FAR 34.201—Policy.
Plain-English Summary
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.
Key Rules
EVMS required for major development
An EVMS is required for major acquisitions for development, consistent with OMB Circular A-11. Agencies may also require EVMS on other acquisitions under their own procedures, so applicability is not limited only to the largest programs.
Noncompliant systems need a compliance plan
If an offeror proposes to use a system that is not already determined compliant with EIA-748, the offeror must submit a comprehensive plan to achieve compliance. The lack of current compliance does not automatically disqualify the offeror from award.
Monthly EVMS reporting minimum
For contracts where EVMS applies, contracting officers must require contractors to submit EVMS monthly reports at a minimum. This establishes a recurring oversight mechanism for cost and schedule performance.
Subcontractor requirements flow down
EVMS requirements apply to subcontractors using the same rules that apply to the prime contractor. The prime cannot treat subcontract EVMS as optional if the prime contract is subject to EVMS.
Proposal plan must be evaluated before award
When an offeror is required to provide an EVMS plan with its proposal, the contracting officer must determine whether the proposed plan is adequate before making award. This makes EVMS readiness a pre-award responsibility, not just an administration issue.
Responsibilities
Contracting Officer
Determine whether EVMS applies to the acquisition, require monthly EVMS reports for covered contracts, evaluate the adequacy of any required EVMS plan before award, and ensure subcontractor EVMS requirements are applied consistently with the prime contract.
Offeror
If proposing a system not yet compliant with EIA-748, submit a comprehensive compliance plan with the proposal when required, and demonstrate that the proposed EVMS approach is adequate for the acquisition.
Contractor
Operate and maintain an EVMS on covered contracts, provide monthly EVMS reports, and ensure subcontractors subject to EVMS comply with the same requirements.
Subcontractor
Comply with EVMS requirements when they are flowed down under the subcontract, using the same rules that apply to the prime contractor.
Agency
Follow OMB Circular A-11 and agency procedures to determine when EVMS is required on acquisitions beyond major development efforts and to support consistent application of EVMS policy.
Practical Implications
EVMS is a planning and control requirement, not just a reporting formality; contractors should expect scrutiny of cost, schedule, and performance data throughout the life of the contract.
A noncompliant EVMS does not automatically bar award, but the offeror must be ready to show a credible path to compliance, so weak or vague compliance plans can become a source of evaluation risk.
Monthly reporting is the baseline expectation on covered contracts, so contractors need internal processes that can produce timely, accurate data every month without last-minute reconciliation.
Subcontractor flowdown is a common pitfall: primes must ensure EVMS obligations are clearly included in subcontracts and that subcontract performance data is available when needed.
Contracting officers should address EVMS applicability and proposal adequacy early, because waiting until after award can create administration problems, delayed baselines, and weak performance visibility.
Official Regulatory Text
(a) An Earned Value Management System (EVMS) is required for major acquisitions for development, in accordance with OMB Circular A-11. The Government may also require an EVMS for other acquisitions, in accordance with agency procedures. (b) If the offeror proposes to use a system that has not been determined to be in compliance with the Electronic Industries Alliance Standard 748 (EIA-748), the offeror shall submit a comprehensive plan for compliance with these EVMS standards. Offerors shall not be eliminated from consideration for contract award because they do not have an EVMS that complies with these standards. (c) As a minimum, contracting officers shall require contractors to submit EVMS monthly reports for those contracts for which an EVMS applies. (d) EVMS requirements will be applied to subcontractors using the same rules as applied to the prime contractor. (e) When an offeror is required to provide an EVMS plan as part of its proposal, the contracting officer will determine the adequacy of the proposed EVMS plan prior to contract award.