34.201 Policy
Source: FAR 34.201 on acquisition.gov
Major development acquisitions require an Earned Value Management System (EVMS), and contractors must submit monthly reports and compliance plans if their system is not yet certified.
Overview
FAR 34.201 establishes the policy for requiring an Earned Value Management System (EVMS) in major development acquisitions and, at agency discretion, in other acquisitions. It mandates compliance with OMB Circular A-11 and the Electronic Industries Alliance Standard 748 (EIA-748). Offerors without a compliant EVMS must submit a plan for achieving compliance, but cannot be excluded solely for lacking a compliant system at proposal time. Contractors subject to EVMS requirements must submit monthly EVMS reports, and these requirements extend to subcontractors. Contracting officers are responsible for determining the adequacy of EVMS plans before awarding contracts.
Key Rules
- EVMS Requirement for Major Acquisitions
- Major development acquisitions must use an EVMS per OMB Circular A-11; agencies may require EVMS for other acquisitions.
- Compliance with EIA-748
- Offerors without a compliant EVMS must submit a plan for compliance; lack of compliance does not disqualify them from award consideration.
- Monthly Reporting
- Contractors must submit monthly EVMS reports for applicable contracts.
- Subcontractor Application
- EVMS requirements apply to subcontractors under the same rules as prime contractors.
- Plan Adequacy Review
- Contracting officers must review and determine the adequacy of EVMS plans before contract award.
Responsibilities
- Contracting Officers: Ensure EVMS requirements are included, review and approve EVMS plans, and enforce monthly reporting.
- Contractors: Submit compliant EVMS or a plan for compliance, and provide monthly reports.
- Agencies: May extend EVMS requirements to additional acquisitions and oversee compliance.
Practical Implications
- Ensures rigorous project management and cost control for major acquisitions.
- Contractors must be prepared to implement or plan for EVMS compliance.
- Subcontractors are held to the same standards, increasing oversight throughout the supply chain.
- Common pitfalls include inadequate EVMS plans or failure to submit timely reports.
(a) An Earned Value Management System (EVMS) is required for major acquisitions for development, in accordance with OMB Circular A-11. The Government may also require an EVMS for other acquisitions, in accordance with agency procedures.
(b) If the offeror proposes to use a system that has not been determined to be in compliance with the Electronic Industries Alliance Standard 748 (EIA-748), the offeror shall submit a comprehensive plan for compliance with these EVMS standards. Offerors shall not be eliminated from consideration for contract award because they do not have an EVMS that complies with these standards.
(c) As a minimum, contracting officers shall require contractors to submit EVMS monthly reports for those contracts for which an EVMS applies.
(d) EVMS requirements will be applied to subcontractors using the same rules as applied to the prime contractor.
(e) When an offeror is required to provide an EVMS plan as part of its proposal, the contracting officer will determine the adequacy of the proposed EVMS plan prior to contract award.