Preparing for the New Department of Defense Integrated Program Management Reporting Requirements

Posted by Guest Author on March 19, 2020

Integrated Program Management Reporting Requirements EVM

By Dave Scott, Managing Director at BDO

For government contractors that have a pending contract award, or are considering bidding on a contract with the Department of Defense (DoD), the department’s new Integrated Program Management Reporting (IPMR) requirement is a significant change in earned value management (EVM) reporting. The new requirement, known as the Integrated Program Management Data Analysis Report (IPMDAR), will require government contractors to change their processes and systems to ensure compliance.

Specifically, it pertains to the Defense Federal Acquisition Regulations Supplement (DFARS) clauses requiring project performance reporting using EVM (DFARS 252.234-7001, 7002).

The DFARS clauses require EVM reporting on non-firm fixed-price, development, modernization and enhancement contracts over $20 million. This new requirement will be applied to contracts awarded towards the end of the first half of calendar year 2020. It may also be applied retroactively as a result of significant contract options or modifications of existing contracts.


 

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What is the new DoD Integrated Program Management Reporting requirement?

The current DoD Integrated Program Management Reporting (Project Schedule & EVM Reporting) Data Item Description (DID) applied to contracts will soon be replaced. The new DID requires more detailed project performance information, tighter integration between the project schedule and costs, and must be delivered electronically by the contractor. 

How is it different from the current DoD IPMR requirement?

The new IPMDAR requirements are specified in the DID DI-MGMT-81861B, which will soon be published by the DoD Acquisition, Analytics and Policy (AAP) organization’s EVM division.  

The new IPMDAR contains data that will enable the government to better measure and analyze project performance—with the primary purpose to provide timely and accurate information regarding the current project status in terms of cost performance, schedule performance and forecasts. The following table presents a comparison between the DIDs.

Current IPMR Requirement

New IPMDAR Requirement

Defined reporting formats provided monthly

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Electronic data interchange file submitted monthly

Project performance reporting level identified in the Contract Data Requirement List (CDRL) but generally above the control account level

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Project performance data required at the control account level and may be required at a lower work package level

Forecast estimates at completion and at the reporting level

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Time phased (monthly) forecasts provided at the level at which data is reported

Only DoD ACAT1 program contracts had to upload data electronically to the DoD EVM Central Repository

>>>

All DoD contracts regardless of ACAT level must upload their program data to the DoD EVM Central Repository

Integrated Master Schedule (IMS), IPMR Reports and Variance Analysis typically due around the 20th working day of the month

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DoD prefers the IMS within a few days after the close of the current period with contract performance and variance analysis reporting to follow, but no later than the 16th working day. May be defined in the CDRL

Limited interaction with government program office regarding IPMR reporting

>>>

Encourages early delivery of relevant information and collaboration with government program office regarding project performance results and root cause of variances

What potential challenges should my organization be prepared to address?

The new DoD DID presents several challenges for organizations expecting contract awards or a significant contract modification, which include the DFARS EVM reporting requirement. The challenges comprise of the following:

  • Changing from the monthly delivery of fixed reports, IPMR formats 1 through 7, to delivery of an electronic data file which enables the government analysis and reporting.  
  • Uploading an electronic data file to the DoD EVM Central Repository (EVM-CR) in the prescribed table structure and JavaScript Object Notation (JSON) file format. Previously electronic delivery was only required for DoD ACAT1 programs but is now required for all programs.
  • Upgrading EVM data integration and data quality due to the linkages between the data tables which will require an improvement in program cost and schedule integration.
  • Presenting lower level program data that was not typically included in the old IPMR format reports.
  • Presenting time-phased forecast information rather than just an estimate at completion.
  • Providing an early delivery of the program integrated master schedule before the cost performance, and variance datasets.
  • Adopting a collaborative approach with the government program office regarding the staged delivery of project performance information and interactions regarding variances.  

What can my organization do now to ensure compliance with the new IPMDAR requirements?

Your organization should conduct a comprehensive assessment of your earned value management system (EVMS) and processes to identify the impacts of the new DoD IPMDAR DID.

Steps to take include:

  • Identify any potential data issues which may be problematic due to cost and schedule integration for presenting lower level data.
  • Identify any changes in processes which are required to address data issues, as well as the production and validation of the electronic file format. 
  • Identify any changes required in your organization’s EVM System Description Document due to process or system changes.  
  • Train program personnel regarding new EVMS processes and how to collaborate with the government program office in tailoring deliveries by date.
  • Conduct an evaluation of your EVMS as compared to the EIA-748 standard 32 guidelines.

IPMDAR Benefits

Addressing the IPMDAR requirement challenges now will not only ensure future contract reporting compliance, but will provide an opportunity for your organization to streamline internal processes in order to access real-time project performance information.

A better understanding of project schedule and costs will allow for more meaningful decision making, as well as foster improved data collaboration between your organization and the government program office.


About the Author

Dave Scott is a managing director at BDO for Program Optimization and Project Controls solutions. He has more than 25 years of experience with both government and commercial customers in the implementation of systems and methodologies to improve management processes. Dave has extensive experience designing, implementing, and supporting compliant EVM Systems based on Deltek PPM solutions for government contractors. In addition, he has provided EVMS assurance services supporting government contractors EVMS compliance with the ANSI/EIA 748 standard. Dave is a member of the College of Performance Management (CPM) and supports the National Defense Industrial Association (NDIA) Integrated Program Management Division (IPMD).