Contract Clauses
FAR Subpart 48.2 mandates the inclusion of specific value engineering clauses in supply, service, and construction contracts to promote cost-saving innovations.
Overview
FAR Subpart 48.2, "Contract Clauses," outlines the required contract clauses that must be included in government contracts to implement value engineering (VE) provisions. This subpart directs contracting officers to insert specific clauses into supply, service, and construction contracts to encourage contractors to propose cost-saving changes that improve performance, quality, or reliability. The subpart references two main sections: 48.201 for supply or service contracts and 48.202 for construction contracts, each specifying the appropriate VE clause to use. The purpose is to ensure that all relevant contracts contain the necessary language to facilitate and incentivize value engineering efforts, which can lead to significant cost savings and process improvements for the government.
Key Rules
- Clauses for Supply or Service Contracts (48.201)
- Contracting officers must include the designated value engineering clause in supply and service contracts as specified in this section.
- Clause for Construction Contracts (48.202)
- Construction contracts must include the value engineering clause tailored for construction projects, as outlined in this section.
Responsibilities
- Contracting Officers: Ensure the correct value engineering clause is included in all applicable contracts.
- Contractors: Review and comply with the value engineering requirements specified in the contract clauses.
- Agencies: Oversee implementation and monitor compliance with VE provisions in contracts.
Practical Implications
- This subpart ensures that value engineering opportunities are contractually supported, promoting innovation and cost savings.
- Contractors must be aware of and prepared to fulfill VE requirements when these clauses are included.
- Failure to include the correct clause can result in missed opportunities for savings and noncompliance with FAR requirements.