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  • Question

    Even though the FAR and DFARS requires Earned Value Management reporting procedures for Cost Type CLINS over $20 million, if the contracting agency believes that these procedures are not needed due to the type of work, can you remove the EVM procedures and if so do you need a Waiver?


    Answer

    First, the time for a waiver would have been before contract negotiations and award.  Taking an EVM requirement off of a contract usually doesn't result in the cost savings you would expect.  (Contractor should have raised this issue before contract award)  You also need to consider whether you are going to delete the requirement for the "Integrated Master Schedule (IMS)", as well as the CPR reports.  Any time EVM reporting is required, an IMS is also required.
     
    EVM is not recommended for: (1) short duration efforts (< 12 months), (2) level of effort (e.g., engineering services), (3) Fixed Price contracts, or (4) time and materials type efforts (e.g., maintenance contracts on aircraft).  When work cannot be forecast and planned in advance, then the usefulness of EVM data is minimal.
     
    Be aware that two of the Primary EVM "AT&L Trip Wire" Metrics reported thru the chain of command are: (1) Is the EVM system validated by DCMA?, and (2) Was an Integrated Baseline Review (IBR) conducted within 6 months of contract award.  Your decision to remove EVM reporting from the contract should be approved by your chain of command and communicated to AT&L.
     
    Last, consider what information you will receive to manage the contract in lieu of EVM and/or schedules.  What metrics will be used to manage, and will this data become the deliverable item on the contract.  Adding a different data deliverable (CDRL) will offset the cost savings of deleting the EVM reporting.  How would you "still receive the level of insight into the costs", since EVM is the most detailed program mgt tool available?
     

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