Earned Value Management System Thresholds Class Deviation Memo – dated September 28, 2015

Effective September 28, 2015, the EVMS compliance review threshold was raised from $50M to $100M. This applies to DFARS 232.201 (1) (ii) as well as DFARS provision 252.234-7001 and 252.234-7002. The $100M threshold applies to cost or incentive contracts or subcontracts where a contractor is required to have an EVMS in place that has been determined to be compliant with the EIA-748 Standard for Earned Value Management Systems. The DCMA will continue to do compliance and surveillance on contracts that exceed the $100 million threshold.

For cost or incentive contracts or subcontracts that are greater than $20M but less than $100M, the contractor is required to use an EVMS that complies with the EIA-748 guidelines to provide EVM reporting to the DoD program management office. While the DCMA may not conduct regular compliance or surveillance reviews, the DCMA may do a review for cause when the reporting data quality appears suspect to the government customer.

Download Document