PART 1834

MAJOR SYSTEM ACQUISITION

(September 2015)

 

TABLE OF CONTENTS

 

SUBPART      1834.0                         GENERAL

1834.003                                             Responsibilities.

 

SUBPART      1834.2                         EARNED VALUE MANAGEMENT SYSTEM

1834.201                                             Policy.

1834.202                                             Integrated baseline reviews.

1834.203                                             Solicitation provisions and contract clause.

1834.203-70                                        NASA solicitation provision and contract clause.


 

PART 1834

MAJOR SYSTEM ACQUISITION

 

Subpart 1834.0--General

 

1834.003  Responsibilities.

 

      (a)  NASA's implementation of OMB Circular No. A-109, Major Systems Acquisition, and FAR Part 34 is contained in this Part and in NASA Policy Directive (NPD) 7120.4 “NASA Engineering and Program/Project Management Policy” and NASA Procedural Requirement (NPR) 7120.5 “NASA Space Flight Program and Project Management Requirements”.

 

Subpart 1834.2—Earned Value Management System

1834.201  Policy.

 

      (a)  NASA requires use of an Earned Value Management System (EVMS) on contracts for development or production work, including development or production work for flight and ground support systems and components, prototypes, and institutional investments (facilities, IT infrastructure, etc.) as specified below:

            (1)  For cost or fixed-price incentive contracts and subcontracts valued at $50 Million or more the contractor shall have an EVMS that has been determined by the cognizant Federal agency to be in compliance with the guidelines in the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748).

            (2)  For cost or fixed-price incentive contracts and subcontracts valued at $20 Million or more but less than $50 Million, the contractor shall have an EVMS that complies with the guidelines in ANSI/EIA-748, as determined by the cognizant Contracting Officer.

            (3)  For cost or fixed-price incentive contracts and subcontracts valued at less than $20 Million the application of Earned Value Management (EVM) is optional and is a risk-based decision at the discretion of the program/project manager.

 

      (b)  Requiring EVM for firm-fixed-price (FFP) contracts and subcontracts of any dollar value is discouraged; however, an Integrated Master Schedule (IMS) and adequate reporting shall be required to plan and track schedule performance for development or production contracts valued at $20 Million or more.  In addition, for FFP contracts that are part of a program/project of $50 Million or more, the contracting officer shall collaborate with the government’s program/project manager to ensure the appropriate data can be obtained or generated to fulfill program management needs and comply with NASA Procedural Requirements (NPR) 7120.5.

 

      (c)  An EVMS is not required on non-developmental contracts for engineering support services, steady state operations, basic and applied research, and routine services such as janitorial services or grounds maintenance services.

 

      (d)  Contracting officers shall request the assistance of the cognizant Defense Contract Management Agency (DCMA) office and the applicable NASA Center EVM Focal Point (http://evm.nasa.gov/council.html ) in determining the adequacy of proposed EVMS plans and procedures and system compliance.

 

      (e)  Notwithstanding the EVMS requirements above, if an offeror proposes to use a system that has not been determined to be in compliance with the ANSI/EIA 748, Earned Value Management Systems, the offeror shall submit a comprehensive plan for compliance with these EVMS standards, as specified in 1852.234-1, Notice of Earned Value Management System. Offerors shall not be eliminated from consideration for contract award because they do not have an EVMS that complies with these standards.

 

      (f) As a minimum, and in accordance with NPD 7120.5, requirements initiators shall ensure that EVMS monthly reports are included as a deliverable in the acquisition package provided to the procurement office for implementation into contracts where EVMS applies.  Additionally, the acquisition package shall include a Contract Performance Report (CPR), IMS and a Work Breakdown Structure (WBS) and the appropriate data requirements descriptions (DRDs) for implementation into the contract.

 

1834.202  Integrated baseline reviews.

 

      (d)  Use of pre-award IBRs is limited to the second or subsequent phases of a phased acquisition (see 1817.73).  When a pre-award IBR is contemplated, the contracting officer shall include the instructions with respect to the schedule and conduct of the IBR in the proposal request.

 

1834.203  Solicitation provisions and contract clause.

The FAR EVMS solicitation provisions and contract clause are not used in NASA contracts.  See 1834.203-70 for the NASA EVMS solicitation provision and contract clause.

 

See PCD 15-05.

1834.203-70  NASA solicitation provision and contract clause.

Except for firm-fixed price contracts and the contracts identified in 1834.201(c), the contracting officer shall insert—

 

      (a)  The provision at 1852.234-1, Notice of Earned Value Management System, in solicitations for contracts for—

 

            (1)  Development or production, including flight and ground support projects, and institutional projects (facility, IT investment, etc.), with a value exceeding $20M; and

 

            (2)  Acquisitions of any value designated as major by the project manager in accordance with OMB Circular A-11; and

 

        (b)  The clause at 1852.234-2, Earned Value Management System, in solicitations and contracts with a value exceeding $50M that include the provision at 1852.234-1.  The contracting officer shall use the clause with its Alternate I when the contract value is less than $50M.