Overview of Deltek and top challenges facing Earned Value Focal Points.

1. Thank You For Letting Us Host
The NDIA Conference
Rick Lowrey
Executive Vice President
4/30/2008

2. Deltek 2008
Uniquely focused on software solutions for project-focused businesses
 25th anniversary year
 Over 12,000 customers worldwide
 $278 million total revenue in 2007
 1,200+ employees
 14 offices around the globe
 NASDAQ: PROJ
2008 Deltek, Inc. • All Rights Reserved 2

3. The Deltek Difference
 Deep Domain Expertise
– Focusing exclusively on project-based
businesses since founding
– Specialized applications meeting customer’s
demanding requirements
 Superior Value Proposition
– Faster to Deploy / Lower TCO / Higher ROI
– Significantly less customization required
– General purpose applications fall short for
project-based businesses
 Respected Experts
– Thought leaders with market leadership position
 Built-In Governance
– “The most audited software in the world”
– Built-in process controls
2008 Deltek, Inc. • All Rights Reserved 3

4. “Project World” – Who We Serve
Project-Focused Organizations
 Drive new business by winning
new projects
 Align their resources and plan
their work around projects
 Forecast revenue and profitability
by project
 Analyze profitability and
performance across the entire
enterprise by project
 Manage key performance metrics
by project
2008 Deltek, Inc. • CONFIDENTIAL • All Rights Reserved 4

5. Primary Industries Served by Deltek
Government Contracting Architecture & Engineering
– Aerospace & Defense – Commercial / Industrial
Architectural firms
– Government consulting
– Engineering firms
– Government agencies
– Environmental consulting
– Grant-based not-for-profit
firms – Geotechnical consulting
of ENR Top 500 A&E Design
of Top 100 Federal IT
90% Contractors
Washington
Technology, May 2007
76% Firms
Engineering News-Record
April 2007
Consulting
– Management consulting – Custom programming services
– IT and computer – Outsourced IT services
consulting services
2008 Deltek, Inc. • All Rights Reserved 5

6. Delivering Complete Project-Focused Solutions
Target Market: Architecture & Engineering, IT and Target Market: Medium and large-scale federal
management consulting firms of all sizes contractors, non-profit and IT services
Value: Value:
• Providing comprehensive financial management with
• Delivering real-time visibility into key business functions
built-in government and corporate compliance
• Enabling insight into project and firm profitability
• Automating complex business processes across the
• Improving resource utilization and optimization enterprise
• Streamlining the selection and capture of new business • Meeting rigorous IT demands of large enterprises
Target Market: Small to mid-size U.S. government Target Market: Government contractors and agencies
contractors Value:
Value: • Managing entire project lifecycle from planning to
• Meeting the financial management needs of small reporting
government contractors • Enabling projects to be delivered on time, on budget
• Ensuring compliance with federal cost accounting and within scope
regulations • Meeting stringent government reporting requirements
• Easily deployed without customization for earned value
2008 Deltek, Inc. • CONFIDENTIAL • All Rights Reserved 6

7. Strong Financial Story
Total Revenue
 We enable our customers to monitor critical
business processes, optimize resources,
streamline operations and win new business
($ Millions)
 Proven software solutions to meet the
complex demands of project-based
businesses
 Large, under-penetrated and growing market
 Highly profitable, strong growth
12,000+ 30% 25% 37%
customers worldwide license revenue CAGR total revenue CAGR EBITDA CAGR
spanning numerous 2002 - 2007 2002 - 2007 2002 - 2007
project-focused
industries
2008 Deltek, Inc. • CONFIDENTIAL • All Rights Reserved 7

8. Affinity Mapping Results
Top 5 Challenges Of Earned Value Practitioners
Integrated Program Management Conference (November, 2007)
Chris Bell
Senior Director, Product Marketing
4/30/2008

9. Integrated Program
Management Conference
November 5 – 7, 2007
2008 Deltek, Inc. 9

10. Hosted Affinity Mapping Session
 Objective:
– Identify Top 5 Challenges Of Earned Value Focal Points
 Process:
– Assemble a cross section of government agencies, contractors, &
consultants (US and International)
– Break into smaller groups
– Work independently and then in groups
– Prioritize top 5 challenges
– Discuss best practices to solve problems with expert panel
2008 Deltek, Inc. 10

11. Sample Attendees
Government Agencies Contractors
2008 Deltek, Inc. 11

12. Top 5 Challenges of EV Focal Points
Lack Mgmt
Buy-In
Inconsistent Do More
Processes With Less
Hard To
Integrate Manual
Cost & Reporting
Schedule
2008 Deltek, Inc. 12

13. Lack Management Buy In
“I find it challenging
“I have challenges with
convincing customers of
senior level buy-in.”
the true benefits of EV.”
“I find it difficult to
overcome the
perception of high cost
of implementing EV.”
2008 Deltek, Inc. 13

14. More Demands, Tighter Timelines and Fewer
Qualified Resources
“I have a challenge of
“I can't get to consistent not enough time to
training & application.” cover areas of training,
program support.”
“Challenged by
increasing workloads &
shrinking staff.”
2008 Deltek, Inc. 14

15. Takes Too Long to Manually Produce Reports
We Can Trust
“I spend too much time “I have a problem
generating monthly getting timely, reliable
program metric reports.” cost information.”
“I'm challenged to
streamline processes
(reporting) and
standardizing formats
while satisfying PMOs.”
2008 Deltek, Inc. 15

16. It's Virtually Impossible to Integrate Cost,
Schedule and Resource Data
“I have challenges
developing cost
“I have a hard time
estimating using product
integrating schedules
oriented WBS vs.
with cost.”
agency mandated
WBS.”
“Challenges of poor
process implementing
on cost estimating, how
to migrate to EV
baseline.”
2008 Deltek, Inc. 16

17. Everyone Manages Programs Differently
“I have a hard time
“I have a challenge
getting all organizations
taking program success
to agree to pursue in
to the enterprise level.”
one direction.”
“I have trouble
implementing quot;best
practices” because
upper mgmt doesn't
push it.”
2008 Deltek, Inc. 17

18. What Happens In Real Life?
Change Or Delay
Program Program Control Account
Managers Controls Managers
Estimates Program Integrated WADs Change Schedule Variance
At Completion Performance Master Schedule Control Status Reporting
Estimates To Work Package
EVM Reports
Complete Budget
2008 Deltek, Inc. 18

19. What Happens In Real Life?
Change Or Delay
Program Program Control Account
Managers Controls Managers
Confusion – Rework – Time Loss
Estimates Program Integrated WADs Change Schedule Variance
At Completion Performance Master Schedule Control Status Reporting
Estimates To Work Package
EVM Reports
Complete Budget
2008 Deltek, Inc. 19

20. The Impacts Affect Everyone On The Team
Change Or Delay
Program Program Control Account
Managers Controls Managers
• Poor Visibility • No Management • Hard To Forecast
• Surprises Buy-In Risk & Delay
• Unclear • Tighter Deadlines, • Increased Reporting
Accountability Fewer Resources Frequency
• Manual Reports • Less Time For
“Real Work”
2008 Deltek, Inc. 20

21. The Ideal Solution Would…
Control Account Program Program
Managers Controls Managers
Delivers
• Early Warning Indicators
• Automated Reporting
• Anywhere Access
• Process Control
2008 Deltek, Inc. 21

22. Deltek Is Listening To You!
Deltek provides the most project proven Earned Value Management
(EVM) and Enterprise Project Management (EPM) software
solutions to organizations worldwide. We combine more than 20 years
of industry knowledge, innovative technology such as (Cobra™,
wInsight™ and Open Plan™) and global experience to create
software solutions that improve the control of your programs.

23. Deltek Solution
Dashboard & Business Analytics
(wInsight & WelcomHome)
Earned Value Schedule Risk
Management Management Management
(Cobra) (Open Plan) (WelcomRisk)
Materials Management Accounting Time Collection
(Costpoint) (Costpoint) (TEESS)
Accounting System

24. Earned Value Metrics
Easy To Read KPIs Help Avoid Surprises

25. New Tripwire Metrics
 The new tripwire metrics are designed to provide
wInsight users with another means of proactively
identifying potential performance problems early in
the project lifecycle.
 The metrics cause color-coded status “warnings”
to display on related reports and charts when user-
defined thresholds are exceeded.
2007 Deltek Systems, Inc. 25

26. Baseline Execution Index (BEI)
 Baseline Execution Index (BEI):
– The Baseline Execution Index (BEI) metric is used to indicate the efficiency with
which actual work has been accomplished when measured against the baseline
 Example:
– Through January 2004 the supplier network schedule shows 1,955 total
tasks/activities to have been completed from contract start through the current
reporting period; 1,516 total tasks/activities have actually been completed
– Cumulative BEI = 1,516 Actual / 1,955 Baseline = 0.78 efficiency through the current
reporting period
– In this example, the BEI of 0.78 falls well below 1.00 indicating a considerable
portion of the program schedule is not being completed as originally planned.
Through the current reporting period, the actual rate of completing 1,516
tasks/activities or 78% of all work planned indicates 22% of work planned to be
completed has been deferred to future periods.
2007 Deltek Systems, Inc. 26

27. Baseline Execution Index Chart in wInsight
MEG H
A ER ELEC & VEN F
Z 04695-86-C -0050 FPI R PR
D
Element: 1000 D M Baseline Ex
C A ecution Index Name: M H
O -2
2003 2004
Task Hit/Miss P ercentage
Number of Tasks
APR MAY JUN JU L AUG SEP O T N V D
C O EC JAN
1.10
1.00
2,000
0.90
1,800
0.80
0.70 1,600
0.60
1,400
0.50
0.40 1,200
0.30
1,000
0.20
800
0.10
Task H 0.110 0.200 0.670 0.140 0.610 0.610 0.550 0.460 0.640 0.610
it/Miss
Planned 1,102 1,122 1,125 1,209 1,356 1,427 1,512 1,581 1,756 1,955
Cum
Actual C 882
um 900 910 999 1,077 1,134 1,200 1,271 1,376 1,516
In the chart above, the task hit/miss values are based on current period data as opposed to cumulative data. The green line
represents cumulative planned tasks through a given period and the blue line represents cumulative actual tasks through a
given period. The Task Hit/Miss percentage which is based on current period data is represented by the red bars.
2007 Deltek Systems, Inc. 27

28. Critical Path Length Index (CPLI)
 Critical Path Length Index (Realism)
– Calculates and graphically displays the longest, continuous sequence of
tasks/activities through the network from contract start (or the current status date) to
contract completion
CPLI = Critical Path Length + Total Float
Critical Path Length
Target efficiency ratio is quot;1.00“
– Greater than 1.00 = favorable; Less than 1.00 = unfavorable
 Example:
– Through April the supplier network schedule calculates a program critical path
length of 720 work days (3 years) with 60 work days (3 months) of negative float
from contract award to completion; At present the supplier’s CPLI of less than 1.00
indicates that program will not achieve its baseline completion date without
corrective action; CPLI should be tracked to gauge the realism of completing the
contract on time
– CPLI = (( 720 – 60) / 720) = 0.917
2007 Deltek Systems, Inc. 28

29. Critical Path Length Index Chart in wInsight
M A HERZ ELEC & VEN F
EG 04695-86-C-0050 FPI RDPR
Element: 1000 DCM Track
A ing Critical Path Length Index Name: M H-2
O
In d e x 2003 2004
APR MAY JUN JUL AUG SEP OCT NOV DEC JAN
1.000
0.975
0.950
0.925
0.900
CPLI 0.917 0.917 0.930 0.930 0.900 0.900 0.900 0.940 0.950 0.950
Trend Line
0.910 0.913 0.916 0.919 0.922 0.925 0.928 0.931 0.934 0.937
2007 Deltek Systems, Inc. 29

30. Updated Tripwire Summary Report
Cumulative BEI
Through Jan 04
2007 Deltek Systems, Inc. 30

31. Information Delivery
Integrated Reporting
Scope Schedule Cost Risk
Earned Value Solution
31

32. What It Would Do For You
Visibility, Early Warning Indicators, Control
Program Program Control Account
Managers Controls Managers
• Visibility • Consistency • More Time
• Reduced Surprises • Accuracy • Less Low Value
• Accountability • Automation “Work”
2008 Deltek, Inc. 32

33. You Can Take It Steps
Compliance Complete
Solution Solution
• wInsight
• wInsight
• Cobra
• Cobra
• Open Plan
• Open Plan
• Costpoint
Program
Controls Rigor
EV Essentials™ The PMO
Solution Solution
• WelcomHome
• wInsight
• Open Plan
• Preconfigured Cobra
• wInsight
Volume of
Projects
2007 Deltek, Inc. 33

34. EV Basics EV ANSI/EIA- EV Best
Level 2
Level 3
Level 4
Level 5
EV
Level 1
Foundation Introduction Acceptance 748 Practice
Basic schedule to EVM Build on pilot Compliance EVM system
tools, project- processes success, more EVM System acceptance in
based and advanced Description in place, EVM is
accounting, an procedures, a processes place, mature a standard
d time keeping. ble to and use of way of doing
No EVM in establish a procedures, EVM, risk business, EV
place. performance enhance management M is fully
measurement schedule fully integrated
baseline, prod capability, integrated, rea into
uce CPRs. expand to dy for an EVM management
more projects. system processes.
Able to pass validation. Self
an Integrated surveillance
Baseline in place.
Review (IBR).
The Deltek EVM Blueprint™
2008 Deltek, Inc. 34

35. Gaylord Opryland
Resort & Convention Center
Nashville, TN • May 19-22, 2008
Don’t miss the premier
event for project-focused
professionals!
For more information, visit:
www.deltekinsight.com
2007 Deltek, Inc. 35