Class Deviation 2015-O0017 - Earned Value Management System Threshold

Summary

This deviation establishes revised EVMS thresholds for Department of Defense contracts. Contracts at or above $100 million require formal CFA compliance determination; contracts below $100 million do not. Contracting Officers must use deviation versions of Defense Federal Acquisition Regulation Supplement 252.234-7001 and 252.234-7002 dated September 2015.

Required Contracting Officer Actions

1. Use the deviation version of 252.234-7001, Notice of Earned Value Management System (Deviation 2015-O0017)(Sep 2015) in solicitations as prescribed in 234.203(1)
2. Use the deviation version of 252.234-7002, Earned Value Management System (Deviation 2015-O0017)(Sep 2015) in contracts as prescribed in 234.203(2)
3. Insert subcontractor names in 252.234-7002 paragraph (k)(1) for subcontracts valued at $100 million or more
4. Insert subcontractor names in 252.234-7002 paragraph (k)(2) for subcontracts valued at less than $100 million

Affected Provisions and Clauses

252.234-7001, (Clause)

• Prescribed in: 234.203(1)
• Change type: MODIFIED
• Action: Modify clause 252.234-7001

252.234-7002, (Clause)

• Prescribed in: 234.203(2)
• Change type: MODIFIED
• Action: Modify clause 252.234-7002

Notes

Subcontract threshold: The $100 million threshold applies to both prime contracts and subcontracts. Subcontracts below $100 million are exempt from paragraph (c) of 252.234-7002 but must meet all other EVMS requirements.

Payment withholding: If the CO disapproves the contractor's EVMS and the contract includes 252.242-7005, the CO withholds payments per that clause.

CFA change approval: For contracts at or above $100 million, the contractor must obtain CFA approval before implementing EVMS changes. If the CFA waives advance approval, the contractor must disclose changes at least 14 days before implementation.

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