FAR 34.2—Subpart 34.2

Policy.

FAR 34.201 sets the basic policy for when the Government uses Earned Value Management Systems (EVMS) on federal acquisitions and how those systems are handled in competition, contract administration, and subcontracting. It covers five main topics: when EVMS is required for major acquisitions for development, when agencies may require EVMS on other acquisitions, what happens if an offeror proposes a system that is not yet compliant with EIA-748, the minimum monthly reporting requirement for contracts subject to EVMS, how EVMS requirements flow down to subcontractors, and the contracting officer’s duty to evaluate the adequacy of a proposed EVMS plan before award when one is required. In practice, this section is about schedule and cost control on complex development efforts, ensuring the Government can measure performance against a disciplined baseline and detect problems early. It also makes clear that lack of a compliant EVMS is not, by itself, a basis to exclude an offeror from award if the offeror can propose a credible compliance plan. For contractors, this means EVMS readiness, reporting discipline, and subcontractor oversight can become material proposal and administration issues. For contracting officers, it means deciding when EVMS applies, checking proposal adequacy, and ensuring reporting and flowdown requirements are properly enforced.

Integrated Baseline Reviews.

FAR 34.202 explains when and how the Government uses an Integrated Baseline Review (IBR) in contracts that require an Earned Value Management System (EVMS). It covers the purpose of the IBR, what the Government and contractor jointly assess, and the specific elements of the project baseline that are examined: technical content, performance budgets, resources, schedules, risk, management control systems, the project’s technical plan, schedule realism, the Performance Measurement Baseline (PMB), personnel/facilities/equipment availability, and the effectiveness of integrated technical/schedule/cost planning and baseline control. It also addresses timing and conduct under agency procedures, and special requirements for pre-award IBRs, including solicitation instructions and whether offerors may be reimbursed for their costs. In practice, this section is meant to ensure the baseline is realistic and executable before performance gets too far along, so both sides understand risks, assumptions, and control mechanisms early enough to manage them. For contractors, it is a readiness and credibility checkpoint; for contracting officers and program teams, it is a tool to validate that the proposed plan can support cost, schedule, and technical objectives.

Solicitation provisions and contract clause.

FAR 34.203 tells contracting officers when to include Earned Value Management System (EVMS) solicitation provisions and the EVMS contract clause. It covers three related situations: a preaward Integrated Baseline Review (IBR), a postaward IBR, and the general requirement to use an EVMS. In practice, this section ensures the solicitation and resulting contract clearly state whether the Government will conduct an IBR before award or after award, and whether the contractor must maintain an EVMS throughout performance. The rule matters because EVMS and IBR requirements affect proposal preparation, pricing, schedule planning, baseline development, and post-award performance management. For contractors, it signals that they may need to demonstrate EVMS capability and be ready for detailed baseline scrutiny. For contracting officers, it is a mandatory prescription rule that drives the exact FAR provisions and clause to include when the underlying acquisition requires EVMS.