NDIA EIA 748 Earned Value Management

The National Defense Industrial Association (NDIA) / Electronic Industries Alliance (EIA) standard EIA-748, Earned Value Management Systems (EVMS), is the standard for DoD Earned Value Management programs. The DoD formally adopted EIA-748 in August 1998 for application to Major Defense Acquisition Programs (MDAP).

Note: Earned Value Management Surveillance is required for all contract efforts that require the implementation of an Earned Value Management System (EVMS) compliant with the guidelines in ANSI/EIA-748, regardless of whether a formal system validation is required.

Objective of EIA-748 Earned Value Management System (EVMS)

The objective of EIA-748 is to provide integrated program management information using the organization’s resources and an EVMS implementation scaled to meet the management needs of the project. A scaled EVMS applies the 32 guidelines to reflect the size, complexity, and type of work effort necessary to manage the project successfully.

Who Maintains EIA-748 Earned Value Management System (EVMS)

The National Defense Industrial Association (NDIA) maintains the EIA-748 Standard every five years with SAE International, the standards body that sponsors the EIA 748. In the past, the responsible party was American National Standards Institute (ANSI).

Note: EIA 748-D Standard for EVMS is copyrighted and sold by SAE International for $85

Website: SAE International EIA 748D

Main References

There are two (2) main guides

EIA 748-D Standard for EVMS (Copyrighted): define a process whereby an EVM System Owner (supplier) or government program complies with the EVMS Guidelines.
EIA 748-D EVMS Intent Guide (2018): define in detail the management value and intent for each of the 32 guidelines listed below. The NDIA created this Intent Guide to provide additional insight into the EIA-748 Standard for EVMS

EIA-748 EVMS Compliance (DFARS SUBPART 234.2)

As prescribed in DoD Instruction 5000.02, compliance with NDIA/EIA-748 is required for DoD cost or incentive contracts and agreements valued at or greater than $20M. Compliance with NDIA/EIA-748 and an EVMS validation is required for DoD cost or incentive contracts and agreements valued at or greater than $50M. If the contract value is less than $50M, then formal validation of the contractor’s EVMS is not required; however, the contractor needs to maintain compliance with the standard. Contract reporting includes the Contractor Performance Report (CPR) and the Integrated Master Schedule (IMS). [1]

EIA-748 EVMS Guidelines

The 32 guidelines described in NDIA/EIA-748 provide a consistent basis to assist the Government and the contractor in implementing and maintaining acceptable EVM systems. The guidelines are: [1]

Define authorized work
Identify Program Organization Structure
Company integration of EVMS subsystems with Work Breakdown Structure (WBS)
Identify organization/function for overhead
Integrate WBS and Organization Breakdown Structure (OBS), create control accounts
Sequential scheduling of work
Identify interim measures of progress, i.e. milestones, products, etc.
Establish time-phased budget
Identify significant cost elements within authorized budgets
Identify discrete work packages
All work package budgets & planning packages sum to control acct
Identify and control LOE budgets
Establish overhead budgets by organization element
Identify management reserve and undistributed budget
Reconcile program target cost goal with the sum of all internal budgets
Record direct costs from the accounting system
Summarize direct costs into WBS without allocation
Summarize direct costs into OBS without allocation
Record indirect costs
Identify unit costs, equivalent units costs or lot costs
Accurate material cost accumulation by control accounts; EV measurement at right time; full accountability of material
Control account monthly summary, identification of Cost Variance (C), and Schedule Variance (SV)
Explain significant variances
Identify and explain indirect cost variances
Summarize data elements and variances thru WBS/OBS for mgmt.
Implement management actions as a result of EVM analysis
Revise EAC based on performance data; calculate VAC
Incorporate authorized changes in a timely manner
Reconcile budgets with prior budgets
Control retroactive changes
Prevent all but authorized budget changes
Document changes to Performance Measurement Baseline (PMB)

History of EAI 748 EVMS Standard

ANSI / EIA 748 Initial release approved May 1998 (Electronic Industries Alliance)
ANSI / EIA 748-A Reaffirmed August 2002
ANSI / EIA 748-B approved July 2007
EIA 748-C approved March 2013 (TechAmerica)
EIA 748-D approved 8 January 2019 (SAE International)

AcqLinks and References:

Updated: 2/15/2024

Rank: G2