What is a value engineering clause?

Value Engineering (VE) is defined in 23 CFR Part 627.3 as “the systematic application of recognized techniques by a multi-disciplined team to identify the function of a product or service, establish a worth for that function, generate alternatives through the use of creative thinking, and provide the needed functions …

Where does it say how long a contracting officer has to accept or reject a Value Engineering Change Proposal Vecp )?

within 45 days
(b) The contracting officer is responsible for accepting or rejecting the VECP within 45 days from its receipt by the Government. If the Government will need more time to evaluate the VECP, the contracting officer shall notify the contractor promptly in writing, giving the reasons and the anticipated decision date.

What is a Value Engineering Change Proposal?

Value engineering change proposal (VECP) means a proposal that- (1) Requires a change to this, the instant contract, to implement; and. (2) Results in reducing the overall projected cost to the agency without impairing essential functions or characteristics;provided, that it does not involve a change-

Which value is considered for value engineering?

Value engineering is the review of new or existing products during the design phase to reduce costs and increase functionality to increase the value of the product. The value of an item is defined as the most cost-effective way of producing an item without taking away from its purpose.

What is a boilerplate clause in a contract?

Boilerplate clauses, also known as standard, miscellaneous, or general clauses, are clauses that are found at the end of most legal documents. These provisions address a range of things such as what happens if a document is declared unenforceable, how disputes will be resolved, which laws govern the contract, and more.

What are the three types of government contract terminations?

52.249-1: Termination for Convenience of the Government (Fixed-Price) (Short Form) 52.249-2: Termination for Convenience of the Government (Fixed-Price) 52.249-3: Termination for Convenience of the Government (Dismantling, Demolition, or Removal of Improvements)

Where can I find FAR clauses?

The Federal Acquisition Regulation (FAR) is the principal set of rules regarding federal government procurement in the United States, and is codified at Chapter 1 of Title 48 of the Code of Federal Regulations, 48 CFR 1.

What are the principles behind Value Engineering Change Proposal Vecp )?

A Value Engineering Change Proposal (VEP) is a post-award proposal made by the construction contractor which includes any changes to work that may potentially result in cost or time savings, without impairing essential functions and characteristics of the project, such as: service life, safety, reliability, economy of …

What are the disadvantages of value engineering?

A major disadvantage of value engineering is that it is often misperceived as simply a cost reduction method after the fact, not considering life cycle costs during the process.

What is the main focus of value engineering?

Value engineering promotes the substitution of materials and methods with less expensive alternatives, without sacrificing functionality. It is focused solely on the functions of various components and materials, rather than their physical attributes. Value engineering is also called value analysis.

When to use FAR clause 52.248-3 value engineering-construction?

The contracting officer shall insert the clause at 52.248-3 , Value Engineering-Construction, in construction solicitations and contracts when the contract amount is estimated to exceed the simplified acquisition threshold, unless an incentive contract is contemplated.

When to include value engineering in a contract?

A value engineering clause may be included in contracts of lesser value if the contracting officer sees a potential for significant savings. Unless the chief of the contracting office authorizes its inclusion, the contracting officer shall not include a value engineering clause in solicitations and contracts-

What is 52.248-1 value engineering change proposal?

52.248-1 Value Engineering. As prescribed in 48.201 , insert the following clause: (a) General . The Contractor is encouraged to develop, prepare, and submit value engineering change proposals (VECP’s) voluntarily.

What is incentive sharing for value engineering change proposals?

The Contractor is encouraged to develop, prepare, and submit value engineering change proposals (VECP’s) voluntarily. The Contractor shall share in any net acquisition savings realized from accepted VECP’s, in accordance with the incentive sharing rates in paragraph (f) of this clause. (b) Definitions.