Technical Service Center
Value Engineering Program
It's The Law — Government Policy and Regulations
The National Defense Authorization Act for Fiscal Year 1996 included 41USC401 subpart 36 (PL 104-106), requiring "Each executive agency shall establish and maintain cost-effective value engineering procedures and processes."
This general requirement is addressed more specifically in the Office of Management and Budget (OMB) Circular A-131. This circular has been in existence for many years, but was not given the force of law until PL 104-106 was enacted. The Circular defines several Value Engineering (VE) [Value Method] terms, sets broad policy, sets minimum agency responsibilities, and requires reporting of results of using VE.
Value Engineering is also mandated in the Federal Acquisition Regulations (FARs), Title 48, Part 48, in contract clauses in Part 52, and in Part 31 Contract Cost Principles and Procedures.
The Department of Interior has supplemented Pl 104-106, OMB Cir A-131, and the FAR Part 48 with Departmental Manual (DM) Part 369-1 (while updates are being started, the Department has issued an Interim Policy (pdf 300k), which is in effect and supercedes the old DM 3679-1) DM 369-1 further defines roles and responsibilities for Reclamation (and all other DOI Services, Bureaus, and agencies).
Reclamation has further defined roles and responsibilities in the Reclamation Manual with Policy CMP P05 (PDF) and Directives and Standards CMP 06-01 (PDF).
In brief, Reclamation is required to:
1) identify all projects, programs, systems, and products with the potential to yield significant savings or best value from the application of VE techniques [value studies],
2) perform indicated studies, and
3) maintain files on what has been studied, what has not been studied and why, what value study proposals have been made, implemented or not implemented, and why.
4) encourage, evaluate and process Value Engineering Change Proposals (VECPs) from contractors in accordance with Far Parts 31, 48, and 52.
Last Modified:
Bureau of Reclamation, Department of the Interior