Companies that are interested in bidding on government contracts are finding stipulations for Earned Value Management (EVM) reporting becoming commonplace. Organizations often believe buying an earned value software tool will satisfy these requirements; however this is not the case. An Earned Value Management System (EVMS) is not a tool or set of tools, but a system, as the last word demonstrates. An EVMS implementation is a complete and disciplined system of project performance measurement. Within such a system, software tools play an important, but by no means singular role. The best EVMS software tool on the market will not make your organization compliant; the best system however, will make it compliant.
The ANSI/EIA-748 guidelines require an integrated EVM methodology that includes people, tools, and processes. In addition, all project stakeholders must demonstrate a deep commitment, knowledge and understanding of the entire system and prove that the system is in compliance throughout the project lifecycle.
Based on the contract value, requirements differ depending on whether you are responding to a DoD RFP or a federal agency RFP. Also, the federal agencies themselves have different dollar thresholds. Finally, some agencies only require you to comply with a core number of ANSI/EIA-748 criteria as opposed to the full 32.
In summary, most government contracts above a certain dollar threshold will require an EVMS. Your response to these RFP’s may allow you to demonstrate the state of your EVMS implementation in different ways.
- If the dollar value is low enough, you may be able to respond with a plan demonstrating how you are going to implement an EVMS and satisfy the contract requirements. Understand that if you win the contract, you will be under pressure to successfully implement your EVMS system at a time when your resources will be focused on meeting your contract obligations.
- If the dollar threshold is higher, you will be required to have an EVMS system in place already. In some cases above a certain dollar threshold, your EVMS system will require validation. This is a rigorous review of your complete implementation, involving staff interviews, process reviews and demonstration of tool integration.
All of these variables: which government entity you are responding to, the dollar threshold, how much of the ANSI/EIA-748 criteria will be required, whether or not you need an EVMS in place already and contract risk determine how you can respond to the EVMS part of the RFP.
The table below shows some of the differing requirements by federal department:
| AGENCY | THRESHOLDS | EVM REQUIREMENTS | IBR |
|---|---|---|---|
| Commerce | > or = $25M | Rqd. on IT contracts | |
| Defense | > or = $20M < $20M > or = $100M | Rqd. on cost or incentive contracts May be rqd. on cost or incentive contracts if high risk Validation rqd. on cost or incentive contracts | Within 180 days after contract award, exercise of options, and major modifications |
| Energy | > or = $20M > $50M | Compliance Rqd. Validation Rqd. | |
| FAA (also see DOT) | > or = $10M | All contracts | Within 90-180 days after contract award or program baseline is established |
| Health & Human Services | > or = $10M > or = $25M | Compliance Rqd. Validation Rqd. | Within 90 days after contract award. May conduct pre-award IBR |
| Homeland Security | $5M-$20M > or = $20M > or = $50M | Discretionary Compliance Rqd. Validation Rqd. | |
| Housing and Urban Dev. | > or = $5M | Rqd. on major IT contracts | |
| Intelligence Community | Follows DoD requirements | Follows DoD requirements | |
| Interior | > or = $20M | All contracts | All contracts |
| NASA | > or = $20M > or = $100M | Compliance Rqd. Validation Rqd. | |
| Transportation | > or = $20M > $8M - <$20M < $8M | Tier I 32 guidelines Tier II 26 guidelines Tier III 21 guidelines | Tier I and II As needed for Tier III |
| Veterans Affairs | > or = $20M > or = $50M | Compliance rqd. Validation rqd. |
Note: The table above is a guide and may be changed at any time. You should check with the specific agency regarding current thresholds, EVM requirements and other contractual stipulations.
How Ten Six Can Help?
Ten Six can help you satisfy the EVMS part of your RFP response, allowing you to focus on the technical and commercial aspects that make your company unique. We will cover all aspects of the EVMS RFP requirements: the approach you are going to take to successfully implement the system, demonstrate how you are going to manage the project, track progress and produce the required reports. We have helped major defense contractors, biotech and technology companies put together a winning proposal.
If you are responding to an RFP that has an EVMS requirement, then call us today. Working together, we will save you time, reduce your risk and help you win! Call us now (703) 910-2600.