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                            334.201   Policy.
        
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HHSARPart Number: 334
        
                  

                                
                  
        Health and Human Services Acquisition Regulation
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334.201 Policy.       The Department of Health and Human Services applies the earned value management system requirement as follows:          (a) For cost or incentive contracts and subcontracts valued at $20 million or more, the contractor's earned value management system shall comply with the guidelines in the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748).          (b) For cost or incentive contracts and subcontracts valued at $50 million or more, the contractor shall have an earned value management system that has been determined by the cognizant Federal agency to be in compliance with the guidelines in ANSI/EIA-748.          (c) For cost or incentive contracts and subcontracts valued at less than $20 million -          (1) The application of earned value management is optional at the discretion of the program/project manager and is a risk-based decision that must be supported by a cost/benefit analysis; and          (2) A decision to apply earned value management shall be documented in the contract file.          (d) For firm-fixed-price contracts and subcontracts of any dollar value the application of earned value management is discouraged.    **Parent topic:**  Subpart 334.2 - Earned Value Management System
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