Earned Value Management

Government EVMS Validation Review

The purpose of the Validation Review is to conduct a formal assessment of a contractor’s proposed EVMS compliance with ANSI/EIA-748.  Successful demonstration of the EVMS and completion of the review results in the validation of the contractor’s EVMS.  The primary objectives of the VR are to: [1]

  • Evaluate management system capabilities against ANSI/EIA-748
  • Assess the description of the management system to determine if it adequately describes the  management processes demonstrated during the review, and
  • Evaluate the application of the management system on the contract being reviewed

Determination of Evaluation
Focus If a contractor’s EVMS used for development efforts differs significantly from that used during production, separate validation evaluations may be required. Simultaneous reviews of the systems used for development and those used for production contracts may be performed or a contractor may implement one system for both types of contracts.  This eliminates the necessity for multiple reviews.

Following the successful demonstration of a development-focused evaluation, the Government may elect to do follow-on reviews, focused on those elements of the EVMS that are unique to production.  In determining to focus a review on development or production the following issues should be considered: [1]

  • If the manufacturing effort in the contract is not true repetitive manufacturing (e.g., model shop work), and there is no major difference from the management system used for the engineering effort and in the way the work is planned and controlled and cost data are collected, then the review can be based on the application of a development system.
  • If the preponderance of discrete effort in the contract is identified as either engineering or manufacturing, then the identification of the review as development or production should be self-evident.
  • If there is little or no manufacturing effort (e.g., contracts for long-lead items, engineering services, or production planning), the contractor can apply either an accepted development or an accepted production system regardless of funding.
  • The type of funding should be considered, but it should not override other considerations.

The VR includes but is not limited to, the following activities: [1]

  • An overview briefing by the contractor to familiarize the review team with the proposed EVMS.  The overview should identify any changes which have occurred since the most recent Progress Assistance Visit (PAV).
  • A review, of the documentation that establishes and records changes to the baseline plan for the contract.  This includes work authorizations, schedules, budgets, resource plans, and change records including management reserve and undistributed budget records. The purpose is to verify that the contractor has established and is maintaining a valid, comprehensive integrated baseline plan for the contract.
  • A review, on a sample basis, of the reporting of cost and schedule performance against the baseline plan, along with appropriate analyses of problems and projection of future costs. Also, a trace is conducted to summarize the cost/schedule performance data from the lowest level of formal reporting (normally the control account level) to the external performance measurement report. The purpose of this activity is to verify the adequacy of the control aspects of the system and the accuracy of the resulting management information.
  • Interviews with a selected sample of Control Account Manager (CAM)s, functional and other work teams, and PMs to verify that the contractor’s EVMS is fully implemented and being used in the management of the contract. An exit briefing covering the team’s findings. During this briefing, any open system discrepancies should be discussed along with the contractor’s corrective action plan, which establishes responsibility and a time frame for corrective action.

Verification Review Results
At the conclusion of the VR, the Review Director is responsible for a written report within 30 working days after the completion of the review. The written report shall be amended to reflect progress against the contractor’s corrective action plan to resolve material discrepancies identified during the VR. System validation is granted to the contractor through the issuance of either an Advance Agreement or a Letter of Acceptance.

AcqLinks and References:

Updated: 6/15/2018

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