# 534.201 Policy.

(a) Policy. This Subpart provides policies and procedures for incorporating an Earned Value Management System (EVMS) (see FAR 2.101) in GSA contracts, for the exclusive use of GSA, pursuant to OMB Circular A-11, 7. It is a results-based tool that can also provide for the preclusion of possible problems or concerns during the project.

(b) Definition of major acquisition. OMB Circular A-11, 7, Capital Planning Guide Supplement, refers to the definition of “major acquisition” as a capital project that requires special management attention because of its: (1) importance to an agency’s mission; (2) high development, operating, or maintenance costs; (3) high risk; (4) high return; or (5) significant role in the administration of an agency’s programs, finances, property, or other resources.

(c) Applicability. It is GSA policy to define major acquisition for the purposes of EVMS as follows:

(1) GSA acquisitions valued at $20 million or more. Cost-reimbursement or incentive contracts and orders (see FAR subparts 16.3 and 16.4) shall require a formally validated EVMS (in accordance with ANSI/EIA-748-A Earned Value Management System Acceptance Guide (see 534.201(d) below)). EVMS requirements shall be included in commercial and non-commercial contracts, MAS orders, and GWAC orders when the requirements entail developmental or modernization work, as defined by OMB’s definition of Developmental/Modernization/Enhancement in A-11, 7. Firm-fixed price, time-and-materials, and labor hour contracts and orders that are solely for commercial items or services, as defined at FAR 2.101, should not normally include EVMS.

(2) GSA acquisitions valued at less than $20 million. EVMS requirements apply for contracts and orders of any type valued at less than $20 million if the program manager and contracting officer determine that EVMS is needed in that instance. This rationale shall be documented in the acquisition plan for the procurement.

(d) Industry Guides. Earned Value Management is based upon the application of an international standard, ANSI/EIA-748-A (June 2007). Specific EVMS Guides approved for use by industry and U.S. Government for implementation of various aspects of ANSI/EIA-748-A are maintained by the National Defense Industrial Association (NDIA). These Guides include:

(1) EVMS Application Guide.

(2) EVMS Surveillance Guide.

(3) EVMS Intent Guide.

(4) EVMS System Acceptance Guide.

(5) Program Managers’ Guide to the Integrated Baseline Review Process.

(6) Integrating Risk Management with Earned Value Management.

(e) The Guides can be found at http://www.ndia.org/evm.