCA) program improved its ability to assess and to make timely decisions about contractor performance by integrating earned value data analysis into key program management tools. As a result, by July 2010, the FDCA program had reversed negative performance trends and had outperformed it planned cost target by about $5 million, thus mitigating the potential cost overruns expected on this key system acquisition program.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to implement the EVM practices that address the detailed weaknesses that we identified in appendix II, taking into consideration the criteria used in this report.

Agency Affected: National Aeronautics and Space Administration

Status: Open

Comments: NASA officials have described several improvements in its programs' EVM practices. For example, officials stated that the James Webb Space Telescope program has modified its contract to require monthly variance analysis. For the Juno program, officials stated that an integrated baseline review had been held for the Flight System. For the Mars Science Laboratory, officials stated that an estimate-to-complete analysis had been conducted. When we confirm these and other actions taken by the agency, we will provide updated information.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to take action to reverse current negative performance trends, as shown in the earned value data, to mitigate the potential cost and schedule overruns.

Agency Affected: Department of Homeland Security

Status: Closed - Implemented

Comments: The Automated Commercial Environment (ACE) program switched from using a cost-plus-fixed-fee contract structure, where costs can be adjusted as a result of changes in the work to be performed, to using a firm-fixed-price structure with its major contractor. Consistent with this approach, in June 2010, the ACE program agreed to a firm-fixed-price task order with its major contractor that included the remaining implementation work through program completion. Because a firm-fixed-price contract places maximum risk on the contractor to provide the deliverable at the time, place, and price negotiated by the contractor and the government, the ACE program has reduced overall program risk and mitigated the potential for cost overruns (including those associated with schedule delays) on this key system acquisition program.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should modify policies governing EVM to ensure that they address the weaknesses that we identified, taking into consideration the criteria used in this report.

Agency Affected: Department of Justice

Status: Closed - Implemented

Comments: In November 2009, the Department of Justice updated its earned value management (EVM) policy to require training for all personnel with investment oversight and program management responsibilities. In addition, the updated policy requires the use of a standard structure for defining work products. As a result, the Department of Justice has improved its ability to implement EVM across the agency.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to implement the EVM practices that address the detailed weaknesses that we identified in appendix II, taking into consideration the criteria used in this report.

Agency Affected: Department of Defense

Status: Closed - Implemented

Comments: The Warfighter Information Network-Tactical (WIN-T) and the Joint Tactical Radio System-Handheld, Manpack, Small Form Fit (JTRS-HMS) programs took actions to implement key earned value management (EVM) practices. For example, in May 2010, the WIN-T program conducted an integrated baseline review and identified a list of action items intended to improve, among other things, the measurement of earned value and the quality of the program's cost and schedule baselines. The program also improved its ability to use EVM data for decision-making purposes by updating the performance baseline as program changes occurred. Specifically, the program management team documented baseline changes requests to identify work activities that had increased or decreased in value and the rationale for the adjustments, which were subsequently approved by the WIN-T Program Manager. In addition, the JTRS-HMS program sought assistance from the Defense Contract Management Agency to evaluate the program's master schedule on a monthly-basis to identify weaknesses for corrective action. As a result, the Department of Defense has improved the effectiveness of EVM as a management tool for these key system acquisition programs.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to take action to reverse current negative performance trends, as shown in the earned value data, to mitigate the potential cost and schedule overruns.

Agency Affected: Department of Defense

Status: Closed - Implemented

Comments: The Warfighter Information Network-Tactical (WIN-T) program and the Joint Tactical Radio System-Handheld, Manpack, Small Form Fit (JTRS-HMS) programs took actions to improve their negative performance trends. For example, in May 2010, the WIN-T program conducted a review of the performance baseline and identified a list of action items intended to improve, among other things, the measurement of earned value and the quality of the program's schedule baseline. The WIN-T Program Office and prime contractor also conducted comprehensive "deep dive" reviews at a major subcontractor where schedule performance data for planned work were discussed. By January 2011, the WIN-T program had reduced its schedule variance by approximately $4.5 million. In addition, the JTRS-HMS program restructured the contractor management team overseeing system development efforts by replacing key personnel, such as the JTRS Program Director, and reorganizing staff to better align with specific work products. Further, the program identified significant schedule drivers and took action to address them by, for example, revising the program schedule to focus on the delivery of smaller incremental capabilities. By April 2011, the JTRS-HMS program had reduced its schedule variance by approximately $6.3 million. As a result, the Department of Defense has improved schedule performance and reduced the potential for cost overruns associated with schedule delays that likely would have been incurred on these key system acquisition programs.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should modify policies governing EVM to ensure that they address the weaknesses that we identified, taking into consideration the criteria used in this report.

Agency Affected: Department of Defense

Status: Open

Comments: As of May 2012, the Department of Defense (DOD) stated that an Earned Value Management (EVM) integrated program team was in the process of reviewing the Defense Acquisition University EVM curricula. Further, DOD stated that, upon completion of this review, the integrated program team will provide recommendations on ways for the university's EVM curricula to better meet the EVM needs of the DOD services and agencies. We will continue to monitor the department's progress in implementing this recommendation.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to take action to reverse current negative performance trends, as shown in the earned value data, to mitigate the potential cost and schedule overruns.

Agency Affected: National Aeronautics and Space Administration

Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to take action to reverse current negative performance trends, as shown in the earned value data, to mitigate the potential cost and schedule overruns.

Agency Affected: Department of Transportation

Status: Closed - Implemented

Comments: The Surveillance and Broadcast System (SBS) program reported on earned value data trends to an executive-level council on a monthly basis and, by July 2010, had reduced its negative schedule variance. These actions have reduced the potential schedule delays expected on this key system acquisition program.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to take action to reverse current negative performance trends, as shown in the earned value data, to mitigate the potential cost and schedule overruns.

Agency Affected: Department of Veterans Affairs

Status: Closed - Implemented

Comments: The Department of Veterans Affairs formulated policies as part of its Program Management and Accountability System that incorporate critical practices of EVM. Based on these new policies, the department found the VistA-FM program to be poorly planned and managed, areas of which we also reported as having weaknesses. As a result of this evaluation and our recommendation, the department eliminated the program.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should modify policies governing EVM to ensure that they address the weaknesses that we identified, taking into consideration the criteria used in this report.

Agency Affected: National Aeronautics and Space Administration

Status: Closed - Implemented

Comments: In December 2011, NASA updated its project management guidance for IT projects to define and require the use of a standard work breakdown structure. In addition, the updated guidance includes criteria for rebaselining and a description of the required steps to be taken in the event of a rebaseline.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to take action to reverse current negative performance trends, as shown in the earned value data, to mitigate the potential cost and schedule overruns.

Agency Affected: Department of Justice

Status: Closed - Implemented

Comments: In August 2010, the Next Generation Identification (NGI) program established an Executive Change Control Board to better prevent contract scope increases. This board is responsible for, among other things, reviewing and approving any change requests that affect the scope, milestones, and/or cost of the NGI development contract. In addition, the department established an independent verification and validation contractor with responsibility for independently reporting on a monthly basis the status of the NGI program, including earned value data. As a result, by February 2011, the NGI had reduced the program's cost variance to approximately 1.6 percent of the cumulative cost of work performed, thus improving cost performance and reducing the potential cost overruns expected on this key system acquisition program.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should direct key system acquisition programs to take action to reverse current negative performance trends, as shown in the earned value data, to mitigate the potential cost and schedule overruns.

Agency Affected: Department of Agriculture

Status: Open

Comments: As of August 2012, the Modernize and Innovate the Delivery of Agriculture Services (MIDAS) program had not yet taken action to reverse negative performance trends to mitigate potential cost and schedule overruns. When we confirm actions taken to mitigate and reverse these trends, we will provide updated information.

Recommendation: In order to address the weaknesses identified in agencies' policies and practices in using EVM, the Secretaries of the Departments of Agriculture, Commerce, Defense, Homeland Security, Justice, Transportation, and Veterans Affairs and the Administrator of the National Aeronautics and Space Administration should modify policies governing EVM to ensure that they address the weaknesses that we identified, taking into consideration the criteria used in this report.

Agency Affected: Department of Transportation

Status: Closed - Implemented

Comments: In July 2010, the Department of Transportation updated its earned value management (EVM) policy to include consistent requirements for complying with industry EVM standards. In addition, the updated policy requires EVM training for executive-level staff and the use of a standard structure for defining work products. As a result, the Department of Transportation has improved its ability to implement EVM across the agency.