DFARS 252.234-7001 Clause

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DFARS 252.234-7001 Notice of Earned Value Management System

DFARS 252.234-7001 Notice of Earned Value Management System Clause – dated April 2008

This clause requires that if an offeror submits a proposal in the amount of $50,000,000 or more that either “(1) The offeror shall provide documentation that the Cognizant Federal Agency (CFA) has determined that the proposed Earned Value Management System (EVMS) complies with the EVMS guidelines in the Electronic Industries Alliance Standard 748, Earned Value Management Systems (EIA-748) (current version at time of solicitation).  The Government reserves the right to perform reviews of the EVMS when deemed necessary to verify compliance, or (2) If the offeror proposes to use a system that has not been determined to be in compliance with the requirements of paragraph (a)(1) of this provision, the offeror shall submit a comprehensive plan for compliance with the guidelines in EIA-748.”

If an offeror submits a proposal in an amount less than $50,000,000, a written description of the management procedures it will use and maintain in the performance of any contract that comply with the requirements of the EVMS clause in the contract must be included.  If the contractor’s EVMS has been determined to be compliant, documentation to that effect can be included in lieu of the written description.

The offeror must also identify the subcontractors to whom the EVMS requirements will apply.

Note: the Earned Value Management System Thresholds Class Deviation Memo dated September 28, 2015, raises the compliance review $50M threshold to $100M. DODI 5000.02 has been updated to reflect the change in the thresholds, the DFARS update is in process.

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