Can we have EV on a FFP CLIN?
You cannot request EVM data on FFP contracts unless you have a waiver from your MDA. Since you are talking about a CLIN, it doesn't flag for MDA approval. If FFP is the right contract type, there is little or no risk to manage so why would you get EVM data? EVM reporting does not have to be applied to the entire contract if we have mixed contract types within the CLINs--only add up the ones that are cost or incentive in nature and have measurable work
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products. That total value would tell you the degree to which EVM must be applied. The fact that upper management is thinking about making you an MDAP must mean there is something they are worried about so you might need to re-evaluate using FFP.
The bigger question is why you're getting EVM for a sustainment effort. If you are truly doing sustainment work (i.e., maintenance or sustaining engineering), EVM is not recommended. Performance based contracting is a better mechanism for ensuring performance. The reason for this is that the contractor does not control how the warfighter uses weapon systems or when they send them in for maintenance, so any baseline developed is just a guess based on planned OPTEMPO. If the OPTEMPO slows or an item is not sent in for repair when it is scheduled, the contractor will show a negative cost and schedule variances that are based on government non-performance not contractor non-performance. Why? The contractor has staff ready because they had planned to perform a certain maintenance activity, but work didn't happen because the contractor doesn't have the item to repair. What we really want is to have a certain turn-around time or to maintain a certain system availability. The contractor does control how they size their workforce and how they deal with surges which can be rewarded or penalized with performance based contracts.
Since you mention that you might become an MDAP again, you need to look at the work that might push you back into the investment part of the life cycle. If you were not fully in sustainment and this work were being asked for, would
you be using O&M funds or another appropriation? Once again getting to the nature of the work.
So do you get any benefit to asking for EVM data in anticipation of being declared an MDAP? Not all MDAPs are required to get EVM data. Programs in full production with FFP contracts would not get EVM data. So we're back to
the questions--what risks do you anticipate for this contract and is EVM the right way to help mitigate those risks? If you have enough risk on measureable work to allow you to get EVM data, getting the data up front will require the contractor to at least get the basic accounting mechanisms in place. But doesn't mean the contractor won't ask for additional funds to related to EVM if the nature of the work changes significantly.