Value engineering can be defined as an organized effort directed at analyzing designed building features, systems, equipment, and material selections for the purpose of achieving essential functions at the lowest life cycle cost consistent with required performance, quality, reliability, and safety.

In the design phase of federal building development, properly applied value engineering considers alternative design solutions to optimize the expected cost/worth ratio of projects at completion. Value engineering elicits ideas on ways of maintaining or enhancing results while reducing life cycle costs.

In the construction phase, GSA PBS contractors are encouraged through shared savings to draw on their special 'know-how' to propose changes that cut costs while maintaining or enhancing quality, value, and functional performance.