This class deviation rescinds and supersedes Class Deviation 2015-O0015. Effective immediately, the Earned Value Management System (EVMS) compliance review threshold at DFARS 234.201(1)(ii), DFARS provision 252.234-7001, and DFARS clause 252.234-7002 is raised from $50 million to $100 million. In lieu of DFARS provision 252.234-7001, Notice of Earned Value Management System (APR 2008), and DFARS clause 252.234-7002, Earned Value Management System (MAY 2011), contracting officers shall use the attached DFARS provision 252.234-7001, Notice of Earned Value Management System (DEVIATION 2015-O0017)(SEP 2015), and DFARS Clause 252.234-7002, Earned Value Management System (DEVIATION 2015-O0017)(SEP 2015), in accordance with the current solicitation provision and contract clause prescriptions at DFARS 234.203.
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, the contractor is required to utilize an EVMS that complies with the guidelines in the EIA-748 to provide Earned Value Management (EVM) reporting to the program management office. However, no EVMS compliance surveillance activities will be routinely conducted by the Defense Contract Management Agency (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This class deviation is effective until it is incorporated in the DFARS or is otherwise rescinded.