52.234-4 Earned Value Management System
Source: FAR 52.234-4 on acquisition.gov
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.
As prescribed in 34.203(c), insert the following clause:
Earned Value Management System (Nov 2016)
(a) The Contractor shall use an earned value management system (EVMS) that has been determined by the Cognizant Federal Agency (CFA) to be compliant with the guidelines in Electronic Industries Alliance Standard 748 (EIA-748) (current version at the time of award) to manage this contract. If the Contractor’s current EVMS has not been determined compliant at the time of award, see paragraph (b) of this clause. The Contractor shall submit reports in accordance with the requirements of this contract.
(b) If, at the time of award, the Contractor’s EVM System has not been determined by the CFA as complying with EVMS guidelines or the Contractor does not have an existing cost/schedule control system that is compliant with the guidelines in EIA- 748 (current version at time of award), the Contractor shall-
(1) Apply the current system to the contract; and
(2) Take necessary actions to meet the milestones in the Contractor’s EVMS plan approved by the Contracting Officer.
(c) The Government will conduct an Integrated Baseline Review (IBR). If a pre-award IBR has not been conducted, a post award IBR shall be conducted as early as practicable after contract award.
(d) The Contracting Officer may require an IBR at-
(1) Exercise of significant options; or
(2) Incorporation of major modifications.
(e) Unless a waiver is granted by the CFA, Contractor proposed EVMS changes require approval of the CFA prior to implementation. The CFA will advise the Contractor of the acceptability of such changes within 30 calendar days after receipt of the notice of proposed changes from the Contractor. If the advance approval requirements are waived by the CFA, the Contractor shall disclose EVMS changes to the CFA at least 14 calendar days prior to the effective date of implementation.
(f) The Contractor shall provide access to all pertinent records and data requested by the Contracting Officer or a an authorized representative as necessary to permit Government surveillance to ensure that the EVMS conforms, and continues to conform, with the performance criteria referenced in paragraph (a) of this clause.
(g) The Contractor shall require the subcontractors specified below to comply with the requirements of this clause: [Insert list of applicable subcontractors.]
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(End of clause)