Using Earned Value Data to Detect Potential Problems in Acquisition Contracts
AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH GRADUATE SCHOOL OF ENGINEERING AND MANAGEMENT
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Government contractors report earned value EV information to government agencies in monthly Contract Performance Reports CPR. Though major differences may exist in the data between subsequent CPRs, we know of no government effort to detect these occurrences. The identification of major changes may locate and isolate problems and thus prevent million and billion dollar cost and schedule overruns. In this study, we develop an approach to identify changes in the Cost Performance Index CPI and the Schedule Performance Index SPI that may indicate problems with contract performance. We find the detection algorithm indentifies changes in the CPI and the SPI that correspond to large future changes in the Estimate at Complete EAC. The ability to detect unusual changes provides decision-makers with warnings for potential problems for acquisition contracts.
- Administration and Management
- Economics and Cost Analysis