In October $2013$ Franklin Electronics won an $18-$month labor$-$intensive product development cuntract awarded by Spokane Industries. The award was a cost reimbursable contract with a cost target of $$2\mathrm{.}66$ million and a fixed fee of $6\mathrm{.}75$ percent of the target. This contract would be Franklin's first attempt at using formal project management, including a newly developed project management methodology. Franklin had won several previous contracts from Spokane Industries, but they were all fixed$-$price contracts with no requirement to use formal project management with earned value reporting. The terms and conditions of this contract included the following key points: Project management $($formalized$)$ was to be used. Barned value cost schedule reporting was a requirement.