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75 APPENDIX C Summary Responses to Questionnaire

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76 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 1 Does your agency utilize VE in the development of its projects, processes, and products? Always 8% Often 49% Rarely 43% Never 0% Ref. Agency Category Comments 3 AZ US DOT All projects meeting certain criteria are considered for a VE study. The VE Manager and Project Manager determine if a study is warranted. 4 AR US DOT We utilize VE on projects $25 million dollars or more or on projects that we see a need. 6 CO US DOT Several VE studies and accepted VECPs (during construction) per year. 11 GA US DOT In project development on projects that meet the criteria. 13 ID US DOT We follow FHWA guidelines. 17 KS US DOT We use VE in our every day practice. The above answer refers to formal VE activities. 18 KY US DOT We currently use value engineering abiding by the FHWA requirements which is total construction costs of $25 Million and on NHS. Construction uses VE on a case by case basis. 19 LA US DOT First VE study conducted Jan. 2004 with schedule to conduct min. 1 study per quarter. 23 MI US DOT Only to satisfy FHWA $25 million rule. 25 MS US DOT We followed FHWA VE requirements. 29 NV US DOT Currently only used on large projects (>$25M). When our Policy is approved (expected soon), the threshold will be reduced to $10M. 30 NH US DOT VE studies are undertaken on large projects as mutually agreed upon between FHWA Division Office and NHDOT. 31 NJ US DOT Often for projects, rarely for processes and products. 32 NM US DOT Only on transportation projects. We have not performed VE on processes or products yet. 35 ND US DOT Projects over $25 million. 36 OH US DOT Our Value Engineer guidelines are included in our Project Development Process (PDP) at two different steps. The PDP is for Major and Minor projects exceeding $20 million in total project cost. VE is conducted during Preliminary Engineering and Detailed Design stages. 38 OR US DOT 30 VE Studies 2000-2004. Most studies are performed during NHI Course. 39 PA US DOT We require VE to be done on all projects at or above $ threshold set by FHWA. Often times VEs are done on projects with cost thresholds below FHWA requirement as deemed necessary. Penndot's threshold is $20 million which is less than FHWA's which is $25 million. 42 SC US DOT It is used often in the development of projects but rarely in the development of processes and products. 43 SD US DOT SDDOT projects on the NHS system are generally less than the $25M threshold established, therefore we haven't internally formalized the VE process. However, we have other processes such as: (1) formalized Scope process prior to or as soon the project enters the Statewide Transportation Improvement Program which is being done for most projects, (2) Corridor Preservation studies, (3) Roadside Safety Audit reviews at 25% stage for the design performed on selected projects, and (4) other reviews as design proceeds. FOR SOME OF THE FOLLOWING QUESTIONS, RESPONSES ARE BASED ON THE SDDOT SCOPE PROCESS AS NOTED IN LIEU OF THE VE PROCESS. 44 TN US DOT Projects - Often, Processes and products - Rarely. 48 VA US DOT VE is required by state law on all highway projects with estimated costs of $5 million or more. It is also used on some smaller projects and on processes upon request. 51 WI US DOT Always used for projects over $25 million and encouraged for projects less than $25 million. 61 ON CDN DOT Primarily on engineering projects and engineering standards, with very little use of VA in non-engineering processes. 64 SK CDN DOT Presently investigating the introduction of Value Analysis into our Management Decision Process. 69 Fed Lands FHWA The VE program implemented by the CFLHD provides for the systematic review of its multiyear highway program to identify areas for VE studies. Reconstruction projects over $1 million are selected for VE.

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77 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 2 What is the primary motivation for your agency to use VE? Always Often Rarely Never Statutory requirement 51% 22% 11% 16% Required to obtain funding 38% 24% 22% 22% Improve project performance 29% 49% 18% 7% Reduce/avoid cost 36% 56% 9% 7% Reduce/avoid maintenance 16% 47% 27% 13% Improve safety 16% 51% 20% 13% Meet schedule 7% 31% 29% 33% Other 2% 4% 11% 7% Ref. Agency Category Comments 3 AZ US DOT Other - sometimes one motivation for a VE study is to achieve a concensus amoung all stakeholders. 7 CT US DOT At one time I believe it was an FHWA requirement that all projects (W/FHWA funding) which exceeded $25 million in construction cost undergo a VE process. CDOT maintains this policy at the same threshold policy. 17 KS US DOT "Other" refers to validating project design/concept. 18 KY US DOT We currently use value engineering abiding by the FHWA requirements which is total construction costs of $25 Million and on NHS. Construction uses VE on a case by case basis. 30 NH US DOT The primary reason for completing a VE project study is to meet the requirements of FHWA. The VE Study is completed early in the final design phase, just after the NEPA/Section 404 process review. The Department benefits by having independent professionals assess the project. Throughout the final design development phase, ongoing value engineering adjustments are implemented, but not through an extensive VE study. 31 NJ US DOT Other-improve constructibility. 39 PA US DOT All noted always factor into our motivation to use VE. 44 TN US DOT At present we use only Value Engineering projects mandated by federal law but, on the ones that we do, we strive for the other motivations listed. 49 WA US DOT Often used to validate the scope of a project. 52 WY US DOT To get an equal or better product at a lower cost is normally the driving force. 61 ON CDN DOT We also use VE where we need a process to break down silos between divisions. 64 SK CDN DOT Looking at introduction. 69 Fed Lands FHWA The Federal Highway Administration recognizes VE as an effective tool for both cost reduction and product quality improvement. Areas of study are selected to achieve the greatest savings while maintaining product quality.

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78 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 3 Does your agency have any defined policies, procedures, and/or guidelines for VE? Yes 84% No 14% Do Not Know 2% Did Not Respond 0% Ref. Agency Category Comments 3 AZ US DOT All projects over $10M or are of a complicated nature will be considered for a study. All projects over $25M and are on the NHS will have a VE Study. 4 AR US DOT VE coordinator will conduct studies on an as-needed basis or for projects with cost of $25 million or more. 5 CA US DOT The VA program has policy and guidelines. 6 CO US DOT Small amount of guidance in Stewardship Agreement between CDOT and FHWA, Project Development manual. 7 CT US DOT The "Policy" is any project w/const costs over $25 million. "Procedures" are loosely defined by past practice. CDOT only does 1-3 VE Studies in a given year. 13 ID US DOT We use FHWA requirements. 19 LA US DOT Established as Engineering Directive from Chief Engineer. 23 MI US DOT Thin. 24 MN US DOT We are currently following FHWA VE guidelines and working on a Department wide VE policy. No completion date at this time. 26 MO US DOT Policy contained in Project Development Manual PDM Sec. 2-05, Stan. Spec's 104-6. 29 NV US DOT Policy approval is pending. 30 NH US DOT NHDOT does not have any defined policy regarding VE applications. 31 NJ US DOT We are part of the project planning and development process. 34 NC US DOT Established Policy is not followed or mandated by upper management. 35 ND US DOT Federal Highway Administration. 36 OH US DOT VE Policy and VE Procedures for Design and for Construction. 39 PA US DOT We follow FHWA guidelines as established in the "Federal Aid Policy Guide" dated 9/8/99, transmittal 24. 44 TN US DOT Currently in draft form, under development. 48 VA US DOT Required by state statute. 49 WA US DOT Design Manual Chapter 315. 51 WI US DOT Procedure 1-15-1 of our Facilities Development Manual details our policy. Copy is attached. 52 WY US DOT Very limited. 61 ON CDN DOT Policy memo, Project Manager Manual, Value Engineering Coordinator Manual, web site. 64 SK CDN DOT Looking at introduction. 67 Ottawa CDN CITY Procedures are being developed and will be included in the cities project management manual for capital projects.

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79 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION If so, where do the policies, guidelines, and/or procedures governing the use of VE in your agency Question 4 come from? Policies Guidelines Procedures Federal agency 45% 36% 20% State/Provincial agency 39% 34% 27% Other agency 0% 25% 75% Value community 9% 30% 61% Other (Please Specify) 17% 50% 33% Do not know 0% Ref. Agency Category Comments 2 AK US DOT As a state policy, we are to consider any project over $4 million as a candidate for VE. 11 GA US DOT TOPPS document 2450 contains GDOT procedures. It is attached to the email. 10 FL US DOT The Department's policies and procedures for VE incorporate the statutory requirements of the Federal Government. 12 HI US DOT All projects over $25 million are VE. 30 NH US DOT NHDOT relies upon FHWA's guidance in the performance of VE studies. 43 SD US DOT SDDOT policy, guidelines and procedures for Scope process. 49 WA US DOT AASHTO 52 WY US DOT Our's was originally basd on FHWA's NHI training. 61 ON CDN DOT All of our policy and guideline documents were developed by MTO or consultants working for MTO, with some advice and assistance from other agencies and consultants. Some of our procedures that we use in workshops were developed by Caltrans. 64 SK CDN DOT Looking at introduction. 68 New York US CITY By other I mean our own Agency, OMB. We establish our own guidelines and procedures for VE. 69 Fed Lands FHWA The Federal Lands Highway has established a VE program in compliance with the requirements found in the Office of Management and Budget's (OMB) Circular A-131 on VE and developed criteria for use in applying VE to its program in accordance with DOT Order 1395.1A on VE. VE Textbooks, FHWA-HI-88-047 and FHWA-HI-88-051 provide the guidance for development of VE Studies.

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80 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 5 How are projects selected for VE studies? Always Often Rarely Never Statutory requirement 55% 20% 7% 18% Agency cost threshold 38% 34% 17% 11% Project complexity 13% 53% 21% 13% Stakeholder involvement 3% 29% 37% 31% VE program quota 6% 9% 11% 74% Improve safety 3% 36% 28% 33% Meet schedule 0% 25% 36% 39% Other (Please Specify) 11% 33% 22% 33% Do not know 0% Ref. Agency Category Comments 3 AZ US DOT Other - on one instance a project was way over budget; the primary purpose of the VE study was to bring the project within budget. 5 CA US DOT Statutory requirement - NHS VE Mandate. Other - District Identified (voluntary) Study - to solve technical, budgetary or stakeholder issues. 10 FL US DOT Projects that meet the $25 million federal statutory requirement and the $20 million Department threshold are always selected for VE. 17 KS US DOT Potential value improvements - "other". 24 MN US DOT We selected projects that meet FHWA VE requirements. 30 NH US DOT Projects with construction cost of greater than $50 million are considered for VE study. 32 NM US DOT Projects are selected on an annual basis based on their complexity, cost and potential for improvement at all levels. 36 OH US DOT Also, projects are selected based on our Project Development Process and the District Office's request. 38 OR US DOT Requested by Project Development Team and Projects requested for NHI Training Course. 43 SD US DOT Projects are less than $25M therefore no formal VE study is done. Scope on projects is performed to determine timing of project, sequencing of work, limits of project, type of improvements, design parameters, cost estimates, schedule, etc. 52 WY US DOT Other - Management recommendation. 57 NF CDN DOT Federally funded projects only. 61 ON CDN DOT When a project has an unclear scope or there is uncertainty with the proposed design we may call for a VE study. Our criteria is to select projects that provide the highest potential for value improvement including: expansion projects, new interchanges, high complexity reconstruction, projects with complex traffic control and staging, route planning studies, projects with multiple stages, corridor studies, projects undertaken with other stakeholders, projects with extensive or expensive environmental or geotechnical requirements, projects over $10 million and policies, standards and business processes. 64 SK CDN DOT Looking at introduction.

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81 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION What percentage of the VE studies performed by your agency is on the National Highway Question 6 System? >90% 54% 81 to 90% 8% 51 to 80% 18% 31 to 50% 4% 11 to 30% 2% <10% 6% N/A 8% Ref. Agency Category Comments 2 AK US DOT We have a marine highway system that often requires VE because of the federal cost thresholds. 5 CA US DOT Caltrans has a very large workload imposed by the NHS mandate. Note the mandate is triggered by NHS, $25 million and federal aid participation. 64 SK CDN DOT Looking at introduction.

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82 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 7 Who has the responsibility to select the VE team members? Always Often Rarely Never Senior manager 32% 32% 18% 18% Line manager 16% 32% 29% 23% VE Manager/Coordinator 38% 36% 8% 18% Technical Staff 4% 14% 39% 43% Consultant - Design Team 7% 23% 27% 43% Consultant - VE Team 20% 26% 26% 29% Other (Please Specify) 27% 9% 18% 45% Ref. Agency Category Comments 2 AK US DOT Most studies are performed by consultants. 3 AZ US DOT Primarily the responsibility of the VE Manager. 5 CA US DOT All 3 are involved in choosing team members. 6 CO US DOT Usually selected by CDOT Program Engineer and Resident Engineer, in cooperation with Consultant design manager. 10 FL US DOT The District VE Coordinator (DVE) working with the Department Heads have the responsibility of selecting VE Team Members. DVE working with the FDOT Project Manager will ensure that the correct disciplines are on the team. 11 GA US DOT VE Consultant selects their Team Members. Consultant Designers select their team members. DOT team members are selected by various managers. 19 LA US DOT Chief Engineer w/recommendation from VE Manager. 23 MI US DOT 100% Consultant VE. 24 MN US DOT Project Design Team. 26 MO US DOT Project Manager. 30 NH US DOT The VE studies completed to date by NHDOT were part of the consultant services for the final design of the project. The Consultant selected a qualified VE consultant to subcontract the VE study through and the VE consultant selected the independent team for the VE study at the concurrence of NHDOT and FHWA. 34 NC US DOT The VE Group Manager requests team members from the Department Unit Managers. 35 ND US DOT Sometimes a group effort for management approval. 36 OH US DOT Various District Production Administrators, and our Structural Engineer Administrator. 39 PA US DOT Each District has a VE Coordinator that works with Sr. Mgr. to select team members. 43 SD US DOT When the VE process is used, an assigned VE Coordinator would select the team members. For Scope process the line manager assigns project to technical staff to perform Scope, who in turn invites other technical staff to aid in the scope. 48 VA US DOT Local governments may provide team members on a project in their jurisdiction. 49 WA US DOT The VE Manager works with the project manager to select the team members. 51 WI US DOT Department has master contracts with three VE consulting firms, allowing the project manager to quickly obtain services of VE team leader and some team members. After selecting one of the firms, the project manager and the VE team leader jointly discuss project goals and anticipated expertise needed. The experts could come from the department, from interested stakeholders, or be supplied by the consultant. 57 NF CDN DOT Cost benefit analysis done by consultants, reviewed by senior managers. 61 ON CDN DOT Typically VE coordinator works with project manager, project manager's supervisor and consultant to pick team. Project managers supervisor can veto team members. Senior managers are involved when it is a special project involving several divisions. When we work with a municipality, they have a say in who is on the team. 64 SK CDN DOT Looking at introduction. 68 NY US CITY By this I assume you mean the final responsibility for selecting. Candidates for consideration are selected by the VE firm, and final selection is made by us. 69 Fed Lands FHWA Consultants are tasked to provide the staff and expertise necessary to conduct a successful VE study.

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83 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 8 How are the VE team members selected? Always Often Rarely Never They have specific project 11% 41% 39% 9% knowledge They are independent of the 33% 58% 6% 2% project They have specific technical 59% 39% 2% 0% expertise They are available in-house 19% 63% 14% 5% staff Other (Please Specify) 0% 60% 0% 40% Do not know 0% Ref. Agency Category Comments 3 AZ US DOT Other: How well they did on prior studies; some express desire; working toward CVS. 10 FL US DOT Teams should be structured to include appropriate expertise to evaluate the major areas anticipated within the project. At a minimum, design, construction, and maintenance shall be represented on the team. In the event of specialized projects, individuals with specific expertise necessary to perform a proficient value engineering study should be included in the team makeup. 18-b KY US DOT We use Transportation Cabinet personnel along with a team leader provided by the VE consultant team. This method seems to work well for the VE study procedure. 23 MI US DOT Selected by Consultant's CVS leader. 30 NH US DOT Comments: As part of the VE independent team, we provide the opportunity to have one team member from FHWA and an independent NHDOT staff member to assist and learn from the process. 35 ND US DOT Outside interest groups. 36 OH US DOT It is requested to have those qualified/experienced in specific engineering disciplines to participate as team members. 43 SD US DOT Done for Scope also. 51 WI US DOT See previous comment. 64 SK CDN DOT Looking at introduction.

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84 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 9 What credentials are required for the VE team facilitator? Always Often Rarely Never Certified Value Specialist 56% 20% 7% 17% (CVS) Associate Value Specialist 9% 6% 24% 62% (AVS) Value Methodology 6% 9% 18% 68% Practitioner (VMP) Professional Engineer 29% 39% 10% 22% Technical expertise required 36% 33% 13% 18% for study Similar project experience 13% 51% 15% 21% Other (Please Specify) 29% 43% 0% 29% Ref. Agency Category Comments 2 AK US DOT Most studies are performed by consultants. 5 CA US DOT Caltrans does not require a CVS and P.E. as many other states do. In fact, a license is required for engineering plans and specifications and we do not consider VE to be that type of work. However, Caltrans use of Project Performance Measures has shown that team leaders who are familiar with the topic under study - perform significantly better. 7 CT US DOT Not familiar w/certification process. This should correctly indicate that we (as an agency) do not dictate a certain certification. Typically the experienced VE facilitator and team members are hired as subconsultants to the Prime. In perhaps 50% of the cases, State technical staff augment the hired team to lend a certain "this is how we do business" flavor to the process. 10 FL US DOT Consultant VE Team facilitator's (leaders) must have a CVS and Florida PE. In-house (FDOT employee) VE Team facilitator must have a Florida PE. 18 KY US DOT Division of Design will allow a CVS if the team leader is not registered in Kentucky. 24 MN US DOT The facilitator must be certified by SAVE International. He/She must have a minimum of two years of experience in value engineering on highway projects. 30 NH US DOT NHDOT required the lead VE member be certified for VE studies and to have past experiences. The team also has to consist of Professional Engineers with specific technical expertise in highway/bridge design, soils, hydraulics, construction engineering and right of way acquisition. 33 NY US DOT All of NYSDOT's studies are conducted by VE consultants. As such, in accordance with AASHTO guidelines, a CVS is required to facilitate studies. 35 ND US DOT Have experience in VE Facilitating. 36 OH US DOT The Value Engineer Consultant firm utilized has an extensive background in various aspects of engineering that shows expertise for the majority of the projects ODOT VEs. 48 VA US DOT All VE staff members in Virginia are CVS's. Certification is not required to hold the position, though the department assists in attaining and maintaining certification. 49 WA US DOT For consultants we require a PE and a CVS, for in-house we require a PE and training and desire to obtain a CVS. 51 WI US DOT VE Team Leader must be CVS, AVS, or VMP. 52 WY US DOT Other - Familiarity with VE process. 61 ON CDN DOT Require team facilitator to have a local assistant who is familiar with agency and should have VE training. This is intended to build local talent in VE. 64 SK CDN DOT Looking at introduction. 66 Winnipeg CDN CITY Other is professional facilitator/communicator.

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85 PART 1 POLICY, GUIDELINES, AND PROJECT SELECTION Question 10 What credentials are required for the VE team members? Always Often Rarely Never Technical specialist 39% 59% 2% 0% Professional Engineer 13% 56% 13% 18% Have minimum of MOD I 5% 17% 21% 57% training Have FHWA sponsored 2% 36% 16% 45% training Have other formal VE training 5% 20% 24% 51% Previous experience in VE 5% 45% 29% 21% Other (Please Specify) 50% 25% 0% 25% Ref. Agency Category Comments 2 AK US DOT Most studies are performed by consultants. 3 AZ US DOT The team is selected based on the type of project; i.e., a bridge project will have a structural engineer. 10 FL US DOT Team members who have not received formal VE training or participated on a previous value engineering study led by a CVS or DVE may participate on a team; however, there should be no more than two untrained members participating on any one team. The Departments training for team members is MOD I. 24 MN US DOT Individuals with different specialty areas such as construction, design, bridge, maintenance, etc. 29 NV US DOT NHDOT requires all team members to be lead by certified VE coordinator and all other team members to be professional engineers. We generally review past experiences in VE studies within the resumes before approving the VE team. 34 NC US DOT No previous experience. 35 ND US DOT None required. 36 OH US DOT No previous VE training or expertise has been required. 48 VA US DOT Team members are expected, though not required, to have completed VE training, which could be MOD I, FHWA, or VDOT in- house training. 61 ON CDN DOT VE consultant team members must be technical specialists. Agency team members do not always have to be technical specialists. We do not specifically require all team members to be trained in VE but we give preference to VE training or VE experience. 64 SK CDN DOT Looking at introduction. 69 Fed Lands FHWA The facilitator is the only VE team member whose credentials are specified. Selection of the other VE team members is left to the consultant/facilitator to select team members that complement the task.

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115 PART 5 MONITORING Question 38 If yes, how does your agency monitor VE program performance? Always Often Rarely Never Number of projects reviewed 65% 24% 6% 6% Number of VE ideas accepted 65% 29% 3% 3% Value of avoided cost/cost 73% 27% 0% 0% savings Increase in project 16% 32% 26% 26% performance Other (Please Specify) 80% 20% 0% 0% N/A 12% Ref. Agency Category Comments 3 AZ US DOT As stated in question number 37, we monitor the same information required in the FHWA report. 5 CA US DOT Quarterly VA Program performance reporting: (1) VROI - Value Improvement = VA Study Costs (2) Project Development Timing vs. Study Timing (3) ROI Project Savings Study Costs 7 CT US DOT These issues are documented annually to FHWA. Other - VE study cost. 10 FL US DOT The Districts are monitored quarterly on progress of completing their work plan submitted at the beginning of each fiscal year. The measure is actually % of work plan completed, but we don't use number of projects completed as a measure in the annual report. 26 MO US DOT Above items are easy to measure - but do not necessarily quantify program performance. To accurately monitor VE program performance one must quantify "value" added to projects. "Value" = performance/cost. We are modifying Caltrans methods to fit our program. 29 NV US DOT Again, these are not monitored at this time but will be under our new policy. 36 OH US DOT VE Program performance is monitored by reviewing the Quality of the VE Alternatives that were developed, the dollars saved, and the value that was added to the project. 43 SD US DOT Values from Scope process. 48 VA US DOT Included in project performance are improved operational performance (level-of-service, safety, maintainability), improved constructibility, and reduced environmental impact. 49 WA US DOT In addition WSDOT measures: minimized environmental or R/W impacts, enhanced operational performance, improved con- structibility, compressed schedule, and partnership or consensus building. 51 WI US DOT The only monitoring effort is the annual report. The only measure in place is that all projects over $25 million must have a study. 61 ON CDN DOT We survey project team about their satisfaction with the process to try to measure customer satisfaction. 64 SK CDN DOT Looking at introduction.

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116 PART 5 MONITORING Question 39 Does your agency compare VE study investment to capital cost savings/avoided? Yes 52% No 34% Do not know 10% N/A 4% Ref. Agency Category Comments 3 AZ US DOT Figures to calculate this are reported annually. 4 AR US DOT We develop a benefit/cost ratio. 5 CA US DOT Quarterly VA Program performance reporting: (1) VROI - Value Improvement = VA Study Costs (2) Project Development Timing vs. Study Timing (3) ROI Project Savings Study Costs 6 CO US DOT This is also reported to FHWA. 7 CT US DOT Noted in annual report to FHWA. 10 FL US DOT We refer to this as Return on Investment (ROI). 26 MO US DOT Looks at return on investment. 30 NH US DOT NHDOT informally assesses the cost of VE study to the capital cost savings. 32 NM US DOT We used return on investment methods before but discontinued practice. 36 OH US DOT We compared the VE Study cost in the beginning to see the ratio of dollars spent for the study vs. the dollars saved on the project from the VE Session. 64 SK CDN DOT Looking at introduction.

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117 PART 5 MONITORING At what level of management in the agency is the performance of the VE Program measured and Question 40 reported? Director or Commissioner 24% Senior Manager 52% Technical Staff 6% External Agency 4% Other (Please Specify) 6% Do not know 2% N/A 6% Ref. Agency Category Comments 3 AZ US DOT External is the FHWA. 10 FL US DOT The State Value Engineer presents mid-year progress and end of year results to the Department's Executive Board. 16 IA US DOT Annual report to FHWA 17 KS US DOT External Agency - FHWA 23 MI US DOT FHWA Annual Report. 30 NH US DOT VE program measures are reported to the Commissioner and Assistant Commissioner (Chief Engineer) as well as through FHWA Division Administrator. 32 NM US DOT FHWA and AASHTO Value Engineering Technical Committee Members. 34 NC US DOT The VE Staff try to measure the program performance and suggest what areas can be improved. This information is reported to senior management and FHWA in the Annual Report. 36 OH US DOT The Administrator of the Office of Production and the VE Coordinator review the VE Program on a regular basis. FHWA VE Coordinator also reviews the VE Program with us. 39 PA US DOT Chief Engineer and Deputy Secretary for Highway Admin. 52 WY US DOT Senior Manager - when reported. 64 SK CDN DOT Looking at introduction. 69 Fed Lands FHWA A VE report is completed for each VE study and VECP completed. Physically, these reports are transmitted to the Federal Lands Highway Program Administrator (FLHPA) for compiling.

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118 PART 6 FUTURE NEEDS Question 41 What aspects of your agency's VE program do you consider the strongest? Why? Ref. Agency Category Comments 3 AZ US DOT Availability of good local CVS facilitators. Procurement flexibility in providing highly qualified team members. 5 CA US DOT Well established procedures for carrying studies and VA program management. 6 CO US DOT The awareness of the availability of the VE tool. 10 FL US DOT Recognized Process: The VE process is recognized by Department Management as a process that can help improve the value of a project. Stability of VE Group: Minimum turnover in the VE Coordinator position over the past 5 years, has allowed the group to develop stable processes and incorporate strategic planning. Strategic Planning: VE Group meets annually to develop strategic plan. Identifies strengths, weaknesses, opportunities and threats. Performance Measures: Program is measured for performance and that is reported to senior management. Database: recently improved this strength by replacing an existing database with a user friendly Windows based system that tracks existing indicators. Can be read-only accessed by all Department employees. Department Education: VE studies provide one of the only if not the only setting that employees can work together and learn what different parts of the Department do. Design can learn from construction and maintenance. 11 GA US DOT Doing the VE Study at the Concept stage. This allows for more buy-in since the project has not been designed and eliminates the need to redo work. Also allows for more creative ideas. 12 HI US DOT The Highways Division has many experienced engineers from most disciplines in highway engineering. This enables much flexibility in selection of VE team members for a given project. 16 IA US DOT Staff position for VE program. 17 KS US DOT An "up front" review of plans and concepts of the original scope of the project. Also, we do not fabricate savings from an action we would not do. 18 KY US DOT The choice of consultants that lead the value engineering teams. 19 LA US DOT Just beginning formal process with much enthusiasm. First study was major success! Will generate interest in future studies. 23 MI US DOT 5 good Consultants performing VE studies. 24 MN US DOT We encouraged all projects within the agency that meet FHWA VE requirements to be studied using VE methodology. Because we feel that there's a potential for cost savings and improvements in projects. 26 MO US DOT Organization, institutional knowledge in our districts - all districts are aware of VE, including conducting VE studies and the VE program. Following the VE process has proven to be an effective problem solving methodology. 30 NH US DOT NHDOT's process for VE studies are being developed as the importance of the process is accessed on the limited studies completed to date. It is expected that the Department will be embracing future VE studies. 31 NJ US DOT Knowledgeable in-house staff who can adjust to specific project criteria, and established time frames. Creates team work and can-do attitude. 32 NM US DOT The fact that the Value Engineering methodology has proven to be an effective design tool for the purpose of increasing the value of a project, including avoiding unnecessary expenses. 33 NY US DOT NYSDOT has a well-established procedure in place that clearly identifies the post-study activities. The procedure sets time limitations associated with post-study review of the VE recommendations. The time limitations ensure that recommendations are responded to in a timely manner, thereby increasing the likelihood that the recommendations are implemented. 34 NC US DOT VE Staff strives to maintain a viable VE program. 35 ND US DOT Our program is only based on projects that are $25 million and more. North Dakota has very few so we do not do a lot of VE. 36 OH US DOT Performing VE at the Preliminary Engineering stage and not just during detailed design. 38 OR US DOT We offer the NHI course every two years and do not have a problem filling the class. This gives us a good pool of people to do VE Studies. 42 SC US DOT The VE process allows for a thorough review of a project's design plans and helps with quality control. 43 SD US DOT SCOPE will be performed on all projects prior to STIP to determine timing of project, limits of project, type of improvements, design parameters, cost estimates, schedule, etc. 44 TN US DOT Upper Management support has always been strong in TDOT. They have recognized since the early years that VE is a major asset to the Department. 45 TX US DOT The ability to provide a value engineering specialist to facilitate a study when the districts request them. 46 UT US DOT VE in design is strong in some regions. 48 VA US DOT VDOT's VE training program is accepted statewide. Whether used as a team member or individually, the training assists staff in performing their duties. 49 WA US DOT Support, The agency's only CVS is senior management. 50 WV US DOT Support by senior management and Division/District Engineers. 51 WI US DOT Wisconsin has a 'major projects program' and that program was recently reviewed for consistency using VE techniques. This effort is expected to be repeated in the future. 52 WY US DOT Do not use to the extent we should but have usually been successful when completed.

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119 PART 6 FUTURE NEEDS Question 41 What aspects of your agency's VE program do you consider the strongest? Why? Ref. Agency Category Comments 54 BC CDN DOT Policy is that VA and VE are performed on any project over $5 million. We have a clear document as to VA VE process. 56 NB CDN DOT The availability to the contractor of an opportunity to change aspects of a contract for the betterment of the overall project. The ability of a contractor to share in the efficiencies and the savings. 61 ON CDN DOT We focus on improving value and scoping projects rather than cost cutting. We do VE studies even though there is no law requiring this. 64 SK CDN DOT Looking at introduction. 68 New York US CITY Strengths: Ability to bring in the best talent that is out there; customization of the team for each project; the "all-on-the-same- team spirit" with which we work with agencies and their designers.

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120 PART 6 FUTURE NEEDS Question 42 What aspects of your agency's VE program do you consider the weakest? Why? Ref. Agency Category Comments 2 AK US DOT We need retraining in VE. Our existing staff was trained in early 1990's and many have retired. 3 AZ US DOT Timely notification of potential projects to be inspected. Lack of support from Project Managers. 5 CA US DOT Placement of qualified VE Team Members. 6 CO US DOT Training, consistent application. 10 FL US DOT Knowledge sharing: Sharing the VE study results/recommendations with Department and FDOT consultant community. This is an area of improvement identified on our strategic plan. Traditional classroom training: Today's downsized Department (reduction of 2500 employees in last 5 years) requires a new delivery method for training. Identified as an improvement are on strategic plan. 11 GA US DOT Obtaining buy-in to the VE process. Many Design Project Managers and senior managers do not want to do VE studies and do not want to implement the recommendations. 12 HI US DOT The Highways Division currently does not have environmental engineers. Also, because of the ever-increasing number of projects and decreasing of staff, the amount of time spent on VE is kept to a minimum. 16 IA US DOT Training and Management. Need strong management support for VE. Many of our trained staff have retired recently. 17 KS US DOT The thought that VE is "cost savings" and the push for cost savings, when at best these "cost savings" would have been realized during our normal design process. 18 KY US DOT Performing VE just on FHWA requirements. All large scale projects (state or federal funded) should be considered for VE. 19 LA US DOT Just beginning. 23 MI US DOT Don't use any MDDT staff on studies - this VE is a mystery - only do VE when required for FHWA. I don't write and distribute annual VE reports. I have to "discover" jobs needing VE - No self-reporting by Project Managers/non-Systems Managers. 24 MN US DOT Not having a written VE policy at this time but we are working toward having a policy established sometime in the near future. 26 MO US DOT More emphasis is needed on VE Standards and processes. 29 NV US DOT Lack of policy and lack of follow-up and measurement of effectiveness. 30 NH US DOT The Department's weakest aspect of the VE program is the limitation of in-house training. Due to the size of NHDOT's program and focus of limited training funds, staff training remains a shortfall with the program. 31 NJ US DOT Minimal involvement and time spent on analyzing processes and procedures. 32 NM US DOT One of our major challenges is the duration of the studies. If we could manage to shorten the length of the studies, we would probably have more positive response from managers to provide VE Study team members. Another challenge is the misconception that VE is applied to save money. More work needs to be done to promote Value Engineering as a design tool that increases the value of the project rather than a tool to only reduce the cost of a project. 33 NY US DOT Reluctance by designers to volunteer non-mandated projects for study. 34 NC US DOT Support for implementation of VE recommendations. 35 ND US DOT We have very few projects over $25 million, so we do not do a lot of VE. This comment would apply to the remaining questions. 36 OH US DOT Some ODOT employees are not as willing to participate in Value Engineering. It has not become a part of their regular project program where it is a natural part of their schedule. Due to many competing interests and declining staffing levels, VE assignments/participation is a part time function. 37 OK US DOT The overall project costs for ODOT's projects vary and rarely exceed the mandated $25 million threshold. Approximately 95% of our projects are less than $10 million and are simplistic in scope that does not warrrant VE studies. 38 OR US DOT The weakest part of the program is that Project Team Leaders and Design Teams do not use the VE tool as often as they could. 41 RI US DOT Decisions based on cost savings. 42 SC US DOT Some reluctance to try different methods or products has sometimes resulted in a low rate of acceptance of VE recommendations. 43 SD US DOT A formalized VE process is not used because projects are less than $25M. 44 TN US DOT Scheduling the VE studies has always been a problem. Many times studies will be scheduled only to find that, at the scheduled time, project development has slowed or necessary project information is unavailable. 46 UT US DOT VECP. 47 VT US DOT No formalized or written procedures. 48 VA US DOT VE is accepted as required by law. VDOT managers see VE as a problem-solving tool only and as a required step in project development. 49 WA US DOT Trained team leaders. The majority of our trained team leaders have promoted into positions that no longer allow them to take the time needed to lead a team. 50 WV US DOT Time constraints during construction. 51 WI US DOT Lack of a formal VE training program. 52 WY US DOT Do not have a person dedicated to VE.

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121 PART 6 FUTURE NEEDS Question 42 What aspects of your agency's VE program do you consider the weakest? Why? Ref. Agency Category Comments 54 BC CDN DOT Formal training. 56 NB CDN DOT The tracking and confirmation of the number of projects, efficiencies and savings. 61 ON CDN DOT We need to measure the performance of the VE program against established benchmarks. 64 SK CDN DOT Looking at introduction. 68 New York US CITY Weaknesses include: Difficulty in getting at the real cost impact attributed to the VE (By the time we have the disposition of the VE recommendations, say 6 months to 1 year later, the project has changed considerably through the normal course of design. Estimating the impact is always very imprecise); inability to influence decision makers on certain projects (political decisions). 69 Fed Lands FHWA The statutory cost threshold of $1 million imposed by OMB is considered too low to justify the study investment. The threshold was established in 1993 and needs to be brought in line with current construction costs.

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122 PART 6 FUTURE NEEDS Question 43 What opportunities exist for your agency's VE program? Why? Ref. Agency Category Comments 3 AZ US DOT There are opportunities to better educate Project Managers on the benefits of a VE Study. Arizona is one of the fastest growing states requiring more infrastucture; thus there is more potential for VEs. 5 CA US DOT Combining project management tools and techniques with VA studies. 6 CO US DOT To improve the weaknesses listed above. 10 FL US DOT FHWA Support: The AASHTO VE Conference held in Tampa generated a renewed commitment from FHWA Florida Division. Sharing Results: Sharing the study results with Department employees and design consultants. Process Studies/Planning Studies: Perform more studies in these areas. 11 GA US DOT Expanding the VE program to do VE studies on projects that do not meet the established criteria. 12 HI US DOT Can't think of any. 16 IA US DOT I think should be part of all project development. 17 KS US DOT Few with the reduction of funding, larger and more complex projects will be reduced in number. 18 KY US DOT We are now incorporating constructibilty studies which should include better communications with the project design team and the contractor. 19 LA US DOT Much opportunity due to many projects awaiting funding. 23 MI US DOT A lot! 24 MN US DOT Potential savings and project improvements through VE program. 26 MO US DOT Could be used to our advantage more in "building public trust", showing the public that the best value is being obtained. 29 NV US DOT Since our program has been very minimal in the past, the opportunities for significant project improvements and cost savings are enormous. 30 NH US DOT Future opportunities to complete a greater number of VE studies are just coming into view. With recent VE study successes on three very important projects, the important role of VE assessments is being realized. As a result, future support for VE studies can be expected within the agency. 31 NJ US DOT Help department achieve most bang for the buck by providing alternatives for consideration. 32 NM US DOT Simply to increase the quality of our work! So far this methodology has been used in construction projects, but we see its application to processes and products as a great opportunity. 33 NY US DOT NYSDOT is exploring ways to expand our program to more actively pursue conducting VE studies on non-mandated projects. 34 NC US DOT VE could be an effective management tool for cost avoidance, reduction of contract time, minimization of r/w and/or environmental impacts, enhancement of safety and adding quality. 36 OH US DOT The VE program could expand and become a much larger and more important part of the project than it is now. 38 OR US DOT With our newly reorganized Project Development, I hope to get the Regions to look at VE as a tool that will benefit their entire program. The value added to their projects and the cost savings to be used on additional projects. 39 PA US DOT Not certain I have been on detail in another area of the Dept. for the last year. 41 RI US DOT Limited by size (cost) of project. 42 SC US DOT As more VE studies are done, a greater rate of acceptance for alternate methods and products may develop. 44 TN US DOT With improved and extended training of more technical staff, the VE program should be able to study more projects, not just those mandated. 47 VT US DOT Formalizing it to include specifying a team, leader, and report format and context. Also when to use. 48 VA US DOT VE is currently expanding into Project Scoping, Constructibility Reviews, standards, and non-construction VE. 49 WA US DOT Training and developing new team leaders and members for future VE teams. 50 WV US DOT Continued use in engineering, construction and manual preparation. 51 WI US DOT Staff are becoming excited about VE after having been involved in VE studies and seeing the positive results. 54 BC CDN DOT VA and VE will continue. 56 NB CDN DOT It allows the contractor the opportunity to be innovative and share in the cost savings that he can identify. Over time most innovation becomes included in the overall contracts unless it was very site specific. It may be time to review our Value Engineering program. 61 ON CDN DOT Could do more studies on processes and agency products such as driver licensing and control, rather than just engineering. Could do more studies at the concept stage. Could do more studies with outside stakeholders. VE is a process that improves collaboration and understanding from different stakeholders. We should help other processes through VE such as Road Safety Audits, Context Sensitive Design, Decision Analysis, and project risk management. 64 SK CDN DOT Looking at introduction. 68 New York US CITY There are opportunities to work together and influence the State and Feds.

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123 PART 6 FUTURE NEEDS Question 44 What threats exist for your agency's VE program? Why? Ref. Agency Category Comments 3 AZ US DOT Stagnant/shrinking state revenue could impact the state's transportataion budget in a negative manner. 5 CA US DOT The VA program is very well established and respected in Caltrans. I don't see any immediate threats. 10 FL US DOT Organizational Structure: Department reorganization over the past 5 years has reassigned the VE position to report lower in the organization structure. 11 GA US DOT Continued support from senior management. As the number of VE studies increases, it becomes more difficult to get DOT team members. Design Project Managers are reluctant to request VE studies, and prefer not to implement the recommendations. 12 HI US DOT None. 16 IA US DOT VE needs champion. I will be retiring soon. 17 KS US DOT When the Agency determines that the formal VE process has not provided significant benefit, it's use may be reduced. 18 KY US DOT Hopefully, no threat exists.We currently have a $40.00/$1.00 ratio for value engineering studies. 19 LA US DOT Resistance to change, especially after the environmental decision has been made. 23 MI US DOT Too busy, Fed Regs being complied with. 24 MN US DOT None. 30 NH US DOT Limited funding and cost of training. 31 NJ US DOT Currently strong management support and successful program have minimized program threats. 32 NM US DOT If the VE methodology is not well understood, it can disappoint management and therefore be discontinued for transportation projects under $25 million. 34 NC US DOT Without the Federal VE Mandate requiring performance of VE studies the State Program would be greatly weakened. 36 OH US DOT None at the moment. 39 PA US DOT Voluminous number of retirements causing rapid loss of knowledge base due to relative youth/age of engineers/tech's. 41 RI US DOT Our projects are small and limited in scope. 44 TN US DOT Lack of needed training and apathy by some of our technical staff. 46 UT US DOT Funding for VE training. 48 VA US DOT Reduced construction/design funding has reduced the number of projects available. Senior and middle management has changed since initiation of the program. 50 WV US DOT None. 51 WI US DOT Pressure to complete projects means that projects under $25 million (unless they are very complex) do not always use VE. 52 WY US DOT No person with full time responsibility. 54 BC CDN DOT Apathy. 56 NB CDN DOT Contractors are submitting Value Engineering proposals that do not fit within the parameters of what a value engineering proposal is. This is time consuming for the contractor and does not allow for an efficient use of our time. 61 ON CDN DOT The biggest threat is from other programs that are bringing in competing processes. For example, asset management has some alternative generation and evaluation processes. Asset Management is high profile and might eliminate the need for VE in the minds of managers. Other processes are very much in vogue and overlap or overshadow VE. These include Road Safety Audits (improve value), context sensitive design (improve aesthetics, collaborate with partners), IHSDM (generate designs), asset management (manage resources), ACTT workshops (Accelerated Construction Techniques Technology), (choosing by advantages (make decisions). The latest AASHTO VE guidelines does not give guidance on how to deal with explicit highway safety, yet highway safety is a huge priority with every agency. Is the VE community too insular from other agency priorities? The biggest threat is agency's are not considering explicit highway safety in their VE studies. The highway safety community believes with some justification that VE reduces highway safety. From a VE perspective, we don't report enough on results, we spend too much on consultants, we spend too much of the study on process rather than on the creative aspects. 64 SK CDN DOT Looking at introduction. 68 New York US CITY Changes in the Mayoral administration can result in a greater or lesser interest in supporting the VE program.

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124 PART 6 FUTURE NEEDS Do you or your agency have any concerns over the preparedness of the value community to Question 45 support your VE program? Yes 7% No 78% Do not know 9% N/A 7% Ref. Agency Category Comments 3 AZ US DOT There are many CVS's located in the Phoenix, Arizona area to assist ADOT's needs. 5 CA US DOT We carry out VA studies via consultant team leaders - not too many consultants understand our procedures. 23 MI US DOT But I wish there were more trained in CVS - in MDOT and in Consultants. 30 NH US DOT The VE teams has demonstrated a professional understanding of the process. 32 NM US DOT More promotion! The right promotion! In our view, part of the problem is that the Value Engineering community has been recognized and remembered for its potential savings on construction projects or products. Savings or cost avoidance is simply very attractive, but we well know that this is a byproduct of Value Engineering. The main purpose is to increase the value of something, and so that by itself saves money. In fact, big money, particularly when life cycles and user costs are analyzed. It is not necessarily what it does immediately to a project, product or process, but the future benefits by building or implementing the "right stuff". 49 WA US DOT AASHTO is also a valuable resource for information . 61 ON CDN DOT Consultants are usually only willing to do studies in accordance with SAVE procedures. They don't usually bring new things to the table or show much professional development. We still have consultants who only focus on cost savings, rather than improving value. Many consultants don't read papers or do professional development. If it worked 20 years ago it is fine by them. Most of the Module I courses we have bought contain dated material which shows that the consultant has little concern for continuous improvement. Most consultants are not thinking about how to support decision analysis through risk management, choosing by advantages, performance measurement, or some other techniques. 64 SK CDN DOT Looking at Introduction. 67 Ottawa CDN CITY Limited VE Consultants in the Ottawa area at this time.

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125 PART 6 FUTURE NEEDS Question 46 What research needs do you feel need to be addressed in the near future? Why? Ref. Agency Category Comments 3 AZ US DOT Quantifying safety. You can always enhance the value of a project by increasing safety; however, at what cost? 10 FL US DOT Performance Measures - traditionally cost savings has been the primary measure for VE programs and FDOT is no different, but how do you quantify the other benefits to VE? 11 GA US DOT Research about what types of projects benefit from VE studies. The $25 million threshold should be reviewed. 17 KS US DOT How truthful are the reported cost savings on projects? Are the reported savings inflated to perpetuate VE? We have not experienced savings to the level reported by others. 18 KY US DOT Need to look at state funded projects for value engineering. 19 LA US DOT None at this time. 24 MN US DOT None that we can think of at this time. 26 MO US DOT Best practices, national trends on VE. For instance we're incorporating Caltrans methods on Project Performance measures and also trying to do more conceptual stage VEs. 30 NH US DOT Research in evaluating the timing for VE studies within the design process for projects. When is the best time in the design phase to undertake a costly VE study (i.e., prior to NEPA approval, early in final design or late in final design)? NHDOT has focused the VE study to be completed at the conclusion of the NEPA/Section 4F/Section 6F/Section 404 approvals prior to extensive final design efforts. Understanding the timing of VE studies and the reasons why it is being undertaken during certain design phase by State highway agencies would be useful in insuring continuity in the overall process from State to State. 32 NM US DOT Perfomance Measurements, shorter VE studies and training, the development of more and shorter VE workshops for executives, VE in design-build projects, VE in multi-modal transportation projects, more help from other VE organizations in promoting and performing short seminars for all (FHWA, SAVE International, the Miles Foundation, etc.). Only by understanding well the intent of the methodology as a design tool, is that the expectations of Value Engineering can be redirected. 34 NC US DOT How effective are the States VE programs? Are they accomplishing the results intended by the OMB? Are the final designs being studied to find if recommendations are incorporated to comply with the Federal Mandate? 36 OH US DOT Research different means of performing VE such as "Improving the Value Method with Choosing by Advantages". This would be nice just to see if a new method may work better. 44 TN US DOT Don't know. 46 UT US DOT VE performance measures other than cost savings. 49 WA US DOT Performance measures. 61 ON CDN DOT Need to research how to measure the effectiveness of VE against other processes used in project management. Need to research methods to incorporate user costs into the evaluation of alternatives. Need to research how to build explicit highway safety evaluation techniques into VE and integrate VE with road safety audits. Need to work on other processes that need techniques to generate alternatives such as context sensitive design. Need work on the decision analysis and VE, and VE and risk management. The U.K. is about 5 years ahead of North America in incorporating risk into VE studies. 64 SK CDN DOT Looking at introduction.