Changing EVMS Thresholds: Insights from Fall NDIA 2024

EVMS Thresholds Are Changing: Opportunities for an Ultra-Modern, Scalable EVMS

New DOD EVMS thresholds are offering DOD Contractors some breathing room regarding Earned Value requirements. But perhaps the real story is the opportunity for Contractors with portfolios containing contracts under $50M or up to $100M to innovate their EVM approach. If your company is aiming for new contracts exceeding $100M, now is the time to implement a streamlined EVMS to be compliance-ready.

Harold Hickman, Acting Deputy Director of the US Department of Defense’s Acquisition Policy and Innovation, Integrated Program Management (APA IPM) division, recently provided a briefing on significant changes to key program management tools and requirements. His update highlighted modifications to the Integrated Program Management Data and Analysis Report (IPMDAR), the Earned Value Central Repository (EV-CR), and EVMS requirements.

One of the most notable changes Hickman discussed at the NDIA Fall 2024 event was the adjustment of EVMS requirement thresholds. Previously, the lower contract value threshold for EVMS implementation was $20M. However, this threshold has now been raised to $50M, resulting in the following progression for contracts of different sizes:

For contracts valued at less than $50M, EVMS is not required, but the Government PM may apply it based on their risk assessment. This creates an opportunity for Contractors to establish a flexible, scalable EVMS that sets them up for future growth.

Contracts valued between $50M and $100M require a compliant EVMS, but formal oversight to determine compliance may not be necessary. However, Contractors are still expected to maintain an EVMS that adheres to the 32 Guidelines outlined in EIA-748, the standard for EVMS. This is another chance for Contractors to implement a modern, agile EVMS within the structure of industry and government guidance, preparing them to scale for larger contracts.

For contracts valued at $100M or more, the “Full-Blown” EVMS requirements remain in place. Contractors must ensure their EVMS can withstand rigorous compliance reviews conducted by agencies like the DCMA, ensuring audit-readiness and program performance.

The new thresholds offer relief for some, but they also present a significant opportunity. While implementing an EVMS may seem daunting at first, it’s a strategic investment that can transform your organization’s project management capabilities. EVMS implementation will naturally highlight areas where PM or EVM maturity is still developing. However, it also gives Contractors the chance to turn EVMS into a core strength that differentiates them in a competitive market.

Companies that have a well-established EVMS find themselves better positioned to take on larger, more lucrative contracts with ease. In many ways, the threshold changes create a friendlier environment for organizations to introduce EV into their culture, offering a roadmap to success.

If you’re ready to begin your EVMS journey, check out our EV Roadmap Guide and contact us for a friendly chat, an EVMS gap analysis, or to develop your EVMS implementation plan. Let us help you make the complex simple—because while EVMS may not be easy, with the right guidance, it can absolutely be achievable.

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