Glossary / Finance, Management
Earned Value ManagementEVM
Earned Value Management (EVM) is a project-management methodology for measuring program performance by comparing planned work (PV), earned value (EV), and actual costs (AC). It produces metrics like Cost Performance Index (CPI = EV/AC) and Schedule Performance Index (SPI = EV/PV) that quantify whether a program is over or under budget and ahead of or behind schedule. On DoW cost or incentive contracts of $20 million or more, the contractor's Earned Value Management System (EVMS) must follow the ANSI/EIA-748 guidelines, and at $50 million or more the system must be formally found compliant, usually by DCMA (DFARS 234.201).
Why it matters to your pipeline
EVM helps the government catch schedule slips and cost overruns early. For contractors, a compliant EVMS shows program-management maturity and is required for larger cost-type defense work. For programs not formally requiring EVM, 'EVM-lite' disciplines (work packages, baselines, CPI/SPI tracking) still prevent the classic pattern of a program that appears on-budget until it suddenly isn't.
When this term shows up in an opening GovSmith finds for you, your vCM explains what it means for that pursuit and does whatever it calls for. You decide; we do the work.
Example
Six months into performance, a program's CPI drops to 0.85 and SPI to 0.90. The contractor identifies a staffing gap in one work package, adds resources, and recovers CPI to 0.95 within 90 days, all visible to the government through monthly Integrated Program Management Data and Analysis Reports (IPMDAR).
Find out what applies to you
Some terms will matter to your business right away and some won’t for years. A vCM can tell you which are which.