Earned Value Management System (EVMS) Contract Clause

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In accordance with current Governmentwide policy, HUD's Office of the Chief Information Officer (OCIO) has begun the implementation of an EVMS for the Department's information technology (IT) investments. The purpose of an EVMS is to routinely capture standardized, detailed information on major IT investments to monitor their cost, schedule and performance over time. This information will enable HUD project managers and senior management to track the progress of IT projects on a timely basis and make informed decisions about development, maintenance and acquisition activities for HUD's major IT investments.

For the EVMS to function effectively, OCIO will need certain data on all projects. An integrated team consisting of the contractor and government project manager will be responsible for managing EVMS data. To facilitate the management of affected HUD IT contracts using an EVMS, an "Earned Value Analysis and Reporting" clause shall be included in all:

	New development and mixed lifecycle contracts for major IT investments as defined in Office of Management and Budget Circular A-11, Part 7 (in general, those with lifecycle development costs of $5 million or more and financial management systems that obligate $500,000 or more annually); and
	Non-major IT investments with lifecycle development costs of $5 million or more. This clause mirrors the pending Federal Acquisition Regulation (FAR) clause.

The clause shall also be added via modification to existing contracts that meet the above criteria when significant development work is added by a modification or option.

This clause shall not be included in, or added to, contracts supporting IT investments that are in the operational/steady-state phase unless expressly required by HUD's Chief Information Officer.