Subpart 34.2
Earned Value Management System
FAR Subpart 34.2 requires contractors on major system acquisitions to implement and maintain a compliant Earned Value Management System, including baseline reviews and regular performance reporting, to ensure effective project oversight and risk management.
Overview
FAR Subpart 34.2 establishes requirements for the use of an Earned Value Management System (EVMS) in major system acquisitions. It outlines when EVMS is required, the standards it must meet, and the processes for reviewing and maintaining the integrity of performance measurement baselines. The subpart also prescribes solicitation provisions and contract clauses to ensure contractors implement and maintain compliant EVMS practices. The goal is to provide reliable data for measuring contractor performance, managing risk, and ensuring successful project delivery.
Key Rules
- EVMS Policy (34.201)
- Requires contractors to use an EVMS that complies with industry standards (such as EIA-748) for certain major system acquisitions, typically above specified dollar thresholds.
- Integrated Baseline Reviews (34.202)
- Mandates the conduct of Integrated Baseline Reviews (IBRs) to validate the performance measurement baseline and ensure project risks are identified and managed early.
- Solicitation Provisions and Contract Clause (34.203)
- Specifies the inclusion of EVMS-related provisions and clauses in solicitations and contracts when EVMS is required, detailing contractor obligations for system implementation and reporting.
Responsibilities
- Contracting Officers: Must determine EVMS applicability, include required clauses, and oversee compliance and IBRs.
- Contractors: Must implement, maintain, and demonstrate a compliant EVMS, participate in IBRs, and provide accurate performance data.
- Agencies: Oversee EVMS compliance, conduct reviews, and ensure project risks are managed.
Practical Implications
- Ensures disciplined project management and performance tracking for major acquisitions.
- Impacts proposal preparation, contract administration, and ongoing project oversight.
- Common pitfalls include inadequate EVMS implementation, failure to conduct timely IBRs, and incomplete performance reporting.