Value Engineering is an effective tool that can reduce costs for Department of Defense (DoD) efforts while maintaining or improving the value of a product or service. VE can be applied to DoD contracts in the form of a Value Engineering Change Proposal (VECP) that is submitted by a contractor to an existing government customer. A VECP must meet two requirements: 1) it must propose a change to the contract and 2) it must result in overall savings to the government. If a VECP submitted by a contractor is formally accepted and implemented by the government, the government will agree to distribute a portion of the savings back to the contractor for their role in applying VE to reduce costs and/or improve value. In previous decades, contractors frequently submitted VECPS and shared the savings with DoD. However, VECP submittals declined sharply, along with the inherent knowledge by both contractor and government to successfully process a VECP. Interest in VECPs is currently increasing, but corporate knowledge is lacking. The purpose of this workshop is to provide extensive interpretation of the specific FAR VE clauses that govern VECP submission and processing: FAR Parts 48 and 52.248-1. These clauses provide guidance to both government and contractor personnel for submitting and processing a Value Engineering Change Proposal. Specifically, the course material will assist in understanding the basics, the submittal process, and the actual incorporation of a VECP onto a DoD contract. The material provides an overview of the clauses for understanding VECPs and afterwards leads students through several practical examples in order to acquire knowledge for calculating VECP costs/savings and for applying a modification to the contract. Additional handouts and templates are provided for additional background information that will be useful for submitting VECPs and for incorporating a VECP onto a contract.
~ Charles Jennings
~ Bruce Lenzer, CVS-Life, FSAVE, CQM/OE, CLA, CAQMSA
8:00 am - 5:00 pm
This training targets opportunities for Value Engineering professionals to develop proficiency in the Decision Framing and Analyses element of input to Decision, & Risk Analyses. This requires a mindset of “enquiry” and proficiency in various toolsets’ application. Decision and Risk framing have many acceptable toolsets and project team interrogation techniques. This includes some demonstration toolsets which we have used extensively. It is important to differentiate between framing the Decisions to be made and the Risk methodologies for assessing the potential impact of the Decisions. Results have helped stakeholders and decision makers ensure high probabilities of success in deciding and selecting Value based alternatives. For more information, and to view the course flyer, please click HERE.