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Lessons Learned

The best practices and themes shared here represent findings from the API EVM Interpretation and Issue Resolution (IIR) Process.

Material Planning and Scheduling in an IMS

The API IPM Division has fielded several IIR requests seeking clarification on how material is expected to be planned and scheduled in an Integrated Master Schedule (IMS) for contracts with a requirement for a compliant Earned Value Management System (EVMS). The December 2021 memo, Expectations for Earned Value Management System Material Planning and Scheduling, acknowledges the utility of using E/MRP systems for managing material, but maintains that “this does not supplant the supplier’s responsibility to use an IMS for internal management benefit and control in compliance with the Guidelines in the Industry EVMS Standard, EIA-748, as outlined in the EVMSIG."

EVM on IDIQ Contracts

Example contract/program

Program to be awarded as an indefinite delivery/indefinite quantity IDIQ) contract type with Task Orders (TO) to be released over the lifespan of the contract. IDIQs are a type of contract that provide for an indefinite quantity of supplies or services during a fixed period of time.

  • Contract Type: TO’s will be released individually as Cost Plus Fixed Fee.
  • Contract Value: Individual TOs generally will be less than $20M individually, but possibly some over $20M; IDIQ will be valued greater than $20M in total.
  • Scope: These efforts will have a mix of development and service activities.
  • Duration: Contract is expected to run for 7 years.
EVM Applicability & Reporting
  • Per the DoDI 5000.02, "For Indefinite Delivery/Indefinite Quantity contracts, EVM will be applied to the individual task orders or group of related task orders."
  • A single TO or group of related TO’s that meet the thresholds for EVM, have scope that warrants the use of EVM, and have discrete, measurable, and schedulable activities, should have EVM applied.
  • EVM is not applied to the IDIQ in total but the DFARS clauses and EVM CDRLs must be on the total IDIQ with a note stating they are applied at the TO or group of related TO level.
EVM Application of the IPMR on IDIQ / Task Orders / CLINs

The IPMR replaced the legacy CPR and IMS DIDs in 2012, therefore the IPMR should be used for new contractual efforts. The FAR definition of "contract" at FAR 2.101 "includes all types of commitments that obligate the Government to an expenditure of appropriated funds....in addition to bilateral instruments, contracts include (but are not limited to) awards and notices of awards; job orders or task letters issued under basic ordering agreements; letter contracts; orders, such as purchase orders, under which the contract becomes effective by written acceptance or performance; and bilateral contract modifications." Thus, as an example, each new task order issued is a new "contract" and should use the latest DID, in this case being the IPMR.

EVM on FPIF Contracts

Example contract/program

Program originally planned for Firm Fixed Price (FFP) but planned now as a Fixed Price Incentive Firm (FPIF) contract due to acquisition decisions. EVM was not planned to be included and no EVM DFARS clauses were to be invoked.

  • Contract Type: FPIF (but originally planned as FFP).
  • Contract Value: Contract will be valued greater than $50M.
  • Scope: Work efforts are as-needed refurbishment and production in nature.
  • Duration: Contract is expected to run for 12 years.
EVM Applicability & Reporting
  • Per the DoDI 5000.02, "EVM is required for Fixed-Price Incentive Fee development and integration contracts with measurable and discrete work scope. In cases where the work scope is not measurable and discrete, program offices should follow the process to obtain a DFARS deviation."
  • In this case, the work scope does not lend itself to the full rigors of EVM and EVMS so a deviation should be sought; other measures must be in place on contract to ensure the Government receives cost and schedule status, and that Program Management principles are followed
  • If a deviation was not warranted, DFARS and IPMR CDRLs would be placed on contract.