Single Point Adjustments: A New Definition with Examples. Acquisition Review Quarterly, Fall 2001

Abstract

Disciplined maintenance of the Performance Measurement Baseline is essential for Earned Value Management. A stable baseline provides the earned value (EV) analyst with the metrics needed to bound a project's Estimate at Completion (EAC) range. A single point adjustment (SPA) is made when a contract's existing cost and/or schedule variances are set to zero and all the remaining work is replanned with the goal of completing the project on schedule and on budget. The SPA obscures past performance, collapses the EAC range, and makes the resulting EAC unreliable. The origin of SPA, four recent project SPAs, and the SPA effect on the project's EACs are examined. A new SPA definition is recommended for EV glossaries that currently omit this topic.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 2002
Accession Number
ADA403460

Entities

People

  • David C. Bachman

Organizations

  • Ballistic Missile Defense Organization

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Air Force Facilities
  • Composite Materials
  • Contractors
  • Contracts
  • Cost Overruns
  • Costs
  • Department Of Defense
  • Global Positioning Systems
  • Governments
  • Materials
  • Measurement
  • Procurement
  • Software Development
  • Systems Management
  • Weapon Systems

Readers

  • Life Cycle Cost Analysis
  • Systems Analysis and Design
  • Virology (or Medical Virology).