B08_140G0125R0006_Attachment_A_Land_Satellite_Data_System_(LSDS)_Financial_Reporting_Requirements_V4.docx

Department of the Interior U.S. Geological Survey

Land Satellites Data System (LSDS) Financial and Performance Reporting Requirements Document

Version 4.0

April 14, 2020

LSDS-456

Version 4.0 i ii

Land Satellites Data System (LSDS) Financial and Performance Reporting Requirements Document April 14, 2020

Document Owner:

Approved By:

EROS

Sioux Falls, South Dakota

Executive Summary The U.S. Geological Survey (USGS) and the National Aeronautics and Space Administration (NASA) partnered together to meet legal obligations to ensure Landsat data continuity. The Land Satellites Data System (LSDS) Program was developed to ensure continued capture, archival, processing, and distribution of consistently calibrated imagery of the Earth's land surface and its availability to users worldwide for use in monitoring global change, emergency response, water monitoring, and applications in scientific studies. The LSDS Program is operated and managed at the Earth Resources Observation and Science (EROS) Center in Sioux Falls, SD. On occasion, the LSDS Program funds external organizations, such as government agencies or commercial contractors (herein referred to as Suppliers) to conduct parts of the Program mission.

This document defines the data types, formats, and interface protocols in the form of tiered requirement sets. Suppliers use these tiered requirement sets to report critical financial and performance information to the LSDS Program.

With respect to the LSDS document structure, the parent to this document is LSDS-445 Land Satellites Data System (LSDS) Program Management Plan (PgMP).

This document is under LSDS Configuration Control Board (CCB) control. Please submit changes to this document, as well as supportive material justifying the proposed changes, via a Change Request (CR) to the Process and Change Management Tool.

Document History Document Number Document Version Publication Date Change Number

Contents

List of Tables

Table A1. Requirements 14

Introduction Background The Land Satellites Data System (LSDS) Program manages a portfolio of Projects as defined in LSDS-442 Land Satellites Data System (LSDS) Program Charter (PgC). Under the guidance of the LSDS Program, the Projects may engage government agencies or commercial contractors (herein referred to as Suppliers) to provide goods or services to support the LSDS mission under interagency agreements or negotiated contracts as defined in LSDS-499 Land Satellites Data System (LSDS) Procurement Management Plan. LSDS passes down to Suppliers an appropriate set of requirements to provide financial and performance information up to the LSDS Program at a level consistent with the Supplier’s contract type, value, and mission criticality.

Purpose This document provides detailed financial and performance reporting requirements that apply to Suppliers providing goods and services to the LSDS Program by interagency agreement or negotiated contract (herein referred to as Contract) defined in LSDS-499 Land Satellites Data System (LSDS) Procurement Management Plan. Suppliers are required to provide critical information in order to support LSDS financial and performance reporting.

Scope The Clinger-Cohen Act (CCA) of 1996 requires agencies to use a disciplined Capital Planning and Investment Control (CPIC) process to acquire, use, maintain, and dispose of Information Technology (IT). It also encourages the use of performance- and results-based management of these initiatives. The general Department of the Interior (DOI) Project management reporting guidance is based on conducting earned value analysis, which is included in section I.H. of Exhibit 300 to monitor the performance of major IT Projects, as defined in the Information Technology (IT) Capital Planning and Investment Control (CPIC) Guide (see References). In order for DOI to update CPIC business cases as accurately as possible, DOI requires the following:

· Formally adopt Earned Value Management (EVM) to measure the performance of major IT service contracts that support the major IT Projects, if directed by the Contract Officer.

· New service contracts awarded to support major IT systems that require EVM, must require Suppliers to use EVM to measure performance.

· Operations where Projects do not require EVM reporting.

LSDS administers processes to report critical financial and performance information internally to the LSDS Program, as well as to other organizations in its governing hierarchy. The information includes data and calculated metrics derived from Suppliers funded by the LSDS Program. The effort required to administer this information represents a significant cost component for the Projects and ultimately the LSDS Program. To maximize Return on Investment (ROI) for this administrative cost, the LSDS Program allocated reporting requirements to three tiers. The government considers Contract type, value, and other mission criticality factors when assigning a reporting requirement tier to a Supplier for any given Contract. The reporting scope defined in this document is subordinate to any specific reporting scope detailed in a given Supplier contract.

In general, Supplier requirements are specified in a Statement of Objective (SOO) or Statement of Work (SOW) referenced in a contract, task order, or interagency agreement. These requirements may or may not specify the tier required for reporting financial and performance information. If not specified, the Supplier assumes reporting requirements are those in Tier 3: Basic Reporting. Table 11 characterizes the tiers with respect to reporting requirements.

Full Reporting Tier 2:

Standard Reporting Tier 3:

Basic Reporting

Table 11. LSDS Requirements Tiers for Financial and Performance Reporting

All Tiers: Common Interface USGS Reporting The U.S. Geological Survey (USGS) is required to report monthly financial status on the IT portion of CPIC activities to the DOI and Office of Management and Budget (OMB). The USGS requirement includes earned value data that represent periodic measures of acquisition status and schedule / cost performance. The earned value data are required for all CPIC IT acquisitions as documented in Circular A-11 of the OMB. The DOI and USGS must comply with OMB and the Federal Acquisition Regulation (FAR) requirements related to the LSDS IT acquisition.

LSDS uses a Microsoft Excel spreadsheet to consolidate data from multiple Projects and Suppliers. LSDS normalizes financial and performance data to produce Program-wide performance metrics to meet USGS, DOI, and CPIC requirements.

Supplier Identification Data Prior to submission of the first monthly performance data and subsequently for approved updates, the Supplier provides summary information to the USGS Contracting Officer Representative (COR) and/or LSDS Program Controls as indicated in the Contract. The USGS COR and/or LSDS Program Controls use this information to identify data sources. Suppliers include, at a minimum, the following information:

· Organization name

· Name of contract

· Contract number

· Task order identifier, where appropriate

· Name of Project

· Financial Analyst contact information

· Target price

· Current reporting period

In addition, Suppliers may be supporting one or more LSDS Projects, each having several control accounts. Official control account reporting is performed at the Project Work Breakdown Structure (PWBS) control account; informational reporting may be requested at lower levels of the PWBS. See LSDS-460 Land Satellites Data System (LSDS) Scope Management Plan for Work Breakdown Structure (WBS) levels.

The identification and WBS mapping information must be consistent with that used in the Supplier invoices.

Supplier Data Exchange The Supplier provides an original estimate for Budget at Completion (BAC) as per “Target Price.” Depending upon the reporting tier, Suppliers may be required to provide an original time phased (monthly) budget, which when summed is equal to the original BAC. In the case (Tier 3) where an estimate of the monthly budget is not required, the government generates its own monthly budget from the BAC for reporting purposes.

For Tier 1 and Tier 2, Suppliers shall be required to provide monthly reports of actual costs, as well as forecasts of actual costs for upcoming months. Even though actual costs are officially recorded in the FBMS as a result of Supplier invoicing, this FBMS information is not available in a timely fashion to support monthly reporting at the LSDS Program and Project levels.

All Supplier financial data contains approved fees as stated in the Contract. Actual costs from monthly status reports must correspond to actual Supplier invoices for reconciliation with FBMS; any discrepancies must be noted and explained in the monthly status reports. Suppliers affirm that costs provided to LSDS and USGS adhere to the generally accepted accounting procedures and that the costs conform with their organization’s cost accounting standards board disclosure statement as required by OMB.

Reporting Period Appendix A describes the tier-level reporting requirements. Reporting requirements may be tailored for each Project and Supplier as indicated in contract terms and conditions; otherwise, Tier 3 Basic Reporting is assumed.

For Tier 1 and Tier 2, the USGS and Supplier agree on the Monthly Status Review (MSR) report format and data exchange files within 30 days of contract start. The Supplier and USGS COR jointly control the format of the MSR submission and data exchange files.

Supplier data are submitted to the USGS LSDS Point of Contact (POC). The Supplier provides a POC to answer specific questions about the submittal.

For Tier 1 and Tier 2, all financial data are shown by current Period of Performance (POP) and cumulative from the beginning of the contract mechanism (e.g., Task Order), unless otherwise noted.

Tier 1: Full Reporting Tier 1 Full Reporting Requirements Appendix A lists the data and metrics required by Suppliers to support Tier 1 reporting; Table 11 characterizes the tier with respect to reporting requirements. The Tier 1 Supplier provides EVM performance status data in dollars and hours.

At contract start, the Supplier provides a time phased budget, PV, which when summed is equal to the BAC. The Supplier controls and documents all changes to the BAC.

As work proceeds, the Supplier provides AC in invoices through FBMS and in monthly reports. AC in monthly reports must correspond to actual Supplier invoice amounts, and any discrepancies are noted and explained. The Supplier is also required to provide updated forecasts to complete.

Suppliers are required to provide monthly EV figures for official control account reporting. This reporting may be a summary level rollup of lower level discrete and LOE work packages. Suppliers may be requested to supply supplemental financial and performance reporting at lower levels of the Supplier’s WBS but is not required to explain variances at this lower level.

Financial data are shown by current fiscal period and cumulative from the beginning of the contract POP, unless otherwise noted.

The Supplier provides monthly and cumulative earned value data. This data includes PV, EV, AC, Estimate to Complete (ETC), Estimate at Complete (EAC), and BAC for the MSR. The Supplier provides the calculated EAC based on the EV data as per the formula list in Section 3.4.

LSDS Projects and Suppliers submit EVM data via the Integrated Program Management Report (IPMR) Formats 1, 4, and 5, which are recognized as the standard EVM reporting format by the government and industry as defined in DI-MGMT-81861A Data Item Description (DID) for Integrated Program Management Report (IPMR) (supersedes DI-MGMT-81466A). All IPMR formats shall be submitted electronically in a format that is acceptable for use in the LSDS Program management systems. All IPMR formats shall be in a readable digital format (e.g., Portable Document Format (PDF) files are not acceptable). Supplier IPMR formats may be substituted whenever they contain all of the required data elements at the specified reporting levels. The USGS COR makes the final decision of the acceptable format.

The Tier 1 Supplier provides standard IPMR formats at the PWBS Level 4 (Account) as identified in Table 31.

Table 31. Required Standard Supplier Performance Reports In addition to the IPMR formats, the Tier 1 Supplier provides time-phased graphical EV data for the MSR, such as those identified in Table 32.

Table 32. Other Supplier Performance Reports Data Submission The Supplier provides a fiscal period calendar noting the Supplier cost reporting period. This calendar is provided at the beginning of each new government fiscal year. Financial and performance data are due by close of business the fifteenth day following month end, if the fifteenth is on a weekend, the report is due the Friday before the fifteenth. Report files are emailed concurrently to the address of record as indicated in the Contract (USGS COR, LSDS Program Controls, and/or USGS LSDS CPIC Coordinator).

Variance Reporting Thresholds An IPMR Format 5 Variance Analysis Report (VAR) is made when one or more of the following exceed the reporting thresholds:

· Schedule variance (EV to PV)

· Cost variance (EV to actual)

· Variance at completion (BAC to EAC)

The WBS reporting levels that have schedule variances or cost variances exceeding the established thresholds are reported and indicate whether a variance is cost-related, schedule-related, or both. The VAR explains the cause of the variance by element of cost, labor, travel, or procurement (if applicable), and provides current period, cumulative, and at completion statistical data. The VAR provides a description of variance cause, its impact on the cost account and other elements of the program, and corrective action to take. Internal program variance analysis and corrective action are formally reviewed in monthly management meetings. Informal reviews of cost and schedule variance analysis data may occur monthly or as directed depending on the nature and severity of the variance.

The default thresholds for IPMR Format 5 variance (cost and/or schedule) reporting at LSDS WBS Level 4 (Account) for the MSR are:

· Plus or minus ten percent and plus or minus $10,000

· Color codes for Cost Performance Index (CPI) and Schedule Performance Index (SPI) values reported in the MSR use the following scale:

· Green indicates greater than or equal to 95 percent but less than or equal to 105 percent

· Yellow indicates less than 95 percent but greater than or equal to 90 percent, greater than 105 percent but less than or equal to 110 percent

· Red indicates less than 90 percent, greater than 110 percent

· For presentations, report the color in a new cell beside the value to improve visibility

Variance reporting thresholds can be negotiated between the Supplier and USGS Contract Officer.

Contract Forecasting (ETC and EAC) Unlike budget, which represents the cost performance target for a specific effort, EAC represents the funds or dollars required to accomplish the effort associated with the approved scope of work. The EAC is composed of the AC to date plus an estimate of the cost of the remaining work based on the performance to date and knowledgeable projections of the cost of work yet to be accomplished. The remaining work is known as the ETC.

For the duration of the Contract, the Supplier reports the EAC using three different forecast techniques and uses the following nomenclature for each EAC.

1. A manual bottom-up estimate:

2. A calculated estimate based on the cumulative CPI:

3. A calculated estimate based on the cumulative CPI and cumulative SPI:

Tier 2: Standard Reporting Tier 2 Standard Reporting Requirements Appendix A lists the data and metrics required by Suppliers to support Tier 2 reporting; Table 11 characterizes the tier with respect to reporting requirements. The Tier 2 Supplier provides, at a minimum, standard performance status data in dollars.

At contract start, the Supplier provides a time phased budget, PV, which when summed is equal to the BAC. The Supplier controls and documents all changes to the BAC.

As work proceeds, the Supplier provides AC in invoices through FBMS and in monthly reports. AC in monthly reports must correspond to actual Supplier invoice amounts, and any discrepancies noted and explained. The Tier 2 Supplier updates the forecast periodically to capture significant changes (e.g., procurements moving to the right of the schedule).

Supplier figures are rolled up from the work package level to a Project summary. Tier 2 Suppliers do not report EV; the government sets EV equal to PV for integration with other government reporting as necessary.

Financial data are shown by current fiscal period and cumulative from the beginning of Contract POP, unless otherwise noted.

The Supplier is required to provide the following EV cost data each month: PV, AC, ETC, EAC, and BAC. EV cost data must be reported at both a monthly and cumulative level. The specific formula for EAC is:

Data Submission The Supplier provides a fiscal calendar noting the Supplier cost reporting period. This calendar is provided at the beginning of each new government fiscal year. Financial and performance data are due by close of business the fifteenth day following month end; if the fifteenth is on a weekend, the report is due the Friday before the fifteenth. Report files should be sent to the LSDS POC.

Variance Reporting Thresholds A VAR is made when one or more of the following exceeds the reporting thresholds established by USGS:

· Cost variance (PV to AC)

· Variance at completion (BAC to EAC)

The WBS reporting levels that have cost variances exceeding the established thresholds are reported. The VAR explains the cause of the variance by element of cost, labor, travel, or procurement (if applicable), and provides current period, cumulative, and at completion statistical data. The VAR provides a description of variance cause, its impact on the cost account and other elements of the Program, and corrective action to take. Internal program variance analysis and corrective action are formally reviewed in monthly management meetings. Informal reviews of cost and schedule variance analysis data may occur monthly or as directed depending on the nature and severity of the variance.

The Supplier submits IPMR Format 5-like reports, such as variance reporting, at the contract MSR. The USGS COR makes the final decision of the acceptable format.

The default thresholds for IPMR Format 5-like variance reporting of cost variance (year-to-date actual divided by year-to-date budget) are:

· Plus or minus 10 percent and plus or minus $10,000

· Color codes for CPI values reported in the MSR use the following scale:

· Green indicates greater than or equal to 95 percent but less than or equal to 105 percent

· Yellow indicates less than 95 percent but greater than or equal to 90 percent, greater than 105 percent but less than or equal to 110 percent

· Red indicates less than 90 percent, greater than 110 percent

· For presentations, report the color in a new cell beside the value to improve visibility

Variance reporting thresholds can be negotiated between the Supplier and USGS COR.

The Tier 2 Supplier provides reports for the MSR such as those identified in Table 41.

Table 41. Tier 2 Standard Performance Reports

Tier 3: Basic Reporting Tier 3 Basic Reporting Requirements Appendix A lists the data and metrics required by Suppliers to support Tier 3 reporting; Table 11 characterizes the tier with respect to reporting requirements.

At contract start, the Supplier provides an original estimate for BAC. Unless otherwise provided, the government calculates a time phased budget, PV, which when summed is equal to the BAC.

As work proceeds, the Supplier provides AC in invoices through FBMS. It is desired that the Supplier provide AC with periodic status reports. In the case where AC is not provided in status reports, the government calculates AC from invoices after the fact.

Data Submission If the Supplier provided AC with periodic status reports, financial data provided by close of business the fifteenth day following month end is included in official government reporting for the month. Status report files are sent to the LSDS POC.

Appendix A Reporting Requirements Mapped to Tiers The terminology and processes used in this document are consistent with that of “A Guide to the Project Management Body of Knowledge (PMBOK®) – Sixth Edition”.

The following is a list of reporting requirements for Suppliers to meet when preparing monthly financial report submissions to USGS LSDS Projects.

R→ Required d→ Desired n/a→ Not Applicable

Requirement Statement

Table A1. Requirements

References Please see https://www.usgs.gov/land-resources/nli/landsat/glossary-and-acronyms for a list of acronyms.

ANSI/PMI 99-001-2008. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition.

DI-MGMT-81861A. Data Item Description (DID) Integrated Program Management Report (IPMR)

Information Technology (IT) Capital Planning and Investment Control (CPIC) Guide. December 2002. U.S. Department of the Interior, Office of Acquisition and Property Management. Accessed April 13, 2020.

https://www.doi.gov/pam/programs/acquisition/cpic.

USGS/EROS. LSDS-442. Land Satellites Data System (LSDS) Program Charter (PgC).

USGS/EROS. LSDS-445. Land Satellites Data System (LSDS) Program Management Plan (PgMP).

USGS/EROS. LSDS-460. Land Satellites Data System (LSDS) Scope Management Plan.

USGS/EROS. LSDS-471. Land Satellites Data System (LSDS) Cost / Financial Management Plan.

USGS/EROS. LSDS-499. Land Satellites Data System (LSDS) Procurement Management Plan.

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