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  • Question

    Does the absence of guidance allow the contractor to choose how he reports EVM data without program office or DCMA approval/agreement.


    Answer

    EVMS does not prohibit overrun.  As overruns take place on a contract, EVMS requires contractor to correctly identify the variances that result in the overrun with full assessment of their impact and implementation of corrective actions according to the variance thresholds established for the contract.  One of the main purposes for implementing OTB is not to address overruns, but to deal with unrealistic plan for the remaining work.  Given your situation, the contractor would continue to report EVM data with actuals and EV reflecting the overrun with full explanation in CPR or IPMR format 5. 

    You mentioned over the phone that the contractor may not have any budget left to do the remaining work.  This statement troubles me.  Regardless of the amount of overrun, contractor should have a current Performance Measurement Baseline (PMB) that covers entire scope of work.  Therefore, remaining budget should be what it is according to the PMB regardless of any overrun.  As discussed, recommend to work closely with your local DCMA support team to ensure contractor is in full compliant to EVMS requirements. 

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