A Cost-Benefit Analysis of Earned Value Management System Criteria
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF LOGISTICS AND ACQUIS ITION MANAGEMENT
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In December 1996, the CostSchedule Control Systems Criteria CSCSC was officially replaced by the Earned Value Management Systems EVMS criteria. The switch to EVMS, coupled with current acquisition reform changes, have left many wondering what the effects of these changes will be. This thesis defines the costs and benefits of the old CSCSC, and then compares them. Additionally, this thesis discusses the changes accompanying the switch to EVMS and the effect on the costs and benefits. The marginal costs of CSCSC are defined as the difference between the costs of a CSCSC compliant system and a contractors normal management control system. The marginal system compliance costs are 334-481 person days, while the marginal operating costs are 50 of the CSCSC compliant operating costs. Fourteen benefits of CSCSC are detailed in this thesis. The most important benefit discovered was the data reliability that comes with a criteria compliant management control system. The main difference between CSCSC and EVMS is the system certification process. Under CSCSC, DoD teams would have to certify a contractors system. Under EVMS, contractors have the ability to self-certify their system with final government approval. Cost savings may result through self-certification without reductions in the benefits.
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