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Appendix A - Relevant Federal Value Engineering Requirements
Pages 44-57

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From page 44...
... 3. "23 CFR Parts 627 et al., Design–Build Contracting; Final Rule," Federal Register, Vol.
From page 45...
... as a management tool, where appropriate, to reduce program and acquisition costs.
From page 46...
... VE is a management tool that can be used alone or with other management techniques and methodologies to improve operations and reduce costs. For example, the total quality management process can include VE and other cost cutting-techniques, such as life-cycle costing, concurrent engineering, and design-to-cost, approaches, by using these techniques as analytical tools in process and product improvement.
From page 47...
... . A proposal submitted by a contractor under the VE provisions of the Federal Acquisition Regulations (FAR)
From page 48...
... d. Provide training in VE techniques to agency staff responsible for coordinating and monitoring VE efforts and for staff responsible for developing, reviewing, analyzing, and carrying out VE proposals, change proposals, and evaluations.
From page 49...
... Savings resulting from VE proposals and VE change proposals should be included under the appropriate categories. Part II asks for a description of the top 20 fiscal year VE projects (or all projects if there are fewer than 20)
From page 50...
... 401 et seq.) , the Federal Acquisition Regulatory Councils shall ensure that the policies established herein are incorporated in the FAR within 180 days from the date this Circular is published in final form in the Federal Register.
From page 51...
... 52 DC 20503, Telephone (202)
From page 52...
... Twenty-one States requested clarification of the type and amounts of Federal-aid highway funds involved in determining the 50 percent dollar value while fourteen States, five organizations and four individuals suggested replacing this requirement with a dollar threshold or lower percentage. Two firms thought the 50 percent value was excellent because it gave States great flexibility in selecting projects while four individuals suggested that all projects should receive a VE analysis.
From page 53...
... Beyond these minimum needs, the goal is to provide maximum flexibility to the States to conduct VE programs consistent with the rest of their transportation programs. Specific provisions that were included in the NPRM, but have been eliminated from the final rule due to the NHS Act requirement and in response to the comments received on the NPRM, include: The State reporting requirement; specific language describing the VE process; written procedural requirements; suggested project selection criteria; VE change proposal requirements; and VE training requirements.
From page 54...
... to all Federalaid highway projects on the National Highway System (NHS) with an estimated cost of $25 million or more.
From page 55...
... This agreement, referred to as the ‘‘project agreement,'' is in essence a written contract between the State and the Federal government defining the extent of the work to be undertaken and commitments made concerning the project. Requirements covering project agreements are contained in this final rule.
From page 56...
... While the FHWA agrees with the commenters who suggested clarification of the NPRM language, we disagree with the suggestion that the use of the word ‘‘may'' in lieu of ‘‘shall'' would provide sufficient clarification. We agree that the final rule must explain how contracting agencies can meet the value engineering analysis requirement for design-build projects.
From page 57...
... While the FHWA agrees with the commenters who suggested that value engineering concepts may be inherent in the design-build process, we disagree with the commenters who suggested that all design-build projects would fulfill the FHWA's value engineering analysis requirement. The use of the design-build project delivery method does not fulfill the congressional mandate for a value engineering analysis on National Highway System projects greater than $25 million.


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