Earned Value Management Gold Card

The U.S. National Science Foundation Earned Value Management (EVM) Gold Card is a guideline document that outlines key earned-value concepts for managing NSF-funded projects that require earned value management.

It helps measure project performance in terms of cost, schedule and scope, allowing stakeholders and NSF to effectively monitor and control projects, ensuring adherence to established project goals.

Total Project Cost (TPC)*
- Other Direct Costs (ODC)*
- Management Reserve¹ held by NSF*
- Award Amount^§
  - Contingency²*^§
  - Profit/fee¹^§
  - Performance Measurement Baseline (PMB)³^§
    - Summary Level Planning Package (SLLPs)^§
    - Undistributed Budget (UB; activities not yet distributed to the control account)^§
    - Control Accounts (CA)⁴^§
      - Planning Packages (PP; far-term activities within a control account)^§
        Work Packages (WP; near-term, detail-planned activities within a control account)^§

^{* NSF held and managed.}
^{§ Recipient held and managed.}

^{1. If authorized as part of the total project cost.}

^{2. During execution, contingency moves into the performance measurement baseline, per change control process.}

^{3. Performance measurement baseline = CAs + UB + SLPPs = Budget at completion (BAC).}

^{4. Control account = WP + PPs.}

Components

CA: Control Account = WPs +PPs
MR: Management Reserve (held by NSF)
ODC: Other Direct Costs (including service or equipment provided by others)
PMB: Performance Measurement Baseline = CAs + UB + SLPPs = BAC
PP: Planning Package (far-term activities within a control account)
SLPP: Summary Level Planning Package
TPC: Total Project Cost
- TPC_NSB = Total Project Cost (NSB authorized)
- TPC_AWD = Award Amount to Awardee (PMB + contingency + profit/fee)
- TPC_EVM = Total Project Cost managed by Awardee (PMB + contingency)
UB: Undistributed Budget (activities not yet distributed to control account)
WP: Work Package (near-term, detail-planned activities within a control account)

EVM basic components

AC = Actual Cost = ACWP = Actual Cost of Work Performed
BAC = Budget at Completion = ∑BCWS = Sum of Budgeted Cost for Work Scheduled
EAC = Estimate at Completion = ACWP + ETC
ETC = Estimated Cost of Work Remaining (WR)
EV = Earned Value = BCWP = Budgeted Cost for Work Performed
PV = Planned Value = BCWS = Budgeted Cost for Work Scheduled

At start of construction stage

During construction stage

Variances

CV³ = EV – AC = BCWP – ACWP = Cost variance
SV³ = EV – PV = BCWP – BCWS = Schedule variance
CV% = (EV – AC) / EV = (BCWP– ACWP) / BCWP = Cost variance %
SV% = (EV – PV) / PV = (BCWP– BCWS) / BCWS = Schedule variance %
VAC = BAC – EAC = Variance at completion

Overall status

% scheduled = PV_cum/BAC = BCWS_cum/BAC
% complete = EV_cum/BAC = BCWP_cum/BAC
% budget spent = AC_cum/BAC = ACWP_cum/BAC
Work remaining (WR) = BAC – EV_cum = BAC – BCWP_cum

Performance indices

Favorable is >1.0, unfavorable is <1.0.

CPI = EV / AC = BCWP / ACWP = Cost performance index
SPI = EV / PV = BCWP / BCWS = Schedule performance index
TCPI_EAC = WR / (EAC – AC_cum) = EAC-based to complete performance index

Estimate-at-completion formulae

EAC = BAC / CPI_cum = Estimate at completion (general)
EAC = AC_cum + ETC= Estimate at completion (general)
EAC_CPIcum = AC_cum + WR/CPI_cum = Estimate at completion (CPI)
EAC_composite = AC_cum + WR/(CPI_cum * SPI_cum) = Estimate at completion (composite)
RAEAC = AC_cum + ETC + risk exposure= Risk-adjusted estimate at completion (general)
RAEAC = EAC + risk exposure= Risk-adjusted estimate at completion (general)

Notes

¹ If authorized as part of TPC.

² During execution, contingency moves into the PMB per change control process.

³ Favorable > 0, Unfavorable < 0.

Earned Value Management Gold Card

Research Infrastructure Office (BFA/RIO)

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Components