Systems Engineering and Architecture

Value Engineering

Value engineering (VE) plays an integral and enduring role in accomplishing DoD’s mission to provide the military forces needed to deter war and protect the security of our nation.

DoD Components use VE to analyze the functions of programs, projects, systems, products, items of equipment, facilities, buildings, services, and supplies to achieve essential functions at the lowest life cycle cost consistent with the required performance, reliability, quality, and safety. DoD civilian and military personnel focus their use of VE on gaining full value from every dollar. They may incorporate VE on its own or in conjunction with other value-improving initiatives.

The DoD VE program has two elements:

DoD military and civilian personnel use Value Engineering Proposals (VEPs) to implement change.
DoD contractors use Value Engineering Change Proposals (VECPs) (required or voluntary) to implement change upon DoD acceptance of the proposal.

Components retain DoD resource benefits resulting from the use of VE.

Statute, Regulation, and Policy

DoD Instruction 4245.14, “DoD Value Engineering (VE) Program,” implements 41 USC 1711, “Value Engineering,” and Office of Management and Budget Circular No. A-131, “Value Engineering,” to ensure the “effective administration of the DoD VE Program.”

FAR Part 48, “Value Engineering,” “prescribes policies and procedures for using and administering value engineering techniques in contracts.”

Guidance and Resources

Value Engineering: A Guidebook of Best Practices and Tools (SD-24) (under review for revision)
Defense Acquisition University Continuous Learning Module CLE 001, “Value Engineering”

Recognition of Value Engineering Achievement

Through the DoD VE Achievement Award, the Department has honored DoD civilian and military organizations, teams, individuals, programs, or projects for exemplary VE accomplishments. The program is being reviewed and considered for renewal.