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First, by having to report cost variances in base-year and then-year dollars, the DoD is thrust into the political game of predicting the economic future. EVM compliance is required on cost or incentive contracts, subcontracts, intra-government work agreements, and other agreements valued at or greater than $20 million in then-year dollars. Cost or incentive contracts, subcontracts, intra-government work agreements, and other agreements valued at or greater than $20 million in then-year dollars shall implement the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748). |
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