EVM

Earned Value Management is a project management methodology integrating scope, schedule, and cost data to objectively measure project performance and progress. EVM compares planned value, earned value, and actual costs to identify variances and forecast completion.

DoD and other agencies require EVM on major contracts, with specific system requirements defined in agency supplements. Contractors must maintain EVM-compliant systems that produce accurate, timely performance data. EVM metrics like Cost Performance Index (CPI) and Schedule Performance Index (SPI) provide early warning of problems and support proactive management.