Integrated Baseline Review

The following learning objectives are covered in this lesson:

• Identify the primary factors that the government should review to evaluate the contractor's PMB during an Integrated Baseline Review (IBR).
• Identify the three reasons for PMB changes, and recognize their impact.

1. The Cost Performance Index (CPI) and Schedule Performance Index (SPI) indicate the performance efficiency factors that the contractor has achieved to date. Anytime the CPI or SPI are running significantly below 1.0, rebaselining may be necessary in order to complete the program. Generally, a CPI or SPI falling 10% or more below 1.0 is considered significant. The To Complete Performance Index (TCPI) indicates the efficiency factor that the contractor must achieve from "time now" to meet the budget at completion (BAC) or estimate at completion (EAC).

A TCPI greater than 1.0 indicates the contractor must work more efficiently that they have in the past to stay within the BAC or meet the EAC. These performance indices may indicate the need to conduct an Integrated Baseline Review (IBR). The IBR assesses the validity of the program management baseline (PMB) and identifies the risks associated with executing to the current PMB. Participants in an IBR typically include the government PM and technical staff, along with the related contractor's staff. During an IBR, the primary factors that are evaluated include:

• The technical scope of the PMB
• Program schedule requirements
• Effective resource allocation to ensure that the work can be accomplished

2. There may be considerable risks associated with the current PMB indicating a need to rebaseline the program in order to make it executable. Changing the PMB can be caused by any one of the following three reasons:

• Contract changes : only applies to changes/contract modifications directed by the government, not the contractor.
• Internal re-planning : occurs when the contractor's original plan needs adjustment in response to problems or the opportunity to capitalize on efficiencies. The remaining work is then replanned by the contractor PM using the remaining budget and schedule.
• Formal re-programming : occurs when the remaining budget and schedule is unrealistic; the contractor requires more time and dollars; the PMB exceeds the contract target cost and an over target baseline (OTB) occurs and the budget is insufficient; and the original objectives cannot be met.