Meeting Minutes - US Department of State

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Procurement Policy Act, it's Public Law 106104 is
that all projects over a million dollars with
problems over budget or with potential for
improvement, must have a VE study in place or a
waiver. We do have a waiver program that is pretty
strict. We don't necessarily grant them every time.
But it must be in place before they reach the 35
percent design stage.
Next slide. So how does value engineering
benefit OBO? We want to get the most functional
facility that is worth its cost by giving us the
biggest bang for the buck, and the buck doesn't mean
just the initial cost, but worth the total cost.
Next slide. This slide is a little bit
hard to read but it tells the story really well as
to why we have moved value engineering into the
planning stage.
As you can see, there are three columns.
One is planning, one is design development, and the
other is construction stage. These are when we have
had VE studies performed. And measuring the actual
results from the study, how much was saved and
comparing it to the cost of the value engineering
program, the return on investment on the design-
build projects, which is the dark blue line, for 38
Free State Reporting, Inc.
1378 Cape St. Claire Road
Annapolis, MD 21409
(410) 974-0947
114