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Panoptic Enterprises' FEDERAL CONTRACTS DISPATCH

DATE: April 8, 2005

SUBJECT: Federal Acquisition Regulation (FAR); Earned Value Management System

SOURCE: Federal Register, April 8, 2005, Vol. 70, No. 67, page 17945

AGENCIES: Department of Defense (DOD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA)

ACTION: Proposed Rule

SYNOPSIS: It is proposed that FAR Part 34, Major System Acquisition, and FAR Part 52, Solicitation Provisions and Contract Clauses, be amended to implement earned value management system (EVMS) policy.

DATES: Comments should be submitted on or before June 7, 2005.

ADDRESSES: Submit comments, identified by "FAR Case 2004-019," to: (1) http://www.regulations.gov; (2) http://www.acqnet.gov/far/ProposedRules/proposed.htm; (3) e-mail: farcase.2004-019@gsa.gov; (4) fax: 202-501-4067; or (5) mail: General Services Administration, Regulatory Secretariat (MVA), 1800 F Street, NW, Room 4035, ATTN: Laurie Duarte, Washington, DC 20405.

FOR FURTHER INFORMATION CONTACT: Jeritta Parnell, 202-501-4082.

SUPPLEMENTAL INFORMATION: The Federal Acquisition Streamlining Act of 1994 (FASA) requires agency heads to approve or define the cost, performance, and schedule goals for major acquisitions and achieve, on average, 90% of the cost, performance and schedule goals established by the agency. The Clinger-Cohen Act of 1996 requires the Office of Management and Budget (OMB) to develop, as part of the budget process, a process for analyzing, tracking, and evaluating the risks and results of all major capital investments for information systems for the life of the system. OMB Circular A-11, Preparation, Submission and Execution of the Budget, Part 7, Planning, Budgeting, Acquisition, and Management of Capital Assets, and the Capital Programming Guide (a supplement to A-11, Part 7), were written to meet the requirements of FASA and the Clinger-Cohen Act. OMB Circular A-11, Part 7, sets forth the policy, budget justification, and reporting requirements for major capital acquisitions that apply to all executive agencies.

EVMS has been adopted by OMB as the method for complying with the provisions of FASA and the Clinger-Cohen Act, and is mandated by A-11, Part 7. EVMS is described in American National Standards Institute (ANSI)/Electronics Industries Alliance (EIA) Standard-748, Earned Value Management Systems. (EDITOR’S NOTE: ANSI/EIA Standard-748 is available from Global Engineering Documents (1–800–854–7179). Information on earned value management systems is available at http://www.acq.osd.mil/pm.)

This proposed rule would standardize the use of EVMS across the government with a new FAR Subpart 34.X, Earned Value Management Systems, two provisions, and one clause. The following are the key provisions of these proposed changes:

EDITOR’S NOTE: While there is no threshold for the application of EVMS specified in the proposed rule, the introduction to the proposed rule includes the following statement: “OMB does not expect EVMS on acquisitions at or below $20 million total cost. However, OMB or the agency may identify a lower dollar acquisition as a major acquisition for application of EVMS.”

FOR FURTHER INFORMATION CONTACT: Panoptic Enterprises at 703-451-5953.

Copyright 2005 by Panoptic Enterprises. All Rights Reserved.

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