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Value Engineering

Value engineering (VE), with DoD origins dating back to April 1954 in the Navy’s Bureau of Ships, plays an integral and enduring role in accomplishing the DoD’s mission to provide the military forces needed to deter war and protect the security of our nation. Components use VE to systematically analyze the functions of programs, projects, systems, products, items of equipment, facilities, buildings, services, and supplies in order to achieve the essential functions at the lowest life cycle cost consistent with required performance, reliability, quality, and safety. DoD civilian and military personnel focus their use of VE, either on its own or in conjunction with other value-improving initiatives, on gaining full value from every dollar. The DoD VE program has two elements:

  • DoD military and civilian personnel VE effort in which value engineering proposals (VEP) are used to implement change
  • DoD contractor VE effort (required or voluntary) in which value engineering change proposals (VECP) are used to implement change after DoD acceptance

Components retain DoD resource benefits resulting from the use of VE.

Statute, Regulation, and Policy

Department of Defense Instruction 4245.14, “DoD Value Engineering (VE) Program” (DoDI 4245.141), implements section 1711 of title 41, United States Code, “Value Engineering” (41 USC 17112), and Office of Management and Budget Circular No. A-131, “Value Engineering” (OMB A-1313), to ensure the “effective administration of the DoD VE Program.” FAR Part 484, “Value Engineering,” “prescribes policies and procedures for using and administering value engineering techniques in contracts.”

Guidance and Resources

  • Defense Acquisition Guidebook (DAG)5 CH 3-2.4.4 Value Engineering
  • Value Engineering: A Guidebook of Best Practices and Tools (SD-246)
  • Defense Acquisition University Continuous Learning Module CLE 0017, “Value Engineering”

DoD Honorary VE Awards Program

Through the DoD VE Achievement Award, the Department honors DoD civilian and military organizations, teams, individuals, or programs/projects for exemplary VE accomplishments.

DoD VE Achievement Awards

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