Value Engineering Handbook
INSTITUTE FOR DEFENSE ANALYSES ALEXANDRIA VA
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In todays environment of reduced budgets and staffing, the Department of Defense DoD can no longer afford the extensive time delays and increased costs that programs have experienced in the past. When one program costs more than planned, decisionmakers are forced to delay or cancel other programs. Such actions result in criticisms and may prompt outside involvement by the Government Accountability Office, the Inspector General, or even Congress. Value Engineering VE can play a key role in ensuring programs stay within budget or even save money. This document updates information in DoD Handbook 4245.8-H, Value Engineering, last published in March 1986, and Army Pamphlet 11-3, Value Engineering undated, both of which were used as sources of information. It shows how VE can be an effective mechanism for generating cost savings or cost avoidance for contractors and the U.S. Government. It is intended for multiple audiences. For Government practitioners, it gives details on the basics of the VE methodology and discusses how to establish a VE program. For Government program office personnel, it explains the impact VE can have on their success. For Government contracting officers and industry, it describes best practices for applying VE on Government contracts. For both Government and industry management, it provides an overview of the benefits of a strong VE program.
- Economics and Cost Analysis