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AACE EVP: Change Management and Integrated Baseline Reviews

AACE EVP ยท Work through your exam, one topic at a time.

All guide sections

Change Management and Integrated Baseline Reviews

Core concepts

Change control governs modifications to scope, schedule, and cost through a formal Change Control Board (CCB) and documented change requests. Approved changes flow into the baseline through baseline change proposals; internal replanning (using management reserve) versus customer-directed changes (using negotiated adjustments) must be distinguished. The Integrated Baseline Review (IBR) is a joint customer-contractor assessment confirming the PMB is realistic, complete, and achievable, typically conducted shortly after contract award or a major change. IBRs verify that the WBS, schedule, budgets, and earning rules are technically sound and that risks are understood.

Traps to watch

Questions test whether a change is internal replanning (within PMB, using MR) or a formal baseline change requiring CCB/customer approval. Another trap: management reserve cannot be used to cover an overrun on completed work; it covers future unplanned scope. Candidates must know the IBR is not an audit of accounting records but a technical/management review of baseline realism. Also watch for the distinction between performance measurement baseline changes and administrative budget changes that do not affect the PMB.

Rule of thumb

If scope is added and funded by the customer โ†’ formal baseline change via CCB. If risk materializes within authorized scope โ†’ use management reserve through controlled replanning.

Worked example

A control account overruns by $20,000 due to poor performance, and the customer adds $30,000 of new scope. The overrun cannot be absorbed by MR; the new scope is a formal change, raising BAC by $30,000 and flowing through the CCB into the revised PMB.