VALUE ENGINEERING

A study to identify the necessary elements for a joint DoDindustry value engineering undertaking was prepared for ASD I and L, encompassing methodology, criteria, evaluation, change procedures, level of effort, organization, selection and incentives. Evaluation by OSD of this report was made. It encompasses necessary measures to 1 reinforce DoDs already stated endorsement of the V.E. program, 2 update ASPR periodically to provide substantial financial incentives to defense contractors for successful performance of V.E., 3 develop improved training programs, 4 give wide distribution to the V.E. Handbook H-111 throughout the defenseindustry complex and 5 issue a V.E. specification to establish minimum standards for performance of V.E. under program requirements clauses in defense contracts.