Effective immediately, the Earned Value Management System (EVMS) compliance threshold at DFARS 234.201(1)(ii) and DFARS clause 252.234-7002 is raised from $50 million to $100 million. In lieu of DFARS clause 252.234-7002, Earned Value Management System (May 2011), contracting officers shall use the attached DFARS Clause 252.234-7002, Earned Value Management System (DEVIATION)(SEP 2015), in accordance with the current clause prescription at DFARS 234.203(2).
This $100 million threshold applies to cost or incentive contracts and subcontracts for which the contractor is required to have an earned value management system that has been determined by the Cognizant Federal Agency (CFA) to be in compliance with the guidelines in the Electronic Industries Alliance Standard 748, Earned Value Management Systems (EIA-748). For cost or incentive contracts and subcontracts valued greater than $20 million for which EVM will be applied, the contractor is required to utilize an EVMS that complies with the guidelines in the EIA-748 to provide EVM reporting to the program management office. However, no EVMS compliance surveillance activities will be routinely conducted by DCMA on cost or incentive contracts and subcontracts valued from $20 million to $100 million.
Nevertheless, the Government reserves the right to review the EVMS if the EVM reporting data quality appears suspect, e.g., when a contracting officer, program office, buying command, or higher headquarters asks for DCMA assistance due to a concern about the quality of EVM data reported on a given contract, or when the EVM data is not in compliance with one or more of the 32 EIA-748 guidelines.
This class deviation is effective until it is incorporated in the DFARS or is otherwise rescinded.