PGI 234.201-70: Policy.

(a)(3) When the program manager decides to implement earned value management on

contracts and subcontracts valued at less than $50,000,000, a cost-benefit analysis must be

conducted and the results documented in the contract file. Considerations for determining the effectiveness of applying earned value management in these situations and guidance for tailoring reporting are available in—

(i) The Integrated Program Management Data Analysis Report (IPMDAR) Implementation & Tailoring Guide; and

(ii) The DoD Earned Value Management Implementation Guide.

(4) In extraordinary cases where cost/schedule visibility is required and cannot

be obtained using other means, the program manager must request a waiver for individual contracts from the Milestone Decision Authority. In these cases, the program manager will conduct a business case analysis that includes rationale as to why a cost or fixed-price incentive contract was not an appropriate contracting vehicle. Considerations for determining the effectiveness of applying earned value management in these situations and guidance for tailoring reporting can be found in—

(i) DoD Instruction 5000.85, paragraph 3C.3.c.(3); and

(ii) The DoD Earned Value Management Implementation Guide.

(b) The procuring contracting officer must obtain the assistance of the administrative

contracting officer in determining the adequacy of an earned value management system

(EVMS) plan that an offeror proposes for compliance with EIA-748, under the provision at DFARS 252.234-7998, Notice of Earned Value Management System. The Government will

review and approve the offeror’s EVMS plan before contract award. Instructions for performing EVMS plan reviews can be found at https://www.dcma.mil/HQ/EVMS.

(d) Additional guidance on earned value management can be found in—

(1) The Guidebook for Earned Value Management System (EVMS) System-Level

Surveillance at https://www.dcma.mil/HQ/EVMS/;

(2) The Guidebook for Earned Value Management System - Program Analysis; and

(3) The Program Managers’ Guide to the Integrated Baseline Review Process (the IBR Guide).

(g) Disposition of findings.

(2) Initial determination.

(ii)(A) Within 30 days of receiving the report, if the contracting officer makes a

determination that there is a material weakness, the contracting officer should provide an initial determination of material weaknesses and a copy of the report to the contractor and

require the contractor to submit a written response.

(C) Evaluation of contractor's response. Within 30 days of receiving the

contractor’s response, the contracting officer, in consultation with the cognizant functional

specialist, should evaluate the contractor’s response and make a final determination.

(3) Final determination.

(i)(B)(1) Monitoring contractor's corrective action. The contracting officer and

cognizant functional specialist must monitor the contractor's progress in correcting material

weaknesses and deficiencies. If the contractor fails to make adequate progress, the contracting officer must take whatever action is necessary to ensure that the contractor corrects the weaknesses and deficiencies. Actions the contracting officer may take include: withdraw or withhold approval of the system; bringing the issue to the attention of higher level management, as applicable; recommending non-award of potential contracts; and for material weaknesses, implementing or increasing the withholding in accordance with