For cost or incentive contracts and subcontracts valued greater than $20 million for which EVM will be applied, the contractor is required to utilize an EVMS that complies with the guidelines in the EIA-748 to provide EVM reporting to the program management office.

Why do we need Earned Value Management?

EVM helps provide the basis to assess work progress against a baseline plan, relates technical, time and cost performance, provides data for pro-active management action and provides managers with a summary of effective decision making.

Is EVM mandatory?

Earned Value Management

DoD policy mandates EVM for major acquisition contracts that meet the thresholds and criteria contained in DoD Instruction 5000.2. This is mandatory unless waived by the Milestone Decision Authority (MDA).