HHS Part 334-Major System Acquisition, Subpart 334.2 - Earned Value Management System

Subpart 334.2 of the HHS contract policies and regulations states the policy for when the department applies the Earned Value Management System requirement. The requirement is applied

(a) For cost or incentive contracts and subcontracts valued at $20 million or more, the contractor's earned value management system shall comply with the guidelines in the EIA-748 Standard for Earned Value Management Systems.

(b) For cost or incentive contracts and subcontracts valued at $50 million or more, the contractor shall have an earned value management system that has been determined by the cognizant Federal agency to be in compliance with the guidelines in EIA-748.

(c) For cost or incentive contracts and subcontracts valued at less than $20 million

(1) The application of earned value management is optional at the discretion of the program/project manager and is a risk-based decision that must be supported by a cost/benefit analysis; and

(2) A decision to apply earned value management shall be documented in the contract file.

(d) For individual contracts of any type valued at less than $10 million, including options, full or partial EVM application, as appropriate to the contract type involved, is optional. The recommendation to use EVM should be based upon a risk analysis by the program manager/Project Officer (PO). A decision to use EVM at this level requires the prior approval of the cognizant Head of the Contracting Activity (HCA).

Integrated Baseline Reviews are normally conducted post-award but pre-award may also be conducted.

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