Advance Agreement (AA)
The AA between the ACO, and contractor specifies that the contractor maintain and use the accepted EVMS as an integral management process on current as well as future contracts. The AA also documents the Government’s intent to minimize system reviews.  The AA also documents a contractor’s corporate commitment to continue to use and maintain the EVMS guidelines compliant system for current and future Government contracts through an internal surveillance program.

Template: Advance Agreement

A template for the AA (Template: Advance Agreement) is provided at Appendix D in the DoD Earned Value Management Implementation Guide (EVMIG). The CMO and contractor should also establish a Rules of Engagement (ROE) document to identify how joint surveillance findings are documented and the process for resolution of disagreements concerning EVMS validation issues.

Pending approval and coordination with the Defense Contract Management Agency (DCMA) EVM Center, an AA may be executed following the successful completion of an EVMS VR and remains in effect indefinitely. Once executed, the AA should be referenced and incorporated into each contract requiring a validated EVM system. The AA is signed by the cognizant Contracting Officer and a contractor representative at the commensurate level. For example, if the validation is for an EVMS used throughout a corporation’s division, the appropriate contractor representative may be the division manager.

Government Program Managers (PM) should be aware of the existence of AAs with their contractors in order to take maximum advantage of the agreements contained therein in establishing Memorandum of Agreement (MOA) requirements.

The use of the AA over the LOA option should be considered whenever possible, as the AA documents and codifies the contractor’s commitment to apply and use EVM on a corporate basis.

Letter of Acceptance (LOA)
A LOA is an alternative method to grant system validation following a successful Validation Review. The LOA documents the validation of the EVM system for use within the contractor’s facility, but does not extend to a corporate level validation. In some cases, a company may only wish to agree to a facility wide commitment to EVM. The LOA also remains in effect indefinitely.  Once executed, the LOA should be referenced and incorporated into each contract at the facility requiring a validated EVM system.

AcqLinks and References:

Updated: 7/28/2017

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