---
kind: "section"
citation: "48 C.F.R. § 334.201"
title: "48"
number: "334.201"
heading: "Policy."
url: "https://uscodex.org/cfr/48/334.201"
---

# §334.201. Policy.


The Department of Health and Human Services applies the earned value management system requirement as follows:

- (a) For cost or incentive contracts and subcontracts valued at $20 million or more, the contractor's earned value management system shall comply with the guidelines in the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748).
- (b) For cost or incentive contracts and subcontracts valued at $50 million or more, the contractor shall have an earned value management system that has been determined by the cognizant Federal agency to be in compliance with the guidelines in ANSI/EIA-748.
- (c) **For cost or incentive contracts and subcontracts valued at less than $20 million—**
  - (1) The application of earned value management is optional at the discretion of the program/project manager and is a risk-based decision that must be supported by a cost/benefit analysis; and
  - (2) A decision to apply earned value management shall be documented in the contract file.
- (d) For firm-fixed-price contracts and subcontracts of any dollar value the application of earned value management is discouraged.

## Notes

### Authority

Authority: 5 U.S.C. 301; 40 U.S.C. 121(c)(2).

### Source

Source: 80 FR 72151, Nov. 18, 2015, unless otherwise noted.