Overview
FAR 34.201 establishes the requirement for Earned Value Management Systems (EVMS) in major development acquisitions to ensure performance measurement, while providing a framework for compliance plans and reporting requirements.
Key Rules
- Mandatory Application: EVMS is required for major acquisitions for development (per OMB Circular A-11) and other acquisitions as determined by agency procedures.
- Compliance Standard: Systems must comply with the Electronic Industries Alliance Standard 748 (EIA-748).
- Non-Discrimination for Award: Offerors cannot be eliminated from competition solely because their EVMS is not yet compliant, provided they submit a comprehensive plan to achieve compliance.
- Reporting Requirements: Contractors are required to submit EVMS monthly reports as a minimum standard for applicable contracts.
- Subcontractor Flow-down: EVMS requirements must be applied to subcontractors using the same criteria and rules applied to the prime contractor.
- Pre-award Determination: The Contracting Officer is responsible for determining the adequacy of a proposed EVMS plan before the contract is awarded.
Practical Implications
- Contractors bidding on high-value development projects must maintain or be prepared to implement rigorous project management and accounting systems that align with EIA-748.
- The regulation facilitates competition by allowing firms without a pre-validated EVMS to compete, shifting the focus to the feasibility of their compliance plan rather than their current certification status.