Please join Jennifer Schaus & Associates every Wednesday in 2021 for a complimentary Wednesday series. See the full recording on our YouTube Channel (coming soon). For more information about our federal contracting services please visit http://www.Jenniferschaus.com or contact us at 202-365-0598. Win more federal government contracts!

1. DFARS - 2021
Defense
Federal Acquisition Regulation
Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

2. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About The Series
- Complimentary Webinar Series
- Every Wednesday at 12pm EST
- Recorded and posted on our website and YouTube
Channel
- Speakers are attorneys, consultants, subject matter
experts in defense contracting

3. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
 Full training calendar: virginiaptac.org & useful links
 Register for free counseling: https://virginiaptac.org/services/counseling/
 Your “one stop” shop for Government Contracting assistance
 Reach us at ptac@gmu.edu or 703-277-7750
This procurement technical assistance center is funded in part through a cooperative agreement with the Defense Logistics Agency.

4. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

5. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com

6. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
About Us
- Professional services for federal contractors
- Market Analysis
- Proposal Writing / Pricing
- Contract Compliance & Administration

7. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com
Title Date Sponsor Link Attendee/Registration Link
Fiscal New Year Kick-Off - BEST
PRACTICES
October 01, 2021
12:00pm – 1:50pm
https://register.gotowebinar.c
om/register/1301710033692
969229
https://register.gotowebinar.c
om/register/2204483846577
694479

8. Our 2021 Webinar News
* Use Code “DFARS”
for a $15 Discount!

9. Gov Con
LIVE Q&A
Webinar Series
2021
Jacob Barclay
Ryan Bradel
Rebecca Stewart
Mark Snyderman
Friday, August 13, 2021
Get LIVE Answers to your
questions about:
Compliance

10. Gov Con
LIVE Q&A
Webinar Series
2021
Reena Bhatia
Troy Comfort
Deborah Hurley
Andres Vera
Friday, September 10, 2021
Get LIVE Answers to your
questions about:
Oral Presentations

11. Gov Con
LIVE Q&A
Webinar Series
2021
Anna Urman
Eric Coffie
Cy Alba
Tim Furin
Friday, October 8, 2021
Get LIVE Answers to your
questions about:
Set-Asides

12. Gov Con
LIVE Q&A
Webinar Series
2021
Marsha Lindquist
Michael Gallo
Traci Shepps
Jeff Shapiro
Friday, November 12, 2021
Get LIVE Answers to your
questions about:
Pricing

13. Gov Con
LIVE Q&A
Webinar Series
2021
Shirley Collier
Joshua Dearmon
Kate Troendle
Brad Jorgensen
Friday, December 10, 2021
Get LIVE Answers to your
questions about:
M&A

14. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
About Our Speaker
Lori Ann Lange
Peckar & Abramson, P.C.
llange@pecklaw.com
Phone # (202) 293-8815

15. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
Major System Acquisition
Wednesday, 11 August 2021

16. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
DFARS PART 234 – MAJOR SYSTEM ACQUISITION
• What is a major system?
• DoD’s acquisition of major systems
• Earned Value Management System
• Acquisition of major weapon systems as commercial items
• Cost and software data reporting

17. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
WHAT IS A MAJOR SYSTEM?
• Major system = combination of elements that will function together to produce the
capabilities required to fulfill a mission need
• May include hardware, equipment, software, or a combination of them
• Does not include construction or other improvements to real property
• Total expenditures for research, development, testing, and evaluation are estimated to be:
(1) more than $185M based on FY 2014 constant dollars; or (2) the eventual total
expenditure for the acquisition exceeds $835M based on FY 2014 constant dollars

18. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
MAJOR SYSTEM ACQUISITION
• DoD develops an acquisition strategy
specifically tailored to the program
• Strategy involves input from the Joint
Capabilities Integration and Development
System (JCIDS); Planning, Programming,
Budgeting, and Execution (PPBE); and the
Defense Acquisition System (DAS)
Source: Defense Acquisition Guidebook

19. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234

20. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
MAJOR SYSTEM ACQUISITION
• DoD will seek to competitively bid the requirement for major systems
• DoD may select multiple contractors during both the development phase and the
production phase
• However, a contract initially competitively awarded for the development phase may
contain a contract line item or contract option for the delivery of initial or additional items

21. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
MAJOR SYSTEM ACQUISITION
• DoD will select the type of contract to be awarded based on program risk
• Limitations on the use of cost-reimbursement contracts at the engineering and
manufacturing development (EMD) stage
• Cost-reimbursement type contracts are used when the program risk is too great to
permit the use of a fixed-price contract
• Cost-reimbursement line items cannot be used in production contracts without a
written certification that the particular line items are needed to provide a required
capability in a timely and cost effective manner

22. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
EARNED VALUE MANAGEMENT IN GENERAL
• DFARS 234.2
• Earned Value Management (EVM) vs. Earned Value Management System (EVMS)
• EVM = program management tool that integrates technical, cost, and schedule
objectives to identify risk and implement mitigation measures
• EVMS = the Contractor’s internal control system used to meet EVM requirements
• When applicable, DFARS Subpart 234.2 requires major systems contracts be managed
through EVM and that the Contractor have a compliant EVMS
• DoD has adopted EIA-748 as its guidelines for determining whether a Contractor’s
EVMS is acceptable

23. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
EARNED VALUE MANAGEMENT – WHEN APPLICABLE
• Applies to cost or incentive contracts and subcontracts
• Discouraged for fixed-price contracts

24. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
EARNED VALUE MANAGEMENT – WHEN APPLICABLE
• Cost or incentive contracts and subcontracts of $100M (increased from $50M) or more
• Contractor must use an EVMS that DoD has determined is compliant with EIA-748
• Cost or incentive contracts and subcontracts of $20M or more but less than $100M
• Contractor must use an EVMS that is compliant with EIA-748
• DoD will not make a formal determination of whether the Contractor’s EVMS is
compliant
• Cost or incentive contracts and subcontracts less than $20M
• Optional
• Program Manager must conduct a cost-benefit analysis
• If applied, the Contractor must have an EVMS that is compliant with EIA-748

25. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
EARNED VALUE MANAGEMENT REVIEWS
• DoD can perform compliance reviews and surveillance reviews
• DCMA performs these reviews for DoD (except for DoD components that are part of the
intelligence community)
• Compliance review – ensure that the Contractor’s EVMS meets the guidelines in EIA-748
• Surveillance review – verify that the Contractor’s EVMS remains compliant with EIA-748

26. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
EARNED VALUE MANAGEMENT NONCOMPLIANCE
• The Contracting Officer will notify the Contractor of any significant deficiencies and provide
the Contractor an opportunity to respond
• The Contracting Officer will review the response and make an initial determination whether
to approve or disapprove the Contractor’s EVMS
• The Contractor will be given the opportunity to correct the significant deficiencies or
submit an acceptable corrective action plan
• The Contracting Officer may withhold payment if he/she/they makes a final determination
disapproving the Contractor’s EVMS

27. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
EARNED VALUE MANAGEMENT CLAUSES
• DFARS 252.234-7001, Notice of Earned Value Management System
• For proposals of $100M or more (raised from $50M), the Offeror has to submit a plan
for compliance with EIA-748 if the Offeror proposes to use an EVMS that DoD has not
yet determined to be in compliance with EIA-748
• For proposals of less than $100M (raised from $50M), the Offeror has to submit a
written description of the management procedures it will use to comply with DFARS
252.234-7002
• The Offeror has to identify the subcontractors or subcontract effort subject to EVMS

28. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
EARNED VALUE MANAGEMENT CLAUSES
• DFARS 252.234-7002, Earned Value Management System
• Requires the Contractor to use an EVMS that complies with EIA-748
• Contractor’s EVMS must be approved by DoD if the contract is $100M (raised from
$50M) or more

29. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
ACQUISITION OF A MAJOR WEAPON SYSTEM AS A COMMERCIAL ITEM
• Commercial item = an item of the type customarily used by the general public or by non-
governmental entities for purposes other than government purposes that has been sold,
leased, or licensed to the general public; or has been offered for sale, lease, or license to
the general public
• Includes items that have evolved from commercial items through advances in technology
or performance and that will be available in the commercial marketplace in time to satisfy
the contract delivery requirements
• Includes items that have been modified if the modification is a type customarily available in
the commercial marketplace or is a minor modifications made to meet government
requirements

30. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
ACQUISITION OF A MAJOR WEAPON SYSTEM AS A COMMERCIAL ITEM
• The following items may be treated as commercial items or be acquired under commercial
item procedures if certain conditions are met:
• Major weapons system
• Subsystems
• Components and spare parts

31. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
ACQUISITION OF A MAJOR WEAPON SYSTEM AS A COMMERCIAL ITEM
• The Contractor has to submit pricing information to allow the Contracting Officer to
determine whether the price is reasonable
• Prices paid for the same or similar commercial items under comparable terms and
conditions by both Government and commercial customers
• If the Contractor cannot provide sufficient information, the Contracting Officer may request
that the Contractor submit information on:
• Prices paid for the same or similar items under different terms and conditions;
• Prices paid for similar levels of work or effort on related products or services;
• Prices paid for alternative solutions or approaches; and
• Other relevant information

32. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
COST AND SOFTWARE DATA REPORTING
• Mandatory for major defense acquisition programs and major automated information
system programs
• Two principal components:
• Contractor cost data reporting
• Software resources data reporting

33. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
DFARS Part #234
COST AND SOFTWARE DATA REPORTING CLAUSES
• DFARS 252.234-7003, Notice of Cost and Software Data Reporting System
• Requires the Offeror as part of its proposal to submit information on how it will satisfy
the Cost and Software Data Reporting (CSDR) plan and the DoD CSDR Manual (DoD
5000.04-M-1)
• DFARS 252.234-7004, Cost and Software Data Reporting
• Requires the Contractor to use:
• A documented standard CSDR process that satisfies the DoD CSDR Manual
• Management procedures that generate timely and reliable information for reports
• The government-approved CSDR plan for the contract, DD Form 2794, and the
Resource Distribution Table

34. DFARS – 2021 - Defense Federal Acquisition Regulation Supplement
JSchaus & Associates – Washington DC – hello@JenniferSchaus.com
THANK YOU to Our Speaker
Lori Ann Lange
Peckar & Abramson, P.C.
llange@pecklaw.com
Phone # (202) 293-8815

35. Thank You For Attending!
DFARS - 2021
Defense Federal Acquisition Regulation Supplement
Complimentary Webinar Series
JSchaus & Associates – Washington, DC – hello@JenniferSchaus.com