First Principles Review (FPR) (1 April 2015) highlighted improvements required in Defence on how costs are estimated, contested and managed. Capability Acquisition and Sustainment Group (CASG) in the setup of Functions established the Project Controls Directorate under Program Management Function to improve all the disciplines of project controls (cost, schedule and risk).

*Assuring and enabling delivery of Defence Capability to the agreed scope, schedule, quality and cost.

*Providing competent skilled resources to enable ongoing Program, Project and Product delivery.

• Establishing standardised approach to lessons learned, Pre Gate 2, Program, Project and Product Management to improve capability delivery.
• Implementing standardised transparent Program, Project and Product performance management across the Capability Life Cycle to improve accountability, transparency and trust.
• Providing trusted internal independent assurance and compliance services to ensure Programs, Projects and Products have appropriate oversight and guidance throughout the Capability Life Cycle

In being able to deliver against each of these initiatives this talk will focus on cost estimation and the improvements that are currently being delivered and the roadmap for the future.

A correctly implemented Earned Value Management System (EVMS) will:
• Ensure better up-front planning by the contractor, leading to joint ownership of the Contract Performance Baseline, through an Integrated Baseline Review; and
• Provide the Commonwealth and company management with the same performance data that:
• reflects an objective measure of contract progress;
• aids in analysis of the future cost and schedule outcomes;
• aids in informed and timely decision making by providing early indication of possible problem areas; and
• allows management by exception by drawing management attention to critical variances from the plan.