Accession Number : ADA329813

Title :   A Cost-Benefit Analysis of Earned Value Management System Criteria

Descriptive Note : Master's thesis

Corporate Author : AIR FORCE INST OF TECH WRIGHT-PATTERSON AFB OH SCHOOL OF LOGISTICS AND ACQUIS ITION MANAGEMENT

Personal Author(s) : Cole, John R., Jr ; Fussell, Judson M.

PDF Url : ADA329813

Report Date : SEP 1997

Pagination or Media Count : 135

Abstract : In December 1996, the Cost/Schedule Control Systems Criteria (C/SCSC) 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 C/SCSC, 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 C/SCSC are defined as the difference between the costs of a C/SCSC 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 C/SCSC compliant operating costs. Fourteen benefits of C/SCSC 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 C/SCSC and EVMS is the system certification process. Under C/SCSC, DoD teams would have to certify a contractor's 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.

Descriptors :   *MANAGEMENT INFORMATION SYSTEMS, *CONTRACT ADMINISTRATION, *COST BENEFIT ANALYSIS, MANAGEMENT PLANNING AND CONTROL, FINANCIAL MANAGEMENT, COST ANALYSIS, CONTRACTORS, COST ESTIMATES, THESES, MILITARY PROCUREMENT, DEFENSE INDUSTRY, SAVINGS, MILITARY BUDGETS.

Subject Categories : Administration and Management

Distribution Statement : APPROVED FOR PUBLIC RELEASE