EAST HARTFORD, Conn., Oct. 15 (UPI) -- Pratt & Whitney is improving deficiencies in its earned value management system, which opened the door to U.S. government penalties.
The EVMS tracks cost and schedule performance on certain types of U.S. government contracts, and a recent audit of it by the Defense Contract Management Agency found flaws in relation to F135 engine contracts.
"There are merits in many of the audit findings," Pratt & Whitney said. "DCMA identified four specific areas for improvement: updating documentation to better align with company processes, improving how to manage and integrate scheduling tools, better estimating and forecasting costs, and improving work package planning."
Under federal acquisition regulations, a maximum of 5 percent of company billings in regard to the engine contracts can be withheld as a penalty for the management deficiencies. DCMA, however, can reduce the penalty if convinced company remediation efforts are making progress.
"Our customers expect flawless performance and execution to our contract obligations, supported by an EVMS that provides accurate cost and schedule status for use in managing our programs, the company said.
"We are committed to having the best earned value management system possible, and to consistently and accurately track performance and execution to our contracts."