Value Engineering and Service Contracts

Abstract

Value Engineering (VE) generates more than a billion dollars in savings and cost avoidance annually for the Federal Government. Most VE savings, especially contractor-initiated savings, accrue from the acquisition of hardware. However, the Government now predominantly spends its contract dollars on services ranging from routine commercial purchases to highly skilled technical, scientific, and engineering services. This document provides background on VE and illustrates how and why its use in both hardware and service contracts, including performance-based logistics contracts, benefits the government and industry. The document also gives examples of difficulties in applying VE to service contracts, demonstrates that work-arounds are possible, and recommends ways to improve the use of VE for service contracts.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 2009
Accession Number
ADA503311

Entities

People

  • Danny L. Reed
  • Ina R. Merson
  • James R. Vickers
  • Jay Mandelbaum
  • Lance M. Roark

Organizations

  • Institute for Defense Analyses

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Contractors
  • Contracts
  • Department Of Defense
  • Engineering
  • Failure Mode And Effect Analysis
  • Governments
  • Health Services
  • Law
  • Life Cycle Management
  • Life Cycles
  • Logistics
  • Military Personnel
  • National Governments
  • Personnel Management
  • Procurement
  • Value Engineering

Readers

  • Economics
  • Life Cycle Cost Analysis