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A Framework for Developing Earned Value Management Systems (EVMS) Policy
for Information Technology (IT) Projects

Prepared by the Federal CIO Council

December 5, 2005

Table of Contents

[1. Background 3](#background)

[1.1. Document Purpose 3](#document-purpose)

[1.2. Intended Audience 3](#intended-audience)

[2. Legislation, Policies and Standards
4](#legislation-policies-and-standards)

[2.1. Legislation 4](#legislation)

[2.2. Policies 4](#policies)

[2.3. Standards 4](#standards)

[3. Scope 5](#scope)

[4. Processes 6](#processes)

[4.1. Organization, Planning, Scheduling and Budgeting
6](#organization-planning-scheduling-and-budgeting)

[4.1.1. Program Planning 6](#program-planning)

[4.1.2. Integrated Baseline Reviews 7](#integrated-baseline-reviews)

[4.2. Monitoring, Analysis and Reporting
7](#monitoring-analysis-and-reporting)

[4.2.1. EVM Data Collection 7](#evm-data-collection)

[4.2.2. Reporting and Analysis of EVMS Data
7](#reporting-and-analysis-of-evms-data)

[4.2.3. Integration with Portfolio Management
7](#integration-with-portfolio-management)

[4.2.4 Training 8](#training)

[4.3. Data Management and Control 8](#data-management-and-control)

[4.3.1. Baseline Change Control Process
8](#baseline-change-control-process)

[4.3.2. Corrective Action Plans 8](#corrective-action-plans)

[4.3.3. Compliance Reviews 8](#compliance-reviews)

[4.3.4. Surveillance Reviews 9](#surveillance-reviews)

[4.4. Templates and Tools 9](#templates-and-tools)

[4.5. Integration of EVMS with Acquisition Processes
9](#integration-of-evms-with-acquisition-processes)

[5. Stakeholders/Roles and Responsibilities
10](#stakeholdersroles-and-responsibilities)

[6. Glossary 11](#glossary)

[7. Appendix A: ANSI/EIA 748 Guidelines
12](#appendix-a-ansieia-748-guidelines)

[8. Appendix B: FAR Modifications on EVMS
15](#appendix-b-far-modifications-on-evms)

# Background

Earned Value Management (EVM) is a project management control tool
allowing visibility into technical, cost and schedule planning,
performance and progress for major IT projects. EVM not only encourages
contractors to use effective internal cost and schedule management
control systems, but also provides the manager with timely and
consistent cost, schedule and progress data. The implementation of an
Earned Value Management System (EVMS) ensures that cost, schedule, and
technical aspects of the contract are truly integrated and estimated,
and actual progress of the project can be identified. OMB requires the
use of an EVMS compliant with the guidelines in ANSI/EIA Standard 748
for all major IT investments with development work.

## Document Purpose

The purpose of this document is to demonstrate a model EVMS framework
for the development of agency EVM policy. It is not intended to be
all-inclusive, but rather to provide key components as determined
through review of existing EVM policies, to assist agencies in
developing their EVM policies as required by OMB Memorandum M-05-23. Per
OMB Memorandum M-05-23, agencies are to develop such policies no later
than December 31, 2005.

## Intended Audience

The intended audience for this document is agency staff responsible for
development of agency EVM policy.

# Legislation, Policies and Standards

The agency EVM policy should provide references to legislation, policy
and standards pertaining to EVM. Agency EVM policy should consider the
following:

## Legislation

Relevant legislation includes:

-   *Government Performance and Results Act of 1993 --* Mandates the use
    of performance metrics.

-   *Federal Acquisition Streamlining Act of 1994 --* Requires agency
    heads to achieve, on average, 90% of the cost and schedule goals
    established for major and non-major acquisition programs of the
    agency without reducing the performance or capabilities of the items
    being acquired.

-   *Clinger-Cohen Act of 1996* -- Requires establishment of the
    processes for executive agencies to analyze, track, and evaluate the
    risks and results of major investments in IT and requires reporting
    on the net program performance benefits achieved by agencies.

## Policies

Relevant policy includes:

-   *OMB Circular A-11 (Part 7, Planning, Budgeting, Acquisition &
    Management of Capital Asset) --* Outlines a systematic process for
    program management, which includes integration of program scope,
    schedule, and cost objective; requires use of earned value
    techniques for performance measurement during execution of the
    program; specifically identifies ANSI/EIA Standard 748.

-   *OMB Memorandum M-04-24, "Expanded Electronic Government (E-Gov)
    President's Management Agenda (PMA) Scorecard Cost, Schedule and
    Performance Standards for Success --* Provides additional
    information on the President's Management Agenda (PMA) Expanded
    Electronic Government initiative and the standard for success
    concerning cost, schedule and performance goals.

-   *OMB Memorandum M-05-23, "Improving Information Technology (IT)
    Project Planning and Execution" --* Provides guidance to assist
    agencies in monitoring and improving project planning and execution
    and fully implementing EVMS for major IT projects.

## Standards

Relevant standards include:

-   *American National Standards Institute/Electronic Industries
    Association (ANSI/EIA) Earned Value Management System (EVMS)
    Standard 748-1998* -- Industry process for use of EVMS including
    integration of program scope, schedule and cost objectives,
    establishment of a baseline plan for accomplishment of program
    objectives, and use of earned value techniques for performance
    measurement during the execution of a program.

# Scope 

Agency EVM policy should define the criteria to determine projects for
which EVMS applies. Criteria should be consistent with OMB Circular A-11
and other relevant legislation, policies, and standards as outlined
above.

OMB Circular A-11 defines a "major acquisition/investment" to mean a
system or project requiring special management attention because of its
importance to the mission or function of the agency, a component of the
agency or another organization; is for financial management and
obligates more than \$500,000 annually; has significant program or
policy implications; has high executive visibility; has high
development, operating, or maintenance costs; or is defined as major by
the agency's capital planning and investment control process. OMB may
work with the agency to declare other investments as major investments.
Agencies may add additional criteria for defining projects as "major".

Per OMB Circular A-11, EVMS is required for those parts of the major
investment where developmental effort is required. EVMS is to be applied
to both Government and contractor efforts. For operational/steady state
systems, an operational analysis system as discussed in Phase IV of the
Capital Programming Guide is required. A performance-based service
contract/agreement with a defined quality assurance plan should be the
basis for monitoring contractor or in-house performance of this phase.

Furthermore, agencies may identify additional criteria for defining
projects to which EVMS is required. Such a classification can be based
on criteria including:

-   Level of management visibility

-   Level of development/modernization/enhancement (DME) funding

-   Duration of development phase

-   Level of risk

If compliance with EVMS guidelines is not required, consider whether
tailored products and processes that are EVMS-based should be employed.
With tailoring, the objective remains effective management control of
contract performance risk and to obtain early indicators of expected
cost, performance, and schedule results.

# Processes

The agency EVM policy should provide details regarding agency processes
to implement and use EVM to plan and manage IT investments. The policy
should give consideration to both federal staff and contractor
resources.

ANSI/EIA Standard 748 provides an overall structure for an integrated
cost/schedule/performance measurement system. The structure consists of
32 criteria organized into five high-level categories:

-   Organization,

-   Planning, Scheduling and Budgeting,

-   Accounting Considerations,

-   Analysis and Management Reports, and

-   Revisions and Data Maintenance.

Agency EVM policy should be consistent with these categories and
criteria. Please refer to Appendix A for the full list of ANSI/EIA
Standard 748 criteria. The following sections provide a framework for
agencies to use in developing the processes for the implementation and
use of EVM. The sections are aligned to the five high-level categories
outlined in ANSI/EIA Standard 748.

## Organization, Planning, Scheduling and Budgeting

This section addresses the categories of the ANSI/EIA Standard 748,
'Organization' and 'Planning, Scheduling and Budgeting'.

### Program Planning

Agency EVM policy should provide guidelines and schedule for the initial
project planning using an EVMS. The agency EVM policy should consider
the development of the following:

-   **Work Breakdown Structure (WBS)** -- a task oriented detailed
    breakdown, which defines the work packages and tasks at a level
    above that defined in the networks and schedules.

-   **Organizational Breakdown Structure (OBS)** -- a functionally
    oriented division of the contractor's organization established to
    perform the work on a specific contract.

-   **Responsibility Assignment Matrix (RAM)** -- correlates the work
    required by a Contract Work Breakdown Structure element to the
    functional organization responsible for accomplishing the assigned
    tasks.

-   **Performance Measurement Baseline (PMB)** -- the time-phased budget
    plan against which project performance is measured. Assessment of
    the PMB is conducted through Integrated Baseline Reviews (IBRs).

Agency EVM policy should indicate a timeline for development of the
above items, roles and responsibilities of resources involved (e.g.,
content developers, reviewers), and templates and tools utilized.

### Integrated Baseline Reviews 

Per OMB Memorandum M-05-23, agency EVM policy should address the use of
Integrated Baseline Reviews (IBR) to finalize the cost, schedule and
performance goals. An IBR is an assessment of the PMB to ensure the
adequacy, accuracy and risks of the PMB. The agency EVM policy should
include a schedule, process and participants for conducting IBRs.

## Monitoring, Analysis and Reporting

This section addresses the ANSI/EIA Standard 748 categories, 'Accounting
Considerations' and 'Analysis and Management Reports'.

### EVM Data Collection

The agency EVM policy should outline a systematic way to collect data
necessary to support EVM. The agency EVM policy should describe any
templates, tools, and systems utilized and additionally provide controls
to ensure the data is collected consistently and reliably to inform
management decisions. The agency EVM policy should detail any systems
used to track data and the process for tracking actual costs at the
control account level.

The agency EVM policy should additionally address collection of data
from both government and contractor resources.

### Reporting and Analysis of EVMS Data

The agency EVM policy should indicate the process and procedures used to
review the EVM data collected to support the identification of
performance issues. Furthermore, the agency policy should address the
process for resolution of performance issues -- and include details
regarding escalation procedures.

Specifically, agency EVM policy should outline:

-   Standard reports (layouts, templates, schedules)

-   Exception reporting (e.g., Variance Analysis Report required if
    cost/schedule variance exceeds an acceptable threshold)

-   Contractor reporting requirements (including reporting layouts and
    templates)

-   Review schedule (to include review purpose, inputs/outputs,
    activities, and participants)

-   Escalation procedures if acceptable thresholds are exceeded (e.g.,
    CIO notified if cost/schedule variance exceeds X%)

-   Requirements for development of Corrective Action Plans (See Section
    4.8.2)

### Integration with Portfolio Management

In accordance with OMB Memorandum M-04-24, agency EVM policy should
address the use of EVMS data and analysis to make management and IT
portfolio management and Capital Planning and Investment Control (CPIC)
decisions (i.e., how and when is performance data received by the
agency; who reviews it; is further analysis done; does the agency use a
tool to manage the data reported; how is performance information
reported to senior management; and what they do with the information).

### Training

Agency EVM policy should outline guidelines on training for program
office staff and contractor personnel on the analysis of generated
earned value data. Suggestions for training include: formal training
classes; contractor-sponsored training; on-the-job training; and
training materials available on performance management websites.

## Data Management and Control

This section addresses the category consistent with ANSI/EIA Standard
748, 'Revisions and Data Maintenance'.

### Baseline Change Control Process

Agency EVM policy should provide details regarding the baseline change
control process and baseline control guidelines. The policy should
include processes to document revisions and authorize changes.

### Corrective Action Plans

Major investments with a variance outside of established thresholds for
cost or schedule should develop Corrective Action Plans. Such plans
provide strategies to correct deficiencies and to improve investment
performance. The agency EVM policy should outline required components of
Corrective Action Plans as well as agency resources responsibilities for
the development and review of Corrective Action Plans.

### Compliance Reviews

Per OMB Memorandum M-05-23, full implementation of an EVMS for IT
projects includes compliance reviews of agency and contractor EVM
systems. The agency EVM policy should address the compliance review
process, including at a minimum:

-   Schedule and criteria for conducting compliance reviews

-   Required documentation

-   Activities to be performed

-   Participants -- with specifics regarding roles and responsibilities

-   Process for corrective actions (including impacts to the
    acquisitions process)

-   Reporting of findings

-   Criteria for success

### Surveillance Reviews

Per OMB Memorandum M-05-23, agencies are required to periodically review
the agency or contractor to ensure it continues to meet ANSI/EIA
Standard 748. Agency EVM policy should address the surveillance review
process, including at minimum:

-   Schedule and criteria for conducting surveillance reviews

-   Required documentation

-   Activities to be performed

-   Participants -- with specifics regarding roles and responsibilities

-   Impacts to acquisition process (i.e., contracts considerations)

-   Reporting of findings

-   Criteria for success

## Templates and Tools

Templates and tools are not a substitute for the establishment and
adherence to EVMS processes but can be used to assist in the management
and reporting of EVMS data. The agency EVM policy should address the
development and review of any templates and specify all agency tools
used to collect, manage, and report on EVMS data.

## Integration of EVMS with Acquisition Processes

The agency EVM policy should provide details regarding agency procedures
to include EVMS requirements in contracts and agency in-house Project
Charters. Per OMB Memorandums M-04-24 and M-05-23, agencies are required
to include a provision and clause in major acquisition contracts and/or
project charters (for in-house projects) directing the use of an EVMS
compliant with the guidelines in ANSI/EIA Standard 748 to ensure the
earned value data and analysis used to measure and report work progress
on these investments are produced by an EVMS that meets the guidelines
in ANSI/EIA Standard 748. The agency EVM policy should include sample
contract language, project charter language, key points of contact in
the acquisition office, and review processes to ensure compliance. For
additional information, please refer to Appendix B (proposed Federal
Acquisition Regulation modifications on EVMS).

# Stakeholders/Roles and Responsibilities

The agency EVM policy should provide roles/responsibilities for all
stakeholders involving in the implementation and use of EVM.
Stakeholders should include government and non-government (e.g.,
contractors). Potential stakeholders include: Office of the Chief
Information Officer, Office of the chief Financial Officer, IT
Investment Review Boards, Project Managers, Procurement officials, etc.

# Glossary

The agency EVM policy should contain a glossary of common EVMS
terminology to ensure a common understanding.

# Appendix A: ANSI/EIA 748 Guidelines

The following is from the *American National Standards
Institute/Electronic Industries Alliance Standard 748-98, Earned Value
Management Standards*, May 1998.

**Organization**

1.  Define the authorized work elements for the program. A work
    breakdown structure (WBS), tailored for effective internal
    management control, is commonly used in this process.

2.  Identify the program organizational structure including the major
    subcontractors responsible for accomplishing the authorized work,
    and define the organizational elements in which work will be planned
    and controlled.

3.  Provide for the integration of the company\'s planning, scheduling,
    budgeting, work authorization and cost accumulation processes with
    each other, and as appropriate, the program work breakdown structure
    and the program organizational structure.

4.  Identify the company organization or function responsible for
    controlling overhead (indirect costs).

5.  Provide for integration of the program work breakdown structure and
    the program organizational structure in a manner that permits cost
    and schedule performance measurement by elements of either or both
    structures as needed.

**Planning, Scheduling and Budgeting**

6.  Schedule the authorized work in a manner which describes the
    sequence of work and identifies significant task interdependencies
    required to meet the requirements of the program.

7.  Identify physical products, milestones, technical performance goals,
    or other indicators that will be used to measure progress.

8.  Establish and maintain a time-phased budget baseline, at the control
    account level, against which program performance can be measured.
    Initial budgets established for performance measurement will be
    based on either internal management goals or the external customer
    negotiated target cost including estimates for authorized but
    undefinitized work. Budget for far-term efforts may be held in
    higher level accounts until an appropriate time for allocation at
    the control account level. On government contracts, if an over
    target baseline is used for performance measurement reporting
    purposes; prior notification must be provided to the customer.

9.  Establish budgets for authorized work with identification of
    significant cost elements (labor, material, etc.) as needed for
    internal management and for control of subcontractors.

10. To the extent it is practicable to identify the authorized work in
    discrete work packages, establish budgets for this work in terms of
    dollars, hours, or other measurable units. Where the entire control
    account is not subdivided into work packages, identify the far term
    effort in larger planning packages for budget and scheduling
    purposes.

11. Provide that the sum of all work package budgets plus planning
    package budgets within a control account equals the control account
    budget.

12. Identify and control level of effort activity by time-phased budgets
    established for this purpose. Only that effort which is unmeasurable
    or for which measurement is impractical may be classified as level
    of effort.

13. Establish overhead budgets for each significant organizational
    component of the company for expenses which will become indirect
    costs. Reflect in the program budgets, at the appropriate level, the
    amounts in overhead pools that are planned to be allocated to the
    program as indirect costs.

14. Identify management reserves and undistributed budget.

15. Provide that the program target cost goal is reconciled with the sum
    of all internal program budgets and management reserves.

**Accounting Considerations**

16. Record direct costs in a manner consistent with the budgets in a
    formal system controlled by the general books of account.

17. When a work breakdown structure is used, summarize direct costs from
    control accounts into the work breakdown structure without
    allocation of a single control account to two or more work breakdown
    structure elements.

18. Summarize direct costs from the control accounts into the
    contractor\'s organizational elements without allocation of a single
    control account to two or more organizational elements.

19. Record all indirect costs which will be allocated to the contract.

20. Identify unit costs, equivalent units costs, or lot costs when
    needed.

21. For EVMS, the material accounting system will provide for:

    -   Accurate cost accumulation and assignment of costs to control
        accounts in a manner consistent with the budgets using
        recognized, acceptable, costing techniques.

    -   Cost performance measurement at the point in time most suitable
        for the category of material involved, but no earlier than the
        time of progress payments or actual receipt of material.

    -   Full accountability of all material purchased for the program
        including the residual inventory.

**Analysis and Management Reports**

22. At least on a monthly basis, generate the following information at
    the control account and other levels as necessary for management
    control using actual cost data from, or reconcilable with, the
    accounting system:

    -   Comparison of the amount of planned budget and the amount of
        budget earned for work accomplished. This comparison provides
        the schedule variance.

    -   Comparison of the amount of the budget earned the actual
        (applied where appropriate) direct costs for the same work. This
        comparison provides the cost variance.

23. Identify, at least monthly, the significant differences between both
    planned and actual schedule performance and planned and actual cost
    performance, and provide the reasons for the variances in the detail
    needed by program management.

24. Identify budgeted and applied (or actual) indirect costs at the
    level and frequency needed by management for effective control,
    along with the reasons for any significant variances.

25. Summarize the data elements and associated variances through the
    program organization and/or work breakdown structure to support
    management needs and any customer reporting specified in the
    contract.

26. Implement managerial actions taken as the result of earned value
    information.

27. Develop revised estimates of cost at completion based on performance
    to date, commitment values for material, and estimates of future
    conditions. Compare this information with the performance
    measurement baseline to identify variances at completion important
    to company management and any applicable customer reporting
    requirements including statements of funding requirements.

**Revisions and Data Maintenance**

28. Incorporate authorized changes in a timely manner, recording the
    effects of such changes in budgets and schedules. In the directed
    effort prior to negotiation of a change, base such revisions on the
    amount estimated and budgeted to the program organizations.

29. Reconcile current budgets to prior budgets in terms of changes to
    the authorized work and internal replanning in the detail needed by
    management for effective control.

30. Control retroactive changes to records pertaining to work performed
    that would change previously reported amounts for actual costs,
    earned value, or budgets. Adjustments should be made only for
    correction of errors, routine accounting adjustments, effects of
    customer or management directed changes, or to improve the baseline
    integrity and accuracy of performance measurement data.

31. Prevent revisions to the program budget except for authorized
    changes.

32. Document changes to the performance measurement baseline.

# Appendix B: FAR Modifications on EVMS

The following is from FAR Case 2004-019, *Federal Acquisition Regulation
Earned Value Management System (EVMS)*, Federal Register, Volume 70,
Number 67, April 8, 2005.

34.X03 Solicitation provisions and contract clause.

\(a\) The contracting officer shall insert a provision that is
substantially the same as the provision at 52.234-X1, Notice of Earned
Value Management System, in solicitations for contracts that require the
contractor to use an earned value management system (EVMS) and for which
the Government may require an Integrated Baseline Review (IBR) after
contract award. When an offeror is required to provide an EVMS plan as
part of its proposal, the contracting officer shall forward a copy of
the plan to the cognizant Administrative Contracting Officer (ACO) or
responsible Federal department or agency and obtain their assistance in
determining the adequacy of the proposed EVMS plan.

\(b\) The contracting officer shall insert a provision that is
substantially the same as the provision at 52.234-X2, Notice of Earned
Value Management System-Pre-Award IBR, in solicitations for contracts
that require the contractor to use an EVMS and for which the Government
will require an IBR prior to contract award. When an offeror is required
to provide an EVMS plan as part of its proposal, the contracting officer
shall forward a copy of the plan to the cognizant ACO or responsible
Federal department or agency and obtain their assistance in determining
the adequacy of the proposed EVMS plan.

\(c\) The contracting officer shall insert a clause that is
substantially the same as the clause at 52.234-X3, Earned Value
Management System, in solicitations and contracts that require a
contractor to use an earned value management system (EVMS).

PART 52\--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

8\. Add sections 52.234-X1, 52.234-X2, and 52.234-X3 to read as follows:

52.234-X1 Notice of Earned Value Management System.

As prescribed in 34.X03(a) use the following provision:

Notice of Earned Value Management System (Date)

\(a\) The offeror shall provide documentation that the cognizant
Administrative Contracting Officer (ACO) or a Federal department or
agency has recognized that the proposed earned value management system
(EVMS) complies with the EVMS guidelines in ANSI/EIA Standard-748
(current version at time of solicitation).

\(b\) If the offeror proposes to use a system that does not meet the
requirements of paragraph (a) of this provision, the offeror shall
submit a comprehensive plan for compliance with the EVMS guidelines.

\(1\) The plan shall\--

\(i\) Describe the EVMS the offeror intends to use in performance of the
contracts;

\(ii\) Distinguish between the offeror\'s existing management system and
modifications proposed to meet the guidelines;

\(iii\) Describe the management system and its application in terms of
the EVMS guidelines;

\(iv\) Describe the proposed procedure for administration of the
guidelines, as applied to subcontractors; and

\(v\) Provide documentation describing the process and results of any
third-party or self-evaluation of the system\'s compliance with the EVMS
guidelines.

\(2\) The offeror shall provide information and assistance as required
by the Contracting Officer to support review of the plan.

\(3\) The Government will review the offeror\'s plan for EVMS before
contract award.

\(c\) Offerors shall identify the major subcontractors, or major
subcontracted effort if major subcontractors have not been selected,
planned for application of the guidelines. The prime Contractor and the
Government shall agree to subcontractors selected for application of the
EVMS guidelines.

(End of provision)

52.234-X2 Notice of Earned Value Management System\--Pre-Award IBR.

As prescribed in 34.X03(b), use the following provision:

Notice of Earned Value Management System, Pre-Award IBR (Date)

\(a\) The offeror shall provide documentation that the cognizant
Administrative Contracting Officer (ACO) or a Federal department or
agency has recognized that the proposed earned value management system
(EVMS) complies with the EVMS guidelines in ANSI/EIA Standard-748
(current version at time of solicitation).

\(b\) If the offeror proposes to use a system that does not meet the
requirements of paragraph (a) of this provision, the offeror shall
submit a comprehensive plan for compliance with the EVMS

guidelines.

\(1\) The plan shall\--

\(i\) Describe the EVMS the offeror intends to use in performance of the
contracts;

\(ii\) Distinguish between the offeror\'s existing management system and
modifications proposed to meet the guidelines;

\(iii\) Describe the management system and its application in terms of
the EVMS guidelines;

\(iv\) Describe the proposed procedure for administration of the
guidelines, as applied to subcontractors; and

\(v\) Provide documentation describing the process and results of any
third-party or self-evaluation of the system\'s compliance with the EVMS
guidelines.

\(2\) The offeror shall provide information and assistance as required
by the Contracting Officer to support review of the plan.

\(3\) The Government will review and approve the offeror\'s plan for
EVMS before contract award.

\(c\) Offerors shall identify the major subcontractors, or major
subcontracted effort if major subcontractors have not been selected
subject to the guidelines. The prime Contractor and the Government shall
agree to subcontractors selected for application of the EVMS guidelines.

\(d\) The Government will conduct an Integrated Baseline Review (IBR),
as designated by the agency, prior to contract award. The objective of
the IBR is for the Government and the Contractor to jointly assess
technical areas, such as the Contractor\'s planning, to ensure complete
coverage of the contract requirements, logical scheduling of the work
activities, adequate resources, methodologies for earned value (budgeted
cost for work performed (BCWP)), and

identification of inherent risks.

(End of provision)

52.234-X3 Earned Value Management System.

As prescribed in 34.X03(c), insert the following clause:

Earned Value Management System (Date)

\(a\) In the performance of this contract the Contractor shall use an
earned value management system (EVMS) to manage the contract that at the
time of contract award has been recognized by the cognizant
Administrative Contracting Officer (ACO) or a Federal department or
agency as compliant with the guidelines in ANSI/EIA Standard-748
(current version at time of award) and the Contractor will submit
reports in accordance with the requirements of this contract.

\(b\) If, at the time of award, the Contractor\'s EVMS has not been
recognized by the cognizant ACO or a Federal department or agency as
complying with EVMS guidelines (or the Contractor does not have an
existing cost/schedule control system that is

\[\[Page 17949\]\]

compliant with the guidelines in ANSI/EIA Standard-748 (current version
at time of award)), the Contractor shall apply the system to the
contract and shall be prepared to demonstrate to the ACO that the EVMS
complies with the EVMS guidelines referenced in paragraph

\(a\) of this clause.

\(c\) Agencies may conduct Integrated Baseline Reviews (IBR). If a
pre-award IBR has not been conducted, such a review shall be scheduled
as early as practicable after contract award, but not later than 180
days after award. The Contracting Officer may also require an IBR at (1)
exercise of significant options or (2) incorporation of major
modifications. Such reviews will normally be scheduled before award of
the contract action.

\(d\) Unless a waiver is granted by the ACO or Federal department or
agency, Contractor proposed EVMS changes require approval of the ACO or
Federal department or agency, prior to implementation. The ACO or
Federal department or agency, shall advise the Contractor of the
acceptability of such changes within 30 calendar days after receipt of
the notice of proposed changes from the Contractor. If the advance
approval requirements are waived by the ACO or Federal department or
agency, the Contractor shall disclose EVMS changes to the ACO or Federal
department or agency at least 14 calendar days prior to the effective
date of implementation.

\(e\) The Contractor agrees to provide access to all pertinent records
and data requested by the Contracting Officer or a duly authorized
representative. Access is to permit Government surveillance to ensure
that the EVMS conforms, and continues to conform, with the performance
criteria referenced in paragraph (a) of this clause.

\(f\) The Contractor shall require the subcontractors specified below to
comply with the requirements of this clause: \[Insert list of applicable
subcontractors.\]

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(End of clause)

\[FR Doc. 05-6864 Filed 4-7-05; 8:45 am\]