Table 8 – EVM Application Requirements
1: ACATs and Compliance Requirements
2: Program Management
3: Systems Engineering
4: Developmental Test and Evaluation
5: Operational and Live Fire Test and Evaluation
6: Life-Cycle Sustainment
7: Human Systems Integration (HSI)
8: Affordability Analysis and Investment Constraints
9: Analysis of Alternatives (AOA)
10: Cost Estimating and Reporting
11: Requirements Applicable to All Programs Containing IT
12: Defense Business Systems
13: Rapid Fielding of Capabilities
1: Description and Decision Authority for ACAT I – III Programs
2: Milestone and Phase Information Requirements
3: Acquisition Program Baselines (APBs)
4: Statutory Program Breach and Change Definitions
5: Recurring Program Reports
6: Exceptions, Waivers, and Alternative Management and Reporting Requirements
7: Cost and Software Data Reporting (CSDR) System Requirements
8: Earned Value Management (EVM) Application Requirements
9: EVM Reporting Requirements
10: Clinger Cohen Act (CCA) Compliance
11: Information Requirements Unique to the Urgent Capability Acquisition Process
12: Cybersecurity and Related Program Security Resources and Publications
Table 8 is located in Enclosure 1 Section 5 Reporting Requirements.
|Table 8. EVM Application Requirements|
|< $20M||EVM not required; may be applied at PM discretion based on risk to the Government||Requires business case analysis and MDA approval||Part 7 of OMB Circular A-11 (Reference (c)); DFARS 234.201 (Reference (al)); This instruction|
|≥ $20M & < $100M||EVM Required; contractor is required to have an EVM system (EVMS) that complies with the guidelines in EIA-748*||The Government reserves the right to review a contractor’s EVMS when deemed necessary to verify compliance|
|≥ $100M||EVM Required; contractor is required to have an EVMS that has been determined to be in compliance with the guidelines in EIA-748*||The Contractor will provide access to all pertinent records and data requested by the Contracting Officer or duly authorized representative as necessary to permit initial and ongoing Government compliance reviews to ensure that the EVMS complies, and continues to comply, with the guidelines in EIA-748*.|
Applying EVM outside the thresholds and criteria above, to include application on firm, fixed-price (FFP) contracts, FFP task orders, or FFP delivery orders, a cost-benefit analysis will be conducted, MDA approval is required, and the results provided to the contracting officer for documentation in the contract file.
The term “contracts” includes contracts, subcontracts, intra-government work agreements, and other agreements.
For indefinite delivery, indefinite quantity (IDIQ) contracts, inclusion of EVM requirements is based on the estimated ceiling of the total IDIQ contract, and then is applied to the individual task/delivery orders, or group(s) of related task/delivery orders, that meet or are expected to meet the conditions of contract type, value, duration, and work scope. The EVM requirements should be placed on the base IDIQ contract and applied to the task/delivery orders, or group(s) of related task/delivery orders. “Related” refers to dependent efforts that can be measured and scheduled across task/delivery orders.
The Integrated Baseline Review is required when EVM is determined to be applicable.
The initiation of an over-target baseline or over-target schedule must be approved by the Government program manager.
Application thresholds are in then-year dollars.
* EIA-748 = Electronic Industries Alliance (EIA) 748-C (Reference (au))