Are you aware that a revision to Electronics Industry Association (EIA) standard 748 Earned Value Management Systems, has been released? The new revision is EIA 748-C. Officials have been discussing the changes at recent industry conferences.
No changes have been made to the 32 EVMS Guidelines in Sections 2.1-2.5 of the standard. The changes are primarily clarifications of the existing text:
Includes a new section about Budget Element Hierarchy. This section describes the components of Contract Target Price from the highest level to the lowest level of cost elements. It includes the same information that is taught in every basic earned value management seminar.
Emphasizes Risk and Opportunity management. Wording has been inserted in numerous sections of the standard (such as comprehensive planning, schedule, management reserve) to emphasize the consideration of risks and opportunities.
Includes Rate and Usage variance formulas in the standard. Labor rate and efficiency variance formulas are now specifically defined in Section 3.8.2. Similarly, material price and usage variance formulas are now specifically defined in Section 3.8.5.
Clarifies Control Account definition. Revisions to the standard note that the Work Breakdown Structure (WBS) is extended to the level at which control accounts are established and includes additional clarification regarding multiple control accounts existing within a lowest level WBS element.
Clarifies material progress points: Receipt, Stock, Issue. The revised standard states that the acceptable points for claiming earned value are when material is received, when it is entered into inventory, or when it is issued from inventory.
Clarifies OTB/OTS text. The revised standard corrects the terminology to use
“Contract Budget Baseline” instead of the Performance Measurement Baseline regarding Over Target Baselines (OTB), removes language about partial OTBs, and recommends reviewing the contract for implementation requirements prior to executing OTBs or Over Target Schedules (OTS).
Adds a list of suggested references. All NDIA guides related to Earned Value Management Systems are included as suggested references but not requirements.
Includes numerous minor clarifications.
- Clarifies that multiple terms are used interchangeably for “scope”
- Adds acronyms into the definitions in Section 2.6
- Clarifies that Estimates at Completion (EACs) are summarized through the WBS and OBS
- Clarifies that the performance measurement baseline must include all authorized changes, including current period changes
- Clarifies that the System Description is not required to be a stand-alone document
- Clarifies that there is no mandated Rolling Wave cycle
- Emphasizes that planning packages must not start in the current period
In summary, EIA 748-C simply clarifies the text of the standard and does not change any of the implementation, reporting, surveillance, or enforcement aspects of Earned Value Management Systems.