(1) DoD applies the earned value management system requirement as follows:
(i) For cost or incentive contracts and subcontracts valued at $20,000,000 or more, the earned value management system shall comply with the guidelines in the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748).
(ii) For cost or incentive contracts and subcontracts valued at $50,000,000 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 ANSI/EIA-748.
(iii) For cost or incentive contracts and subcontracts valued at less than $20,000,000-
(A) The application of earned value management is optional and is a risk-based decision;
(B) A decision to apply earned value management shall be documented in the contract file; and
(C) Follow the procedures at PGI 234.201(1)(iii) for conducting a cost-benefit analysis.
(iv) For firm-fixed-price contracts and subcontracts of any dollar value-
(A) The application of earned value management is discouraged; and
(B) Follow the procedures at PGI 234.201(1)(iv) for obtaining a waiver before applying earned value management.
(2) When an offeror proposes a plan for compliance with the earned value management system guidelines in ANSI/EIA-748, follow the review procedures at PGI 234.201(2).
(3) The Defense Contract Management Agency is responsible for determining earned value management system compliance when DoD is the cognizant Federal agency.
(4) See PGI 234.201(4) for additional guidance on earned value management.
