U.S. flag
          An official website of the United States Government  Main navigation
  

        

              Data Initiatives
                              Regulations
                                                                        Row 1
                                              FAR FAR
                              Smart Matrix Smart Matrix
                              Chapter 99 (CAS) Chapter 99 (CAS)
                              Row 2
                                              DFARS DFARS
                              DFARSPGI DFARSPGI
                              AFARS AFARS
                              DAFFARS DAFFARS
                              DAFFARS MP DAFFARS MP
                              DARS DARS
                              DLAD DLAD
                              NMCARS NMCARS
                              Row 3
                                              SOFARS SOFARS
                              TRANSFARS TRANSFARS
                              AGAR AGAR
                              AIDAR AIDAR
                              CAR CAR
                              DEAR DEAR
                              DIAR DIAR
                              DOLAR DOLAR
                              Row 4
                                              DOSAR DOSAR
                              DTAR DTAR
                              EDAR EDAR
                              EPAAR EPAAR
                              FEHBAR FEHBAR
                              GSAM/R GSAM/R
                              HHSAR HHSAR
                              HSAR HSAR
                              Row 5
                                              HUDAR HUDAR
                              IAAR IAAR
                              JAR JAR
                              LIFAR LIFAR
                              NFS NFS
                              NRCAR NRCAR
                              TAR TAR
                              VAAR VAAR
                              Tools
                                                                        Archives
                              Smart Matrix
                              Regulations Search
                              Acquisition Regulation Comparator (ARC)
                              Policy Network
                                                                        CAOC
                              CAAC
                              FAR Council
                              ISDC
 Breadcrumb
        Home
                            Regulations
                            General Services Acquisition Manual (GSAM)
                            Subpart 534.2 - Earned Value Management Systems.
        
                  GSAM
GSAM
Change Number: Change 178 GSAR Case 2020-G511 Effective Date: 03/25/2024
PartPart 501Part 502Part 503Part 504Part 505Part 506Part 507Part 508Part 509Part 510Part 511Part 512Part 513Part 514Part 515Part 516Part 517Part 518Part 519Part 520Part 521Part 522Part 523Part 524Part 525Part 526Part 527Part 528Part 529Part 530Part 531Part 532Part 533Part 534Part 535Part 536Part 537Part 538Part 539Part 540Part 541Part 542Part 543Part 544Part 545Part 546Part 547Part 548Part 549Part 550Part 552Part 553Part 570Part 571
Subpart534.2
Section534.201534.202
Leave this field blank
        
                  

                                
                  
        « PreviousNext »
Subpart 534.2 - Earned Value Management Systems.Subpart 534.2 - Earned Value Management Systems. 	  **Parent topic:**  Part 534 - Major System Acquisition534.201 Policy.       (a)                   *Policy*. This Subpart provides policies and procedures for incorporating an Earned Value Management System (EVMS) (see FAR 2.101) in GSA contracts, for the exclusive use of GSA, pursuant to OMB Circular A-11, 7. It is a results-based tool that can also provide for the preclusion of possible problems or concerns during the project.                                          (b)                   *Definition of major acquisition*. OMB Circular A-11, 7, Capital Planning Guide Supplement, refers to the definition of “major acquisition” as a capital project that requires special management attention because of its: (1) importance to an agency’s mission; (2) high development, operating, or maintenance costs; (3) high risk; (4) high return; or (5) significant role in the administration of an agency’s programs, finances, property, or other resources.                                          (c)                   *Applicability*. It is GSA policy to define major acquisition for the purposes of EVMS as follows:                                                         (1)                         *GSA acquisitions valued at $20 million or more*. Cost-reimbursement or incentive contracts and orders (see FAR subparts 16.3 and 16.4) shall require a formally validated EVMS (in accordance with ANSI/EIA-748-A Earned Value Management System Acceptance Guide (see  534.201(d) below)). EVMS requirements shall be included in contracts, MAS orders, and GWAC orders when the requirements entail developmental or modernization work, as defined by OMB’s definition of Developmental/Modernization/Enhancement in A-11, 7. Firm-fixed price, time-and-materials, and labor hour contracts and orders that are solely for commercial products or commercial services should not normally include EVMS.                                                            (2)                         *GSA acquisitions valued at less than $20 million*. EVMS requirements apply for contracts and orders of any type valued at less than $20 million if the program manager and contracting officer determine that EVMS is needed in that instance. This rationale shall be documented in the acquisition plan for the procurement.                                                                             (d)                   *Resources and Guides*. EVMS is based upon the application of an international standard, ANSI/EIA-748-A (June 2007). EVMS resource and guides are available at   http://www.ndia.org/divisions/ipmd/division-guides-and-resources. These resources and guides include:                                                         (1)  EVMS Application Guide.                                                            (2)  EVMS Surveillance Guide.                                                            (3)  EVMS Intent Guide.                                                            (4)  EVMS System Acceptance Guide.                                                            (5)  Program Managers’ Guide to the Integrated Baseline Review Process.                                                            (6)  Integrating Risk Management with Earned Value Management.    534.201-70 Procedures. 		    (a)                   *General*. Major acquisitions are designated by agency planners in coordination with OMB. All major acquisitions should have a complete and approved acquisition plan, a performance-based work statement, and a performance-based management system. The contracting officer should coordinate with the program manager to determine whether the program has been designated a major acquisition and, if so, to ensure that the following have been adequately addressed in order to apply EVMS properly. 				         				         					          (b)                   *Adequate funding*. Before proceeding with the procurement, the contracting officer should verify that the program budget contains sufficient funding to conduct required EVMS reviews and the Integrated Baseline Review (IBR) (see FAR 34.202 and appropriate NDIA Guide). 				         				         					          (c)                   *Contract work breakdown structure*. The program manager is responsible for preparing the Contract Work Breakdown Structure (CWBS) to be included in the work statement. The reporting of progress, performance, and engineering evaluations, as well as financial data and variance analysis, is based on the CWBS. 				         				         					          (d)                   *Requirements Package language*. When a proposed acquisition meets the requirements for EVM applicability, the requirements package must address the Contract Work Breakdown Structure (CWBS) and the performance schedule, and it must include in the work statement the requirement for EVMS. Sample language is provided below and should be modified to fit particular program requirements. 					           						             							              (1)                         *EVMS statement for work statement*. 							              “The Contractor must utilize an EVMS for planning, controlling, and integrating project scope, schedule, and resources. The Contractor must provide documentation that its EVMS is compliant with the Standard. If the Contractor proposes to use an EVMS or similar system that is not compliant, the Contractor must submit with its proposal a comprehensive plan to develop and implement a compliant EVMS.” 						             						             							              (2)                         *Contract Work Breakdown Structure (CWBS)*. The program manager is responsible for preparing a preliminary CWBS that is compatible with the Program Work Breakdown Structure (PWBS) and for including the CWBS in the requirements package. When determining the appropriate reporting level, the program manager should extend the CWBS only to the level that allows visibility into those high-cost, high-risk, or specific areas critical to the success of the program. The CWBS should not specify an excessive number of lower-level elements because it may impinge on the contractor’s normal method of operations or result in excessive reporting. Sample CWBS language follows: 							              “The Contractor must extend the preliminary CWBS specified in the solicitation to meaningful management or product-oriented lower levels that reflect the way it does business. The Contractor must prepare and deliver a CWBS Index and Dictionary. The Contractor has complete flexibility in extending the CWBS, but it must ensure that the CWBS is reconcilable with the Program WBS and that reporting of progress, performance, and engineering evaluations, as well as financial data and variance analysis, is based on the CWBS. The CWBS must be extended to the necessary level to support development of a logical and efficient sequence of tasks designed to accomplish the effort described in the Contract.” 						             						             							              (3)                         *Performance Schedule*. To ensure that the management control system is integrated, the program manager is required to define requirements in the work statement for a schedule showing the sequence of events and the critical path for program milestones or deliverables. Offerors should be required to use this schedule in preparing their proposals, and the performance schedule will ultimately result in an Integrated Master Schedule after completion of the IBR. Sample work statement language follows: 							              “The Contractor must establish a performance schedule that describes in sufficient detail the sequence of events needed to accomplish the requirements of the contract. The performance schedule must also reflect congruent CWBS elements. The Contractor must ensure the performance schedule portrays an integrated schedule plan to meet the milestones and delivery requirements of the contract. The performance schedule also must identify the program’s critical path. The performance schedule is to be constructed using a software tool compatible with standard scheduling software. The Contractor must submit the performance schedule at the post-award conference and an updated version monthly in program status reviews.” 						             					           				         				         					          (e)                   *Acquisition planning*. See FAR 7.105(b)(3) and (b)(10) for required acquisition planning for EVMS. 				         				         					          (f)                   *Reporting*. Contractors are required to submit EVM reports on a monthly basis. These reporting requirements shall be included as contract data deliverables. The work statement should require the contractor to use appropriately tailored value information as the basis for preparing the monthly EVM reports and to integrate and present cost, schedule, and technical performance reviews.534.202 Integrated Baseline Reviews (IBR). 		    GSA policy prohibits the conduct of pre-award Integrated Baseline Reviews (IBR). Therefore, when an Integrated Baseline Review is conducted, it shall be conducted after award.
« PreviousNext »
FavoriteX

      GSAM Parts
            Regulations GSAM Menu
  

        

              Index
                              501
                              502
                              503
                              504
                              505
                              506
                              507
                              508
                              509
                              510
                              511
                              512
                              513
                              514
                              515
                              516
                              517
                              518
                              519
                              520
                              521
                              522
                              523
                              524
                              525
                              526
                              527
                              528
                              529
                              530
                              531
                              532
                              533
                              534
                              535
                              536
                              537
                              538
                              539
                              540
                              541
                              542
                              543
                              544
                              545
                              546
                              547
                              548
                              549
                              550
                              552
                              553
                              570
                              571

      ×
        Data Initiatives
                                                              Regulations
                                                              Tools
                                              Archives
                                                              Smart Matrix
                                                              Regulations Search
                                                              Acquisition Regulation Comparator (ARC)
                                                              Policy Network
                                              CAO.gov
                                                        CAO Home
                                                              Council Member
                                                                    Large Agencies
                                                              Small Agencies
                                                              Council Defining Documents
                                                                    CAOC History
                                                              CAOC Charter
                                                              Civilian Agency Acquisition Council (CAAC)
                                                              Federal Acquisition Regulatory Council
                                                              Interagency Suspension and Debarment Committee (ISDC)
                                                              Search
 ˄ Top Sign up for FAR News

                            Share the FAR
                        Upper Footer Menu
  

        
      Useful Links
                              FAR Resources
                              Training
                              Acquisition Systems
            
                            **Contact Us/FAQs**
                        **Privacy and Security Notice**
                        **Accessibility Aids**
                        **Last Updated 03/29/2024**
 ACQUISITION.GOV
                An official website of the General Services Administration About GSA
                Accessibility support
                FOIA requests
                No FEAR Act data
                Office of the Inspector General
                Performance reports
                Privacy policy Looking for U.S. government information and services?
            Visit USA.gov
 «
    
    Tt