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    Based on the scenario above, does the basic contract, or any of the anticipated delivery orders need to have the 252.242-7005 clause incorporated? In addition should this contract have the EVMS clause incorporated as well?


    Answer

    The following answer is based solely on the background question provided as we do not have all of the facts pertaining to your particular situation.
     
    In determining whether to include DFARS Clause 252.242-7005 in the contract,
    we read the clause and look at the prescriptive language at DFARS 242.7001.
     
    It states at 242.7001 Contract clause,
     Use the clause at 252.242-7005, Contractor Business Systems, in
    solicitations and contracts (other than in contracts with educational institutions, Federally Funded Research and Development Centers (FFRDCs), or University Associated Research Centers (UARCs) operated by educational institutions) when-
      (a)  The resulting contract will be a covered contract as defined in 242.7000(a); and
      (b)  The solicitation or contract includes any of the following clauses:
      (1)  252.215-7002, Cost Estimating System Requirements.
      (2)  252.234-7002, Earned Value Management System.
      (3)  252.242-7004, Material Management and Accounting System.
      (4)  252.242-7006, Accounting System Administration.
      (5)  252.244-7001, Contractor Purchasing System Administration.
      (6)  252.245-7003, Contractor Property Management System Administration.
     
    Determining if this is a covered contract as defined in 242.7000(a) takes us to the FAR Appendix B.  At 9903.201-1, CAS applicability it identifies exemptions to the requirement for CAS.  As stated in your scenario, this contract nor the contractor meet any of the listed exemptions, so it is a CAS covered contract. It also states at 242.7001 that if the contact is CAS covered AND (emphasis ours) any of the following clauses is in the contract,
    and then DFARS Clause 252.242-7005 should be included in the contract.  Your scenario indicates that two of the above clauses are part of the contract.  Given that,  DFARS Clause 252.242-7005 should be included in the contract.
     
    Your second question asked about inclusion of DFARS Clause 252.234-7002, Earned Value Management System.  Applying EVM to the program is primarily a program manager decision.  You can find guidance on the subject in the DCMA Guidebook, DoDI 5000.02, and the DoD Earned Value Management Implementation Guide.  In the DoD Earned Value Management Implementation Guide at 2.2.2.2, Program Manager Responsibilities; it states the PM is to follow policy in requiring use of Earned Value Management (EVM) and Integrated Management Schedule (IMS).  It goes on to state at 2.2.3.4.3, Non-Schedule Based Contracts; that those contracts include Indefinite Delivery/Indefinite Quantity (ID/IQ) or task order type contracts.
     
    Based on the information in your scenario and the information researched in the FAR, DFARS, and DoD guides, you would include DFARS Clause 252.242-7005,
     but do not need to add DFARS Clause 252.234-7002. 

     

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