Federal and Industry Guidelines for Implementing EVM
The benefits of using EVM are singularly dependent on the data from the EVM system. Organizations must be able to evaluate the quality of an EVM system in order to determine the extent to which the cost, schedule, and technical performance data can be relied on for program management purposes. In recognition of this, the American National Standards Institute (ANSI) and the Electronic Industries Alliance (EIA) jointly established a national standard for EVM systems in 1998.The most recent EVMS standard, EIA-748-D, was revised in January 2019.
OMB imposed the use of EVM for all major capital acquisitions in accordance with OMB Circular A-11 in 2006. OMB states in its 2019 Capital Programming Guide that all major acquisitions with development effort are to require that contractors use an EVM system that meets the EIA-748 guidelines.49
The EVM guidelines are often viewed as common sense program management practices that would be necessary to successfully manage any development program, regardless of size, cost, or complexity. Moreover, they have been adopted by industry, major U.S. government agencies, and government agencies in foreign countries including Australia, Canada, Japan, Sweden, and the United Kingdom. Furthermore, when reviewing agencies’ annual budget requests, OMB uses agency-reported EVM data to decide which acquisition programs to continue funding. Accordingly, government and industry consider EVM a worldwide best practice management tool for improving program performance.
As noted earlier, OMB requires the use of EVM on all major acquisition programs for development. Further, it must be compliant with agencies’ implementation of the EIA-748 guidelines. Several other guides are available to help agencies implement EVM systems, and they are listed in table 20.
Table 20: EVM Implementation Guides
| Guide | Applicable agency | Description |
|---|---|---|
| DOD, OSD (AT&L), The Program Manager’s Guide to the Integrated Baseline Review Process (Washington, D.C.: April 2003). | DOD | Defines the IBR’s purpose, goals, and objectives; discusses how it leads to mutual understanding of risks inherent in contractors’ performance plans and management control systems; and explains the importance of formulating a plan to handle and mitigate these risks |
| NDIA, National Defense Industrial Association (NDIA) Integrated Program Management Division (IPMD) Surveillance Guide (Arlington, VA.: November 2018). | All | Defines a standard industry approach for monitoring whether an EVM system satisfies the processes and procedures outlined in the EIA-748 guidelines |
| NDIA, National Defense Industrial Association (NDIA) Integrated Program Management Division (IPMD) Earned Value Management Systems EIA-748-D Intent Guide (Arlington, VA: August 2018). | All | Defines in detail the management value, intent, and objective evidence for all 32 guidelines. Contractors use it to assess initial compliance and perform implementation surveillance |
| NDIA, National Defense Industrial Association (NDIA) Integrated Program Management Division (IPMD, Earned Value Management System Acceptance Guide (Arlington, VA: September 2019). | All | Provides guidance and a standard framework to prepare an organization to successfully demonstrate compliance with EIA-748 guidelines |
| NDIA, National Defense Industrial Association (NDIA) Integrated Program Management Division (IPMD) Earned Value Management Systems Application Guide (Arlington, VA: May 2018). | All | Defines a standard approach for all organizations implementing an EVM system through all phases of acquisition |
| DOD, OUSD AT&L (PARCA), Earned Value Management System Interpretation Guide (Washington, D.C.: February 2015). | DOD | Provides the basis to be used for the Department of Defense to assess EVM compliance with the EIA-748 guidelines |
| DOE, Earned Value Management System (EVMS), DOE G 413.3-10A (Washington, D.C.: March 2012). | DOE | Provides approaches for implementing the EVMS requirements of DOE 413.3B in compliance with EIA-748 guidelines |
| Federal Aviation Administration, Earned Value Management Guide (Washington, D.C.: March 2012). | FAA | Provides implementation guidance for EVM systems use on FAA programs and contracts |
| Federal Aviation Administration, Earned Value Management System Acceptance Guide (Washington, D.C.: March 2012). | FAA | Provides guidance for the review, validation and formal acceptance of EVM systems for use on FAA programs |
| Federal Aviation Administration, Program Performance Surveillance Guide (Washington, D.C.: March 2012). | FAA | Provides procedures for conducting program performance surveillance of FAA programs |
Source: GAO. | GAO-20-195G
See Office of Management and Budget, Capital Programming Guide, I.5.5.4, “Planning for Acquisition Management.” (Washington, D.C.: December 2019). The OMB requirements are also reflected in the FAR at 48 C.F.R. subpart 34.2.↩︎