534.201 Policy.
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(a) Policy. This Subpart provides policies and procedures for incorporating an Earned Value Management System (EVMS) (see FAR 2.101) in GSA contracts, for the exclusive use of GSA, pursuant to OMB Circular A-11, 7. It is a results-based tool that can also provide for the preclusion of possible problems or concerns during the project.
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(b) Definition of major acquisition. OMB Circular A-11, 7, Capital Planning Guide Supplement, refers to the definition of “major acquisition” as a capital project that requires special management attention because of its: (1) importance to an agency’s mission; (2) high development, operating, or maintenance costs; (3) high risk; (4) high return; or (5) significant role in the administration of an agency’s programs, finances, property, or other resources.
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(c) Applicability. It is GSA policy to define major acquisition for the purposes of EVMS as follows:
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(1) GSA acquisitions valued at $20 million or more. Cost-reimbursement or incentive contracts and orders (see FAR subparts 16.3 and 16.4) shall require a formally validated EVMS (in accordance with ANSI/EIA-748-A Earned Value Management System Acceptance Guide (see 534.201(d) below)). EVMS requirements shall be included in commercial and non-commercial contracts, MAS orders, and GWAC orders when the requirements entail developmental or modernization work, as defined by OMB’s definition of Developmental/Modernization/Enhancement in A-11, 7. Firm-fixed price, time-and-materials, and labor hour contracts and orders that are solely for commercial items or services, as defined at FAR 2.101, should not normally include EVMS.
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(2) GSA acquisitions valued at less than $20 million. EVMS requirements apply for contracts and orders of any type valued at less than $20 million if the program manager and contracting officer determine that EVMS is needed in that instance. This rationale shall be documented in the acquisition plan for the procurement.
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(d) Industry Guides. Earned Value Management is based upon the application of an international standard, ANSI/EIA-748-A (June 2007). Specific EVMS Guides approved for use by industry and U.S. Government for implementation of various aspects of ANSI/EIA-748-A are maintained by the National Defense Industrial Association (NDIA). These Guides include:
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(1) EVMS Application Guide.
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(2) EVMS Surveillance Guide.
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(3) EVMS Intent Guide.
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(4) EVMS System Acceptance Guide.
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(5) Program Managers’ Guide to the Integrated Baseline Review Process.
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(6) Integrating Risk Management with Earned Value Management.
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(e) The Guides can be found at http://www.ndia.org/evm.