For cost or incentive contracts and subcontracts valued at $20,000,000 or more, the rule requires an earned value management system that complies with the guidelines in the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned
Value Management Systems (ANSI/EIA-748).
For cost or incentive contracts and subcontracts valued at $50,000,000 or more, the rule requires an earned value management system that has been determined by the cognizant Federal agency (as defined in FAR 2.101) to be in compliance with the guidelines in ANSI/
EIA-748.
For cost or incentive contracts and subcontracts valued at less than $20,000,000, the rule provides that application of earned value management is optional and is a risk-based decision.
For firm-fixed-price contracts and subcontracts of any dollar value, the rule discourages the application of earned value management.
The Defense Contract Management Agency is assigned responsibility for determining earned value management compliance when DoD is the cognizant Federal agency.
Requirements for contractor cost/schedule status reports are eliminated.
Effective April 23, 2008, The Department of Defense (DoD) has issued a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to update requirements for DoD contractors to establish and maintain earned value management systems.
The rule also eliminates requirements for DoD contractors to submit cost/schedule status reports. The DFARS changes in this rule include the following: