United States	Office of Solid Waste and OSWER 9355.5-24FS
Environmental Protection Emergency Response
Agency	November 2005
Value Engineering
(For Fund-Financed Superfund Remedial Design/Remedial Action Projects)
Office of Superfund Remediation
and Technology Innovation (OSRTI)
Circular No. A-131, issued by the Office of Management and Budget on January 26, 1988, requires the use of Value
Engineering (VE), when appropriate, by Federal Departments and Agencies to identify and reduce nonessential
procurement and program costs. Value Engineering is a specialized cost-control technique that uses a systematic and
creative approach to identify and reduce unjustifiably high costs in a project without sacrificing the reliability or
efficiency of the project.
VALUE ENGINEERING DURING DESIGN
It is the responsibility of EPA's Remedial Project
Manager (RPM) to assure that VE screening (and a
VE study if appropriate) is conducted on each fund-
financed remedial design. Typically, the designer
should be awarded a VE study task if the screening
conducted during preliminary design indicated the
need for the study, and an independent and objective
study can be conducted within the design firm.
Otherwise, the Corps of Engineers or an independent
design firm with the requisite expertise should
conduct the study.
The VE study is different from routine design
reviews. The design reviews concentrate on
functional aspects, such as whether the design works,
is sufficiently reliable, and meets the designer's
contractual obligations. VE, on the other hand, is
focused on reducing the investment necessary to
achieve those functions. It should be noted that the
focus of VE does not preclude the VE team from
identifying technical errors or omissions and alerting
the designer so these problems can be taken into
consideration during the design reviews.
The VE study should be scheduled so as to minimize
The policies and procedures set forth herein are
intended as guidance to Agency and other government
employees. They do not constitute rulemaking by the
Agency, and may not be relied on to create a
substantive or procedural right enforceable by any other
person. The Government may take action that is at
variance with the policies and procedures in this fact
sheet.
the impact on the design schedule. If the VE
decision-making process is structured to avoid adding
time to the schedule (i.e., not on the critical path),
then the only potential schedule impact would be
caused by a design change resulting from the VE
process and not from the process itself.
When planning a design project, the party contracting
for design must include a VE screen (and possible VE
study) in the design tasks. This begins with an initial
VE screening during preliminary design to determine
if the project will include any high-cost, non-industry
standard items. If the screening task identifies a
potential cost savings, a VE study must be initiated.
To perform this VE study, the VE study team leader
selects a multidisciplinary team with VE training and
experience and technical knowledge to conduct the
review. Members of the team should have received
the 40-hour VE training sponsored by the Society of
American Value Engineers and the team leader
should be certified by that organization. Guided by
the team leader, this group of VE-trained technical
experts completes a prescribed six-phase process that
culminates in the presentation of cost saving
alternatives first to the RPM and the original project
design team. These six phases are: information,
creativity, analysis, development, presentation, and
implementation.
The primary activities of this six-phase process have
been standardized and typically take the form of a
one-week workshop. Projects can often be reviewed
in less time, however, depending upon their
complexity. A VE study may not be appropriate for a
simple design, whereas a complex design may require
a level of effort between 200 and 500 hours. More
information about VE during design can be found in

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Section 4.8 of the EPA Superfund Program's RD/RA
Handbook found at
http://www.epa.gov/superfund/whatissf/sfproces/rdra
book.htm.
VALUE ENGINEERING DURING REMEDIAL
ACTION
The VE incentive clause, found in the Federal
Acquisition Regulation (FAR) at 52.248-3, should be
included in federal remedial action contracts over
$100,000. Additionally, EPA's technical support
contractors should include the clause in their
subcontracts for remedial action, even if not directed
to do so by EPA's contracting officer. States under
mixed funding may choose to use a similar clause in
their remedial action contracts.
The VE incentive clause provides the opportunity for
the remedial action (RA) contractor to use its unique
knowledge and experience as a basis for submitting a
Value Engineering Change Proposal (VECP). The
VECP is the RA contractor's proposal to change
contract requirements in such a way that the price of
the contract is reduced while still achieving remedial
action objectives. To have a valid VECP, the RA
contractor must submit the following information:
A description of the proposed change and
the contract requirement.
•	An itemization of the contract requirements
that must be changed.
•	An estimate of the costs that will be reduced
if the proposal is adopted.
•	A prediction of any saving the change may
have on operations, maintenance, or
equipment.
•	A statement of time by which the proposal
must be implemented by the party
contracting for remedial action.
To ensure the VE program's effectiveness and
integrity, individuals and firms who have prior
involvement in the project design or in other value
engineering activity prior to remedial action are not
eligible to participate, directly or indirectly, in the
development and preparation of a VECP or in
monetary sharing of any resulting savings.
While the VECP is being processed, the RA
contractor should continue the construction activity as
scheduled. As a minimum, a VECP should result in a
capital cost reduction while causing no increase in the
total life cycle cost of the project and meeting the
following conditions:
•	The required function, reliability, and safety
of the project will be maintained.
•	The proposed change will not result in any
contract resolicitation.
The proposed change will not cause undue
interruption of the contract work.
VE change proposals will be reviewed by the
contracting officer and the RPM. If accepted by
EPA, the savings resulting from the change proposal
are normally shared between the RA contractor and
the contracting party after the RA contractor is
reimbursed for its cost of implementing the change.
Prior to approval of the VECP, the party contracting
for remedial action must consult the remedial
designer regarding any impact on the design.
RPM CONSULTATION AND REPORTING
EPA's RPM must be consulted during the VE
screening, VE study, and VECP review if there will
be a delay in the completion of the design or
construction, an increase in cost, or an impact on the
environment or public health, Record of Decision
(ROD), or basis of design, due to VE activities. The
VE study team leader and VECP reviewer (if not the
RPM) must prepare a written report containing costs
of the study/review, recommendations and findings,
and estimated cost savings of each recommendation.
When the VE study for an RD results in
recommendations for design changes, the RPM
should prepare (or task the project designer to
prepare for the RPM's approval) a written response
that explains the reasons for accepting or rejecting
each recommendation. Similarly, when a VECP is
received during an RA or LTRA, the RPM and
contracting officer should prepare a written response
to each of the contractor's recommendations,
explaining the reasons for accepting or rejecting each
recommendation. For each VE or VECP
recommendation accepted, a cost estimate of the
savings should be prepared.
OSRTI will continue track the VE and VECP
recommendations and cost savings for the Superfund
program. RPMs are asked to submit an electronic
version of allVE studies and VECP
recommendations, responses, and estimated cost
savings to their regional coordinator in OSRTI.
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