| This link takes you to a site, maintained by the Defense Department, at which you can learn about the use of a project management system called “Earned Value Management (EVM)”. The contractor use of Earned Value Management is encouraged by the Defense Department. Earned Value Management focuses on the use of actual costs of various activities composing a project, and comparing these costs to a measurement called “earned value”, which is a metric related to activity completion (rather than planned spend). Comparing actual costs to activity completion (rather than planned spend, or planned costs) provide more accuracy and better decision-making information, according to EMV proponents. |