Are the changes to the DoD EVM policy retroactive to existing contracts?
A. No, the changes to the EVM policy are not retroactive to existing contracts. However, they are effective immediately on new cost or incentive contracts awarded in response to solicitations or requests for proposals issued on or after April 6, 2005 (30 days from the date of the memorandum signed by the Defense Acquisition Executive). While the changes are not retroactive, program managers are not precluded from imposing new or different EVM requirements on existing contracts if the benefits outweigh the costs. Remaining contract duration and estimated costs, as well as other risk factors, should be taken into consideration when determining whether to modify the EVM requirements on existing contracts. In addition, the costs associated with the modifications will be borne by the government.
