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Federal Earned Value Management Rule Finalized
The new rule requires agencies to use a compliant earned value management system on major acquisition contracts.
The Civilian Agency Acquisition and the Defense Acquisition Regulations councils have finalized an April 2005 draft to standardize the use of earned value management systems (EVMS) for agencies managing major acquisitions. The rule was incorporated into the Federal Acquisition Regulation on July 5, 2006.
Though each agency will define “major” acquisition, the councils estimated that an ANSI 748-compliant EVMS will be needed for projects that cost more than $20 million. For smaller acquisitions, agencies will determine applicability. However, EVMS will be required on major developmental contracts regardless of cost.
Ray Stratton, PMP, EVP, president of Management Technologies and a long-time member of the Projects@Work editorial board, reviewed the final rule and noted other key points, including:
> An Integrated Baseline Review (IBR) is required whenever EVM is required.
> EVM is equally applicable to contractors and subcontractors.
> Potential contractors without an EVMS may propose their plan to achieve an EVMS as part of their proposals. No potential contractor is precluded from submitting a proposal. Contracting officers will determine the validity of proposed EVMS implementation plans.
> EVM is equally applicable to contractors and subcontractors.
> Potential contractors without an EVMS may propose their plan to achieve an EVMS as part of their proposals. No potential contractor is precluded from submitting a proposal. Contracting officers will determine the validity of proposed EVMS implementation plans.
> Changes to an established EVMS require notification …
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