In the complex world of defence projects, where precision and accountability reign supreme, Project Controls (PC) are the backbone of effective management. For Defence Equipment & Support (DE&S), implementing the right level of project oversight ensures that resources are optimized, risks are mitigated, and objectives are met efficiently. The DE&S Project Controls Industrial Tailoring Guide provides a framework with five distinct levels of PC, each tailored to a project’s specific complexity, risk, and value.
This scalable approach enables DE&S to strike the perfect balance between robust oversight and practical efficiency, benefiting both the organisation and its industry partners. Let’s explore the five levels of project controls and how they drive project success.
The Five Levels of Project Controls
Level 1: Full Earned Value Management (EVM) Reporting
At the highest level of control, Full EVM Reporting is implemented. Reserved for the most complex projects—typically Category A or B—this level ensures rigorous oversight with comprehensive Contract Performance Reports (CPRs). These reports align with EIA-748 and Association for Project Management (APM) standards.
Such meticulous tracking is critical for high-risk, cost-reimbursable, or complex developmental contracts, allowing teams to monitor progress, costs, and variances in real-time.
Level 2: Reduced Reporting
Ideal for lower-risk Category A and B projects or certain high-risk Category C projects, Level 2 simplifies reporting requirements while retaining robust oversight. Projects valued between £40M and £100M, such as fixed-price or Target Cost Incentive Fee (TCIF) contracts, benefit from this level, which provides the necessary data without the intensity of Level 1 reporting.
Level 3: Further Reduced Reporting
Level 3 is tailored for moderate-risk projects, such as Category C (£20M-£40M) or higher-risk Category D ventures. While Military Off-The-Shelf (MOTS) and Commercial Off-The-Shelf (COTS) procurements fit this category, the need for comprehensive EVM diminishes. Here, fewer CPRs allow for streamlined risk management, offering an efficient yet effective approach.
Level 4: Simplified Reporting with DEFCON 647
This level introduces significant simplification, relying primarily on DEFCON 647 management information. Suited for lower-risk Category D projects valued between £5M and £20M, it focuses on essential data points, such as critical milestones and payment schedules. Commodity-type or repeat contracts thrive under this reduced oversight, ensuring efficiency without compromising quality.
Level 5: Minimum EVM Requirements
At the most streamlined level, Level 5 is reserved for low-risk, short-duration projects valued under £5M or lasting less than 12 months. DEFCON 647 remains the foundation, but detailed EVM data is minimal. Reporting focuses on high-level milestones, providing a lean, agile framework for small-scale or short-term contracts.
Tailoring Project Controls for Maximum Efficiency
The beauty of the DE&S five-level system lies in its adaptability. By tailoring project controls to each initiative’s unique characteristics, DE&S ensures that contractors aren’t overburdened with unnecessary reporting. This flexible approach not only boosts project efficiency but also strengthens industry collaboration.
High-risk projects receive the rigorous oversight they require, while low-risk contracts benefit from simplified processes, freeing up resources for what truly matters—delivering results on time and within budget.
Why Tailored Project Controls Matter
Effective project management isn’t a one-size-fits-all process. The DE&S model demonstrates how a structured yet flexible framework can enhance outcomes while fostering stronger partnerships.
At Xacom, we specialise in customised Project Controls, helping organisations implement the right level of oversight for their unique needs. Whether you’re managing a high-stakes development or a straightforward procurement, our tools and expertise ensure you stay on track, on time, and within budget.
Take Your Project Controls to the Next Level
Ready to streamline your project management and boost efficiency? Explore our advanced solutions for tailored Project Controls, EVM, and risk management strategies. Visit our website today and discover how we can help you achieve your project goals with confidence.