Value Engineering and Life-Cycle Sustainment

Abstract

This document (1) describes plausible business case considerations for Department of Defense (DOD) contractors to submit Value Engineering Change Proposals (VECP) based on tradeoffs between revenue and profit and (2) identifies other benefits to the contractor, including capturing follow-on work, improving its reputation, obtaining good recommendations, reducing risk and the potential for losses, incorporating new technology to increase profit or competitiveness, and reducing less desirable work. This document also identifies places in common contractor processes where VECPs should be considered to challenge requirements, reduce risk, and capitalize on opportunities. These processes include program start-up reviews, budget reviews, risk reviews, and technology benchmarking.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 2012
Accession Number
ADA580312

Entities

People

  • Anthony C. Hermes
  • James R. Vickers
  • Jay Mandelbaum

Organizations

  • Institute for Defense Analyses

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Civilian Personnel
  • Configuration Management
  • Contractors
  • Contracts
  • Cost Reductions
  • Department Of Defense
  • Engineering
  • Fixed Price Contracts
  • Incentive Contracts
  • Logistics
  • Management Personnel
  • Organizational Structure
  • Procurement
  • Systems Engineering
  • Value Engineering

Readers

  • Government Contracting/Procurement.
  • Life Cycle Cost Analysis
  • Organizational Process Management (OPM).