52.234-4
Earned Value Management System
Contractors must maintain and use a government-approved, EIA-748-compliant EVMS, ensure timely reporting, and obtain approval for system changes to remain compliant with contract requirements.
Overview
FAR 52.234-4 requires contractors to use an Earned Value Management System (EVMS) compliant with Electronic Industries Alliance Standard 748 (EIA-748) for certain contracts. The clause outlines requirements for system compliance, reporting, government reviews, change approvals, and subcontractor flow-down. If a contractor’s EVMS is not compliant at award, they must apply their current system and meet milestones in an approved plan. The government will conduct Integrated Baseline Reviews (IBRs) at key points, and contractors must obtain approval for EVMS changes unless a waiver is granted. Contractors must also provide access to records for government surveillance and ensure specified subcontractors comply with the clause.
Key Rules
- EVMS Compliance
- Contractors must use an EVMS compliant with EIA-748, as determined by the Cognizant Federal Agency (CFA).
- Non-Compliant Systems
- If not compliant at award, contractors must use their current system and meet milestones in an approved EVMS plan.
- Integrated Baseline Review (IBR)
- The government will conduct an IBR post-award (if not done pre-award) and may require additional IBRs at significant contract events.
- EVMS Changes
- Proposed changes to the EVMS require CFA approval or notification, depending on waiver status.
- Government Access
- Contractors must provide access to records and data for government surveillance of EVMS compliance.
- Subcontractor Flow-Down
- Contractors must require specified subcontractors to comply with this clause.
Responsibilities
- Contracting Officers: Approve EVMS plans, conduct or arrange IBRs, and monitor compliance.
- Contractors: Maintain a compliant EVMS, report as required, obtain approvals for changes, provide access for surveillance, and flow down requirements to specified subcontractors.
- Agencies: Oversee EVMS compliance, conduct IBRs, and grant waivers or approvals for system changes.
Practical Implications
- This clause ensures robust project management and cost control through EVMS.
- Contractors must be proactive in achieving and maintaining compliance, especially if their system is not initially approved.
- Failure to comply can result in increased oversight, delays, or contract issues, particularly regarding system changes and reporting.