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 LANTNAVFACENGCOM A&E GUIDE
4/17/93
2.11
VALUE ENGINEERING (VE)
In Value Engineering, value is defined as the ratio of function to cost. The
purpose of VE is to maximize value by improving function and quality, while
eliminating unnecessary cost. The Navy desires the most cost effective facility design,
consistent with customer satisfaction and appropriate design. As a consequence,
participation by the customer and the design team in the VE process is encouraged.
All projects with an estimated construction cost (ECC) of at least $2.5M
generally require a VE study using one or more of the following methods:
1) Scope development assistance at the concept/Parametric Estimate and
Programming (PEP) Phase.
2) Standard 40 hour VE study, or a reduced version (job dependent), after the
PEP submission.
3) Standard 40 hour VE study at the 30% - 40% stage of design.
4) Standard 40 hour VE study at the 45% - 50% stage of design
The VE study method (s) used are determined by the LANTNAVFACENGCOM Value
Engineer. The $2.5M threshold may be lowered, due to pending changes in Office of
Management and Budget Circular A-131. Accordingly, the A&E should consult with
the project manager on each project to determine the applicability and level of VE
involvement.
Standard VE studies are conducted using the five step job plan as recognized
by the Society of American Value Engineers (SAVE). VE studies will be conducted,
local to the A&E or the project site, by VE consultants under contract to
LANTNAVFACENGCOM or by in-house professionals.
The A&E's expected involvement in the VE process is approximately 126
manhours typically, as summarized below.
PM
Arch Stru Mech Elec Civ
Design team presents overview of design
4
4
4
4
4
4
concept.
Design team joins VE team to enhance the
4
4
4
4
4
4
VE effort.
Oral presentation of VE study to Design team
2
2
2
2
2
2
and user by VE team. (Design team may
not be present if project not local to A&E).
Design team review, supplement, and
8
4
4
4
4
4
comment on the VE report.
2-7
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