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    Does the EVM clause apply to the IDIQ contract vehicle as a whole (i.e., EVM applies to orders under $20 million if all orders added together exceed $20 million) or does it apply to each cost-type delivery order separately (i.e., each separate delivery order that exceeds $20 million)?


    Answer

    Attached below, see the DFARS clause 252.234-7002 prescription at DFARS 234.

    234.203 Solicitation provisions and contract clause.
    For cost or incentive contracts valued at $20,000,000 or more, and for other contracts for which EVMS will be applied in accordance with 234.201(1)(iii) and (iv)—
    (1) Use the provision at 252.234-7001, Notice of Earned Value Management System, instead of the provisions at FAR 52.234-2, Notice of Earned Value Management System – Pre-Award IBR, and FAR 52.234-3, Notice of Earned Value Management System – Post-Award IBR, in the solicitation; and
    (2) Use the clause at 252.234-7002, Earned Value Management System, instead of the clause at FAR 52.234-4, Earned Value Management System, in the solicitation and contract.
     
    234.201  Policy.
      (1)  DoD applies the earned value management system requirement as follows: 
      (i)  For cost or incentive contracts and subcontracts valued at $20,000,000 or more, the earned value management system shall comply with the guidelines in the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748).
      (ii)  For cost or incentive contracts and subcontracts valued at $50,000,000 or more, the contractor shall have an earned value management system that has been determined by the cognizant Federal agency to be in compliance with the guidelines in ANSI/EIA-748.
      (iii)  For cost or incentive contracts and subcontracts valued at less than $20,000,000—
      (A)  The application of earned value management is optional and is a risk-based decision;
      (B)  A decision to apply earned value management shall be documented in the contract file; and
      (C)  Follow the procedures at PGI 234.201(1)(iii) (DFARS/PGI view) for conducting a cost-benefit analysis.
      (iv)  For firm-fixed-price contracts and subcontracts of any dollar value—
      (A)  The application of earned value management is discouraged; and
      (B)  Follow the procedures at PGI 234.201(1)(iv) (DFARS/PGI view) for obtaining a waiver before applying earned value management.

    You will need to determine if the clause applies to your specific acquisition.


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