Subpart 1834.2—Earned Value Management

System

Parent topic: PART 1834—MAJOR SYSTEM ACQUISITION

1834.201 Policy.

(a) NASA requires use of an Earned Value Management System (EVMS) on contracts for

development or production work, including development or production work for flight and ground

support systems and components, prototypes, and institutional investments (facilities, IT

infrastructure, etc.) as specified below:

(1) For cost or fixed-price incentive contracts and subcontracts valued at $50 Million or more the

contractor shall have an EVMS that has been determined by the cognizant Federal agency to be in

compliance with the guidelines in the American National Standards Institute/Electronic Industries

Alliance Standard 748, Earned Value Management Systems (ANSI/EIA–748).

(2) For cost or fixed-price incentive contracts and subcontracts valued at $20 Million or more but

less than $50 Million, the contractor shall have an EVMS that complies with the guidelines in

ANSI/EIA–748, as determined by the cognizant Contracting Officer.

(3) For cost or fixed-price incentive contracts and subcontracts valued at less than $20 Million the

application of Earned Value Management (EVM) is optional and is a risk-based decision at the

discretion of the program/project manager.

(b) Requiring EVM for firm-fixed-price (FFP) contracts and subcontracts of any dollar value is

discouraged; however, an Integrated Master Schedule (IMS) and adequate reporting shall be

required to plan and track schedule performance for development or production contracts valued at

$20 Million or more. In addition, for FFP contracts that are part of a program/project of $50 Million

or more, the contracting officer shall collaborate with the government's program/project manager to

ensure the appropriate data can be obtained or generated to fulfill program management needs and

comply with NASA Procedural Requirements (NPR) 7120.5.

(c) An EVMS is not required on non-developmental contracts for engineering support services,

steady state operations, basic and applied research, and routine services such as janitorial services

or grounds maintenance services.

(d) Contracting officers shall request the assistance of the cognizant Defense Contract Management

Agency (DCMA) office and the applicable NASA Center EVM Focal Point

(http://evm.nasa.gov/council.html) in determining the adequacy of proposed EVMS plans and

procedures and system compliance.

(e) Notwithstanding the EVMS requirements above, if an offeror proposes to use a system that has

not been determined to be in compliance with the ANSI/EIA Standard–748, Earned Value

Management Systems, the offeror shall submit a comprehensive plan for compliance with these

EVMS standards, as specified in 1852.234–1, Notice of Earned Value Management System. Offerors

shall not be eliminated from consideration for contract award because they do not have an EVMS

that complies with these standards.
(f) As a minimum, and in accordance with NPD 7120.5, requirements initiators shall ensure that

EVMS monthly reports are included as a deliverable in the acquisition package provided to the

procurement office for implementation into contracts where EVMS applies. Additionally, the

acquisition package shall include a Contract Performance Report (CPR), IMS and a Work Breakdown

Structure (WBS) and the appropriate data requirements descriptions (DRDs) for implementation into

the contract.

1834.203 Solicitation provisions and contract clause.

The FAR EVMS solicitation provisions and contract clause are not used in NASA contracts. See

1834.203–70 for the NASA EVMS solicitation provision and contract clause.

1834.203-70 NASA solicitation provision and contract

clause.

Except for firm-fixed price contracts and the contracts identified in 1834.201(c), the contracting

officer shall insert—

(a) The provision at 1852.234–1, Notice of Earned Value Management System, in solicitations for

contracts for—

(1) Development or production, including flight and ground support projects, and institutional

projects (facility, IT investment, etc.), with a value exceeding $20M; and

(2) Acquisitions of any value designated as major by the project manager in accordance with OMB

Circular A–11; and

(b) The clause at 1852.234–2, Earned Value Management System, in solicitations and contracts with

a value exceeding $50M that include the provision at 1852.234–1. The contracting officer shall use

the clause with its Alternate I when the contract value is less than $50M.