DODI 5000.02 Enclosure 1: ACATs and Compliance Requirements

1. PURPOSE

This enclosure: a. Provides the definitions and dollar thresholds of acquisition categories (ACATs) and prescribes the policy for assignment of the cognizant MDA.

b. Lists the information requirements associated with the ACATs in tabular format. c. Provides the policy and procedure applicable to acquisition program A directed, funded effort that provides a new, improved, or continuing materiel, weapon, information system, or service capability in response to an approved need. Acquisition programs are divided into categories that are established to facilitate decentralized decision making, execution, and compliance with statutory requirements. baselines and acquisition program reporting.

2. ACATS

a. Categories. An acquisition program A directed, funded effort that provides a new, improved, or continuing materiel, weapon, information system, or service capability in response to an approved need. Acquisition programs are divided into categories that are established to facilitate decentralized decision making, execution, and compliance with statutory requirements. will be categorized based on the criteria in Table 1 of this enclosure. Table 1 contains the description and decision authority for ACAT I through ACAT III programs. The Defense Acquisition Executive (DAE) The individual responsible for supervising the Defense Acquisition System. The DAE takes precedence on all acquisition matters after the Secretary of Defense and the Deputy Secretary of Defense. or designee will review potential ACAT I and IA materiel solutions; the Component Acquisition Executive (CAE) Secretaries of the military departments or heads of agencies with the power of redelegation. In the military departments, the officials delegated as CAEs (also called SAEs are respectively, the ASA(AL&T); the ASN(RD&A); and the ASAF(A)). The CAEs are responsible for all acquisition functions within their components. This includes both the SAEs for the military departments and acquisition executives in other DoD components, such as SOCOM and DLA, which also have acquisition management responsibilities. or the individual designated by the CAE will review potential ACAT II and ACAT III materiel solutions.

b. Designation of Programs That Qualify as Both a Major Automated Information System (MAIS) Program and a Major Defense Acquisition Program (MDAP An acquisition program that is designated by the USD(AT&L) as an MDAP; or is estimated to require an eventual total expenditure for RDT&E including all planned increments, of more than $480 million in FY 2014 constant dollars or, for procurement, including all planned increments, of more than $2.79 billion in FY 2014 constant dollars.). At the DAE’s discretion, a program that meets the definitions of both a MAIS program and an MDAP may be treated as an MDAP. Programs will comply with the statutory and regulatory requirements associated with the chosen designation. The DAE The individual responsible for supervising the Defense Acquisition System. The DAE takes precedence on all acquisition matters after the Secretary of Defense and the Deputy Secretary of Defense. ’s determination will be documented in an ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews. for the program.

c. Program Reclassification

(1) The CAE will notify the DAE when an increase or estimated increase in program cost or a change in acquisition strategy will result in a possible reclassification of a formerly lower ACAT program as an ACAT I or IA program. ACAT changes will be reported as soon as the DoD Components The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. anticipates that the program’s cost is within 10 percent of the minimum cost threshold of the next ACAT level. ACAT reclassification will occur upon designation by the DAE.

(2) The CAE may request reclassification of an ACAT I or IA program to a lower category. The request will identify the reasons for the reduction in category level. The category reduction will become effective upon approval of the request by the DAE.

Table 1. Description and Decision Authority for ACAT I – III Programs
ACAT Reason for ACAT Designation Decision Authority
ACAT I • MDAP (10 U.S.C. 2430 (Reference (h))) o Dollar value for all increments of the program: estimated by the DAE to require an eventual total expenditure for research, development, and test and evaluation (RDT&E 1. Activities for the development of a new system, or to expand the performance of fielded systems. 2. An appropriation) of more than $480 million in Fiscal Year (FY) 2014 constant dollars or, for procurement, of more than $2.79 billion in FY 2014 constant dollars o MDA designation • MDA designation as special interest1 ACAT ID: DAE or as delegatedACAT IC: Head of the DoD Component or, if delegated, the CAE
ACAT IA2, 3 • MAIS (10 U.S.C. 2445a ( Reference (h))): A DoD acquisition program for an Automated Information System4 (AIS) (either as a product or a service5) that is either: o Designated by the MDA as a MAIS program; or o Estimated to exceed: $40 million in FY 2014 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, deployment, and sustainment, and incurred in any single fiscal year; or $520 million in FY 2014 constant dollars for all expenditures, for all increments, regardless of the appropriation or fund source, directly related to the AIS definition, design, development, deployment, operations and maintenance, and incurred from the beginning of the Materiel Solution Analysis Phase through sustainment for the estimated useful life of the system. • MDA designation as special interest1 ACAT IAM: DAE or as delegatedACAT IAC: Head of the DoD Component or, if delegated, the CAE
ACAT II • Does not meet criteria for ACAT I or IA • Major system (10 U.S.C. 2302d ( Reference (h))) o Dollar value: estimated by the DoD Component head to require an eventual total expenditure for RDT&E of more than $185 million in FY 2014 constant dollars, or for procurement of more than $835 million in FY 2014 constant dollars o MDA designation5 (10 U.S.C. 2302 ( Reference (h))) CAE or the individual designated by the CAE6
ACAT III • Does not meet criteria for ACAT II or above • An AIS program that is not a MAIS program Designated by the CAE6

1. The Special Interest designation is typically based on one or more of the following factors: technological complexity; congressional interest; a large commitment of resources; or the program is critical to the achievement of a capability or set of capabilities, part of a system of systems, or a joint program. Programs that already meet the MDAP and MAIS threshold cannot be designated as Special Interest.

2. When a MAIS program also meets the definition of an MDAP, the DAE will be the MDA unless delegated to a DoD Components The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. or other official. The DAE will designate the program as either a MAIS or an MDAP, and the Program Manager will manage the program consistent with the designation.

3. The DAE will designate MAIS programs as ACAT IAM or ACAT IAC. MAIS programs will not be designated as ACAT II.

4. AIS: A system of computer hardware, computer software, data or telecommunications that performs functions such as collecting, processing, storing, transmitting, and displaying information. Excluded are computer resources, both hardware and software, that are an integral part of a weapon or weapon system; used for highly sensitive classified programs (as determined by the Secretary of Defense); used for other highly sensitive information technology (IT) programs (as determined by the DoD CIO); or determined by the DAE or designee to be better overseen as a non-AIS program (e.g., a program with a low ratio of RDT&E 1. Activities for the development of a new system, or to expand the performance of fielded systems. 2. An appropriation funding to total program acquisition costs or that requires significant hardware development).

5. When determined by the USD (AT&L) (or designee), IT services programs that achieve the MAIS threshold will follow the procedures applicable to MAIS programs specified in this instruction. Additionally, regardless of MAIS status, software that is acquired as a service will be managed under this Instruction. IT services that are designated ACAT III or lower AIS programs will be managed under this Instruction. All other acquisitions of services will comply with DoD Instruction 5000.74 (Reference (i)).

6. As delegated by the Secretary of Defense or Secretary of the Military Department.

3. ACQUISITION PROGRAM INFORMATION REQUIREMENTS AT MILESTONES AND OTHER DECISION POINTS

The DAE The individual responsible for supervising the Defense Acquisition System. The DAE takes precedence on all acquisition matters after the Secretary of Defense and the Deputy Secretary of Defense. may reclassify an acquisition program A directed, funded effort that provides a new, improved, or continuing materiel, weapon, information system, or service capability in response to an approved need. Acquisition programs are divided into categories that are established to facilitate decentralized decision making, execution, and compliance with statutory requirements. at any time. The reclassification decision will be documented in an ADM A memorandum signed by the Milestone Decision Authority that documents decisions and direction resulting from milestone and other major decision point reviews..

a. Table 2 lists the statutory and regulatory requirements at each of the milestones and other decision points during the acquisition process. In consultation with the appropriate stakeholders, program managers may propose for MDA approval, tailoring of Regulatory program information. MDAs will document all information tailoring decisions.

b. Each row identifies an information requirement and the source of the requirement. (Sources may refer to United States Code (U.S.C.), Public Law (P.L.), an Executive Order (E.O.), DoD Instructions (DoDIs), Directives (DoDDs), or other types of documentation. When available, the source will include paragraph (Para.), section (Sec.), or enclosure (Enc.) numbers and the reference (Ref.) identifier from the list of references in this instruction. STATUTORY items and sources appear in ALL CAPS; Regulatory items and sources appear in normal text. Requirements are in alphabetical order.

  • (1) A dot (●) in a cell indicates the specific applicability of the requirement to program type and life-cycle event, and represents the initial submission of information. Moving right across a row, a checkmark (√) indicates the requirement for updated information, and another dot indicates submission of new information.
  • (2) Notes accompany each row to explain the requirement, limit or extend the requirement’s applicability to program type and/or life-cycle event, or refer the reader to more detailed direction.

c. Labels for the “Life-Cycle Event” columns represent the following events:

  • (1) “MDD A review that is the formal entry point into the acquisition process and is mandatory for all programs. A successful MDD may approve entry into the acquisition management system at any point consistent with phase-specific and statutory requirements but will normally be followed by a MSA phase. The principal documents at this decision point are the ICD and Analysis of Alternatives Study Guidance and Plan. A successful MDD normally does not mean that a new acquisition program has been initiated. ”—Materiel Development Decision.
  • (2) “MS A”— Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. A Decision Review.
  • (3) “CDD Val”—Capability Development Document Validation.
  • (4) “Dev RFP Rel”—The Development RFP Release Decision Point conducted before Milestone B to authorize release of the RFP for the next phase.
  • (5) “MS B”—Milestone B Decision Review.
  • (6) “MS C”—Milestone C Decision Review.
  • (7) FRP/FD Dec”—The Full-Rate Production (FRP) Decision or the Full Deployment (FD) Decision.
  • (8) “Other”—An event other than the events listed above; the event will be identified in the notes associated with the row.

d. Documentation for the identified events will be submitted at least 45 calendar days before the planned review.

e. Information requirements that are finalized and approved by the responsible authority in support of the Development RFP Release Decision Point do not have to be re-submitted prior to Milestone B unless substantive changes have occurred.

f. Final milestone documents for programs reviewed at the OSD level will be submitted to the Acquisition Information Repository within 5 business days of document approval.

g. In Table 2, when applied to requirements associated with the Development RFP Release Decision Point, the modifier “draft” will mean a Program Manager-, Program Executive Officer (PEO A military or civilian official assigned program responsibilities for Acquisition Category I and IA and sensitive classified programs, or for any other program determined by the Component Acquisition Executive to require dedicated executive management.), and CAE Secretaries of the military departments or heads of agencies with the power of redelegation. In the military departments, the officials delegated as CAEs (also called SAEs are respectively, the ASA(AL&T); the ASN(RD&A); and the ASAF(A)). The CAEs are responsible for all acquisition functions within their components. This includes both the SAEs for the military departments and acquisition executives in other DoD components, such as SOCOM and DLA, which also have acquisition management responsibilities.-approved draft subject to change based on results of the source selection process and pre-Milestone B Component and OSD staff coordination.

h. The Program Manager may submit a document prepared to satisfy the information requirements of multiple programs (instead of a program-specific document). Such substitution will require written permission from the approving authority. i. When there is a logical relationship between required documents, e.g., the Acquisition Strategy and the Life-Cycle Sustainment Plan, and consequent coordination can be streamlined, the MDA may approve combining requirements.

4. APBs AND BASELINE BREACHES

a. The APB An agreement between the PM and the MDA that reflects the approved program and contains schedule, performance, and cost parameters that are the basis for satisfying an identified mission need. The first APB is approved by the MDA prior to a program entering EMD, or at program initiation, whichever occurs later. As a minimum, the APB contains the objective and threshold values for major milestones and significant schedule events, KPPs from the approved requirements document, and the LCCE approved for the program. will describe the approved program. The APB represents the formal commitment of the Component and the acquisition chain of command to the MDA. Deviations from the approved APB will be immediately reported to the MDA. Deviations are specified default thresholds for schedule 1. Series of things to be done in a specific sequence within a given period of time. 2. A timetable. 3. A listing of activities and events organized by time. and cost of: (1) Objective schedule value plus 6 months. (2) Objective cost value plus ten percent.

b. Table 3 in this enclosure provides acquisition program baseline policy, addressing Original Baselines, Current Baselines, Baseline Deviations, and Subprograms.

c. Table 4 in this enclosure provides the statutory breach and change definitions for programs requiring APBs. (1) The MDAP An acquisition program that is designated by the USD(AT&L) as an MDAP; or is estimated to require an eventual total expenditure for RDT&E including all planned increments, of more than $480 million in FY 2014 constant dollars or, for procurement, including all planned increments, of more than $2.79 billion in FY 2014 constant dollars. definitions for significant and critical unit cost breaches are based on unit cost growth as defined in 10 U.S.C. 2433 (Reference (h)). (2) The MAIS program definitions for significant and critical changes are based on schedule, cost, or expected performance of the program as defined in 10 U.S.C. 2445c (Reference (h)). The section 2445c critical change definition also applies to programs that are designated as Pre-MAIS programs, and to any other AIS that are prior to a formal acquisition decision and are expected to exceed the MAIS program thresholds in Table 1, as prescribed by 10 U.S.C. 2445a.

d. The reporting requirements associated with breaches and changes are detailed in Table 6, this enclosure.

Table 3. APBs
Original Baseline Description, Original APB, or Original Estimate For all programs: • The first APB is approved by the MDA prior to a program entering Engineering and Manufacturing Development, or at program initiation, whichever occurs later. • Serves as the current baseline description until a revised APB is approved. • Incorporates the KPPs from the CDD or CPD (if program initiation is at Milestone The point at which a recommendation is made and approval sought regarding starting or continuing an acquisition program, i.e., proceeding to the next phase. Milestones established by DoDI 5000.02 are: Milestone A that approves entry into the Technology Maturation and Risk Reduction phase; Milestone B that approves entry into the Engineering and Manufacturing Development phase; and Milestone C that approves entry into the Production and Deployment phase. C). For MDAPs: • The cost/unit cost estimate parameters may be revised under 10 U.S.C. 2435 (Reference (h)) only if a breach occurs that exceeds the critical cost growth threshold for the program under 10 U.S.C. 2433 (Reference (h)). For MAIS Programs: • The Original Estimate is the initial schedule, performance, cost baseline submitted to Congress in a MAIS Annual Report (MAR), and can only be revised under 10 U.S.C. 2445c (Reference (h)) following a Critical Change Report to Congress. The Original Estimate is created from the objective schedule and cost values, and the performance threshold values in the first APB approved by the MDA. The statutory term, “development cost,” will be treated the same as “total acquisition cost.”
Current Baseline Description or Current APB • May be revised only: At milestone and FRP and FD decisions; As a result of a major program restructure that is fully funded and approved by the MDA; As a result of a program deviation (breach); or At the MDA’s discretion if fact of life program changes are so significant that managing to the existing baseline is not practical. • Circumstances authorizing changes are limited; revisions to the current baseline estimate/APB are not automatically authorized for program changes to cost, schedule, or performance parameters. • Revisions to the current APB will not be authorized unless there is a significant change in program parameters. • A revision to the current APB will not be authorized if proposed merely to avoid a reportable breach. • The MDA determines whether to revise the APB.
Deviations • The Program Manager will immediately notify the MDA when the Program Manager becomes aware of an impending deviation from any parameter (cost, schedule 1. Series of things to be done in a specific sequence within a given period of time. 2. A timetable. 3. A listing of activities and events organized by time. , performance, etc.). • Within 30 business days of occurrence of the deviation, the Program Manager will submit a Program Deviation Report that informs the MDA of the reason for the deviation and planned actions. • Within 90 business days of occurrence of the deviation: The Program Manager will bring the program back within APB parameters; or The Program Manager will submit information to the OIPT to inform a recommendation to the MDA on whether it is appropriate to approve a revision to an APB. • The MDA will decide, after considering the recommendation resulting from the OIPT or equivalent Component-level review, whether it is appropriate to approve a revision to an APB.
Subprograms (10 U.S.C. 2430a (Reference (h)) When an MDAP requires the delivery of two or more categories of end items that differ significantly in form and function, or the delivery of satellites in two or more increments or blocks, subprograms may be established for baselining and reporting purposes. Once one subprogram is designated, all remaining elements (increments or components) of the program will also be appropriately organized into one or more other subprograms.
Table 4. Statutory Program Breach and Change Definitions
Significant Nunn-McCurdy Unit Cost Breaches (10 U.S.C. 2433 and 2433a (Reference (h)))Applicable to MDAPs only • The cost growth threshold, as it relates to the current APB, is defined to be an increase of at least 15 percent over the program acquisition unit cost (PAUC) or average procurement unit cost (APUC) for the current program as shown in the current Baseline Estimate. • The cost growth threshold, as it relates to the original APB, is defined to be an increase of at least 30 percent over the PAUC or APUC for the original program as shown in the original Baseline Estimate. • Only the current APB will be revised.
Critical Nunn-McCurdy Unit Cost Breaches (10 U.S.C. 2433 (Reference (h)))Applicable to MDAPs only • The cost growth threshold, as it relates to the current APB, is defined to be an increase of at least 25 percent over the PAUC or APUC for the program or subprogram as shown in the current Baseline Estimate/APB. • The cost growth threshold, as it relates to the original APB, is defined to be an increase of at least 50 percent over the PAUC or APUC for the program or subprogram as shown in the original Baseline Estimate/APB for the program or subprogram. • If the program or subprogram is certified rather than terminated, the most recent major milestone must be rescinded and a new milestone is required after certification. The program establishes a revised original Baseline Estimate/APB that reflects MDA certification and approval.
Significant Change (10 U.S.C. 2445c (Reference (h)))Applicable to MAIS programs only As it relates to the original estimate (see definition in Table 3, this enclosure): • A schedule change that will cause a delay of more than 6 months but less than 1 year; • An increase in the estimated development cost or full life-cycle cost for the program by at least 15 percent, but less than 25 percent; or • A significant, adverse change in the expected performance of the MAIS to be acquired.
Critical Change (10 U.S.C. 2445c (Reference (g)))Applicable to MAIS programs and other major IT investment programs only As it relates to the original estimate (see definition in Table 3, this enclosure): • A schedule change will cause a delay of 1 year or more; • The estimated development cost or full life-cycle cost for the program has increased 25 percent or more; or • A change in expected performance will undermine the ability of the system to perform the functions anticipated (i.e., the expected failure to meet a threshold KPP). • If a MAIS program is already baselined and the MAR shows a Milestone C event, and a Milestone C is not conducted, a critical change will occur.
Cost or Schedule Growth Notification for 2366b Certified Programs (10 U.S.C. 2366b (Reference (h)))Applicable to MDAPs only • Sec. 2366b: The Program Manager for an MDAP that has received Milestone B certification will immediately notify the MDA of any changes to the program or a designated major subprogram of such program that alter the substantive basis for the certification of the milestone decision.
5. REPORTING REQUIREMENTS

a. Tables 5 through 9 of this enclosure summarize STATUTORY and Regulatory reporting requirements, and specify when the reports are due.

  • (1) Table 5 presents recurring reporting requirements.
  • (2) Table 6 lists the reporting requirements established for exceptions, waivers, and alternative reporting.
  • (3) Table 7 summarizes Cost and Software Data Reporting (CSDR) System requirements.
  • (4) Tables 8 and 9 summarize Earned Value Management (EVM) reporting requirements.

b. In Tables 5 and 6 of this enclosure, each row identifies an information requirement and the source of the requirement. STATUTORY items and sources appear in ALL CAPS; Regulatory items and sources appear in normal text.

  • (1) A dot (●) in a cell indicates the applicability of the requirement to the program type for that column.
  • (2) Table 6 summarizes STATUTORY and Regulatory requirements established for exceptions, waivers, and alternative management and reporting. The table specifies the conditions and point in time when each report is required.
  • (3) Table 7 summarizes CSDR requirements, and specifies when the reports are due.
Table 7. CSDR System Requirements
REQUIRED REPORT WHEN REQUIRED SOURCE
Contractor Cost Data Report (CCDR) • All major contracts1 and subcontracts, regardless of contract type, for ACAT I and IA programs and pre-MDAP and pre-MAIS programs subsequent to Milestone A approval, valued at more than $50 million2 (then-year dollars). Reporting is continued even if a program has been downgraded from an ACAT I or IA, unless waived by DCAPE.• Not required for contracts priced below $20 million (then-year dollars). • The CCDR requirement on high-risk or high-technical-interest contracts priced between $20 million and $50 million is left to the discretion of the DoD Program Manager and/or the Deputy Director, Cost Assessment (DDCA). • Required for major components (i.e., government furnished equipment) of an ACAT I program that are managed by the Services as ACAT II or ACAT III, and if the contract value exceeds $50 million or if determined to be a high-risk or high-technical-interest contract priced between $20 million and $50 million by the Program Manager and/or the DDCA. • Not required under the following conditions, provided the DoD Program Manager requests and obtains approval for a reporting waiver from the DDCA: procurement of commercial systems or procurement of non-commercial systems bought under competitively-awarded firm fixed-price contracts, as long as competitive conditions continue to exist. DoD 5000.04-M-1 (Reference (at)) This instruction
Software Resources Data Report (SRDR) • All major contracts1 and subcontracts, regardless of contract type, for contractors developing or producing software elements within ACAT I and IA programs and pre-MDAP and pre-MAIS programs subsequent to Milestone A approval for any software development element with a projected software effort greater than $20 million (then-year dollars).• The SRDR requirement on high-risk or high-technical-interest contracts priced below $20 million is left to the discretion of the DoD Program Manager and/or the DDCA. DoD 5000.04-M-1 This instruction
Contractor Business Data Report • Required for all contractor business entities (e.g., plant, site, or business unit) responsible for contracts with CSDR requirements. DoD 5000.04-M-1
Contractor Sustainment Report • All major contracts1 and subcontracts, regardless of contract type, valued at more than $50 million2 (then-year dollars). SEC. 832 of P.L. 112-81 (Reference (v)) DoD 5000.04-M-1
Notes: 1. For CSDR The DoD system for collecting actual costs and software data and related business data. The resulting repository serves as the primary contract cost and software data repository for most DoD resource analysis efforts, including cost database development, applied cost estimating, cost research, program reviews, Analysis of Alternatives, and life cycle cost estimates. purposes, the term “contract” (or “subcontract”) may refer to the entire standalone contract, to a specific task or delivery order, to a series of tasks or delivery orders, to a contract line item number, or to a series of line item numbers within a contract. The intent is to capture data on contractual efforts necessary for cost estimating purposes irrespective of the particular contract vehicle used. All contracts for the procurement of end items, software, or services to support the acquisition of MDAP and MAIS programs (or ACAT II and III programs which meet the above thresholds) must include the Data Item Descriptions (DIDs) and Contract Data Requirements Lists necessary for the reporting of CSDR data. 2. For CSDR purposes, contract value will represent the estimated price at contract completion (i.e., initial contract award plus all expected authorized contract changes) and be based on the assumption that all contract options will be exercised. 3. CSDR is further discussed in section 4 of Enclosure 10.

d. Paragraph 6c in Enclosure 2 provides an overview of EVM. This paragraph details application requirements and reporting requirements. (1) EVM Application. Table 8 summarizes EVM application requirements. EVM is applied to cost reimbursable or incentive contracts, inclusive of options, with 18 months or greater period of performance and based on the nature of the work scope.

Table 8. EVM Application Requirements
Contract Value Applicability Notes Source
< $20M EVM not required; may be applied at PM discretion based on risk to the Government Requires business case analysis and MDA approval Part 7 of OMB Circular A-11 (Reference (c)); DFARS 234.201 (Reference (al)); This instruction
≥ $20M & < $100M EVM Required; contractor is required to have an EVM system (EVMS) that complies with the guidelines in EIA-748* The Government reserves the right to review a contractor’s EVMS when deemed necessary to verify compliance
≥ $100M EVM Required; contractor is required to have an EVMS that has been determined to be in compliance with the guidelines in EIA-748* The Contractor will provide access to all pertinent records and data requested by the Contracting Officer or duly authorized representative as necessary to permit initial and ongoing Government compliance reviews to ensure that the EVMS complies, and continues to comply, with the guidelines in EIA-748*.
Additional Information For ACAT ID and IAM programs, OSD USD(AT&L) Performance Assessments and Root Cause Analyses (PARCA), in coordination with the CAE or designee, will review proposed contract work scope for EVM applicability and provide a recommendation to the DAE/MDA for a determination of EVM applicability. For all other ACAT levels, the CAE, or designee, will review and determine EVM applicability. If EVM is determined to apply, then threshold application in this table is utilized or a waiver from the CAE is required. If, based on the nature of the work, EVM is determined not to apply, then EVM is not placed on contract. Applying EVM outside the thresholds and criteria above, to include application on firm, fixed-price (FFP) contracts, FFP task orders, or FFP delivery orders, a cost-benefit analysis will be conducted, MDA approval is required, and the results provided to the contracting officer for documentation in the contract file. The term “contracts” includes contracts, subcontracts, intra-government work agreements, and other agreements. For indefinite delivery, indefinite quantity (IDIQ) contracts, inclusion of EVM requirements is based on the estimated ceiling of the total IDIQ contract, and then is applied to the individual task/delivery orders, or group(s) of related task/delivery orders, that meet or are expected to meet the conditions of contract type, value, duration, and work scope. The EVM requirements should be placed on the base IDIQ contract and applied to the task/delivery orders, or group(s) of related task/delivery orders. “Related” refers to dependent efforts that can be measured and scheduled across task/delivery orders. The Integrated Baseline Review is required when EVM is determined to be applicable. The initiation of an over-target baseline or over-target schedule must be approved by the Government program manager. Application thresholds are in then-year dollars. * EIA-748 = Electronic Industries Alliance (EIA) 748-C (Reference (au))

(2) EVM Reporting. Table 9 summarizes EVM reporting requirements. The Integrated Program Management Report (IPMR) contains data for measuring cost and schedule performance on DoD acquisition contracts.

Table 9. EVM Reporting Requirements
Contract Value Applicability Notes Source
< $20M Not required IPMR Should be used if cost and/or schedule reporting is requested by the PMO IPMR DID                       DI-MGMT-81861A*
≥ $20M & < $100M Required monthly when EVM requirement is on contract Formats 2, 3, and 4 may be excluded from the contract data requirements list (CDRL) at program manager discretion based on risk
≥ $100M Required monthly when EVM requirement is on contract All Formats must be included in the CDRL
Additional Information For ACAT I contracts, task orders, and delivery orders, IPMR data will be delivered to the EVM Central Repository. The IPMR can be tailored to collect cost and/or schedule data for any contract regardless of whether EVM is required. For information on tailoring the IPMR, refer to the DoD IPMR Implementation Guide (Reference (cj)). Formats and reporting requirements for the IPMR are determined and managed by USD(AT&L) through the office of PARCA. Reporting thresholds are in then-year dollars. DI-MGMT-81861A = Data Item Management-81861 (Reference (av))
6. CCA COMPLIANCE

Table 10 summarizes the requirements levied on all programs that acquire IT, including NSS, at any ACAT level. Amplifying guidance for CCA compliance is detailed in section 3 of Enclosure 11.

Table 10. CCA Compliance
Actions Required to Comply With the CCA (Subtitle III of title 40 of U.S. Code (Reference (p)))1 Applicable Program Documentation2
1. Make a determination that the acquisition supports core, priority functions of the DoD.3 ICD, IS ICD, Problem Statement for a DBS, or urgent need requirements documents
2. Establish outcome-based performance measures linked to strategic goals.3, 4 ICD, IS ICD, CDD, CPD, AoA, APB
3. Redesign the processes that the system supports to reduce costs, improve effectiveness and maximize the use of commercial off-the-shelf technology.3, 4 ICD, IS ICD, Concept of Operations, AoA, Business Process Reengineering
4. Determine that no private sector or government source can better support the function.4, 5 Acquisition Strategy, AoA
5. Conduct an analysis of alternatives.4, 5 AoA
6. Conduct an economic analysis that includes a calculation of the return on investment; or for non-AIS programs, conduct a life-cycle cost estimate.4, 5 Component Cost Estimate, Component Cost Position, Program Economic Analysis for MAIS programs
7. Develop clearly established measures and accountability for program progress.4 Acquisition Strategy, APB7, TEMP7
8. Ensure that the acquisition is consistent with the DoD Information Enterprise policies and architecture, to include relevant standards.4 CDD NR-KPP, CPD NR-KPP, ISP
9. Ensure that the program has a Cybersecurity Strategy that is consistent with DoD policies, standards and architectures, to include relevant standards.4 Cybersecurity Strategy, Program Protection Plan, Risk Management Framework Security Plan
10. Ensure, to the maximum extent practicable, (1) modular contracting has been used, and (2) the program is being implemented in phased, successive increments, each of which meets part of the mission need and delivers measurable benefit, independent of future increments.4 Acquisition Strategy
11. Register Mission-Critical and Mission-Essential systems with the DoD CIO.4, 6 DoD Information Technology Portfolio Repository
Notes:1. Table 2 in this enclosure indicates when the program manager must report CCA compliance. 2. The system documents/information cited are examples of the most likely but not the only references for the required information. If other references are more appropriate, they may be used in addition to or instead of those cited. Include page(s) and paragraph(s), where appropriate. Urgent needs may cite the associated urgent needs documentation to demonstrate CCA compliance, e.g., the Course of Action and/or the network connection documentation. 3. These requirements are presumed to be satisfied for weapons systems with embedded IT and for Command and Control Systems that are not themselves IT systems. 4. These actions are also required to comply with section 811 of Public Law 106-398 (Reference (q)). 5. For NSS, these requirements apply to the extent practicable (40 U.S.C. 11103 (Reference (p)) discusses NSS). 6. Mission-Critical Information System. A system that meets the definitions of “information system” and “national security system” in the Clinger-Cohen Act (Subtitle III of title 40 of U.S. Code (Reference (p))), the loss of which would cause the stoppage of warfighter operations or direct mission support of warfighter operations. (The designation of mission critical will be made by a DoD Components The Office of the Secretary of Defense; the military departments; the Chairman, Joint Chiefs of Staff and the Joint Staff; the combatant commands; the Office of the Inspector General of the DoD; the defense agencies; DoD field activities; and all other organization entities within the DoD. head, a Combatant Commander, or their designee. A financial management IT system will be considered a mission-critical IT system as defined by the Under Secretary of Defense (Comptroller) (USD(C)).) A “Mission-Critical Information Technology System” has the same meaning as a “Mission-Critical Information System.” Mission-Essential Information System. A system that meets the definition of “information system” in 44 U.S.C. 3502 (Reference (aw)), that the acquiring DoD Component Head or designee determines is basic and necessary for the accomplishment of the organizational mission. (The designation of mission-essential will be made by a DoD Component head, a Combatant Commander, or their designee. A financial management IT system will be considered a mission-essential IT system as defined by the USD(C).) A “Mission-Essential Information Technology System” has the same meaning as a “Mission-Essential Information System.” 7. The APB and TEMP may be submitted in draft to expedite program assessment.