Washington is trying to cut billions and trillions of dollars out of government spending. Programs that survive these cuts and those programs yet to be awarded are expected to operate within the established budgetary ceilings. Fixed fee and fixed priced contracts are becoming more common now days. This makes me wonder how this will affect the use of earned value management on government contracts. Will there be more or less contracts requiring contractors to have an ANSI/EIA-748 compliant EVMS?
Earned value management can provide a ton of value if implemented correctly. A properly implemented system can provide transparency, actionable reporting, improved communication, forecast accuracy, etc. With well documented processes, the successes found through utilizing an EVMS allow programs to repeat those successes on other programs effectively and consistently.
But there is a lot of initial overhead required to establish and then implement an EVMS. In the beginning stages a huge amount of effort is required to spin up an EVMS (people, training, tools, etc.). Especially in a brand new environment where EVM or other fundamental practices such as scheduling are foreign concepts.
So is the trend more or less favorable for the government to require EVM on contracts in the near term future? And what are contracting firms doing based on this EVMS outlook trend?