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Performance Measurement Baseline(PMB)

The time-phased budget plan for accomplishing all work, serving as the baseline for earned value management measurement.

Overview

The Performance Measurement Baseline (PMB) is the time-phased budget plan against which contract performance is measured in an Earned Value Management System. It integrates the scope of work, schedule, and budget into a single baseline that enables objective measurement of cost and schedule variances throughout contract execution.

Why It Matters in GovCon

The PMB is the foundation of earned value reporting on major contracts. Contractors must establish a credible PMB that withstands government scrutiny during Integrated Baseline Reviews. An unrealistic baseline undermines the value of EVM data and erodes agency confidence in program execution.

Key Details

  • Components: The PMB equals the sum of all work package budgets plus planning packages, distributed over time.
  • Management Reserve: Budget held outside the PMB for unforeseen within-scope work; not included in the baseline.
  • Change Control: Formal baseline change requests are required to modify the PMB after IBR acceptance.
  • ANSI/EIA-748: The standard defining EVM system requirements, including baseline management.
  • Variance Thresholds: Agencies set thresholds (typically ±10%) for cost and schedule variances that trigger reporting.

Related Terms

  • Earned Value Management (EVM)
  • Integrated Baseline Review (IBR)
  • Work Breakdown Structure (WBS)
  • Management Reserve

More Programs Terms

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