Defense Federal Acquisition Regulation Supplement; Earned Value Management Systems (DFARS Case 2005-D006), 21846-21850 [E8-8706]
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21846
Federal Register / Vol. 73, No. 79 / Wednesday, April 23, 2008 / Rules and Regulations
procedures of DoD. Therefore,
publication for public comment under
41 U.S.C. 418b is not required.
However, DoD will consider comments
from small entities concerning the
affected DFARS subparts in accordance
with 5 U.S.C. 610. Such comments
should cite DFARS Case 2007–D027.
C. Paperwork Reduction Act
The Paperwork Reduction Act does
not apply, because the rule does not
impose any information collection
requirements that require the approval
of the Office of Management and Budget
under 44 U.S.C. 3501, et seq.
List of Subjects in 48 CFR Parts 225 and
252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 225 and 252
are amended as follows:
I 1. The authority citation for 48 CFR
parts 225 and 252 continues to read as
follows:
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
PART 225—FOREIGN ACQUISITION
[Removed and Reserved]
2. Section 225.7010 is removed and
reserved.
I
225.7010–1 through 225.7010–4
[Removed]
3. Sections 225.7010–1 through
225.7010–4 are removed.
I
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
252.225–7023
[Removed and Reserved]
4. Section 252.225–7023 is removed
and reserved.
I
[FR Doc. E8–8694 Filed 4–22–08; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations
System
48 CFR Parts 234, 242, and 252
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RIN 0750–AF19
Defense Federal Acquisition
Regulation Supplement; Earned Value
Management Systems (DFARS Case
2005–D006)
Defense Acquisition
Regulations System, Department of
Defense (DoD).
AGENCY:
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Final rule.
SUMMARY: 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.
EFFECTIVE DATE: April 23, 2008.
FOR FURTHER INFORMATION CONTACT: Mr.
Mark Gomersall, Defense Acquisition
Regulations System, OUSD (AT&L)
DPAP (DARS), IMD 3D139, 3062
Defense Pentagon, Washington, DC
20301–3062. Telephone 703–602–0302;
facsimile 703–602–7887. Please cite
DFARS Case 2005–D006.
SUPPLEMENTARY INFORMATION:
A. Background
I
225.7010
ACTION:
This final rule updates DFARS text
addressing earned value management
policy for DoD contracts. The rule
supplements the final FAR rule
published at 71 FR 38238 on July 5,
2006, and establishes DoD-specific
earned value management requirements,
as permitted by the FAR. The DFARS
rule is consistent with the policy in the
memorandum issued by the Under
Secretary of Defense (Acquisition,
Technology, and Logistics) on March 7,
2005, Subject: Revision to DoD Earned
Value Management Policy (available at
https://www.acq.osd.mil/dpap/ops/
policy_vault.html).
The DFARS changes in this rule
include the following:
Æ 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).
Æ 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.
Æ 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.
Æ For firm-fixed-price contracts and
subcontracts of any dollar value, the
rule discourages the application of
earned value management.
Æ The Defense Contract Management
Agency is assigned responsibility for
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determining earned value management
compliance when DoD is the cognizant
Federal agency.
Æ Requirements for contractor cost/
schedule status reports are eliminated.
DoD published a proposed rule at 71
FR 3449 on January 23, 2006. Five
sources submitted comments on the
proposed rule. A discussion of the
comments is provided below.
1. Comment: One respondent stated
that the $20,000,000 threshold for
earned value management (EVM) further
aggravates the ability to mitigate cost,
schedule, and technical risks, since
receiving EVM data below that
threshold would be helpful in assisting
leadership to make affordable decisions.
DoD Response: The rule allows for
EVM below the $20,000,000 threshold
when its application is determined to be
appropriate as the result of a costbenefit analysis.
2. Comment: Two respondents stated
that the rule should be revised to
specifically state that EVM requirements
do not apply to time-and-materials,
labor-hour, and level-of-effort contracts.
DoD Response: The rule requires EVM
to be applied only on cost and incentive
type contracts and subcontracts over
certain thresholds. EVM is discouraged
on firm-fixed-price contracts and
subcontracts of any dollar value.
Further, performance-based acquisition
management on developmental efforts,
as described in OMB Circular A–11, Part
7, focuses on the use of EVM on cost
and incentive type contracts.
3. Comment: One respondent
expressed support of the rule, but urged
that the Defense Acquisition
Regulations Council work with the
Civilian Agency Acquisition Council to
ensure that the final FAR rule is
consistent with the DFARS rule. In
particular, the respondent stated that
the FAR rule should be revised in four
areas to make it consistent with the
DFARS rule as follows: Explicitly limit
application of EVM requirements to cost
or incentive contracts; establish a fixed
dollar value for the applicability of EVM
requirements; limit integrated baseline
reviews to contract post-award; and
establish an executive agency (such as
the Defense Contract Management
Agency (DCMA)) within the
Government responsible for
Government-wide EVM system
compliance reviews.
DoD Response: The respondent’s
recommendations regarding the FAR
were addressed in the preamble to the
FAR rule published at 71 FR 38238 on
July 5, 2006. Additional changes have
been made to the DFARS rule for
consistency with the FAR rule. Those
changes include:
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Æ Relocation of EVM policy from Part
242 to Part 234.
Æ For cost or incentive contracts and
subcontracts valued at $50,000,000 or
more, replacement of the requirement
for a contracting officer’s formal
validation and acceptance with the
requirement for an EVM system that has
been determined by the cognizant
federal agency to be in compliance with
the guidelines in ANSI/EIA–748. DCMA
is assigned responsibility for
determining EVM system compliance
when DoD is the cognizant Federal
agency.
Æ Elimination of the text included in
the proposed rule at 252.242–7006(b),
which specified that the terms for
compliance with ANSI/EIA–748 for
contracts below $50,000,000 may be
subject to negotiation between the
contractor and the contracting officer;
compliance with the guidelines in
ANSI/EIA–748 is not subject to
negotiation.
Æ Addition of text in the solicitation
provision at 252.234–7001(a)(2)(ii) and
(iii) to require an offeror proposing to
use a system that has not been
determined to be in compliance with
ANSI/EIA–748, to provide information
and assistance as required by the
contracting officer to support review of
the offeror’s plan for compliance and to
provide milestones that indicate when
the offeror will be compliant.
Æ Elimination of a separate provision
and clause to address requirements for
contracts valued at $20,000,000 or more
but less than $50,000,000. The provision
and clause at 252.234–7001 and
252.234–7002 address requirements for
contracts above or below $50,000,000.
4. Comment: One respondent
recommended that the contract clause
for EVM compliance be modified to
indicate that the contract performance
report may be tailored in accordance
with the DoD Earned Value
Management Implementation Guide, in
order to reduce the burden on
contractors while still ensuring that DoD
managers receive useful information.
The memorandum issued by the Under
Secretary of Defense (Acquisition,
Technology, and Logistics) on March 7,
2005, indicates that the contract
performance report may be tailored,
based on guidance in the
implementation guide, for cost or
incentive contracts valued at $20
million or more but less than $50
million.
DoD Response: DoD does not believe
it is necessary to address tailoring of the
contract performance report within the
contract clause. The contracting officer
may tailor the report in accordance with
the DoD Earned Value Management
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Implementation Guide. A reference to
the guide has been added to the DFARS
companion resource, Procedures,
Guidance, and Information. Any
tailoring of contract performance reports
for a particular contract will be
documented in the contract data
requirements list to ensure the
contractual requirements are clear.
5. Comment: One respondent
recommended that language be added to
the contract clause to state that the
contractor is responsible for ensuring
that selected subcontractors comply
with ANSI/EIA–748.
DoD Response: Paragraph (h) of the
contract clause in the final rule specifies
that the contractor must require certain
subcontractors (or subcontractor effort if
subcontractors have not been selected)
to comply with the EVM requirements
of the clause. This includes compliance
with the EVM guidelines in ANSI/EIA–
748.
6. Comment: One respondent
recommended adding the following
language to the contract clause for
consistency with language included in
the solicitation provision: ‘‘The terms
for compliance with ANSI/EIA–748 may
be subject to negotiation between the
contractor and subcontractor. The
conduct of the integrated baseline
reviews also may be subject to
negotiation between the contractor and
subcontractor.’’
DoD Response: The cited language has
been excluded from the final rule. The
clause at 252.234–7002 requires
contractors to ensure subcontractor
compliance with the EVM requirements
of the clause, to include compliance
with the guidelines in ANSI/EIA–748.
Likewise, contractors are required to
ensure that any necessary participation
by a subcontractor in the performance of
integrated baseline reviews is in
accordance with the clause. However,
since integrated baseline reviews are a
joint assessment between the contractor
and the Government, the timing of such
reviews will necessarily be coordinated
between the parties.
7. Comment: One respondent
indicated that emphasis should be
placed on establishing a system that
requires a company-wide commitment
to standardized actual collection
systems, budgeting systems, scheduling
systems, status systems, change
management systems, and reporting
systems, rather than simply
emphasizing what threshold should be
used to apply EVM.
DoD Response: The Government can
not mandate contractor management
and budgetary control systems used
outside of Government contracts.
However, contractors that are frequently
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awarded Government contracts that
require EVM may find it in their best
interests to establish company-wide
standardized EVM systems that are in
compliance with ANSI/EIA–748.
This rule was not subject to Office of
Management and Budget review under
Executive Order 12866, dated
September 30, 1993.
B. Regulatory Flexibility Act
DoD has prepared a final regulatory
flexibility analysis consistent with 5
U.S.C. 604. A copy of the analysis may
be obtained from the point of contact
specified herein. The analysis is
summarized as follows:
This final rule amends the DFARS to
update requirements for DoD
contractors to establish and maintain
earned value management systems. The
rule revises the dollar thresholds at
which DoD applies earned value
management policy, and eliminates
requirements for DoD contractors to
submit cost/schedule status reports.
The rule supplements the FAR rule
published at 71 FR 38238 on July 5,
2006. The FAR rule provides standard
earned value management policy,
consistent with the requirements of
OMB Circular A–11, Part 7, Planning,
Budgeting, Acquisition, and
Management of Capital Assets, and the
supplement to Part 7, the Capital
Programming Guide. The OMB Circular
and its supplement implement statutory
requirements for the Government to
define the cost, performance, and
schedule, and schedule goals for major
acquisitions and to achieve, on the
average, 90 percent of the established
goals.
The FAR rule permits agency
supplementation with regard to earned
value management applicability criteria,
post-award review requirements, and
procedures for implementation of the
guidelines in American National
Standards Institute/Electronic Industries
Alliance Standard 748 (ANSI/EIA–748),
Earned Value Management Systems.
This DFARS rule establishes the DoDspecific earned value management
requirements.
The FAR rule permits agency
supplementation with regard to earned
value management applicability criteria,
post-award review requirements, and
procedures for implementation of the
guidelines in American National
Standards Institute/Electronic Industries
Alliance Standard 748 (ANSI/EIA–748),
Earned Value Management Systems.
This DFARS rule establishes the DoDspecific earned value management
requirements.
The threshold at which a DoD
contractor previously was required to
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have an earned value management
system that complied with ANSI/EIA–
748 was $73 million for contracts and
subcontracts funded with research,
development, test and evaluation
funding; and $315 million for contracts
and subcontracts funded with operation
and maintenance or procurement
funding. This DFARS rule lowers those
thresholds to a single $20 million for all
cost or incentive contracts and
subcontracts, regardless of funding type,
and establishes a new threshold of $50
million for an earned value management
system that has been determined by the
Government to be in compliance with
ANSI/EIA–748. The rule discourages the
application of earned value management
requirements to fixed-price contracts
and subcontracts of any dollar value.
During fiscal year 2006, DoD awarded
8,266 cost or incentive contracts to
small business concerns, with only 16 of
those contracts exceeding $20 million in
value. During the same fiscal year, DoD
awarded 53,585 fixed-price type
contracts to small business concerns,
with only 70 of those contracts
exceeding $20 million in value. The use
of earned value management
requirements in fixed-price contracts is
expected to be rare.
The DFARS rule mitigates the impact
on small businesses by establishing a
$20 million contract threshold for
earned value management requirements,
and discouraging the application of
earned value management requirements
to fixed-price contracts and
subcontracts, thereby establishing a very
small subset of the small business
community for which the rule would be
applicable. The cost for a small business
concern to establish a compliant earned
value management system would be a
one-time cost that the concern may
offset through cost reimbursement on
the resulting Government contract.
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C. Paperwork Reduction Act
This rule does not impose any new
information collection requirements that
require the approval of the Office of
Management and Budget (OMB) under
44 U.S.C. 3501, et seq. The contract
performance reports required by the rule
are approved under OMB Clearance
Number 0704–0188, Acquisition
Management Systems and Data
Requirements Control List.
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List of Subjects in 48 CFR Parts 234,
242, and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations
System.
Therefore, 48 CFR parts 234, 242, and
252 are amended as follows:
I 1. The authority citation for 48 CFR
parts 234, 242, and 252 continues to
read as follows:
I
Authority: 41 U.S.C. 421 and 48 CFR
Chapter 1.
234.203 Solicitation provisions and
contract clause.
PART 234—MAJOR SYSTEM
ACQUISITION
§ 234.005
[Removed]
2. Section 234.005 is removed.
3. Subpart 234.2 is added to read as
follows:
I
I
Subpart 234.2—Earned Value Management
System
Sec.
234.201 Policy.
234.203 Solicitation provisions and
contract clause.
Subpart 234.2—Earned Value
Management System
§ 234.201
Policy.
(1) DoD applies the earned value
management system requirement as
follows:
(i) For cost or incentive contracts and
subcontracts valued at $20,000,000 or
more, the earned value management
system shall comply with the guidelines
in the American National Standards
Institute/Electronic Industries Alliance
Standard 748, Earned Value
Management Systems (ANSI/EIA–748).
(ii) For cost or incentive contracts and
subcontracts valued at $50,000,000 or
more, the contractor shall have an
earned value management system that
has been determined by the cognizant
Federal agency to be in compliance with
the guidelines in ANSI/EIA–748.
(iii) For cost or incentive contracts
and subcontracts valued at less than
$20,000,000—
(A) The application of earned value
management is optional and is a riskbased decision;
(B) A decision to apply earned value
management shall be documented in the
contract file; and
(C) Follow the procedures at PGI
234.201(1)(iii) for conducting a costbenefit analysis.
(iv) For firm-fixed-price contracts and
subcontracts of any dollar value—
(A) The application of earned value
management is discouraged; and
(B) Follow the procedures at PGI
234.201(1)(iv) for obtaining a waiver
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before applying earned value
management.
(2) When an offeror proposes a plan
for compliance with the earned value
management system guidelines in
ANSI/EIA–748, follow the review
procedures at PGI 234.201(2).
(3) The Defense Contract Management
Agency is responsible for determining
earned value management system
compliance when DoD is the cognizant
Federal agency.
(4) See PGI 234.201(4) for additional
guidance on earned value management.
For cost or incentive contracts valued
at $20,000,000 or more, and for other
contracts for which EVMS will be
applied in accordance with
234.201(1)(iii) and (iv)—
(1) Use the provision at 252.234–7001,
Notice of Earned Value Management
System, instead of the provisions at FAR
52.234–2, Notice of Earned Value
Management System—Pre-Award IBR,
and FAR 52.234–3, Notice of Earned
Value Management System—PostAward IBR, in the solicitation; and
(2) Use the clause at 252.234–7002,
Earned Value Management System,
instead of the clause at FAR 52.234–4,
Earned Value Management System, in
the solicitation and contract.
PART 242—CONTRACT
ADMINISTRATION AND AUDIT
SERVICES
4. Section 242.1106 is amended by
revising paragraph (a) to read as follows:
I
242.1106
Reporting requirements.
(a) See DoDI 5000.2, Operation of the
Defense Acquisition System, for
reporting requirements for defense
technology projects and acquisition
programs.
*
*
*
*
*
242.1107–70
I
[Removed]
5. Section 242.1107–70 is removed.
PART 252—SOLICITATION
PROVISIONS AND CONTRACT
CLAUSES
6. Sections 252.234–7001 and
252.234–7002 are added to read as
follows:
I
252.234–7001 Notice of Earned Value
Management System.
As prescribed in 234.203(1), use the
following provision:
Notice of Earned Value Management
System (Apr 2008)
(a) If the offeror submits a proposal in the
amount of $50,000,000 or more—
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(1) The offeror shall provide
documentation that the Cognizant Federal
Agency (CFA) has determined that the
proposed Earned Value Management System
(EVMS) complies with the EVMS guidelines
in the American National Standards
Institute/Electronic Industries Alliance
Standard 748, Earned Value Management
Systems (ANSI/EIA–748) (current version at
time of solicitation). The Government
reserves the right to perform reviews of the
EVMS when deemed necessary to verify
compliance.
(2) If the offeror proposes to use a system
that has not been determined to be in
compliance with the requirements of
paragraph (a)(1) of this provision, the offeror
shall submit a comprehensive plan for
compliance with the guidelines in ANSI/
EIA–748.
(i) The plan shall—
(A) Describe the EVMS the offeror intends
to use in performance of the contract, and
how the proposed EVMS complies with the
EVMS guidelines in ANSI/EIA–748;
(B) Distinguish between the offeror’s
existing management system and
modifications proposed to meet the EVMS
guidelines;
(C) Describe the management system and
its application in terms of the EVMS
guidelines;
(D) Describe the proposed procedure for
administration of the EVMS guidelines as
applied to subcontractors; and
(E) Describe the process the offeror will use
to determine subcontractor compliance with
ANSI/EIA–748.
(ii) The offeror shall provide information
and assistance as required by the Contracting
Officer to support review of the plan.
(iii) The offeror’s EVMS plan must provide
milestones that indicate when the offeror
anticipates that the EVMS will be compliant
with the guidelines in ANSI/EIA–748.
(b) If the offeror submits a proposal in an
amount less than $50,000,000—
(1) The offeror shall submit a written
description of the management procedures it
will use and maintain in the performance of
any resultant contract to comply with the
requirements of the Earned Value
Management System clause of the contract.
The description shall include—
(i) A matrix that correlates each guideline
in ANSI/EIA–748 (current version at time of
solicitation) to the corresponding process in
the offeror’s written management procedures;
and
(ii) The process the offeror will use to
determine subcontractor compliance with
ANSI/EIA–748.
(2) If the offeror proposes to use an EVMS
that has been determined by the CFA to be
in compliance with the EVMS guidelines in
ANSI/EIA–748, the offeror may submit a
copy of the documentation of such
determination instead of the written
description required by paragraph (b)(1) of
this provision.
(c) The offeror shall identify the
subcontractors (or the subcontracted effort if
subcontractors have not been selected) to
whom the EVMS requirements will apply.
The offeror and the Government shall agree
to the subcontractors or the subcontracted
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effort selected for application of the EVMS
requirements. The offeror shall be
responsible for ensuring that the selected
subcontractors comply with the requirements
of the Earned Value Management System
clause of the contract.
(End of provision)
252.234–7002
System.
Earned Value Management
As prescribed in 234.203(2), use the
following clause:
Earned Value Management System (Apr
2008)
(a) In the performance of this contract, the
Contractor shall use—
(1) An Earned Value Management System
(EVMS) that complies with the EVMS
guidelines in the American National
Standards Institute/Electronic Industries
Alliance Standard 748, Earned Value
Management Systems (ANSI/EIA–748); and
(2) Management procedures that provide
for generation of timely, reliable, and
verifiable information for the Contract
Performance Report (CPR) and the Integrated
Master Schedule (IMS) required by the CPR
and IMS data items of this contract.
(b) If this contract has a value of
$50,000,000 or more, the Contractor shall use
an EVMS that has been determined by the
Cognizant Federal Agency (CFA) to be in
compliance with the EVMS guidelines as
stated in paragraph (a)(1) of this clause. If, at
the time of award, the Contractor’s EVMS has
not been determined by the CFA to be in
compliance with the EVMS guidelines as
stated in paragraph (a)(1) of this clause, the
Contractor shall apply its current system to
the contract and shall take necessary actions
to meet the milestones in the Contractor’s
EVMS plan.
(c) If this contract has a value of less than
$50,000,000, the Government will not make
a formal determination that the Contractor’s
EVMS complies with the EVMS guidelines in
ANSI/EIA–748 with respect to the contract.
The use of the Contractor’s EVMS for this
contract does not imply a Government
determination of the Contractor’s compliance
with the EVMS guidelines in ANSI/EIA–748
for application to future contracts. The
Government will allow the use of a
Contractor’s EVMS that has been formally
reviewed and determined by the CFA to be
in compliance with the EVMS guidelines in
ANSI/EIA–748.
(d) The Contractor shall submit notification
of any proposed substantive changes to the
EVMS procedures and the impact of those
changes to the CFA. If this contract has a
value of $50,000,000 or more, unless a waiver
is granted by the CFA, any EVMS changes
proposed by the Contractor require approval
of the CFA prior to implementation. The CFA
will advise the Contractor of the acceptability
of such changes as soon as practicable
(generally within 30 calendar days) after
receipt of the Contractor’s notice of proposed
changes. If the CFA waives the advance
approval requirements, the Contractor shall
disclose EVMS changes to the CFA at least
14 calendar days prior to the effective date
of implementation.
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(e) The Government will schedule
integrated baseline reviews as early as
practicable, and the review process will be
conducted not later than 180 calendar days
after (1) contract award, (2) the exercise of
significant contract options, and (3) the
incorporation of major modifications. During
such reviews, the Government and the
Contractor will jointly assess the Contractor’s
baseline to be used for performance
measurement to ensure complete coverage of
the statement of work, logical scheduling of
the work activities, adequate resourcing, and
identification of inherent risks.
(f) The Contractor shall provide access to
all pertinent records and data requested by
the Contracting Officer or duly authorized
representative as necessary to permit
Government surveillance to ensure that the
EVMS complies, and continues to comply,
with the performance criteria referenced in
paragraph (a) of this clause.
(g) When indicated by contract
performance, the Contractor shall submit a
request for approval to initiate an over-target
baseline or over-target schedule to the
Contracting Officer. The request shall include
a top-level projection of cost and/or schedule
growth, a determination of whether or not
performance variances will be retained, and
a schedule of implementation for the
rebaselining. The Government will
acknowledge receipt of the request in a
timely manner (generally within 30 calendar
days).
(h) The Contractor shall require its
subcontractors to comply with EVMS
requirements as follows:
(1) For subcontracts valued at $50,000,000
or more, the following subcontractors shall
comply with the requirements of this clause:
[Contracting Officer to insert names of
subcontractors (or subcontracted effort if
subcontractors have not been selected)
designated for application of the EVMS
requirements of this clause.]
lllllllllllllllllllll
lllllllllllllllllllll
lllllllllllllllllllll
lllllllllllllllllllll
(2) For subcontracts valued at less than
$50,000,000, the following subcontractors
shall comply with the requirements of this
clause, excluding the requirements of
paragraph (b) of this clause:
[Contracting Officer to insert names of
subcontractors (or subcontracted effort if
subcontractors have not been selected)
designated for application of the EVMS
requirements of this clause.]
lllllllllllllllllllll
lllllllllllllllllllll
lllllllllllllllllllll
lllllllllllllllllllll
(End of clause)
252.242–7001 and 252.242–7002
and Reserved]
[Removed
7. Sections 252.242–7001 and
252.242–7002 are removed and
reserved.
I
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23APR1
21850
Federal Register / Vol. 73, No. 79 / Wednesday, April 23, 2008 / Rules and Regulations
252.242–7005 and 252.242–7006
[Removed]
8. Sections 252.242–7005 and
252.242–7006 are removed.
I
[FR Doc. E8–8706 Filed 4–22–08; 8:45 am]
BILLING CODE 5001–08–P
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
50 CFR Part 679
[Docket No. 071106673–8011–02]
RIN 0648–XH33
Fisheries of the Exclusive Economic
Zone Off Alaska; Pacific Ocean Perch
in the Bering Sea and Aleutian Islands
Management Area
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Temporary rule; modification of
a closure.
AGENCY:
mstockstill on PROD1PC66 with RULES
SUMMARY: NMFS is opening directed
fishing for Pacific ocean perch in the
Eastern Aleutian District of the Bering
Sea and Aleutian Islands management
area (BSAI) for vessels participating in
the BSAI trawl limited access fishery.
This action is necessary to fully use the
2008 total allowable catch (TAC) of
Pacific ocean perch in this area
specified for vessels participating in the
BSAI trawl limited access fishery.
DATES: Effective 1200 hrs, Alaska local
time (A.l.t.), April 18, 2008, through
2400 hrs, A.l.t., December 31, 2008.
Comments must be received at the
following address no later than 4:30
p.m., A.l.t., May 5, 2008.
ADDRESSES: Send comments to Sue
Salveson, Assistant Regional
Administrator, Sustainable Fisheries
Division, Alaska Region, NMFS, Attn:
Ellen Sebastian. You may submit
comments, identified by ‘‘RIN 0648–
XH33,’’ by any one of the following
methods:
• Electronic Submissions: Submit all
electronic public comments via the
Federal eRulemaking Portal website at
https://www.regulations.gov;
• Mail: P.O. Box 21668, Juneau, AK
99802;
• Fax: (907) 586–7557; or
VerDate Aug<31>2005
15:54 Apr 22, 2008
Jkt 214001
• Hand delivery to the Federal
Building: 709 West 9th Street, Room
420A, Juneau, AK.
Instructions: All comments received
are a part of the public record and will
generally be posted to https://
www.regulations.gov without change.
All Personal Identifying Information (for
example, name, address, etc.)
voluntarily submitted by the commenter
may be publicly accessible. Do not
submit Confidential Business
Information or otherwise sensitive or
protected information.
NMFS will accept anonymous
comments. Attachments to electronic
comments will be accepted in Microsoft
Word, Excel, WordPerfect, or Adobe
PDF file formats only.
FOR FURTHER INFORMATION CONTACT:
Jennifer Hogan, 907–586–7228.
SUPPLEMENTARY INFORMATION: NMFS
manages the groundfish fishery in the
BSAI exclusive economic zone
according to the Fishery Management
Plan for Groundfish of the Bering Sea
and Aleutian Islands Management Area
(FMP) prepared by the North Pacific
Fishery Management Council under
authority of the Magnuson-Stevens
Fishery Conservation and Management
Act. Regulations governing fishing by
U.S. vessels in accordance with the FMP
appear at subpart H of 50 CFR part 600
and 50 CFR part 679.
NMFS closed the directed fishery for
Pacific ocean perch by vessels
participating in the BSAI trawl limited
access fishery in the Eastern Aleutian
District of the BSAI on March 19, 2008
(73 FR 15458, March 24, 2008).
NMFS has determined that
approximately 59 mt of the 2008 TAC of
Pacific ocean perch for vessels
participating in the BSAI trawl limited
access fishery in the Eastern Aleutian
District of the BSAI remain in the
directed fishing allowance. Therefore, in
accordance with § 679.25(a)(1)(i),
(a)(2)(i)(C), and (a)(2)(iii)(D), and to fully
utilize the 2008 TAC of Pacific ocean
perch in this area specified for vessels
participating in the BSAI trawl limited
access fishery, NMFS is terminating the
previous closure and is reopening
directed fishing for Pacific ocean perch
by vessels participating in the BSAI
trawl limited access fishery in the
Eastern Aleutian District of the BSAI.
The opening is effective 1200 hrs, A.l.t.,
April 18, 2008, through 2400 hours,
December 31, 2008.
PO 00000
Frm 00044
Fmt 4700
Sfmt 4700
Classification
This action responds to the best
available information recently obtained
from the fishery. The Assistant
Administrator for Fisheries, NOAA,
(AA) finds good cause to waive the
requirement to provide prior notice and
opportunity for public comment
pursuant to the authority set forth at 5
U.S.C. 553(b)(B) as such a requirement
is impracticable and contrary to the
public interest. This requirement is
impracticable and contrary to the public
interest as it would prevent NMFS from
responding to the most recent fisheries
data in a timely fashion and would
delay the opening of the Pacific ocean
perch fishery in the Eastern Aleutian
District of the BSAI for vessels
participating in the BSAI trawl limited
access fishery. Immediate notification is
necessary to allow for the orderly
conduct and efficient operation of this
fishery, to allow the industry to plan for
the fishing season, and to avoid
potential disruption to the fishing fleet
and processors. NMFS was unable to
publish a notice providing time for
public comment because the most
recent, relevant data only became
available as of April 17, 2008.
The AA also finds good cause to
waive the 30-day delay in the effective
date of this action under 5 U.S.C.
553(d)(3). This finding is based upon
the reasons provided above for waiver of
prior notice and opportunity for public
comment.
Without this inseason adjustment,
NMFS could not allow the Pacific ocean
perch fishery in the Eastern Aleutian
District of the BSAI for vessels
participating in the BSAI trawl limited
access fishery to be harvested in an
expedient manner and in accordance
with the regulatory schedule. Under
§ 679.25(c)(2), interested persons are
invited to submit written comments on
this action to the above address until
May 5, 2008.
This action is required by § 679.20
and § 679.25 and is exempt from review
under Executive Order 12866.
Authority: 16 U.S.C. 1801 et seq.
Dated: April 17, 2008.
William D. Chappell
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 08–1173 Filed 4–18–08; 1:37 pm]
BILLING CODE 3510–22–S
E:\FR\FM\23APR1.SGM
23APR1
]]>Agencies
[Federal Register Volume 73, Number 79 (Wednesday, April 23, 2008)]
[Rules and Regulations]
[Pages 21846-21850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-8706]
-----------------------------------------------------------------------
DEPARTMENT OF DEFENSE
Defense Acquisition Regulations System
48 CFR Parts 234, 242, and 252
RIN 0750-AF19
Defense Federal Acquisition Regulation Supplement; Earned Value
Management Systems (DFARS Case 2005-D006)
AGENCY: Defense Acquisition Regulations System, Department of Defense
(DoD).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: 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.
EFFECTIVE DATE: April 23, 2008.
FOR FURTHER INFORMATION CONTACT: Mr. Mark Gomersall, Defense
Acquisition Regulations System, OUSD (AT&L) DPAP (DARS), IMD 3D139,
3062 Defense Pentagon, Washington, DC 20301-3062. Telephone 703-602-
0302; facsimile 703-602-7887. Please cite DFARS Case 2005-D006.
SUPPLEMENTARY INFORMATION:
A. Background
This final rule updates DFARS text addressing earned value
management policy for DoD contracts. The rule supplements the final FAR
rule published at 71 FR 38238 on July 5, 2006, and establishes DoD-
specific earned value management requirements, as permitted by the FAR.
The DFARS rule is consistent with the policy in the memorandum issued
by the Under Secretary of Defense (Acquisition, Technology, and
Logistics) on March 7, 2005, Subject: Revision to DoD Earned Value
Management Policy (available at https://www.acq.osd.mil/dpap/ops/
policy_vault.html).
The DFARS changes in this rule include the following:
[cir] 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).
[cir] 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.
[cir] 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.
[cir] For firm-fixed-price contracts and subcontracts of any dollar
value, the rule discourages the application of earned value management.
[cir] The Defense Contract Management Agency is assigned
responsibility for determining earned value management compliance when
DoD is the cognizant Federal agency.
[cir] Requirements for contractor cost/schedule status reports are
eliminated.
DoD published a proposed rule at 71 FR 3449 on January 23, 2006.
Five sources submitted comments on the proposed rule. A discussion of
the comments is provided below.
1. Comment: One respondent stated that the $20,000,000 threshold
for earned value management (EVM) further aggravates the ability to
mitigate cost, schedule, and technical risks, since receiving EVM data
below that threshold would be helpful in assisting leadership to make
affordable decisions.
DoD Response: The rule allows for EVM below the $20,000,000
threshold when its application is determined to be appropriate as the
result of a cost-benefit analysis.
2. Comment: Two respondents stated that the rule should be revised
to specifically state that EVM requirements do not apply to time-and-
materials, labor-hour, and level-of-effort contracts.
DoD Response: The rule requires EVM to be applied only on cost and
incentive type contracts and subcontracts over certain thresholds. EVM
is discouraged on firm-fixed-price contracts and subcontracts of any
dollar value. Further, performance-based acquisition management on
developmental efforts, as described in OMB Circular A-11, Part 7,
focuses on the use of EVM on cost and incentive type contracts.
3. Comment: One respondent expressed support of the rule, but urged
that the Defense Acquisition Regulations Council work with the Civilian
Agency Acquisition Council to ensure that the final FAR rule is
consistent with the DFARS rule. In particular, the respondent stated
that the FAR rule should be revised in four areas to make it consistent
with the DFARS rule as follows: Explicitly limit application of EVM
requirements to cost or incentive contracts; establish a fixed dollar
value for the applicability of EVM requirements; limit integrated
baseline reviews to contract post-award; and establish an executive
agency (such as the Defense Contract Management Agency (DCMA)) within
the Government responsible for Government-wide EVM system compliance
reviews.
DoD Response: The respondent's recommendations regarding the FAR
were addressed in the preamble to the FAR rule published at 71 FR 38238
on July 5, 2006. Additional changes have been made to the DFARS rule
for consistency with the FAR rule. Those changes include:
[[Page 21847]]
[cir] Relocation of EVM policy from Part 242 to Part 234.
[cir] For cost or incentive contracts and subcontracts valued at
$50,000,000 or more, replacement of the requirement for a contracting
officer's formal validation and acceptance with the requirement for an
EVM system that has been determined by the cognizant federal agency to
be in compliance with the guidelines in ANSI/EIA-748. DCMA is assigned
responsibility for determining EVM system compliance when DoD is the
cognizant Federal agency.
[cir] Elimination of the text included in the proposed rule at
252.242-7006(b), which specified that the terms for compliance with
ANSI/EIA-748 for contracts below $50,000,000 may be subject to
negotiation between the contractor and the contracting officer;
compliance with the guidelines in ANSI/EIA-748 is not subject to
negotiation.
[cir] Addition of text in the solicitation provision at 252.234-
7001(a)(2)(ii) and (iii) to require an offeror proposing to use a
system that has not been determined to be in compliance with ANSI/EIA-
748, to provide information and assistance as required by the
contracting officer to support review of the offeror's plan for
compliance and to provide milestones that indicate when the offeror
will be compliant.
[cir] Elimination of a separate provision and clause to address
requirements for contracts valued at $20,000,000 or more but less than
$50,000,000. The provision and clause at 252.234-7001 and 252.234-7002
address requirements for contracts above or below $50,000,000.
4. Comment: One respondent recommended that the contract clause for
EVM compliance be modified to indicate that the contract performance
report may be tailored in accordance with the DoD Earned Value
Management Implementation Guide, in order to reduce the burden on
contractors while still ensuring that DoD managers receive useful
information. The memorandum issued by the Under Secretary of Defense
(Acquisition, Technology, and Logistics) on March 7, 2005, indicates
that the contract performance report may be tailored, based on guidance
in the implementation guide, for cost or incentive contracts valued at
$20 million or more but less than $50 million.
DoD Response: DoD does not believe it is necessary to address
tailoring of the contract performance report within the contract
clause. The contracting officer may tailor the report in accordance
with the DoD Earned Value Management Implementation Guide. A reference
to the guide has been added to the DFARS companion resource,
Procedures, Guidance, and Information. Any tailoring of contract
performance reports for a particular contract will be documented in the
contract data requirements list to ensure the contractual requirements
are clear.
5. Comment: One respondent recommended that language be added to
the contract clause to state that the contractor is responsible for
ensuring that selected subcontractors comply with ANSI/EIA-748.
DoD Response: Paragraph (h) of the contract clause in the final
rule specifies that the contractor must require certain subcontractors
(or subcontractor effort if subcontractors have not been selected) to
comply with the EVM requirements of the clause. This includes
compliance with the EVM guidelines in ANSI/EIA-748.
6. Comment: One respondent recommended adding the following
language to the contract clause for consistency with language included
in the solicitation provision: ``The terms for compliance with ANSI/
EIA-748 may be subject to negotiation between the contractor and
subcontractor. The conduct of the integrated baseline reviews also may
be subject to negotiation between the contractor and subcontractor.''
DoD Response: The cited language has been excluded from the final
rule. The clause at 252.234-7002 requires contractors to ensure
subcontractor compliance with the EVM requirements of the clause, to
include compliance with the guidelines in ANSI/EIA-748. Likewise,
contractors are required to ensure that any necessary participation by
a subcontractor in the performance of integrated baseline reviews is in
accordance with the clause. However, since integrated baseline reviews
are a joint assessment between the contractor and the Government, the
timing of such reviews will necessarily be coordinated between the
parties.
7. Comment: One respondent indicated that emphasis should be placed
on establishing a system that requires a company-wide commitment to
standardized actual collection systems, budgeting systems, scheduling
systems, status systems, change management systems, and reporting
systems, rather than simply emphasizing what threshold should be used
to apply EVM.
DoD Response: The Government can not mandate contractor management
and budgetary control systems used outside of Government contracts.
However, contractors that are frequently awarded Government contracts
that require EVM may find it in their best interests to establish
company-wide standardized EVM systems that are in compliance with ANSI/
EIA-748.
This rule was not subject to Office of Management and Budget review
under Executive Order 12866, dated September 30, 1993.
B. Regulatory Flexibility Act
DoD has prepared a final regulatory flexibility analysis consistent
with 5 U.S.C. 604. A copy of the analysis may be obtained from the
point of contact specified herein. The analysis is summarized as
follows:
This final rule amends the DFARS to update requirements for DoD
contractors to establish and maintain earned value management systems.
The rule revises the dollar thresholds at which DoD applies earned
value management policy, and eliminates requirements for DoD
contractors to submit cost/schedule status reports.
The rule supplements the FAR rule published at 71 FR 38238 on July
5, 2006. The FAR rule provides standard earned value management policy,
consistent with the requirements of OMB Circular A-11, Part 7,
Planning, Budgeting, Acquisition, and Management of Capital Assets, and
the supplement to Part 7, the Capital Programming Guide. The OMB
Circular and its supplement implement statutory requirements for the
Government to define the cost, performance, and schedule, and schedule
goals for major acquisitions and to achieve, on the average, 90 percent
of the established goals.
The FAR rule permits agency supplementation with regard to earned
value management applicability criteria, post-award review
requirements, and procedures for implementation of the guidelines in
American National Standards Institute/Electronic Industries Alliance
Standard 748 (ANSI/EIA-748), Earned Value Management Systems. This
DFARS rule establishes the DoD-specific earned value management
requirements.
The FAR rule permits agency supplementation with regard to earned
value management applicability criteria, post-award review
requirements, and procedures for implementation of the guidelines in
American National Standards Institute/Electronic Industries Alliance
Standard 748 (ANSI/EIA-748), Earned Value Management Systems. This
DFARS rule establishes the DoD-specific earned value management
requirements.
The threshold at which a DoD contractor previously was required to
[[Page 21848]]
have an earned value management system that complied with ANSI/EIA-748
was $73 million for contracts and subcontracts funded with research,
development, test and evaluation funding; and $315 million for
contracts and subcontracts funded with operation and maintenance or
procurement funding. This DFARS rule lowers those thresholds to a
single $20 million for all cost or incentive contracts and
subcontracts, regardless of funding type, and establishes a new
threshold of $50 million for an earned value management system that has
been determined by the Government to be in compliance with ANSI/EIA-
748. The rule discourages the application of earned value management
requirements to fixed-price contracts and subcontracts of any dollar
value.
During fiscal year 2006, DoD awarded 8,266 cost or incentive
contracts to small business concerns, with only 16 of those contracts
exceeding $20 million in value. During the same fiscal year, DoD
awarded 53,585 fixed-price type contracts to small business concerns,
with only 70 of those contracts exceeding $20 million in value. The use
of earned value management requirements in fixed-price contracts is
expected to be rare.
The DFARS rule mitigates the impact on small businesses by
establishing a $20 million contract threshold for earned value
management requirements, and discouraging the application of earned
value management requirements to fixed-price contracts and
subcontracts, thereby establishing a very small subset of the small
business community for which the rule would be applicable. The cost for
a small business concern to establish a compliant earned value
management system would be a one-time cost that the concern may offset
through cost reimbursement on the resulting Government contract.
C. Paperwork Reduction Act
This rule does not impose any new information collection
requirements that require the approval of the Office of Management and
Budget (OMB) under 44 U.S.C. 3501, et seq. The contract performance
reports required by the rule are approved under OMB Clearance Number
0704-0188, Acquisition Management Systems and Data Requirements Control
List.
List of Subjects in 48 CFR Parts 234, 242, and 252
Government procurement.
Michele P. Peterson,
Editor, Defense Acquisition Regulations System.
0
Therefore, 48 CFR parts 234, 242, and 252 are amended as follows:
0
1. The authority citation for 48 CFR parts 234, 242, and 252 continues
to read as follows:
Authority: 41 U.S.C. 421 and 48 CFR Chapter 1.
PART 234--MAJOR SYSTEM ACQUISITION
Sec. 234.005 [Removed]
0
2. Section 234.005 is removed.
0
3. Subpart 234.2 is added to read as follows:
Subpart 234.2--Earned Value Management System
Sec.
234.201 Policy.
234.203 Solicitation provisions and contract clause.
Subpart 234.2--Earned Value Management System
Sec. 234.201 Policy.
(1) DoD applies the earned value management system requirement as
follows:
(i) For cost or incentive contracts and subcontracts valued at
$20,000,000 or more, the earned value management system shall comply
with the guidelines in the American National Standards Institute/
Electronic Industries Alliance Standard 748, Earned Value Management
Systems (ANSI/EIA-748).
(ii) For cost or incentive contracts and subcontracts valued at
$50,000,000 or more, the contractor shall have an earned value
management system that has been determined by the cognizant Federal
agency to be in compliance with the guidelines in ANSI/EIA-748.
(iii) For cost or incentive contracts and subcontracts valued at
less than $20,000,000--
(A) The application of earned value management is optional and is a
risk-based decision;
(B) A decision to apply earned value management shall be documented
in the contract file; and
(C) Follow the procedures at PGI 234.201(1)(iii) for conducting a
cost-benefit analysis.
(iv) For firm-fixed-price contracts and subcontracts of any dollar
value--
(A) The application of earned value management is discouraged; and
(B) Follow the procedures at PGI 234.201(1)(iv) for obtaining a
waiver before applying earned value management.
(2) When an offeror proposes a plan for compliance with the earned
value management system guidelines in ANSI/EIA-748, follow the review
procedures at PGI 234.201(2).
(3) The Defense Contract Management Agency is responsible for
determining earned value management system compliance when DoD is the
cognizant Federal agency.
(4) See PGI 234.201(4) for additional guidance on earned value
management.
234.203 Solicitation provisions and contract clause.
For cost or incentive contracts valued at $20,000,000 or more, and
for other contracts for which EVMS will be applied in accordance with
234.201(1)(iii) and (iv)--
(1) Use the provision at 252.234-7001, Notice of Earned Value
Management System, instead of the provisions at FAR 52.234-2, Notice of
Earned Value Management System--Pre-Award IBR, and FAR 52.234-3, Notice
of Earned Value Management System--Post-Award IBR, in the solicitation;
and
(2) Use the clause at 252.234-7002, Earned Value Management System,
instead of the clause at FAR 52.234-4, Earned Value Management System,
in the solicitation and contract.
PART 242--CONTRACT ADMINISTRATION AND AUDIT SERVICES
0
4. Section 242.1106 is amended by revising paragraph (a) to read as
follows:
242.1106 Reporting requirements.
(a) See DoDI 5000.2, Operation of the Defense Acquisition System,
for reporting requirements for defense technology projects and
acquisition programs.
* * * * *
242.1107-70 [Removed]
0
5. Section 242.1107-70 is removed.
PART 252--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
0
6. Sections 252.234-7001 and 252.234-7002 are added to read as follows:
252.234-7001 Notice of Earned Value Management System.
As prescribed in 234.203(1), use the following provision:
Notice of Earned Value Management System (Apr 2008)
(a) If the offeror submits a proposal in the amount of
$50,000,000 or more--
[[Page 21849]]
(1) The offeror shall provide documentation that the Cognizant
Federal Agency (CFA) has determined that the proposed Earned Value
Management System (EVMS) complies with the EVMS guidelines in the
American National Standards Institute/Electronic Industries Alliance
Standard 748, Earned Value Management Systems (ANSI/EIA-748)
(current version at time of solicitation). The Government reserves
the right to perform reviews of the EVMS when deemed necessary to
verify compliance.
(2) If the offeror proposes to use a system that has not been
determined to be in compliance with the requirements of paragraph
(a)(1) of this provision, the offeror shall submit a comprehensive
plan for compliance with the guidelines in ANSI/EIA-748.
(i) The plan shall--
(A) Describe the EVMS the offeror intends to use in performance
of the contract, and how the proposed EVMS complies with the EVMS
guidelines in ANSI/EIA-748;
(B) Distinguish between the offeror's existing management system
and modifications proposed to meet the EVMS guidelines;
(C) Describe the management system and its application in terms
of the EVMS guidelines;
(D) Describe the proposed procedure for administration of the
EVMS guidelines as applied to subcontractors; and
(E) Describe the process the offeror will use to determine
subcontractor compliance with ANSI/EIA-748.
(ii) The offeror shall provide information and assistance as
required by the Contracting Officer to support review of the plan.
(iii) The offeror's EVMS plan must provide milestones that
indicate when the offeror anticipates that the EVMS will be
compliant with the guidelines in ANSI/EIA-748.
(b) If the offeror submits a proposal in an amount less than
$50,000,000--
(1) The offeror shall submit a written description of the
management procedures it will use and maintain in the performance of
any resultant contract to comply with the requirements of the Earned
Value Management System clause of the contract. The description
shall include--
(i) A matrix that correlates each guideline in ANSI/EIA-748
(current version at time of solicitation) to the corresponding
process in the offeror's written management procedures; and
(ii) The process the offeror will use to determine subcontractor
compliance with ANSI/EIA-748.
(2) If the offeror proposes to use an EVMS that has been
determined by the CFA to be in compliance with the EVMS guidelines
in ANSI/EIA-748, the offeror may submit a copy of the documentation
of such determination instead of the written description required by
paragraph (b)(1) of this provision.
(c) The offeror shall identify the subcontractors (or the
subcontracted effort if subcontractors have not been selected) to
whom the EVMS requirements will apply. The offeror and the
Government shall agree to the subcontractors or the subcontracted
effort selected for application of the EVMS requirements. The
offeror shall be responsible for ensuring that the selected
subcontractors comply with the requirements of the Earned Value
Management System clause of the contract.
(End of provision)
252.234-7002 Earned Value Management System.
As prescribed in 234.203(2), use the following clause:
Earned Value Management System (Apr 2008)
(a) In the performance of this contract, the Contractor shall
use--
(1) An Earned Value Management System (EVMS) that complies with
the EVMS guidelines in the American National Standards Institute/
Electronic Industries Alliance Standard 748, Earned Value Management
Systems (ANSI/EIA-748); and
(2) Management procedures that provide for generation of timely,
reliable, and verifiable information for the Contract Performance
Report (CPR) and the Integrated Master Schedule (IMS) required by
the CPR and IMS data items of this contract.
(b) If this contract has a value of $50,000,000 or more, the
Contractor shall use an EVMS that has been determined by the
Cognizant Federal Agency (CFA) to be in compliance with the EVMS
guidelines as stated in paragraph (a)(1) of this clause. If, at the
time of award, the Contractor's EVMS has not been determined by the
CFA to be in compliance with the EVMS guidelines as stated in
paragraph (a)(1) of this clause, the Contractor shall apply its
current system to the contract and shall take necessary actions to
meet the milestones in the Contractor's EVMS plan.
(c) If this contract has a value of less than $50,000,000, the
Government will not make a formal determination that the
Contractor's EVMS complies with the EVMS guidelines in ANSI/EIA-748
with respect to the contract. The use of the Contractor's EVMS for
this contract does not imply a Government determination of the
Contractor's compliance with the EVMS guidelines in ANSI/EIA-748 for
application to future contracts. The Government will allow the use
of a Contractor's EVMS that has been formally reviewed and
determined by the CFA to be in compliance with the EVMS guidelines
in ANSI/EIA-748.
(d) The Contractor shall submit notification of any proposed
substantive changes to the EVMS procedures and the impact of those
changes to the CFA. If this contract has a value of $50,000,000 or
more, unless a waiver is granted by the CFA, any EVMS changes
proposed by the Contractor require approval of the CFA prior to
implementation. The CFA will advise the Contractor of the
acceptability of such changes as soon as practicable (generally
within 30 calendar days) after receipt of the Contractor's notice of
proposed changes. If the CFA waives the advance approval
requirements, the Contractor shall disclose EVMS changes to the CFA
at least 14 calendar days prior to the effective date of
implementation.
(e) The Government will schedule integrated baseline reviews as
early as practicable, and the review process will be conducted not
later than 180 calendar days after (1) contract award, (2) the
exercise of significant contract options, and (3) the incorporation
of major modifications. During such reviews, the Government and the
Contractor will jointly assess the Contractor's baseline to be used
for performance measurement to ensure complete coverage of the
statement of work, logical scheduling of the work activities,
adequate resourcing, and identification of inherent risks.
(f) The Contractor shall provide access to all pertinent records
and data requested by the Contracting Officer or duly authorized
representative as necessary to permit Government surveillance to
ensure that the EVMS complies, and continues to comply, with the
performance criteria referenced in paragraph (a) of this clause.
(g) When indicated by contract performance, the Contractor shall
submit a request for approval to initiate an over-target baseline or
over-target schedule to the Contracting Officer. The request shall
include a top-level projection of cost and/or schedule growth, a
determination of whether or not performance variances will be
retained, and a schedule of implementation for the rebaselining. The
Government will acknowledge receipt of the request in a timely
manner (generally within 30 calendar days).
(h) The Contractor shall require its subcontractors to comply
with EVMS requirements as follows:
(1) For subcontracts valued at $50,000,000 or more, the
following subcontractors shall comply with the requirements of this
clause:
[Contracting Officer to insert names of subcontractors (or
subcontracted effort if subcontractors have not been selected)
designated for application of the EVMS requirements of this clause.]
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(2) For subcontracts valued at less than $50,000,000, the
following subcontractors shall comply with the requirements of this
clause, excluding the requirements of paragraph (b) of this clause:
[Contracting Officer to insert names of subcontractors (or
subcontracted effort if subcontractors have not been selected)
designated for application of the EVMS requirements of this clause.]
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(End of clause)
252.242-7001 and 252.242-7002 [Removed and Reserved]
0
7. Sections 252.242-7001 and 252.242-7002 are removed and reserved.
[[Page 21850]]
252.242-7005 and 252.242-7006 [Removed]
0
8. Sections 252.242-7005 and 252.242-7006 are removed.
[FR Doc. E8-8706 Filed 4-22-08; 8:45 am]
BILLING CODE 5001-08-P
