Project Controls Glossary of Terms

A specific glossary for Earned Value Management can be viewed by clicking here.

Term Meaning
Actual Cost (AC) The actual cost derived from the employed accounting system. Also called ACWP.
Actual Cost of Work Performed (ACWP) The sum of costs actually incurred in accomplishing the work performed.
Approved System An EVM system that has been accepted by a customer, typically documented by an advance agreement or imilar document. Approval may be found at a single geographic location or in multiple locations. Multiple approved systems may also reside within a single geographic location.
Budget at Completion (BAC) The sum total of the time-phased budget.
Budgeted Cost for Work Performed (BCWP) A measure used to quantify the overall progress of the investment in monetary terms. BCWP is calculated by applying a performance measurement factor to the planned cost. (By comparing BCWP with ACWP, it is possible to determine if the investment is under or over budget.) Another term for BCWP is "Earned Value."
Budgeted Cost for Work Scheduled (BCWS) The sum of the budgets for all planned work scheduled to be accomplished within a given time period. This term is often used to designate the cumulative to-date budget.
Contract Data Requirements List (CDRL) An element of the contract that specifies the data submittal requirements.
Contract Performance Report (CPR) The Contract Performance Report (CPR) presents the cost and schedule data for the current period as well as in a cumulative format. Costs are organised by WBS element at a level pre-determined by the HHS IT Investment team. Format 5, Variance Narrative, is a problem analysis and variance-oriented report. It provides explanations for cost and schedule variances that have exceeded thresholds. It provides a written explanation as to why the variance occurred, as well as written descriptions on how the contractor plans to resolve the cause of the variance. Examples of the CPR Forms 1-5 are provided in the CPIC guide.
Contract Work Breakdown Structure (CWBS) A customer-prepared breakout or subdivision of a project typically down to level three which subdivides the investment into all its major hardware, software, and service elements, integrates the customer and contractor effort, provides a framework for the planning, control, and reporting.
Control Account Manager (CAM) A member of the organisation responsible for cost account performance, and for the management of resources to accomplish such tasks.
Control Account Plan (CAP) Control Account Plans (CAPs) document the underlying work packages and provide the CAM with a source to evaluate his or her BCWS, ACWP, and BCWP (Earned Value) of each for the CAM's Control Accounts.
Corrective Action Plan (CAP ) Corrective Action Plans are documents that allow Investment Managers to define the strategy that will be employed to improve the performance of their investments.
Cost Performance Index (CPI) Ratio of work accomplished versus work cost incurred for a specified time period. The CPI is an efficiency rating for work accomplished for resources expended.
Cost Variance (CV) The difference between the earned value and the actual cost.
Data Item Description (DID) Data Item Description contains the format and content preparation instructions for the data product generated by the specific and discrete task requirements as delineated in the contract.
Earned Value (EV) EV quantifies the amount or volume of work completed to date, and is commonly known as the Budgeted Cost of Work Performed (BCWP). When compared to the planned value (Budgeted Cost of Work Scheduled) and its actual cost (Actual Cost of Work Performed), EV provides an objective measure of schedule and cost performance.
Earned Value Management (EVM) EVM is a methodology that integrates a programme's work scope, schedule, and resources to enable government and contractor management to objectively track programme progress throughout the project's life cycle.
Earned Value Management Implementation Guide (EVMIG) The EVMIG provides guidance for understanding earned value management concepts, defines objective criteria for earned value management systems and provides guidance in interpreting those criteria for use on large, risky, cost based government programmes. Procedural aspects for Government personnel for specifying and using earned value management systems and for evaluating those systems are also provided.
Earned Value Management System (EVMS) EVMS is the integrated set of processes, applications, and practices that follow the globally accepted guidelines that describe the attributes of an effectively integrated cost, schedule, and technical performance management system.
Estimate at Completion (EAC) A value expressed in either dollars and /or hours, to represent the projected final costs of work when completed. The EAC is calculated as ETC + ACWP.
Estimate to Complete (ETC) The value expressed in either dollars or hours developed to represent the cost of the work required to complete a task. Cobra calculates the ETC by subtracting the budgeted cost of work performed from the budget at complete. The ETC is calculated as BAC - BCWP.
Integrated Baseline Review (IBR) An IBR is intended to verify the technical content and realism of the related performance budgets, resources, and schedules. It should provide a mutual understanding of the inherent risks in the offerors'/ contractors' performance plans and the underlying management control systems, and it should formulate a plan to handle these risks.
Integrated Master Schedule (IMS) The IMS is developed for the certain IT Investment so that tasks and milestones are clearly defined. It is updated regularly to identify IT investment elements that are behind as well as those ahead of schedule. The IMS maps directly to the CWBS enabling the investment management team a single point of reference for all activities.
Joint Surveillance Programme surveillance conducted by the company and customer together in the same review.
Management Reserve (MR) A portion of the Contract Budget Base that is held for management control purposes by the contractor to cover the expense of unanticipated programme requirements. It is not a part of the Performance Measurement Baseline. Another term for Management Reserve is Contingency
Organisational Breakdown Structure (OBS) A hierarchical structure designed to pinpoint the area of an organisation responsible for each part of an investment.
Performance Based Management System (PBMS) Performance Based Management System incorporates performance measures and metrics with careful investment planning to effectively manage investments, programmes, and projects.
Performance Measurement Baseline (PMB) The PMB is the time-phased budget plan against which contract performance is measured. It is formed by the budgets assigned to scheduled cost accounts and the applicable indirect budgets. It equals the total budget less management reserve and undistributed budget. Once the PMB is frozen or established, cost and schedule changes must be processed through formal change control procedures. Authorised changes must then be incorporated into the PMB in a timely manner and reflected in both budgets and schedules.
Planned Value (PV) The assignment of the budget for each reporting period for each work component. Also called BCWS.
Programme A planned effort to achieve an outcome, the progress toward which is discretely measurable.
Programme Surveillance The process of reviewing an individual programme's application of the company's approved EVMS processes.
Responsibility Assignment Matrix (RAM) The RAM correlates the work required by a Contract Work Breakdown Structure (CWBS) element to the functional organisation responsible for accomplishing the assigned tasks. The responsibility assignment matrix is created by intersecting the CWBS with the programme organisational Breakdown Structure (OBS). This intersection identifies the cost account.
Schedule Management Plan (SMP) The Schedule Management Plan defines scope, purpose, and policy; participant roles and responsibilities; objectives; processes and procedures; organisational responsibilities and relationships; tools; reporting requirements; and related documents. It guides the overall implementation of schedule development and management over time.
Schedule Performance Index (SPI) Ratio of work accomplished versus work planned, for a specified time period. The SPI is an efficiency rating for work accomplishment, comparing work accomplished to what should have been accomplished
Schedule Variance (SV) The difference between the budgeted cost of work performed and the budgeted cost of work scheduled at any point in time (BCWP-BCWS).
Statement of Work (SOW) A description of product and service to be procured under contract; a statement of requirements.
Subject Matter Expert (SME) The Subject Matter Expert is the individual(s) who exhibits the highest level of expertise in performing a specialised job, task, or skill within the organisation.
Supplier An organisation or entity, either internal to a company or external to it, from which goods or services are required to complete a programme. Typically, suppliers are subcontractors or sub-tier contractors.
System Surveillance Cross-program EVMS surveillance used to assess the capability to achieve the earned value guidelines. Note: System surveillance may be a summarisation of the programme's surveillance results rather than separate surveillance reviews.
Undistributed Budget (UB) Budget applicable to contract effort which has not yet been identified to specific cost accounts or work packages.
Variance at Completion (VAC) Variance at Complete is the algebraic difference between Budget at Complete and Estimate at Complete.
Work Authorisation Document (WAD) The Work Authorisation Document (WAD) is a document produced by the contractor and used internally. It is not a deliverable item. Included in the WAD are details concerning the task work to be performed, a detailed list of task outputs, CDRL items, and other task-specific deliverables. It also includes the associated budget for the task and authorising signatures that confirm that the staff member is authorised to work on the task. It should not include the number of hours that may be charged. The Government IBR team evaluates the WAD to ensure that the work documented is truly representative of the work to be performed, that the proper signatures are present, and that the deliverables listed are complete and accurate
 
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