Public Health Emergency - Leading a Nation Prepared
Earned Value Management (EVM) is a program management tool, technique, and discipline that facilitates systematic planning for and monitoring of high value, complex projects. It integrates a project’s scope of work with the related budget and schedule to permit detailed assessment of overall performance during the life of the project.
Several government-wide guidance documents govern the definition and use of EVM systems (EVMS). Guidelines outlining the qualities and characteristics of an EVMS are set forth in the American National Standards Institute/Electronic Industries Alliance (ANSI/EIA) Standard-748 (most current version). More detailed and specific guidance and direction is contained in OMB Circular A-11, Preparation, Submission and Execution of the Budget, specifically in Part 7 of that Circular A-11, Planning, Budgeting, Acquisition, and Management of Capital Assets, and the supplement to OMB Circular A-11, the Capital Programming Guide.
Based on this collective OMB guidance, EVMS is intended to be used on those parts of acquisitions that will involve developmental effort. This would include not only those acquisitions designated by the agency as major systems but also those acquisitions that include significant developmental, modification, or upgrade during the operational or steady-state phase of a program.
The FAR rule on EVMS became effective on July 5, 2006. Its purpose is to implement EVMS policy in accordance with OMB Circular A-11. Because the FAR coverage applies throughout the executive branch and to agencies with disparate definitions of and processes and procedures for major systems acquisitions, the FAR Council decided against a “one-size-fits all” approach and left several significant aspects of the detailed implementation up to the discretion of each covered agency.
To that end, HHS and its components, such as ASPR have developed a tailored approach to its environments. For example, most of the acquisitions at the ASPR, including those for BARDA, are unique in that they are not Information Technology projects or construction projects; Therefore, ASPR has developed an ASPR ANSI/EIA-748 Standard for Earned Value Management Systems Implementation approach (“7 Principles of Earned Value Management”). These principles allow flexibility to an EVMS structure but still meet the spirit and intent of applicable EVM guidance. It also incorporates discipline in implementation and operations and provides the same reporting data outlined by OMB. Key features and related reporting requirements and deliverables associated with the 7 Principles of EVM for each tier are summarized below.
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