Earned Value Management (EVM) Contract Requirements Checklist

BASIC REQUIREMENTS
• Earned Value Management System (EVMS) in compliance with guidelines in ANSI/EIA-748* is required on all cost or incentive contracts equal to or greater than $20M.
• A formally validated and accepted EVMS is required for cost or incentive contracts equal to or greater than $50M.
• EVM is discouraged for Firm-Fixed Price (FFP) contracts, except when a FFP contract equal to or greater than $20M is used for development work. Exception requires business case and Milestone Decision Authority waiver.
• EVM may be imposed on contracts less than $20M as a risk-based decision of the program manager based on a cost/benefit analysis.
• See Table 1 entitled, “Performance Management Thresholds” (attached).

*ANSI/EIA-748 = American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems.

STATEMENT OF WORK (SOW)
• The SOW shall not contain guidance or direction that conflicts with, removes, or adds work scope to the contractor’s validated EVMS (required by imposition of Defense Federal Acquisition Regulation Supplement (DFARS) 252.234-7002). Consult the Defense Contract Management Agency (DCMA) for guidance on compliance of the contractor’s EVMS.