48 CFR § 334.201 - 334.201 Policy.

---
identifier: "/us/cfr/t48/s334.201"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "48 CFR § 334.201 - 334.201   Policy."
title_number: 48
title_name: "Federal Acquisition Regulations System"
section_number: "334.201"
section_name: "334.201   Policy."
chapter_number: 3
chapter_name: "HEALTH AND HUMAN SERVICES"
subchapter_number: "F"
subchapter_name: "SPECIAL CATEGORIES OF CONTRACTING"
part_number: "334"
part_name: "MAJOR SYSTEM ACQUISITION"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "5 U.S.C. 301; 40 U.S.C. 121(c)(2)."
regulatory_source: "80 FR 72151, Nov. 18, 2015, unless otherwise noted."
cfr_part: "334"
---


# 334.201 334.201   Policy.

The Department of Health and Human Services applies the earned value management system requirement as follows:

(a) For cost or incentive contracts and subcontracts valued at $20 million or more, the contractor's earned value management system shall comply with the guidelines in the American National Standards Institute/Electronic Industries Alliance Standard 748, Earned Value Management Systems (ANSI/EIA-748).

(b) For cost or incentive contracts and subcontracts valued at $50 million or more, the contractor shall have an earned value management system that has been determined by the cognizant Federal agency to be in compliance with the guidelines in ANSI/EIA-748.

(c) For cost or incentive contracts and subcontracts valued at less than $20 million—

(1) The application of earned value management is optional at the discretion of the program/project manager and is a risk-based decision that must be supported by a cost/benefit analysis; and

(2) A decision to apply earned value management shall be documented in the contract file.

(d) For firm-fixed-price contracts and subcontracts of any dollar value the application of earned value management is discouraged.