Summary Audit Report on DoD Value Engineering Programs
Abstract
This report summarizes the results of the joint audit of the DoD Value Engineering Programs. The audit was requested by the Office of the Under Secretary of Defense for Acquisition and Technology to satisfy the requirement in Office of Management and Budget Circular No. A-131, "Value Engineering," May 21, 1993, that agency value engineering programs be audited 2 years after issuance of the Circular. During the audit, the Inspector General, DoD, and the Army and Air Force Audit Agencies issued 12 audit reports on DoD Value Engineering Programs. Office of Management and Budget Circular No. A-131 requires Federal agencies to use value engineering as a management tool, where appropriate, to ensure realistic budgets, to identify and remove nonessential capital and operational costs, and to improve and maintain optimum quality of program and acquisition functions. The DoD Value Engineering Program involves both in-house and contractor programs. The DoD has reported more value engineering savings than other Federal agencies. For FY 1994, the DoD reported value engineering savings of $855 million and investment costs of $248 million. For FY 1995, DoD reported value engineering savings of $734.4 million and investment costs of $43.9 million. The audit objective was to determine whether DoD value engineering policies, procedures, and implementation of the revised Office of Management and Budget Circular No. A-131 were adequate, and the reported value engineering savings for FY 1994 and FY 1995 were valid. The audit also assessed how extensively value engineering was included in contracts, whether contractors believed they were encouraged to participate in the value engineering program, and how value engineering related to other streamlining or savings initiatives. The audit also evaluated the adequacy of management control programs applicable to the VE programs.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 26, 1997
- Accession Number
- ADA369077
Entities
People
- Eric B. Edwards
- Garold E. Stephenson
- Paul J. Granetto
- R. S. Silverstein
- Richard B. Jolliffe
Organizations
- Office of the Inspector General, U.S. Department of Defense