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    How should companies deal with EPA adjustment in their EV data? EV data doesn't capture them but they do get factored into a Revised Billing Prices. The EPA adjustments make contract performance outcome different than what is report in the IPMR's.


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    Response
    In follow up to our phone conversation of 15 January, you described inclusion of an Economic Price Adjustment (EPA) clause on a Fixed Price Incentive, Firm Target (FPIF) contract with EVM implemented. I would refer you to FAR 52.216.5, Price Redetermination, which provides guidance on submitting Billing Price proposals. Keep in mind that EVM is a management tool only and addresses metrics based on cost only. Other fee, profit or EPA terms of the contract would be applied once an EAC or final projected cost has been determined.


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