Technical Service Center
Value Engineering Program
Our 26:1 Return on Investment
(How we saved over $90 million)
It may sound like a reckless claim, but it isn't. We try to be diligent in how we define and claim savings. The list below shows our Value Program performance for several fiscal years. We have excluded savings on projects or activities funded by other agencies even though we did the studies. Following the list we discuss in more detail what we mean by "savings" and how we measure it.
Fiscal Years |
|
| Cost Savings (incl. VECP) | $51,874,293 |
| Cost Avoidance | $45,678,000 |
| Total Savings + Avoidance | $97,552,293 |
| Contractors Share of Savings | $332,859 |
| Cost of Value Studies | $2,139,891 |
| Other Program Costs | $1,593,245 |
| Total Program Costs | $3,788,136 |
| Return on Investment (ROI) | 26.10:1 |
We define savings (for project studies) as the difference in the cost to build the project 1) before the study was conducted and 2) the cost to build the project after the approved study recommendations are incorporated and the project is ready to advertise. Within reason, other factors affecting cost (i.e. other design changes) are discounted.
For planning studies we typically use "avoidances" rather than "savings" to describe the difference between pre- and post- study cost estimates. Where an activity is in a concept or planning stage, funds typically have not been appropriated and the term cost avoidances is more correct than cost savings.
Even though many studies report modest savings, several report significant savings. The table below lists several very successful studies:
Recent Reclamation Value Program Highlights (PDF 56K)
Last Modified:
Bureau of Reclamation, Department of the Interior