By Glenn Gallop, President, forProject Technology, Inc.
TL;DR: On September 14, the Deputy Secretary of War issued a memo (see link below) setting a new policy direction: mandatory EVM would be limited to major development and major production programs, and the separate government EVMS validation review would be retired in favor of Integrated Baseline Reviews.
“DoD just set a new direction for EVM. Our advice: don’t wait for the DFARS rulemaking to catch you — start tracking how DoD defines ‘major development’ and ‘major long-duration production’ over the next 90 days. We expect the picture to get much clearer once that 90-day window closes.”
Read the source: Fostering One Strong Industrial Base — Deputy Secretary of War memorandum, September 14, 2026 (PDF)
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Note: This is a directive to start that process, not a rule already in force. The real changes will roll out over the next several months.
Why it matters
This is one of the more direct EVM-specific moves buried in a much bigger acquisition-reform memo. Worth a close read if your organization is involved in DoD-side EVM compliance.
It doesn’t get rid of EVM altogether, and nothing changes on your contracts today. EVM is still required on qualifying programs right now. But it sets a direction: less EVM burden overall, cost-risk-driven oversight narrowed, everything else pushed toward commercial, fixed-price contracts.
This kind of change doesn’t happen overnight — it has to filter down through DFARS rulemaking, class deviations, and agency policy before it shows up in an actual contract. The memo puts real deadlines on that process: 30, 60, 90, even 180 days out. The finish line is months away, not days.
If you’ve built internal process around that separate government validation review, here’s the one thing to actually watch: it’s being retired, with Integrated Baseline Reviews taking over the job. The open question is how “major development” and “major long-duration production” get defined — that boundary, due within 90 days, decides who’s affected. That’s the number worth putting on your calendar.
Frequently Asked Questions
What happened?
A September 14, 2026 memo from the Deputy Secretary of War — titled “Fostering One Strong Industrial Base” — sets a new policy direction, effective immediately as an internal directive.
Mandatory EVM would apply only to major development programs, and major, long-duration production programs where the government keeps the cost risk. The old separate government EVMS validation review is going away too, with Integrated Baseline Reviews taking over. The actual rules implementing all this are still being written, on deadlines running 30 to 180 days out.
Does this affect me or my company?
If you work DoD contracts that use EVM, probably — especially if you’ve built compliance processes around that separate validation review.
If your work is commercial or fixed-price, this memo is good news. It’s pushing toward less EVM burden for you, not more. Either way, nothing changes on an active contract today — this is about where things are headed.
Is any action required?
Not yet, and nothing changes on your current contracts right away. But if EVMS compliance touches your programs, it’s worth flagging internally now — the DFARS rulemaking runs on 30-to-180-day deadlines, and it’s better to have this on someone’s radar before it lands than to be caught off guard when it does.
Where can I learn more?
Read the full memo below. Or check forProject’s Encyclopedia entries on Earned Value Management System and Integrated Baseline Review for background on the two ideas this memo touches most.
Source
Fostering One Strong Industrial Base — Deputy Secretary of War memorandum, September 14, 2026 · Official DoW release