Enclosure 1
Subpart 1842.74--Earned
Value Management
1842.7401
Earned Value Management Systems (EVMS).
When an offeror or
contractor is required to provide an EVMS plan to the Government in accordance
with NASA Policy Directive (NPD)
9501.3, Earned Value
Management, the contracting officer shall forward a copy of the plan to the cognizant administrative contracting officer (ACO) to obtain
the assistance of the ACO in determining the adequacy of the proposed EVMS
plan.
[Earned value management system (EVMS) is a project
management tool that effectively integrates the project work with cost,
schedule and performance elements for optimum project planning and
control. The qualities and operating
characteristics of an earned value management system are described in American
National Standards Institute (ANSI)/Electronics Industries Alliance (EIA)
Standard – 748, Earned Value Management Systems. (See OMB Circular A-11, Part 7).
1842.7402
Applicability of EVMS to NASA contracts.
(a) EVMS has two different levels of rigor
and the contract must specify which level is being required.
(1) The more stringent level requires the contractor to implement its
EVMS in accordance with the EVM formal guidelines specified in the ANSI/EIA-748
standard. Implementation of EVMS at the
guidelines level is required for applicable contracts expected to exceed $50M
or more. Application of EVMS at the
guidelines level for contracts below $50M is at the discretion of the project
manager
and would satisfy the requirement of paragraph (a)(2) of this section .
(2) The more flexible
level requires the contractor only to implement its EVMS in accordance with the
EVM principles specified in ANSI/EIA-748.
Implementation of EVMS at the principles level is required for
applicable contracts over $20M, but not exceeding $50M. Application of EVMS at the principles level
for contracts below $20M is at the discretion of the project manager.
(b) When EVMS is required, EVM reporting by cs must submit reports (e.g. Contract Performance
Report) must be based on their EVMS that has either been
recognized by –
(1) The cognizant
administrative contracting officer (ACO) as compliant with the ANSI/EIA-748
standard; or
(2) NASA as compliant
with ANSI/EIA-748 principles when EVMS is implemented at the principles level.
(c) If EVMS is being implemented at the
guidelines level and the offeror does not have an EVMS that has been recognized
by the ACO as compliant with ANSI/EIA-748, the offeror must provide an EVMS
implementation plan with its proposal, and the contracting officer shall
forward a copy of that plan to the cognizant ACO to obtain assistance in
determining its adequacy.
1842.7403
Applicability of EVMS to NASA subcontracts.
When EVMS is applicable to a prime contract,
the requirement may must be
flowed down to subcontracts according to the same prescriptions for its use at
the prime contractor level (see 1842.7404) of the type dollar value described in 1842.7404(a) at the
mutual agreement of the project manager and contractor. The subcontractors and the level of
compliance requirement (i.e. guidelines or principles) must be specified in
paragraph (f) of the clause at 1852.242-75, Earned Value Management System.]
{The cross
reference to 1842.7404(a) doesn’t
capture the types of contacts that are excluded from EVM in the prescription for
the provision }
1842.7402
Solicitation provisions and contract clauses.
(a) When the Government requires Earned Value
Management, the contracting officer shall insert: [--]
(1a) The
provision at 1852.242-74, Notice of Earned Value Management System, in
solicitations; and
(2b) The
clause at 1852.242-75, Earned Value Management System, in solicitations and
contracts.
(b) The contracting officer shall insert the
clause at 1852.242-76, Modified Cost Performance Report, in solicitations and
contracts requiring modified cost performance reporting (see NPD 9501.3, Earned Value
Management).
(c) The contracting officer shall insert the
provision at 1852.242-77, Modified Cost Performance Report Plans, in solicitations
for contracts requiring modified cost performance reporting (see NPD 9501.3).
[1842.7404
Solicitation provisions and contract clauses.
(a) Except as provided in
paragraph (c) of this section, the contracting officer shall insert the
provision at 1852.242-74, Notice of Earned Value Management System, in
solicitations for cost-reimbursement
and incentive contracts for development or production, including flight and
ground support projects, and institutional projects (facility, IT investment,
etc.), with a value exceeding $50M. The
contracting officer shall use the clause with its Alternate I when the contract
value exceeds $20M but is less than $50M.
(b) The contracting officer shall insert the
clause at 1852.242-75, Earned Value
Management System, in solicitations and contracts with a value exceeding
$50M that include the provision at
1852.242-74. When the contract
value exceeds $20M but is less than $50M, the contracting office shall use the clause with its Alternate I.
(c)
EVM provisions and clauses shall not
be used on contracts for –
(1) Engineering support
services and routine services such as janitorial services or grounds maintenance
services; or
(2) Basic and applied research or advanced
technology development, unless expressly authorized by the project manager.]
1852.242-74 Notice of Earned
Value Management System.
As prescribed in 1842.7402[4] [(a)](a)(1),
insert the following provision:
NOTICE
OF EARNED VALUE MANAGEMENT SYSTEM
(March 1999 [Deviation])
(a) The offeror shall provide documentation
that the cognizant Administrative Contracting Officer (ACO) has recognized that:
(1) The
proposed earned value management system (EVMS) complies with the EVMS criteria
of NASA Policy Directive (NPD) 9501.3, Earned Value Management, or DoD
5000.2-R, Mandatory Procedures for Major Defense Acquisition Programs and Major
Automated Information Systems Acquisition Programs; or
(2) T[t]he company [Earned Value Management System (EVMS)] system conforms [complies] with [the guidelines in] the full intentions of the guidelines
presented in ANSI/EIA Standard 748, Industry Guidelines for Earned Value
Management Systems.
(b) If the offeror proposes to use a system
that [currently] does not meet the
requirements of paragraph (a) of this provision, the successful offeror
shall submit a plan for compliance with
the NASA EVM[S guidelines, for
Contracting Officer approval.] criteria as described in NPD 9501.3.
(1) The plan shall --
(i) Describe the EVMS the offeror intends to use in performance of
the contract;
(ii) Distinguish between the offeror's existing management system and
modifications proposed to meet the criteria[guidelines];
(iii) Describe the management
system and its application in terms of the criteria[guidelines];
(iv) Describe the proposed procedure for administrationof
the criteria as applied to subcontractors; and
(v) Provide documentation
describing the process and results of any third-party or self-evaluation of the
system's compliance with EVMS criteria. ;
[(iv) Provide
documentation describing the process and results, including
Government participation,
of any
third-party or self-evaluation of the system's compliance with EVMS guidelines ; an
(v) Provide
a schedule
of events leading up to Government acceptance of the Contractor’s EVMS. This schedule should include a Progress
Assessment Review no later than 30 days after contract award and the formal
Compliance Review as soon as practicable ;
(vi)
Describe the proposed procedure for application of the EVMS requirements to
subcontractors; and
(vii) Describe how the offeror will ensure EVMS
compliance for
each subcontractor subject to the flowdown requirement in paragraph (c) whose EVMS has not been
recognized by the cognizant ACO as compliant according to paragraph (a).] ]
(2) The Government will review the
offeror's plan for EVMS [implementation] before contract award.
The offeror shall provide information and assistance as required by the
Contracting Officer to support review of the plan.
(c) prescription for its
application at NFS 4The [o]Offerors
shall identify in [its]
their proposals the major subcontractors, or major subcontracted efforts if
major subcontractors have not been selected, planned for application of
EVMS. The prime contractor and the
Government shall agree to subcontractors selected for application of EVMS and
the level of implementation.
{I’m confused
by the rewrite of this paragraph (c). In the first sentence, you reference the
threshold in 7402(a). There are two thresholds in this paragraph -
$20M and $50M. Also, this cross
reference doesn’t capture the types of contacts that are excluded from EVM in the
prescription for the provision. I’m not sure what the first half
of the 3rd sentence
is saying. Ensuring compliance is a
contractual obligation and shouldn’t be referenced in a provision. Are you
trying to say that the offeror
needs to get assurance from the sub that it’s EVMS has been recognized by the
ACO, or submit a plan for doing so? Is the second half of the 3rd sentence saying
that the sub’s plan for
getting ACO recognition needs to be incorporated into
the plan submitted by the offeror?}
(c) [The EVMS requirement shall be flowed down to
subcontracts
in
accordance with the criteria in NFS 1842.7403.] Offerors
[The offeror] shall identify in their
proposals [its offer] the subcontractors, or major
subcontracted effort if major subcontractors have not been selected, planned for
application of [subject
to the] EVMS
[requirement]. The prime contractor and the Government
shall agree to subcontractors selected for application of EVMS [Before contract award, the offeror and NASA will agree on the subcontractors subject to the EVMS
requirement and
the level of compliance (i.e., guidelines or principles)].
(End
of provision)
[Alternate I (Deviation)
As prescribed in 1842.7404(a), substitute
the following paragraph (b) for paragraph (b) of the basic provision:
(b)(1) If the offeror proposes
to use a system that does not meet the requirements of paragraph (a) of this
provision, the offeror shall submit a plan for Contracting Officer approval
demonstrating how the company EVMS complies with the following principles
specified in ANSI/EIA Standard 748:
(i) Plan
all work for the project to completion.
(ii) Break
down the project work into finite pieces that can be assigned to a responsible
person or organization for control of technical, schedule, and cost objectives.
(iii)
Integrate project work, schedule, and cost objectives into a performance measurement baseline plan against which
accomplishments may be measured, and control changes to the baseline.
(iv) Use
actual costs incurred and recorded in accomplishing the work performed.
(v)
Objectively assess accomplishments at the work performance level.
(vi)
Analyze significant variances from the plan, forecast impacts, and prepare an
estimate at
completion based on performance to date and work to be performed.
(vii)
Incorporate Earned Value Management into the project’s decision-making and
review processes.
(2) The plan shall –
(i)
Describe the EVMS the offeror intends to use in performance of the contract;
(ii)
Distinguish between the offeror's existing management system and modifications
proposed to meet the principles;
(iii)
Describe the management system and its application in terms of the principles;
(iv)
Describe the proposed procedure for administration of the principles as applied
to subcontractors; and
(v)
Provide
documentation describing the process and results, including
any Government
participation, of any third-party
or self-evaluation of the system's compliance with EVMS principles.
(3)
NASA will review the offeror's plan before contract award. The offeror shall
provide information and assistance as required by the Contracting Officer to
support review of the plan.]
1852.242-75 Earned Value Management
Systems.
As prescribed at 1842.7402[4(b)] (a)(2), insert the following
clause:
EARNED
VALUE MANAGEMENT SYSTEM
(MARCH 1999) [(Deviation)]
(a) In the performance of this contract, the
Contractor shall use: [--]
(1) A[a]n earned value management system
(EVMS) that has been recognized by the cognizant Administrative Contracting
Officer (ACO) as complying with the [guidelines
specified in] criteria provided in NASA Policy Directive 9501.3, Earned
Value Management, or DoD 5000.2-R, Mandatory Procedures for Major Defense
Acquisition Programs and Major Automated Information Systems Acquisition
Programs; or
(2) A company EVMS that the ACO
has recognized as conforming with the full intentions of the guidelines
presented in ANSI/EIA Standard 748, Industry Guidelines for Earned Value
Management Systems.
(b) If, at the time of award,
the Contractor's EVMS has not been recognized by the cognizant ACO per
paragraph (a) of this clause as or the Contractor does not have an existing
cost schedule control system (C/SCS) that has been accepted by the Government,
the Contractor shall apply the Contractor's EVMS to the contract and be
prepared to demonstrate to the ACO that its system complies with the EVMS
criteria referenced in paragraph (a) of this clause.
[(b) If, at the time of award, the
Contractor's EVMS has not been recognized by the ACO as complying with the EVMS
guidelines, the Contractor shall apply the system to the contract and shall
take timely action to implement its plan to obtain compliance. The Contractor shall follow and implement the
approved compliance plan in a timely fashion.
The Government will conduct a Compliance Review to assess the
contactor’s compliance with its plan, and if the Contractor does not follow the
approved implementation schedule or correct all resulting system deficiencies
identified as a result of the compliance review within a reasonable time, the
Contracting Officer may take remedial action, that may include, but is not
limited to, a reduction in fee.]
(c) The Government may [will] review quire [require] integrated baseline reviews.
Such reviews shall be scheduled as early as practicable and should be conducted
within 180 calendar days after contract award, [or] exercise of significant contract options, [;] or [within two months after distribution of a supplemental agreement that
implemented a significant funding realignment or effected a significant change
in contract requirements.] incorporation of major contract
modifications. The objective of the integrated baseline review is for
the Government and the Contractor to jointly assess areas, such as the
Contractor's planning, to ensure complete coverage of the statement of work,
logical scheduling of the work activities, adequate resourcing, and
identification of inherent risks. [The objective of IBRs is for the
Government and the Contractor to jointly assess the Contractor's baseline to be
used for performance measurement to ensure complete coverage of the statement
of work, logical scheduling of the work activities, adequate resourcing, and
identification of inherent risks.]
(d) Unless a waiver is granted by the ACO,
Contractor proposed EVMS changes require approval of the ACO prior to
implementation. The ACO shall advise the Contractor of the acceptability of
such changes within 30 calendar days after receipt of the notice of proposed
changes from the Contractor. If the advance approval requirements are waived by
the ACO, the Contractor shall disclose EVMS changes to the ACO and provide an
information copy to the NASA Contracting Officer at least 14 calendar days
prior to the effective date of implementation.
(e) The Contractor agrees to provide access
to all pertinent records and data requested by the ACO or a duly authorized
representative. Access is to permit Government surveillance to ensure that the
EVMS complies, and continues to comply, with the criteria referenced in
paragraph (a) of this clause.
(f) The Contractor shall [be responsible for ensuring that] require the
subcontractors specified [identified]
below to comply with the [EVMS
requirements at the specified level. If
the subcontractor does not have an EVMS that has been recognized by the ACO as
compliant with ANSI/EIA 748, the prime contractor shall conduct Compliance
Reviews of subcontractors’ EVMS in the same manner as described at paragraph
(b) of this clause.] specified of this clause: (Insert list of
applicable subcontractors [and the level
of compliance (i.e., guidelines or principles)])
[(g)
If the contractor identifies a need to deviate from the agreed baseline by
working against an Over Target Baseline or Over Target Schedule, the contractor
shall submit to the Contracting Officer a request for approval to begin
implementation of an Over Target Baseline or Over Target Schedule. This request shall include a top-level
projection of cost and/or schedule growth, whether or not performance variances
will be retained, and a schedule of implementation for the rebaselining. The Government will authorize or deny the
request within 30 calendar days after receipt of the request. Failure of the Government to respond within
this 30-day period constitutes approval of the request. For cost-reimbursement contracts, the contract
budget baseline shall exclude changes for cost growth increases, other than for
authorized changes to the contract requirements.]
(End
of clause)
[Alternate I (Deviation)
As prescribed in
1842.7404(b), substitute the following paragraph (a) for paragraph (a) of the
basic clause:
(a) In the performance of this contract,
the Contractor shall use an earned value management system (EVMS) that has been
recognized by the cognizant ACO as complying with the guidelines of ANSI/EIA-748,
Industry Guidelines for Earned Value Management Systems, or by NASA as
complying with the principles specified in ANSI/EIA Standard 748. In applying EVM to this contract, the
contractor need only comply with the following principles as opposed to
complying with the ANSI/EIA 748 guidelines:
(1)
Plan all work for the project to completion.
(2) Break
down the project work into finite pieces that can be assigned to a responsible
person or organization for control of technical, schedule, and cost objectives.
(3)
Integrate project work, schedule, and cost objectives into a performance measurement baseline plan against which
accomplishments may be measured, and control changes to the baseline.
(4) Use
actual costs incurred and recorded in accomplishing the work performed.
(5)
Objectively assess accomplishments at the work performance level.
(6)
Analyze significant variances from the plan, forecast impacts, and prepare an
estimate at
completion based on performance to date and work to be performed.
(7)
Incorporate Earned Value Management into the project’s decision-making and
review processes.]
1852.242-76 Modified Cost
Performance Report.
As prescribed in 1842.7402(b),
insert the following clause:
MODIFIED
COST PERFORMANCE REPORT
(MARCH 1999)
(a) The Contractor shall use
management procedures in the performance of this contract that provide for:
(1) Planning and control of
costs;
(2) Measurement of performance
(value for completed tasks); and
(3) Generation of timely and
reliable information for the Modified Cost Performance Report (M/CPR).
(b) As a minimum, these
procedures must provide for:
(1) Establishing the time-phase
budgeted cost of work scheduled (including work authorization, budgeting, and
scheduling), the budgeted cost for work performed, the actual cost of work
performed, the budget at completion, the estimate at completion, and provisions
for subcontractor performance measurement and reporting;
(2) Applying all direct and
indirect costs and provisions for use and control of management reserve and
undistributed budget;
(3) Incorporating changes to the
contract budget base for both Government directed changes and internal
replanning;
(4) Establishing constraints to
preclude subjective adjustment of data to ensure performance measurement
remains realistic. The total allocated budget may exceed the contract budget
base only after consultation with the Contracting Officer. For
cost-reimbursement contracts, the contract budget base shall exclude changes
for cost growth increases, other than for authorized changes to the contract
scope; and
(5) Establishing the capability
to accurately identify and explain significant cost and schedule variances,
both on a cumulative basis and a projected-at-completion basis.
(c) The Contractor may use a
cost/schedule control system that has been recognized by the cognizant Administrative
Contracting Officer (ACO) as:
(1) Complying with the earned
value management system criteria provided in NASA Policy Directive 9501.3,
Earned Value Management, or DoD 5000.2-R, Mandatory Procedures for Major
Defense Acquisition Programs and Major Automated Information Systems
Acquisition Programs; or
(2) Conforming with the full
intentions of the guidelines presented in ANSI/EIA Standard 748, Industry
Guidelines for Earned Value Management Systems.
(d) The Government may require integrated
baseline reviews. Such reviews shall be scheduled as early as practicable and
should be conducted within 180 calendar days after contract award, exercise of
significant contract options, or incorporation of major modifications. The
objective of the integrated baseline review is for the Government and the
Contractor to jointly assess areas, such as the Contractor's planning, to
ensure complete coverage of the statement of work, logical scheduling of the
work activities, adequate resourcing, and identification of inherent risks.
(e) The Contractor shall provide
access to all pertinent records, company procedures, and data requested by the
ACO, or authorized representative, to:
(1) Show proper implementation
of the procedures generating the cost and schedule information being used to
satisfy the M/CPR contractual data requirements to the Government; and
(2) Ensure continuing
application of the accepted company procedures in satisfying the M/CPR data
item.
(f) The Contractor shall submit
any substantive changes to the procedures and their impact to the ACO for
review.
(g) The Contractor shall require
a subcontractor to furnish M/CPR in each case where the subcontract is other
than firm-fixed-price, time-and-materials, or labor-hour; is 12 months or more
in duration; and has critical or significant tasks related to the prime
contract. Critical or significant tasks shall be defined by mutual agreement
between the Government and Contractor. Each subcontractor's reported cost and
schedule information shall be incorporated into the Contractor's M/CPR.
(End
of clause)
1852.242-77 Modified Cost
Performance Report Plans.
As prescribed in 1842.7402(c),
insert the following provision;
MODIFIED
COST PERFORMANCE PLANS
(MARCH 1999)
(a) The offeror shall submit in
its proposal a written summary of the management procedures it will establish,
maintain, and use in the performance of any resultant contract to comply with
the requirements of the clause at 1852.242-76,
Modified Cost Performance Report.
(b) The offeror may propose to use
a cost/schedule control system that has been recognized by the cognizant
Administrative Contracting Officer as:
(1) Complying with the earned
value management system criteria of NASA Policy Directive 9501.3, Earned Value
Management, or DoD 5000.2-R, Mandatory Procedures for Major Defense Acquisition
Programs and Major Automated Information Systems Acquisition Programs; or
(2) Conforming with the full
intentions of the guidelines presented in ANSI/EIA Standard 748, Industry
Guidelines for Earned Value Management Systems.
In such cases, the offeror may
submit a copy of the documentation of such recognition instead of the written
summary required by paragraph (a) of this provision.
(End
of provision)
1852.242-76 Modified Cost
Performance Report.
As prescribed in 1842.7402(b),
insert the following clause:
MODIFIED
COST PERFORMANCE REPORT
(MARCH 1999)
(a) The Contractor shall use
management procedures in the performance of this contract that provide for:
(1) Planning and control of
costs;
(2) Measurement of performance
(value for completed tasks); and
(3) Generation of timely and
reliable information for the Modified Cost Performance Report (M/CPR).
(b) As a minimum, these procedures
must provide for:
(1) Establishing the time-phase
budgeted cost of work scheduled (including work authorization, budgeting, and
scheduling), the budgeted cost for work performed, the actual cost of work
performed, the budget at completion, the estimate at completion, and provisions
for subcontractor performance measurement and reporting;
(2) Applying all direct and
indirect costs and provisions for use and control of management reserve and
undistributed budget;
(3) Incorporating changes to the
contract budget base for both Government directed changes and internal replanning;
(4) Establishing constraints to
preclude subjective adjustment of data to ensure performance measurement
remains realistic. The total allocated budget may exceed the contract budget
base only after consultation with the Contracting Officer. For
cost-reimbursement contracts, the contract budget base shall exclude changes
for cost growth increases, other than for authorized changes to the contract
scope; and
(5) Establishing the capability
to accurately identify and explain significant cost and schedule variances,
both on a cumulative basis and a projected-at-completion basis.
(c) The Contractor may use a
cost/schedule control system that has been recognized by the cognizant Administrative
Contracting Officer (ACO) as:
(1) Complying with the earned
value management system criteria provided in NASA Policy Directive 9501.3,
Earned Value Management, or DoD 5000.2-R, Mandatory
Procedures for Major Defense Acquisition Programs and Major Automated
Information Systems Acquisition Programs; or
(2) Conforming with the full
intentions of the guidelines presented in ANSI/ANSI/EIA Standard 748,
Industry Guidelines for Earned Value Management Systems.
(d) The Government may require
integrated baseline reviews. Such reviews shall be scheduled as early as
practicable and should be conducted within 180 calendar days after contract
award, exercise of significant contract options, or incorporation of major
modifications. The objective of the integrated baseline review is for the
Government and the Contractor to jointly assess areas, such as the Contractor's
planning, to ensure complete coverage of the statement of work, logical
scheduling of the work activities, adequate resourcing,
and identification of inherent risks.
(e) The Contractor shall provide
access to all pertinent records, company procedures, and data requested by the
ACO, or authorized representative, to:
(1) Show proper implementation
of the procedures generating the cost and schedule information being used to
satisfy the M/CPR contractual data requirements to the Government; and
(2) Ensure continuing
application of the accepted company procedures in satisfying the M/CPR data
item.
(f) The Contractor shall submit
any substantive changes to the procedures and their impact to the ACO for
review.
(g) The Contractor shall require
a subcontractor to furnish M/CPR in each case where the subcontract is other
than firm-fixed-price, time-and-materials, or labor-hour; is 12 months or more
in duration; and has critical or significant tasks related to the prime
contract. Critical or significant tasks shall be defined by mutual agreement
between the Government and Contractor. Each subcontractor's reported cost and
schedule information shall be incorporated into the Contractor's M/CPR.
(End
of clause)
1852.242-77
Modified Cost Performance Report Plans.
As prescribed in 1842.7402(c),
insert the following provision;
MODIFIED
COST PERFORMANCE PLANS
(MARCH 1999)
(a) The offeror shall submit in
its proposal a written summary of the management procedures it will establish,
maintain, and use in the performance of any resultant contract to comply with
the requirements of the clause at 1852.242-76,
Modified Cost Performance Report.
(b) The offeror may propose to
use a cost/schedule control system that has been recognized by the cognizant
Administrative Contracting Officer as:
(1) Complying with the earned
value management system criteria of NASA Policy Directive 9501.3, Earned Value
Management, or DoD 5000.2-R, Mandatory Procedures for
Major Defense Acquisition Programs and Major Automated Information Systems
Acquisition Programs; or
(2) Conforming with the full
intentions of the guidelines presented in ANSI/ANSI/EIA Standard 748,
Industry Guidelines for Earned Value Management Systems.
In such cases, the offeror may
submit a copy of the documentation of such recognition instead of the written
summary required by paragraph (a) of this provision.
(End
of provision)
Enclsoure 2 - Clean
Version of Clauses
1852.242-74 Notice of Earned
Value Management System.
As prescribed in 1842.7404(a), insert the following
provision:
NOTICE
OF EARNED VALUE MANAGEMENT SYSTEM
(March 1999 [Deviation])
(a)
The offeror shall provide documentation that the cognizant Administrative
Contracting Officer (ACO) has recognized that the company Earned Value
Management System (EVMS) complies with
the guidelines in ANSI/EIA Standard 748, Industry Guidelines for Earned Value
Management Systems.
(b) If the offeror proposes to use a system
that currently does not meet the requirements of paragraph (a) of this
provision, the offeror shall submit a plan
for compliance with the EVMS guidelines, for Contracting Officer
approval.
(1) The plan shall --
(i) Describe the EVMS the offeror intends to use in performance of
the contract;
(ii) Distinguish between the offeror's existing management system and
modifications proposed to meet the guidelines;
(iii) Describe the management
system and its application in terms of the guidelines;
(iv) Provide
documentation describing the process and results, including
Government
participation, of any third-party or self-evaluation of the system's
compliance with EVMS guidelines ;
an
(v) Provide
a schedule
of events leading up to Government acceptance of the Contractor’s EVMS. This schedule should include a Progress
Assessment Review no later than 30 days after contract award and the formal
Compliance Review as soon as practicable ;
(vi) Describe the proposed
procedure for application of the EVMS requirements to subcontractors; and
(vii) Describe how the
offeror will ensure EVMS compliance for each subcontractor subject to the flowdown
requirement in paragraph (c) whose EVMS has not been recognized by the cognizant
ACO as compliant according to paragraph (a). ]
(2) The Government will review the
offeror's plan for EVMS
implementation before contract award. The offeror shall provide information and
assistance as required by the Contracting Officer to support review of the
plan.
(c) prescription for its
application at NFS 4The [o]Offerors
shall identify in [its]
their proposals the major subcontractors, or major subcontracted efforts if major
subcontractors have not been selected, planned for application of EVMS. The prime contractor and the Government shall
agree to subcontractors selected for application of EVMS and the level of
implementation.
{I’m confused
by the rewrite of this paragraph (c). In the first sentence, you reference the
threshold in 7402(a). There are two thresholds in this paragraph -
$20M and $50M. Also, this cross
reference doesn’t capture the types of contacts that are excluded from EVM in the
prescription for the provision. I’m not sure what the first half
of the 3rd sentence
is saying. Ensuring compliance is a
contractual obligation and shouldn’t be referenced in a provision. Are you
trying to say that the offeror needs
to get assurance from the sub that it’s EVMS has been recognized by the ACO, or
submit a plan for doing so? Is the second half of the 3rd sentence saying
that the sub’s plan for
getting ACO recognition needs to be incorporated into
the plan submitted by the offeror?}
(c) The EVMS requirement shall be flowed down to
subcontracts
in
accordance with the criteria in NFS 1842.7403. The offeror shall identify in its offer the
subcontractors, or major
subcontracted effort if major subcontractors have not been selected, subject to the EVMS
requirement. Before contract award,
the offeror
and NASA
will agree on the subcontractors subject to the EVMS requirement and the level of
compliance (i.e., guidelines or principles).
(End
of provision)
Alternate I (Deviation)
As prescribed in 1842.7404(a), substitute the
following paragraph (b) for paragraph (b) of the basic provision:
(b)(1)
If the offeror proposes to use a system that does not meet the requirements of
paragraph (a) of this provision, the offeror shall submit a plan for
Contracting Officer approval demonstrating how the company EVMS complies with
the following principles specified in ANSI/EIA Standard 748:
(i)
Plan all work for the project to completion.
(ii)
Break down the project work into finite pieces that can be assigned to a
responsible person or organization for control of technical, schedule, and cost objectives.
(iii)
Integrate project work, schedule, and cost objectives into a performance measurement baseline plan against which
accomplishments may be measured, and control changes to the baseline.
(iv)
Use actual costs incurred and recorded in accomplishing the work performed.
(v)
Objectively assess accomplishments at the work performance level.
(vi)
Analyze significant variances from the plan, forecast impacts, and prepare an
estimate at
completion based on performance to date and work to be performed.
(vii)
Incorporate Earned Value Management into the project’s decision-making and
review processes.
(2) The plan
shall –
(i) Describe the EVMS
the offeror intends to use in performance of the contract;
(ii) Distinguish between
the offeror's existing management system and modifications proposed to meet the
principles;
(iii) Describe the
management system and its application in terms of the principles;
(iv) Describe the
proposed procedure for administration of the principles as applied to
subcontractors; and
(v) Provide
documentation describing the process and results, including
any Government
participation, of any third-party or self-evaluation of the system's
compliance with EVMS principles.
(3) NASA will review the offeror's plan
before contract award. The offeror shall provide information and assistance as
required by the Contracting Officer to support review of the plan.
1852.242-75 Earned Value
Management Systems.
As prescribed at 1842.7404(b),
insert the following clause:
EARNED
VALUE MANAGEMENT SYSTEM
(MARCH 1999) [(Deviation)]
(a) In the performance of this contract, the Contractor shall use an
earned value management system (EVMS) that has been recognized by the cognizant
Administrative Contracting Officer (ACO) as complying with the guidelines
specified in ANSI/EIA Standard 748, Industry Guidelines for Earned Value
Management Systems.
(b) If, at the time of award, the
Contractor's EVMS has not been recognized by the ACO as complying with the EVMS
guidelines, the Contractor shall apply the system to the contract and shall
take timely action to implement its plan to obtain compliance. The Contractor shall follow and implement the
approved compliance plan in a timely fashion.
The Government will conduct a Compliance Review to assess the
contactor’s compliance with its plan, and if the Contractor does not follow the
approved implementation schedule or correct all resulting system deficiencies
identified as a result of the compliance review within a reasonable time, the
Contracting Officer may take remedial action, that may include, but is not
limited to, a reduction in fee.
(c) The Government will require integrated
baseline reviews. Such reviews shall be scheduled as early as practicable and
should be conducted within 180 calendar days after contract award or exercise
of significant contract options; or within two months after distribution of a
supplemental agreement that implemented a significant funding realignment or
effected a significant change in contract requirements. The objective of IBRs is
for the Government and the Contractor to jointly assess the Contractor's
baseline to be used for performance measurement to ensure complete coverage of
the statement of work, logical scheduling of the work activities, adequate
resourcing, and identification of inherent risks.
(d) Unless a waiver is granted by the ACO,
Contractor proposed EVMS changes require approval of the ACO prior to
implementation. The ACO shall advise the Contractor of the acceptability of
such changes within 30 calendar days after receipt of the notice of proposed
changes from the Contractor. If the advance approval requirements are waived by
the ACO, the Contractor shall disclose EVMS changes to the ACO and provide an
information copy to the NASA Contracting Officer at least 14 calendar days
prior to the effective date of implementation.
(e) The Contractor agrees to provide access
to all pertinent records and data requested by the ACO or a duly authorized representative.
Access is to permit Government surveillance to ensure that the EVMS complies,
and continues to comply, with the criteria referenced in paragraph (a) of this
clause.
(f) The Contractor shall be responsible for
ensuring that the subcontractors identified below comply with the EVMS
requirements at the specified level. If
the subcontractor does not have an EVMS that has been recognized by the ACO as
compliant with ANSI/EIA 748, the prime contractor shall conduct Compliance
Reviews of subcontractors’ EVMS in the same manner as described at paragraph
(b) of this clause. (Insert list of
applicable subcontractors and the level of compliance (i.e., guidelines or
principles)
(g)
If the contractor identifies a need to deviate from the agreed baseline by
working against an Over Target Baseline or Over Target Schedule, the contractor
shall submit to the Contracting Officer a request for approval to begin
implementation of an Over Target Baseline or Over Target Schedule. This request shall include a top-level
projection of cost and/or schedule growth, whether or not performance variances
will be retained, and a schedule of implementation for the rebaselining. The Government will authorize or deny the
request within 30 calendar days after receipt of the request. Failure of the Government to respond within
this 30-day period constitutes approval of the request. For cost-reimbursement contracts, the
contract budget baseline shall exclude changes for cost growth increases, other
than for authorized changes to the contract requirements.
(End
of clause)
Alternate I (Deviation)
As prescribed in 1842.7404(b), substitute the
following paragraph (a) for paragraph (a) of the basic clause:
(a) In the
performance of this contract, the Contractor shall use an earned value
management system (EVMS) that has been recognized by the cognizant ACO as
complying with the guidelines of ANSI/EIA-748, Industry Guidelines for Earned
Value Management Systems, or by NASA as complying with the principles specified
in ANSI/EIA Standard 748. In applying
EVM to this contract, the contractor need only comply with the following
principles as opposed to complying with the ANSI/EIA 748 guidelines:
(1) Plan all work for the project to
completion.
(2)
Break down the project work into finite pieces that can be assigned to a
responsible person or organization for control of technical, schedule, and cost objectives.
(3)
Integrate project work, schedule, and cost objectives into a performance measurement baseline plan against which
accomplishments may be measured, and control changes to the baseline.
(4)
Use actual costs incurred and recorded in accomplishing the work performed.
(5)
Objectively assess accomplishments at the work performance level.
(6)
Analyze significant variances from the plan, forecast impacts, and prepare an
estimate at
completion based on performance to date and work to be performed.
(7)
Incorporate Earned Value Management into the project’s decision-making and
review processes.
