Gauging Industry Interest: Piloting an Independent 3rd-Party Review of DoD Contractor Earned-Value Management Systems (EVMS)
The Acquisition Innovation Research Center (AIRC)
Innovation and Evidence-Based Decision Making to Improve Acquisition Outcomes
SUMMARY: AIRC is looking for interested reviewers and companies with a EVMS to be reviewed under a potential future pilot.
BACKGROUND: AIRC is conducting a study for the Deputy Assistant Secretary of Defense for Acquisition Enablers, on the following FY2017 NDAA requirement related to a contractor’s Earned-Value Management System (EVMS).?Section 893, paragraph (c), “REVIEW BY THIRD-PARTY INDEPENDENT AUDITORS,” states that:
“(1) if a registered public accounting firm attests to the internal control assessment of a contractor, pursuant to section 404(b) of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7262(b)), allow the contractor, subject to paragraph (3), to submit certified documentation from such registered public accounting firm that the contractor business systems of the contractor meet the business system requirements referred to in subsection (b)(1) and to thereby eliminate the need for further review of the contractor business systems by the Secretary of Defense…”
One option identified is for OSD to conduct a follow-on pilot study, wherein a Registered Public Accounting Firm (RPAF) or an EVMS consulting organization would independently review a contractor’s EVMS. For further details on this approach, see Rethinking Integrated Program Management in Incremental Acquisitions – Third-Party EVMS Compliance Assessment Study (nps.edu). The size of the DoD contractor with a subject EVMS to be reviewed is still to be determined. It may include smaller companies with DoD contracts between $20–$100 million that are required to have an EVMS but have not benefited from DoD reviews of their EVMS. Alternatively, it might include a major prime with an already reviewed and approved EVMS that could serve as a baseline for the pilot study.
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AIRC is looking to identify parties interested in participating in such a pilot (i.e., a reviewing organization (RPAF or EVMS consultant) and a subject contractor EVMS).
BENEFITS:
If the DoD decides to conduct such a pilot, then a more detailed request for information or interest will be posted. Right now, we are trying to gauge interest. Please provide any feedback to: Gordon Kranz at [email protected] by July 15, 2022.?
Director, Acquisition Policy and Innovation at Office of the Secretary of Defense; festina lente
2 年Help us find new and innovative ways to lower the barriers to enter into the DoD market place.
President at Management Technologies
2 年This is clearly needed. DoD will never get around to the small or medium size companies. I had lots of inquiries about 3rd party certification. In some cases it was an internal EVMS usage that they wanted to make compliant and get certified before bidding on a contract.