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Department of Defense INSTRUCTION

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DoDI 5000.02, January 7,

DoDI 5000.02, January 7, 2015 (4)d. Table 8 summarizes EVM requirements. Paragraph 6c in Enclosure 2 provides an overview of EVM. This paragraph details application requirements and reporting requirements. (1) EVM Application. Table 8 summarizes EVM application requirements. EVM is applied to cost reimbursable or incentive contracts, inclusive of options, with 18 months or greater period of performance and based on the nature of the work scope. Table 8. EVM Application Requirements REQUIREMENTS WHEN REQUIRED 1 SOURCE − Compliance with EVM system guidelines in ANSI/EIA-748 4 − EVM system formally validated and accepted by cognizant contracting officer − Integrated Program Management Report (IPMR) (DI-MGMT-81861 5 ) − Integrated Baseline Reviews For Cost/Incentive Contracts 2 ≥ $50 Million 3 At contract award and throughout contract performance At contract award and throughout contract performance Monthly Within 180 calendar days after contract award, exercise of options, and major modifications Part 7 of Office of Management and Budget (OMB) Circular A-11 (Reference (c)) This instruction − Compliance with EVM system guidelines in ANSI/EIA-748 4 (no formal EVM system validation) − IPMR (DI-MGMT-81861 5 ) (tailoring of formats recommended) − Integrated Baseline Reviews For Cost/Incentive Contracts 2 < $20 Million 3 − IPMR, Format 6 (DI-MGMT-81861 5 ) For Firm Fixed-Price Contracts 2 regardless of dollar value − IPMR, Format 6 (DI-MGMT-81861 5 ) For Cost/Incentive Contracts 2 ≥ $20 Million 3 but < $50 Million 3 At contract award and throughout contract performance Monthly Part 7 of OMB Circular A-11 This instruction Within 180 calendar days after contract award, exercise of options, and major modifications At the discretion of the Program Manager based on cost-benefit analysis Part 7 of OMB Circular A-11 At the discretion of the Program Manager based This instruction on Government requirements Limited Use–will be approved by the MDA based on a business case analysis Part 7 of OMB Circular A-11 At the discretion of the Program Manager based This instruction on Government requirements Notes: 1. EVM is required, as outlined in the table, unless the EVM requirement has been waived by the CAE per paragraph 6c in Enclosure 2. 2. The term, “Contracts,” includes contracts, subcontracts, intra-government work agreements, and other agreements. For Indefinite Delivery/Indefinite Quantity contracts, EVM will be applied to the individual task orders or group of related task orders in accordance with the requirements in this table. “Incentive” contracts include fixed-price incentive. EVM is required for Fixed-Price Incentive Fee development and integration contracts with measurable and discrete work scope. In cases where the work scope is not measurable and discrete, program offices should follow the process to obtain a DFARS deviation. 3. Application thresholds are in then-year dollars. 4. ANSI/EIA-748 = American National Standards Institute (ANSI)/Electronic Industries Alliance (EIA) Standard 748, Earned Value Management Systems (Reference (au)). 5. DI-MGMT-81861 = DID: Integrated Program Management Report (Reference (av)) Change 2, 02/02/2017 80 ENCLOSURE 1

DoDI 5000.02, January 7, 2015 a. If EVM is not required or a deviation is obtained, the IPMR should be used and tailored to obtain cost and/or schedule reporting when desired by the Government. For example, for full rate production contracts where EVM is not applicable, a tailored IPMR including a cost report showing actuals and a top-level schedule providing delivery dates of end products would be sufficient for Government management and oversight. b. Flow-down of the IPMR DID to the subcontractors is at the discretion of the program office. Contract Value Applicability Notes Source < $20M ≥ $20M & < $100M ≥ $100M EVM not required; may be applied at PM discretion based on risk to the Government EVM Required; contractor is required to have an EVM system (EVMS) that complies with the guidelines in EIA-748* EVM Required; contractor is required to have an EVMS that has been determined to be in compliance with the guidelines in EIA-748* Requires business case analysis and MDA approval The Government reserves the right to review a contractor’s EVMS when deemed necessary to verify compliance The Contractor will provide access to all pertinent records and data requested by the Contracting Officer or duly authorized representative as necessary to permit initial and ongoing Government compliance reviews to ensure that the EVMS complies, and continues to comply, with the guidelines in EIA-748*. Part 7 of OMB Circular A-11 (Reference (c)); DFARS 234.201 (Reference (al)); This instruction Additional Information For ACAT ID and IAM programs, OSD USD(AT&L) Performance Assessments and Root Cause Analyses (PARCA), in coordination with the CAE or designee, will review proposed contract work scope for EVM applicability and provide a recommendation to the DAE/MDA for a determination of EVM applicability. For all other ACAT levels, the CAE, or designee, will review and determine EVM applicability. If EVM is determined to apply, then threshold application in this table is utilized or a waiver from the CAE is required. If, based on the nature of the work, EVM is determined not to apply, then EVM is not placed on contract. Applying EVM outside the thresholds and criteria above, to include application on firm, fixed-price (FFP) contracts, FFP task orders, or FFP delivery orders, a cost-benefit analysis will be conducted, MDA approval is required, and the results provided to the contracting officer for documentation in the contract file. The term "contracts” includes contracts, subcontracts, intra-government work agreements, and other agreements. For indefinite delivery, indefinite quantity (IDIQ) contracts, inclusion of EVM requirements is based on the estimated ceiling of the total IDIQ contract, and then is applied to the individual task/delivery orders, or group(s) of related task/delivery orders, that meet or are expected to meet the conditions of contract type, value, duration, and work scope. The EVM requirements should be placed on the base IDIQ contract and applied to the task/delivery orders, or group(s) of related task/delivery orders. “Related” refers to dependent efforts that can be measured and scheduled across task/delivery orders. The Integrated Baseline Review is required when EVM is determined to be applicable. The initiation of an over-target baseline or over-target schedule must be approved by the Government program manager. Application thresholds are in then-year dollars. * EIA-748 = Electronic Industries Alliance (EIA) 748-C (Reference (au)) Change 2, 02/02/2017 81 ENCLOSURE 1