Integrated Baseline Review

The National Defense Industrial Association recently released an updated guide for conducting integrated baseline reviews. According to its executive summary, the document "describes the purpose of the Integrated Baseline Review (IBR). It describes the overall, ongoing IBR process and specifically describes the IBR event, which is the formal review jointly conducted by the customer and supplier teams."

Further, the Sept. 1 document states:

While the overall IBR is a continuous process of analysis of the Performance Measurement Baseline (PMB) and its executability, the IBR event is a formal review that occurs at a point in time. Specific conditions within a project’s life cycle warrant an IBR event. These include the initial establishment of the project PMB, either before contract award (when a pre-award IBR is required) or after contract award as determined by the customer, as well as significant changes to the original PMB, e.g., a significant contract modification or a major project replan. IBR events may also recur any time a PMB assessment determines the need for a subsequent IBR. Recurring IBRs can be initiated by the customer Project Manager (PM) or supplier PM.

An effective IBR process leads to a better understanding of project risks and opportunities. With the common definitions and framework provided by this guide, the expectations and objectives of the customer and supplier will be better aligned and key stakeholder engagement will be enhanced. The IBR process enables PMs to effectively assess the PMB and to determine its adequacy for successful project execution.

Pre- or post-award IBRs are directed on all projects requiring Earned Value Management Systems (EVMS). The solicitation will specify which type of IBR applies. For pre-award IBRs, the supplier must establish the PMB and the organization that will manage it prior to contract award. For post-award IBRs the supplier must establish a PMB as soon as possible after receipt of the Authorization to Proceed (ATP) and begin preparations for the initial post-award IBR event. Both types of reviews should follow the structured approach for conducting the IBR review as described in this guide.

Inside the Pentagon reported on June 1 that the F-35 Joint Strike Fighter program is slated to complete an IBR by the second quarter of fiscal year 2011. The review comes in the wake of a Defense Department report to Congress that strongly criticized the Lockheed Martin division that builds the JSF for ignoring key management rules. However, according to Lockheed the department has stopped short of revoking the contractor's management certification. Further:

In a report sent to Congress today, the Pentagon declares Lockheed's aircraft division in Ft. Worth, TX, "was determined to be non-compliant" with the department's standards for earned value management, Pentagon acquisition chief Ashton Carter's preferred tool for managing the cost and schedule of major programs.

The "systemic corporate level problem" is "disappointing and unacceptable," the Defense Department writes, adding that the Pentagon is "challenging Lockheed Martin to deal with this issue on all levels."

Inside the Pentagon obtained a copy of the report, which details plans to continue the troubled F-35 program despite cost increases and schedule delays.

Carter's office uses earned value management to flag problems, forecast cost and schedule performance and get troubled programs back on track. The tool integrates the technical, cost and schedule parameters of a contract, letting program officials develop an integrated baseline and objectively measure progress.

Since late last year, Carter's office has been reviewing the Lockheed sector's failure to fully implement the management rules, as Inside the Pentagon has reported. Defense officials have weighed whether to revoke the sector's certification for its earned value management system (EVMS), which applies to all Lockheed aircraft built in Ft. Worth.

But despite the new criticism in the report, Lockheed spokesman Joe Stout said the contractor remains certified. "We have received no notice that affects our EVMS certification," Stout told ITP.

Lockheed has been working closely with the Defense Contract Management Agency to develop a corrective action plan that "will address all issues and lead to resolution of all concerns," Stout said. The agency is expected to approve details of the plan in the near future, he added, noting that Lockheed "will diligently work to meet the established milestones in the months ahead."

The report states DOD is providing Lockheed with scheduling, program management, technical, and earned value management compliance expertise and assistance. Carter writes that the corrective action plan is due to be completed and accepted by the agency by June 30, and that the plan is supposed to show "measurable progress leading to successful completion" of a compliance review, as determined by the agency, by the first quarter of fiscal year 2011. Successful execution of the integrated baseline review is slated for the second quarter of FY-11.