GPR 7120.7B Admin Ext 08.09.2023.pdf

DIRECTIVE NO. GPR 7120.7B APPROVED BY Signature: Original Signed By EFFECTIVE DATE: September 17, 2018 NAME: David F. Mitchell EXPIRATION DATE: September 17, 2024 TITLE: Director of Flight Projects

CHECK THE GSFC DIRECTIVES MANAGEMENT SYSTEM AT

http://gdms.gsfc.nasa.gov TO VERIFY THAT THIS IS THE CORRECT VERSION PRIOR TO USE.

8/16

Goddard Procedural Requirements (GPR)

COMPLIANCE IS MANDATORY

Responsible Office: Code 400 / Flight Projects Directorate Title: Funded Schedule Margin and Budget Margin for Flight Projects

PREFACE

P.1 PURPOSE

This GPR documents the funded schedule margin and budget margin requirements for formulating, executing and operating projects at NASA Goddard Space Flight Center (GSFC) that report directly to programs or non-GSFC projects. It describes how those margins are to be tracked and reported during the formulation, implementation and operations phases. The requirements herein represent decades of GSFC’s experience in fulfilling NASA Procedural Requirements (NPR) 7120.5, NASA Space Flight Program and Project Management Requirements relevant to budget and schedule, through the management of numerous successful spaceflight projects. It is through the study and analysis of these past missions that these requirements were derived.

P.2 APPLICABILITY

a. This GPR applies to all GSFC-managed space flight projects and enterprise ground system projects that report directly to programs or non-GSFC projects and are developed under NPR 7120.5.

Figure 1 illustrates the relationship between programs and projects relative to GPR applicability.

Figure 1. GPR 7120.7B Program and Project Applicability Relationships

DIRECTIVE NO. GPR 7120.7B Page 2 of 27 EFFECTIVE DATE: September 17, 2018 EXPIRATION DATE: September 17, 2024

b. This GPR does not apply to in-house instrument/payload flight projects that do not report directly to programs and that are subordinate to GSFC flight projects: e.g., TIRS-2, OCI, or L’Ralph. Funded schedule and budget margins for such subordinate projects will be based on the requirements established with their parent mission flight projects.

c. Some projects were begun and implemented under previous versions of this GPR. Appendix D, GPR Applicability Table, shows the applicability by project to the various revisions of the GPR.

This GPR is optional for projects developed under NPR 7120.8 and do no harm projects, as defined by GPR 8705.4, Risk Classification and Risk-Based SMA Practices for GSFC Payloads and Systems.

d. In this directive, all document citations are assumed to be the latest version unless otherwise noted.

e. In this directive, all mandatory actions (i.e., requirements) are denoted by statements containing the term “shall.” The terms “may” or “can” denote discretionary privilege or permission; “should” denotes a good practice and is recommended but not required; “will” denotes expected outcome; and “are/is” denotes descriptive material.

P.3 AUTHORITY

NPR 7120.5, NASA Space Flight Program and Project Management Requirements

P.4 APPLICABLE DOCUMENTS AND FORMS

NPR 7120.8, NASA Research and Technology Program and Project Management Requirements GPR 8705.4, Risk Classification and Risk-Based SMA Practices for GSFC Payloads and Systems

P.5 CANCELLATION

GPR 7120.7A, Schedule and Budget Margins for Flight Projects

P.6 SAFETY

None

P.7 TRAINING

None

DIRECTIVE NO. GPR 7120.7B Page 3 of 27

P.8 RECORDS

Record Title Record Custodian Retention

Monthly Status Reviews

(MSR)

Project tag-up

Project budget/schedule records

FPD librarian (FPD Operations hub)

FPD librarian (FPD Operations hub)

Performing organization

a. Projects of historical significance (see NRRS 8/101 for description):

*NRRS 8/103: Temporary. Cut off records at close of program/project or in 5-year blocks. Destroy/delete between 0 and 30 years.

b. Programs/projects that do not meet the criteria stated in 8/101:

*NRRS 8/107: Temporary.

Destroy/delete between 0 and 30 years after program/project termination.

*NRRS 1441.1 – NASA Records Retention Schedules

P.9 MEASUREMENT/VERIFICATION

Project funded schedule margin and budget margin metrics are reported monthly to the Center Management Council (CMC), which is responsible for ensuring conformance to these requirements.

DIRECTIVE NO. GPR 7120.7B Page 4 of 27

PROCEDURES

1.0 GENERAL

This document provides guidelines and requirements for the establishment and tracking of funded schedule margin and budget margin, and trends, during the formulation phase of the project, and for the tracking of margin trends during the formulation, implementation and operations phases. In the event of a project re-plan or re-baseline, these requirements will apply.

1.1 Requirements Identification

In this document, requirements are identified by a prefix denoting the directive number followed by a unique number (e.g., 7120.7-R012). In the interest of readability, the prefix for requirement identifiers have not been included in the body of this document. Use the full identifier when referencing or tracing these requirements in other documents.

Appendix C contains a complete list of the requirements and their locations. In the appendix, requirements are identified as follows:

NEW: New in this version or document REVISED: Changed since the last approved version CANCELED: Rescinded WITHDRAWN: Absorbed into another requirement or included in the body of the document

1.2 Funded Schedule Margin and Budget Margin Definitions

Funded Schedule Margin: Funded schedule margin is the project-held priced time allowance in working days of duration allocated to project schedules to protect them from uncertainty and risk, while increasing the probability of finishing on time. Funded schedule margin is expressed in both working days and dollars, but does not constitute specific project work scope. With respect to this GPR, funded schedule margin is always considered in relation to the project’s critical path. (See Section 2.0 for more on funded schedule margin.)

Budget Margin: Budget margin is the percentage calculated by dividing the available project-held unallocated future expenses (UFE) by the remaining cost-to-go for a designated project phase (minus the UFE as illustrated in Figure 2). Similar to funded schedule margin, UFE is included in project budgets to protect them from uncertainty and risk. (See Section 3.0 for more on budget margin.)

DIRECTIVE NO. GPR 7120.7B Page 5 of 27

Figure 2. Budget Margin Formula

1.3 Funded Schedule Margin and Budget Margin Requirements by Project Type

Funded schedule margin and budget margin requirements for mission flight projects, standalone instrument/payload flight projects, and enterprise ground system projects are summarized in Tables 1, 2, and 3 respectively, and described in further detail in subsequent sections.

1.4 Relationship to Earned Value Management

Although the application of funded schedule margin and budget margin directly impacts a project’s baseline and earned value management (EVM) system (EVMS), it is not the intent of this directive to serve as a guide or instruction on how to incorporate funded schedule margin or budget margins into a project baseline or EVMS. Projects should address the application of funded schedule margin and budget margin in their EVM implementation plans.

1.5 Noncompliance with Funded Schedule Margin and Budget Margin Requirements The CMC will direct actions in response to noncompliance with the required funded schedule margin and budget margin levels defined herein. At Key Decision Points (KDP), the position of the CMC will be reflected in GSFC’s letter to the KDP decision authority.

DIRECTIVE NO. GPR 7120.7B Page 6 of 27

Table 1. Funded Schedule Margin and Budget Margin Requirements for Mission Flight Projects

Event

GPR

Require -ment

Margin Type Phase A Phase B Phase C Phase D Phase E Phase F

R003 R004 R005

Funded Schedule Margin (along the critical path) None None

Interval 1: 1.5 months funded schedule margin allocated for each 12 months of planned duration between KDP-C approval and start of Observatory I&T (see Figure 3)

Interval 2: 2.0 months funded schedule margin allocated for each 12 months of planned duration between start of Observatory I&T and delivery to launch site (or to planned storage)

AND

Interval 3: 1 week funded schedule margin allocated for each month of planned duration from observatory delivery to launch site to launch (see Figure 3)

None None

R009

Budget Margin (through encumbrances & liens)

R003 R004 R005

Funded Schedule Margin (along the critical path) N/A None

Interval 1: 1.5 months funded schedule margin allocated for each 12 months of planned duration between KDP-C approval and start of Observatory I&T (see Figure 3)

Interval 2: 2.0 months funded schedule margin allocated for each 12 months of planned duration between start of Observatory I&T and delivery to launch site (or to planned storage)

AND

Interval 3: 1 week funded schedule margin allocated for each month of planned duration from observatory delivery to launch site to launch (see Figure 3)

None None

R009

Budget Margin (through encumbrances & liens)

N/A

R003 R004 R005

Funded Schedule Margin (along the critical path) N/A N/A

Interval 1: 1.5 months funded schedule margin allocated for each 12 months of planned duration between KDP-C approval and start of Observatory I&T (see Figure 3)

Interval 2: 2.0 months funded schedule margin allocated for each 12 months of planned duration between start of Observatory I&T and delivery to launch site (or to planned storage)

AND

Interval 3: 1 week funded schedule margin allocated for each month of planned duration from observatory delivery to launch site to launch (see Figure 3)

None None

R010

Budget Margin (through encumbrances & liens)

N/A N/A

R004 R005

Funded Schedule Margin (along the critical path) N/A N/A N/A

Interval 2: 2.0 months funded schedule margin allocated for each 12 months of planned duration between start of Observatory I&T and delivery to launch site (or to planned storage)

AND

Interval 3: 1 week funded schedule margin allocated for each month of planned duration from observatory delivery to launch site to launch (see Figure 3)

None None

R011

Budget Margin (through encumbrances & liens)

N/A N/A N/A ≥ 20% on cost-to-go through Phase D

(see Figure 6)

R005 Funded Schedule Margin (along the critical path) N/A N/A N/A

Interval 3: 1 week funded schedule margin allocated for each month of planned duration from observatory delivery to launch site to launch (see Figure 3)

None None

R012

Budget Margin (through encumbrances & liens)

N/A N/A N/A ≥ 10% on cost-to-go through Phase D (see Figure 6)

15% budget margin for Phases

E & F (see Figure 6)

10% budget margin for Phases

E & F (see Figure 6)

10% budget margin for Phases

E & F (see Figure 6)

At KDP-B

At KDP-C

At KDP-D

At Delivery to Launch Site and Thereafter

≥ 25% on cost-to-go through Phase D (required) ≥ 30% on cost-to-go through Phase D (goal)

(see Figure 6)

≥ 25% on cost-to-go through Phase D (see Figure 6)

At Key Decision

Point (KDP) A

≥ 25% on cost-to-go through Phase D (required) ≥ 30% on cost-to-go through Phase D (goal)

(see Figure 6)

15% budget margin for Phases

E & F (see Figure 6)

15% budget margin for Phases

E & F (see Figure 6)

DIRECTIVE NO. GPR 7120.7B Page 7 of 27

Table 2. Funded Schedule Margin and Budget Margin Requirements for Standalone Instrument/Payload Flight Projects

Require -ment

Margin Type Phase A Phase B Phase C Phase D Phases E & F

R017 R018

Funded Schedule Margin (along the critical path) None None

Interval 1: 1 5 months funded schedule margin allocated for each 12 months of planned duration between KDP-C approval and start of instrument/payload I&T (see Figure 4)

Interval 2: 2.0 months funded schedule margin allocated for each 12 months of planned duration between start of instrument/payload I&T and instrument/payload delivery (see Figure 4)

None

R019

Budget Margin (through encumbrances & liens)

15% budget margin for Phases E & F (see Figure 7)

R017 R018

Funded Schedule Margin (along the critical path) N/A None

Interval 1: 1 5 months funded schedule margin allocated for each 12 months of planned duration between KDP-C approval and start of instrument/payload I&T (see Figure 4)

Interval 2: 2.0 months funded schedule margin allocated for each 12 months of planned duration between start of instrument/payload I&T and instrument/payload delivery (see Figure 4)

None

R019

Budget Margin (through encumbrances & liens)

N/A 15% budget margin for Phases E & F (see Figure 7)

R017 R018

Funded Schedule Margin (along the critical path) N/A N/A

Interval 1: 1 5 months funded schedule margin allocated for each 12 months of planned duration between KDP-C approval and start of instrument/ payload I&T (see Figure 4)

Interval 2: 2.0 months funded schedule margin allocated for each 12 months of planned duration between start of instrument/ payload I&T and instrument/payload delivery (see Figure 4)

None

R020

Budget Margin (through encumbrances & liens)

N/A N/A 15% budget margin for Phases E & F (see Figure 7)

R018 Funded Schedule Margin (along the critical path) N/A N/A N/A

Interval 2: 2.0 months funded schedule margin allocated for each 12 months of planned duration between start of instrument/ payload I&T and instrument/payload delivery (see Figure 4)

None

R021

Budget Margin (through encumbrances & liens)

N/A N/A N/A ≥ 20% on cost-to-go through Phase D (see Figure 7)

10% budget margin for Phases E & F (see Figure 7)

N/A Funded Schedule Margin (along the critical path) N/A N/A N/A None None

R022

Budget Margin (through encumbrances & liens)

N/A N/A N/A ≥ 10% on cost-to-go through Phase D (see Figure 7)

10% budget margin for Phases E & F (see Figure 7)

At KDP-A

≥ 25% on cost-to-go through Phase D (required) ≥ 30% on cost-to-go through Phase D (goal)

(see Figure 7)

≥ 25% on cost-to-go through Phase D (required) ≥ 30% on cost-to-go through Phase D (goal)

(see Figure 7)

At Instrument/ Payload

Delivery and Thereafter

At KDP-D

At KDP-B

At KDP-C

≥ 25% on cost-to-go through Phase D (see Figure 7)

DIRECTIVE NO. GPR 7120.7B Page 8 of 27

Table 3. Funded Schedule Margin and Budget Margin Requirements for Enterprise Ground System Projects

Require -ment

Margin Type Phase A Phase B Phase C Phase D Phase E Phase F

R006 Funded Schedule Margin (along the critical path) None None None None

R023

Budget Margin (through encumbrances & liens)

R006 Funded Schedule Margin (along the critical path) N/A None None None

R023

Budget Margin (through encumbrances & liens)

N/A

R006 Funded Schedule Margin (along the critical path) N/A N/A None None

R024

Budget Margin (through encumbrances & liens)

N/A N/A

15% budget margin for Phases

E & F (or equivalent if no

E&F)

At KDP-B OR Ground System

System Design Review (SDR) if no KDP-B

At KDP-C OR Ground

System PDR if no KDP-C

≥ 25% on cost-to-go through Phase D (or mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone if no Phase D) (required)

≥ 30% on cost-to-go through Phase D (or mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone if no Phase D) (goal) (see Figure 8)

≥ 25% on cost-to-go through Phase D (or mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone if no Phase D) (see Figure 8)

If KDP-B: 2.0 months of funded schedule margin allocated for each 12 months of planned duration between KDP-C approval and mission-level ORR, ground system freeze, or other appropriate milestone

If no KDP-B: 2.0 months of funded schedule margin allocated for each 12 months of planned duration between ground system PDR and mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone (see Figure 5)

If KDP-C: 2.0 months of funded schedule margin allocatged for each 12 months of planned duration between KDP-C approval and mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone

If no KDP-C: 2.0 months of funded schedule margin allocated for each 12 months of planned duration between ground system PDR and mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone (see Figure 5)

At KDP-A OR Ground System System

Requirements Review (SRR) if no KDP-A

If KDP-A: 2.0 months of funded schedule margin allocated for each 12 months of planned duration between KDP-C approval and mission-level Operational Readiness Review (ORR), ground system freeze, final acceptance, or other appropriate milestone

If no KDP-A: 2.0 months of funded schedule allocated for each 12 months of planned duration between ground system PDR and mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone (see Figure 5)

15% budget margin for Phases

E & F (or equivalent if no

E&F) (see Figure 8)

≥ 25% on cost-to-go through Phase D (or mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone if no Phase D) (required) ≥ 30% on cost-to-go through Phase D (or mission-level ORR, ground system freeze, final acceptance, or other appropriate milestone if no Phase D) (goal) (see Figure 8)

15% budget margin for Phases

E & F (or equivalent if no

E&F) (see Figure 8)

DIRECTIVE NO. GPR 7120.7B Page 9 of 27

2.0 FUNDED SCHEDULE MARGIN

When planning and tracking funded schedule margin for mission flight, subordinate instrument/payload flight, and enterprise ground system projects, the following considerations apply:

a. Funded schedule margin is the priced time allowance necessary to protect the project schedule against uncertainty and risk.

b. Funded schedule margin requirements in this GPR represent minimum levels relative to the project critical path and actual amounts may be higher based on an assessment of uncertainty and risk.

c. Funded schedule margin consists of both working days of duration and the funds associated with that duration.

d. The required amount of funded schedule margin funds will be calculated using a burn rate sufficient to cover schedule delays for the phase of the project (e.g., average burn rate for the critical path(s) over the appropriate period).

e. Funded schedule margin is not included in project-held UFE.

f. Contractor-held funded schedule margin that is not directly controlled by the NASA project manager is excluded from the project-held funded schedule margin planned and tracked for this GPR.

g. The required amount of funded schedule margin duration will be calculated in working days based on a 5-day work week, which equates to approximately 21 working days in a calendar month. (See Appendix A definition.)

Funded schedule margin requirements unique to mission flight projects, standalone instrument/payload flight projects, and enterprise ground system projects are described in the sections that follow.

2.1 Funded Schedule Margin for Mission Flight Projects

In the planning stages of a mission flight project, including re-plans and re-baselines of applicable mission flight projects, the following minimum amounts of funded schedule margin along the critical path shall be baselined (see Figure 3):

a. Interval 1: From KDP-C approval (i.e., confirmation) to the start of observatory I&T (see Appendix

A definition for start of observatory I&T), 1.5 months of funded schedule margin allocated for every 12 months of Interval 1 planned duration. [R003]

b. Interval 2: From the start of observatory I&T to delivery of the observatory to the launch site (or to planned storage), 2 months of funded schedule margin allocated for every 12 months of Interval 2 planned duration. [R004]

c. Interval 3: From observatory delivery to the launch site to launch, 1 week of funded schedule margin allocated for every month of Interval 3 planned duration. [R005]

DIRECTIVE NO. GPR 7120.7B Page 10 of 27

Figure 3. Mission Flight Project Funded Schedule Margin

For subordinate in-house instrument/payload projects delivering to GSFC’s mission flight projects, the mission flight project management team will work with the subordinate in-house instrument/payload project management team to determine which organization will be responsible for planning, controlling and reporting subordinate instrument/payload funded schedule margin in accordance with the mission flight project’s requirements. This funded schedule margin management approach will be documented in the mission flight project’s project plan and the subordinate instrument/payload flight project’s instrument project implementation plan. Subordinate in-house instrument/payload project management team(s) should control some portion of funded schedule margin.

2.2 Funded Schedule Margin for Standalone Instrument/Payload Flight Projects

The following minimum funded schedule margin amounts along the critical path shall be baselined in the planning stages of a standalone instrument/payload flight project, including re-plans and re-baselines of applicable standalone instrument/payload flight projects, (see Figure 4):

a. Interval 1: From KDP-C approval to the start of instrument/payload I&T, 1.5 months of funded schedule margin allocated for every 12 months of Interval 1 planned duration. (The start of instrument/payload I&T varies depending on the nature of the project. Therefore, during the planning phase, projects will define an appropriate milestone or event that constitutes the start of instrument/payload level I&T.) [R017]

b. Interval 2: From the start of instrument/payload I&T to instrument/payload delivery, 2 months of funded schedule margin allocated for every 12 months of Interval 2 planned duration, where instrument/payload delivery may include physical arrival at the launch site or other facility. [R018]

DIRECTIVE NO. GPR 7120.7B Page 11 of 27

Figure 4. Standalone Instrument/Payload Flight Project Funded Schedule Margin

2.3 Funded Schedule Margin for Enterprise Ground System Projects

An enterprise ground system project is a large-scale ground system developed to support a specific program’s requirements. It is independently managed and reports directly to that program. (Subordinate ground systems embedded within a mission are not considered enterprise ground systems.) Since enterprise ground systems’ requirements may vary, their project leadership teams will consult with FPD management on specific funded schedule margin allocations. In general, during the planning stages of an enterprise ground system project, including re-plans and re-baselines of applicable enterprise ground system projects, the following minimum amounts of funded schedule margin along the critical path shall be baselined (see Figure 5):

a. From KDP-C approval (or ground system PDR if there is no enterprise ground system project KDP-

C) to mission level ORR, ground system freeze, final acceptance, or other appropriate milestone, 2.0 months of funded schedule margin allocated for every 12 months of planned duration. [R006]

DIRECTIVE NO. GPR 7120.7B Page 12 of 27

Figure 5. Enterprise Ground System Project Funded Schedule Margin

2.4 Funded Schedule Margin for Other Project Types

This GPR will not apply to some projects and activities (see section P.2), yet these projects should develop an approach to handling the planning and tracking of funded schedule margin. Generally, project managers should derive the required amount of funded schedule margin based on an assessment of the development risk and through consultation with appropriate directorate and center management.

3.0 BUDGET MARGIN

When planning and tracking budget margin for mission flight projects, standalone instrument/payload projects, and enterprise ground system projects, the following considerations apply:

a. Budget margin is the percentage derived from dividing the available project-held UFE by the remaining cost-to-go. (Refer to Figure 2 for the specific elements of this ratio.)

b. The UFE associated with budget margin is the funding allowance necessary to protect the project budget against uncertainty and risk.

c. The budget margin requirements in this GPR represent minimum percentage levels and actual amounts may be higher based on an assessment of uncertainty and risk.

d. Budget margin will not be required for education and public outreach or program-managed launch services.

e. Project-held UFE does not include program-held or NASA Headquarters-held UFE.

f. Projects in Phases E and F do not require budget margin for activities such as grants, guest or guaranteed observer programs, or administrative support.

DIRECTIVE NO. GPR 7120.7B Page 13 of 27

g. The budget margin percentage level will be maintained from a KDP approval until it “steps down” at the next KDP approval, as illustrated in Figures 6, 7, and 8.

h. Funds for funded schedule margin are not included as part of the project-held UFE.

i. Funds for funded schedule margin will be traceable to funded schedule margin days and identified as a separate budget item within the cost-to-go.

j. Project-held UFE does not include contractor-held budget margin no matter how that margin is defined (e.g., cost reserve, management reserve, financial contingency, etc.).

Budget margin requirements unique to mission flight projects, standalone instrument/payload flight projects, and enterprise ground system projects are described in the sections that follow.

3.1 Budget Margin for Mission Flight Projects

During the life cycle of a mission flight project, including re-plans and rebaselines, the following minimum budget margins, through encumbrances and liens, shall be baselined (see Figure 6):

a. At KDP-A and KDP-B, mission flight projects shall have a minimum budget margin level of 25% with a goal of 30% on remaining cost-to-go through Phase D, and 15% for Phases E and F. [R009]

b. At KDP-C, mission flight projects shall have a budget margin level of 25% or higher on remaining cost-to-go through Phase D, and 15% for Phases E and F. [R010]

c. At KDP-D, mission flight projects shall have a budget margin level of 20% or higher on remaining cost-to-go through Phase D, and 10% for Phases E and F. [R011]

d. At the time of delivery to the launch site and thereafter, mission flight projects shall have a budget margin level of 10% or higher on remaining cost-to-go through Phase D, and 10% for Phases E and F. [R012]

DIRECTIVE NO. GPR 7120.7B Page 14 of 27

Figure 6. Mission Flight Project Budget Margin

For subordinate in-house instrument/payload projects delivering to GSFC mission flight projects, the mission project management team will work with the subordinate in-house instrument/payload project management team to determine which organization will be responsible for planning, controlling, and reporting the subordinate instrument/payload project’s budget margin. A UFE management approach will be documented in the mission flight project’s project plan and the subordinate in-house instrument/payload project’s instrument project implementation plan. Subordinate in-house instrument/payload project management team(s) should control some portion of project-held UFE.

DIRECTIVE NO. GPR 7120.7B Page 15 of 27

3.2 Budget Margin for Standalone Instrument/Payload Flight Projects

During the life cycle of a standalone instrument/payload flight project, including re-plans and re-baselines, the following minimum budget margins shall be baselined (see Figure 7):

a. At KDP-A and KDP-B, standalone instrument/payload flight projects shall have a minimum budget margin level of 25% with a goal of 30% on remaining cost-to-go through Phase D, and 15% for Phases E and F. [R019]

b. At KDP-C, standalone instrument/payload flight projects shall have a budget margin level of 25% or higher on remaining cost-to-go through Phase D, and 15% for Phases E and F. [R020]

c. At KDP-D, standalone instrument/payload flight projects shall have a budget margin level of 20% or higher on remaining cost-to-go through Phase D, and 10% for Phases E and F. [R021]

d. At the time of instrument/payload delivery and thereafter, standalone instrument/payload flight projects shall have a budget margin level of 10% or higher on remaining cost-to-go through Phase D, and 10% for Phases E and F. [R022]

Figure 7. Standalone Instrument/Payload Flight Project Budget Margin

DIRECTIVE NO. GPR 7120.7B Page 16 of 27

3.3 Budget Margin for Enterprise Ground System Projects

During the life cycle of an enterprise ground system project, including re-plans and re-baselines, the following minimum budget margin shall be baselined (see Figure 8):

a. At KDP-A and KDP-B (or ground system SRR/SDR if there is no enterprise ground system project

KDP-A/KDP-B), enterprise ground system projects shall have a minimum budget margin level of 25% with a goal of 30% on remaining cost-to-go through Phase D (or ground system ORR, ground system freeze, or other appropriate milestone if no Phase D), and 15% for Phases E and F (or equivalent if no E&F). [R023]

b. At KDP-C (or enterprise ground system PDR if there is no enterprise ground system project KDP- C), enterprise ground system projects shall have a budget margin level of 25% or higher on remaining cost-to-go through Phase D (or ground system ORR, ground system freeze, or other appropriate milestone if no Phase D) and 15% for Phases E and F (or equivalent if no E&F).

[R024]

Figure 8. Enterprise Ground System Budget Margin

DIRECTIVE NO. GPR 7120.7B Page 17 of 27

3.4 Budget Margin for Other Project Types

This GPR will not apply to some projects and activities (see section P.2) yet these projects should develop an approach to handling the planning and tracking of budget margin. Generally, project managers should derive the required amount of budget margin based on an assessment of the development risk and through consultation with appropriate directorate and center management.

4.0 MONTHLY REPORTING

a. At the FPD’s monthly project tag-ups and the Center’s MSRs, projects will present their funded schedule margin and budget margin status in accordance with the current MSR reporting guidance.

b. The CMC will provide direction to projects that deviate from these requirements.

DIRECTIVE NO. GPR 7120.7B Page 18 of 27

Appendix A – Definitions

This appendix provides definitions for the terms used in this GPR.

A.1 Budget Margin: The percentage calculated by dividing the remaining unencumbered, unliened project-held UFE by the remaining cost-to-go for a designated project phase minus the UFE. Similar to funded schedule margin, UFE is included in project budgets to protect them from uncertainty and risk.

A.2 Remaining Cost-to-Go: Total estimated cost of all work remaining (to-go) for a project to complete the relevant phases (A-D or E-F), not including program-managed launch services or education and public outreach. Cost-to-go includes all encumbrances, liens, and funded schedule margin.

A.3 Funded Schedule Margin: The project-held priced time allowance in working days of duration allocated to project schedules to protect them from uncertainty and risk, while increasing the probability of finishing on time. Funded schedule margin is expressed in both working days and dollars, but does not constitute specific project work scope. (NOTE: The figure of approximately 21 working days per month is calculated from the total days in one calendar year, minus weekend days, minus the 10 government holidays and divided by the 12 calendar months. Using this as a basis, 1.5 months of funded schedule margin/year = 31.5 working days; 2.0 months = 42 working days; 1 week = 5.25 working days.)

A.4 Subordinate Instrument/Payload Project: An instrument or payload that is managed by a GSFC project office and delivered to its parent GSFC mission flight project.

A.5 Management Reserve: In EVM, the amount of a project’s budget, or a contract’s total allocated budget, withheld for management control purposes rather than designated for the accomplishment of a specific task or a set of tasks. Contractor management reserve is not part of the project’s budget margin.

A.6 Single Project Program: Programs that implement their program objectives and requirements through one of two management approaches: 1) separate program and project structures or 2) a combined structure. These programs tend to have long development and/or operational lifetimes, represent a large investment of Agency resources, and have contributions from multiple organizations/agencies. These programs frequently combine program and project management approaches, which they document through tailoring (see

NPR 7120.5E).

A.7 Slack: The amount of duration a task in a network schedule can be delayed without causing a delay to subsequent tasks (“free slack”) or the project completion date (“total slack”). Slack is not the same as funded schedule margin.

A.8 Unallocated Future Expenses: The portion of estimated cost required to meet a specified confidence level that cannot yet be allocated to the specific project work breakdown structure sub-elements because the estimate includes probabilistic risks and specific needs that are not

DIRECTIVE NO. GPR 7120.7B Page 19 of 27 known until these risks are realized. A portion of UFE is held by the project, and another portion of UFE is held by the program office or NASA headquarters mission directorate.

A.9 Critical Path: The sequence of tasks through the integrated master schedule with the least amount of total slack.

A.10 Standalone Instrument/Payload Flight Project: An instrument/payload project that reports directly to a NASA program or a non-GSFC project and is formulated and implemented in accordance with the NASA Project Life Cycle as identified in NPR 7120.5.

A.11 Enterprise Ground System Project: An independent project responsible for the development of a large-scale ground system in support of a specific program’s ground system requirements. Unlike a mission ground system within a flight project that supports a specific flight project’s requirements, the enterprise ground system project reports directly to its parent program.

A.12 Start of Observatory I&T: The start of observatory I&T (the beginning of Interval 2 in this GPR) will vary depending on the nature of the project. It may be defined as: the start of physical integration of the first instrument/payload to the spacecraft bus; the successful completion of the System Integration Review (SIR); the KDP-D approval; the start of pre-instrument integration, inspection, and cleaning of the spacecraft bus; or other suitable event.

However defined, the start of observatory I&T should be documented in the project plan and schedule management plan.

DIRECTIVE NO. GPR 7120.7B Page 20 of 27

Appendix B – Acronyms

CMC Center Management Council EVM Earned Value Management EVMS Earned Value Management System FPD Flight Projects Directorate GPR Goddard Procedural Requirements GSFC Goddard Space Flight Center I&T Integration and Test KDP Key Decision Point MSR Monthly Status Review NASA National Aeronautics and Space Administration NPR NASA Procedural Requirement NRRS NASA Records Retention Schedule ORR Operational Readiness Review PDR Preliminary Design Review SDR System Design Review SMA Safety and Mission Assurance SRR System Requirements Review TBD To Be Determined UFE Unallocated Future Expenses

DIRECTIVE NO. GPR 7120.7B Page 21 of 27

Appendix C – Requirements in Table Format

Req’t.

ID

Requirement

Section Found

7120.7- R001

If it is viewed that the project will remain below the requirements into its next phase, a waiver shall be submitted for CMC concurrence in accordance with GPR 1400.1, Waiver Processing. This applies from formulation through operations. (CANCELLED)

N/A

7120.7- R002

Schedule margin funding shall be calculated according to the highest burn rate appropriate for the phase of the project. (WITHDRAWN, though described in item 2.0f.)

N/A

Funded Schedule Margin for Mission Flight Projects 2.1 7120.7- R003

Interval 1: From KDP-C approval (i.e., confirmation) to the start of observatory I&T, 1.5 months of funded schedule margin inserted for every 12 months of Interval 1 planned duration. (REVISED)

2.1a

7120.7- R004

Interval 2: From the start of observatory I&T to delivery of the observatory to the launch site (or to planned storage), 2 months of funded schedule margin inserted for every 12 months of Interval 2 planned duration. (REVISED)

2.1b

7120.7- R005

Interval 3: From observatory delivery to the launch site to launch, 1 week of funded schedule margin inserted for every month of Interval 3 planned duration. (REVISED)

2.1c

Funded Schedule Margin for Standalone Instrument/Payload Flight Projects 2.2 7120.7- R017

Interval 1: From KDP-C approval to the start of instrument/payload I&T, 1.5 months of funded schedule margin inserted for every 12 months of Interval 1 planned duration. (The start of instrument/payload I&T varies depending on the nature of the project.

Therefore, during the planning phase, projects will define an appropriate milestone or event that constitutes the start of instrument/payload level I&T.) (NEW)

2.2a

7120.7- R018

Interval 2: From the start of instrument/payload I&T to instrument/payload delivery, 2 months of funded schedule margin inserted for every 12 months of Interval 2 planned duration, where instrument/payload delivery may include physical arrival at the launch site or other facility. (NEW)

2.2b

Funded Schedule Margin for Enterprise Ground System Projects 7120.7- R006

From KDP-C approval (or ground system PDR if there is no enterprise ground system project KDP-C) to ground system ORR, ground system freeze, or other appropriate milestone, 2.0 months of funded schedule margin inserted for every 12 months of planned duration. (REVISED)

2.3a

7120.7- R007

From start of I&T to operational readiness review (ORR): 2 months of funded schedule margin per year. (WITHDRAWN)

N/A

DIRECTIVE NO. GPR 7120.7B Page 22 of 27

Found

7120.7- R008

From ORR to authorization to operate or ground system freeze: 1 week of funded schedule margin per month. (WITHDRAWN)

N/A

Budget Margin for Mission Flight Projects 3.1 7120.7- R009

At KDP-A and KDP-B, mission flight projects shall have a minimum budget margin level of 25% with a goal of 30% on cost-to-go through Phase D, and a minimum budget margin level of 15% for Phases E and F. (REVISED)

3.1a

7120.7- R010

At KDP-C, mission flight projects shall have a budget margin level of 25% or higher on cost-to-go through Phase D and 15% for Phases E and F.

3.1b

7120.7- R011

At KDP-D, mission flight projects shall have a budget margin level of 20% or higher on cost-to-go through Phase D and 10% for Phases E and F.

3.1c

7120.7- R012

At the time of delivery to the launch site, mission flight projects shall have a budget margin level of 10% or higher on remaining cost-to-go through Phase D, and 10% for Phases E and F. (REVISED)

31.c

Budget Margin for Standalone Instrument/Payload Flight Projects 3.2 7120.7- R019

At KDP-A and KDP-B, standalone instrument/payload flight projects shall have a minimum budget margin level of 25% with a goal of 30% on remaining cost-to-go through Phase D, and 15% for Phases E and F. (NEW)

3.2a

7120.7- R020

At KDP-C, standalone instrument/payload flight projects shall have a budget margin level of 25% or higher on remaining cost-to-go through Phase D, and 15% for Phases E and F. (NEW)

3.2b

7120.7- R021

At KDP-D, standalone instrument/payload flight projects shall have a budget margin level of 20% or higher on remaining cost-to-go through Phase D, and 10% for Phases E and F. (NEW)

3.2c

7120.7- R022

At the time of instrument/payload delivery, standalone instrument/payload flight projects shall have a budget margin level of 10% or higher on remaining cost-to-go through Phase D, and 10% for Phases E and F. (NEW)

3.2d

Budget Margin for Enterprise Ground System Projects 3.3 7120.7- R023

At KDP-A and KDP-B (or ground system SRR/SDR if there is no enterprise ground system project KDP-A/KDP-B), enterprise ground system projects shall have a minimum budget margin level of 25% with a goal of 30% on remaining cost-to-go through Phase D (or ground system ORR, ground system freeze, or other appropriatemilestone if no Phase D), and 15% for Phases E and F (or equivalent if no E & F). (NEW)

3.3a

7120.7- R024

At KDP-C (or ground system PDR if there is no enterprise ground system project KDP-C), enterprise ground system projects shall have

3.3b

DIRECTIVE NO. GPR 7120.7B Page 23 of 27

Found a budget margin level of 25% or higher on remaining cost-to-go through Phase D (or ground system ORR, ground system freeze, or other appropriate milestone if not Phase D) and 15% for Phases E and F (or equivalent if no E & F). (NEW)

Monthly Reporting 7120.7- R013

At the Center’s monthly project tag-ups, projects shall present their schedule margin status relative to the required margins.

(CANCELLED)

N/A

7120.7- R014

If the schedule margin falls below the agreed-to levels, the presentations shall include the reasons for the shortfall as well as a description of any activities initiated to mitigate the trend.

(CANCELLED)

N/A

7120.7- R015

At the Center’s monthly project tag-ups, project managers shall present their budget margin status relative to the required levels, (CANCELLED)

N/A

7120.7- R016

If the budget margin falls below the required levels, the presentations shall include the reasons for the shortfall as well as a description of any activities initiated to mitigate the trend. (CANCELLED)

N/A

DIRECTIVE NO. GPR 7120.7B Page 24 of 27

Appendix D – GPR Applicability Table

Project 7120.7 7120.7A 7120.7B Notes

ATLAS X

ICESat-2 X

ICON X

JWST X

LCRD (mission) X .7 requirements apply per Code 100 direction

MOMA-MS X

Restore-L X .7 requirements apply per Code 100 direction

SOC X

TESS X

XARM X

Europa Clipper X

GEDI X

GOLD X

JPSS-2 X

GOES-S X

GOES-R Management Control Plan budget margin requirements apply

LandSat 9 X

XARM X

HST Ops X Only applies to future major system upgrades JPSS Ground X Only applies to future major system upgrades

JPSS-3 X

JPSS-4 X

GOES-R Ground X Only applies to future major system upgrades

GOES-T X

GOES-R Management Control Plan budget margin requirements apply

GOES-U X

GOES-R Management Control Plan budget margin requirements apply

Lucy X NEN X Only applies to future major system upgrades

PACE X

Space Network X Only applies to future major system upgrades

TSIS-2 X

WFIRST X

Future Missions

X

For missions that submit their proposals in response to Announcements of Opportunity prior to the date of release of GPR 7120.7B, the 7120.7A requirements will apply unless otherwise directed by the CMC.

DIRECTIVE NO. GPR 7120.7B Page 25 of 27

Future Standalone Instrument/Payload Projects

Future Enterprise Ground System Projects

ESDIS N/A May apply to future major system upgrades ESMO N/A May apply to future major system upgrades

HIRMES N/A

IXPE N/A Follows Marshall Procedural Requirement 7120.1H LCRD (payload) N/A Follow LCRD project requirements L-Ralph N/A Follow Lucy project requirements LEMNOS N/A Compliance with GPR 7120.7 is optional NIMO N/A Not applicable at this time OCI N/A Follow PACE project requirements POES/MetOp N/A Not applicable at this time PSP N/A Follow APL schedule and budget margin guidelines Resolve N/A Follow XARM project requirements

SAR N/A

SGSS N/A

SSMO N/A Not applicable at this time TDRS N/A Not applicable at this time TIRS-2 N/A Follow Landsat 9 project requirements

DIRECTIVE NO. GPR 7120.7B Page 26 of 27

CHANGE HISTORY LOG

Revision Effective Date Description of Changes

Baseline May 4, 2008 Initial Release. This directive replaces GID 7120.1.

Administrative Extension

May 4, 2014 Administratively extended.

Administrative Extension

July 24, 2014 Administratively extended for 1 year.

Administrative Extension

June 16, 2015 Administratively extended for 1 year.

A February 28, 2017 Updated to current GPR template.

Changed title from “Schedule Margins and Budget Reserves to be Used in Planning Flight Projects and Tracking Their Performance” to “Funded Schedule Margins and Budget Margins for Flight Projects.”

Numbered and indexed requirements (“shall”) statements (Appendix C).

P.1 and P.2: Clarified.

P.8: Added records retention requirements.

1: Rewrote and added new sections on requirements identification, relationship to earned value management, and waivers (rewritten and moved from Section 2).

2: Changed heading to “Funded Schedule Margins.” Added header for “Funded Schedule Margins for Observatory Flight Projects,” “Funded Schedule Margins for Instrument/Payload Flight Projects,” and “Funded Schedule Margins for Enterprise Ground System Projects.” Lettered considerations.

2.1: Updated wording of requirements. Rewrote and moved last paragraphs to Section 4 (new).

2.1a: Changed schedule margins for confirmation to the beginning of observatory I&T.

3: Changed “Budget Reserves” to “Budget Margins.”

3a: Changed KDP-B requirement from “should” to “shall” and changed margins.

Added reserve requirement for KDP-D.

3c: Added new requirement for KDP-D.

4: Added new section for monthly reporting.

Appendix A: Added definitions.

Appendix B: Added acronyms

B September 17, Requirements Cancelled or Withdrawn: R001, R002, R007, R008, R0013, R014, R015 and R016

Requirements Revised: R003, R004, R005, R006, R009 and R012

Requirements Added: R017, R018, R019, R020, R021, R022, R023 and R024

DIRECTIVE NO. GPR 7120.7B Page 27 of 27

Title: Changed title from “Schedule and Budget Margins for Flight Projects” to “Funded Schedule Margin and Budget Margin for Flight Projects”

P.1: Clarified that the focus of budget and schedule margin requirements is on projects that report to programs.

P.2: Added Figure 1 illustrating program and project applicability relationships, and referenced new “GPR Applicability Table” found in Appendix D.

P.4: Deleted GPR 1400.1, “Waiver Processing”

1.2: Added definitions for “Funded Schedule Margin” and “Budget Margin;”

included new Figure 2 to illustrate budget margin formula

1.3: Added Tables 1, 2 & 3 to summarize funded schedule margin and budget margin requirements for mission projects, instrument/payload projects, and enterprise ground system projects.

1.5: Added new section to address that project noncompliance with GPR requirements will be addressed by the CMC.

2.0 and 2.1 – 2.3: Clarified the requirements for funded schedule margin by mission flight project, standalone instrument/payload flight project, and enterprise ground system project categories; provided additional guidance and supporting illustrations.

2.4: Added section for “Funded Schedule Margin for Other Project Types.”

3.0 and 3.1 – 3.3: Clarified the requirements for budget margin by mission flight project, standalone instrument/payload flight project, and enterprise ground system project categories; provided additional guidance and supporting illustrations.

3.4: Added section for “Budget Margin for Other Project Types.”

4.0: Eliminated R015 and R016 requirements for reporting margins at Tag-Ups and MSRs and referenced current MSR reporting guidance instead.

Appendix A: Added and clarified definitions.

Appendix B: Added new acronyms and deleted those no longer referenced.

Appendix D: Added appendix for GPR Applicability for current and future projects.

B August 9, 2023 Administratively extended for 1 year.