GOVERNMENT-REQUIRED USE
In April 2013, DoD issued a supplement to the Defense Federal Acquisition Regulation (DFARS) in which Subpart 234.2 further confirmed the system requirements for use of an EVMS. Those requirements include the following:
•Optional compliance with ANSI/EIA-748 for cost or incentive contracts and subcontracts valued at less than $20 million, with a decision to comply voluntarily with EVM guidelines documented in the contract file along with a risk-benefit analysis
•Compliance with ANSI/EIA-748 for cost or incentive contracts for contracts and subcontracts valued at $20 million or more
•“Confirmed” (determined by the cognizant federal agency) compliance with ANSI/EIA-748 for cost or incentive contracts for contracts and subcontracts valued at $50 million or more
•Strong discouragement (a waiver is required) of the use of ANSI/EIA-748 for firm-fixed-price contracts for contracts and subcontracts of any value.
Other sections of Subpart 234.2 cover the details of exactly how the contractor’s EVMS will be evaluated, how deficiencies are noted for correction, and how a final “accept” or “reject” decision is made. Subpart 234.2 also describes how inspection results at various stages of the investigation must be reported.
Manager Alert
Government requirements for a contractor’s use of EVM vary depending on the size and type of contract.
Special provision may be made for temporary use of EV systems that are not compliant with ANSI/EIA-748, but cost or incentive contracts valued at $20 million or more must follow the provision at 252.234–7001 (not FAR 52.234-2 and FAR 52.234-3).