EIA-748 is the standard an earned value management system (EVMS) is measured against. It has 32 guidelines in five categories. They state what the system must do, not how: each company writes a system description explaining how its own processes meet each one. Below, each guideline is paraphrased in plain language, with the evidence a reviewer typically asks to see and the guide on this site that covers the practice.
For why government programs require earned value at all, start with EVMS fundamentals.
The five categories
| Category | Guidelines | Purpose |
|---|---|---|
| Organization | 1 to 5 | Define the work and who is responsible for it. |
| Planning, scheduling and budgeting | 6 to 15 | Build the performance measurement baseline (PMB). |
| Accounting | 16 to 21 | Collect actual cost the same way the work was budgeted. |
| Analysis and management reports | 22 to 27 | Compare plan, progress and cost, and act on it. |
| Revisions and data maintenance | 28 to 32 | Change the baseline only in a controlled, traceable way. |
Organization: guidelines 1 to 5
Define the work and who is responsible for it.
| # | Guideline (paraphrased) | Typical evidence | Guide |
|---|---|---|---|
| 1 | Define the authorized work in a work breakdown structure (WBS) suited to internal management control. | WBS and WBS dictionary covering all contract scope | WBS |
| 2 | Identify the program organization (OBS), including major subcontractors. | OBS chart; subcontractor list tied to WBS elements | WBS |
| 3 | Integrate planning, scheduling, budgeting, work authorization and cost collection with each other and with the WBS and OBS. | System description; one control account ID used across schedule, budget and cost systems | WBS |
| 4 | Identify who is responsible for controlling overhead (indirect) costs. | Named indirect cost owners per pool | |
| 5 | Cross the WBS and OBS to form control accounts, so cost and schedule can be measured by either structure. | Responsibility assignment matrix (RAM) with one manager per control account | CAM role |
Planning, scheduling and budgeting: guidelines 6 to 15
Build the performance measurement baseline (PMB).
| # | Guideline (paraphrased) | Typical evidence | Guide |
|---|---|---|---|
| 6 | Schedule the work to show its sequence and the interdependencies needed to meet the requirements. | Integrated master schedule (IMS) with logic linked to control accounts | DCMA 14-point |
| 7 | Identify the products, milestones or other indicators used to measure progress. | Objective completion criteria per work package | EV techniques |
| 8 | Set and maintain a time-phased budget baseline at the control account level; far-term budget may be held at a higher level until it can be planned. | Time-phased PMB; planning packages for far-term work | Budget baseline |
| 9 | Budget the work by significant cost element (labor, material, subcontract, other direct). | Control account plans showing budget by element | Work package planning |
| 10 | Plan near-term work in discrete work packages budgeted in dollars, hours or other measurable units; keep far-term work in planning packages. | Work packages with dates, budget and an EV technique; planning packages converted on a rolling-wave cycle | Work package planning |
| 11 | Make the work packages plus planning packages in a control account add up to the control account budget. | Reconciliation report per control account | Work package planning |
| 12 | Use level of effort (LOE) only for work that cannot be measured discretely, and budget it time-phased. | LOE list with justification; LOE share of budget tracked | EV techniques |
| 13 | Set overhead budgets for each significant organization and reflect the planned indirect allocation in program budgets. | Forward pricing or budgeted indirect rates applied to the PMB | |
| 14 | Identify management reserve (MR) and undistributed budget (UB). | MR and UB logs with every transaction | Budget baseline |
| 15 | Reconcile the program target cost with the sum of all internal budgets and management reserve. | Contract budget base (CBB) = PMB + MR, reconciled monthly | Budget baseline |
Accounting: guidelines 16 to 21
Collect actual cost the same way the work was budgeted.
| # | Guideline (paraphrased) | Typical evidence | Guide |
|---|---|---|---|
| 16 | Record direct costs consistently with the budgets, in a formal system controlled by the general books of account. | Cost collection by charge number mapped to work packages | |
| 17 | Summarize direct costs from control accounts into the WBS without splitting one control account across two or more WBS elements. | Each control account rolls to exactly one WBS element | WBS |
| 18 | Summarize direct costs from control accounts into the organization without splitting one control account across two or more organizations. | Each control account rolls to exactly one OBS element | CAM role |
| 19 | Record the indirect costs allocated to the program consistently with the overhead budgets. | Applied indirect cost by pool and period | |
| 20 | Identify unit, equivalent unit or lot costs when needed. | Unit or lot cost reports on production contracts | |
| 21 | Account for material so that cost lands in the right control account, is recorded in the same period its earned value is taken (no earlier than receipt), and all material, including residual inventory, is accounted for. | Material EV taken at receipt or later; inventory reconciliation |
Analysis and management reports: guidelines 22 to 27
Compare plan, progress and cost, and act on it.
| # | Guideline (paraphrased) | Typical evidence | Guide |
|---|---|---|---|
| 22 | At least monthly, generate schedule variance (BCWP vs BCWS) and cost variance (BCWP vs ACWP) at the control account level, from data that reconciles with the books. | Monthly control account reports; cost reconciled to the ledger | EV metrics |
| 23 | At least monthly, identify significant schedule and cost variances and explain their causes in enough detail for management. | Variance analysis reports (VARs) above threshold, with root cause and corrective action | Variance analysis |
| 24 | Identify budgeted and applied indirect costs, and explain significant variances. | Indirect rate variance reporting | |
| 25 | Summarize the data and variances up through the WBS and organization for management and customer reporting. | CPR / IPMR formats reconciled to control account data | CPR / IPMR |
| 26 | Take management action as a result of the earned value information. | Corrective action log, closed actions traced to variances | Variance analysis |
| 27 | Develop revised estimates at completion (EAC) from performance to date, material commitments and expected future conditions, and compare them with the baseline. | Monthly EAC review; comprehensive EAC at least annually | EAC methods |
Revisions and data maintenance: guidelines 28 to 32
Change the baseline only in a controlled, traceable way.
| # | Guideline (paraphrased) | Typical evidence | Guide |
|---|---|---|---|
| 28 | Incorporate authorized changes promptly into budgets and schedules; before a change is negotiated, budget it on the estimate. | Baseline change requests (BCRs) with dates authorized and incorporated | Change control |
| 29 | Reconcile current budgets to prior budgets, separating authorized scope changes from internal replanning. | Budget log from original CBB to current | Change control |
| 30 | Control retroactive changes to actual cost, earned value or budget already reported; allow them only for error correction, routine accounting adjustments, directed changes or to improve data accuracy. | Retroactive change log with reason per entry | Change control |
| 31 | Prevent revisions to the program budget except for authorized changes. | No budget movement without a BCR or MR transaction | Budget baseline |
| 32 | Document changes to the performance measurement baseline. | PMB change history traceable to each BCR | Change control |
Where the guidelines meet: the control account
Most of the 32 guidelines land on one object: the control account, where a slice of WBS scope, one organization, a time-phased budget and a named manager meet (guideline 5). Planning (6 to 15) happens inside it, actual cost is collected against it (16 to 21), variances are analyzed at it (22 to 27), and changes to it are logged (28 to 32). That is why reviewers interview control account managers. See the CAM role and the CAM monthly rhythm.
Preparing for a review
- Trace one control account end to end: WBS dictionary entry, RAM line, work authorization, schedule tasks, work packages, cost charges, last three months of variance reports, EAC and baseline changes. If that trace holds, most guidelines hold.
- Run the DCMA 14-point checks on the IMS before reviewers do.
- Reconcile the budget log: original contract budget base to current, every change backed by a baseline change request or a management reserve transaction.
- Check the share of budget in level of effort. A high LOE share weakens the performance data and draws attention under guideline 12.
- Read the last three months of variance analysis for root causes and closed actions, not restated numbers. See variance analysis.
The integrated baseline review tests the planning guidelines on a new baseline. The full EVMS and CAM series covers each practice in depth.
Frequently asked questions
What is EIA-748?
EIA-748 (ANSI/EIA-748, Earned Value Management Systems) is the industry standard that defines what an earned value management system must do. It sets 32 guidelines in five areas: organization, planning/scheduling/budgeting, accounting, analysis and management reports, and revisions and data maintenance. US government contracts above the EVMS threshold require a system that meets it.
What are the 5 categories of the 32 EVMS guidelines?
Organization (guidelines 1 to 5), planning, scheduling and budgeting (6 to 15), accounting (16 to 21), analysis and management reports (22 to 27), and revisions and data maintenance (28 to 32).
Do the guidelines say how to build the system?
No. They say what the system must achieve, not which tools or forms to use. Each company writes a system description that explains how its processes meet each guideline, and reviewers test the system against that description.
Which guidelines are most often cited in reviews?
Findings often cluster around the schedule (6), work package planning and LOE (10, 12), material accounting (21), variance analysis and management action (23, 26), EAC (27) and retroactive changes (30). Those are where daily practice drifts from the written process.