52.248-2 Value Engineering-Architect-Engineer
Source: FAR 52.248-2 on acquisition.gov
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.
As prescribed in 48.201(f), insert the following clause:
Value Engineering-Architect-Engineer (Mar 1990)
(a) General. The Contractor shall (1) perform value engineering (VE) services and submit progress reports as specified in the Schedule; and (2) submit to the Contracting Officer any resulting value engineering proposals (VEP’s). Value engineering activities shall be performed concurrently with, and without delay to, the schedule set forth in the contract. The services shall include VE evaluation and review and study of design documents immediately following completion of the 35 percent design state or at such stages as the Contracting Officer may direct. Each separately priced line item for VE services shall define specifically the scope of work to be accomplished and may include VE studies of items other than design documents. The Contractor shall be paid as the contract specifies for this effort, but shall not share in savings which may result from acceptance and use of VEP’s by the Government.
(b) Definitions. "Life cycle cost," as used in this clause, is the sum of all costs over the useful life of a building, system or product. It includes the cost of design, construction, acquisition, operation, maintenance, and salvage (resale) value, if any.
Value engineering, as used in this clause, means an organized effort to analyze the functions of systems, equipment, facilities, services, and supplies for the purpose of achieving the essential functions at the lowest life cycle cost consistent with required performance, reliability, quality, and safety.
Value engineering proposal, as used in this clause, means, in connection with an A-E contract, a change proposal developed by employees of the Federal Government or contractor value engineering personnel under contract to an agency to provide value engineering services for the contract or program.
(c) Submissions. After award of an architect-engineering contract the contractor shall-
(1) Provide the Government with a fee breakdown schedule for the VE services (such as criteria review, task team review, and bid package review) included in the contract schedule;
(2) Submit, for approval by the Contracting Officer, a list of team members and their respective resumes representing the engineering disciplines required to complete the study effort, and evidence of the team leader’s qualifications and engineering discipline. Subsequent changes or substitutions to the approved VE team shall be submitted in writing to the Contracting Officer for approval; and
(3) The team leader shall be responsible for pre-study work assembly and shall edit, reproduce, and sign the final report and each VEP. All VEP’s, even if submitted earlier as an individual submission, shall be contained in the final report.
(d) VEP preparation. As a minimum, the contractor shall include the following information in each VEP:
(1) A description of the difference between the existing and proposed design, the comparative advantages and disadvantages of each, a justification when an item’s function is being altered, the effect of the change on system or facility performance, and any pertinent objective test data.
(2) A list and analysis of design criteria or specifications that must be changed if the VEP is accepted.
(3) A separate detailed estimate of the impact on project cost of each VEP, if accepted and implemented by the Government.
(4) A description and estimate of costs the Government may incur in implementing the VEP, such as design change cost and test and evaluation cost.
(5) A prediction of any effects the proposed change may have on life cycle cost.
(6) The effect the VEP will have on design or construction schedules.
(e) VEP acceptance. Approved VEP’s shall be implemented by bilateral modification to this contract.
(End of clause)