The Program Manager (PM) should use Defense Federal Acquisition Regulation Supplement (DFARS) clauses 252.234-7001 and 252.234-7002 to place the Earned Value Management (EVM) Solicitation requirement in solicitations and contracts. There is a single set of clauses for Earned Value Management System (EVMS) compliance and determination, and a different set for EVMS compliance. See the figure below. [1]
- DFARS Clause 252.234-7001 – Notice of Earned Value Management System
- DFARS Clause 252.234-7002 – Earned Value Management System (located below 7001)
DoD policy mandates EVM for major acquisition contracts that meet the thresholds and criteria contained in DoD Instruction 5000.2. This is mandatory unless waived by the Milestone Decision Authority (MDA). This policy also applies to highly sensitive classified programs, major construction programs, and automated information systems. In addition, it applies to contracts wherein the following circumstances exist:
- The prime contractor or one or more subcontractors is a non-US source;
- Contract work is to be performed in Government facilities; or
- The contract is awarded to a specialized organization such as the Defense Advanced Research Projects Agency
DoD policy also mandates that the EVM requirements be flowed down to subcontracts that meet the thresholds and criteria prescribed in DoD Instruction 5000.2. (See EVMS Overview for thresholds)
There are four (4) areas of a solicitation that require EVMS Requirements. (See Solicitation Requirements)
These areas are:
- Work Breakdown Structure (WBS)
- DFARS clauses
- Statement of Work (SOW)
- Contract Data Requirements List (CDRL)
AcqTips:
- The DoD Earned Value Management Implementation Guide (EVMIG) contains good examples of how to write EVMS requirements. See Appendix B and pages 17-19.
AcqLinks and References:
- [1] Defense Acquisition Guidebook (DAG)
- DoD Earned Value Management Implementation Guide (EVMIG)
- Website: DoD EVMS Home Page
- Website: Earned Value Management Central Repository
- Website: DFARS Subpart 234.2 “Earned Value Management”
- Website: DFARS Subpart 242.302 “Contract administration functions (S-71)”
- Website: DFARS Subpart 252.234-7001 “Notice of EVMS”
Updated: 6/15/2018
