Value Engineering-Architect-Engineer
A-E contractors must conduct and document value engineering activities as specified, submitting detailed proposals and reports for Contracting Officer approval, but do not share in any resulting cost savings.
Overview
FAR 52.248-2, Value Engineering-Architect-Engineer, requires contractors performing architect-engineer (A-E) services to conduct value engineering (VE) activities as specified in their contract. Contractors must analyze design documents, submit progress reports, and provide value engineering proposals (VEPs) to the Contracting Officer. VE activities are to be performed without delaying the project schedule and include a thorough review of design documents at key project milestones. The clause outlines detailed requirements for VEP submissions, including cost analyses, impact assessments, and team qualifications. Importantly, while contractors are compensated for VE services, they do not share in any cost savings resulting from accepted VEPs.
Key Rules
- Performance of VE Services
- Contractors must perform VE services and submit progress reports as scheduled, ensuring no project delays.
- Submission Requirements
- Contractors must provide a fee breakdown, team member qualifications, and submit all VEPs in a final report.
- VEP Content
- Each VEP must include detailed analyses of design changes, cost impacts, life cycle cost effects, and schedule implications.
- Approval and Implementation
- VEPs require Contracting Officer approval and are implemented via bilateral contract modification.
Responsibilities
- Contracting Officers: Review and approve VE team members, VEPs, and implement accepted proposals via contract modification.
- Contractors: Conduct VE studies, submit required documentation, and ensure all VEPs meet content and submission standards.
- Agencies: Oversee VE process, ensure compliance, and manage contract modifications for accepted VEPs.
Practical Implications
- This clause ensures that A-E contractors systematically seek cost-effective solutions without compromising quality or performance. It impacts project planning, team composition, and documentation practices. Common pitfalls include incomplete VEPs, unapproved team changes, or delays in submission, all of which can jeopardize compliance and contract performance.