[Code of Federal Regulations]
[Title 48, Volume 1]
[Revised as of October 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 48CFR48]

[Page 901-902]
 
            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM
 
                CHAPTER 1--FEDERAL ACQUISITION REGULATION
 
PART 48--VALUE ENGINEERING--Table of Contents
 
                  Subpart 48.1--Policies and Procedures
 
48.103  Processing value engineering change proposals.

    (a) Instructions to the contractor for preparing a VECP and 
submitting it to

[[Page 902]]

the Government are included in paragraphs (c) and (d) of the value 
engineering clauses prescribed in subpart 48.2. Upon receiving a VECP, 
the contracting officer or other designated official shall promptly 
process and objectively evaluate the VECP in accordance with agency 
precedures and shall document the contract file with the rationale for 
accepting or rejecting the VECP.
    (b) The contracting officer is responsible for accepting or 
rejecting the VECP within 45 days from its receipt by the Government. If 
the Government will need more time to evaluate the VECP, the contracting 
officer shall notify the contractor promptly in writing giving the 
reasons and the anticipated decision date. The contractor may withdraw, 
in whole or in part, any VECP not accepted by the Government within the 
period specified in the VECP. Any VECP may be approved, in whole or in 
part, by a contract modification incorporating the VECP. Until the 
effective date of the contract modification, the contractor shall 
perform in accordance with the existing contract. If the Government 
accepts the VECP, but properly rejects units subsequently delivered or 
does not receive units on which a savings share was paid, the contractor 
shall reimburse the Government for the proportionate share of these 
payments. If the VECP is not accepted, the contracting officer shall 
provide the contractor with prompt written notification, explaining the 
reasons for rejection.
    (c) The following Government decisions are unilateral decisions made 
solely at the discretion of the Government:
    (1) The decision to accept or reject a VECP.
    (2) The determination of collateral costs or collateral savings.
    (3) The decision as to which of the sharing rates applies when 
Alternate II of the clause at 52.248-1, Value Engineering, is used.
    (4) The contracting officer's determination of the duration of the 
sharing period and the contractor's sharing rate.

[48 FR 42443, Sept. 19, 1983, as amended at 54 FR 5057, Jan. 31, 1989; 
64 FR 72449, Dec. 27, 1999]