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    can a usable EAC be developed when the budgeted period is "as required". does an "as required" POP end date for a contract (CLIN extension beyond the original contract end date has the effect of extending the entire contract) violate any EVM policies/principles? does an "as required" contract end date indicate that a proper EAC could be developed without the presence of a PMB? thank you


    Answer

    There is not enough information in your question to give you definitive answers, but I can point you in the right direction for the issues to allow you to find the answers on your own.
     
    A contract cannot violate EVM Guidelines because the Guidelines relate to how a contractor manages the work contained on the contract not how the contract is structured.  However poorly structured contracts or ones that require EVM for work that cannot be measured well can make using EVM really hard.  They also make surveillance very difficult.  You also have a mix of Contracting, Financial Management, and EVM terms in your question.  I normally see "as required" on tasks where you don't know exactly when or how often they will have to do them like studies or "over and above" repairs--they normally have Time & Materials as their contract type which is excluded from EVM.  The term Period of Performance is associated with the overall contract because there must be a cut-off for billing purposes.  CLINs cannot extend beyond the end of the contract.  CLINs would not have a separate date unless we had work that the Government is not allowing to happen either earlier than or later than a certain date. Your ACO should be able to help you answer questions on the legality of performance dates and he/she should be part of the discussion if you feel there is a problem.
     
    To answer the question on EACs, you need to find out why the Contractor and Government couldn't settle on an end date.  In order to generate an EAC you must be able to isolate how much work still needs to be done.  If a longer POP forces changes to the scope (need another month of maintenance), you do not have a defined scope.  In this case, the EAC would be meaningless because you don't know how much work is left.  Because of your question, I suspect this is the case.  In EVM there is the expectation that when a segment of work takes significantly longer to complete or happens in a time other than when it was originally planned, it will impact other work and potentially the overall end date for the project because the project is complete when all the work is done.  When this is not the case we have what we call Level of Effort (LOE) work.  LOE is one of the six basic methods of measuring the value of work performed within a work-package or control account.  The LOE method is used when the amount of effort required to complete a task cannot be measured. In most cases, the inability to estimate the cost of task is because the task requirements are either ill-defined or very fluid like Program Management.
     
    There are other tasks that are sometimes categorized as level of effort such as sustainment tasks (e.g., help desk support and repair/maintenance).  The difference is that these tasks don't have an end and are dependent on events outside of the Contractor's control such as number of hours the system is used, condition of the item when it is sent in for maintenance/repair, and experience of the computer user.  We might be able to identify gross averages by looking at historical data and proposed usage schedules, but monthly performance using EVM data might be very helpful in terms of understanding how well the Contractor is doing their job.  There is a basic cost to set up a helpdesk, but how many calls we'll get and how long it will take to close out the help tickets can vary drastically from call to call.  If we planned to get 10 calls and only get 1 call, EVM data would say that we are behind schedule. We are ahead of schedule if we get swamped with calls.  However, the task is to help anyone who calls so I've completed the scope for the month--I am neither ahead nor behind, but the EVM data says otherwise. Same thing with repair work -- we don't know exactly how many repairs we will do in a given month or how long the repairs will take.  For these types of tasks, the Earned Value Management Implementation Guide (EVMIG) recommends that we use Performance Based Contracting INSTEAD OF EVM because the variances would not give the Government or the Contractor actionable information to help understand Contractor performance problems.  We would be looking for things like wait time for callers or system availability minimums to tell us if the contractor is performing adequately.
     
    Since you work for DCMA and the questions you have sent into AAP over the past few months have the potential to become Corrective Action Requests, you need to ask these questions up your chain.  The DCMA's EVM Center is the final authority on issuance and closure of CARs and will be the ones brought in if they feel surveillance is not being done properly.  ALL of the facts surrounding the issue must be understood to make a final determination on compliance issues.
     
    The key to answering all of these questions is to understand the intent of the guidelines.  You should use your BCF262 material, to help navigate your way to the answers.



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