ࡱ> g ;bjbjVV Šr<r<2?4666h*6?L*FFF!f???????$ATD??!!??FFT?4FF??68F5sf4a7??<?y7\DD08D80"????0|?D : 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 contractors 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 contractors EVMS. DFARS CLAUSES Notice of Earned Value Management System (Apr 2008), DFARS 252.234-7001. Earned Value Management System (Apr 2008), DFARS 252.234-7002. See Table 2 entitled, EVM Clause Usage (attached). Notes: This Checklist is available on the web sites cited below. The Federal Acquisition Regulation (FAR) contains EVMS clauses for use by the Federal civilian agencies; however, on DoD contracts, the DFARS EVMS clauses will be used instead of the FAR EVMS clauses (see DFARS 234.203). The contract shall not contain special clauses or provisions in Section H that conflict with, remove, or add work scope to the contractors validated EVMS (required by imposition of DFARS 252.234-7002). Consult DCMA for guidance on compliance of the contractors EVMS. DATA REQUIREMENTS A Contract Performance Report (CPR) (Data Item Description (DID) number DI-MGMT-81466A) and an Integrated Master Schedule (IMS) (DID number DI-MGMT-81650) are required whenever EVM is required (contracts equal to or greater than $20M). See attached SOW paragraph for the IMS. The CPR Contract Data Requirements List (CDRL) for contracts of $50M or greater will require all five CPR formats. The CPR CDRL for contracts less than $50M may tailor down the DID to accommodate program information needs. In the case of the IMS CDRL, the IMS DID for contracts less than $50M may also be tailored down based on the contract value and relative information needs. The DoD Earned Value Management Implementation Guide (EVMIG) contains additional guidance and information on tailoring these data items. The current version of the EVMIG may be accessed from the on-line sources of information referenced below. A product-oriented Contract Work Breakdown Structure (CWBS) in accordance with the DoD WBS Handbook (MIL-HDBK-881A) and the CWBS DID (DID number DI-MGMT-81334C) is mandatory when EVM is implemented and a CPR and an IMS are required. For contracts that require Contractor Cost Data Reports (CCDRs), the CWBS will be developed, approved, and maintained in accordance with DoD 5000.04-M-1, Cost and Software Data Reporting Manual, and the CWBS DID. A single CWBS will be developed and maintained for all contract reporting. A Contract Funds Status Report (CFSR) (DID number DI-MGMT-81468) is required. No specific dollar thresholds are established for the CFSR, but application to contracts of less than $1.5M should be carefully evaluated. INTEGRATED BASELINE REVIEWS (IBRs) IBRs are required whenever EVM is required (contracts equal to or greater than $20M). If a program manager elects to conduct a pre-award IBR on a DoD contract, that requirement will be included in the SOW. See attached SOW paragraph for IBRs. COST PLUS AWARD FEE (CPAF) TYPE CONTRACTS EVM award fee criteria the DoD EVMIG contains guidance for developing award fee criteria related to EVM. The current version of the EVMIG may be accessed from the on-line sources of information referenced below. SECTION M EVALUATION FACTORS FOR AWARD Include consideration for validated EVMS (if applicable) or viable plan to achieve validation. For more information, visit the following on-line sources: OSD EVM web site:  HYPERLINK "http://www.acq.osd.mil/pm/" http://www.acq.osd.mil/pm/ EVM Community of Practice web site:  HYPERLINK "https://acc.dau.mil/evm" https://acc.dau.mil/evm Address questions to the following points of contact: Department of Defense: Debbie Tomsic, OSD(AT&L), (703) 695-0707,  HYPERLINK "mailto:deborah.tomsic@osd.mil" deborah.tomsic@osd.mil National Defense Industrial Association: Daniel Butler, Chairman, Program Management Systems Committee, (858) 826-3925,  HYPERLINK "mailto:daniel.e.butler@saic.com" daniel.e.butler@saic.com Table 1. Performance Management Thresholds Contract Total Estimated Value, Then-Year $ (Note 1)EVM Implementation (Notes 2,3,4,5,6,7,8)CPR Data Item (Note 9)IMS Data Item (Note 9)CFSR Data Item (Note 10)CWBS Data Item (Note 11)Subcontractor Flow Down$50M and greaterRequiredRequiredRequired RequiredRequiredReporting thresholds for a subcontract must flow down consistently from the contract$20M and greater but less than $50MRequiredRequiredRequiredRequiredRequired if CCDRs are required; optional otherwise (at discretion of PM or Cost Working IPT)Less than $20M Optional (at discretion of PM)Required if PM elects to require EVMRequired if PM elects to require EVMRequiredRequired if CCDRs are required; optional otherwise (at discretion of PM or Cost Working IPT) Note: Notes regarding this table are on the next page. Notes Regarding Preceding Performance Management Thresholds Table Note 1. Thresholds are in then-year dollars and refer to total estimated contract value including options. Note 2. For procurements equal to or greater than $20M but less than $50M, the contractor must comply with the guidelines in ANSI/EIA-748, but a validated Earned Value Management System (EVMS) is not required. Note 3. For procurements equal to or greater than $50M, the contractor must have a validated EVMS that complies with the guidelines in ANSI/EIA-748. Note 4. Integrated Baseline Reviews (IBRs) are required whenever Earned Value Management (EVM) is required (contracts equal to or greater than $20M). Note 5. The application of EVM is discouraged on Firm-Fixed Price (FFP) (including FFP with economic price adjustment) contracts, subcontracts, intra-government work agreements, and other agreements, regardless of dollar value. In cases where cost/schedule visibility is required, such as for development work equal to or greater than $20M, the program manager must obtain a waiver for individual contracts from the Milestone Decision Authority. The program manager will prepare a business case that includes rationale for why a cost reimbursable or fixed price incentive contract is not an appropriate contractual vehicle. Considerations for applying EVM in these situations may be found in the DoD Earned Value Management Implementation Guide (EVMIG). Note 6. The application of EVM to work efforts that are not discrete in nature (non-schedule based), such as level of effort, time and materials, and services, should be considered on a case-by-case basis. In cases where the nature of the work does not lend itself to the meaningful use of EVM, it may be appropriate to waive the EVM requirement. When EVM is waived, the program manager will implement an alternate method of management control. Note 7. The application of EVM on cost or incentive efforts less than $20M is optional and is a risk-based decision that is at the discretion of the program manager. A cost-benefit analysis should be used as a basis for the decision to implement EVM. Considerations for applying EVM in these situations may be found in the DoD EVMIG. Note 8. The application of EVM is not required on contracts of less than 12 months in duration. Note 9. A Contract Performance Report (CPR) (Data Item Description (DID) number DI-MGMT-81466A) and an Integrated Master Schedule (IMS) (DID number DI-MGMT-81650) are required whenever EVM is required (contracts equal to or greater than $20M). Note 10. No specific application thresholds for Contract Funds Status Reports (CFSRs) are established; however, application to contracts of less than $1.5M in then-year dollars should be evaluated carefully to obtain only the minimum information required for management control. CFSRs should not be applied to FFP contracts or contracts of less than 6 months in duration. Note 11. A product-oriented Work Breakdown Structure (WBS), in accordance with the DoD WBS Handbook (MIL-HDBK-881A) and the Contract Work Breakdown Structure (CWBS) DID (DID number DI-MGMT-81334C), is mandatory when EVM is implemented and a CPR and an IMS are required. For contracts that require Contractor Cost Data Reports (CCDRs), the CWBS will be developed, approved, and maintained in accordance with DoD 5000.04-M-1, Cost and Software Data Reporting Manual, and the CWBS DID. 2 Table 2. EVM Clause Usage Title of ClauseLocation UsedClause No.Notice of Earned Value Management System (Apr 2008) Used in solicitations when the intent is to invoke compliance with the EVMS guidelines in ANSI/EIA-748. (See Statement of Work (SOW) paragraph entitled, Contractor Integrated Performance Management.)DFARS 252.234-7001Earned Value Management System (Apr 2008)Used in solicitations and contracts when the intent is to invoke compliance with the EVMS guidelines in ANSI/EIA-748. The appropriate Data Item Descriptions (DIDs) to be cited in the Contract Data Requirements List (CDRL) are DI-MGMT-81466A, Contract Performance Report (CPR), and DI-MGMT-81650, Integrated Master Schedule (IMS). (See SOW paragraphs entitled, Contractor Integrated Performance Management and Integrated Master Schedule.)DFARS 252.234-7002 Note: The contract shall not contain special clauses or provisions in Section H that conflict with, remove, or add work scope to the contractors validated EVMS (required by imposition of Defense Federal Acquisition Regulation Supplement (DFARS) 252.234-7002). Consult DCMA for guidance on compliance of the contractors EVMS. Statement of Work Paragraphs Contractor Integrated Performance Management. The contractor shall establish, maintain, and use in the performance of this contract, an integrated performance management system. Central to this integrated system shall be a validated Earned Value Management System (EVMS) in accordance with Defense Federal Acquisition Regulation Supplement (DFARS) 252.234-7001, DFARS 252.234-7002, and the EVMS guidelines contained in ANSI/EIA-748. To establish the integrated performance management system, the EVMS shall be linked to and supported by the contractors management processes and systems to include the integrated master schedule, contract work breakdown structure, change management, material management, procurement, cost estimating, and accounting. The correlation and integration of these systems and processes shall provide for early indication of cost and schedule problems, and their relation to technical achievement. (DI-MGMT-81466A) Integrated Master Schedule (IMS). The contractor shall develop and maintain an Integrated Master Schedule (IMS) by logically networking detailed program activities. The schedule shall contain the planned events and milestones, accomplishments, exit criteria, and activities from contract award to the completion of the contract. The contractor shall quantify risk in hours, days, or weeks of delay and provide optimistic, pessimistic, and most likely duration for each IMS activity and event. (DI-MGMT-81650) Integrated Baseline Reviews (IBRs). The contractor shall engage jointly with the Governments program manager in Integrated Baseline Reviews (IBRs) to evaluate the risks inherent in the contracts planned performance measurement baseline. Initially, this shall occur as soon as feasible but not later than six months after contract award, and subsequently following all major changes to the baseline. Each IBR should verify that the contractor is using a reliable performance measurement baseline, which includes the entire contract scope of work, is consistent with contract schedule requirements, and has adequate resources assigned. Each IBR should also record any indications that effective Earned Value Management (EVM) is not being used. IBRs should also be conducted on subcontracts that meet or exceed the EVM application threshold. The prime contractor shall lead the subcontractor IBRs, with active participation by the Government. 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