February 28, 2025

OUSW (R&E) recently issued SD-24 Value Engineering: A Guidebook of Best Practices and Tools, an update of a 2011 version. VE is a sound and effective business practice that can yield significant returns on investment not only for cost, but also for capability performance and schedule.

DoW Components use VE to analyze programs, systems, services, products, and more to ensure they accomplish essential functions at the lowest life-cycle cost consistent with the required performance, quality and safety.  Components retain their VE savings for allocation to other internal priorities to achieve a better value for the money.

The recent update to DoI Instruction 4245.14, “DoW Value Engineering Program,” is intended to reinvigorate VE and, along with this guidance, facilitate an understanding of responsibilities for VE programs and how to enhance DoW processes and products. VE is integral to supporting DoW’s national security mission.

This guidebook equips Components with information needed to establish and maintain viable VE programs. It describes the basics of the VE methodology, the benefits of a strong DoW VE Program, and best practices for applying VE on government contracts.