How do I apply the DoD EVM policy to contracts for which the nature of the work is level of effort?
A. As a general rule, EVM is required on cost or incentive contracts valued at or greater than $20 million; however, it may be necessary to consider the nature of the work associated with the contract when determining EVM applicability. In the EVM context, there are two basic classifications of the nature of workdiscrete and level of effort (LOE). Discrete work is related to the completion of specific end products or services and can be directly planned, scheduled, and measured. LOE is effort of a general or supportive nature that does not produce definite end products (time and materials and services contracts may contain LOE work). The application of EVM on work that is LOE in nature may be impractical and inefficient. Therefore, if the work on a contract is exclusively LOE, it may be appropriate to request a waiver to the EVM policy from the program decision authority. When possible, waiver requests should be included in the program acquisition strategy. If EVM is waived for a contr
