Earned Value Management Implementation Guide

Earned Value Management Implementation Guide
Purpose: This guide provides the uniform procedures which have been approved by the
Commander, Defense Contract Management Command (DCMC) under assigned
authority as the Department of Defense's Executive Agent for Earned Value
Management Systems. This document has been coordinated by SAF/AQ, SAF/FM,
ASA(RDA), ASN(RD&A), BMDO/PO, NSA/CSS, and DCAA.This document
provides guidance to be used during the implementation and surveillance of Earned
Value Management Systems (EVMS) established in compliance with DoD Criteria.
Users of this guide are encouraged to submit recommendations for refined procedures,
through appropriate channels, to DCMC for consideration.

Table of Contents
Revisions Page
PART I EARNED VALUE MANAGEMENT CONCEPTS &CRITERIA
Section 1 Earned Value Management
Section 2 Criteria
Section 3 Criteria Discussion
PART II PROCEDURES FOR GOVERNMENT USE OF EARNED VALUE
Section 1 Applying Earned Value Management
Section 2 Pre-contract Activities
Section 3 Post-award Activities
Section 4 EVMS Reviews
FIGURES
Part 1 3-1 Criteria-Process Matrix
Part 2 2-1 EVMS Solicitation Process
Part 2 3-1 SurveillanceProcess
Part 2 3-2 System Change Process
Part 2 4-1 EVMS Post Contract Process
APPENDICES
A. Solicitation and Contract Clauses
B. Earned Value Management System Evaluation Guide
C. Review Reports
D. Glossary Of Terms
E. Advanced Agreement
F. Memorandum of Agreement

Assistant Secretary of the Air Force (Acquisition) Washington, D.C. 20330-1060 SAF/AQ EVMS
GUIDE
Assistant Secretary of theArmy (RD&A) Washington, D.C. 20310 DA PAMPHLET 715-5
Assistant Secretary of the Navy (RD&A) Washington DC 20360-5000 NAVSO PAMPHLET 3627
Headquarters, Ballistic Missile Defense Organization Washington, D.C. 20301-7100 BMDO GUIDE
7007G
National Security Agency Ft. George G. Meade, MD 20755-6000. NSA/CSS HANDBOOK N255-01

Headquarters Defense Logistics Agency Ft Belvoir, VA 22060-6221 DLAHANDBOOK 8400.2
Headquarters Defense Contract Audit Agency Ft Belvoir, VA 22060-6221 DCAA PAMPHLET
7641.47
___________________________________________________________________
Supersedes AFSCP/AFCC/AFLCP 173-5, AMC-P 715-5, NAVSO P3627, DLAH 8400.2, DCAA
P7641.47 dated 1 Oct 1987. and AFSCP/AFLCP 173-6, AMC-P 715-10, NAVMAT P5243, DLAH
8315.1, DCAAP 7641.46 dated 1 October 1984
OPR: DLA/AQOFOCR: SAF/FMC SAF/AQX NSA/N25 AMC/AMCRM-E ASN (RD&A) AP& P DCAA/OAD
BMDO/PO

PART I: EARNED VALUE MANAGEMENT CONCEPTS & CRITERIA
1-0. The purpose of this Part of the guide is to provide guidance for understanding earned value
management concepts, define objective criteria for earned value management systems and provide
guidance in interpreting those criteria for use on large, risky, cost basedgovernment programs.
Procedural aspects for Government personnel for specifying and using earned value management
systems and for evaluating those systems are contained in Part II.
Section 1
Earned Value Management
1-1. Concepts of Earned Value Management. Earned value management is a tool that allows both
government and contractor program managers to have visibility into technical, cost, andschedule
progress on their contracts. The implementation of an earned value management system is a
recognized function of program management. It ensures that cost, schedule and technical aspects of
the contract are truly integrated.
1-2. Management Needs. A fundamental requirement of the acquisition and/or modification of
major systems is insight into contractors' progress for programmanagement purposes. The
implementation of an earned value management system (EVMS) on selected contracts within
applicable government programs ensures the program manager is provided with contractor cost
and schedule performance data which:
(1) relate time-phased budgets to specific contract tasks and/or statements of work;
(2) indicate work progress;
(3) properly relate cost, schedule and...