SUBPART 234.2—EARNED VALUE MANAGEMENT
SYSTEM
(Added April 23, 2008)
234.201 Policy.
234.203 Solicitation provisions and contract clause.
234.201
Policy.
(1)
DoD applies the earned value management system requirement as
follows:
(i) For cost or incentive contracts and
subcontracts valued at $20,000,000 or more, the earned value management system
shall comply with the guidelines in the American National Standards
Institute/Electronic Industries Alliance Standard 748, Earned Value Management
Systems (ANSI/EIA-748).
(ii) For cost or incentive contracts and subcontracts
valued at $50,000,000 or more, the contractor shall have an earned value
management system that has been determined by the cognizant Federal agency to
be in compliance with the guidelines in ANSI/EIA-748.
(iii) For cost or incentive contracts and
subcontracts valued at less than $20,000,000—
(A) The application of earned value management is
optional and is a risk-based decision;
(B) A decision to apply earned value management
shall be documented in the contract file; and
(C) Follow the procedures at PGI 234.201(1)(iii)
(Pop-up Window or PGI Viewer Mode) for conducting a cost-benefit analysis.
(iv) For firm-fixed-price contracts and
subcontracts of any dollar value—
(A) The application of earned value management is
discouraged; and
(B) Follow the procedures at PGI 234.201(1)(iv)
(Pop-up Window or PGI Viewer Mode) for obtaining a waiver before applying earned value management.
(2)
When an offeror proposes a plan for compliance with the earned value
management system guidelines in ANSI/EIA-748, follow the review procedures at
PGI 234.201(2) (Pop-up Window or PGI Viewer Mode).
(3)
The Defense Contract Management Agency is responsible for determining
earned value management system compliance when DoD is the cognizant Federal
agency.
(4)
See PGI 234.201(4) (Pop-up Window or PGI Viewer Mode) for additional guidance on earned value management.
234.203
Solicitation provisions and contract clause.
For cost
or incentive contracts valued at $20,000,000 or more, and for other contracts
for which EVMS will be applied in accordance with 234.201(1)(iii) and (iv)—
(1)
Use the provision at 252.234-7001, Notice of Earned Value Management
System, instead of the provisions at FAR 52.234-2, Notice of Earned Value
Management System – Pre-Award IBR, and FAR 52.234-3, Notice of Earned Value
Management System – Post-Award IBR, in the solicitation; and
(2)
Use the clause at 252.234-7002, Earned Value Management System, instead
of the clause at FAR 52.234-4, Earned Value Management System, in the
solicitation and contract.