Sign In
  • Question

    What were the EVMS requirements and applicable thresholds prior to 2005? Was an IMS required at all prior to 2005?


    Answer

    The provided information was pulled from the OSD Performance Assessments and Root Cause Analyses (PARCA) website, which owns EVM policy for OSD.  It was found on the attached webpage link (http://www.acq.osd.mil/evm/faqs.shtml#q6) under their FAQs page.
       
    These series of Q&As appear to provide all the information that is requested:
     
    I understand that the DoD EVM policy was revised in March of 2005. What were the major changes?
     
    On March 7, 2005, the Defense Acquisition Executive signed a memorandum approving some relatively significant changes to the Departments longstanding EVM policy. The policy was revised to provide consistency in EVM application and implementation across DoD programs and to better manage the programs through improvements in DoD and industry EVM practices. The revised policy requires that all EVM applications comply with ANSI/EIA-748. It also mandates new EVM application thresholds, which are now in then-year dollars. Other key changes include: improving and renaming the Contract Performance Report (CPR) (previously called the Cost Performance Report); expanding the use of the Integrated Master Schedule (IMS); clarifying the requirement for Integrated Baseline Reviews (IBRs); and eliminating the Cost/Schedule Status Report (C/SSR).
     
    Are the changes to the DoD EVM policy retroactive to existing contracts?
     
    No, the changes to the EVM policy are not retroactive to existing contracts. However, they are effective immediately on new cost or incentive contracts awarded in response to solicitations or requests for proposals issued on or after April 6, 2005 (30 days from the date of the memorandum signed by the Defense Acquisition Executive). While the changes are not retroactive, program managers are not precluded from imposing new or different EVM requirements on existing contracts if the benefits outweigh the costs. Remaining contract duration and estimated costs, as well as other risk factors, should be taken into consideration when determining whether to modify the EVM requirements on existing contracts. In addition, the costs associated with the modifications will be borne by the government.
     
    What impact do the new application thresholds have on determining when the use of EVM is required on DoD contracts?
       
    The old DoD policy required EVM on development contracts over $73 million and procurement and operations and maintenance contracts over $315 million. It also required C/SSRs on contracts over $6.3 million. The March 2005 revisions to the policy raised the lower threshold from $6.3 million to $20 million and lowered the upper threshold from $73 million and $315 million to $50 million (it also eliminated the separate thresholds for development and procurement). Under the new DoD policy, EVM compliance is required on cost or incentive contracts, subcontracts, intra-government work agreements, and other agreements valued at or greater than $20 million. An EVMS that has been formally validated by DCMA and accepted by the cognizant contracting officer is required on cost or incentive contracts, subcontracts, intra-government work agreements, and other agreements valued at or greater than $50 million
     
    The OSD PARCA EVM website has a lot of good information on EVM (especially the policy/procedures) and is an excellent resource to tap.

    Open full Question Details