1. Program and Project Management
Policy Development
Overview and Rationale
Sandra Smalley
Office of the Chief Engineer
Used with permission Page 1

2. Objectives of Session
Provide:
• A high-level overview of recent policy
developments
• An understanding of the purpose of
the selected developments
• A preview of some upcoming policy
developments
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3. Recent Policy Developments
Overview
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4. Policy Developments
2007
• NPR 7120.5 D - NASA Space Flight
Program and Project Management
Requirements
“This revision of NPR 7120.5 is part of a
realignment of governing documents within
NASA designed to increase accountability and
general clarity in the flow-down of management
process requirements.”
• NPR 7123.1A - NASA Systems Engineering
Processes and Requirements
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5. Policy Developments
2008
• NPD 1000.0A - Governance and Strategic
Management
• NPR 7120.7 - NASA Information Technology
and Institutional Infrastructure Program and
Project Management Requirements
• NPR 7120.8 - NASA Research and
Technology Program and Project
Management Requirements
• NPR 8000.4 - Agency Risk Management
Procedural Requirements
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6. Policy Developments
2009
• NPD 1000.5 - Policy for NASA Acquisition
• NPR 7120.5D - NID
• NPD 7120.4 - Program/Project
Management
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7. Policy Development
Other Supporting Work
Handbook development
• The SRB Handbook
• The Risk Management Handbook
• NPR 7120.5 Handbook
• WBS Handbook
• Cost Estimating Handbook
• Schedule Management Handbook
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8. Policy Development
Why all the activity?
• Improve program/project performance
against external commitments (real and
perceived)
• More effectively support programs and
projects by improving and tailoring policy,
processes, and requirements
– Recognize the multi-center environment in many
programs and projects. This includes giving more
attention to common principles, terminology, and
practices while recognizing the differences that
exist in Center processes and historic practices.
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9. Improving Agency Performance
Approach
• Employ a sound approach to Acquisition – NPD 1000.5
• Ensure early and continuing alignment of program
project planning and budget process
– Strategic planning meetings – NPR 7120.5D NID
– PPBE process with annual portfolio review
• Establish the proper set of requirements
• Establish a life cycle process that keeps the
program/project on track
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10. Selected Policy Developments
• Acquisition
• Establishing the proper set of requirements
• Space Flight and IT
Baseline Policy
Joint Confidence Level (JCL) Policy
• Preview of NPR 7120.5 Rev E
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11. Selected Policy Developments
Acquisition – Definition (NPD 1000.5)
Acquisition is the process for obtaining the
systems, service, construction, and
supplies the Agency needs to fulfill its
mission.
Acquisition, which may include procurement
(contracting for products and services), begins
with an idea or proposal that aligns with the NASA
Strategic Plan and fulfills an identified need and
ends with the completion of the program or project
or the final disposition of the product or service.
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12. Selected Acquisition Policy
(NPD 1000.5)
• Meet programmatic, institutional, technical, cost, and
schedule commitments
• Base acquisition on realistic cost estimates and
achievable schedules
• For space flight and IT, Agency commitments are to be
based on the budgeted cost and schedule associated
with the confidence level approved by the decision
authority.
• Programs and projects are to be annually reviewed by
the responsible Mission Directorate or Mission Support
Office to confirm to the decision authority that their
current baseline life cycle cost estimates, funding
strategy, and the annual NASA budget submissions are
consistent.
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13. Selected Policy Developments
• Acquisition
• Establishing the proper set of requirements
• Space Flight and IT
Baseline Policy
Joint Confidence Level (JCL) Policy
• Preview of NPR 7120.5 Rev E
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14. Establishing the proper set of requirements
• Good requirements that are properly
managed are essential to any successful
undertaking.
• 7120 Series NPRs focus program
management requirements on specific
product lines.
• Tailoring Principles provide a means to
adjust prescribed requirements to a specific
task (e.g., a program/project).
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15. Tailoring - Definition
Tailoring - the process used to adjust or seek
relief from a prescribed requirement to
accommodate the needs of a specific task or
activity (e.g., program/project)
The Tailoring process results in the generation
of Deviations and Waivers depending on the
timing of the request.
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16. Tailoring Principles
• The organization at the level that established
the requirement approves the request for
tailoring of that requirement unless this
authority has been formally delegated
elsewhere.
• The involved management at the next higher
level is informed in a timely manner of the
request for tailoring of a prescribed
requirement.
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17. Policy Selected Developments
• Acquisition
• Establishing the proper set of requirements
• Space Flight and IT
Baseline Policy
Joint Confidence Level (JCL) Policy
• Preview of NPR 7120.5 Rev E
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18. Space Flight and IT – Baseline and JCL
Perspective
• SMC baseline and JCL policy discussions
date back several years.
• The concept and details continue to evolve.
• A number of changes and implementation
details are being considered for NPR 7120.5
Rev. E.
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19. Baseline Policy
Goal
Improve the cost and schedule
performance of programs and projects
by improved planning based on the
integration of cost, schedule, and risk
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20. Joint Cost and Schedule Confidence Level
Definition (Simplified)
The probability that cost will be equal to
or less than the targeted cost and the
schedule will be equal to or less than
the targeted schedule date.
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21. Joint Bivariate Cumulative
Probability Distribution of Cost and
Schedule
Probability
Schedule (y)
(Months)
Cost (x) ($M)
21
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22. Current Policy
• Policy applies to Space Flight and IT programs and
projects in implementation.
• Programs/projects are to be baselined or
rebaselined based on a joint cost and schedule
probabilistic analysis.
• Programs - Baselined or rebaselined at a
confidence level of 70 percent or the level approved
by the decision authority
• Projects are to be baselined or rebaselined at a
confidence level consistent with the program's JCL.
• Projects - As a minimum, funded at a level that is
equivalent to a confidence level of 50 percent or as
approved by the decision authority
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23. Current Policy (Cont.)
• Programs in extended operations generally
are not required to develop a JCL, but new
or upgraded capabilities while in ops will
require a JCL.
• Program and project proposed cost and
schedule baselines will be assessed by an
independent review team.
• External commitments will be based on the
JCL approved by the decision authority.
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24. Baseline Policy
• Commitment Baseline – Basis for
commitments to OMB and Congress
• Management Baseline – Basis for
program/project execution and strategic
management process reporting
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25. Commitment Baseline
Key Attributes
• It is an integrated set of project requirements,
cost, schedule, technical content, and agreed
to JCL that forms the basis for NASA’s
commitment to OMB and Congress.
• It is established at the Key Decision Point
(KDP) that initiates the Implementation
Phase.
• The Commitment Baseline is the only official
NASA baseline for a project.
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26. Unallocated Future Expenses (UFEs)
Needed to understand Management Baseline
Unallocated Future Expenses -
The portion of estimated cost required to meet
specified JCL that cannot yet be allocated to
the specific project WBS sub-elements because
the estimate includes probabilistic risks and
specific needs that are not known until these
risks are realized.
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27. Unallocated Future Expenses (UFEs) (Cont.)
• The term ‘UFE’ was established to make it clear
that (based on experience) these funds are
expected to be required to complete the project
but cannot yet be allocated to a specific WBS
activity.
(The UFE concept is consistent with the non-deterministic nature of
joint cost and schedule estimates based on probabilistic analysis.)
• All UFE are included in the commitment
baseline and the project’s budget.
NOTE – The relationship of UFE to Commitment and Management
Baselines is illustrated in an upcoming slide.
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28. Management Baseline - Key Attributes
• An integrated baseline (set of requirements,
cost, schedule, technical content, and
associated JCL) that forms the foundation for
program/project execution
• The Management Baseline is established at
the Key Decision Point (KDP) that initiates the
Implementation Phase as approved by the
decision authority.
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29. Management Baseline
Key Attributes (cont.)
• The program Management Baseline is the
aggregate of the project Commitment
Baselines plus program operating expenses.
Similarly, the project Management Baseline
equals the Commitment Baseline less any
portion of UFE not released to the project for
project execution.
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30. Relationship of UFE to Project
Commitment and Management Baselines
This UFE is
controlled by
Project Commitment Baseline
UFE the
(External commitments)
Program/MD
Project Management Baseline
(Project Execution)
Project
Manager
Control
Not to scale.
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31. Program and Project Baselines Program
Total Baseline Cost Operating
Expense
Program Management Baseline
Project Management Baseline
UFE Held by Project 2
Project Commitment Baseline
UFE Held by Program
Project -2
UFE Held by Project 1 UFE Held by Project 1
UFE Held by Project 2
Project -1
Project -1 Project -2 Program
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32. Selected Policy Developments
• Acquisition
• Establishing the proper set of requirements
• Space Flight and IT
Baseline Policy
Joint Confidence Level (JCL) Policy
• Preview of NPR 7120.5 Rev E
The Rev E development is in its early stages.
This preview should be viewed as both notional and pre-decisional.
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33. Rev. E Development
Charter
• Build on the NID
• Issue Rev. E before the expiration of the NID
• Fully vet and resolve policy issues raised but not
resolved during the NID development
• Incorporate:
– Any additional changes in NASA policy and
practice,
– Findings from OCE survey process and other
audits
– Lessons learned
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34. Rev. E Development
Charter (Cont.)
• Ensure proper flow down from NPD1000.0A, and NPD
1000.5
• Address inconsistencies among fundamental OCE
documents. The primary focus will be on NPR 7120.5,
NPD 7120.4, NPD 1000.5, and NPR 7123.1A.
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35. Rev. E Development
Working Groups
• Life Cycle Review
• Baseline Policy
• JCL Clarify
• Highly Specialized IT - Cover from PM’s perspective
• NPR 7123 – NPR 7120.5 – Inconsistencies and review
criteria
• Requirements Relief – e.g., Batch processing
• Ops and Program and Project Reviews – Streamline
reviews
• OSMA Issues – Misc.
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36. Rev. E Development
Life Cycle Review
KDP B to KDP C
Phase B
(Preliminary Design and Technology Completion)
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37. Current Project Life Cycle
Area of Focus - KDP B to KDP C
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38. KDP B to KDP C
Overview
Implementation
Formulation
Phase A Phase B Phase C
KDP KDP
B Post Review C
Reporting to DA
Checkpoint to DA
(If a significant
change occurs or the
PDR Readiness interval from the ILCR
Assessment PDR-Based exceeds 6 months )
PDR ILCR
Prerequisite for Technical Integrated review of
locking down the baseline with programmatic
date of the PDR cost, schedule, baselines integrated
and ILCR and risk with technical
information baseline updates
Conduct IBRs P/p Center MD
Not To Scale and update JCL Brief Brief Brief
Periodic SRB Involvement as Appropriate
This preview should be viewed as both notional and pre-decisional.
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39. Single Project and Tightly Coupled Programs
Implementation
Program
KDP KDP
1
Assessment of II
plan to take Post Review
Start of
projects to KDP C Reporting to
projects DA
PDR ILCR
Projects KDP
C
Readiness Checkpoint if significant change
assessment or 6 months
PDR ILCR
Readiness
Assessments and Checkpoints assessment PDR ILCR
Post Review Reporting to
DA Readiness
assessment PDR ILCR
Not To Scale
This preview should be viewed as both notional and pre-decisional.
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40. Rev. E Development
Schedule
First Rev E development meeting – 10/09
NID Expiration – 9/10
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41. Concluding Remarks
• The intent of policy developments is to improve
Agency performance.
• If you view that the resulting processes do not add
value … don’t just tolerate it… or worse yet ignore
it…provide feedback to the office responsible. They
want your feedback.
• Get involved in your office/Center’s process for
providing input during the policy development
process. This input is highly valued.
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42. Backup
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