It has been said that Earned Value Management (EVM) came about because the Federal Government often used “Cost-plus” contractors with project organizations. Cost-plus
contracting allows the contractor to recover full project development costs plus accumulate profit from these contracts. Why would requiring contractor firms to employ
earned value management help the government hold the line against project cost overruns?
What do the Schedule Performance Index and the Cost Performance Index demonstrate? How can a project manager use this information to estimate future project
performance?’