EARNED VALUE MANAGEMENT
Federal Acquisition Regulation (FAR) 34.2 discusses earned value management (EVM) and the implementation of OMB Circular A-11 as a way to help the government assess the value that is being provided on a project. EVM is a response to the ambiguity that can sometimes occur in status reports. The government can mandate the use of EVM on federal contracts; many commercial entities are requiring the use of EVM as well. Using EVM enables an organization to achieve greater project performance, because it collects metrics that can be used for continuous process improvement.